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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

          Tuesday, October 24, 2006, Vol. 7, Issue 211

                          Headlines

A R G E N T I N A

CAMUZZI GAS: Pays ARS6.2 Million in Dividends
CANAVERALES SRL: Claims Verification Deadline Is Set for Dec. 22
CLINICA DE LA COMUNIDAD: Claims Verification Is Until Dec. 21
CRUZ DORADA: Verification of Proofs of Claim Is Until Dec. 7
EMPRESA DISTRIBUIDORA: S&P LatAm Puts raBB+ Ratings on 4 Debts

FIDEICOMISOS (UBS): Fitch Argentina Puts Junk Ratings on Debts
FIDEICOMISOS (UBS): Moody's LatAm Junks Ratings on US$21MM Debts
NETCOM ARGENTINA: Deadline for Verification of Claims Is Dec. 6
PROVINCIA DE FORMOSA: Moody's Puts D Ratings on US$106-Mil Debts
PROVINCIA DE SANTIAGO: Moody's Places D Ratings on US$120M Debts

SENAL ECONOMICA: Moves Claims Verification Deadline to Nov. 30
SWEATERS SA: Last Day for Verification of Claims Is on Nov. 20
TELEFONICA DE ARGENTINA: Inks Contract with Juniper Networks

* ARGENTINA: Buenos Aires Issuing US$200-Million in Bonds

B E L I Z E

* BELIZE: Will Launch Energy Conservation Project on Oct. 26

B E R M U D A

BERMUDA COMMERCIAL: Likely Merger Cues Fitch to Revise Outlook
BERMORE LTD: Final General Meeting Is Set for Nov. 14
HATTERAS REINSURANCE: Sets Creditors' First Meeting on Nov. 9
HATTERAS REINSURANCE: Shareholders First Meeting Is on Nov. 9
NIPPON CAPITAL II: Proofs of Claim Filing Is Until Oct. 27

NIPPON CAPITAL III: Filing of Proofs of Claim Is Until Oct. 27
REFCO INC: Refco LLC Files August 2006 Monthly Operating Report
WARNER CHILCOTT: Settles OvCon Antitrust Lawsuit with FTC

B R A Z I L

BANCO RIO: Aims 30% Increase in Credit Card Business
CENTRAIS ELECTRICAS: Spending BRL330MM on Research & Development
COMPANHIA DE SANEAMENTO: Gets Consents on 12% Notes Tender Offer
COMPANHIA DE SANEAMENTO: Fitch Rates US$250-Million Notes at BB
COMPANHIA SIDERURGICA: Names Lazards as Adviser on Corus Bidding

EMBRATEL: Units' Tax Contingencies Affect Third Quarter Results
GENERAL MOTORS: Investing US$100 Mil. Yearly to Improve Facility
GERDAU SA: Joint Venture on US West Coast Good for Firm
MRS LOGISTICA: Sees BRL419 Million Net Profit in 2006
NET SERVICOS: Board Approves Acquisition of Interest in Vivax

NOVELIS INC: Posts US$6-Million Second Quarter 2006 Net Income
PETROLEO BRASILEIRO: Awards US$250-Million Contract to Subsea 7
PETROLEO BRASILEIRO: Board OKs Petros-2 Employee Pension Plan
PETROLEO BRASILEIRO: Inks MoU to Deploy Biodiesel Prod'n Units
SANTANDER BANESPA: Denies Rumors on Firm's Sale

VERIFONE HOLDINGS: Inks US$15MM Vx Solutions Pact with GetNet

C A Y M A N   I S L A N D S

AQUAMARINE IAM: Proofs of Claim Filing Deadline Is on Nov. 10
CANDID IAM: Deadline for Proofs of Claim Filing Is on Nov. 10
CARIBBEAN VICTORA: Final Shareholders Meeting Is Set for Nov. 7
EQUITY ASM: Shareholders Gather for Final Meeting on Nov. 6
EQUITY CU: Invites Shareholders for Final Meeting on Nov. 6

GROSVENOR HOLDINGS: Last Shareholders Meeting Is Set for Nov. 8
HARRIER IAM: Last Day for Proofs of Claim Filing Is on Nov. 10
HYBRIDS IAM: Filing of Proofs of Claim Is Until Nov. 10
IRONWOOD IAM: Last Day to File Proofs of Claim Is on Nov. 10
WATERFALL IAM: Creditors Must Submit Proofs of Claim by Nov. 10

C H I L E

BLOCKBUSTER INC: Declares Cash Dividend of US$18.75 Per Share
ENDESA: Reports 141,029GWh of Power Output in First Nine Months

C O L O M B I A

BANCOLOMBIA: Launches Credit Card for Low-Income Clients
HEXION: Dividend Payout Cues S&P to Lower Credit Ratings to B

C O S T A   R I C A

* COSTA RICA: Pres. OKs Power Firm's Availment of US$435MM Debt

C U B A

* CUBA: Returning to Standard Time After Three Years

D O M I N I C A N   R E P U B L I C

AES DOMINICANA: Andres Unit Runs on Natural Gas

E C U A D O R

PETROECUADOR: Recovers 450 Barrels of Spilt Oil Near Yasuni Park
PETROECUADOR: Inks Output & Transport Study with Olade
PETROECUADOR: Unit Suffers from Cononaco-Auca Oil Spill

G U A T E M A L A

BANCAFE: Central Bank Permanently Suspends Operations

M E X I C O

CINRAM INT: Declares Cash Distribution of CAD0.2708 Per Unit
DESC SA: Fitch Sees Real Estate Divestiture as Mildly Positive
FORD MOTOR: Collins & Aikman Stops Shipping Plastinc Parts
FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase

GENERAL MOTORS: Faces Likely Proxy Battle with Kirk Kerkorian
INDUSTRIAS UNIDAS: Moody's Assigns B3 Rating on Sr. Unsec. Notes
INDUSTRIAS UNIDAS: S&P Rates US$200MM Sr. Unsecured Notes at B
MERIDIAN AUTOMOTIVE: Gets Two Tax Breaks from Ionia City Council
OPEN TEXT: Mulls Streamlining of Employees & Facilities

P A N A M A

CHIQUITA BRANDS: Fresh Express Improves Retail Trading Thru TR3
SOLO CUP: Incurs US$299 Million Net Loss in 2006 Second Quarter
SOLO CUP: Ends Review of Accounting Issues & Restates 2 Reports
SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch

P E R U

* PERU: IMF Focuses on Policy Options to Strengthen Economy

P U E R T O   R I C O

ADELPHIA: Court Approves Second Disclosure Statement Supplement
ADELPHIA COMMS: Verizon Wants US$1,101,822 Admin. Claim Allowed
MUSICLAND HOLDING: Earns US$1.5 Million in September 2006

U R U G U A Y

* URUGUAY: S&P Affirms 'B+' Long-Term Ratings on Reopened Bonds

V E N E Z U E L A

ELECTRICIDAD DE CARACAS: Government Helps Improve Power Services
UNIVERSAL COMPRESSION: Moody's Rates US$500MM Facility at Ba1

* BOND PRICING: For the week of October 16 -- October 20, 2006


                         - - - - -


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


CAMUZZI GAS: Pays ARS6.2 Million in Dividends
---------------------------------------------
Camuzzi Gas Pampeana paid Sept. 29 anticipated dividends totaling ARS6.2
million.  The amount was based on the company's balance sheet at June 30,
2006.

Holders of classes A and C shares received ARS3,730,000 in dividends, while
holders of class B shares got ARS2,470,000.

Camuzzi Gas Pampeana S.A. serves most of the province of Buenos
Aires -- excluding the city of Buenos Aires and the greater
metropolitan area of Buenos Aires -- and the Province of La
Pampa, encompassing primary industrial and residential areas.
The company operates a 3,500-kilometer pipeline network and a
17,600-kilometer distribution network and its primary
shareholder is Sodigas Pamapena, which has an 86.09% interest.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Moody's Investors Service assigned a B2 global local currency
rating and an A2.ar national scale rating to Camuzzi Gas
Pampeana's issue of up to ARS75 millions senior unsecured Class
3 notes with a stable outlook.


CANAVERALES SRL: Claims Verification Deadline Is Set for Dec. 22
----------------------------------------------------------------
Hugo Marcusi, the court-appointed trustee for Canaverales S.R.L.'s
bankruptcy proceeding, will verify creditors' proofs of claim until Dec. 22,
2006.

Mr. Nacusi will present the validated claims in court as individual reports
on March 8, 2007.  Court No. 14 in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Canaverales and its creditors.

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

A general report that contains an audit of Canaverales' accounting and
banking records will follow on Apr. 20, 2007.

Canaverales was forced into bankruptcy at the request of Ricardo Carro, whom
it owes US$79,044.50.

Clerk No. 27 assists the court in the case.

The debtor can be reached at:

          Canaverales S.R.L.
          Cerrito 822
          Buenos Aires, Argentina

The trustee can be reached at:

          Hugo Nacusi
          Corrientes 3169
          Buenos Aires, Argentina


CLINICA DE LA COMUNIDAD: Claims Verification Is Until Dec. 21
-------------------------------------------------------------
Maximo C. A. Piccinelli, the court-appointed trustee for Clinica de la
Comunidad S.R.L.'s bankruptcy case, will verify creditors' proofs of claim
until Dec. 21, 2006.

Mr. Piccinelli will present the validated claims in court as individual
reports on March 29, 2007.  A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Clinica de la Comunidad and its
creditors.

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

A general report that contains an audit of Clinica de la Comunidad's
accounting and banking records will follow on
May 24, 2007.

The debtor can be reached at:

          Clinica de la Comunidad S.R.L.
          Avenida Julio A. Roca 570
          Buenos Aires, Argentina

The trustee can be reached at:

          Maximo C. A. Piccinelli
          Montevideo 666
          Buenos Aires, Argentina


CRUZ DORADA: Verification of Proofs of Claim Is Until Dec. 7
------------------------------------------------------------
Sandra D. Ambrosio, the court-appointed trustee for Cruz Dorada S.A.'s
reorganization proceeding, will verify creditors' proofs of claim until Dec.
7, 2006.

Under the Argentine bankruptcy law, Ms. Ambrosio is required to present the
validated claims in court as individual reports.  Court No. 1 in Buenos
Aires will determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges raised by
Cruz Dorada and its creditors.

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

Ms. Ambrosio will also submit a general report that contains an audit of
Cruz Dorada's accounting and banking records.  The report submission dates
have not been disclosed.

On Sept. 5, 2007, Cruz Dorada's creditors will vote on a settlement plan
that the company will lay on the table.

Clerk No. 2 assists the court in the proceeding.

The debtor can be reached at:

          Cruz Dorada S.A.
          Avenida Angel Gallardo 551
          Buenos Aires, Argentina

The trustee can be reached at:

          Sandra D. Ambrosio
          Sarmiento 1574
          Buenos Aires, Argentina


EMPRESA DISTRIBUIDORA: S&P LatAm Puts raBB+ Ratings on 4 Debts
--------------------------------------------------------------
Standard & Poor's Latin America assigned raBB+ ratings on Empresa
Distribuidora y Comercializadora Norte SA, aka Edenor's debts:

   -- Obligaciones Negociables for US$600,000,000;

   -- Bono Par a Tasa Fija at fixed rate for US$123,700,000;

   -- Discount bond at fixed rate (Bono Descuento a Tasa Fija)
      for US$240,000,000; and

   -- Bond at same price at variable rate (Bono a la par) for
      US$12,300,000.

The rating action was based on the company's balance sheet at June 30, 2006.


FIDEICOMISOS (UBS): Fitch Argentina Puts Junk Ratings on Debts
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo SA assigned these ratings on
Fideicomisos Financieros UBS Brinson Forestal I:

   -- Certificado de Participacion for US$15,000
      * last due: July 20, 2000
      * rate: CC

   -- Titles of debt for US$21,400,000
      * rate: CCC


FIDEICOMISOS (UBS): Moody's LatAm Junks Ratings on US$21MM Debts
----------------------------------------------------------------
Moody's Latin America assigned these ratings on Fideicomisos Financieros UBS
Brinson Forestal I:

   -- Titulos de Deuda for US$21,400,000
      * rate: CCC

   -- Certificado de Participacion for US$15,000
      * rate: C


NETCOM ARGENTINA: Deadline for Verification of Claims Is Dec. 6
---------------------------------------------------------------
Felisa Tumilasci, the court-appointed trustee for Netcom Argentina S.R.L.'s
insolvency case, will verify creditors' proofs of claim until Dec. 6, 2006.

Under the Argentine bankruptcy law, Ms. Tumilasci is required to present the
validated claims in court as individual reports.  Court No. 14 in Buenos
Aires will determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges raised by
Netcom Argentina and its creditors.

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

Ms. Tumilasci will also submit a general report that contains an audit of
Netcom Argentina's accounting and banking records.  The report submission
dates have not been disclosed.

On Oct. 4, 2007, Netcom Argentina's creditors will vote on a settlement plan
that the company will lay on the table.

Clerk No. 28 assists the court in the proceeding.

The debtor can be reached at:

          Netcom Argentina S.R.L.
          Salguero 2731
          Buenos Aires, Argentina

The trustee can be reached at:

          Felisa Tumilasci
          Callao 449
          Buenos Aires, Argentina


PROVINCIA DE FORMOSA: Moody's Puts D Ratings on US$106-Mil Debts
----------------------------------------------------------------
Moody's assigned D ratings on Provincia de Formosa's debts:

   -- Series 02 for US$36,000,000, guaranteed by Coparticipacion
      Federal, due in 2005.

      * date of issuance: Sept. 9, 1999

   -- Series 01 for US$70,000,000, guaranteed by Coparticipacion
      Federal de Impuestos, due in 2005

      * date of issuance: March 23, 1999.


PROVINCIA DE SANTIAGO: Moody's Places D Ratings on US$120M Debts
----------------------------------------------------------------
Moody's assigned D ratings on Provincia de Santiago del Estero's debts:

   -- Series 04 for US$12,000,000, guaranteed by the
      Coparticipacion Federal de Impuestos, due in 2008, and

   -- Series 05 for US$108,000,000, guaranteed by the
      Coparticipacion Federal de Impuestos, due in 2006.


SENAL ECONOMICA: Moves Claims Verification Deadline to Nov. 30
--------------------------------------------------------------
Court No. 17 in Buenos Aires has extended the deadline for the verification
of creditors' proofs of claim against insolvent company Senal Economica S.A.
until Nov. 30, 3006.  The verification phase was previously set to end on
Sept. 13, 2006.  Marcelo Gabriel Dborkin, the court-appointed trustee, will
supervise the proceeding.

Mr. Dborkin will present the validated claims in court as
individual reports on Feb. 15, 2007.  Court No. 17 will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Senal Economica and its
creditors.

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

A general report that contains an audit of Senal Economica's
accounting and banking records will follow on March 29, 2007.

On Sept. 17, 2007, Senal Economica's creditors will vote on a
settlement plan that the company will lay on the table.

Clerk No. 50 assists the court in the case.

The debtor can be reached at:

          Senal Economica S.A.
          Maipu 267
          Buenos Aires, Argentina

The trustee can be reached at:

          Marcelo Gabriel Dborkin
          Avenida Callao 295
          Buenos Aires, Argentina


SWEATERS SA: Last Day for Verification of Claims Is on Nov. 20
--------------------------------------------------------------
Mario Miguel Padin, the court-appointed trustee for Sweaters S.A.'s
bankruptcy case, will verify creditors' proofs of claim until Nov. 20, 2006.

Mr. Padin will present the validated claims in court as individual reports
on Feb. 5, 2007.  A court in Mar del Plata, Buenos Aires will determine if
the verified claims are admissible, taking into account the trustee's
opinion and the objections and challenges raised by Sweaters and its
creditors.

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

A general report that contains an audit of Sweaters' accounting and banking
records will follow on March 19, 2007.

The debtor can be reached at:

          Sweaters S.A.
          Polonia 272 Mar del Plata
          Buenos Aires, Argentina

The trustee can be reached at:

          Mario Miguel Padin
          Rawson 2272 Mar del Plata
          Buenos Aires, Argentina


TELEFONICA DE ARGENTINA: Inks Contract with Juniper Networks
------------------------------------------------------------
Telefonica de Argentina said in a statement that it has engaged Juniper
Networks, a router and network security supplier in the United States, to
deploy routing platforms for its new IP backbone and access networks.

According to the statement, the routing platforms will allow Telefonica de
Argentina to offer its corporate and residential clients value added
services.

Business News Americas relates that Juniper Networks' E-series broadband
services routers and M-series multi-service routing platforms deliver a
portfolio of features combining IP/MPLS capabilities.  The platforms support
a wide range of service offerings, including:

          -- video on demand,
          -- voice over Internet protocol, and
          -- online gaming.

"One of the key challenges we faced was providing a rich suite of services
to our customers with an easy-to-use interface.  This new solution means
Telefonica's customers will enjoy reliable, high-performance IP (Internet
provider) services," Ernesto Castano, the network planning director of
Telefonica de Argentina, told BNamericas.

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.

                        *    *    *

Moody's Investors Service upgraded on May 27, 2006, the ratings on
Telefonica de Argentina, S.A.'s 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.


* ARGENTINA: Buenos Aires Issuing US$200-Million in Bonds
---------------------------------------------------------
Representatives of the province of Buenos Aires will be making this week
several contacts with investors of the United States and Europe in order to
sell 9% bonds totaling US$200,000,000 due in 12 years time.

The road show will include New York and London, and it could be extended to
more cities such as Boston, San Francisco, Zurich and Frankfurt, depending
on the level of interests gained.

