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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

          Monday, January 15, 2007, Vol. 8, Issue 10

                          Headlines

A R G E N T I N A

BANCO MACRO: Offering US$150MM Notes Under Medium-Term Program
EAST INDIANA: Deadline for Verification of Claims Is on March 7
EDUARDO RETIENNE: Asks for Court Approval to Reorganize Business
ELECTRICIDAD ARGENTINA: S&P Places Ratings on CreditWatch
EMPRESA DISTRIBUIDORA: S&P Places B- Ratings on CreditWatch

FIESTAS Y EVENTOS: Asks for Court Approval to Restructure Debts
INVERSORA ELECTRICA: Paying 20% of Debt Under Restructuring Plan
IRSA INVERSIONES: Fitch Puts B Local & Foreign Issuer Ratings
LONERA EL: Proofs of Claim Verification Is Until Feb. 15
LOVE DENIM: Claims Verification Deadline Is Set for Feb. 26

METROGAS: S&P Puts D Rating on US$600-Million Notes
SANCOR COOP: S&P Assigns D Ratings on US$375.8-Million Notes
VALEANT PHARMA: Closes Licensing Deal with Schering-Plough

B A H A M A S

ISLE OF CAPRI: Tim Hinkley Steps Down as President & COO
PINNACLE ENT: Appoints Ellis Landau to Board of Directors

B E R M U D A

AFFYMETRIX TECHNOLOGY: Proofs of Claim Filing Is Until Jan. 24
C TANKER: Proofs of Claim Filing Deadline Is on Jan. 17
CAPCOUNT (BERMUDA): Proofs of Claim Filing Is Until Jan. 29
EDGEWATER PROVIDERS: To Pay Dividends on Jan. 31
PANOCEAN LTD: Creditors Must Submit Proofs of Claim by Jan. 24

PARAISO LTD: Deadline for Proofs of Claim Filing Is on Jan. 20
SC EQUITY: Last Day to File Proofs of Claim Is on Jan. 24
SCHRODER EMERGING: Proofs of Claim Filing Is Until Jan. 17
SOUTHERN CROSSING: Proofs of Claim Filing Deadline Is on Jan. 24
TONINAS LTD: Proofs of Claim Filing Deadline Is on Jan. 20

B R A Z I L

ALCATEL-LUCENT: Dresdner Analysts Maintain "Sell" Rating
BANCO DO BRASIL: Eyes 60 Financial Pacts with Non-Bank Partners
BANCO NACIONAL: Extends Project Submission Deadline to Jan. 31
BANCO NACIONAL: Posts BRL52.3 Billion in Loans in 2006
COMPANHIA ENERGETICA: Investing BRL5 Million in IT Governance

COMPANHIA SIDERURGICA: Commission Seeks Help on Corus Bid Probe
DURA AUTOMOTIVE: Panel Wants Information Access Protocol Okayed
DURA AUTOMOTIVE: Section 341(a) Meeting Adjourned Sine Die
GERDAU SA: Will Report Strongest 2006 Results, Analyst Says
NOSSA CAIXA: Accepts Milton Luiz de Melo as Chief Executive

PETROLEO BRASILEIRO: Cidade do Rio Platform Goes Online
PETROLEO BRASILEIRO: Inks Lease Contract with Larsen Oil
PETROLEO BRASILEIRO: P-52 Oil Rig Construction Completed
RIO POMBA: Minas Gerais Gov't Shuts Down Company After Accident
SANTANDER BANESPA: Denies Firm's Sale to Banco Bradesco

VOLKSWAGEN AG: Wolfgang Bernhard Leaves Board of Management
WEIGHT WATCHERS: S&P Holds Corporate Credit Rating at BB
WEIGHT WATCHERS: Moody's Rates Proposed US$1.2 Bil. Loan at Ba1

C A Y M A N   I S L A N D S

APRECIA ASSET: Creditors Must File Proofs of Claim by Jan. 15
APRECIA ASSET: Shareholders to Gather for Jan. 15 Final Meeting
ARBOR II: Creditors Must Submit Proofs of Claim by Jan. 16
ARBOR II: Liquidator to Present Wind Up Progress on Jan. 16
GENERAL MOTORS: Kirk Motors No Longer International Sales Rep

IRP SECOND: Creditors Have Until Jan. 15 to File Proofs of Claim
JOFML I: Proofs of Claim Filing Deadline Is Set for Jan. 15
JOFML I: Shareholders to Convene for Final Meeting on Jan. 15
KARA INVESTMENTS: Deadline for Proofs of Claim Filing Is Jan. 15
LRM SECOND: Proofs of Claim Filing Is Until Jan. 15

MARUBENI LEASING: Final Shareholders Meeting Is Set for Jan. 15
RG RECEIVABLES: Last Day for Claims Filing Is on Jan. 15
RG RECEIVABLES: Calls Shareholders for Final Meeting on Jan. 15
SEE HUP SENG: Appoints Vice-Chairman & Directors
TRI-COLUMN: Creditors Must File Proofs of Claim by Jan. 15

TRI-COLUMN 1: Liquidator to Present Wind Up Accounts on Jan. 15
TRI-COLUMN 2: Filing of Proofs of Claim Is Until Jan. 15
TRI-COLUMN 2: Final General Meeting Is Set for Jan. 15
TRI-COLUMN 3: Calls Shareholders for Jan. 15 Final Meeting
TRI-COLUMN 3: Last Day to File Proofs of Claim Is on Jan. 15

WINDERMERE CORP: Last Day to File Proofs of Claim Is on Jan. 15
WINDERMERE CORP: Sets Final Shareholders Meeting on Jan. 15
WIZARD MANAGEMENT: Proofs of Claim Filing Deadline Is on Jan. 15
WIZARD MANAGEMENT: Last Shareholders Meeting Is Set for Jan. 15

C H I L E

ARAMARK CORP: Fitch Expects to Cut Issuer Default Rating to B

C O L O M B I A

BANCOLOMBIA: President & Vice President Get Reinstated
GRAN TIERRA: Commences Drilling Operations in Colombia

C O S T A   R I C A

ARMSTRONG WORLD: May Sell Tapijtfabriek to NPM Capital
HILTON HOTELS: Managing Caribbean Real's Resorts in Costa Rica
US AIRWAYS: Ups Offer for Delta Air to US$10.2 Billion
US AIRWAYS: S&P Retains Dev. Watch Despite Revised Delta Offer

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Luis Renta Seeks to Delay Fraud Case

E C U A D O R

IMAX CORP: Signs Two-Theatre Deal with Zyacorp Entertainment
PETROECUADOR: Posts US$1.11 Billion in Revenues from Block 15

G U A T E M A L A

GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating

H O N D U R A S

MILLICOM INTERNATIONAL: Tigo Investing US$100 Million This Year

* HONDURAS: Will Export Bananas to China in February

J A M A I C A

AFFILIATED COMPUTER: Begins Facility Construction in Jamaica
AIR JAMAICA: Union Alleges Capitalization & Management Problems

M E X I C O

ADVANCED MARKETING: Hachette Book Objects to DIP Financing Plea
ALESTRA SA: Gets Court Order to Stop Ministry Sanction
CONTINENTAL AIRLINES: Contributes US$71 Million to Pension Plans
DANA CORP: Moody's Assigns Low B Ratings on DIP Facilities
DELTA AIR: Creditors Want US Airways Revised Offer Considered

DIRECTV INC: Launches TV-PC Connectivity with Intel
ENESCO GROUP: Files Chapter 11 Petition to Effect Asset Sale
ENESCO GROUP: Case Summary & 30 Largest Unsecured Creditors
HERBALIFE: Names Patrick Dailey as Chief Administrative Officer
MAXCOM TELECOMUNICACIONES: Number Portability To Cost US$5 Mil.

NORTEL NETWORKS: UBS Analysts Maintain "Neutral" Rating
VISTEON CORP: Inks Retail Distribution Pact with Advanced Global
VITRO SA: Offering US$750MM Debt to Improve Capital Structure
WERNER LADDER: Judge Carey Appoints Warren Smith as Fee Auditor
WERNER LADDER: Implementation of Employee Severance Plan Okayed

* MUNICIPALITY OF LA BARCA: Moody's Rates US$42MM Loan at Ba1

N I C A R A G U A

* NICARAGUA: Venezuela Gov't to Launch Local Unit of Bandes

P A N A M A

BANCO CONTINENTAL: Banco General Merger Cues Fitch's PosWatch
GRUPO FINANCIERO: Fitch Affirms & Withdraws C Individual Rating

P E R U

PRIDE INT: Names Jeffrey Chastain as Investor Relations Officer
SK CORP: To Revive Incheon Unit IPO, WSJ Reports

P U E R T O   R I C O

ADVANCED MEDICAL: IntraLase Deal Cues Moody's Ratings Review
CORUS HARDWARE: Case Summary & 20 Largest Unsecured Creditors
PILGRIM'S PRIDE: Names Wayne Lord as VP of Governmental Affairs

T R I N I D A D   &   T O B A G O

PRG GROUP: Closes Acquisition of Prime Communications
ROYAL CARIBBEAN: Commences Offering on Fixed Rates Sr. Notes
ROYAL CARIBBEAN: Moody's Puts Ba1 Rating on Euro Sr. Sec. Notes

U R U G U A Y

* URUGUAY: Selling Controlling Stake in Pluna to Leadgate

V E N E Z U E L A

ELECTRICIDAD DE CARACAS: Shares Can Now Trade on Local Exchange
YPF SA: Parent Firm Not Worried on Venezuela's Nationalization

* VENEZUELA: Launching Bank of Economic Unit in Nicaragua
* VENEZUELA: Negotiating with Firm Owners on Nationalization
* VENEZUELA: S&P Revises Outlook to Stable from Positive
* BOOK REVIEW: Working Together


                          - - - - -


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


BANCO MACRO: Offering US$150MM Notes Under Medium-Term Program
--------------------------------------------------------------
Banco Macro SA plans to offer up to US$150 million of notes due
2017 during the first quarter of 2007, as part of its medium-
term note financing program, in a transaction exempt from the
registration requirements of the U.S. Securities Act of 1933.  
Banco Macro intends to use the net proceeds from the sale to
make loans in accordance with Argentine Central Bank guidelines.

Banco Macro S.A. runs the gambit when it comes to retail and
commercial banking in Argentina.  The bank provides customers
with traditional banking products such as savings, international
financing, checking and deposit accounts, phone and online
banking services, credit cards, and asset management-related
services.  Chief subsidiaries include trading entity Sud
Acciones y Valores, offshore financial institution Sud Bank and
Trust Co., and asset management business Sud Valores Soc. Ger.
F.C.I.  The company was established as a primarily non-banking
institution in 1985.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Moody's Investors Service assigned a provisional B2 global
foreign currency rating to Banco Macro SA's senior unsecured
notes, which are due 2017, for US$150,000,000.  Moody's also
assigned a provisional Aa3.ar in national scale to the same
debt.  The outlook on the ratings is stable.


EAST INDIANA: Deadline for Verification of Claims Is on March 7
---------------------------------------------------------------
Oscar Epstein, the court-appointed trustee for East Indiana SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until March 7, 2007.

Under the Argentine bankruptcy law, Mr. Epstein is required to
present the validated claims in court as individual reports.  
Court No. 25 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 East Indiana and its
creditors.

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

Mr. Epstein will also submit a general report that contains an
audit of East Indiana's accounting and banking records.  The
report submission dates have not been disclosed.

East Indiana was forced into bankruptcy at the behest of
Chiarito San Luis SA, which it owes US$3,376.46.

The debtor can be reached at:

          East Indiana SA
          Avenida Rivadavia 1156
          Buenos Aires, Argentina  

The trustee can be reached at:

          Oscar Epstein
          Viamonte 1620
          Buenos Aires, Argentina


EDUARDO RETIENNE: Asks for Court Approval to Reorganize Business
----------------------------------------------------------------
Court No. 21 in Buenos Aires is studying the merits of Eduardo
Retienne SA's petition to reorganize its business after it
stopped paying its obligations on November 2006.

The petition, once approved by the court, will allow Eduardo
Retienne to negotiate a settlement plan with its creditors in
order to avoid a straight liquidation.

Clerk No. 41 assists the court in the proceeding.

The debtor can be reached at:

          Eduardo Retienne SA
          Peron 1155
          Buenos Aires


ELECTRICIDAD ARGENTINA: S&P Places Ratings on CreditWatch
---------------------------------------------------------
Standard & Poor's Ratings Services placed the ratings on
Electricidad Argentina S.A. aka EASA, 51% owner of the largest
Argentine electric distributor, Empresa Distribuidora aka
Comercializadora Norte SA, on CreditWatch with positive
implications following the promulgation of national decree
1957/2006 on Jan. 8, 2007.
     
This decree ratified the "Acta Acuerdo" agreement between Edenor
and Unidad de Renegociacion y Analisis de Contratos de Servicios
Publicos, which defined terms and conditions for a transition
period until the global renegotiation of the concession
contract.
      
"The CreditWatch listing reflects potential improvement of
EASA's credit quality due to the same for Edenor's credit
quality," said Standard & Poor's credit analyst Sergio Fuentes.  
"This potential exists mainly because the Acta Acuerdo
incorporates a significant tariff increase for Edenor's customer
base -- excluding residential users -- and a nonautomatic
periodic tariff adjustment mechanism reflecting the evolution of
the Edenor's operating costs, as well as certain language
mitigating Edenor's exposure to the unavailability
of transmission or power generation capacity, which results in
power supply shortages," Mr. Fuentes continued.
     
Standard & Poor's expects to resolve the CreditWatch listing
once the regulatory entity Ente Nacional Regulador de
Electricidad approves the Acta Acuerdo.


EMPRESA DISTRIBUIDORA: S&P Places B- Ratings on CreditWatch
-----------------------------------------------------------
Standard & Poor's Ratings placed its 'B-' ratings on Argentina's
largest electricity distributor, Empresa Distribuidora
Comercializadora Norte S.A. aka Edenor, on CreditWatch with
positive implications following the promulgation of national
decree 1957/2006 on Jan. 8, 2007.
     
This decree ratified the "Acta Acuerdo" agreement between Edenor
and Unidad de Renegociacion y Analisis de Contratos de Servicios
Publicos, which defined terms and conditions for a transition
period until the global renegotiation of Edenor's concession
contract.
      
"The CreditWatch listing reflects potential improvement of
Edenor's credit quality mainly due to the Acta Acuerdo's
incorporation of two particular terms," said Standard & Poor's
credit analyst Sergio Fuentes.  "First, there will be a
significant tariff increase for the company's customer base
-- excluding residential users -- and a nonautomatic periodic
tariff adjustment mechanism reflecting the evolution of the
company's operating costs.  Also, there is certain language
mitigating Edenor's exposure to the unavailability of
transmission or power generation capacity, which could
result in power supply shortages," Mr. Fuentes continued.
     
Standard & Poor's expects to resolve the CreditWatch listing
once the national regulatory entity Ente Nacional Regulador de
Electricidad approves the Acta Acuerdo.


FIESTAS Y EVENTOS: Asks for Court Approval to Restructure Debts
---------------------------------------------------------------
Court No. 19 in Buenos Aires is studying the merits of Fiestas y
Eventos SA's petition to restructure its debts after it stopped
paying its obligations.

The petition, once approved by the court, will allow Fiestas y
Eventos to negotiate a settlement plan with its creditors in
order to avoid a straight liquidation.

Clerk No. 38 assists the court in the proceeding.