The plans are to issue the new bonds between the last week of October and
the first of November.

The bond, which has already been given the rate of B+ by S&P and of B3 by
Moody's, will be denominated in dollars.  The bonds will trade in Buenos
Aires, New York and London stock markets.

                        *    *    *

As reported on Oct. 4, 2006, Standard & Poor's Ratings Services raised its
long-term local  and foreign currency credit rating on the Republic of
Argentina to 'B+' from 'B'.  Standard & Poor's also affirmed its 'B'
short-term ratings on The Republic of Argentina.  S&P said the ratings
outlook is stable.




===========
B E L I Z E
===========


* BELIZE: Will Launch Energy Conservation Project on Oct. 26
------------------------------------------------------------
Belize will launch the Energy Conservation Project on
Oct. 26, 2006.  The project involves a house-to-house installation exercise
involving Belizean and Cuban personnel exchanging high-energy incandescent
bulbs for energy-saving fluorescent bulbs completely free of cost.

Business News Americas states that the project is aimed at replacing
high-energy incandescent bulbs for energy-saving fluorescent bulbs.

The first phase of the national project will see over 150,000 energy-saving
bulbs being installed in the Belize district starting in Belize City.

The Village of Valley of Peace in the Cayo District will be a pilot for the
project to train and orient the participants.  Personnel from the Belize
Defense Force will be activated to assist with the project, working
alongside the Cuban technical team and the civilian Belizean team.

Prime Minister Said Musa and Minister of Housing Cordel Hyde will present
the plan to the media at a private residence where they will carry out the
first installation.

Next week the implementation team will explain the project and answer
questions from the public through LOVE FM.

The implementation team consists:

          -- Col. Luke Castillo, Chief Executive Officer in the
             Ministry of Housing, Defense, Youth and Sports;

          -- Major David Jones of the Belize Defense Force; and

          -- Cuban Ambassador Eugenio Martinez.

Lake Independence area will be the first area in Belize City where the
program will be implemented.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

        -- CC LT Foreign Bank Depst Caa3
        -- CC LT Foreign Curr Debt  Caa3
        -- CC ST Foreign Bank Depst NP
        -- CC ST Foreign Curr Debt  NP
        -- LC Curr Issuer Rating    Caa3
        -- FC Curr Issuer Rating    Caa3
        -- Foreign Currency LT Debt Caa3
        -- Local Currency LT Debt   Caa3

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2006, Standard & Poor's lowered its long-term foreign
currency sovereign credit rating on Belize to 'CC' from 'CCC-'
while leaving its outlook on the rating at negative.  Standard &
Poor's affirmed its 'CCC+' long-term local currency sovereign
credit rating on Belize and revised its outlook on the rating to
stable from negative.  The 'C' short-term sovereign credit
ratings on the sovereign were affirmed by S&&P.




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


BERMUDA COMMERCIAL: Likely Merger Cues Fitch to Revise Outlook
--------------------------------------------------------------
Fitch Ratings has revised the rating watch status for Bermuda Commercial
Bank's short-term and individual ratings to Evolving from Negative.  Fitch
also affirms Bermuda Commercial's support rating.

This action follows Bermuda Commercial's announcement that it is discussing
a potential merger or alliance with other financial institutions, and the
confirmation of one potential partner that such talks are ongoing.  Rating
Watch Evolving signals that the next rating action could either be Positive
or Negative.  Fitch believes that there is now a significant possibility
that Bermuda Commercial could be acquired by a higher rated entity, which
would likely result in an upgrade to the bank's ratings.  Fitch continues to
follow this situation closely.

Fitch has revised the Rating Watch on these ratings to Evolving from
Negative:

   -- Short-term `F2'; and
   -- Individual `C'.

Fitch also affirms this rating:

   -- Support `5'.


BERMORE LTD: Final General Meeting Is Set for Nov. 14
-----------------------------------------------------
Bermore Ltd.'s final general meeting will be held at the liquidator's place
of business on Nov. 14, 2006, at 11:00 a.m.

Bermore Ltd.'s shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.

Bermore Ltd.'s shareholders agreed to place the company into voluntary
liquidation under Bermuda's Companies Act 1981.

The liquidators can be reached at:

         James M. Diamond
         Michael Colin Fitzgerald
         Coutts House, 1446 West Bay Road
         Grand Cayman, Cayman Islands


HATTERAS REINSURANCE: Sets Creditors' First Meeting on Nov. 9
-------------------------------------------------------------
Hatteras Reinsurance Ltd.'s creditors will gather for a first meeting at
11:00 a.m. on Nov. 9, 2006, at:

           Allen & Overy LLP, 1221 Avenue of the Americas
           New York, New York 10020, USA

Proxy forms to be used at the meeting have been mailed to all
known creditors and must be lodged with the provisional liquidators by 5:00
p.m. on Nov. 8, 2006.

The provisional liquidators can be reached at:

          Michael Morrison
          Charles Thresh
          KPMG Financial Advisory Services Limited
          Crown House, 4 Par la Ville Road
          Hamilton, Bermuda


HATTERAS REINSURANCE: Shareholders First Meeting Is on Nov. 9
-------------------------------------------------------------
Hatteras Reinsurance Ltd.'s shareholders will gather for a first meeting at
10:30 a.m. on Nov. 9, 2006, at:

           Allen & Overy LLP, 1221 Avenue of the Americas
           New York, New York 10020, USA

Proxy forms to be used at the meeting have been mailed to all
known shareholders and must be lodged with the provisional liquidators by
5:00 p.m. on Nov. 8, 2006.

The provisional liquidators can be reached at:

          Michael Morrison
          Charles Thresh
          KPMG Financial Advisory Services Limited
          Crown House, 4 Par la Ville Road
          Hamilton, Bermuda


NIPPON CAPITAL II: Proofs of Claim Filing Is Until Oct. 27
----------------------------------------------------------
Nippon Capital II Investments, Ltd.'s creditors are given until Oct. 27,
2006, to prove their claims to Robin J. Mayor, the company's liquidator, or
be excluded from receiving any distribution or payment.

In their proofs of claim, creditors must indicate their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any.

A final general meeting will be held at the liquidator's place
of business on Nov. 22, 2006, at 9:30 a.m., or as soon as
possible.

Nippon Capital II's shareholders will determine during the meeting, through
a resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.

Nippon Capital II's shareholders agreed on Oct. 10, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


NIPPON CAPITAL III: Filing of Proofs of Claim Is Until Oct. 27
--------------------------------------------------------------
Nippon Capital III Investments, Ltd.'s creditors are given until Oct. 27,
2006, to prove their claims to Robin J. Mayor, the company's liquidator, or
be excluded from receiving any distribution or payment.

In their proofs of claim, creditors must indicate their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any.

A final general meeting will be held at the liquidator's place
of business on Nov. 22, 2006, at 9:30 a.m., or as soon as
possible.

Nippon Capital III's shareholders will determine during the meeting, through
a resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.

Nippon Capital III's shareholders agreed on Oct. 10, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


REFCO INC: Refco LLC Files August 2006 Monthly Operating Report
---------------------------------------------------------------
In lieu of comprehensive financial statements, Albert Togut, the
Chapter 7 trustee appointed to oversee the liquidation of Refco,
LLC's estate, filed with the U.S. Bankruptcy Court for the
Southern District of New York a monthly statement of cash receipts and
disbursements for the period from Aug. 1 to
Aug. 31, 2006.

The Chapter 7 Trustee reports that the Debtor's beginning balance as of Aug.
1 totals US$788,203,000.  The Debtor's beginning purchase price account
balance totals US$56,780,000 and its beginning capital account "A" balance
totals US$731,423,000.

The purchase price account includes activity related to Man
Financial sale proceeds and related disbursements.  Capital
account "A" includes activity related to collection of excess
capital.

The Debtor received US$2,081,000 in cash and disbursed US$1,715,000.  The
Debtor held US$788,569,000 at the end of the period.

A full-text copy of Refco LLC's August 2006 Monthly Statement is
available at no charge at http://ResearchArchives.com/t/s?13bb

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 Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 46; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


WARNER CHILCOTT: Settles OvCon Antitrust Lawsuit with FTC
---------------------------------------------------------
Warner Chilcott Ltd. has settled the antitrust lawsuit brought by the
Federal Trade Commission or FTC against certain of its subsidiaries
involving one of its combined hormonal contraceptives, Ovcon 35.  The
settlement has been approved by Warner Chilcott's Board of Directors and the
Commissioners of the FTC but remains subject to Court approval.

The settlement is a final resolution of all claims filed by the FTC against
Warner Chilcott.  Under the terms of the settlement Warner Chilcott has
agreed to very limited injunctive relief and will not pay any monetary
damages.  Warner Chilcott does not believe that the terms of the settlement
will have an adverse effect on its financial position, results of operations
or ongoing business activities.

This settlement does not include the related pending actions brought by
thirty-four states and the District of Columbia and multiple private
plaintiffs.  Warner Chilcott continues to vigorously defend these lawsuits.
Although it is impossible to predict with certainty the impact that this
settlement will have on the continuing actions, or the outcome of any
litigation, Warner Chilcott is confident in the merits of its defense and
does not anticipate an unfavorable outcome.

                   About Warner Chilcott

Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a
host of pharmaceutical makers.  Women's health care products,
including hormone therapies (femhrt and Estrace Cream) and
contraceptives (Estrostep, Loestrin, and OvCon), are the
company's largest segment.  Other products include dermatology
treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex).  US subsidiary Warner Chilcott, Inc. makes
prescription drugs for dermatology and women's health; other
subsidiaries provide services in data management systems,
pharmaceutical development, manufacturing, and chemical
development.

                        *    *    *

Standard & Poor's Ratings Services raised on Sept. 27, 2006, its
ratings on Warner Chilcott Corp.  The corporate credit rating
was raised to 'B+' from 'B'.  At the same time, the ratings were
removed from CreditWatch, where they were placed with positive
implications on June 13, 2006, following the company's
announcement that it was planning an IPO, with the bulk of
proceeds to be used for debt reduction.  The rating outlook is
stable.

Moody's Investors Service revised on Oct. 9, 2006, the rating outlook on
Warner Chilcott Company, Inc., and related entities to positive from stable,
and affirmed the existing ratings, including the B2 corporate family rating.
At the same time, Moody's upgraded the speculative grade liquidity rating to
SGL-2 from SGL-3.  In addition, Moody's withdrew the B1 senior secured term
loan rating on Warner Chilcott Holdings Company III, Limited following the
repayment of this tranche of debt.




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


BANCO RIO: Aims 30% Increase in Credit Card Business
----------------------------------------------------
Pio Rueda, Banco Rio del Plata SA's means of payment manager, told Business
News Americas that the bank is aiming to boost its credit card business over
30% to keep winning market share.

According to BNamericas, Banco Rio is the leading bank in the credit card
segment in Brazil, with a 16.1% market share of total credit and debit card
billing.

Banco Rio has been increasing its market share 0.7-1 percentage points
yearly over the last few years, BNamericas says, citing Mr. Rueda.  The
company expects to continue at half a percentage point at least in 2007.

BNamericas underscores that Mr. Rueda thinks the credit card business will
grow up to 35% rates this year and next due in part to 1-2 year installment
offerings with zero interest as well as accelerated growth in the nation's
provinces.

Banco Rio launched a new credit card in alliance with American Express and
the Argentine unit of LAN, a Chilean airline.

Mr. Rueda told BNamericas that the objective of the alliance is to attract
70,000 new clients for the product by December 2007.  Credit and debit cards
represent up to 35% of bank revenues.

Banco Rio has issued about 1.2 million credit cards, which account for 70%
of the bank's card billing.  Debit cards were 1.5 million, BNamericas
states.

Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata is an
Argentinean private bank providing a range of financial services, including
retail, corporate, and merchant banking, insurance, credit cards and fund
management, to individuals, companies of all sizes, financial institutions
and the public sector (both provincial and national).  The company has a
network of approximately 280 branches and employs over 5,000 serving over 1
million customers.  It is part of the Latin American franchise of Banco
Santander Central Hispano, which holds over 80% of the bank's share capital.

                        *    *    *

On June 29, 2005, Moody's Investor Service assigned Caa1 ratings on Banco
Rio de la Plata's Issuer and Long-Term Bank Deposits Ratings.


CENTRAIS ELECTRICAS: Spending BRL330MM on Research & Development
----------------------------------------------------------------
Centrais Electricas Brasileiras SA, the federal power holding firm of
Brazil, said in a statement that it will spend about BRL330 million in 2007
on research and development.

According to a statement, Centrais Electricas spent about BRL287 million in
research and development this year.

Business News Americas notes that the operational units of Centrais
Electricas will invest the 2007 research and development money on programs
including:

          -- civil engineering technology and dam construction,
          -- renewable power,
          -- carbon credit generation studies, and
          -- power efficiency programs.

Centrais Electricas' 2007 investments are estimated at BRL5.2 billion,
compared with this year's BRL4.6 billion, BNamericas relates.

Centrais Electricas told BNamericas that since 2000, it has invested about
BRL890 million in 675 research and development projects.

Under the Brazilian law, power firms must invest 0.5% of their net revenues
in research and development.

Centrais Electricas' gross revenue increased to BRL10.1 billion in the first
half of 2006, compared with the BRL9.4 billion in the same period of 2005,
BNamericas states.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


COMPANHIA DE SANEAMENTO: Gets Consents on 12% Notes Tender Offer
----------------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo aka Sabesp disclosed
the results to date of its cash tender and consent solicitation relating to
its 12% Notes due 2008 (CUSIP No. 20441AAF9/P3058WAA5 and ISIN No.
US20441AAF93/USP3058WAA55), conducted in accordance with the company's Offer
to Purchase and Consent Solicitation Statement dated Oct. 5, 2006.  The
company has also determined the total consideration to be paid per US$1,000
principal amount of Notes in connection with the Tender Offer and Consent
Solicitation.

As of 5:00 p.m., New York City time, on Oct. 19, 2006, the company had
received tenders and consents in respect of approximately US$122.2 million
in aggregate principal amount of the Notes, representing approximately 54.3%
in principal amount of the outstanding Notes.

Accordingly, the requisite consents to adopt the proposed amendments to the
indenture governing the Notes have been received in the Consent
Solicitation, and a supplemental indenture to effect the proposed amendments
has been entered into.  Although the supplemental indenture has been
executed, the amendments will not become operative until validly tendered
Notes are accepted for purchase by the company following the expiration date
of the Tender Offer, which is 12:00 Midnight, New York City time on Nov. 2,
2006, unless extended.

The total consideration for each US$1,000 principal amount of those Notes
validly tendered and not withdrawn will be US$1,101.68, which includes a
consent payment of US$20 per US$1,000 principal amount of those Notes
validly tendered and not withdrawn prior to the Consent Date.  The total
consideration was determined using the yield of 4.862% on the 4.625% U.S.
Treasury Notes due Sept. 30, 2008, as of 2:00 p.m., New York City time on
Oct. 19, 2006, plus 0.50%.  Holders who validly tender their Notes after the
Consent Date but on or prior to the Expiration Date will receive the tender
offer consideration of US$1,081.68 for each US$1,000 principal amount, which
is the total consideration less the consent payment.  In addition, holders
who validly tender and do not withdraw their Notes in the Tender Offer will
receive accrued and unpaid interest from the last interest payment date up
to, but not including, the date payment is made for the Notes.

The completion of the Tender Offer and Consent Solicitation is subject to
the satisfaction or waiver by the company of a number of conditions, as
described in the Offer to Purchase.

Deutsche Bank Securities is acting as dealer manager for the Tender Offer
and as solicitation agent for the Consent Solicitation.  Questions about the
Tender Offer or the Consent Solicitation may be directed to the:

          Deutsche Bank Securities
          Attn: Liability Management Group
          Tel: (866) 627-0391 (toll-free)
               (212) 250-2955 (direct)

Global Bondholder Services Corporation is serving as information agent and
depositary and Deutsche Bank Luxembourg S.A. is serving as Luxembourg Tender
Agent.  Request for documents may be directed to:

          Global Bondholder Services Corporation
          Tel: (866) 873-5600
               (212) 430-3774

In addition, copies of the Offer to Purchase and related materials may be
obtained at the office of the Luxembourg Tender Agent:

          Deutsche Bank Luxembourg S.A.
          2 Boulevard Konrad Adenauer
          L1115 Luxembourg.

Companhia de Saneamento Basico do Estado de Sao Paulo is one of
the largest water and sewage service providers in the world
based on the population served in 2005.  It operates water and
sewage systems in Sao Paulo, Brazil.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 23, 2006, Standard & Poor's Ratings Services has raised its
Brazilian national-scale corporate credit rating on Companhia de
Saneamento Basico do Estado de Sao Paulo to 'brA+' from 'brA'.
At the same time, it affirmed the company's global-scale ratings
at 'BB-'.  S&P said the outlook is stable.


COMPANHIA DE SANEAMENTO: Fitch Rates US$250-Million Notes at BB
---------------------------------------------------------------
Fitch Ratings has assigned Local and Foreign Currency Issuer Default Ratings
of 'BB' and National Long-term Rating of 'A+(bra)' to Companhia de
Saneamento Basico do Estado de Sao Paulo aka Sabesp. In addition, Fitch has
assigned a 'BB' to the company's proposed US$250 million note issuance due
2016.  The Outlook for the issuer default ratings and National Long Term
Rating is Stable.  The proceeds of the issuance will be used to refinance
existing indebtedness and other corporate purposes.  Fitch currently rates
Sabesp's sixth, seventh and eighth debenture issuances 'A+(bra)'.