The debtor can be reached at:

          Fiestas y Eventos SA
          Talcahuano 446
          Buenos Aires, Argentina


INVERSORA ELECTRICA: Paying 20% of Debt Under Restructuring Plan
----------------------------------------------------------------
Argentine holding company Inversora Electrica de Buenos Aires
has announced a debt restructuring offer that aims at canceling
its whole debt of around US$230 million in default since 2002 by
paying only 20% of it in instalments that would last until year
2017.  IEBA, a unit of Italian group Camuzzi, is the controlling
partner of EDEA, the major electricity distribution company in
the Buenos Aires province.

Ernesto Crescia, legal advisor of a group of creditors that hold
around US$30 million of IEBA's notes, said that his customers
think the offer is insufficient.

The payment proposal was handed to the National Court of
Original Jurisdiction in Commercial Matters No. 3, which
oversees IEBA's formal restructuring proceeding.  

Judge Rafael Cruz Martin decided that the creditors' meeting,
scheduled for March 29, would take place simultaneously in
Buenos Aires and New York.


IRSA INVERSIONES: Fitch Puts B Local & Foreign Issuer Ratings
-------------------------------------------------------------
Fitch Ratings assigned foreign and local currency Issuer Default
Ratings of 'B' to IRSA Inversiones aka Representaciones SA, a
leading real estate company in Argentina.  Fitch has also
assigned a 'B' rating to IRSA's proposed US$150 million senior
unsecured note due in 2017, as well as a Recovery Rating of
'RR4', which indicates average recovery prospects in the event
of default.  In conjunction with these rating actions, Fitch has
assigned an 'A-' national rating to the new debt issuance.  All
ratings have a Stable Outlook.

The ratings are supported by IRSA's strong business position in
both residential and office property development and management.  
As of September 2006, key office assets include 87,000 square
meters of 'AAA' and 'A' office buildings strategically located,
representing 45% of IRSA's total leasable area. IRSA's credit
ratings also positively factor in its 61.5% controlling stake in
Alto Palermo, a leading developer and manager of shopping
centers in Argentina.  APSA operates and owns majority stake in
nine shopping centers in Argentina, five of which are located in
Buenos Aires.  Both IRSA and APSA own key parcels of land in
Buenos Aires which could be sold to improve the company's
liquidity.

The company's 'B' ratings reflect the cyclical nature of the
real estate market in Argentina, which is highly correlated with
the local economy, and the lack of geographic diversification of
the company's cash flows.  IRSA's credit ratings also reflect
the mismatch between its dollar denominated debt and peso
denominated cash flow.  Further factored into the rating is
IRSA's reliance upon APSA for dividends for debt service, as
well as payments on convertible bonds of APSA held by IRSA.  
Should APSA grow aggressively in the future via internal cash
flow and/or debt, it may not have sufficient free cash flow to
upstream to IRSA.

As of Sept. 30, 2006, IRSA had US$94 million of consolidated
debt. This debt consists of US$67 million of debt at IRSA and
US$27 million of debt at its subsidiaries, primarily APSA.  This
debt does not include convertible notes for US$27 million and
US$47.3 million, in IRSA and APSA, respectively.

The company intends to use the proceeds of its US$150 million
issuance primarily to expand its office business, including the
acquisition of the Republica and Nacion buildings.  After these
transactions Fitch expects IRSA's consolidated debt to increase
to approximately US$280 million.  IRSA has a call option to
acquire the 'Republica's office building for US$74 million.  
Jointly these acquisitions would represent an EBITDA of around
US$12 million per annum, increasing by 76% IRSA's 'AAA' office
rental area and raising it's market share in this segment above
20%.

Fitch expects future investments to be financed with the
proceeds of the debt issuance and from the US$60 million of cash
that could be raised from the full exercise of the call option
on IRSA's stock due in November 2007.

Fitch expects IRSA to maintain adequate leverage after the debt
issuance and believes that the convertible notes will be
converted to equity in November 2007.  On a consolidated basis,
including APSA, the company's Loan to Value as measured by net
debt to undepreciated property assets (or LTV ratio) was 6% at
the end of September and would climb to 35% with the addition of
the new debt. IRSA's LTV, excluding APSA, was 25% as of Sept.
30, 2006, and will increase to 75% with the proposed US$150
million debt issuance. After the debt issuance most of IRSA's
unconsolidated debt will be unsecured, and the the unsecured
asset coverage, defined as unencumbered property assets to
unsecured debt, is estimated at 1.1 times.  On a consolidated
basis, including APSA, this ratio would climb to 3x.

During the last fiscal year, IRSA's consolidated EBITDA was
US$86.4 million, 68% of which is related to the shopping center
segment. On a standalone basis, cash generation from the office
and development segments plus dividend stream from APSA and the
hotels plus interest on APSA's convertible notes was US$29
million as of June 2006.  This is composed of US$20 million from
the rental office and development segments and US$9 million from
APSA.

Favorable market conditions and the new office building
acquisitions are expected to boost the company's cash generation
and will help support its debt service.  Under a stressed
scenario Fitch estimates IRSA's adjusted cash flow to be above
US$37 million per year during the next three years, which is the
amount the company needs to cover its annual debt service.

The outlook for IRSA in the short term appears to be positive
due to the continued recovery of the economy, which will
increase the demand for office space and residential
development.  Its office properties are located in prime
business locations in the city of Buenos Aires. Demand for
office space has recovered, resulting in low vacancy rates and
increasing prices.  

Fitch expects rental agreements to be renewed at higher prices
with a positive impact on IRSA's cash flow.  The company's
shopping center subsidiary APSA is also benefiting from the
continued rebound of the economy.  Nevertheless, over the medium
to long term, considerable political and economic risks exist in
the company's operating environment.  A negative rating action
could be triggered by a significant underperformance in
projected cash generation.

IRSA is a leading real estate company in Argentina.  Its
business portfolio is split between office rental, real estate
and hotel developments and shopping centers.  The company's
stock is listed on both the Buenos Aires Stock Exchange and the
NYSE. Cresud SA is the largest shareholder of IRSA, with a 26.7%
stake and a fully diluted stake of 34.3%.


LONERA EL: Proofs of Claim Verification Is Until Feb. 15
--------------------------------------------------------
Jose Maria Arabena, the court-appointed trustee for Lonera El
Rosario SA's bankruptcy proceeding, will verify creditors'
proofs of claim until Feb. 15, 2007.

Mr. Arabena will present the validated claims in court as
individual reports on March 29, 2007.   A court in Villa
Mercedes, San Luis will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Lonera El 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 Lonera El's
accounting and banking records will follow on May 16, 2007.

Mr. Arabena is also in charge of administering Lonera El's
assets under court supervision and will take part in their
disposal to the extent established by law.


LOVE DENIM: Claims Verification Deadline Is Set for Feb. 26
-----------------------------------------------------------
Carlos Daniel Brezinski, the court-appointed trustee for Love
Denim SRL's reorganization proceeding, will verify creditors'
proofs of claim until Feb. 26, 2007.

Mr. Brezinski will present the validated claims in court as
individual reports on Apr. 11, 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 Love Denim 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 Love Denim's
accounting and banking records will follow on May 28, 2007.

On Oct. 8, 2007, Love Denim's creditors will vote on a
settlement plan that the company will lay on the table.

The debtor can be reached at:

          Love Denim SRL
          Esteban de Luca 2223
          Buenos Aires, Argentina

The trustee can be reached at:

          Carlos Daniel Brezinski
          Lambare 1140
          Buenos Aires, Argentina


METROGAS: S&P Puts D Rating on US$600-Million Notes
---------------------------------------------------
Standard & Poor's as rates Metrogas SA's debts:

   -- Obligaciones Negociables Series  for US$26,254,764, raBB+

   -- Program of Obligaciones Negociables simples for
      US$600,000,000, D

   -- Obligaciones Negociables Series 2-B for EUR26,070,450  

   -- Obligaciones Negociables Serie 1 for US$236,285,638, raBB+

In addition, MetroGas's ordinary class B shares have been
included in category 4.  The rating action was based on the
company's balance sheet at Sept. 30, 2006.


SANCOR COOP: S&P Assigns D Ratings on US$375.8-Million Notes
------------------------------------------------------------
Standard & Poor's rates Sancor Coop. Unidas Ltda.'s debts at D:

   -- Obligaciones Negociables Serie 2, issued under the US$300
      million program, for US$19,000,000,

   -- Obligaciones Negociables Serie 3, included under the
      US$300 million program, for US$75,800,000

The debts became due on Jan. 27, 2004.  The rating action was
based on the company's balance sheet at Sept. 30, 2006.


VALEANT PHARMA: Closes Licensing Deal with Schering-Plough
----------------------------------------------------------
Valeant Pharmaceuticals International and Metabasis
Therapeutics, Inc. closed their agreement with Schering-Plough
Corporation for the assignment and license of development and
commercial rights to pradefovir.  The close follows the early
termination by the U.S. Federal Trade Commission of the waiting
period under the Hart-Scott-Rodino Antitrust Improvement Act of
1976.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  The
company has offices in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Standard & Poor's Ratings Services lowered its ratings on Costa
Mesa, California-based Valeant Pharmaceuticals International.  
The corporate credit rating was lowered to 'B+' from 'BB-'.  The
ratings remain on CreditWatch with negative implications, where
they were placed Oct. 24, 2006, to reflect the ongoing
uncertainty regarding the company's inability to file its Form
10-Q for the third quarter and the consequences if the company
is not able to resolve the situation in 60 days.




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


ISLE OF CAPRI: Tim Hinkley Steps Down as President & COO
--------------------------------------------------------
Isle of Capri Casinos, Inc., disclosed that Tim Hinkley,
president and chief operating officer, is stepping down.  
The company is initiating a comprehensive search for his
replacement.

"We are tremendously grateful for Tim's visionary leadership and
unparalleled contribution to our growth over the past 17 years.
Tim has successfully led our company through a period of
significant evolution and development, fostering our unique
culture and spearheading the next generation of the Isle brand.  
Tim did an unbelievable job leading the company through the
hurricanes of 2005, and reopening our properties in record time.  
He brought hope and encouragement to everyone affected by the
storms.  From his initial role as general manager at our first
casino in Biloxi, Miss. to serving as president and COO, he has
positioned the company for the future.  I am saddened by Tim's
decision to leave Isle of Capri and we wish him well," said
Bernard Goldstein, chairman and chief executive officer.

Mr. Hinkley will remain in his current role until a replacement
is named.

Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations.  The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo.  The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado.  Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England.  The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 26, 2005,
Standard & Poor's Ratings Services affirmed its ratings on Isle
of Capri Casinos Inc., including its 'BB-' corporate credit
rating.  At the same time, all ratings were removed from
CreditWatch with negative implications where they were placed on
Sept. 1, 2005.  S&P said the outlook is negative.

As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector, the rating agency confirmed Isle of Capri Casinos,
Inc.'s Ba3 Corporate Family Rating.


PINNACLE ENT: Appoints Ellis Landau to Board of Directors
---------------------------------------------------------
Pinnacle Entertainment, Inc., appointed Ellis Landau, a casino
industry veteran with more than 30 years' experience as a
financial executive in the gaming and hospitality industries, to
its Board of Directors.

Mr. Landau recently retired as Executive Vice President and
Chief Financial Officer of Boyd Gaming Corporation, which during
his 16-year tenure transformed from a small private company to a
large, successful publicly traded company with gaming properties
nationwide.  In his role as Boyd's senior financial executive,
Mr. Landau oversaw major acquisition and development
transactions; raising of equity, debt and bank capital; and
relationships with Wall Street and institutional investors.  He
also served on Boyd Gaming's Management Committee, and
participated in all board and committee meetings, including
audit and compensation.

Prior to joining Boyd, Mr. Landau served in various capacities
as a financial executive with Ramada Inc., which became Aztar
Corporation, for 19 years.  He also worked for U-Haul
International in Phoenix, Arizona, and the Securities and
Exchange Commission in Washington, D.C.

A native of Philadelphia, Mr. Landau holds a Bachelor of Arts
degree in Economics from Brandeis University and a master's
degree in finance from Columbia University School of Business.  
After serving in the U.S. Army, Mr. Landau settled in Phoenix,
where he raised two children, Rachel and David.  He is married
to Yvette Landau, who served as general counsel for Mandalay
Resort Group prior to its acquisition by MGM Mirage in 2005.  
She is currently a principal in the Las Vegas-based construction
firm W.A. Richardson Builders.

Mr. Landau replaces Timothy Parrott, who previously resigned
from Pinnacle's Board of Directors to become President and Chief
Executive Officer of the Americas business of Aristocrat
Technologies, a major manufacturer of electronic gaming devices
and systems. Mr. Landau is active in a number of charitable and
philanthropic activities.

"We're very pleased to welcome Ellis Landau to our board," said
Daniel R. Lee, Pinnacle's Chairman and Chief Executive Officer.
"He is an experienced industry expert with great insight into
both the development of individual gaming properties and the
functions of a public, multi-jurisdictional gaming company. His
expertise will be invaluable as we develop our ambitious growth
pipeline, which includes major new resorts in Missouri,
Louisiana and New Jersey. He is also an individual with great
judgment and integrity."

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina
in July 2005.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 4, 2006,
Moody's Investors Service's confirmed Pinnacle Entertainment
Inc.'s B2 Corporate Family Rating.

At the same time, Standard & Poor's Ratings Services affirmed
its 'BB-' rating and '1' recovery rating following Pinnacle
Entertainment Inc.'s US$250 million senior secured bank facility
add-on.




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


AFFYMETRIX TECHNOLOGY: Proofs of Claim Filing Is Until Jan. 24
--------------------------------------------------------------
Affymetrix Technology, Ltd.'s creditors are given until
Jan. 24, 2007, 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.

Affymetrix Technology's shareholders agreed on Jan. 5, 2007, 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


C TANKER: Proofs of Claim Filing Deadline Is on Jan. 17
-------------------------------------------------------
C Tanker Ltd.'s creditors are given until Jan. 17, 2007, 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.

C Tanker's shareholders agreed on Dec. 22, 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


CAPCOUNT (BERMUDA): Proofs of Claim Filing Is Until Jan. 29
-----------------------------------------------------------
Capcount (Bermuda) Ltd.'s creditors are given until Jan. 29
to prove their claims to Jennifer Y. Fraser, 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.

Capcount (Bermuda)'s shareholders agreed on Jan. 9, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Jennifer Y. Fraser
         Canon's Court, 22 Victoria Street
         Hamilton, Bermuda


EDGEWATER PROVIDERS: To Pay Dividends on Jan. 31
------------------------------------------------
Edgewater Providers Insurance Co. Ltd. intends to declare a
first and final dividend on Jan. 31, 2007.  Creditors who wish
to participate in the dividend payout, and who have not already
done so, must submit a completed Proofs of Debt form on Jan. 30
to Deloitte & Touche, the company's liquidator.

Creditors who fail to file the form will be excluded to
participate in the payment of the dividend to be declared.  
Those who have already submitted the form are not required to
submit anything further.

The proof of debt forms may be obtained from the liquidator at:

          Mark W.R. Smith
          Deloitte & Touche
          Corner House, Church & Parliament Streets
          Hamilton, Bermuda


PANOCEAN LTD: Creditors Must Submit Proofs of Claim by Jan. 24
--------------------------------------------------------------
Panocean Ltd.'s creditors are given until Jan. 24, 2007, 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.

Panocean Ltd.'s shareholders agreed on Jan. 9, 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


PARAISO LTD: Deadline for Proofs of Claim Filing Is on Jan. 20
--------------------------------------------------------------
Paraiso Ltd.'s creditors are given until Jan. 20, 2007, to prove
their claims to James A.F. Watlington, 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.