The ratings reflect Sabesp's strong cash flow generation, moderate leverage
and satisfactory average life of its debt.  The ratings are also supported
by Sabesp's near monopolistic position in its region as well as the
economies of scale gained as the largest water and wastewater company in the
Americas in terms of the number of customers. Sabesp operates without a
concession contract in large municipalities, which moderately adds to
business risk.  In addition, the sector lacks a specific regulatory
framework that adds to uncertainty.  Presently, the Federal Government is in
the process of introducing new legislation to regulate the water and
wastewater sector in Brazil including the clarification of concession
ownership.  While the introduction of a regulatory model with a specific law
and defining regulation would be positive, mild negative financial impacts
could occur for Sabesp as new concession agreements could increase operating
costs that may be partially offset by tariff.

Sabesp's operational and financial performance is exposed to hydrological
conditions, as well as political interference risks.  The company is
addressing this risk by continuing to invest in capacity additions.
Political interference risk exists as Sabesp is owned by the Government of
the State of Sao Paulo.  The company's board of directors includes a
majority of members appointed by the government, who influence investment
policies and tariff adjustments.  Political risks are moderate and somewhat
mitigated by continuity of the present political party, which is expected to
remain in place up to 2010.  Over the last five years, the Government has
been neutral to credit quality with little negative interference.

Sabesp's financial profile is improving through strong cash generation. The
company has stable operating results and high margins and is resilient in
economic downturns.  The company has been gradually reducing its leverage,
which is consistent with the rating category.  At June 2006, total debt/LTM
EBITDA was 2.6x versus 2.9x in 2005 and 3.7x in 2004. Interest coverage also
improved and reached 3.7x in the LTM ending June 2006, against 3.4 times in
2005.  Net revenues grew 11% to BRL2.7 billion and EBITDA grew 15% to BRL1.3
billion in the first six months of 2006 over the same period of 2005.
EBITDA margin reached 48% at the first half of 2006.  Sabesp showed an
increase of 3.5% in water and sewage volume billed in the first six months
of 2006 and should benefit in the second half of the year from a 6.71%
tariff adjustment that took effect in August 2006.

Sabesp's debt profile has improved and should benefit from the proposed note
issuance.  The issue is expected to refinance US$225 million notes due 2008
and reduce the refinancing risk.  The new issue will also reduce Sabesp's
financial costs and increase the average life of its debt.  At June 2006,
Sabesp reported total debt of BRL6.4 billion and BRL336 million in cash and
in financial investments; short-term debt represented only 10% of total
(BRL642 million).  Although there is still some foreign exchange risk,
Sabesp has reduced its exposure to currency mismatches.  At June 2006,
Sabesp reached its lowest level of foreign currency denominated debt in the
last five years, both in nominal (BRL1.5 billion) and in percentage terms
(23%).

Sabesp operates public water and sewage service systems in the State of Sao
Paulo, serving 367 of the 645 municipalities, as well as supplies water on a
wholesale basis to another six municipalities of the metropolitan region.
The company provides water to 22.6 million inhabitants directly (6.5 million
connections), and sewage collection to 18.4 million inhabitants (4.9 million
connections).  Sabesp's coverage ratios are 100% of the population in its
business area for supplying water and 78% of the population for collecting
sewage, of which 60% is treated.  Sabesp is controlled by the Government of
the State of Sao Paulo, which holds 50.3% of the company's common and total
shares.


COMPANHIA SIDERURGICA: Names Lazards as Adviser on Corus Bidding
----------------------------------------------------------------
Companhia Siderurgica Nacional has appointed Lazard, an investment bank, as
its consultant on a possible takeover bid for Corus Group Plc, a British
steel company, the Sunday Times reports.

As reported in the Troubled Company Reporter-Latin America on Oct. 23, 2006,
Companhia Siderurgica planned to make a bid for Corus Group, after Tata
Steel Ltd confirmed 455 pence per share offer for Corus.

Standard Life, which is Corus Group's biggest single shareholder with an 8%
stake in the firm, told the Times Online, "The offer by Tata for Corus is
lower than we would have expected the board of Corus to agree to and
recommend."

The Times Online relates that other institutional investors including Herve
Mangin, the manager of Axa's European Opportunities fund, agreed with
Standard Life.

Tata is almost certain to withdraw if a "bidding war" for Corus Group
develops, the Times Online states.

                        About Lazard

Headquartered in Hamilton, Bermuda, Lazard, Ltd. --
http://www.lazard.com/-- through its subsidiaries, operates as a financial
advisory and asset management firm.  The company operates primarily in two
segments, Financial Advisory and Asset Management.  The Financial Advisory
segment offers a range of services regarding mergers and acquisitions,
restructurings, and various other corporate finance matters, which include
evaluating potential acquisition targets, providing valuation analyses,
evaluating and proposing financial and strategic alternatives, rendering
opinions, assisting in the determination of an appropriate capital
structure, and evaluating and recommending financial and strategic
alternatives.  This segment primarily serves financial institutions;
financial sponsors; healthcare and life sciences; industrial, power, and
energy; real estate; and technology, media, and telecommunications
industries.  The Asset Management segment manages equity and fixed income
securities, and merchant banking funds, as well as offers cash management
and alternative investment strategies.  The company also engages in cash and
marketable investments, long-term investments, and commercial banking.  The
company offers its services to corporations, partnerships, institutions,
governments, and high net worth individuals, financial intermediaries,
investment vehicles, unions, public pension funds, insurance companies, and
banks worldwide.

The firm can be reached at:

          Lazard Ltd.
          Clarendon House, 2 Church Street
          Hamilton HM 11, Bermuda
          Phone: 441-295-1422

                 About Companhia Siderurgica

Companhia Siderurgica Nacional is one of the lowest-cost steel producers in
the world, which is a result of its access to proprietary, high-quality iron
ore (at the Casa de Pedra mine); self-sufficiency in energy; streamlined
facilities; and logistics advantages.  This is in addition to the group's
strong market position in the fairly concentrated steel industry in Brazil.

                        *    *    *

On Jan. 26, 2006, Standard and Poor's Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.

The 'BB' corporate credit rating on Companhia Siderurgica reflects the
company's exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil, aggressive
dividend policy and capital investment plan, and sizable gross-debt
position.  These risks are partly offset by Companhia Siderurgica's
privileged cost position and sound operating profile, favorable market
position in Brazil, strong export capabilities to offset occasional domestic
demand sluggishness, and increasing business diversification.


EMBRATEL: Units' Tax Contingencies Affect Third Quarter Results
---------------------------------------------------------------
Embratel Participacoes S.A. aka Embrapar discloses that the income for the
quarter ended Sept. 30, 2006, will be affected as a result of the
acknowledgement of expenses related to tax contingencies by its controlled
companies:

   -- Empresa Brasileira de Telecomunicacoes S.A. aka Embratel;
      and

   -- Telmex do Brasil Ltda.

Such expenses result from payments made and provisions created as a
consequence of contingencies encompassed by tax benefits, whose concession
was authorized pursuant to Convenio ICMS or the ICMS agreement.

Under the agreement, the States and the Federal District were authorized to
grant:

   -- partial remission, with the reduction of ICMS rates, and

   -- amnesty of monetary restatement, interests and fines for
      payment of debts, accrued or not,

resulting from non payment of ICMS on specific services, considered as
communication services under the agreement, the tax events of which have
occurred up to July 31, 2006.

The effective institution of the benefits resulting from the agreement
depends on the enactment of regulation by each State.  As for the States
where such benefit has already been instituted and in relation to which the
controlled companies Embratel and Telmex Brasil decided for the adhesion,
payments representing expenses of BRL191.7 million have been made,
substantially from the controlled company Embratel, in addition to the
provisions contained in the financial statements, putting an end to the
relevant discussion, including all ongoing administrative and judicial
proceedings in the States.  The payments have already been made, considering
that the use of the tax benefits at stake depends on the payment of amounts
calculated according to the provisions of the regulatory acts in reference
and within the timeframe established therein.

Additionally, in relation to the States where there has not been the legal
implementation of the agreement or the adhesion to such benefit until the
present date, the controlled companies Embratel and Telmex Brasil created an
additional provision in the amount of BRL306.7 million and BRL16.1 million,
respectively, in order to comply with the future payments necessary for the
use of the tax benefit granted, because they considered likely that, in
light of Resolution CVM No. 489, of Oct. 3, 2005, the communication debts
comprised under the agreement 72/06 will be paid.

As a consequence, the consolidated result in the quarter ended as of Sept.
30, 2006, was affected as a result of the acknowledgement of the actual
expenses and of the new provisions constituted in the total amount of
approximately BRL514.5 million.

Embrapar's decision of taking advantage of the tax benefits which are the
subject matter of agreement 72/06 results from a firm decision of its
management to reduce the amount of contingencies resulting from its
activities, aiming at having a more favorable environment for the growth of
its business and the improvement of its profitability in the following
years.

Embratel Participacoes S.A. offers a range of complete
telecommunications solutions to the market all over Brazil,
including local, long distance domestic and international
telephone services, data, video and Internet transmission, and
is present all over the country with its satellite solutions.
Embratel is the market leader in revenues with Long Distance,
Domestic and International calls.

Embratel Participacoes is rated by Moody's:

       * local currency issuer rating -- B1; and
       * senior unsecured debt -- B2.


GENERAL MOTORS: Investing US$100 Mil. Yearly to Improve Facility
----------------------------------------------------------------
General Motors Corp. will spend about US$100 million per year to boost its
technology center and testing facility in Brazil starting in 2007, Valor
Economico reports.

Business News Americas relates that General Motors has 13 development teams
that develop the architecture for each model.  These teams are spread
across:

          -- Europe,
          -- South Korea,
          -- Australia, and
          -- the United States.

According to BNamericas, the Brazilian technology center will develop
medium-sized pick-up trucks for the whole group.  Meanwhile, the test
facility will be an observation point for certain lines of cars.

BNamericas underscores that General Motors' local unit will also increase to
1,200 from 660 the number of engineers who work in its Brazilian branches.

General Motors' yearly budget for investment is BRL500 million in Brazil.
The amount is expected to increase to BRL1 billion in 2009 and 2010,
depending on future production needs, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Oct. 11, 2006,
Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3'
short-term corporate credit ratings on General Motors Corp. would remain on
Credit Watch with negative implications, where they were placed March 29,
2006.  The Credit Watch update follows the announcement that GM, Nissan
Motor
Co. Ltd., and Renault S.A. are no longer in talks to explore a global
automotive partnership.  Standard & Poor's had not factored any potential
benefits of an alliance into GM's ratings.


GERDAU SA: Joint Venture on US West Coast Good for Firm
-------------------------------------------------------
Brokerage firm Ativa Corretora said in a report that Gerdau SA's move to
form a joint venture on the United States west coast through Gerdau
Ameristeel, its subsidiary in the country, is good for the group.

Business News Americas relates that Gerdau Ameristeel disclosed in Oct. 18 a
joint venture deal with Pacific Coast Steel and Bay Area Reinforcing.

According to BNamericas, Gerdau will acquire a controlling interest in the
new joint venture, while Pacific Coast will hold about US$104 million less
the assumption of certain long-term liabilities.

Gerdau said in a report, "We consider the acquisition positive and in line
with Gerdau's internationalization strategy, which is expanding its
activities in the US.  The investment made was relatively low."

The transaction will conclude by the end of 2006, BNamericas states.

Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br/-- produces and distributes crude steel and
related long rolled products, drawn products, and long specialty products.
In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau's four majority-owned Brazilian operating subsidiaries are:

   -- Acominas,
   -- Gerdau Acos Longos S.A.,
   -- Gerdau Acos Especiais S.A. and
   -- Gerdau Comercial de Acos S.A.;

                        *    *    *

Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.

                        *    *    *

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


MRS LOGISTICA: Sees BRL419 Million Net Profit in 2006
-----------------------------------------------------
MRS Logistica said in a filing with Comissao de Valores Mobiliarios that it
expects a BRL419-million net profit in 2006.

Business News Americas relate that MRS Logistica's gross revenue is expected
to be BRL2.31 billion, while its Ebitda will be BRL889 million.

According to BNamericas, officials of MRS Logistica are aiming to end 2006
with 113 million tons of cargo transported.

BNamericas underscores that MRS Logistica's investments for 2006 are likely
to reach BRL637 million, with:

          -- BRL289 million allotted for the acquisition of
             rolling stock,

          -- BRL222 million for permanent track, and

          -- BRL70.6 million for signaling, power and
             telecommunications upgrades.

MRS Logistica's board ratified the purchase of 137 cargo wagons from
Amsted-Maxion, a local manufacturer, for a BRL22-million price tag,
BNamericas states.

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

                        *    *    *

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


NET SERVICOS: Board Approves Acquisition of Interest in Vivax
-------------------------------------------------------------
Net Servicos de Comunicacao S.A.'s members of the board approved the
acquisition of the minority interest in Vivax S.A. held by Horizon Telecom
International LLC and the subsequent acquisition of control from Brasil TV a
Cabo Participacoes S.A. via a stock swap.  Vivax shareholders will receive
0.5678 of a preferred Net Servicos share for each Vivax share issued.  This
exchange ratio is based on internal and market evaluations of both
companies, in compliance with the transaction terms prepared by the
Executive Board.

                        About Vivax

Vivax, through its operating subsidiaries, is the second cable operator, in
numbers of subscribers and one of the main broadband Internet connection
providers in the States of Sao Paulo, Rio de Janeiro and Amazonas.

                     About Net Servicos

Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.

NET also offers Broadband InterNet services through its NET
VIRTUA brand name.

                        *    *    *

Moody's America Latina assigned on May 22, 2006, a Baa2.br
Brazilian National Scale Rating and a B1 Global Local Currency
Rating to Net Servicos de Comunicacao S.A.'s BRL650 million
debentures due in 2011 issued in September 2005.  Concurrently,
Moody's Investors Service affirmed Net's B1 global local
currency scale corporate family rating.  Moody's said the ratings outlook is
stable.

                        *    *    *

As reported in the Troubled Company Reporter on March 15, 2006,
Standard & Poor's Rating Services raised on its foreign and
local currency corporate credit ratings on Brazilian cable pay-
TV and broadband operator Net Servicos de Comunicacao S.A to
'BB-' from 'B+'.  The Brazil National Scale rating assigned to
NET and its BRL650 million debentures due 2011 was also revised
to 'brA' from 'brBBB+'.  S&P said the outlook on the ratings was
revised to stable from positive.


NOVELIS INC: Posts US$6-Million Second Quarter 2006 Net Income
--------------------------------------------------------------
Novelis Inc. said in a statement that its net income for the second quarter
of 2006 was US$6 million, compared with the breakeven results in the second
quarter of 2005.

According to Business News Americas, the delay in disclosing Novelis Inc.'s
second quarter result is due to complications related to the January 2005
spin-off.

Novelis Inc. said in a statement that it sustained a net loss of US$68
million for the first half of 2006, compared with the US$22 million profit
in the first six months of 2005.

BNamericas relates that Novelis Inc.'s net sales were US$2.6 billion in the
second quarter of 2006, compared with the US$2.2 billion recorded in the
same period in 2005.  In the first half of 2006, its net sales were US$4.9
billion, compared with US$4.3 billion in the same period in 2005.

BNamericas notes that Novelis Inc. increased its shipments of rolled
products by 3% to 753,000 tons in the second quarter of 2006, compared with
the 730,000 tons in the second quarter of 2005.  Its shipments increased
3.5% to 1.49 million tons in the first half of 2006, compared with the first
half of 2005.

Novelis Inc. told BNamericas that its earnings have suffered in 2006 due to
high metal prices it has been unable to transfer to its clients as a result
of price ceilings in part of its can sheet sales in North America.

BNamericas underscores that these factors affected its financial results for
the second quarter of 2006 and for the first half of 2006:

          -- high energy and transport costs,
          -- unfavorable exchange rates, and
          -- costs related to Novelis Inc.'s restatement
             process, which has delayed its financial reporting.

Novelis Inc. told BNamericas that its reports will be back on track when it
releases its third quarter 2006 data during the fourth quarter.

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 its customers.

Full-text copies of the Company's first quarter financials are available for
free at http://ResearchArchives.com/t/s?1221

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service downgraded Novelis Inc.'s corporate family rating
to B1 from Ba3, the bank revolver rating to Ba3 from Ba2, the bank term loan
rating to Ba3 from Ba2, and senior unsecured notes to B2 from B1.  Moody's
also downgraded Novelis Corp.'s bank term loan rating to Ba3 from Ba2.


PETROLEO BRASILEIRO: Awards US$250-Million Contract to Subsea 7
---------------------------------------------------------------
Petroleo Brasileiro, the state oil company of Brazil, has awarded Subsea 7 a
six-year, US$250-million contract for Kommandor 3000, the latter's
pipe-laying vessel, Reuters reports, citing Subsea 7.

Reuters relates that Kommandor 3000 has been running in Brazil since 1999.
It lays offshore pipelines on the sea floor.

"The contract, with a value in the region of US$250 million, is for the
exclusive use of the Kommandor 3000 (vessel) for a period of six years
commencing in February 2007," Subsea 7 said in a statement.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by
Moody's.

                        *    *    *

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

  Maturity Date           Amount        Rate       Ratings

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

Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with
positive outlook, in conjunction with Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of Brazil to BB,
from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Board OKs Petros-2 Employee Pension Plan
-------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras's board of directors approved the new
denominated Petros-2 pension plan covering the company's 16,000 employees
hired since August 2002 and not enjoying the benefits of a company pension
plan.  The key points of the plan meet the terms agreed in the Collective
Labor Agreements since 2004 and this plan will now be submitted for approval
to the regulatory authorities and subsequently presented to the employees
for their consideration.