Paraiso Ltd.'s shareholders agreed on Dec. 30, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         James A.F. Watlington
         Alexanders 73
         Front Street, 4th Floor
         Hamilton, Bermuda


SC EQUITY: Last Day to File Proofs of Claim Is on Jan. 24
---------------------------------------------------------
SC Equity Holding Co. Ltd.'s creditors are given until
Jan. 24, 2007, to prove their claims to Marco Montarsolo,
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.

SC Equity's shareholders agreed on Dec. 28, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Marco Montarsolo
         Sofia House, 1st Floor, 48 Church Street
         Hamilton, Bermuda


SCHRODER EMERGING: Proofs of Claim Filing Is Until Jan. 17
----------------------------------------------------------
Schroder Emerging Market Debt Opportunity Fund Ltd.'s creditors
are given until Jan. 17, 2007, 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.

Schroder Emerging's shareholders agreed 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


SOUTHERN CROSSING: Proofs of Claim Filing Deadline Is on Jan. 24
----------------------------------------------------------------
Southern Crossing Pipeline Holding Co., Ltd.'s creditors are
given until Jan. 24, 2007, to prove their claims to Marco
Montarsolo, 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.

Southern Crossing's shareholders agreed on Dec. 28, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Marco Montarsolo
         Sofia House, 1st Floor
         48 Church Street, Hamilton, Bermuda


TONINAS LTD: Proofs of Claim Filing Deadline Is on Jan. 20
----------------------------------------------------------
Toninas Ltd.'s creditors are given until Jan. 20, 2007, to prove
their claims to James A.F. Watlington, 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.

Toninas Ltd.'s shareholders agreed on Dec. 30, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         James A.F. Watlington
         Alexanders 73
         Front Street, 4th Floor
         Hamilton, Bermuda




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


ALCATEL-LUCENT: Dresdner Analysts Maintain "Sell" Rating
--------------------------------------------------------
Analysts at Dresdner Kleinwort maintain their "sell" rating on
Alcatel-Lucent, News Ratings reports.

According to the report, the target price is set to EUR8.

In a research note published on Jan. 9, 2007, the analysts
mentioned that Tellabs' sales and earnings warning for the
December quarter is a cause for concern regarding Alcatel-
Lucent's first combined earnings results, scheduled to be
reported on February 9, the report says.

The report points out that the company's near-term performance
is likely to be negatively impacted by the overspending in North
America and Bell South's capex freeze prior to its merger AT&T,
the analysts say.

                   About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


BANCO DO BRASIL: Eyes 60 Financial Pacts with Non-Bank Partners
---------------------------------------------------------------
Banco do Brasil commercial director Eduardo Martins told
Business News Americas that the firm expects to have at least 60
financial services accords with non-bank partners having yearly
revenues of over BRL300 million by the end of 2007.

Mr. Martins explained to BNamericas, "Since we began these
partnerships 90 days ago, we've granted about BRL100 million in
credit, which is a decent amount, but we plan to reach a minimum
of 1bn reais by the end of the year."

Banco do Brasil expects the number of private label credit cards
issued through the partnerships to increase to 1.5 million by
the end of the year, from 100,000, BNamericas says, citing Mr.
Martins.

Mr. Martins told BNamericas, "Not everybody has access to
banking services.  The bank wants to increase business to non-
account holders and then turn them into Banco do Brasil account
holders."

Mr. Martins said that Banco do Brasil is talking with the
Brazilian central bank the possibility of offering checking
accounts through agreements, BNamericas notes.

According to BNamericas, Mr. Martins said that Banco do Brasil
will disclose accords with an automaker and a regional furniture
and appliance retailer.  The bank also expects to conclude
additional eight agreements within the next two weeks.

The report says that Banco do Brasil ended 2006 with eight
financial services deals, including partnerships with Brasil
Telecom and Telefonica, as well as a private label credit card
venture with Gol and MasterCard.

Banco do Brasil signed financial services accords with HC Pneus
and Todimo, according to BNamericas.

Mr. Martins told BNamericas that Banco do Brasil will recruit
small and medium-sized enterprises with yearly revenues of up to
BRL200 million into the program.

Banco do Brasil entered the financial services accords segment
behind Banco Bradesco, Itau and Unibanco, BNamericas says,
citing Mr. Martins.

"But our technology has caught the attention of many retailers
that are already partners with other banks," Mr. Martins
commented to BNamericas.

Banco do Brasil expects many of the retailers to enter new
accords with the bank over the next few years, BNamericas
states, citing Mr. Martins.

Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                        *    *    *

As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counter party credit ratings on
Banco do Brasil SA to 'BB' from 'BB-'.  The foreign and local
currency ratings of this bank are now equalized at 'BB'.  S&P
said the outlook is stable.


BANCO NACIONAL: Extends Project Submission Deadline to Jan. 31
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
extended from Dec. 20, 2006, to Jan. 31, 2007, the deadline for
cooperatives of recyclable material collectors to submit their
projects.  By now, the program has been generating a large
interest and tens of cooperatives' projects have already been
enrolled.  The expectation is that the demand increases up to
the end of this month.

The approved ones will receive non-reimbursable credits to
invest in implementation works, expansion, recovery and
modernization of the physical infrastructure of warehouses;
equipment acquisition; technical assistance and qualification
for cooperators.  The resources come from BNDES' Social Fund.

BNDES' intention is to meet the projects that are eligible in
criteria and gather the necessary conditions for the contracting
support.  The Social Inclusion Area estimates that the first
contracts take place within three months.

The program was released on Oct. 25 by president Luiz Inacio
Lula da Silva.  It will support investments in physical
infrastructure, equipment acquisition, technical assistance and
qualification for cooperators throughout Brazil.

BNDES' financing line was created based on a study of National
Movement of Recyclable Material Collectors or MNCR, coordinated
by Faculdade de Ciencias Economicas da Universidade Federal da
Bahia.  This study relates the cooperatives and collector
associations according to its level and proposes basic modules
of investments for each type of identity, aiming at generating
de new work posts and increasing efficiency.

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating
      * to BB/Positive/-- from  BB/Stable/--

   -- Local currency counterparty credit rating
      * to BB+/Positive/-- from BB+/Stable/--


BANCO NACIONAL: Posts BRL52.3 Billion in Loans in 2006
------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA said in
a statement that it has provided Brazil's business and service
sectors with BRL52.3 billion in loans in 2006, about 11.3%
higher compared with that of 2005.

Business News Americas relates that Banco Nacional's
consolidated results indicated a 1% decline in spending on
infrastructure.  The decrease in overall spending on
infrastructure is connected to the weak performance in releasing
funds indirectly linked to the sector through agriculture.

Banco Nacional told BNamericas that investment in the land
transport sector increased 22% to BRL7.2 billion in 2006,
compared with 2005, due to the increased funding of rail,
highway and passenger transport projects.

Banco Nacional's project approvals section increased 36% to
BRL74.3 billion in 2006, compared with 2005.  Within this area,
the sum ratified for infrastructure projects rose 29%.

Banco Nacional President Damien Fiocca told reporters,
"Industrial projects are more frequent, while those [projects]
for infrastructure mature in the long term.  The expectation is
that there is acceleration [for infrastructure] this year."

Mr. Fiocca is positive that the industry sectors connected to
raw materials, metallurgy, pulp and paper, and chemicals and
petrochemicals will get the most resources from Banco Nacional
this year, BNamericas states.

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating
      * to BB/Positive/-- from  BB/Stable/--

   -- Local currency counterparty credit rating
      * to BB+/Positive/-- from BB+/Stable/--


COMPANHIA ENERGETICA: Investing BRL5 Million in IT Governance
-------------------------------------------------------------
Companhia Energetica de Minas Gerais is investing BRL5 million
to implement ITIL and Cobit best practices for information
technology or IT governance, Agencia Baguete reports.

Business News Americas relates that Companhia Energetica began
implementing the ITIL and Cobit methodologies in 2005.  It
expects to complete the project this year.

According to BNamericas, Companhia Energetica has made 138
guidelines that conform to the US Sarbanes-Oxley accounting
reform act and help IT professionals make decisions.

Companhia Energetica is collaborating with Quint, Hewlett-
Packard and Symantec on the project, BNamericas states.

Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market.  Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix.  Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities.  In addition to those 52 plants, another three
are currently under construction.

Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).

                        *    *    *

Cemig's BRL312,500,000 12.7% debentures due Nov. 1, 2009, carry
Moody's B1 rating.


COMPANHIA SIDERURGICA: Commission Seeks Help on Corus Bid Probe
---------------------------------------------------------------
The European Commission has sought the comments of third parties
interested in the Corus acquisition deal, before it authorizes
Companhia Siderurgica Nacional's bid for the firm, The Economic
Times reports.

According to The Economic Times, the commission is accepting
comments until Jan. 19.

While the anti-trust authorities of the European Union
authorized Tata Steel's offer for Corus on Dec. 22, it still has
to make a decision on the Companhia Siderurgica bid by Feb. 5,
The Economic Times notes.  The UK Takeover Panel has also set a
Jan. 30 deadline for Companhia Siderurgica and Tata Steel to
revise their offers, or the winner would be decided through an
auction.

The Economic Times emphasizes that the Takeover Panel decided
that it would initiate an auction process to decide on the
winner for Corus deal if the competitive situation continues
shortly before Jan. 30.  

The European Commission said in a notice that preliminary
examination indicates that Companhia Siderurgica's offer to
acquire Corus could fall within the scope of its merger and
acquisition regulations.  The commission has asked for
observations from the interested third parties within 10 days.  

The request for third party comments is standard.  It does not
indicate any obstruction for the deal, The Economic Times says,
citing a Companhia Siderurgica spokesperson.

The spokesperson told The Economic Times, "This is just a normal
process and is proceeding as planned."

The notice the Economic Commission released regarding the
Companhia Siderurgica bid is the same as the one that was issued
on Tata's offer for Corus, The Economic Times relates, citing
sources.   The notice on Companhia Siderurgica's bid came out
later because its bid was made later than that of Tata's.  
European Commission ratified Tata's offer in December 2006,
saying the proposed deal would not obstruct effective
competition in the European Union steel market.

Legal experts and investment bankers think that any revised bid
from Tata or Companhia Siderurgica should come by the middle of
January to let the UK Takeover Panel take into account all the
latest developments in the terms and conditions of an auction
process, if needed, The Economic Times states.  

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

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  S&P said the outlook is
stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


DURA AUTOMOTIVE: Panel Wants Information Access Protocol Okayed
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in DURA Automotive
Systems Inc. and its debtor affiliates' bankruptcy cases asks
the U.S. Bankruptcy Court for the District of Delaware to
approve procedures that will not require it to disseminate
confidential and privileged information to general unsecured
creditors.

On April 20, 2005, as part of the Bankruptcy Abuse Prevention &
Consumer Protection Act of 2005, Congress enacted the new
Section 1102(b)(3) of the Bankruptcy Code.  Section 1102(b)(3)
states, a statutory creditors' committee appointed under Section
1102(a) will "provide access to information for creditors who
(i) hold claims of the kind represented by that committee; and
(ii) are not appointed to the committee."  Section 1102(b)(3)(B)
provides that the committee will also "solicit and receive
comments from those creditors.

Representing the Official Committee of Unsecured Creditors, M.
Blake Cleary, Esq., at Young Conaway Stargatt and Taylor LLP, in
Wilmington, Delaware, notes that Section 1102(b)(3) does not
indicate how a statutory creditors' committee should provide
"access," what "information" should be provided, or what it
means to "solicit and receive comments" from creditors.  There
is no legislative history to Section 1102(b)(3) to provide
guidance on the application of this new provision, he adds.

The lack of specificity in Section 1102(b)(3) creates
significant issues for debtors and creditors committees, Mr.
Cleary avers.  He relates that a debtor typically will share
non-public information with a creditors committee and its
retained professionals.  Creditors committees use this
information to assess, among other things, a debtor's capital
structure, opportunities for the restructuring of the debtor's
business in Chapter 11, the results of any revised operations of
the debtor in the bankruptcy case, and the debtor's overall
prospects for reorganization under a Chapter 11 plan.

Statutory creditors committees are typically governed by
confidentiality provisions contained in their bylaws, which
prohibit its members from disclosing non-public information,
Mr. Cleary notes.  Because of these bylaws or other arrangements
made with a debtor regarding confidentiality, a debtor can
ensure that the committee members will keep its information
confidential and will not use confidential information, except
in connection with the Chapter 11 case.

The enactment of Section 1102(b)(3) raises the issue of whether
a statutory creditors committee could be required to share a
debtor's confidential information or otherwise privileged
information with any creditor represented by that committee,
Mr. Cleary tells the Court.

The Creditors Committee also asks the Court to deem its members
and its advisors to be in compliance with Section 1102(b)(3) as
a result of the implementation of procedures that will govern
the dissemination of information to its constituency.

Pursuant to the Procedures, the Creditors Committee will
establish and maintain a Web site to make certain non-
Confidential Information and non-Privileged Information
available to unsecured creditors.

The information available on the Committee Web site will
include:

     * the Petition Date;

     * the case number that relates to the Chapter 11 Cases;

     * the contact information for the Debtors (and any
       information hotlines that they establish), the Debtors'
       counsel and the Committee's counsel;

     * the date by which unsecured creditors must file their
       proofs of claim;

     * the voting deadline with respect to any Chapter 11 plan
       filed in the Debtors' cases;

     * access to the claims docket as and when established by
       the Debtors or any claims and noticing agent retained in
       the Debtors' cases;

     * a general overview of the Chapter 11 process;

     * press releases (if any) made by the Debtors or the
       Committee;

     * filings made by the Debtors with the Securities Exchange
       Commission;

     * the Debtors' monthly operating reports;

     * a list of upcoming omnibus hearing dates;

     * available transcripts from all hearings in the Chapter 11
       cases;

     * important pleadings and orders filed in the Chapter 11
       cases;

     * answers to frequently asked questions;

     * links to other relevant Web sites; and

     * any other information that the Committee, in its sole and
       absolute discretion, deems appropriate which may include
       contact information for entities that have appeared as
       transferees of claims under Rule 3001(e)(2).

In addition to establishing the Web site, the Creditors
Committee will establish an e-mail address to allow unsecured
creditors to send questions and comments in connection with the
Chapter 11 Cases.  A link to this e-mail address will be made
available on the Web site.

Pursuant to the Procedures, within five business days of the
creation of the Web site, the Committee will work with the
Debtors' notice, claims and balloting agent, Kurtzman Carson
Consultants LLC, to serve a notice of the Procedures on those
parties listed in the Debtors' creditor matrix maintained by
Kurtzman.

The Creditor Notice will advise creditors of the of the entry of
the order approving the Procedures, the address of the Committee
Web site and the e-mail address established to allow unsecured
creditors to send questions and comments in connection with the
Chapter 11 Cases.

The Procedures will not authorize or require the Creditors
Committee to provide to any creditor or any other entity, access
to non-public information, including, without limitation,

   (i) non-public information concerning the Debtors' assets,
       liabilities, business operations, business practices,
       business plans, intellectual property and trade secrets,
       financial projections, financial and business analysis
       and compilations and studies relating to the foregoing,
       unless the information becomes generally available to the
       public or is or becomes available to the Committee on a
       non-confidential basis, in each case to the extent that
       the information became so available other than by a known
       violation of contractual, legal or fiduciary obligation
       to the Debtors; and

  (ii) Confidential Information -- communications among
       Committee members in their capacity as such, including
       information regarding specific positions taken by members
       and communications among or between Members and
       Committee-retained professionals.

In addition, the Procedures will not authorize or require the
Creditors Committee to provide any creditor or other entity with
any information subject to the attorney-client privilege or
similar state, federal or other jurisdictional law privilege,
whether the privilege is solely controlled by the Committee or
is a joint privilege with the Debtors or some other party;
provided, however, the Committee will be permitted, but not
required, to provide access to Privileged Information to any
party provided that:

   (a) the Privileged Information is not Confidential
       Information, and

   (b) the relevant privilege is held and controlled solely by
       the Committee.

The Procedures will not require the Creditors Committee to
provide access to information or solicit comments from any
entity that has not demonstrated to the satisfaction of the
Committee, that it holds claims of the kind described in Section
1102(b)(3) of the Bankruptcy Code.

The proposed Procedures, Mr. Cleary asserts, will allow the
Creditors Committee to satisfy its obligation to provide access
to information for general unsecured creditors and to solicit
comments from the creditors, thereby allowing the Committee to
perform its statutory function.

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Section 341(a) Meeting Adjourned Sine Die
----------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
has adjourned sine die the meeting of creditors of Dura
Automotive Systems Inc. and its debtor-affiliates required under
Section 341(a).  The U.S. Trustee had convened the Meeting of
Creditors on Dec. 7, 2006.

The Meeting of Creditors was continued pending the Debtors'
filing of their schedules of assets and liabilities, schedules
of current income and expenditures, and statements of financial
affairs.  The Debtors are expected to file their Schedules in
January 2007.

The Meeting of Creditors offers the opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtors under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent   
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 8;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


GERDAU SA: Will Report Strongest 2006 Results, Analyst Says
-----------------------------------------------------------
Gerdau SA will report the strongest 2006 results among Brazilian
steel producers, Business News Americas reports, citing Pedro
Galdi, an investment analyst with ABN Amro Real Corretora.

Mr. Galdi told BNamericas that Gerdau could post BRL23.8 billion
net sales and BRL3.7 billion net profits in 2006.  In 2005 the
firm had BRL21.7 billion net revenue and BRL3.2 billion net
income.

Mr. Galdi explained to BNamericas, "The steelmaker (Gerdau) will
report the best results for 2006 due to acquisitions abroad and
higher [sales] volume."

According to BNamericas, Gerdau acquired in 2006 a majority
stake in Siderperu, Peru's largest steelmaker.  The firm also
bought steel companies in the United States.

Demand for long steel products is usually lower as a year
approaches its end, the reason for weaker demand in the fourth
quarter of 2006, BNamericas states, citing Mr. Galdi.

"It is a holiday period in Brazil, and winter in the Northern
Hemisphere," Mr. Galdi explained to BNamericas.

Headquartered in Porto Alegre, Brazil, Gerdau SA --
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 SA,
   -- Gerdau Acos Especiais SA and
   -- Gerdau Comercial de Acos SA;

                        *    *    *

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 SA 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.


NOSSA CAIXA: Accepts Milton Luiz de Melo as Chief Executive
-----------------------------------------------------------
Banco Nossa Caixa said in a statement that it has approved the
state government's nomination of Milton Luiz de Melo Santos as
chief executive officer.

As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2007, the Sao Paulo state government nominated central
bank executive Milton Luiz de Melo Santos as chief executive
officer for Nossa Caixa.  Henrique Meirelles, the central bank
president, said that Jose Serra, the Sao Paulo state governor,
had invited Mr. Santos to lead the bank.  

The central bank still has to ratify the nomination, Business
News Americas states.

Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA --
http://www.nossacaixa.com.br/-- operates as a multiple bank  
offering banking and financial services through commercial and
loan portfolios, including real estate and foreign exchange, as
well as administering credit cards.  Through its subsidiary, it
operates with private pensions.  Nossa Caixa uses demand, saving
and time deposits, which include judicial deposits, to fund its
operations.  The main focus of Nossa Caixa is to attend
individuals, especially public employees and small and medium-
sized companies in Sao Paulo, as well as state and municipal
government agencies.  As the official bank for the government of
the State of Sao Paulo, it administers the state's resources and
state lotteries and takes care of the payroll of the indirect
state administration and part of the direct administration.  As
of Dec. 31, 2005, the Bank's network consisted of 2,579
attendance points in its distribution network.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa SA's long-term foreign currency deposit rating to B1 from
B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.


PETROLEO BRASILEIRO: Cidade do Rio Platform Goes Online
-------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras disclosed that the Cidade
do Rio de Janeiro FPSO went online on Jan. 9, 2007, in the
Espadarte field, in the Campos Basin.

The Cidade do Rio de Janeiro vessel-platform will be capable of
lifting up to 100,000 barrels of oil and 2.5 million cubic
meters of gas per day. Installed at a water depth of 1,350
meters, the new platform can store 1.6 million barrels of oil.  
The Cidade do Rio de Janeiro is an FPSO (floating, production,
storage, and offloading) unit that is 320 meters long, 54 meters
wide, and 30 meters tall, corresponding to a 10 story building.

The new platform is expected to reach its full production
capacity during 2007.  When operating at full load, it will be
connected to nine underwater wells, five of which for oil and
natural gas production while the other four are used for water
injection.  The FPSO has several technological innovations
onboard which includes a new oil-pumping system developed by the
Petrobras Research Center or Cenpes. The underwater centrifuge
pumping system, also known as S-BCSS, assists in lifting the oil
from the field to the platform.  

The great advantage, compared to the traditional systems, is
that it is installed externally to the well, on the sea floor,
expediting pump maintenance and replacement.  This technology
will slash operating costs, facilitate remote intervention in
the connected wells, and do away with completion rig use, one of
the most expensive equipment to lease in the international
market.  Contracted from MODEC International LCC, the Cidade do
Rio de Janeiro FPSO will make a significant contribution to
maintaining Brazilian oil self-sufficiency.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- 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.

Petrobras has operations in China, India, Japan, and Singapore.

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 Lease Contract with Larsen Oil
--------------------------------------------------------
Petroleo Brasileiro SA, the state-run oil company of Brazil, has
signed a five-year lease contract with Larsen Oil & Gas for a
semi-submersible drilling rig, Business News Americas reports.

Petrolia Drilling, Larsen's partner, said in a filing with the
Oslo stock exchange that the gross value of the lease contract
is US$645 million.

The drilling rig will have capacity to run at water depths of
2,400 meters.  It will start operating in offshore Brazil in
2009, BNamericas states.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- 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.

Petrobras has operations in China, India, Japan, and Singapore.

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: P-52 Oil Rig Construction Completed
--------------------------------------------------------
Brasfels, the largest shipyard in the Rio de Janeiro state,
completed the construction of a 180,000-barrels-a-day P-52 oil
rig that Petroleo Brasileiro SA, the Brazilian state oil firm,
aims to start operating by the end of the first quarter of this
year, the Estado newswire reports.

Estado relates that the P-52 rig is expected to produce from the
Roncador field in the Campos Basin off the coast of Rio de
Janeiro.  It will also have the capacity to compress about 9.3
million cubic meters of natural gas daily.

Dow Jones Newswires underscores that Petroleo Brasileiro expects
to produce 1.979 million barrels per day this year, which is
higher compared with analysts' estimates of about 1.8 million
barrels per day last year.

Petroleo Brasileiro expects domestic production to average 2.23
million barrels of oil equivalent daily in 2007, Dow Jones
states.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, and 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.


RIO POMBA: Minas Gerais Gov't Shuts Down Company After Accident
---------------------------------------------------------------
The Minas Gerais state government has closed down bauxite mining
company Rio Pomba Cataguases after an environmental accident,
Agencia Minas reports.

Business News Americas relates that a residue dam in Mirai was
ruptured, releasing two million cubic meters of mud into river
Fuba.

According to Agencia Minas, the material is not toxic.  But Rio
Pomba must pay a fine and is not allowed to rebuild the dam, due
to the risk of future accidents.  The dam broke in March 2006.

The extent of the damage has yet to be calculated and it could
vary from BRL500,000 to BRL50 million.  Works are underway in
the region to evaluate the situation, BNamericas says, citing a
state spokesperson.

The spokesperson told BNamericas, "The [Minas Gerais] government
has closed for good both bauxite mining and treatment operations
at Rio Pomba."

Rio Pomba has the right to make an appeal against the state's
decision, BNamericas states, citing the spokesperson.


SANTANDER BANESPA: Denies Firm's Sale to Banco Bradesco
-------------------------------------------------------
Santander Banespa has denied rumors that it is about to be sold
to Banco Bradesco, Agencia Estado reports.

Santander Banespa Vice President Miguel Jorge told Agencia
Estado, "We've made it clear several times there are no
operations in Latin America without a strong presence in Brazil.  
Brazilian banks are not used to competition."

Santander lost interest in the Brazilian market after handing
over control of the Sao Paulo public sector payroll to Nossa
Caixa on Jan. 1 under an accord reached when Santander acquired
former Sao Paulo state bank Banespa in November 2000, Business
News Americas relates, citing some analysts.

Mr. Jorge told Agencia Estado that Santander Banespa held on to
500,000 Sao Paulo state workers and lost less than 5% of all
account holders.

The Santander Banespa group is comprised of Santander Brasil,
Santander, Santander Meridional and Banespa, and is a subsidiary
of Spanish financial group Grupo Santander.  Santander Banespa
is the biggest foreign-owned bank in Brazil and the fourth
largest on the overall ranking for private banks.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained its
'BB' ratings on both of Banco Santander Banespa SA's foreign and
local currency counterparty credit ratings.

   -- Foreign currency counterparty credit rating

      * to BB/Positive/B from   BB/Stable/B

   -- Local currency counterparty credit rating

      * to BB/Positive/B  from  BB/Stable/B

   -- Brazil national scale rating

      * brAA/Positive/brA-1 from brAA/Stable/brA-1


VOLKSWAGEN AG: Wolfgang Bernhard Leaves Board of Management
-----------------------------------------------------------
Wolfgang Bernhard, Chairman of the Volkswagen brand group and
member of Volkswagen AG's Board of Management, left the company
by mutual agreement as of Jan. 31, 2007, as part of the
reorganization of responsibilities within the Volkswagen Group.

Dr. Bernhard has been a member of Volkswagen AG's Board of
Management since Feb. 1, 2005; since May 2005, he has been
responsible for the Volkswagen brand as Chairman of the brand
group.

The company thanked Dr. Bernhard for his work in the past years
and wishes him all the best for his future career.  Prof. Dr.
Martin Winterkorn, who will take over the management of the
Volkswagen brand group in addition to his present duties,
emphasized that Dr. Bernhard had furthered the process of
restructuring of the company and hence increased the
productivity of the Volkswagen brand.

Headquartered in Wolfsburg, Germany, the Volkswagen Group
-- http://www.volkswagen.de/-- is one of the world's leading   
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.  Volkswagen has an assembly plant in Mexico.

                        *    *    *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

Volkswagen also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


WEIGHT WATCHERS: S&P Holds Corporate Credit Rating at BB
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate  
credit rating for New York, New York-based commercial weight-
loss service provider Weight Watchers International Inc.  

At the same time, all Weight Watchers' ratings were removed from
CreditWatch, where they were placed with negative implications
on Dec. 20, 2006, reflecting Weight Watchers' increasingly
aggressive financial policy after the company's disclosure that
it plans to launch a "modified Dutch auction" self-tender offer
for up to 8.3 million shares of its common stock at a price
range between US$47.00 and  US$54.00 per share.

At the same time, Standard & Poor's assigned its 'BB' rating to  
the company's proposed US$700 million term loan A-1 and  
US$500 million term loan B, with a recovery rating of '2',  
indicating the expectation for substantial recovery of principal  
in the event of a payment default.  

Standard & Poor's also lowered the existing bank loan ratings on  
WWI's US$350 million term loan A and US$500 million revolving
credit facility to 'BB' from 'BB+' and the recovery rating on
these facilities to '2' from '1'.  

The rating outlook is negative.  

Proceeds from the new US$1.2 billion of term loans will be used
to finance the tender offer and to repay outstanding debt at
wholly owned subsidiary WeightWatchers.com.  Artal Luxembourg
S.A., Weight Watchers' majority shareholder, plans to retain its
55.2% pro rata share of common stock outstanding following the
completion of the Dutch auction repurchase.  WWI intends to
repay the outstanding balance of WW.com's senior secured credit
facilities, which consist of a US$170 million first-lien term
loan and a US$45 million second-lien term loan.  

Standard & Poor's expects all ratings on WW.com to be withdrawn  
upon the completion of the planned refinancing of its existing  
senior secured debt.


WEIGHT WATCHERS: Moody's Rates Proposed US$1.2 Bil. Loan at Ba1
---------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the proposed
US$1.2 billion senior secured term loan facility of Weight
Watchers International, Inc. and affirmed existing credit
ratings.

The rating outlook remains stable.

The proceeds from the US$1.2 billion credit facility are
expected to be used to fund share purchases, refinance the
indebtedness of its subsidiary, WeightWatchers.com, and pay
related fees and expenses.  The existing US$850 million credit
facility is expected to remain outstanding at closing.

On Dec. 18, 2006, Weight Watchers reported that it commenced a
self-tender offer for up to 8.3 million shares of its common
stock and also entered into an agreement with Artal Holdings Sp.
z o.o., its majority shareholder.  The agreement with Artal
provides that Weight Watchers will purchase from Artal shares of
its common stock so that Artal's percentage ownership in Weight
Watchers after the tender offer will be substantially equal to
its current level of approximately 55.2%.

Prior to its recent report, Weight Watchers' credit metrics were
strong for the Ba1 rating category, but reflected uncertainty
related to the firm's target capital structure and expected
financial policies.

Although the reported transaction will result in pro forma
leverage and cash flow metrics that are weak for the rating
category, these metrics are expected to improve in 2007.

Moody's expects profitability in 2007 to benefit from new
business initiatives and expects the company to utilize internal
cash generation to repay a portion of the transaction
indebtedness.

The Ba1 corporate family rating continues to reflect high levels
of pretax income, impressive profit margins and solid geographic
diversification.  The ratings are constrained by reliance on a
single brand and potential threats from new competitors and
products.

Moody's took these rating actions for Weight Watchers:

   -- Assigned US$700 million add-on senior secured term loan A
      facility due 2013, Ba1, LGD3, 34%;

   -- Assigned US$500 million add-on senior secured term loan B
      facility due 2014, Ba1, LGD3, 34%;

   -- Affirmed US$500 million senior secured revolving credit
      facility due 2011, Ba1, LGD3, 34%;

   -- Affirmed US$350 million senior secured term loan A
      facility due 2011, rated Ba1, to LGD3, 34%;

   -- Affirmed Corporate Family Rating, Ba1; and,

   -- Affirmed Probability of Default Rating, Ba2.

Moody's affirmed the credit ratings of WeightWatchers.com and
will withdraw such ratings upon the repayment of its rated debt
with the proceeds from the add-on term loan facilities.

The stable ratings outlook anticipates solid revenue and
profitability growth in 2007 driven by recent franchise
acquisitions, implementation of price increases in portions of
North America and Europe, new marketing campaigns and wider
roll-out of new monthly and seasonal membership plans.  Free
cash flow generation is expected to be primarily utilized for
debt repayment.

The company's willingness to substantially increase leverage in
connection with its pending share purchase is inconsistent with
an investment grade rating profile.  Consequently, the ratings
are unlikely to be upgraded in the intermediate term.  

However, over the long term, an upgrade is possible if the
company:

   -- grows profitability or repays indebtedness such that EBIT
      coverage of interest and free cash flow to debt are
      sustained for a few years at over 4.5x and 12%,
      respectively; and,

   -- demonstrates a commitment to conservative financial
      policies.

The ratings could be pressured by another large share repurchase
in the near term or a failure to achieve anticipated
improvements in credit metrics during the next year.  Credit
metrics could remain weak within the rating category if
attendance levels or operating margins decline and term loan
repayments are materially below Moody's expectations.  A
downgrade is possible if EBIT coverage of interest and free cash
flow to debt are expected to be sustained at less than 2.5x and
8%, respectively.