In August 2002, the company decided to cease admitting newly hired employees
as members of the Petros Plan.  Since then, employees hired by the company
have been covered by a group life insurance scheme.

The Petros-2 Plan is characterized as a Variable Contribution Plan as
described in the Resolution of the Management Council on Complementary
Social Security Programs or CGPC, since it has the characteristics of a
Defined Contribution Plan -- capitalization in an Individual Account and a
pension based on the balance in this account -- as well as those of a
Defined Benefit Plan -- option to receive a Lifetime Income and Risk
Benefits with coverage for illness, incapacity and death.

The new Petros-2 Plan will involve equal contributions from the company and
employees, varying at the employee's option between a base of 6% of the
Contribution Wage and a maximum of 8% to 11% according to age group.  The
purpose of the base is to provide the required funds to pay a minimum
retirement pension, as well as covering the plan's risk benefits and
administrative expenses.

The Petros-2 Plan is in legal compliance with the principles of deferred
proportional benefit, portability, redemption and self-sponsorship for
closed entity plans as established by the CGPC of the Ministry for Social
Security and Welfare.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

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

  Maturity Date           Amount        Rate       Ratings

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

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Inks MoU to Deploy Biodiesel Prod'n Units
--------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras' Gas & Energy Area director, Ildo
Sauer, and the president of Petrobras Distribuidora, Maria das Gracas Silva
Foster, signed memorandums of understanding for the deployment of industrial
biodiesel production units in Southern Brazil.

Two memorandums were signed:

   -- one with the Brazilian Mixed Biofuel Production,
      Industrialization, and Marketing Coop (Cooperativa Mista
      de Producao, Industrializacao e Comercializacao de
      Biocombustiveis do Brasil, Cooperbio), and

   -- another with the Rio Grande do Sul "Pampa" Region Biofuel
      Coop (Cooperativa de Biocombustiveis da Regiao do Pampa
      Gaucho, Biopampa) and Frigorifico Mercosul Ltda.

Director Sauer disclosed that Petrobras and Cooperbio will sign an agreement
for the technological validation of projects for ethanol production
integrated to food crop growing by farmer families.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

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

  Maturity Date           Amount        Rate       Ratings

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

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


SANTANDER BANESPA: Denies Rumors on Firm's Sale
-----------------------------------------------
Banco Santander Banespa denied local reports saying that the firm was in any
purchase talks.

High-level officials, according to Valor Economico, said that Spain's Grupo
Santander hired Goldman Sachs to offer its Santander Banespa unit in
exchange for a stake in either of the top three private sector banks in
Brazil:

          -- Banco Bradesco,
          -- Banco Itau Holding Financeira, or
          -- Uniao de Bancos Brasileiros.

Grupo Santander purchased Banespa, which was a former state bank of Sao
Paulo, in an auction in 2000, Business News Americas reports.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 8, 2006, Standard & Poor's Ratings Services assigned its
'BB/B' counterparty credit rating to Banco Santander Banespa
S.A.


VERIFONE HOLDINGS: Inks US$15MM Vx Solutions Pact with GetNet
-------------------------------------------------------------
GetNet Tecnologia, a Brazilian network services provider, has awarded
VeriFone Holdings, Inc., with an order for Vx Solutions payment systems
valued at more than US$15 million.

GetNet has been a prime user of VeriFone's state-of-the-art management and
IP technologies.  Under this new agreement, GetNet is expanding its network
by using selected models of the Vx Solutions family, including the Vx 510 in
both dial and LAN configurations and the Vx 610 with GPRS connectivity.
GetNet has begun the initial deployment of these units, and is supported by
Skytef, a VeriFone International Partner.

"VeriFone do Brasil doubled its size from 2005 to 2006 due to our
partnership with vertical players such as GetNet," said Heman Molina,
General Manager of VeriFone's Brazil operations.  "This is a tremendous win
for VeriFone based on the ability of Vx Solutions to fit with GetNet's
growth strategy to become the largest processor of electronic transactions
in Latin America by 2010."

GetNet provides services for companies such as card issuers and processors,
petro distributors, banks, utility companies, and telco top-up distributors,
among others, acquiring transactions for private label, credit and debit,
check authorization, telco top-up, utility and bill payment, fleet card, and
others.

"VeriFone's Vx Solutions represent an advanced multiapplication platform
that will enable GetNet to provide our customers with comprehensive payment
capabilities to meet all consumer needs, from purchase of goods to payment
of utilities," said Jose Renato Hopf, GetNet's CEO.  "Vx Solutions provides
us with the ability to deploy the same applications over varying models of a
unified product family."

Vx Solutions delivers a complete portfolio of solutions across all vertical
markets in a variety of configurations from fixed to transportable to
handheld.  It leverages the Verix platform, enabling customers and partners
to deploy hardware, software, and off-the-shelf peripherals for mission
critical transactions that open up new market opportunities.

                       About GetNet

GetNet Tecnologia  -- http://www.getnet-tecnologia.com.br/-- is the fourth
largest acquirer in Brazil.  The company sells directly to merchants.  With
its presence in more than 68,000 establishments and 2,900 cities throughout
the country, it has the ability to share its network and extend it with
value-added applications.

                       About Verifone

VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems.  The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 29, 2006, Moody's
Investors Service has affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative.  At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.




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


AQUAMARINE IAM: Proofs of Claim Filing Deadline Is on Nov. 10
-------------------------------------------------------------
Aquamarine IAM Ltd.'s creditors are required to submit proofs of claim by
Nov. 10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Aquamarine IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


CANDID IAM: Deadline for Proofs of Claim Filing Is on Nov. 10
-------------------------------------------------------------
Candid IAM Ltd.'s creditors are required to submit proofs of claim by Nov.
10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Candid IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


CARIBBEAN VICTORA: Final Shareholders Meeting Is Set for Nov. 7
---------------------------------------------------------------
Caribbean Victora Ltd.'s final shareholders meeting will be at 9:00 a.m. on
Nov. 7, 2006, at the company's registered office.

These agendas 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:

          Raymond E. Whittaker
          FCM LTD.
          P.O. Box 1982
          Grand Cayman KY1-1104
          Tel: 345-946-5125
          Fax: 345-946-5126


EQUITY ASM: Shareholders Gather for Final Meeting on Nov. 6
-----------------------------------------------------------
Equity ASM Ltd.'s final shareholders meeting will be at 10:00 a.m. on Nov.
6, 2006, at the company's registered office.

These agendas 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.
          Attn: Ica Eden
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: 345 949 5122
          Fax: 345 949 7920


EQUITY CU: Invites Shareholders for Final Meeting on Nov. 6
-----------------------------------------------------------
Equity CU Ltd.'s final shareholders meeting will be at 10:30 a.m. on Nov. 6,
2006, at the company's registered office.

These agendas 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.
          Attn: Ica Eden
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: 345 949 5122
          Fax: 345 949 7920


GROSVENOR HOLDINGS: Last Shareholders Meeting Is Set for Nov. 8
---------------------------------------------------------------
Grosvenor Holdings Ltd.'s final shareholders meeting will be at 10:30 a.m.
on Nov. 8, 2006, at the company's registered office.

These agendas 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:

          David Singleton
          Herald Trust Company Ltd.
          P.O. Box 501, 8 Hill Street, St. Helier
          Jersey JE4 9XB, Channel Islands
          Tel: 011 44 1534 610 610
          Fax: 011 44 1534 610 611


HARRIER IAM: Last Day for Proofs of Claim Filing Is on Nov. 10
--------------------------------------------------------------
Aquamarine IAM Ltd.'s creditors are required to submit proofs of claim by
Nov. 10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Harrier IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


HYBRIDS IAM: Filing of Proofs of Claim Is Until Nov. 10
-------------------------------------------------------
Hybrids IAM Ltd.'s creditors are required to submit proofs of claim by Nov.
10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Hybrids IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


IRONWOOD IAM: Last Day to File Proofs of Claim Is on Nov. 10
------------------------------------------------------------
Ironwood IAM Ltd.'s creditors are required to submit proofs of claim by Nov.
10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Ironwood IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


WATERFALL IAM: Creditors Must Submit Proofs of Claim by Nov. 10
---------------------------------------------------------------
Waterfall IAM Ltd.'s creditors are required to submit proofs of claim by
Nov. 10, 2006, to the company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Waterfall IAM's shareholders agreed on Oct. 3, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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




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


BLOCKBUSTER INC: Declares Cash Dividend of US$18.75 Per Share
-------------------------------------------------------------
Blockbuster Inc.'s board of directors has declared a quarterly cash dividend
of US$18.75 per share on its shares of 7-1/2% Series A Cumulative
Convertible Perpetual Preferred Stock, in accordance with the terms of the
Series A Preferred Stock.  The dividend will be payable on Nov. 15, 2006, to
the holders of record of the Series A Preferred Stock at the close of
business on Nov. 1, 2006.

                      About Blockbuster

Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- is a global provider of in-home
movie and game entertainment, with more than 9,000 stores
throughout the Americas, Europe, Asia and Australia.  The
company operates in Puerto Rico, Argentina, Brazil and Chile.

                        *    *    *

Standard & Poor's Ratings Services lowered, in November 2005,
its corporate credit and bank loan ratings on Blockbuster Inc.
to 'B-' from 'B' and the subordinated note rating to 'CCC' from
'CCC+'. S&P said the outlook is negative.

Fitch downgraded, in August 2005, Blockbuster Inc.'s Issuer
default rating to 'CCC' from 'B+'; Senior secured credit
facility to 'CCC' from 'B+' with an 'R4' recovery rating; and
Senior subordinated notes to 'CC' from 'B-' with an 'R6'
recovery rating.


ENDESA: Reports 141,029GWh of Power Output in First Nine Months
---------------------------------------------------------------
ENDESA produced a total of 141,029 GWh of power in the first nine months of
2006, an increase of 2.9% from the same period last year.  Growth was driven
by in the areas outside of Spain where ENDESA generates power, with
increases of 8.2% in Latin America and 8.3% in Europe.  In Spain, output
between January and September reached 68,222 GWh, 2.2% lower than in the
year-ago period.  Over half of the total energy generated by ENDESA at
present comes from outside Spain.

By technology, noteworthy was the 8.8% increase (to 39,655 GWh) in ENDESA's
hydro generation, thanks to the increase in rainfall in Latin America.  CCGT
output fell during the period (-8.5%, to 22,600 GWh), mostly because of the
decline in the usage of these plants in Latin America, where there was a
scarcity in gas supply.

Nuclear generation rose 5.8% and renewable/CHP output by 12.9% (to 1,793
GWh).

ENDESA boasts a balanced production mix:

   -- 28% of GWh produced at all its plants is hydro based,
   -- 29% is coal,
   -- 13% is nuclear,
   -- 13% fuel-oil/gas,
   -- 16% is from CCGTs and
   --  1% from renewable/CHP.

This balanced mix provides ENDESA with stable generation in different
scenarios, making it less vulnerable to hydro volatility in the mainland or
to swings in oil and gas prices.

                           Spain

ENDESA produced 68,222 GWh of power in Spain in the first nine months of
2006, a decrease of 2.2% on the same period of 2005. Power output totalled
55,533 GWh in the ordinary mainland system -a 3.9% decrease- and 10,919 GWh
in the Balearic and Canary Islands and Ceuta-Melilla systems -an increase of
5.1%-.  Energy produced via CCGTs and renewable/CHP rose 12.8% (to 1,770
GWh) and via wind power by 26%.  The fall in mainland output was caused by
the drought affecting the hydro systems since last year, the shut-down for
revision of the Los Barrios plant and high CO2 prices, which affected
coal-fired output.

ENDESA's hydro output in Spain fell 8.9% yoy to 5,541 GWh, while the rest of
the technologies showed mixed performances.  Generation by the coal plants
(25,700 GWh) was down 5.6%, while generation by the CCGTs (5,605 GWh) was
flat. Nuclear output (17,806 GWh) was 5.8% higher, while output from ENDESA'
s fuel-gas plants (881 GWh) plummeted 56.6%.

                       Latin America

ENDESA produced 46,364 GWh of power in Latin America through to September
this year, 8.2% more than in the same period last year. ENDESA's output in
Argentina rose 11.6% to 13,444 GWh, largely thanks to the rebound in hydro.
Production rose 4.1% in Peru (to 5,271 GWh), 6.6% in Chile (to 14,693 GWh),
8.2% in Colombia (to 9,577 GWh) and 8.% in Brazil (to 3,379 GWh) vs. 9M05.

                          Europe

Output has continued to rise in Europe, which, together with Latin America,
underpinned the Group's overall increase.  In Europe, generation rose 8.3%,
to 26,443 GWh.

Production in Italy through to September totalled 19,420 GWh, 12.1% higher
than the 17,329 GWh produced in the first nine months of 2005. The
significant boost was due to the recent start-up of CCGTs (generation with
this technology has increased by 9.2%, to 9,084 GWh) and the needs of the
fuel plants, which produced 32.8% more power, or 3,715 GWh.  Hydro output
was flat (at 1,816 GWh), while coal generation rose 9.3% to 4,783 GWh.

Snet's output in the first nine months of 2006 was 7,023 GWh, a touch below
last year's level.

Empresa Nacional de Electricidad S.A. aka Endesa Chile and its
subsidiaries generate and supply electricity.  The company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.

                   *    *    *

Moody's Investors Service placed on Oct. 18, 2006, the senior unsecured Ba1
debt ratings of Enersis S.A., and Empresa Nacional de Electricidad, S.A. aka
Endesa Chile under review for possible upgrade.




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


BANCOLOMBIA: Launches Credit Card for Low-Income Clients
--------------------------------------------------------
Bancolombia has launched a MasterCard credit card for
lower-income customers.

According to Business News Americas, the MasterCard Ideal credit card will
be available for Bancolombia clients earning up to 2.5 times the minimum
monthly wage, which is from COP408,000 to COP1.2 million.

Bancolombia will disclose its third quarter 2006 consolidated results on
Nov. 7, BNamericas states.

                        *    *    *

The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded Bancolombia's bank
financial strength ratings to D+ from D with a stable outlook.

Moody's added that the action concludes the review for possible upgrade that
was announced on Oct. 13, 2005.  Moreover, Bancolombia's Ba3/Not Prime long-
and short-term foreign currency deposit ratings were affirmed.  Moody's said
the outlook on all ratings is stable.


HEXION: Dividend Payout Cues S&P to Lower Credit Ratings to B
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit rating on
Hexion Specialty Chemicals Inc. to 'B' from 'B+'.  The outlook is stable.
The rating agency also lowered the rating on the existing $225 million
first-lien senior secured revolving credit facility to 'B' from 'B+' and
revised the recovery rating to '2' from '3'; this indicates our expectation
for substantial recovery of principal in the event of a default.

At the same time, Standard & Poor's assigned a 'B' bank loan rating with a
recovery rating of '2' to the company's proposed US$2 billion first-lien
senior secured term loan and US$50 million first-lien synthetic letter of
credit facility.  The 'B' rating and recovery rating of '2' indicate the
expectation for substantial (80% to 100%) recovery of principal in the event
of a default.

In addition, Standard * Poor's assigned a 'B-' rating and a recovery rating
of '3' to a proposed US$825 million second-lien senior secured notes issue.
The 'B-' rating and the recovery rating of '3' indicate the expectation for
a meaningful (50% to 80%) recovery of principal in the event of a default.
The 'B-' rating on the second-lien senior secured notes is one notch lower
than the corporate credit rating reflecting the notes' junior claim on
collateral and the presence of higher priority claims, including the
first-lien debt, in the capital structure.  The term loan and the notes will
be used to pay down existing debt and to fund a $500 million dividend payout
to equity holders.  The ratings are based on preliminary terms and
conditions.

The downgrade follows Hexion's recent announcement of a $500 million planned
dividend payout to its equity holder, Apollo Management L.P., and reflects
our increased concern related to the company's very aggressive financial
policy and an increase in financial risk.

"The debt-funded dividend will result in higher leverage than anticipated at
the previous rating, and brings into question the company's commitment to
reduce debt in order to support credit quality," said Standard & Poor's
credit analyst Paul Kurias.  "In addition, the increase in leverage comes at
a time when some end-markets, notably the housing sector, are weakening
somewhat, and increases the company's vulnerability to potential declines in
operating performance if conditions deteriorate."

The ratings on Hexion reflect a highly leveraged financial profile, a very
aggressive financial policy, and a weak business risk profile as a global
manufacturer and marketer of thermoset resins.  Hexion was created by the
merger of Borden Chemical Inc. (including Bakelite AG), Resolution Specialty
Materials LLC (RSM), and Resolution Performance Products LLC.  The
combination created one of the largest specialty and industrial chemical
companies in North America with a diversified product portfolio, technology
base, end market sales, and geographic sales base.

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
Company has 86 manufacturing and distribution facilities in 18
countries.  In Latin America, the company has operations in
Argentina, Brazil and Colombia.




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


* COSTA RICA: Pres. OKs Power Firm's Availment of US$435MM Debt
---------------------------------------------------------------
The Costa Rican presidential Web site states that President Oscar Arias
signed a decree that authorizes Instituto Costarricense de Electricidad, the
nation's state power and telecom group, to take on US$435 million in debt.

The report posted on the Web site states that under the decree, Instituto
Costarricense is exempted from having to obtain approval from Conafin, the
internal and external funding and investment authority, before it could
develop projects.

According to the report, the funding will be evenly split between power and
telecom.

Business News Americas relates that the Costa Rican congress is analyzing
legislation to modernize Instituto Costarricense.  This legislation declares
Instituto Costarricense's power and telecom expansion plans.