Headquartered in New York, New York, Weight Watchers is a
leading global provider of weight management services, operating
globally through a network of company owned and franchised
operations.   The company has presence in 30 countries including
Brazil, the Netherlands, and New Zealand.  Revenues for the
twelve months ended Sept. 30, 2006, were US$1.2 billion.




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


APRECIA ASSET: Creditors Must File Proofs of Claim by Jan. 15
-------------------------------------------------------------
Aprecia Asset Funding's creditors are required to submit proofs
of claim by Jan. 15, 2007, to the company's liquidators:

          David Dyer
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

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

Aprecia Asset's shareholders agreed on Nov. 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


APRECIA ASSET: Shareholders to Gather for Jan. 15 Final Meeting
---------------------------------------------------------------
Aprecia Asset Funding's final shareholders meeting will on
Jan. 15, 2007, at:
          
          Deutsche Bank (Cayman) Ltd.
          Elizabethan Square, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          David Dyer
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8244
          Fax: (345) 949 5223


ARBOR II: Creditors Must Submit Proofs of Claim by Jan. 16
----------------------------------------------------------
Arbor II Ltd.'s creditors are required to submit proofs of claim
by Jan. 16, 2007, to the company's liquidators:

          Jamal Young
          Janet Crawshaw
          P.O. Box 1109
          Grand Cayman, Cayman Islands

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

Arbor II's shareholders agreed on Dec. 1, 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:

          Marguerite Britton
          P.O. Box 1109
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


ARBOR II: Liquidator to Present Wind Up Progress on Jan. 16
-----------------------------------------------------------
Arbor II Ltd.'s final shareholders meeting will be at 10:00 a.m.
on Jan. 16, 2007, at:
          
          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


GENERAL MOTORS: Kirk Motors No Longer International Sales Rep
-------------------------------------------------------------
Kirk Motors general manager Carl Gordon told Caymanian Compass
that the firm's contract as the exclusive sales and service
representative of General Motors International Sales, a Cayman
Islands-based firm that handles inventory and logistics for
General Motors dealerships across the Caribbean and Latin
America, has ended.

Caymanian Compass relates that the 33-year contract ended on
Dec. 31, 2006.

Mr. Gordon told Caymanian Compass that the contract was
terminated by mutual agreement.

According to the report, Kirk Motors will continue to sell its
inventory of General Motors vehicles.  However, the firm will no
longer be taking new shipments.

Caymanian Compass underscores that General Motors International
conducted an open bidding process to select Cayman's new General
Motors products dealer.  

The new General Motors dealership contract will be a far more
modern and comprehensive one showing the many changes that have
occurred in the automotive sector over the past 33 years,
Caymanian Compass says, citing General Motors International
president and managing director Nicolas Wsevolojskoy.

Mr. Wsevolojskoy told Caymanian Compass, "We are absolutely not
excluding Kirk from the bidding process, indeed we welcome their
submission, but it was time to make some necessary changes that
meet the needs of 21st Century customers.  We have a number of
very strong candidates we are currently looking at."

Caymanian Compass underscores that a decision on the contract is
expected in about a month.

Meanwhile, Advance Automotive, a Mazda dealership and a general
service center specializing in all vehicle types, signed a one-
year contract as the Cayman's new authorized General Motors
service provider.  The company will be responsible for honoring
all warranties and service for General Motors vehicles bought at
Kirk Motors, Caymanian Compass notes.  

Mr. Wsevolojskoy told Caymanian Compass that the firm chose
Advance Automotive due to a pre-existing relationship.

According to Caymanian Compass, Advance Automotive
proprietor/director Charles Markman has provided service for
Kirk Motors for the past 10 years.

Mr. Wsevolojskoy told Caymanian Compass, "With the quality
leadership of Charles Markman, Advance has proven itself to be
just the kind of business we were looking for to provide our
customers with an attractive, impeccably maintained location and
an unparalleled level of professionalism and service."

"We are happy with this development as I think the hard work and
dedication of our staff is the reason for this great news.  We
are already expanding our existing 15-member team, and this is a
truly exciting development for our business and we know we will
be able to offer the service GM (General Motors) clients have
come to expect," Mr. Markman commented to Caymanian Compass.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world.  It has manufacturing operations in
33 countries and its vehicles are sold in 200 countries.  GM
sells cars and trucks under these brands: Buick, Cadillac,
Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab,
Saturn and Vauxhall.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006.  S&P said the outlook is
negative.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 billion secured term loan of General Motors
Corp.  The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of General Motors and Saturn
Corp.


IRP SECOND: Creditors Have Until Jan. 15 to File Proofs of Claim
----------------------------------------------------------------
IRP Second Funding Co.'s creditors are required to submit proofs
of claim by Jan. 15, 2007, to the company's liquidators:

          David S. Walker
          Bernard McGrath
          Caledonian Bank & Trust Ltd.
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043GT, George Town
          Grand Cayman, Cayman Islands

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

IRP Second's shareholders agreed on Nov. 24, 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:

          Darina Fennell
          Caledonian Bank & Trust Ltd.
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043GT, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 4966
          Fax: (345) 814-4859


JOFML I: Proofs of Claim Filing Deadline Is Set for Jan. 15
-----------------------------------------------------------
JOFML I Cayman Ltd.'s creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidators:

          David Dyer
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

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

JOFML I's shareholders agreed on Nov. 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


JOFML I: Shareholders to Convene for Final Meeting on Jan. 15
-------------------------------------------------------------
JOFML I Cayman Ltd.'s final shareholders meeting will be on
Jan. 15, 2007, at:
          
          Deutsche Bank (Cayman) Ltd.
          Elizabethan Square, George Town
          Grand Cayman, Cayman

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          David Dyer
          P.O. Box 1984GT,George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8244
          Fax: (345) 949 5223


KARA INVESTMENTS: Deadline for Proofs of Claim Filing Is Jan. 15
----------------------------------------------------------------
Kara Investments Ltd.'s creditors are required to submit proofs
of claim by Jan. 15, 2007, to the company's liquidators:

          Condor Nominees Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          4th Floor FirstCaribbean House
          25 Main Street, George Town
          Grand Cayman, Cayman Islands

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

Kara Investments' shareholders agreed on Nov. 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


LRM SECOND: Proofs of Claim Filing Is Until Jan. 15
---------------------------------------------------
LRM Second Co.'s creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidators:

          David S. Walker
          Bernard McGrath
          Caledonian Bank & Trust Ltd.
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043GT, George Town
          Grand Cayman, Cayman Islands

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

LRM Second's shareholders agreed on Nov. 24, 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:

          Darina Fennell
          Caledonian Bank & Trust Ltd.
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043GT, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 4966
          Fax: (345) 814-4859


MARUBENI LEASING: Final Shareholders Meeting Is Set for Jan. 15
---------------------------------------------------------------
Marubeni Leasing (Cayman) Ltd.'s final shareholders meeting will
on Jan. 15, 2007, at:
          
          1-4-2, Ohtemachi
          Chiyoda-ku, Tokyo, Japan

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Katsuhide Omuro
          c/o Maples and Calder, Attorneys-at-law
          P.O. Box 309GT, Ugland House
          South Church Street, George Town
          Grand Cayman, Cayman Islands


RG RECEIVABLES: Last Day for Claims Filing Is on Jan. 15
--------------------------------------------------------
RG Receivables Co., Ltd.'s creditors are required to submit
proofs of claim by Jan. 15, 2007, to the company's liquidators:

          David Dyer
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

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

RG Receivables' shareholders agreed on Nov. 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


RG RECEIVABLES: Calls Shareholders for Final Meeting on Jan. 15
---------------------------------------------------------------
RG Receivables Co., Ltd.'s final shareholders meeting will be on
Jan. 15, 2007, at:
          
          Deutsche Bank (Cayman) Ltd.
          Elizabethan Square, George Town
          Grand Cayman, Cayman

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          David Dyer
          P.O. Box 1984GT,George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8244
          Fax: (345) 949 5223


SEE HUP SENG: Appoints Vice-Chairman & Directors
------------------------------------------------
See Hup Seng Limited disclosed Jan. 10, 2007, that it has
appointed:

   * Lee Chee Seng, as the company's Vice Chairman and Director;
     and

   * Goh Yeo Hwa as the company's Director.

Mr. Lee has been the Executive Director of Jiutian Chemical
Group Ltd, which is responsible for corporate finance and
strategic planning.  Between April 2001 and November 2003,
Mr. Lee served as the Non-executive Director of Malaysian
Plantation Bhd, a Malaysian holding company for Alliance Bank
Malaysia, and was a member of the board on its banking and
finance subsidiaries.

On the other hand, Mr. Go has been the Director of Wee Hur
Construction Pte Ltd for the past 10 years.

                    About See Hup Seng

See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods.  Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding.  The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.

                     Significant Doubt

As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's financials for the
year 2005, Moore Stephens -- See Hup Seng's independent
auditors -- expressed, on April 7, significant doubt in the
company's ability to continue as going concern, citing the
company's losses and net current liabilities.  Moore Stephens
adds that the ability of the group and the company to continue
as going concerns is dependent the company's debt restructuring
exercise.


TRI-COLUMN: Creditors Must File Proofs of Claim by Jan. 15
----------------------------------------------------------
Tri-Column 1 Ltd.'s creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidators:

          Jamal Young
          Janet Crashaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands


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

Tri-Column's shareholders agreed on Dec. 1, 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:

          Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


TRI-COLUMN 1: Liquidator to Present Wind Up Accounts on Jan. 15
---------------------------------------------------------------
Tri-Column 1 Ltd.'s final shareholders meeting will at 10:00
a.m. on Jan. 15, 2007, at:
          
          HSBC Financial Services Ltd.
          P.O. Box 1109, Grand Cayman  
          KY1-1102, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Jamal Young
          Janet Crawshaw
          Attn: Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


TRI-COLUMN 2: Filing of Proofs of Claim Is Until Jan. 15
--------------------------------------------------------
Tri-Column 2 Ltd.'s creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidators:

          Jamal Young
          Janet Crashaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands

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

Tri-Column 2's shareholders agreed on Dec. 1, 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:

          Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755


TRI-COLUMN 2: Final General Meeting Is Set for Jan. 15
------------------------------------------------------
Tri-Column 2 Ltd.'s final shareholders meeting will at 10:15
a.m. on Jan. 15, 2007, at:
          
          HSBC Financial Services Ltd.
          P.O. Box 1109, Grand Cayman  
          KY1-1102, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Jamal Young
          Janet Crawshaw
          Attn: Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


TRI-COLUMN 3: Calls Shareholders for Jan. 15 Final Meeting
----------------------------------------------------------
Tri-Column 3 Ltd.'s final shareholders meeting will at 10:30
a.m. on Jan. 15, 2007, at:
          
          HSBC Financial Services Ltd.
          P.O. Box 1109, Grand Cayman  
          KY1-1102, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Jamal Young
          Janet Crawshaw
          Attn: Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


TRI-COLUMN 3: Last Day to File Proofs of Claim Is on Jan. 15
------------------------------------------------------------
Tri-Column 3 Ltd.'s creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidators:

          Jamal Young
          Janet Crawshaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands

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

Tri-column 3's shareholders agreed on Dec. 1, 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:

          Marguerite Britton
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


WINDERMERE CORP: Last Day to File Proofs of Claim Is on Jan. 15
----------------------------------------------------------------
Windermere Corp. I's creditors are required to submit proofs of
claim by Jan. 15, 2007, to the company's liquidator:

          David Dyer
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

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

Windermere Corp.'s shareholders agreed on Nov. 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


WINDERMERE CORP: Sets Final Shareholders Meeting on Jan. 15
-----------------------------------------------------------
Windermere Corp. I's final shareholders meeting will be on
Jan. 15, 2007, at:
          
          Deutsche Bank (Cayman) Ltd.
          Elizabethan Square, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          David Dyer
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8244
          Fax: (345) 949 5223


WIZARD MANAGEMENT: Proofs of Claim Filing Deadline Is on Jan. 15
----------------------------------------------------------------
Wizard Management Corp.'s creditors are required to submit
proofs of claim by Jan. 15, 2007, to the company's liquidators:

          David Dyer
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands


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

Wizard Management's shareholders agreed on Nov. 29, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


WIZARD MANAGEMENT: Last Shareholders Meeting Is Set for Jan. 15
---------------------------------------------------------------
Wizard Management Corp.'s final shareholders meeting will be on
Jan. 15, 2007, at:
          
          Deutsche Bank (Cayman) Ltd.
          Elizabethan Square, George Town
          Grand Cayman, Cayman

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          David Dyer
          P.O. Box 1984GT,George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8244
          Fax: (345) 949 5223




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


ARAMARK CORP: Fitch Expects to Cut Issuer Default Rating to B
-------------------------------------------------------------
Fitch expects to downgrade the Issuer Default Rating for both
ARAMARK Corp. and its wholly owned subsidiary, ARAMARK Services,
Inc., to 'B' from 'BB-' and rate the proposed financings of
ARAMARK Corp. as:

   1) US$600 million revolving senior secured credit facility
      due 2013 'BB-/RR2';

   2) US$3.66 billion senior secured term loans due 2014
      'BB-/RR2';

   3) US$250 million senior secured synthetic letter of
      credit facility due 2013 'BB-/RR2';

   4) US$1.7 billion senior unsecured notes due 2015 'B-/RR5';

   5) US$570 million senior subordinated notes due 2017
      'CCC+/RR6';

In addition, the rating for the US$250 million senior unsecured
notes due 2012 is expected to be downgraded to 'CCC+/RR6' from
'BB-'.

The assignment of these ratings is pending review of the final
transaction documentation.  Upon closing of the transaction,
Fitch expects to withdraw its 'BB-' unsecured bank facility
rating and withdraw its 'BB-' senior unsecured notes rating for
existing senior unsecured notes due 2007 and 2008 with the
successful completion of debt tender offers.  Fitch also expects
that the Negative Rating Watch will be resolved and the Outlook
will then be Stable.

The ratings reflect ARAMARK's substantially higher leverage
ratio and debt service requirements following the completion of
its leveraged buyout (LBO) and Fitch's expectations for
significantly reduced free cash flow.  ARAMARK is in the process
of being acquired by management together with a consortium of
private equity firms in an LBO for approximately US$8.5 billion.  
The transaction is to be financed through approximately US$2
billion in equity commitments with the remainder consisting of
various debt instruments noted above.  The transaction is
expected to close in late January 2007.

Pro forma September 29, 2006 total adjusted leverage is expected
to be approximately 7.0 times with interest coverage at
approximately 1.6x. Fitch expects credit protection measures to
remain near pro forma levels through the intermediate term.  The
ratings also incorporate potential margin pressure from
competitive pricing and higher operating costs.

Positively, the ratings and outlook reflect ARAMARK's leading
positions in its core services, brand recognition, a well
diversified customer portfolio, and high customer retention
rates.  In addition, ARAMARK's operating performance has been
relatively stable through various market conditions, including
the company's exposure to unforeseen events over the last couple
of years.

The expected Stable Outlook is also supported by the company's
adequate liquidity position pro forma the proposed transaction,
which includes US$103 million of pro forma cash, US$600 million
revolving credit facility, and a US$250 million accounts
receivable securitization program.  With the closing of the LBO
transaction, Fitch believes that ARAMARK will have limited
ability to improve its credit protection measures in the next
few years.  However the company's stable organic revenue growth
and solid market positions should limit any significant
deterioration of credit measures.

In the event that the senior unsecured and senior subordinated
note offerings are not completed by the transaction's close,
ARAMARK has in place a committed bridge loan facility to fund
the remainder of the transaction's purchase price.  The bridge
loans will be subordinated to the new senior secured credit
facilities.  The security for the senior secured credit
facilities is expected to include a first-priority pledge on all
capital stock held at the holding company, the borrower, and any
subsidiary guarantor; a perfected first-priority security
interest in the assets of the holding company, borrower, and
subsidiary guarantors.

According to company filings, the 2012 notes will only be
guaranteed by the holding company, ARAMARK Corporation, and will
not be guaranteed by the company's operating subsidiaries,
thereby resulting in structural subordination of these notes in
relation to all of the new debt issuances which will be fully
and unconditionally guaranteed by substantially all of the
company's domestic material operating subsidiaries.  The
indenture for the 2012 bonds generally provides no protection
from a change in control event and does not limit the company's
ability to incur additional indebtedness.

The recovery ratings and notching reflect Fitch recovery
expectations under a distressed scenario.  ARAMARK's recovery
ratings reflect Fitch's expectation that the enterprise value of
the company, and hence, recovery rates for its creditors, will
be maximized in a restructuring scenario, rather than a
liquidation.  The 'RR2' recovery rating for the company's credit
facilities reflects Fitch belief that 71-90% recovery is
reasonable given its priority position.  The recovery rating of
'RR5' for the US$1.7 billion of senior unsecured notes, 'RR6'
for the US$570MM of senior subordinated notes and 'RR6' US$250MM
5% senior unsecured notes due 2012 reflects Fitch's estimate
that negligible recovery would be achievable due to their
position in the capital structure.

Headquartered in Philadelphia, ARAMARK Corp. --
http://www.aramark.com/-- is a leader in professional services,
providing food services, facilities management, and uniform and
career apparel to health care institutions, universities and
school districts, stadiums and arenas, and businesses around the
world.  It has approximately 240,000 employees serving clients
in 20 countries, including Belgium, Czech Republic, Germany,
Ireland, UK, Mexico, Brazil, Chile, among others.




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


BANCOLOMBIA: President & Vice President Get Reinstated
------------------------------------------------------
As a consequence of the Attorney General's Office decision to
revoke the order determining the house arrest of Jorge Londono
Saldarriaga and Federico Ochoa Barrera, both informed
Bancolombia's board of directors of their decision to terminate
the temporary leave of absence that had been approved for the
temporary suspension of their functions as President, and
Executive and Services Vice President of the company,
respectively.

The decision of the officers is based on the fact that the
Attorney General's Office revocation on Jan. 10, 2007, of its
previous order provides for their immediate and unconditional
release and consequently they can resume their activities.

Simultaneously, the board of directors terminated the
appointment of Mr. Jairo Burgos De La Espriella as acting
President of Bancolombia for the duration of Mr. Londono's
temporary leave of absence.

As reported in the Troubled Company Reporter-Latin America on
Jan. 9, 2007, the Attorney General ordered the house arrest of
Messrs. Londono and Ochoa, pending the outcome of fraud
investigation on the 1997 merger between Banco Industrial
Colombiano and Banco de Colombia that led to the creation of
Bancolombia.  A court-appointed arbitrator in Bogota ordered
earlier this year that Bancolombia pay US$25 million to the
Gillinski family, who were the former owners of Banco de
Colombia, as the family was awarded a smaller stake in the
merged bank than they were entitled to receive.  Banco
Industrial funded its acquisition of Banco de Colombia with
loans for US$318 million taken out by its affiliate in Panama
and which were illegally transferred as debt onto Bancolombia's
balance sheet.  Prosecutors said that Mr. Saldarriaga and other
Banco Industrial officials at that time failed to fulfill their
promise to inject US$150 million into Bancolombia.

However, the Colombian Constitutional Court decided to reopen
the criminal investigation at the behest of the Gilinski family,
which was the largest shareholder of the former Banco de
Colombiano, BNamericas says.

BNamericas relates that the Gilinski family was involved in a
legal dispute with Bancolombia in 1998 in which it sought COP1.5
trillion in compensation.  Citing Invercol analyst Jos Fernando
Restrepo, BNAmericas relates that the family is trying to reopen
past accusations to use against the bank.

"The Gilinskis are trying to revive accusations made in the
past, contributing to the case in Colombia evidence that had
been dismissed by a New York City judge. We believe the
Gilinskis are running a smear campaign against Bancolombia
executives via the media," Mr. Restrepo told BNamericas.

Headquartered in Medellin, Colombia, Bancolombia SA --
http://www.bancolombia.com.co-- operates as a commercial bank.
It organizes its activities into three primary divisions: Retail
and Small and Medium-Sized Enterprises (SMEs) Banking, Corporate
Banking, and Mortgage & Building Banking.  The bank offers
traditional banking products and services, like checking
accounts, saving accounts, time deposits, lending (including
overdraft facilities), mortgage loans, personal and corporate
loans, credit cards and cash management services.  It also
offers non-traditional products and services, like pension
banking, bancassurances, international transfers, fiduciary and
trust services, brokerage services and investment banking.

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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 2, 2007, Moody's Investors Service placed the D+ bank
financial strength rating of Bancolombia SA on review for
possible downgrade.  Bancolombia's foreign currency deposit
ratings were affirmed at Ba3/Not-Prime.


GRAN TIERRA: Commences Drilling Operations in Colombia
------------------------------------------------------
Gran Tierra Energy Inc. is continuing well testing operations in
Argentina and has initiated drilling operations in Colombia.  In
addition, gas production has been re-established at the
previously shut-in Nacatimbay field in the Nacatimbay block of
Argentina.

Testing is continuing on the Puesto Climaco-2 sidetrack in the
Vinalar block in Argentina.  Gran Tierra holds a 50% working
interest in this block.  A second short sidetrack was required
when logging tools were stuck in the hole during initial
reservoir evaluation in late December 2006.  The new hole has
now been cased and logged, with perforations and testing to take
place in the coming days.  Production facilities associated with
the Puesto Climaco field are in place and ready to accommodate
additional production from the Puesto Climaco-2 sidetrack
immediately.

Also in Argentina, a workover rig has arrived at the Ipaguazu
field to recomplete the IPX-1 well and re-establish production
from this shut-in field.  Gran Tierra holds a 100% working
interest in the Ipaguazu block.  These workover operations are
continuing.  Production at the Nacatimbay field in the near-by
Nacatimbay Block, where Gran Tierra Energy has a 100% working
interest, has been re-established following facilities upgrade
activity.  This previously shut-in field is now producing
approximately 570 thousand cubic feet of gas per day, plus
associated condensate and natural gas liquids.

In Colombia, drilling was initiated on the Laura-1 prospect in
the Talora block in the Middle Magdalena Basin on December 27.
Gran Tierra has a 20% carried working interest in this block.
Drilling is continuing and will be completed this month.

Following the completion of Laura-1, the same drilling rig will
mobilize to drill the Caneyes-1 prospect in the adjacent Rio
Magdalena block in Colombia in late January 2007. Construction
of the drilling location is underway.  Gran Tierra currently
holds a 100% working interest in this contact area, which is
subject to a 30% back-in provision by Ecopetrol, the government
petroleum agency, in the event of commerciality.

Mobilization is continuing with another rig to the Primavera
Block in the Llanos Basin to drill two wells, Capibara-1 and
Cachapa-1, in February 2007.  Gran Tierra holds a 15% interest
in this block.

A third drilling rig is currently being rigged up to drill the
Juanambu-1 prospect in the Guayuyaco block in the Putumayo Basin
of Colombia.  Drilling is scheduled to commence on Jan. 15,
2007.  Gran Tierra's interest in this block is 35% after the
Ecopetrol back in.  The rig is planned to be moved to the
adjacent Chaza block to drill the Naboyaco-1 prospect
immediately after drilling Juanambu-1.  Gran Tierra Energy holds
a 50% working interest in the Chaza contract area.

Dana Coffield, President and Chief Executive Officer of Gran
Tierra, stated "Our simultaneous drilling operations in our two
primary operational arenas, Argentina and Colombia, are now
fully engaged, with the intent to add material new reserves and
production through the drill bit in the first half of 2007."

Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --
http://www.grantierra.com/-- is an international oil and gas
exploration and development company headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America.  The company currently holds
interests in producing and prospective properties in Argentina,
Colombian and Peru.

                        *    *    *

Management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and
generating profitable operations from its oil and natural gas
interests in the future.  The company incurred a net loss of
US$1.9 million for the nine-month period ended Sept. 30, 2006,
and, as at Sept. 30, 2006, had an accumulated deficit of US$4.1
million.




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


ARMSTRONG WORLD: May Sell Tapijtfabriek to NPM Capital
------------------------------------------------------
Armstrong World Industries, Inc., and NPM Capital N.V. are
negotiating on the possible sale of Tapijtfabriek H. Desseaux
N.V. and its subsidiaries, the principal operating companies in
Armstrong's European Textile and Sports Flooring business
segment, to NPM Capital N.V.  The negotiations have reached the
stage where it is expected that the parties will enter into an
agreement.

Tapijtfabriek H. Desseaux N.V. and its subsidiaries manufacture
and market carpet tiles and broadloom carpet for commercial and
residential use in Europe under brand names including Desso and
Bergoss, and artificial turf for sports applications in Europe
and the United States under the brand names of Desso DLW Sports
Systems and GrassMaster.

The Desseaux business recorded sales of approximately euro 200
million (approximately US$262 million) in 2005.  Desseaux has
approximately 1,000 employees and manufacturing plants in
Waasmunster, Belgium; Dendermonde, Belgium; and Waalwijk,
Netherlands, where it also has its headquarters.

"The sale of the majority of Armstrong's Textile and Sports
Flooring business in Europe would allow us to focus on our core
European resilient flooring business," said Michael D. Lockhart,
Armstrong Chairman and CEO.

"Tapijtfabriek H. Desseaux N.V. is a company with a lot of know-
how and great products," said Stef Kranendijk, prospective CEO
of Desseaux.  "It has the potential to further strengthen its
European markets, build on its excellent reputation and well-
known brand names, and expand its leading position in the
textile and sports flooring segments."

Armstrong acquired Tapijtfabriek H. Desseaux N.V. in 1998 as
part of the purchase of Deutsche Linoleum Werke A.G., a
manufacturer and marketer of resilient flooring products
headquartered in Bietigheim-Bissingen, Germany.

Armstrong plans to retain ownership of certain Desseaux
businesses including automotive carpeting and linoleum-based
indoor sports flooring.

Armstrong's continuing flooring manufacturing operations in
Europe include linoleum production in Delmenhorst, Germany;
resilient vinyl flooring in Teesside, England and Holmsund,
Sweden; and resilient vinyl flooring and automotive carpeting in
Bietigheim-Bissingen, Germany.

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.   The company has operation in Colombia, Costa Rica,
Greece Iceland and Asia among others.

The company and its affiliates filed for chapter 11 protection
on Dec. 6, 2000 (Bankr. Del. Case No. 00-04469).  Stephen
Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C.Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts.  The
company and its affiliates tapped the Feinberg Group for
analysis, evaluation, and treatment of personal injury asbestos
claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors.  The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written
confirmation order on Aug. 18, 2006.  The company's "Fourth
Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on
Oct. 2, 2006.  S&P said the outlook is stable.


HILTON HOTELS: Managing Caribbean Real's Resorts in Costa Rica
--------------------------------------------------------------
Hilton Hotels Corp. signed multiyear management accords with
Caribbean Real Estate Opportunity Fund 2005 for two resorts in
Costa Rica.

Effective December 2007, Hilton Hotels will manage a 202-room
property in Guanacaste and a 410-room property in Puntarenas as
the first Hilton and Doubletree branded resorts in the country,
respectively.  

The Associated Press relates that Hilton Hotels will rename
several hotels in Costa Rica.

In an effort to implement all brand standards, the Guanacaste
and Puntarenas resorts will undergo extensive renovations to all
areas including guestrooms, leisure facilities, lobby, meeting
rooms, and restaurants.

Danny Hughes, area vice president of Caribbean and Central
America for Hilton Hotels, said, "These additions solidify our
expansion efforts in Central America and support our growth
strategy to bring the Hilton Family of Hotels into the region.   
Costa Rica is one of the top eco-tourism destinations in the
world, with visitor arrivals growing more each year.  We want to
support the country's tourism growth and welcome guests to
experience the biodiversity that makes Costa Rica such an
amazing place to be."

The first Doubletree hotel in Costa Rica, Premier Fiesta Resort
and Spa in Papagayo, will be renamed Hilton Papagayo Resort.  
With 202 rooms, including 71 private bungalows, guests enjoy
plush accommodation with panoramic views surrounded by nature.  
The hotel, located on a private beach on the Bay of Papagayo in
Guanacaste, just 20 minutes from Liberia International Airport,
features:

          -- two outdoor swimming pools,
          -- non-motorized water sports,
          -- spa,
          -- fitness center,
          -- tennis courts,
          -- kid's club,
          -- three restaurants,
          -- two bars,
          -- casino, and
          -- nightly entertainment.

Jeff Diskin, senior vice president of brand management &
marketing for Hilton Hotels, noted, "This management agreement
in Guanacaste is a terrific example of Hilton Hotels' commitment
to expanding its guest offerings by partnering with diverse
hoteliers who believe in the strength of our global brand.  
Through this agreement the property will now offer unique, local
experiences alongside the standard upscale amenities our guests
have come to expect and love."

The Fiesta Resort in Puntarenas will be renamed the Doubletree
by Hilton Puntarenas Resort.  The 410-room all-inclusive resort,
located one and a half hours from San Jose's Juan Santamaria
International Airport and two hours from Liberia International
Airport, offers:

          -- four dining outlets,
          -- seven bars,
          -- pool,
          -- beach,
          -- fitness center,
          -- tennis courts,
          -- kid's club,
          -- non-motorized water sports,
          -- casino,
          -- nightly entertainment, and
          -- easy access to nearby national parks and biological
             reserves, rainforests, volcanoes and beaches.

"Doubletree Hotels continues to expand its upscale, full-service
hotel portfolio at a solid pace.  This newest management
agreement in Puntarenas, Costa Rica reinforces our pride in
Doubletree being recognized by hotel owners and developers as a
dynamic, credible and lucrative hotel brand for hoteliers across
the Western Hemisphere and around the world," said Dave Horton,
senior vice president of brand management for Doubletree Hotels.

Kenneth Blatt, principal of Caribbean Property Group, commented,
"We are delighted to announce that our two first resorts in
Costa Rica will become part of the Hilton Family of Hotels."

"With such a strong marketing, sales and technology
infrastructure, as well as the value added benefit of the highly
acclaimed Hilton Honors guest reward program, we believe our new
Hilton and Doubletree by Hilton affiliations will lead to great
recognition and success for our resorts, both domestically and
internationally," Ruben Pacheco, president of Enjoy Group,
stated.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,    
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.

                        *    *    *

Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.

Additionally, Moody's revised and held its probability-of-
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default

   Senior Notes
   with an average
   rate of 8.1%
   due 2007 - 2031       Ba2      Ba2      LGD4       53%

   Chilean inflation
   indexed note
   effective rate
   7.65% due 2009        Ba2      Ba2      LGD4       53%

   3.375%
   Contingently
   convertible
   senior notes
   due 2023              Ba2      Ba2      LGD4       53%

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

   Term Loan A
   at adjustable
   rates due 2011        Ba2      Ba2      LGD4       53%

   Term Loan B
   at adjustable
   rates due 2013        Ba2      Ba2      LGD4       53%

   Revolving loans
   at adjustable
   rates, due 2011       Ba2      Ba2      LGD4       53%

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


US AIRWAYS: Ups Offer for Delta Air to US$10.2 Billion
------------------------------------------------------
US Airways Group, Inc., disclosed that it has increased
its offer to merge with Delta Air Lines, Inc.