Instituto Costarricense is considering building a 100-megawatt thermo
project, Business News Americas reports.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.




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


* CUBA: Returning to Standard Time After Three Years
----------------------------------------------------
The National Electrical Union of Cuba has decided that the country use the
standard time schedule again, starting at the end of this month, Indo-Asian
News Service reports.

Indo-Asian News relates that Cuba has been following the summer time
schedule for three years to save on scarce electricity.  The summer schedule
is commonly used in many nations to save on electricity.

The Electrical Union has ensured the generation of the energy needed in
Cuba, Indo-Asian News notes.  Cuba is in a position to generate the
necessary energy due to:

         -- the upgrade of thermoelectric plants and their
            adaptation for consumption of Cuban crude oil,

         -- the installation of alternative generating plants,
            and

         -- the repair of distribution networks.

Watches will be set back by one hour on Oct. 29 at 1:00 a.m. -- going back
to 12:00 a.m. -- in effect returning to normal standard time schedule,
Prensa Latina states.

                        *    *    *

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


AES DOMINICANA: Andres Unit Runs on Natural Gas
-----------------------------------------------
AES Andres -- a unit of AES Dominicana, AES Corp.'s subsidiary in the
Dominican Republic -- operates on 60,000 cubic meters of natural liquefied
gas, Dominican Today reports.

Natural Gas is the fossil fuel that causes the least environmental impact
and is one of the most competitive price-wise among hydrocarbons used in
generating energy in the nation.

Dominican Today underscores that British Merchant, the fuel vessel carrying
the fourth supply of natural gas for AES Andres, arrived last week from
Trinidad & Tobago.

AES Andres said in a statement, "A month from now, we will be receiving the
fifth shipment of liquefied natural gas, to guarantee that the plant will
not go out of service during the rest of 2006, as long as no major technical
failures emerge."

Dominican Today relates that AES Andres was then able to maintain its
permanent contribution to the National Interconnected Energy System.   AES
Andres supplies the Energy System with 245 to 300 megawatts per hour.

AES Andres had secured in May fuel supply for its centrals to cover demand
during 2006 and 2007, Dominican Today states.

                      About AES Andres

AES Andres is a 310-megawatt gas fired combined cycle plant co-located with
a liquefied natural gas (LNG) importing terminal.
The plant and LNG facility are located 30 kilometers east of Santo Domingo
in the Dominican Republic.

                    About AES Dominicana

AES Dominicana is a special-purpose financing entity of AES Corp. in the
Dominican Republic.  It manages two of AES Corp.'s wholly owned generating
facilities, Andres and DPP.  Andres is incorporated under the laws of the
Netherlands, and it owns a
304-megawatt gas-fired, combined-cycle plant outside of Santo
Domingo. The facility also includes an LNG regasification terminal.  AES
Dominicana also includes Itabo.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 21, 2006, Standard & Poor's Ratings Services' 'B-' rating on AES
Dominicana Energia Finance SA's US$160 million senior notes due 2015
reflects the challenges of operating in the electric sector in the Dominican
Republic, and a legacy liquefied natural gas contract that could be
burdensome, offset by the contractual nature of the revenue stream, and
continued support of the electricity sector by the Dominican government.
S&P said the outlook is stable.




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


PETROECUADOR: Recovers 450 Barrels of Spilt Oil Near Yasuni Park
----------------------------------------------------------------
Petroecuador, the state oil company of Ecuador, told Reuters that it had
recovered about 450 of the nearly 650 barrels of crude oil that spilled near
the Yasuni national park, the nation's largest rain forest park and one of
the most biologically diverse reserves in the world.

According to Reuters, Petroecuador said that a pipeline has ruptured miles
from Yasuni, causing the spill.

The oil spill was blocked from reaching a river that flows inside the park
150 miles (245 km) southeast of Quito, Petroecuador said in a statement.

Alonso Jaramillo, the park director of Yasuni, told Reuters, "The Yasuni
reserve was not affected, but we are worried because the spill occurred only
two hours away from the park."

"The ecosystem of the Yasuni is extremely delicate.  Its a real concern when
you hear about these repetitive oil spills in protected areas," Laura Arcos,
a professor at the Catholic University in Quito, told Reuters.

PetroEcuador, according to published reports, is faced with cash-problems.
The state-oil firm has no funds for maintenance, has no funds to repair
pumps in diesel, gasoline and natural gas refineries, and has no capacity to
pay suppliers and vendors.
The government refused to give the much-needed cash alleging inefficiency
and non-transparency in PetroEcuador's dealings.


PETROECUADOR: Inks Output & Transport Study with Olade
------------------------------------------------------
Petroecuador, the state-owned oil firm of Ecuador, has signed a US$73,500
contract with Olade, an energy organization in Latin America, to conduct a
study on Petroecuador's oil production and transport activities, the
Ecuadorean government said in a statement.

As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2006,
Petroecuador said that Olade agreed to audit its oil output.  Petroecuador
requested Olade to conduct the audit when Direccion Nacional de
Hidrocarburos -- the Ecuadorean national hydrocarbons department --
questioned Petroecuador's output figures, alleging that the state firm
boosted its crude output reports by including water in oil production
figures.  Oil production Petroecuador disclosed was 4% higher than the one
recorded by Direccion Nacional since 1995.

Business News Americas relates that Olade will present in 30 days a report
regarding national hydrocarbons department DNH's declaration of possible
crude theft from Petroecuador fields as well as a report on the company's
audit of the bypass systems discovered on them.

Petroecuador said in a statement that Olade will propose:

          -- recommendations,
          -- improvements, and
          -- conceptual engineering for the company's transport
             and production systems within 60 days.

Petroecuador, according to published reports, is faced with cash-problems.
The state-oil firm has no funds for maintenance, has no funds to repair
pumps in diesel, gasoline and natural gas refineries, and has no capacity to
pay suppliers and vendors.  The government refused to give the much-needed
cash alleging inefficiency and non-transparency in Petroecuador's dealings.


PETROECUADOR: Unit Suffers from Cononaco-Auca Oil Spill
-------------------------------------------------------
Petroecuador, the state-owned oil firm of Ecuador, said in a statement that
Petroproduccion, its subsidiary, has suffered a spill from the Cononaco-Auca
secondary oil pipeline.

Business News Americas relates that the size of the spill is yet
undetermined.

According to BNamericas, Petroproduccion had recovered about 250 barrels as
of Thursday last week.

Technicians are trying to find out the cause of the spill, BNamericas
states.

Petroecuador, according to published reports, is faced with cash-problems.
The state-oil firm has no funds for maintenance, has no funds to repair
pumps in diesel, gasoline and natural gas refineries, and has no capacity to
pay suppliers and vendors.
The government refused to give the much-needed cash alleging inefficiency
and non-transparency in Petroecuador's dealings.




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


BANCAFE: Central Bank Permanently Suspends Operations
-----------------------------------------------------
The Guatemalan central bank, said in a statement that it has permanently
suspended the operations of Bancafe in the country.

Maria Antonieta de Bonilla, the president of the central bank, told Reuters,
"The board unanimously resolved to suspend operations in Bancafe due to
financial problems derived from the investment of US$204 million in the
brokerage Refco."

Reuters relates that Bancafe owns US$204 million of US Treasury bonds held
by Refco Inc., a bankrupt commodities broker.

The Monetary Board of Guatemala told Reuters that it decided to intervene in
Bancafe to protect the liquidity and solvency of the national banking system
and to secure and strengthen national savings.

"The decision was taken at this moment because holdings in the bank were
eroding," Reuters says, citing Willy Zapata, Guatemala's banking
superintendent.

The Guatemalan banking regulatory body told Reuters that Bancafe has US$900
million in deposits, a million account holders and assets worth about US$1 b
illion.

The central bank of Guatemala said in a statement that it appointed a board
that will transfer deposits from Bancafe to other banks.

Mr. Zapata told Reuters that also Bancafe has offshore holdings in Barbados
valued at around US$240 million.  However, these deposits no longer have the
backing of Bancafe and will not be covered by the government's recovery
plan.

Barbados' central bank will be responsible for managing Bancafe's funds in
that nation, Reuters notes, citing Mr. Zapata.

There would be limited fallout from the intervention, Reuters says, citing
Franco Uccelli, an analyst at Bear Stearns.

"We expect the systemic impact of Bancafe's failure to be relatively small,
since the bank's troubles were well documented and were not representative
of the system's improved financial health," Mr. Uccelli told Reuters.

Bancafe is part of Grupo Financiero del Pais, a financial group that offers
personal, corporate and small business banking.  It is not connected to
Banco del Cafe, a state-owned bank in Colombia.




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


CINRAM INT: Declares Cash Distribution of CAD0.2708 Per Unit
------------------------------------------------------------
Cinram International Income Fund has declared a cash distribution of
CAD0.2708 per unit for the month of October 2006, payable on Nov. 15, 2006,
to unit holders of record at the close of business on Oct. 31, 2006.

Cinram International Limited Partnership also declared a cash distribution
of CDN0.2708 per Class B limited partnership unit for the month of October
2006 payable on Nov. 15, 2006, to unit holders of record at the close of
business on Oct. 31, 2006.

The Fund and the Partnership's current annualized distribution rate is
CAD3.25 per unit, payable in monthly distributions of CAD0.2708 per unit.
In accordance with the distribution policy of both the Fund and the
Partnership, unit holders of record at the close of business on the last
business day of each calendar month are paid a distribution on or about the
15th day of the following month.

Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services.  With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world.  The company has sales offices in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on May 11, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on prerecorded multimedia manufacturer Cinram
International Inc. to 'BB-' from 'BB' following the company's
announcement that it had successfully converted into an income
trust.  The ratings were removed from CreditWatch with negative
implications, where they were placed March 3, 2006.


DESC SA: Fitch Sees Real Estate Divestiture as Mildly Positive
--------------------------------------------------------------
Fitch Ratings views Desc, S.A. de C.V.'s divestiture of its real estate
business as mildly positive to credit quality and likely neutral to the
company's ratings.  DESC's ratings are:

   -- Foreign currency and local currency Issuer Default Ratings
      'B+';

   -- Foreign currency and local currency secured debt and IFC
      B Loan Participations 'BB-/RR3';

   -- National scale senior unsecured debt and UDI-denominated
      bonds due 2006 and 2007 'BBB(mex)';

   -- National scale Certificados Bursatiles due 2010 at
      'AA (mex)'.

The Rating Outlook for all ratings is Stable.

DESC recently announced that it initiated the process of spinning-off the
real estate business (Dine).  As part of the transaction, all assets related
to the real estate business as well as net debt of approximately US$100
million will be assigned to a separate company. On a proforma basis, the
Dine spin-off should moderately decrease consolidated leverage and somewhat
reduce earnings volatility.  Trailing 12 months EBITDA was approximately
US$170 million on a consolidated basis and US$158 million excluding Dine.
Net debt-to-EBITDA is expected to decrease to 2.8x from 3.2x after the
effects of the transaction, which is solid for the rating category. The
transaction is subject to approval by the Board of Directors.

DESC continues to face a challenging operating environment, particularly in
the chemical business, as evidenced by lower third-quarter results.  While
the remaining business units, chemicals (36% of proforma LTM EBITDA), food
(35%), and automotive (29%), continue to provide a level of diversification,
overall financial performance will continue to be exposed to cyclicality.
The ratings incorporate management's strategy of refocusing the business and
paying down debt. The ratings also consider consolidated operating
performance, which continues to remain under modest pressure over the last
several quarters on a proforma basis.  Further expected improvements in
operating performance and continued debt repayment remain the keys to
supporting and further improving credit quality.

DESC is one of Mexico's largest industrial conglomerates, with operations in
the automotive parts, chemicals, food and real state businesses.  In 2005,
DESC had total revenues of US$2,216 million, EBITDA of US$199 million, and
exports of US$1,026 million.


FORD MOTOR: Collins & Aikman Stops Shipping Plastinc Parts
----------------------------------------------------------
Collins & Aikman Corp., an auto parts supplier operating under bankruptcy
court protection, stopped shipping carpet, instrument panels and other
plastic parts to Ford Motor Co.'s plant in Hermosillo, Mexico, when the two
firms got into a pricing dispute, the Associated Press reports.

According to AP, Ford Motor was forced to shut down for one shift assembly
lines that create Ford Fusion, Mercury Milan and Lincoln MKZ midsize cars.

Paul Wood, Ford Motor's spokesperson, told AP that the company had to close
down work on a shift that started at 11 p.m. on Friday last week and ended
at 6 a.m. on Saturday.  Parts shipments resumed for the next shift, and
production was resumed after Ford Motor gave Collins & Aikman the price
increase it demanded.

The shutdown occurred though Ford Motor had reached agreement with Collins &
Aikman on about 90% of the disagreement, including the price raise, AP says,
citing Mr. Wood.

A spokesperson of Ford Motor told AP that the stoppage of the deliveries
irreparably harmed the company's relationship with Collins & Aikman.

The halt in the deliveries was an "unprecedented conduct" for a supplier, AP
says, citing Ford Motor.

AP underscores that the delivery stoppage emphasizes the tension between
parts manufacturers and automakers as the Big Three continue to press
suppliers for cost reductions in the face of intense competition from Asian
car firms.

The report says that the stoppage of the deliveries also cost Ford Motor
some 400 vehicles.

Ford Motor, however, told AP that it will be able to make up the 400
vehicles at the Hermosillo plant.

Paul Macher -- the chief executive officer of Collins & Aikman -- and Mary
Ann Wright, the firm's vice president of engineering and design, are former
Ford Motor executives.

Mr. Macher and Ms. Wright should know the impact of the decision to cease
shipments to Ford Motor, AP says, citing Mr. Wood.

Mr. Wood told AP, "Given their decades of auto industry experience and their
decades of experience at Ford, they know full well what happens to a
relationship when a supplier disrupts a customer's production or even
threatens to do so."

Collins & Aikman hopes to continue supplying parts for Ford Motor, AP notes,
citing David Youngman, the spokesperson of Collins & Aikman.

Mr. Youngman told AP, "We value our long-standing relationship with Ford and
look forward to building upon our relationship in the future, once this
issue is behind us."

Mr. Youngman said that losing Ford Motor's business amounts to about 25% of
Collins & Aikman's production, AP states.

Headquartered in Dearborn, Michigan, Ford Motor Co. --
http://www.ford.com/-- manufactures and distributes automobiles in 200
markets across six continents including Brazil and Mexico.  With more than
324,000 employees worldwide, the company's core and affiliated automotive
brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda,
Mercury and Volvo.  Its automotive-related services include Ford Motor
Credit Co. and The Hertz Corp.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford Motor Co.
Under Review with Negative Implications following announcement that Ford
will sharply reduce its North American vehicle production in 2006.  DBRS
lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle from R-3 high.
DBRS also lowered Ford Motor Credit Company's long-term debt rating to
BB(low) from BB, and confirmed Ford Credit's short-term debt rating at
R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Co. and Ford Motor Credit Co. to 'B' from 'B+'.  Fitch also lowered
the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford
Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'.  Fitch said the
rating outlook remains negative.

Standard & Poor's Ratings Services also placed its 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related
entities on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior unsecured
ratings of Ford Motor Co. to B2 from Ba3 and the senior unsecured rating of
Ford Motor Credit Co. to Ba3 from Ba2.  The Speculative Grade Liquidity
rating of Ford has been confirmed at SGL-1, indicating very good liquidity
over the coming 12-month period.  Moody's said the outlook for the ratings
is negative.


FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
----------------------------------------------------------
Ford Motor Company has selected Delphi Corporation to provide hybrid
electrical powertrain systems technologies for two Ford hybrid vehicle
platforms.

Delphi will provide the battery pack systems and cooling systems for the
2008 Ford Fusion Hybrid and Mercury Milan Hybrid vehicles.  It will also
provide hybrid vehicle electronics for several other yet-to-be announced
vehicle customers.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents including Brazil and Mexico in Latin
America.  With more than 324,000 employees worldwide, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover,
Lincoln, Mazda, Mercury and Volvo.  Its automotive-related services include
Ford Motor Credit Company and The Hertz Corp.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford Motor
Company Under Review with Negative Implications following announcement that
Ford will sharply reduce its North American vehicle production in 2006.
DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and
lowered its short-term debt rating to R-3 middle from R-3 high.  DBRS also
lowered Ford Motor Credit Company's long-term debt rating to BB(low) from
BB, and confirmed Ford Credit's short-term debt rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from
'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from
'BB/RR2'.  The Rating Outlook remains Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related
entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior unsecured
ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating
of Ford Motor Credit Company to Ba3 from Ba2.  The Speculative Grade
Liquidity rating of Ford has been confirmed at SGL-1, indicating very good
liquidity over the coming 12-month period.  The outlook for the ratings is
negative.


GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase
------------------------------------------------------------
The European Commission has granted clearance under the EU Merger Regulation
to the acquisition of sole control of General Motors Acceptance Corporation
by Cerberus Group.

Cerberus is active in investment in real property and personal property
worldwide and is ultimately controlled by Stephen A. Feinberg.  GMAC is
active in the EEA in vehicle related activities such as loan and leasing
finance, reinsurance, second hand vehicle sales and fleet management
services and in financial services and employee relocation services.