Under the revised proposal:

   * Delta's unsecured creditors would receive US$5.0 billion
     in cash and 89.5 million shares of US Airways stock.

   * When applying the same valuation methodology and
     assumptions as described in Delta's Disclosure Statement,
     US Airways' advisor Citigroup estimates this new proposal
     will provide between US$12.7 and US$15.4 billion in value
     to Delta's unsecured creditors, which represents a
     significant premium over the US$9.4 to US12.0 billion
     valuation that Delta places on its stand-alone plan.

   * Based on the closing price of US Airways stock as of
     Tuesday, Jan. 9, 2007, the new proposal has a current
     market value of approximately US$10.2 billion.

The merger is expected to be accretive to US Airways' earnings
per share in the first full year after completion of the merger.

The increased offer is set to expire on Feb. 1, 2007, unless
there is affirmative creditor support for commencement of due
diligence, making the required filings under Hart-Scott-Rodino,
as well as the postponement of Delta's hearing on its Disclosure
Statement scheduled for Feb. 7, 2007.

US Airways has committed financing from Citigroup and Morgan
Stanley for the proposed transaction for US$8.2 billion,
representing US$5.0 billion to fund the cash portion of the
offer and US$3.2 billion in refinancing existing obligations at
both US Airways and Delta.

US Airways Chairman and Chief Executive Officer Doug Parker
stated, "While our original proposal offered substantially more
value to Delta's unsecured creditors than the Delta stand-alone
plan, we are making this revised offer to eliminate any doubt
that a merger with US Airways offers Delta's unsecured creditors
significantly more value.  Without the support of the creditors,
our offer is set to expire on Feb. 1.  It is time for this
process to move forward.  We continue to believe that this is
the right time to create a better airline that provides more
choice to consumers, increased job security for both airlines'
employees and generates more value for all of our stakeholders."

Consumers across the nation will benefit from greater choice and
lower fares from the "New" Delta.  Since the combination of
America West and US Airways in 2005, US Airways has lowered
leisure and business fares by up to 83 percent in about 1,000
markets.  Every domestic destination served today by either US
Airways or Delta will continue to be served by the New Delta,
which will provide consumers across the nation access to a
larger network that connects them to more people and places.

Employees also will benefit from working for a larger and more
competitive airline.  As US Airways has already announced,
frontline employees of the New Delta will move to the higher
cost structure of the combined airlines, and there will be no
furloughs of frontline employees of either Delta or US Airways.  
The combination of US Airways and America West, which was
accomplished without any involuntary mainline furloughs despite
capacity reductions of 15 percent, demonstrates that a merger
can be in the best interests of employees, not just
shareholders.

"This is a transaction that makes sense for US Airways
stockholders, Delta creditors, the employees and customers of
both companies, and the communities that we serve," said Mr.
Parker.

The revised US Airways proposal retains the same conditions as
the original offer and is conditioned on satisfactory completion
of a due diligence investigation, which the company believes can
be completed expeditiously, approval by Delta's Bankruptcy Court
of a mutually agreeable plan of reorganization that would be
predicated upon the merger, regulatory approvals, and the
approval of the shareholders of US Airways.

Citigroup Corporate and Investment Banking is acting as
financial advisor to US Airways, and Skadden, Arps, Slate,
Meagher & Flom LLP is acting as primary legal counsel, with
Fried, Frank, Harris, Shriver & Jacobson LLP as lead antitrust
counsel to US Airways.

                      About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest  
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.

                      About US Airways

Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business  
activity is the ownership of the common stock of:

            * US Airways, Inc.,
            * Allegheny Airlines, Inc.,
            * Piedmont Airlines, Inc.,
            * PSA Airlines, Inc.,
            * MidAtlantic Airways, Inc.,
            * US Airways Leasing and Sales, Inc.,
            * Material Services Company, Inc., and
            * Airways Assurance Limited, LLC.

Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).  
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.

The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date.

US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than
230 communities in the U.S., Canada, Europe, the Caribbean, and
Latin America.  The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.


US AIRWAYS: S&P Retains Dev. Watch Despite Revised Delta Offer
--------------------------------------------------------------
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.

US Airways revised its proposal to merge with Delta Air Lines
Inc., under which both companies would combine upon Delta's
emergence from bankruptcy, expected in the first half of 2007.

The revised proposal, for which US Airways already has
US$8.2 million of committed financing, would provide
approximately US$10 billion in cash and stock to Delta's
unsecured creditors, an approximate 19% increase over the
previous proposal.  The combination would result in one of the
world's largest airlines and US Airways still estimates annual
revenue/cost synergies of US$1.7 billion when fully phased in
over a two-year period.  The revised proposal will expire on
Feb. 1, 2007, unless there is affirmative creditor support for
commencement of due diligence, a Hart Scott Rodino filing, and a
postponement of Delta's scheduled Feb. 7, 2007, bankruptcy
disclosure statement hearing.  Delta's official creditor
committee, the principal group whose approval is needed for the
merger, has hired airline industry veteran Gordon Bethune as its
advisor, a development that US Airways' views as positive.

"If US Airways is successful in completing the merger with Delta
and realizing US Airways' expected synergies, ratings could be
raised modestly," said Standard & Poor's credit analyst Betsy
Snyder.

"If US Airways completes the merger but encounters problems with
integrating both airlines, particularly among the different
labor groups, ratings could be lowered."

Standard & Poor's will assess the combined entity's operational
synergies and the effect of the increased level of debt on its
financial profile in resolving the CreditWatch.

                        *    *    *

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.




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


BANCO INTERCONTINENTAL: Luis Renta Seeks to Delay Fraud Case
------------------------------------------------------------
The legal representatives of Luis Alvarez Renta, a Dominican
financier indicted in the Banco Intercontinental fraud case, has
asked the National District 1st Collegiate Court of the
Dominican Republic to suspend indictments against their client
until the lawsuit in the United States is heard, Dominican Today
reports.

As reported in the Troubled Company Reporter-Latin America on
Jan. 11, 2007, Tew Cardenas, the Dominican Republic's legal
representative in the Banco Intercontinental case in Miami, Mr.
Renta has been trying to frustrate U.S. District Court judge
Jose E. Martinez's ruling that he pay US$58.9 million in damages
to the Dominican government.  The Miami federal court had ruled
on Nov. 23, 2005, that Mr. Renta pay the Dominican government
US$58.9 million via the Banco Intercontinental Liquidation
Commission, but not even a part of the sum has been paid.  Mr.
Renta allegedly transferred properties since November 2006 and
provided false and evasive answers during the hearings on his
properties and assets.  Mr. Renta continues to object Judge
Martinez's final ruling and is waiting for the result of the
appeal on the Nov. 7, 2005, jury verdict, which found him liable
of breaking US laws on fraudulent transfers and money
laundering.

Dominican Today relates that as the presumed evidence presented
before the court is the same with the one that Mr. Renta seeks
to present to the judge in Miami, his lawyers alleged that the
first lawsuit against their client must first be heard in the
US, before continuing with the proceedings in the Dominican
Republic.

The court would decide on the motion at a later date, Dominican
Today notes, citing Antonio Sanchez Mejia, the presiding judge
in the case in the Dominican Republic.

Judge Mejia instructed the Dominican Justice Ministry to
continue with the presentation of their evidence against those
indicted in case, Dominican Today states.

Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds.  As a consequence, all of its branches were
closed.  The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank.  The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product.  It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.




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


IMAX CORP: Signs Two-Theatre Deal with Zyacorp Entertainment
------------------------------------------------------------
IMAX Corp. and Zyacorp Entertainment's Cinemagic entered into an
agreement to install two IMAX theatres as part of new
multiplexes.  Zyacorp Entertainment's first IMAX theatre is
scheduled to open in Hooksett, New Hampshire, in 2007.  A second
location in Southern Maine is expected to install in 2008.  The
new IMAX theatres will utilize IMAX MPX technology.  

"More consumers are making trips to the multiplex to experience
Hollywood movies in IMAX's immersive format," said Mark T. Adam,
President of the Zyacorp Companies.  "This trend, combined with
the attractive economics of the IMAX MPX theatre system, gives
us a compelling reason to enter into the IMAX theatre business
-- especially when increasingly sophisticated home theatre
systems are keeping people at home more often.  With a cinematic
experience that cannot be replicated at home or in any other
type of theatre, IMAX theatres give multiplexes a point of
differentiation -- and that is part of what keeps the turnstiles
moving in the right direction."

"The strong IMAX box office performance this holiday season has
generated exhibitor interest in North America," said IMAX
co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J.
Wechsler.  "Our new partnership with Zyacorp, the fastest
growing exhibitor in Northern New England, increases the
momentum of our domestic expansion, which is fueled by
exhibitors' desire to deliver a unique moviegoing experience."

"Zyacorp Entertainment's Cinemagic is the only exhibitor in
Maine and New Hampshire to have entered the IMAX theatre
business," added Larry T. O'Reilly, IMAX's Executive Vice
President, Theatre Development.  "We look forward to working
with them to captivate a whole new market with The IMAX
Experience."

The new IMAX theatres will feature an IMAX MPX system.  The IMAX
MPX theatre system was designed specifically to enable multiplex
operators to more cost effectively enter into the IMAX theatre
business, either by retrofitting an existing stadium-seating
auditorium or via an economical new build.  The new IMAX
theatres will be capable of playing Hollywood event films that
have been digitally re-mastered into the unparalleled image and
sound quality of The IMAX Experience, as well as original IMAX
productions in 2D and IMAX 3D.

IMAX Corp. -- http://www.imax.com/-- founded in 1967 and
headquartered jointly in New York City and Toronto, Canada, is
an entertainment technology company, with particular emphasis on
film and digital imaging technologies including 3D, post-
production, and digital projection.  IMAX also designs and
manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development.
The IMAX Theatre Network currently consists of more than 270
IMAX affiliated theatres in 38 countries including Argentina,
Ecuador, Guatemala, Mexico and Colombia.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 1, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating for IMAX Corp., as well as the Caa1 rating on its senior
notes.  Moody's said the outlook remains stable.


PETROECUADOR: Posts US$1.11 Billion in Revenues from Block 15
-------------------------------------------------------------
The block 15 temporary administration unit of Petroecuador, the
state-run oil company of Ecuador, told Business News Americas
that the firm brought in US$1.11 billion in revenue from crude
produced on the block from May to December 2006.

Ecuador revoked Occidental Petroleum's contract for block 15 in
2006, taking over control of the block in May.

BNamericas relates that exports totaled 16.3 million barrels for
a total US$791 million in the May to December 2006 period.  The
remainder was covered by crude provided to Petroecuador through
the Sote pipeline.

According to BNamericas, Petroecuador produced 96,737 barrels
per day of Napo crude in the May-December 2006 period for a
total 22.2 million barrels, or 98% of the firm's target.

The report says that Petroecuador didn't drill additional wells
on block 15 during the May-December 2006 period and experienced
an average 2.92% monthly decrease in production levels, or 3,000
barrels per day.

Petroecuador will start drilling block 15's Eden-Yuturi field in
the middle of January 2007, BNamericas notes.

BNamericas underscores that Petroecuador saved US$30 million by
cutting down the cost of production per barrel by US$1.81 to
US$4.74 compared with the previously anticipated figure.

Petroecuador produced 68 million barrels in 2006, or 186,554
barrels per day, compared with 2007.  The firm expects
production for 2007 to reach 64.4 million barrels, or 176,438
barrels per day, Reuters 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
=================


GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1.  Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed as
was the company's Speculative Grade Liquidity rating of SGL-2.
The outlook has reverted to stable from negative.

The actions follow the resolution of Goodyear's organized labor
contract with the USW in North America and more detailed
disclosure of the settlement's applicable terms and benefits.
Moody's would expect the company over time to achieve
significant efficiencies from the new contract and other
restructuring actions.  Collectively, those developments will
position the company's metrics in the B1 rating category. In the
near-term, however, debt could peak at higher levels from the
ramp-up of production, re-structuring expenditures from
announced plant closures, and funding the contribution to a new
VEBA account.  Although improvement in Goodyear's performance is
weighted towards 2008 and beyond, Moody's is comfortable that
the company has sufficient liquidity to weather an interim
period, and, thereafter, its coverage and leverage ratios would
be on a recovery path from an enhanced cost structure, increased
productivity, lower legacy costs and stream-lined manufacturing
footprint.

Ratings affirmed:

Goodyear Tire & Rubber Company

   -- Corporate Family Rating, B1
   -- Probability of Default, B1
   -- first lien credit facility, Ba1, LGD 2, 10%
   -- second lien term loan, Ba3, LGD 3, 35%
   -- third lien secured term loan, B2, LGD 4, 63%
   -- 11% senior secured notes, B2, LGD 4, 63%
   -- floating rate senior secured notes, B2, LGD 4, 63%
   -- 9% senior notes, B2, LGD 4, 63%
   -- 8 5/8 % senior unsecured notes due 2011, B2, LGD-4, 63%
   -- floating rate unsecured note due 2009, B2, LGD-4, 63%
   -- 8 1/2% senior notes, B3, LGD 6, 94%
   -- 6 3/8% senior notes, B3, LGD 6, 94%
   -- 7 6/7% senior notes, B3, LGD 6, 94%
   -- 7% senior notes, B3, LGD 6, 94%
   -- senior unsecured convertible notes, B3, LGD 6, 94%
   -- Speculative Grade Liquidity rating, SGL-2

Goodyear Dunlop Tyres Europe

   -- Euro revolving credit facilities, Ba1, LGD 2, 10%
   -- Euro secured term loan, Ba1, LGD 2, 10%

The last rating action was on Nov. 16, 2006, at which time
ratings on the company's US$1.0 billion of unsecured notes with
maturities in 2009 and 2011 were assigned.

Goodyear has stated that the terms of the new labor contract
along with other actions announced during 2006 and early January
2007 will enable it to surpass its goals of reducing high cost
tire manufacturing capacity and achieving a more competitive
cost structure in its North American operations.  Collectively,
the actions at USW plants in North America are expected to
generate annual savings of US$300 million in 2009, which
represents more than 3% of that segments sales.  Savings from
actions at its Valleyfield, Quebec plant (estimated at roughly
US$40 million/year once implemented) and its Moroccan operations
would be supplemental to that figure.  The Tyler, TX plant will
operate through 2007, and Valleyfield, Quebec will continue tire
production through the first half of this year.  The bulk of the
savings will not be realized until 2008 and beyond.  In order to
achieve those savings, some "up-front" expenditure will be
required.  These could lead to an increase in indebtedness
during 2007 as working capital requirements are affected by the
ramp of domestic production, contributions are made to the VEBA
(of which at least US$700 million will be cash), cash
restructuring costs for Valleyfield (estimated to be
US$40-US$45 million) and Tyler, TX in early 2008 (estimated to
be US$45-US$50 million) are incurred, and any supplemental
retirement "buy-outs" envisioned under the new USW agreement are
considered.  Potentially offsetting those requirements would be
prospective proceeds from asset sales and/or an equity offering
which the company is evaluating.