The Commission examined the operation under its simplified merger review
procedure.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world including Mexico and Brazil in Latin America.  It
has manufacturing operations in 32 countries and its vehicles are sold in
200 countries.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 11, 2006, Standard &
Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term cor
porate credit ratings on General Motors Corp. would remain on CreditWatch
with negative implications, where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond
Rating Service downgraded the long-term debt ratings of General Motors Corp.
and General Motors of Canada Ltd. to B.  The commercial paper ratings of
both companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General
Motor's new US$4.48 billion senior secured bank facility.  The 'RR1' is
based on the collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of up to US$4.5
billion being proposed by General Motors Corp., affirmed the company's B3
corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.


GENERAL MOTORS: Faces Likely Proxy Battle with Kirk Kerkorian
-------------------------------------------------------------
General Motors Corp. has beefed up its ranks of legal and financial advisors
in preparation for a possible takeover by investor Kirk Kerkorian, Bernard
Simon writes for the Financial Times.

Analysts interviewed by FT say that Mr. Kerkorian could launch a proxy
battle to replace some of GM's directors and exert greater control over the
automaker.

Mr. Kerkorian however, has kept silent about his plans for GM after a
proposed merger with Renault-Nissan, which he had supported collapsed last
month.  Jerome York, Mr. Kerkorian's representative to GM, resigned from the
automaker's board after talks with Renault-Nissan ended.

GM had refused to pursue an alliance with Renault-Nissan, saying a
partnership with the Franco-Japanese carmaker would substantially
disadvantage GM shareholders.  GM stated that it will focus its energies on
its turnaround program and claimed that it is making real progress in its
efforts.

Mr. Simon further reports that GM's board has approved certain changes in
the Company's bylaws intended to curb outsiders from removing existing
directors and putting issues to a shareholder vote.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including Mexico, and its vehicles are sold in 200 countries.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 11, 2006, Standard &
Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term
corporate credit ratings on General Motors Corp. would remain on CreditWatch
with negative implications, where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond
Rating Service downgraded the long-term debt ratings of General Motors Corp.
and General Motors of Canada Limited to B.  The commercial paper ratings of
both companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General
Motor's new US$4.48 billion senior secured bank facility.  The 'RR1' is
based on the collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of up to US$4.5
billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.


INDUSTRIAS UNIDAS: Moody's Assigns B3 Rating on Sr. Unsec. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Industrias Unidas, S.A. de
C.V.'s proposed guaranteed senior unsecured notes due 2016. Moody's also
assigned a B2 corporate family rating to the company.  The outlook is
stable.

Proceeds from the proposed notes will be used to repay existing peso- and
U.S. dollar-denominated debt at the Mexican entities and eliminate
substantially all encumbrances at Industrias Unidas (HoldCo) and the
guarantor entities.  The transaction will lengthen Industrias Unidas' debt
maturity profile and reduce liquidity pressure.  Certain subsidiaries of the
issuer will guarantee the proposed notes.  For the six months ended June 30,
2006, the guarantor subsidiaries accounted for 46% of consolidated revenues,
39% of total assets and 7% of total debt.

The ratings reflect Industrias Unidas' high sales volatility associated with
its commodity copper based products, low operating margins and return on
assets, negative free cash flow and weak liquidity.  The ratings are
supported, however, by Industrias Unidas' product diversification, strong
market positions in Mexico and the U.S, some capital spending flexibility,
and moderate consolidated leverage at 2.4 times adjusted debt to EBITDA for
the LTM June 2006.  In addition, the company's revenue concentration in U.S.
dollars (about 75% of sales) provides a natural hedge for the U.S.
dollar-denominated debt.

In the last three years, Industrias Unidas' revenues benefited from a strong
performance in the construction business in Mexico and the U.S. However,
stiff competitive pressures from new entrants in both markets in the first
half 2005 forced Industrias Unidas' to protect its market share through
lower prices, with negative consequences for the group's operating margins
and credit protection metrics.  In 2005, the EBIT margin fell to just above
4%; adjusted EBITDA to interest expenses fell to 1.9 times; and consolidated
Adjusted Debt to EBITDA reached 4.1 times.  In addition, the increased
working capital needs, a consequence of higher copper prices, negatively
impacted the already weak free cash flow. Heavy capital expenditures in 2004
in the amount of approximately US$75 million (or approximately 2 times
depreciation expense) pressured the company's liquidity position just when
the adverse market conditions hit in 2005 and, by the end of 2005, cash on
hand was a fraction of short term debt.  Starting in second half 2005,
market conditions improved and Industrias Unidas' revenues and margins
recovered.  During the beginning of 2006, the group extended the maturity of
some major debt at the U.S. subsidiaries and is now issuing the notes to
further strengthen its financial flexibility.

The growing proportion of revenues from both the Wire & Cable segment and
the tubing segment has reduced Industrias Unidas' sales concentration from
its original core product, watt-hour meters.  In the first 6 months of 2006,
despite its high EBITDA margins in the 25% range, the watt-hour meter
segment contributed only 6.5% of total EBITDA, down from 25% in 2004.
Industrias Unidas' dependence on the cyclical construction sector, however,
remains high since the more diversified product base is still mostly focused
toward the construction industry.

The proposed notes B3 rating was notched down from the B2 corporate family
rating due to their subordination to secured debt (primarily at the
non-guarantor U.S. subsidiaries) and to its subsidiaries' debt.  Pro forma
for the transaction, consolidated secured debt will be about US$298 million,
most of it at the non-guarantor U.S. subsidiaries (US$289 million).

The stable outlook reflects Industrias Unidas' improved debt maturity
profile after the closing of the transaction as well as Moody's expectation
that the group will use excess cash to build its cash position and thus
partially redeem the notes starting in 2011, as per the proposed notes'
terms and conditions.  The stable outlook also considers that, after 2006's
strong revenues, which Moody's expects will reach over MXN28 billion, 2007
may experience slower growth with consequent impact on operating margins and
contraction in working capital needs.  Moody's expects however that
liquidity should not be a concern in 2007.

An upgrade would be merited if adjusted debt/EBITDA is reduced to below 2
times and EBIT margin improves to above 10% on a sustainable basis, coupled
with positive free cash flow generation. A downgrade would occur, however,
if EBITDA/interest expenses were to drop below 2.5 times with commensurate
pressures on liquidity.

Industrias Unidas is one of Mexico's largest diversified industrial groups,
manufacturing a wide range of copper-based and electrical products for the
housing and electrical power sectors mainly in Mexico and the U.S.  The
company transforms over 260,000 of metric tons of copper per year.  During
LTM June 2006, the company's revenues reached over US$2 billion.


INDUSTRIAS UNIDAS: S&P Rates US$200MM Sr. Unsecured Notes at B
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to Industrias
Unidas S.A. de C.V.'s proposed US$200 million senior unsecured notes due
2016.  At the same time, Standard & Poor's affirmed its 'B' long-term
corporate credit rating on Industrias Unidas.

Upon the successful closing of the proposed issue we would revise the
outlook on Industrias Unidas to stable from negative.  The proposed notes
issue enjoys the guarantee of Industrias Unidas' Mexican operations, which
allows for no structural subordination.

Proceeds from the notes will be used to refinance existing debt.  "In our
opinion, this will strengthen the company's liquidity, as it reduces
refinancing risk, provides the issuer with a manageable maturity schedule
and a better asset liability match, and eliminates liens on its Mexican
assets," said Standard & Poor's credit analyst Jose Coballasi.

The ratings on Industria Unidas reflect the inherent cyclicality of the
construction industry, commodity price volatility, competitive pressure on
core products and markets, low operational margins, and high leverage
relative to its operating cash flow generation.  These factors are partially
offset by the company's leading market positions in Mexico and the U.S.,
product mix, and some geographic diversification in the manufacturing and
distribution of copper tubing, copper-alloy products, valves, controls,
watt-hour meters, wire and cable, and electrical devices.  The ratings are
also predicated on the expectation that Industrias Unidas will continue to
follow a disciplined commercial strategy along with its efforts to increase
its offering of value added products.

Industrias Unidas is one of Mexico's largest diversified industrial
companies, offering a large variety of products through integrated
manufacturing and distribution operations located principally in Mexico and
the U.S.  The company's operations are conducted by seven principal business
groups:

   -- copper tubing,
   -- wire and cable,
   -- copper alloys,
   -- electrical products,
   -- watt-hour meters,
   -- valves and controls, and
   -- diversified assets group.

The negative outlook reflects our concerns regarding the group's liquidity,
particularly our continued concerns regarding the group's refinancing risk
and its weak operating cash-flow generation.

Upon the closing of the proposed transaction we would revise the outlook to
stable, which reflects our expectations that a manageable debt maturity
schedule, coupled with its commitment to maintain a disciplined commercial
strategy, should allow Industrias Unidas to continue to meet its debt
maturities as they come due, strengthen its cash balance and increase its
credit line availability.


MERIDIAN AUTOMOTIVE: Gets Two Tax Breaks from Ionia City Council
----------------------------------------------------------------
The Ionia city council issued two exemption certificates to
Meridian Automotive Systems, Inc., Gary A. Schlueter of Ionia
Sentinel-Standard reports.  The certificates are an Industrial
Facilities Exemption Certificate and a personal property tax
exemption certificate that will run from Dec. 31, 2006,
through 2018.

The Industrial Facilities Exemption provides Meridian with a 50%
tax savings on a planned purchase of $1,352,000 worth of new
equipment for its buffing, welding, and plating lines.

"Advancing the company these exemptions will help ensure Meridian stays in
Ionia," Mayor Dan Balice told the Sentinel-Standard.  "By issuing this IFT,
we will help preserve what is a very important employer here in town.  In
addition, its cost to the city is only around $2,000."

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 $530 million in total assets
and approximately $815 million in
total liabilities.  (Meridian Bankruptcy News, Issue No. 41;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


OPEN TEXT: Mulls Streamlining of Employees & Facilities
-------------------------------------------------------
Open Text Corp. will release financial results for its first quarter of
fiscal 2007 on Nov. 6, 2006, at approximately 4:00 p.m. Easter Time.

For the quarter ended Sept. 30, 2006, the Company expects to report revenue
of between US$99 million and US$101 million.

As reported in the Troubled Company Reporter on Oct. 17, 2006
Open Text, through its wholly owned subsidiary 6575064 Canada
Inc., acquired all of the issued and outstanding common shares of
Hummingbird at a cash price of US$27.85 per common share which, together
with the 764,850 common shares of Hummingbird owned by Open Text prior to
the transaction, represent all of the issued and outstanding shares of
Hummingbird.  The transaction is valued at approximately US$489 million.

John Shackleton, president and chief executive officer, commented on the
Company's restructuring.

"As part of the integration of Hummingbird into Open Text, we are examining
global operations to ensure we leverage the best assets of both companies,"
Mr. Shackleton said.  "Streamlining employees and facilities of both
Hummingbird and Open Text is necessary to fully capitalize on the economies
of scale and synergies that are available from this integration."

Headquartered in Waterloo, Ontario, Open Text Corp.
(NASDAQ:OTEX, TSX:OTC) -- http://www.opentext.com/-- provides Enterprise
Content Management solutions that bring together people, processes and
information in global organizations.  The company supports approximately 20
million seats across 13,000 deployments in 114 countries and 12 languages
worldwide.  It has a field office in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 18, 2006, Moody's
Investors Service assigns a first-time Ba3 rating to the senior secured
facilities and B1 rating to the corporate family of Open Text Corp., a
leading provider of enterprise content management software.  The ratings
reflect both the overall probability of default of the company, to which
Moody's assigns a PDR of B2, and a loss-given-default of LGD-2 for the
senior secured facilities.  Moody's also assigned a SGL-1 speculative grade
liquidity rating, reflecting very good liquidity.  Moody's said the ratings
outlook is stable.




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


CHIQUITA BRANDS: Fresh Express Improves Retail Trading Thru TR3
---------------------------------------------------------------
Fresh Express, the packaged-salad division of Chiquita Brands International,
Inc., is doing better using TR3 Solution's On-Demand RPM, gaining better
insight into the data its Radio Frequency Identification or RFID system
generated, RFID Journal reports.

As reported in the Troubled Company Reporter-Latin America on Oct. 13, 2006,
Fresh Express selected TR3 Solution's On-Demand RPM to improve the
performance of its retail trading partner relationships.  TR3 Solution
helped Fresh Express leverage the visibility provided by RFID tagging to
track product movement and ensure that only high quality product is on
retail store shelves.  Fresh Express used TR3's On-Demand solution for
promotions, sales and supply chain visibility, plus TR3's Perishables Module
that adds capabilities for products sold with expiration dates.  TR3
On-Demand processes the information read from RFID tags at several major
retailers, including Wal-Mart, and alerts Fresh Express to key issues like
supply chain bottlenecks and to better execute recalls.

The RPM service delivers through a hosted Web site information on how long
products take to move through the supply chain, and where bottlenecks may be
keeping goods from reaching store shelves before they are expired, RFID
Journal states.

                          About TR3

TR3 Solutions, a leading provider of RFID solutions to the CPG and retail
markets, provides solutions and consulting to help CPG manufacturers realize
tangible business value from their RFID initiatives and investments.

                     About Fresh Express

Fresh Express, a division of Chiquita Brands International, Inc., has been a
leader in fresh foods for more than 80 years and is dedicated to providing
consumers with healthy, convenient ready-to-eat salads, vegetables and
fruits.  Over 20 million consumers enjoy Fresh Express salads and greens
every week.

                       About Chiquita

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh
food products including bananas and nutritious blends of green salads.  The
company markets its products under the Chiquita(R) and Fresh Express(R)
premium brands and other related trademarks.  Chiquita employs approximately
25,000 people operating in more than 70 countries worldwide including
Panama.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 3, 2006,
Moody's Investors Service affirmed all ratings for Chiquita
Brands L.L.C. (senior secured at Ba3), as well as for its parent
Chiquita Brands International, Inc. (corporate family rating at
B2), but changed the outlook to negative from stable.  This action followed
the company's announcement that its operating performance continues to be
negatively impacted by lower pricing in key European and trading markets, as
well as excess fruit supply.


SOLO CUP: Incurs US$299 Million Net Loss in 2006 Second Quarter
---------------------------------------------------------------
Solo Cup Company filed its financial statements for the second quarter ended
July 2, 2006, with the U.S. Securities and Exchange Commission on Oct. 16,
2006.

For the second quarter ended July 2, 2006, the Company reported a
US$299,364,000 net loss, compared with a US$2,787,000 net loss for the
quarter ended July 3, 2005.

Net sales increased US$23.4 million, or 3.6%, for the 13 weeks ended July 2,
2006, compared with the prior year period.  The increase in net sales
reflected a 6.5% increase in average realized sales price partially offset
by a 2.9% decrease in sales volume compared with the 13 weeks ended July 3,
2005.

The increase in average realized sales price reflects price increases
implemented during the second half of 2005 and the first half of 2006 in
response to higher raw material costs.  The volume decrease primarily
reflects pricing pressure in the marketplace and, to a lesser extent, the
company's decision to eliminate certain less profitable business.

Cost of goods sold increased US$13.5 million, or 2.4%, for the 13 weeks
ended July 2, 2006, compared with the prior year period.  The increase in
cost of goods sold for the 13 weeks ended July 2, 2006, included an
additional US$9.8 million reserve for spare parts and inventory obsolescence
due to changes in estimation methodology related to the valuation of these
assets.  These increases in cost of goods sold were offset by US$22.1
million of curtailment gains related to negotiated changes in postretirement
benefits for certain active employees.  The remaining increase in cost of
goods sold was a result of increases in raw material and transportation
costs.  The company continues to experience fluctuations in raw material
prices.

For the 13 weeks ended July 2, 2006, gross profit increased
US$9.8 million compared with the prior year period.  As a percentage of net
sales, gross profit was 13.7% in the second quarter of 2006 versus 12.7% in
the second quarter of 2005.

Excluding the additional US$9.8 million reserve for spare parts and
inventory obsolescence and US$22.1 million in curtailment gains related to
postretirement benefits, the gross profit percentage would have been 11.9%
for the 13 weeks ended
July 2, 2006.

Selling, general, and administrative expenses increased
US$7.6 million for the 13 weeks ended July 2, 2006, compared with the 13
weeks ended July 3, 2005.  The increase was primarily driven by severance
related to its reduction-in-force announced in April 2006 as well as the
departure of certain senior executives.  As a percentage of net sales,
selling, general, and administrative expenses were 11.0% in the second
quarter of 2006 versus 10.2% in the second quarter of 2005.

Impairment of goodwill for the 13 weeks ended July 2, 2006, was US$228.5
million.

For the 13 weeks ended July 2, 2006, interest expense, net, increased US$3.8
million compared with the prior year period.  This increase is primarily
attributable to amounts outstanding under its Second Lien Facility entered
into in March 2006 and higher outstanding balances under its domestic
revolving credit facility.  To a lesser extent, the increase is due to
higher interest rates compared with the prior year period.

For the 13 weeks ended July 2, 2006, foreign currency exchange (gain) loss,
net, was a gain of US$2.7 million compared with a loss of US$2 million for
the 13 weeks ended July 3, 2005.  This change is primarily attributed to
currency fluctuations in the United Kingdom pound sterling denominated
inter-company debt.

For the 13 weeks ended July 2, 2006, the income tax provision of US$68.3
million included a US$105.0 million income tax charge to establish a
valuation allowance for certain deferred tax assets partially offset by the
tax benefit generated from domestic operations.

During the 13 weeks ended July 2, 2006, the company prepared an updated
analysis of the recoverability of its deferred tax assets considering recent
developments in its operations and financial condition, including, among
other things, its continued net losses, and the impact of raw material and
petroleum cost increases on its cost of goods sold.

As a result of these events, and considering the level of historical taxable
income and projections for future taxable income over the periods in which
the deferred tax assets are deductible, the management concluded that it is
more likely than not that it will not fully realize the benefits of its
existing deductible differences.

Accordingly, the company recorded an additional provision for income taxes
during the second fiscal quarter of 2006 to increase the valuation allowance
for its deferred tax assets by
US$105.0 million.

At July 2, 2006, the Company's balance sheet showed US$1,619,270,000 in
total assets, US$1,550,053,000 in total liabilities, and US$69,217,000 in
total stockholders' equity.

Full-text copies of the Company's second quarter financials are available
for free at http://ResearchArchives.com/t/s?13cd

                       About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The Company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 20, 2006, Moody's
Investors Service is continuing the review for possible downgrade of Solo
Cup Company's four debt ratings.  Although Solo Cup has met its obligation
to file financial statements and has completed its previously announced
review of accounting issues, Moody's continues to have concerns regarding
liquidity and ongoing business strategy.


SOLO CUP: Ends Review of Accounting Issues & Restates 2 Reports
---------------------------------------------------------------
Solo Cup Company has completed its review of accounting issues and, based on
that review, has restated some of its previously issued consolidated
financial statements.

The company filed with the Securities and Exchange Commission on Oct. 16,
2006, two restated financials:

   -- for the year ended Jan. 1, 2006, and
   -- for the first quarter ended April 2, 2006.

The company has also filed its Form 10-Q for the second quarter ended July
2, 2006, with the SEC, the filing of which had been delayed pending
completion of the review.

The filing of the second quarter 2006 Form 10-Q has satisfied the terms of
the indenture for the company's 8.5% Senior Subordinated Notes due 2014.  In
addition, on Oct. 13, 2006, the company concluded its previously announced
discussions with its lenders under its credit facilities and obtained a
waiver and amendment through Jan. 2, 2007, with regard to those facilities.

The company's second-quarter results included:

   -- net sales of US$670.3 million, an increase of US$23.4
      million, or 3.6%, from the prior-year quarter, as
      restated;

   -- gross profit of US$92.0 million, up 12% from the prior-
      year quarter, as restated; and

   -- a net loss of US$299.4 million, primarily reflecting a
      US$228.5 million non-cash charge for the impairment of the
      company's goodwill and a US$105.0 million non-cash charge
      to income taxes to establish a valuation allowance for its
      deferred tax assets.

"Two months to the day since we announced the delay in the filing of our
second-quarter results and the launch of our internal review, we are pleased
to report that we have completed the review, that we have filed our restated
consolidated financial statements and our consolidated financial statements
for the second quarter of 2006, and that we can now focus 100% of our
attention on running the company and building value for our customers, other
business partners, investors and employees," Robert M. Korzenski, chief
executive officer, said.

"The restatement work was a rigorous and intense process that revealed
certain material weaknesses in our financial controls and we are taking
decisive steps to address those issues," Mr. Korzenski said.

"Importantly, this work renewed our confidence in the fundamentals of our
business, reaffirmed the compelling strategic, operational and financial
rationale of the Solo Cup/Sweetheart merger, and highlighted the quality and
dedication of our employee team.

"The restatement of our consolidated financial statements has impacted our
reported financial results but the process we have gone through positions us
well for long-term strength and success," Mr. Korzenski concluded.

Full-text copies of the financial statements are available for free at:

   For the year ended
   Jan. 1, 2006             http://ResearchArchives.com/t/s?13cc

   For the first quarter
   ended April 2, 2006      http://ResearchArchives.com/t/s?13cb

   For the second quarter
   ended July 2, 2006       http://ResearchArchives.com/t/s?13cd

                        About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The Company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 20, 2006, Moody's
Investors Service is continuing the review for possible downgrade of Solo
Cup Company's four debt ratings.  Although Solo Cup has met its obligation
to file financial statements and has completed its previously announced
review of accounting issues, Moody's continues to have concerns regarding
liquidity and ongoing business strategy.


SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered all its ratings on Solo Cup Co.
by two notches, including its corporate credit rating to 'CCC+', and removed
them from Credit Watch where they had been placed with negative implications
on Aug. 18, 2006.  The outlook is negative.

"The downgrade was prompted by significantly weaker-than-expected earnings,
cash flow, and liquidity as well as concerns about the company's ability to
absorb additional raw material cost volatility and to obtain further
financial covenant relief or restructure its debt," said Standard & Poor's
credit analyst Cynthia Werneth.  "Based on these factors, we now believe
that meaningful operating and capital structure improvements will have to be
achieved to reduce the risk of a default within the next year."

Although detailed information on third-quarter performance is not yet
available, on Oct. 16, 2006, Solo's liquidity was substantially unchanged
from June 30, 2006, with cash and unused bank line availability totaling
only US$59 million.  Liquidity is unexpectedly low for this time of year,
particularly given that the company obtained US$80 million in new
second-lien debt in March 2006.  This leads S&P to conclude that the company
generated little if any operating cash flow in the third quarter, which is
usually a seasonally strong period, after having used about US$100 million
of cash during the first half of the year.  Because of its limited
liquidity, S&P is concerned about Solo's ability to continue to shoulder its
heavy debt burden and to absorb any future raw material cost increases, any
slowdown in demand, or other adverse developments.  Also, the company faces
higher interest margin on its bank credit facility in conjunction with a
waiver of financial covenants through year-end and will incur additional
costs for an independent review of its supply chain.

Solo may also face near-term refinancing risk if it requires and is unable
to obtain financial covenant relief after expiration of the current waiver.
S&P is are particularly concerned in view of Solo's very weak financial
profile, its repeated requests for bank loan waivers and amendments during
the past year, and its recent addition of a tranche of second-lien debt.

The company is very highly leveraged.  As of June 30, 2006, total debt,
adjusted to include about US$200 million of capitalized operating leases and
unfunded postretirement obligations on a tax-effected basis, was nearly
US$1.4 billion.




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


* PERU: IMF Focuses on Policy Options to Strengthen Economy
-----------------------------------------------------------
An IMF mission, led by Gilbert Terrier, has been in Lima to conduct the 2006
Article IV Consultation and discuss the new government's economic program
that the authorities have requested to be supported by a Stand-By
Arrangement from the Fund.

The mission held extensive discussions with government and central bank
officials, and a broad spectrum of representatives from the business
community, financial institutions, academia, and civil society.  These
discussions focused on the policy options for Peru to entrench its strong
economic performance of the past several years and to give assurance that
its benefits reach all segments of the population-key objectives of the
government.  The IMF mission has been impressed by the strong consensus in
society on the need for Peru to take advantage of these favorable economic
conditions to consolidate macroeconomic policies and pursue reforms that
would enhance medium-term growth prospects and decisively reduce still high
poverty levels.

The IMF mission supports the key elements of the authorities' economic
program for the period 2007-08.  In the coming weeks, the authorities and
Fund staff will finish specifying the remaining elements of the economic
program.  Both sides are working toward a timetable for presenting a
Fund-supported program to the IMF Executive Board around the end of the
year."

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date

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




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


ADELPHIA: Court Approves Second Disclosure Statement Supplement
---------------------------------------------------------------
The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for the Southern
District of New York approved the Second Disclosure Statement Supplement of
Adelphia Communications Corp. and its debtor-affiliates, finding that it
contains "adequate information" within the meaning of Section 1125 of the
Bankruptcy Code.

The ACOM Debtors delivered to the Court further revised drafts of the Fifth
Amended Plan of Reorganization and the related Second Disclosure Statement
Supplement, including complete exhibits of the position statements of
certain creditors and creditor groups.

Judge Gerber overruled the disclosure statement objections to the extent not
resolved on the record of the Disclosure Statement Hearings and has set Oct.
18, 2006, as the record date with respect to all holders of claims and
equity interests in the ACOM Debtors entitled to vote on the Plan.

With respect to holders of Bank Claims entitled to vote on the Plan, Judge
Gerber directed the administrative agent for each credit facility to provide
the Balloting Agent a written list of the names of the participants in its
particular syndicate by Class, including that participant's contact
information and voting amount as of the October 18, 2006.

All ballots and master ballots must be delivered to the Balloting Agent by
Nov. 27, 2006, at 4:00 p.m., prevailing New York Time.

Except as ordered by the Court, solely for purposes of voting to accept or
reject the Plan and not for the purpose of the allowance or distribution,
each Existing Securities Laws Claim classified in:

    (a) Class ACC 8 -- Preferred Stock Interests, or
    (b) Class ACC 9 - Common Stock Interests,

for which a proof of claim has been timely filed will be allowed for voting
purposes in the amount of one share of the security corresponding to that
Existing Securities Laws Claim.

Objections to the Plan must be filed by Nov. 24, 2006, at
4:00 p.m. (prevailing New York Time).

The Court will convene a hearing on Dec. 7, 2006, at 9:45 a.m.,
(prevailing New York Time) to consider certain issues in connection with
confirmation of the Plan.

A full-text copy of the Modified Draft Fifth Amended Plan dated
Oct. 16, 2006, may be viewed at no charge at:

              http://ResearchArchives.com/t/s?13bd

A full-text copy of the revised Second Disclosure Statement dated Oct. 16,
2006, may be viewed at no charge at:

              http://ResearchArchives.com/t/s?13be

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates,
collectively known as Rigas Manged Entities, are entities that were
previously held or controlled by members of the Rigas family.  In March
2006, the rights and titles to these entities were transferred to certain
subsidiaries of Adelphia Cablevision, LLC.  The RME Debtors filed for
chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases. (Adelphia
Bankruptcy News, Issue No. 153; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADELPHIA COMMS: Verizon Wants US$1,101,822 Admin. Claim Allowed
---------------------------------------------------------------
Certain of the operating telephone company subsidiaries of Verizon
Communications Inc. ask the U.S. Bankruptcy Court for the Southern District
of New York to allow them a US$1,101,822 administrative expense claim for
unpaid services they provided to Adelphia Communications Corp. and its
Debtor affiliates, including Century Communications Corp.

Verizon filed various proofs of claim in the ACOM Debtors' bankruptcy cases
totaling in excess of US$15,100,000 for the telecommunications services,
products and facilities that Verizon provided to the ACOM Debtors prior to
their filing for chapter 11 protection.

In 2004, the ACOM Debtors and Verizon entered into a stipulation resolving
the Claims, as well as claims for postpetition payables the parties owed to
the other.  The Court approved the Stipulation in December 2004.

The Stipulation specifically reserved Verizon's rights to assert claims
against the ACOM Debtors for charges for Verizon's services provided on or
after the date of filing for chapter 11 protection of the ACOM Debtor's and
billed in the ordinary course on or after April 1, 2004.

During the course of the ACOM Debtors' Chapter 11 cases, Verizon continued
providing services and facilities to the ACOM Debtors.

Verizon asserts that the ACOM Debtors still owe it US$1,101,822,
representing the net amount of outstanding postpetition charges for the
postpetition Verizon services billed in the ordinary course on or after
April 1, 2004, to July 31, 2006 -- the Effective Date of the Third Modified
Fourth Amended Joint Plan of Reorganization for the Century-TCI Debtors and
the Parnassos Debtors.

Philip D. Anker, Esq., at Wilmer Cutler Pickering Hale and Dorr LLP, in New
York, maintains that the postpetition services and facilities rendered by
Verizon to the ACOM Debtors gave rise to administrative expense priority
claims allowable under Section 503(b)(1)(A) of the Bankruptcy Code.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates,
collectively known as Rigas Manged Entities, are entities that were
previously held or controlled by members of the Rigas family.  In March
2006, the rights and titles to these entities were transferred to certain
subsidiaries of Adelphia Cablevision, LLC.  The RME Debtors filed for
chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases. (Adelphia
Bankruptcy News, Issue No. 149; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Earns US$1.5 Million in September 2006
---------------------------------------------------------

                       Musicland Holding Corp.
                      Consolidated Balance Sheet
                       As of September 30, 2006

ASSETS
Current Assets
   Cash                                           US$31,482,000
   Inventories                                                0
   Other
      Amounts due from TransWorld                     6,279,000
      Receivables from Sub-leases                       637,000
      Amounts due from GOB sales                      1,788,000
      Miscellaneous CC                                   24,000
      Vendors Credit due from services                2,691,000
                                                  -------------
      Total                                          42,901,000
                                                  -------------

Fixed Assets                                                  0
Other assets
   Transport Logistic deposit                           550,000
   Utility and Tax Deposits                              83,000
                                                  -------------
      TOTAL ASSETS                                US$43,534,000
                                                  =============

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                      $0
      Due to Deluxe                                           0
      A/P                                               121,000
   Other accrued liabilities
      Logistic Accrual                                  415,000
      Deferred Income                                         0
      Insurance Reserve                               3,380,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                                55,000
         Accrued Severance                              161,000
         Accrued Employer Payroll Taxes                  15,000
         Accrued Benefits                               251,000
      Sales Tax                                         178,000
      5% Admin. Fee on Wachovia L/C                     250,000
      FY06 Tax Return & Employee Benefit
         Audit Services                                  62,000
      Payroll/W2 & 1099 System                           46,000
      Miscellaneous                                      29,000
   Gift Card liabilities                                      0
                                                  -------------
      Total                                           4,842,000
                                                  -------------

DIP financing                                                 0
Other LT Liabilities                                          0
Liabilities subject to compromise                   330,330,000
Shareholders' deficit                              (291,759,000)
                                                  -------------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                       US$43,534,000
                                                  =============



                       Musicland Holding Corp.
                       Statement of Operations
                For the Month Ended September 30, 2006


Merchandise revenue                                           -
Non-merchandise revenue                                       -
                                                  -------------
Net sales                                                    -

Cost of good sold                                             -
                                                  -------------
   Gross Profit                                               -

Store operating expenses
   Payroll                                           US$188,000
   Occupancy                                                  0
   Other                                                 85,000
                                                  -------------
      Store expenses                                          0
                                                  -------------
General & administrative                                273,000
                                                  -------------
EBITDA (Loss)                                          (273,000)
                                                  -------------

Hilco 340 Store GOB                                           0
Chapter 11 & related charges                             77,000
Sale to Transworld                                            0
Hilco 65                                                      0
Media Play Wind down                                          0
Depreciation & Amortization                                   0
                                                  -------------
   Operating income (Loss)                             (196,000)

Interest income (expense)                                50,000
Other non-operating charges                           1,652,000
                                                  -------------
   Earnings before Taxes                              1,506,000
                                                  -------------
Income tax                                                    0
                                                  -------------
   Net earnings (Loss)                             US$1,506,000
                                                  =============


                       Musicland Holding Corp.
                       Statements of Cash Flow
               For the Month Ended September 30, 2006

Operating activities
   Net earnings (Loss)                             US$1,506,000
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:
         Loss on utility deposits write off                   0
   Changes in operating assets & liabilities:
      Inventory                                               0
      Other current assets                            6,992,000
      Other Non-current Assets                          (10,000)
      Accounts payable                                   (1,000)
      Other accrued liabilities                      (1,655,000)
      Liabilities subject to compromise                       0
                                                  -------------
   Net cash provided by (used in)
      operating activities                            6,832,000
                                                  -------------

Investing activities
   Change in other long term asset/liabilities                -
   Retirement of fixed assets                                 -
                                                  -------------
   Net cash provided by (used in)
      investing activities                                    -

Financing activities
   Distribution to Secured Creditors                          0
                                                  -------------
Increase(decrease) in cash                            6,832,000
                                                  -------------
   Cash at the beginning of Period                   24,651,000
                                                  -------------
   Cash at the end of Period                      US$31,483,000
                                                  =============

Headquartered in New York, New York, Musicland Holding Corp., is a specialty
retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than
US$100 million in assets and debts.  (Musicland Bankruptcy News,
Issue No. 20; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


* URUGUAY: S&P Affirms 'B+' Long-Term Ratings on Reopened Bonds
---------------------------------------------------------------
Standard & Poor's Ratings Service affirmed its 'B+' long-term sovereign
credit rating on two bonds issued by the Oriental Republic of Uruguay
(B+/Stable/B sovereign credit ratings) that were recently reopened as part
of an operation of liability management.

According to Standard & Poor's credit analyst Sebastian Briozzo, the Sept.
28, 2006, upgrade of the long-term foreign and local currency sovereign
credit ratings on Uruguay to 'B+' from 'B' was based upon the continuing
decline in the level of general government debt and the consolidation of the
country's stronger macroeconomic framework.  "The upgrade was also supported
by the impact of several liability management operations instrumented until
September that improved the government's debt maturity profile," said Mr.
Briozzo.  "This new debt swap is seen as a measure going on the same
direction," he added."

The new issuances correspond to the reopening of an additional US$500
million in U.S. dollar-denominated bond that matures on March 21, 2036, and
to an additional US$300 million (in equivalent U.S. dollars) in a bond
denominated in inflation-index units maturing on Sept. 14, 2018 (the latter
bond is payable in U.S. dollars).  The reopening of these two bonds were
part of a more comprehensive liability management operation of up to US$2.2
billion; the purpose of which is to continue the smoothing out of Uruguay's
debt maturity profile while taking advantage of favorable international
conditions in the capital market.

"The main objectives are to extend the average duration of the bonds,
consolidate the outstanding instruments into fewer bonds, and continue to
increase the contribution of inflation-index securities denominated in local
currency into Uruguay's debt structure," Mr. Briozzo said.

Mr. Briozzo explained that the combination of a strong economic recovery,
appreciation of the Uruguayan peso, and an improved fiscal position has
underpinned the decline in debt, and that increased fiscal flexibility over
the medium term is consistent with a 'B+' rating.

"While the stable outlook reflects Standard & Poor's expectation that the
ongoing process of consolidating Uruguay's improved macroeconomic framework
will continue to be supported by a strong commitment from the current
administration, the reduction in Uruguay's credit vulnerabilities will occur
only gradually," Mr. Briozzo noted.  "In this regard, advances in the
economic reform process now underway, tax reform in particular, will
certainly enhance the positive implications on the ratings", he concluded.




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


ELECTRICIDAD DE CARACAS: Government Helps Improve Power Services
----------------------------------------------------------------
Julian Nebreda, the president of Electricidad de Caracas, told Business News
Americas that the Venezuelan government is working on improving power
services due to recent power failures.

According to the local media, Petroleos de Venezuela has also experienced
power problems at some of its operations.

BNamericas relates that Opsis, the national grid operator said earlier this
month that Venezuela suffered about 67 major power failures through Oct. 10,
2006, compared with 72 in October 2005.

The Venezuelan government blames the problems on increased power demand.

"We believe the government is taking the appropriate measures.  For
instance, there are important investments in substations," Mr. Nebreda told
BNamericas.

Electricidad de Caracas is a vertically integrated utility in Venezuela,
operating in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area.  It is the largest
private electric utility
in the country and is owned by US-based AES Corp.
(B+/Positive/--).  Electricidad de Caracas reported net profits of US$20.6
million from January to March, versus net losses of US$26.9 the same period
in 2005.

                        *    *    *

On Feb 9, 2006, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on C.A. La Electricidad de
Caracas and its 'B' rating on Electricidad de Caracas Finance B.V.'s US$260
million senior unsecured notes.  S&P said the outlook is stable.

On Feb. 3, 2006, S&P raised the long-term local and foreign currency
sovereign credit ratings on the Bolivarian Republic of Venezuela to 'BB-'
from 'B+'.  The decision to raise the ratings on Venezuela was supported by
the continued sharp improvements in Venezuela's external indicators, which
are attributable to a large current account surplus, a high level of
international reserves, and lower external debt in addition to buoyant
economic growth and the potential buyback of external debt.


UNIVERSAL COMPRESSION: Moody's Rates US$500MM Facility at Ba1
-------------------------------------------------------------
Moody's Investors Service assigned a Ba1, LGD 3 (36%) rating to Universal
Compression, Inc.'s US$500 million senior secured bank credit facility.  At
the same time, Moody's affirmed Universal's Ba2 Corporate Family Rating, its
Ba2 Probability of Default Rating and its B1, LGD5 (88%) ratings on its
US$175 million 7-1/4% Senior Notes.  The outlook remains stable.

Universal Compression, Inc. is a wholly owned subsidiary of Universal
Compression Holdings, Inc. Proceeds from the new credit facility are being
used to refinance Universal's existing senior secured revolver and senior
secured term loan.

Moody's will withdraw the ratings on the existing secured credit facilities
once they have been repaid.

Pete Speer, Moody's Vice President/Senior Analyst commented, "While Moody's
has affirmed the stable outlook, the recent IPO of Universal Compression
Partners creates uncertainties regarding the future capital structure and
leverage profile of the combined enterprise which limits Universal's
positive credit momentum and could pressure the ratings." Universal believes
that the MLP structure of Universal Compression Partners, L.P. or UCLP
provides a lower cost of capital that could be utilized to accelerate growth
of the domestic compression business.  Moody's observes that UCLP adds the
MLP constituency to the mix, an equity base that requires substantial and
growing distributions. Universal intends to drop down its U.S. compression
business into UCLP over time, which provides UCLP with a built-in growth
profile.  However, the compression business is untested in the MLP model and
established MLP's are showing evidence of the strain of simultaneously
growing their distributions, pursuing organic and acquisition growth, and
maintaining their credit profile.

The ratings could be pressured if the company incurs substantial leverage at
UCLP in its drop down transactions without an appropriate reduction of
leverage at Universal in order to maintain a reasonable combined leverage
profile for the Ba2 rating.  An aggressive use of UCLP debt to fund share
buybacks at the Universal level or acquisitions could result in a negative
outlook or downgrade.

The Ba2 rating is supported by the company's leading position as the second
largest natural gas compression services company in the world with 2.5
million horsepower as of June 2006, its recent pricing power and record
fabrication backlog which has strengthened its earnings and cash flows, and
its general reduction in leverage over recent years (LTM Debt/EBITDA of 3.1x
and debt to capitalization of 43% at June 30, 2006).  Universal's core
contract compression business provides 85% of the company's gross margin and
is very stable in comparison to other oil and gas related businesses.

In addition to the uncertainties regarding the future capital structure and
leverage profile, Universal's Ba2 Corporate Family Rating is restrained by
the growth challenges in the domestic compression sector which necessitates
the pursuit of growth in higher risk and more challenging foreign markets,
the substantial capital expenditures required for expansions and acquisition
event risk.

Headquartered in Houston, Texas, Universal Compression, Inc. --
http://www.universalcompression.com/-- provides natural gas
compression equipment and services, primarily to the energy
industry in the United States, as well as in Canada, Venezuela,
Argentina, Columbia, and Australia.


* BOND PRICING: For the week of October 16 -- October 20, 2006
--------------------------------------------------------------

Issuer                               Coupon   Maturity  Price
------                               ------   --------  -----
ABC Rail Product                     10.500%  01/15/04     1
ABC Rail Product                     10.500%  12/31/04     1
Adelphia Comm.                        3.250%  05/01/21     0
Adelphia Comm.                        6.000%  02/15/06     0
Adelphia Comm.                        7.500%  01/15/04    66
Adelphia Comm.                        7.750%  01/15/09    72
Adelphia Comm.                        7.875%  05/01/09    72
Adelphia Comm.                        8.125%  07/15/03    69
Adelphia Comm.                        8.375%  02/01/08    72
Adelphia Comm.                        9.250%  10/01/02    67
Adelphia Comm.                        9.375%  11/15/09    73
Adelphia Comm.                        9.500%  02/15/04    64
Adelphia Comm.                        9.875%  03/01/05    69
Adelphia Comm.                        9.875%  03/01/07    73
Adelphia Comm.                       10.250%  11/01/06    69
Adelphia Comm.                       10.500%  07/15/04    73
Adelphia Comm.                       10.875%  10/01/10    71
Allegiance Tel.                      11.750%  02/15/08    47
Allegiance Tel.                      12.875%  05/15/08    48
Amer & Forgn Pwr                      5.000%  03/01/30    66
Amer Color Graph                     10.000%  06/15/10    69
Antigenics                            5.250%  02/01/25    64
Anvil Knitwear                       10.875%  03/15/07    72
Archibald Candy                      10.000%  11/01/07     0
Armstrong World                       6.350%  08/15/03    70
Armstrong World                       6.500%  08/15/05    73
Armstrong World                       7.450%  05/15/29    70
Armstrong World                       9.000%  06/15/04    66
ATA Holdings                         13.000%  02/01/09     4
Atlantic Mutual                       8.150%  02/15/28    61
Autocam Corp.                        10.875%  06/15/14    61
Avado Brands Inc                     11.750%  06/15/09     1
Bank New England                      8.750%  04/01/99     5
Bank New England                      9.500%  02/15/96    13
BBN Corp                              6.000%  04/01/12     0
Burlington North                      3.200%  01/01/45    57
Calpine Corp                          4.750%  11/15/23    48
Calpine Corp                          6.000%  09/30/14    39
Calpine Corp                          7.625%  04/15/06    71
Calpine Corp                          7.750%  04/15/09    75
Calpine Corp                          7.750%  06/01/15    33
Calpine Corp                          7.875%  04/01/08    72
Calpine Corp                          8.500%  02/15/11    47
Calpine Corp                          8.625%  08/15/10    47
Calpine Corp                          8.750%  07/15/07    70
Calpine Corp                         10.500%  05/15/06    72
Cell Therapeutic                      5.750%  06/15/08    70
Central Tractor                      10.625%  04/01/07     0
Chic East Ill RR                      5.000%  01/01/54    57
CIH                                   9.920%  04/01/14    71
CIH                                  10.000%  05/15/14    71
CIH                                  11.125%  01/15/14    74
Clark Material                       10.750%  11/15/06     0
Collins & Aikman                     10.750%  12/31/11     3
Columbia/HCA                          7.050%  12/01/27    74
Columbia/HCA                          7.500%  11/15/95    73
Comcast Corp                          2.000%  10/15/29    41
Comprehens Care                       7.500%  04/15/10    65
Cooper Standard                       8.375%  12/15/14    75
Cray Research                         6.125%  02/01/11     5
Dal-Dflt09/05                         9.000%  05/15/16    29
Dana Corp                             5.850%  01/15/15    73
Dana Corp                             7.000%  03/01/29    73
Dana Corp                             7.000%  03/15/28    73
Dana Corp                             9.000%  08/15/11    68
Dana Corp                            10.125%  03/15/10    71
Delco Remy Intl                       9.375%  04/15/12    44
Delco Remy Intl                      11.000%  05/01/09    48
Delta Air Lines                       2.875%  02/18/24    30
Delta Air Lines                       7.700%  12/15/05    29
Delta Air Lines                       7.900%  12/15/09    33
Delta Air Lines                       8.000%  06/03/23    31
Delta Air Lines                       8.300%  12/15/29    32
Delta Air Lines                       9.250%  03/15/22    29
Delta Air Lines                       9.250%  12/27/07    29
Delta Air Lines                       9.750%  05/15/21    30
Delta Air Lines                      10.000%  06/01/08    56
Delta Air Lines                      10.000%  06/05/13    74
Delta Air Lines                      10.000%  08/15/08    32
Delta Air Lines                      10.060%  01/02/16    73
Delta Air Lines                      10.080%  06/16/07    65
Delta Air Lines                      10.125%  05/15/10    29
Delta Air Lines                      10.375%  02/01/11    30
Delta Air Lines                      10.375%  12/15/22    30
Delta Mills Inc                       9.625%  09/01/07    23
Deutsche Bank NY                      8.500%  11/15/16    70
Diamond Triumph                       9.250%  04/01/08    71
Diva Systems                         12.625%  03/01/08     1
Dov Pharmaceutic                      2.500%  01/15/25    48
Dura Operating                        8.625%  04/15/12    39
Dura Operating                        9.000%  05/01/09     5
Duty Free Int'l                       7.000%  01/15/04     0
DVI Inc                               9.875%  02/01/04     8
Dyersburg Corp                        9.750%  09/01/07     0
Eagle-Picher Inc                      9.750%  09/01/13    74
Empire Gas Corp                       9.000%  12/31/07     1
Encysive Pharmac                      2.500%  03/15/12    73
Exodus Comm Inc                      10.750%  12/12/09     0
Exodus Comm Inc                      11.625%  07/15/10     0
Fedders North AM                      9.875%  03/01/14    67
Federal-Mogul Co.                     7.375%  01/15/06    59
Federal-Mogul Co.                     7.500%  01/15/09    61
Federal-Mogul Co.                     8.160%  03/06/03    51
Federal-Mogul Co.                     8.330%  11/15/01    59
Federal-Mogul Co.                     8.370%  11/15/01    53
Federal-Mogul Co.                     8.370%  11/15/01    59
Federal-Mogul Co.                     8.800%  04/15/07    60
Finova Group                          7.500%  11/15/09    30
Ford Motor Co                         6.500%  08/01/18    75
Ford Motor Co                         6.625%  02/15/28    74
Ford Motor Co                         7.125%  11/15/25    75
Ford Motor Co                         7.400%  11/01/46    74
Ford Motor Co                         7.700%  05/15/97    73
Ford Motor Co                         7.750%  06/15/43    74
GB Property Fndg                     11.000%  09/29/05    53
Golden Books Pub                     10.750%  12/31/04     0
Graftech Intl                         1.625%  01/15/24    74
Graftech Intl                         1.625%  01/15/24    74
GST Network Fndg                     10.500%  05/01/08     0
Gulf Mobile Ohio                      5.000%  12/01/56    75
HNG Internorth                        9.625%  03/15/06    38
Home Prod Intl                        9.625%  05/15/08    60
Inland Fiber                          9.625%  11/15/07    64
Insight Health                        9.875%  11/01/11    24
Iridium LLC/CAP                      10.875%  07/15/05    29
Iridium LLC/CAP                      11.250%  07/15/05    30
Iridium LLC/CAP                      13.000%  07/15/05    30
Iridium LLC/CAP                      14.000%  07/15/05    31
Isolagen Inc.                         3.500%  11/01/24    74
IT Group Inc                         11.250%  04/01/09     0
JTS Corp                              5.250%  04/29/02     0
Kaiser Aluminum                       9.875%  02/15/02    33
Kaiser Aluminum                      12.750%  02/01/03     9
Kellstrom Inds                        5.500%  06/15/03     0
Kmart Corp                            8.540%  01/02/15    28
Kmart Corp                            8.990%  07/05/10     4
Kmart Corp                            9.350%  01/02/20    10
Kmart Funding                         9.440%  07/01/18    23
Liberty Media                         3.750%  02/15/30    62
Liberty Media                         4.000%  11/15/29    67
Lifecare Holding                      9.250%  08/15/13    69
Macsaver Financl                      7.400%  02/15/02     4
Macsaver Financl                      7.600%  08/01/07     1
Macsaver Financl                      7.875%  08/01/03     0
Merisant Co                           9.500%  07/15/13    65
Movie Gallery                        11.000%  05/01/12    64
MSX Int'l Inc.                       11.375%  01/15/08    70
Muzak LLC                             9.875%  03/15/09    68
New Orl Grt N RR                      5.000%  07/01/32    69
Northern Pacific RY                   3.000%  01/01/47    56
Northern Pacific RY                   3.000%  01/01/47    56
Northwest Airlines                    6.625%  05/15/23    57
Northwest Airlines                    7.248%  01/02/12    20
Northwest Airlines                    7.625%  11/15/23    57
Northwest Airlines                    7.875%  03/15/08    58
Northwest Airlines                    8.700%  03/15/07    59
Northwest Airlines                    8.875%  06/01/06    56
Northwest Airlines                    9.152%  04/01/10     7
Northwest Airlines                    9.179%  04/01/10    23
Northwest Airlines                    9.875%  03/15/07    60
Northwest Airlines                   10.000%  02/01/09    58
NTK Holdings Inc                     10.750%  03/01/14    70
Nutritional Src                      10.125%  08/01/09    66
Oakwood Homes                         7.875%  03/01/04     9
Oakwood Homes                         8.125%  03/01/09     6
Oscient Pharm                         3.500%  04/15/11    67
OSU-DFLT10/05                        13.375%  10/15/09     0
Outboard Marine                       9.125%  04/15/17     0
Outboard Marine                      10.750%  06/01/08     4
Overstock.com                         3.750%  12/01/11    74
Owens Corning                         7.000%  03/15/09    56
Owens Corning                         7.500%  05/01/05    56
Owens Corning                         7.500%  08/01/18    57
Owens Corning                         7.700%  05/01/08    57
Owens-Corning Fiber                   8.875%  06/01/02    48
Pac-West-Tender                      13.500%  02/01/09    60
PCA LLC/PCA Fin                      11.875%  08/01/09    25
Pegasus Satellite                     9.625%  10/15/49    11
Pegasus Satellite                     9.750%  12/01/06    11
Pegasus Satellite                    12.375%  08/01/06    11
Pegasus Satellite                    13.500%  03/01/07     0
Phar-mor Inc                         11.720%  09/11/02     0
Piedmont Aviat                       10.250%  01/15/49     1
Piedmont Aviat                       10.250%  01/15/49     3
Pixelworks Inc                        1.750%  05/15/24    71
Plainwell Inc                        11.000%  03/01/08     2
Pliant Corp                          13.000%  07/15/10    45
Polaroid Corp                         6.750%  01/15/02     0
Primus Telecom                        3.750%  09/15/10    46
Primus Telecom                        8.000%  01/15/14    62
PSINET Inc                           10.500%  12/01/06     0
PSINET Inc                           11.000%  08/01/09     0
Radnor Holdings                      11.000%  03/15/10    20
Railworks Corp                       11.500%  04/15/09     1
Read-Rite Corp.                       6.500%  09/01/04     6
Rite Aid Corp                         6.875%  12/15/28    73
RJ Tower Corp.                       12.000%  06/01/13    22
Rotech HealthCare                     9.500%  04/01/12    70
Salton Inc                           12.250%  04/15/08    72
Solectron Corp                        0.500%  02/15/34    73
Spinnaker Inds                       10.750%  10/15/06     0
Telcordia Tech                       10.000%  03/15/13    71
Toys R Us                             7.375%  10/15/18    73
Tribune Co                            2.000%  05/15/29    66
United Air Lines                      7.870%  01/30/19    54
United Air Lines                      8.700%  10/07/08    39
United Air Lines                      9.020%  04/19/12    56
United Air Lines                      9.200%  03/22/08    49
United Air Lines                      9.350%  04/07/16    33
United Air Lines                      9.560%  10/19/18    61
United Air Lines                     10.020%  03/22/14    49
United Air Lines                     10.110%  01/05/06     3
United Air Lines                     10.110%  02/19/49    41
US Air Inc.                          10.750%  01/01/49     0
US Air Inc.                          10.750%  01/15/49    24
USAutos Trust                         5.100%  03/03/11    75
Venture Holdings                     11.000%  06/01/07     0
Venture Holdings                     12.000%  06/01/09     0
Vesta Insurance Group                 8.750%  07/15/25     9
Werner Holdings                      10.000%  11/15/07    13
Wheeling-Pitt St                      6.000%  08/01/10    70
Winn-Dixie Store                      8.875%  04/01/08    66
Winstar Comm Inc                     12.750%  04/15/10     0


                         ***********


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


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