Goodyear's Corporate Family rating of B1 continues to recognize
strong scores for several factors in Moody's Automotive Supplier
Methodology.  These factors include the company's substantial
scale, global brands with refreshed product offerings, leading
market share, diversified geographic markets, and improved debt
maturity and liquidity profiles.  Scores for those qualitative
attributes would normally track to a higher Corporate Family
rating.  However, the B1 rating considers Goodyear's relatively
weak quantitative scores including leverage, which has stepped-
up from recent borrowings and could increase further in the
near-term, low EBIT returns and weak FCF/debt ratios.
Contributions to pension plans will remain substantial for
another year before declining in 2008.  Scores from those
quantitative factors counter qualitative strengths.  The company
faces challenges in restoring its balance sheet, and contending
with various contingent liabilities.  Debt levels should crest
during 2007 and leverage measurements retreat as savings begin
to be realized from the terms in its North American labor
settlement and other actions.  Realization of those efficiencies
will require successful execution.

The stable outlook considers the prospective benefits Goodyear
is likely to achieve from the new labor contract and other
restructuring actions that will ultimately lead to improved
financial performance and lower leverage statistics.  Existing
cash and access to a sizable committed revolving credit facility
provide sufficient resources to manage through what could be a
choppy interim period during which demand in North American
replacement tire markets may not experience any material growth
and raw material costs remain volatile.  While metrics for
trailing periods covering the strike and its lingering effects
in early 2007 may suggest lower rating categories, leverage and
coverage measurements are expected to improve as savings are
realized and demand stabilizes.  Moody's also anticipates
Goodyear's year-end balance sheet will confirm lower under-
funded pension liabilities.  The company is positioned with good
liquidity and faces minimal debt maturities until 2009.

A positive outlook or higher ratings could develop could develop
if debt/EBITDA were to fall to 4 times or below and
EBIT/interest were to be sustained above 2 times while
generating positive free cash flow.  Application of proceeds
from prospective asset sales or material equity issuance to
reduce leverage could also facilitate stronger ratings.  
Downward pressure on the rating or a negative outlook could
develop if replacement tire demand in North America were to
weaken and produce lower margins.  Similarly, higher raw
material costs, which were not recovered from pricing actions or
productivity gains, or an inability to realize savings
associated with the new USW labor contract could also lead to
lower profitability.  Evidence of this could come from negative
free cash flow, EBIT/interest declining below 1.25 X, or
debt/EBITDA metrics maintained at or above 5 times beyond 2007.

The SGL-2 liquidity rating represents good liquidity over the
coming year.  This stems from continuing extensive cash
resources, which were supplemented by a US$1 billion note
offering in November (net of retiring US$515 million of
maturities in December '06 and March '07), and access to a
committed US$1 billion revolving credit.  Moody's would
anticipate that a portion of cash resources will be utilized for
funding a new VEBA trust, working capital requirements generated
from the ramp of production in North America as well as the cash
portion of restructuring costs at Tyler, TX and Valleyfield,
Quebec. Repayment of revolving credit borrowings in early
January restored external liquidity, and the company continues
with adequate cushion under its financial covenants.  Terms of
its bank credit agreement provide flexibility on the use of any
potential asset sale proceeds and provide some source for
alternate liquidity to develop.

                    About Goodyear Tire
  
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest   
tire company.  The company manufactures tires, engineered rubber  
products and chemicals in more than 90 facilities in 28  
countries.  It has marketing operations in almost every country  
around the world, including Colombia, Guatemala and Peru in
Latin America.




===============
H O N D U R A S
===============


MILLICOM INTERNATIONAL: Tigo Investing US$100 Million This Year
---------------------------------------------------------------
Published reports say that Tigo, which is operated by Millicom
International Cellular, will invest US$100 million in 2007 in
preparation for increased mobile demand in Honduras.

Business News Americas relates that most of the investment will
be allocated to network expansion.

Tigo President Antonio Tavel Otero told reporters that the firm
wants to have coverage in each of Honduras' 298 municipalities
by the end of 2007.

BNamericas notes that Millicom International's operations in
Honduras, Guatemala and El Salvador have been the key drivers of
the firm's growth in Latin America.  Millicom International also
has operations in Bolivia, Paraguay and Colombia.  Millicom
International's revenues increased to US$207 million in the
third quarter of 2006, compared with US$120 million in the third
quarter of 2005.

Of the two million mobile subscribers in Honduras, Tigo has
around 1.5 million, BNamericas states, citing Mr. Otero.

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

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

                        *    *    *

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

                        *    *    *

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


* HONDURAS: Will Export Bananas to China in February
----------------------------------------------------
Honduras will start exporting bananas to China in February,
Fresh Plaza reports, citing Arturo Castillo, representative of
the Honduran association of independent banana growers.

According to Fresh Plaza, the first shipment will be made within
a few weeks.  

Mr. Castillo told Fresh Plaza that during the first stage 50K MT
will be exported, corresponding with 2.5 million boxes.

Fresh Plaza relates that to meet the demand of a market of 1000
million inhabitants, it would be necessary that the Honduran
production is further developed quickly, which would require an
expansion of the acreage of intensive banana cultivation.  

The Chinese market is more interesting than that of the US.  In
the US, only US$6,000 per container is earned, while in China
this would pay US$10,000 per container, Fresh Plaza states,
citing Carlos Kattan, the Honduran-Chinese Development
Foundation president.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998




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


AFFILIATED COMPUTER: Begins Facility Construction in Jamaica
------------------------------------------------------------
Affiliated Computer Services, Inc., is expanding its global
capabilities with the construction of a new 65,000 square-foot
office and call center facility in Montego Bay, Jamaica.  ACS is
also hiring 600 additional employees to staff the new location.

Currently, ACS employs 1,300 people and is one of the largest
information communication and technology services providers in
Jamaica. The new positions will include call center agents,
finance and accounting specialists, human resources benefits
processors, and data processors.

The addition of the new facility, to be completed in 2007, is in
response to ACS' continued growth in the services it provides
from Jamaica.  These services support a range of clients and
industries including healthcare, financial services, insurance,
manufacturing, and education.  ACS is also the only company in
the Caribbean providing payroll processing for North American
companies.

The Honorable Phillip Paulwell, Minister of Industry,
Technology, Energy and Commerce, welcomes ACS' growth in Jamaica
at a groundbreaking ceremony at the site of the new facility on
Friday, Jan. 12, 2007.

"We are extremely pleased to have a global leader in information
communication and technology expand its presence in Montego
Bay," said Minister Paulwell.  "ACS' growth and success here
highlight Jamaica as an attractive location for global business
growth. We are delighted to have ACS as a part of our community,
and we commend them for being a first-rate organization and one
of our top employers."

Jamaica continues to play a key role in the company's innovative
global services delivery strategy, said David Jarrett, ACS
Senior Vice President, Real Estate and Facilities.

"By 'following the sun' with a nonstop global workflow, we can
deliver quality, cost-effective results to our clients," said
Jarrett. "With this expansion, we'll be able to enhance our
services to existing clients and add new clients to our Jamaican
operations. Growth, with a commitment to exceeding expectations
and providing innovation, will result in expanded
opportunities."

ACS Site Operations Manager for Jamaica, Lyn Langford said, "ACS
has an enduring and abiding commitment to Jamaica, and takes
pride in being a leader and pioneer in the growth of business
development in this country. We look forward to continue
providing exemplary customer services and quality for our
clients from our Jamaica operations."

The new facility will be a two-tiered office and call center
with a two-story perimeter and three-story core and will be
built less than half a block away from ACS' existing Montego Bay
facility.

ACS is working with local developer, Cathexis, Ltd., to complete
the new office and call center and worked closely with the
developer on a strategic design for its new site, focusing on
providing maximum efficiency and comfort for both employees and
clients.

Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides  
business process outsourcing and information technology
solutions to commercial and government clients.  The company's
global operations include those in Brazil, Dominican Republic,
Guatemala, Jamaica, Ireland and the Philippines.

                        *    *    *

The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services kept its ratings for
Affiliated Computer Services Inc. including the 'B+' corporate
credit rating, on CreditWatch, where they were placed with
negative implications on Sept. 29, 2006.

Fitch Ratings assigned its BB issuer default rating, BB senior
secured revolving bank credit facility rating, BB senior secured
term loan rating, and BB senior notes rating on Affiliated
Computer Services, Inc.  Fitch said the rating outlook is
negative.


AIR JAMAICA: Union Alleges Capitalization & Management Problems
---------------------------------------------------------------
The under-capitalization of Air Jamaica and its over-sized
management team are among the major problems in the airline,
Radio Jamaica reports, citing Vincent Morrison, president of the
National Workers Union.

Mr. Morrison told Radio Jamaica that the correction of these
problems would result in a profitable airline within five to
seven years.

Radio Jamaica relates that Mr. Morrison presented before the
parliamentary committee, which is examining Air Jamaica's
operations, a seven-point proposal that he claimed would change
the airline's luck.  The proposal includes the rationalization
of routes and a fleet review.

Mr. Morrison told Radio Jamaica that despite the billions of
dollars Air Jamaica has lost, the nation had more to lose
without the airline.

Radio Jamaica underscores that the Union wants Air Jamaica to be
re-capitalized with workers owning a stake in the company.

Mr. Morrison told Radio Jamaica, "We will be asking for an
employee share ownership to be introduced in the airline...
[since] the airline is not making money.  We believe that the
employees buying into the airline will make a difference in
terms of production and productivity."

Other union officials who supported Mr. Morrison's proposal said
that there are duplications in the management of Air Jamaica,
Radio Jamaica notes.

Parliamentary committee chairperson Dr. Omar Davies then
requested that management officials be re-called to respond to
questions relating to the staffing of Air Jamaica, Radio Jamaica
states.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004.  The
government had owned 25% of the company after it went private in
1994.  The Jamaican government does not plan to own Air Jamaica
permanently.

                        *    *    *

On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.




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


ADVANCED MARKETING: Hachette Book Objects to DIP Financing Plea
---------------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware authorized Advanced Marketing
Services, Inc., and its debtor-affiliates, on an interim basis,
to dip their hands into the DIP financing facility arranged by
Wells Fargo Foothill, the Troubled Company Reporter disclosed on
Jan. 10, 2007.

The Debtors had sought the Court's authority to obtain from
Foothill and the Senior Lenders, though the DIP Loan Facility,
cash advances and other extensions of credit in an aggregate
principal amount of up to US$75,000,000.

                 Hachette & Quarto Object

Hachette Book Group USA, Inc., formerly known as Time Warner
Book Group, has been a supplier of books to Advanced Marketing
Services, Inc., over the past 20 years.  The Debtors have listed
Hachette Book as their fourth largest unsecured creditor,
holding an unsecured claim for US$22,569,624.

Jeffrey A. Marks, Esq., at Squire, Sanders & Dempsey L.L.P, in
Cincinnati, Ohio, says that during the 45 days before the
Debtors filed for bankruptcy, Hachette Book sold books to AMS
for which it has not yet been paid.  Accordingly, Hachette Book
has the right to reclaim the books sold to AMS during that
period under Section 546(c) of the Bankruptcy Code, and to an
administrative expense claim for those books sold to AMS during
the 20-day period before the Petition Date under Section
503(b)(9).

To that end, on Dec. 29, 2006, Hachette Book sent an initial
reclamation demand to Mark D. Collins, Esq. of Richards, Layton
& Finger, P.A., the Debtors' proposed local counsel, demanding
reclamation and reserving its rights to supplement and amend its
reclamation demand upon further review of its books and records.

Hachette Book complain that pursuant to the DIP Loan Facility,
the Borrowers have obligated themselves, via an affirmative
covenant in the DIP Loan Agreement, to comply with the Qualified
Transaction Timeline providing, among other things, that:

   (i) within 10 days after the Petition Date, the Borrowers
       must file a motion to sell all or substantially all of
       their assets, or refinance or recapitalize so as to pay
       the Lenders in full; and

  (ii) within 50 days after filing the Sale Motion, the
       Borrowers must have received cash proceeds from a sale or
       other transaction sufficient to pay the Lenders in full.

Mr. Marks notes that this obligation under the DIP Loan Facility
will fundamentally and irrevocably dictate the course of conduct
of the Debtors' bankruptcy case.  However, the Court, creditors
and other parties-in-interest simply have not been provided
sufficient information or opportunity to determine whether a
sale or other transaction, under the time frame stipulated, is
an appropriate resolution of the bankruptcy case, and is
otherwise in the best interests of the Debtors' estate and
creditors.

Mr. Marks also asserts that:

   (a) The request fails to specify a proposed maximum borrowing
       for the period before the Final Hearing;

   (b) The proposed time frame within which to investigate and,
       if appropriate, challenge, the position of the
       Lender/Senior Lender is too short and is overbroad in
       certain respects;

   (c) Certain provisions relating to the Professional Fee
       Carve-Out Expenses are unclear, specifically, the
       distinction between the US$2,000,000 carve-out that is
       proposed to be in effect before a Payoff Event and the
       US$3,000,000 carve-out after a Payoff Event; and

   (d) The procedure for approval of a Non-Material Amendment is
       inappropriate to the extent that it permits an
       abbreviated approval process for an amendment that may in
       fact be material.  The definition of Non-Material
       Amendment encompasses provisions as any new, subsequent,
       modified, restated or amended covenants or conditions
       acceptable or required by the Lenders.  The covenants or
       conditions could very well include material provisions.

Accordingly, Hachette Book asks the Court to deny the Debtors'
request.

Quarto, Inc.; Quarto Publishing, PLC; Book Sales, Inc.; Creative
Publishing International, Inc.; Walter Foster, Inc.; and Design
Eye Limited, agree with Hachette's arguments.

The Quarto Entities assert claims exceeding US$3,200,000 against
the Debtors.

The Quarto Entities also contend that the US$2,400,000 extension
fee paid on July 31, 2006, to the Lenders under the Debtors'
Loan and Security Agreement with Wells Fargo Foothill, Inc., as
well as the US$750,000 closing fee under the DIP Facility are
excessive and should be subject to close examination and
disallowance.

The Quarto Entities are represented in the Debtors' cases by
Victor A. Sahn, Esq., at Sulmeyer Kupetz, in Los Angeles,
California.

                  About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., and Alexandra B. Feldman, Esq., at O'Melveny &
Myers, LLP, represent the Debtors.  Chun I. Jang, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., are the Debtors' local counsel.  When the Debtors
filed for protection from their creditors, they listed estimated
assets and debts of more than US$100 million.  The Debtors'
exclusive period to file a chapter 11 plan expires on
Apr. 28, 2007.  (Advanced Marketing Bankruptcy News, Issue
No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


ALESTRA SA: Gets Court Order to Stop Ministry Sanction
------------------------------------------------------
Alestra SA said in a statement that it has received a court
order temporarily halting a sanction levied by the public
services ministry for not signing a long distance services
contract it won.

Business News Americas underscores that Alestra allegedly failed
to sign a contract to provide long distance services to seven
cities, after winning the contract from Comimsa.

Diario Official relates that the public administration ministry
fined Alestra MXN75,000 and blocked the firm from receiving any
other government contracts or funds for three months beginning
Jan. 9.

BNamericas notes that Alestra said the sanction was unfair.  The
firm claimed that Comimsa recognized that the firm had acted
appropriately.

Alestra told BNamericas that Cofetel, the telecoms regulator in
Mexico, notified the firm that it was not allowed to provide
services for four of the cities, as the markets are closed to
the entrance of new long distance operators.  As a result,
Alestra did not sign the contract and told Comimsa that it could
not fulfill the contract.

Alestra said in a statement, "At no moment did the company act
in bad faith, nor did it provoke damage to [Comimsa], as Comimsa
itself has recognized."

Because of the court order, Alestra can still receive contracts
and funds until the court makes a definitive decision,
BNamericas states.

                        *    *    *

Fitch Ratings placed these ratings on Alestra, SA de CV

          -- B- long-term issuer default rating; and
          -- B- local currency long-term issuer default rating.

Fitch said the outlook is negative.


CONTINENTAL AIRLINES: Contributes US$71 Million to Pension Plans
----------------------------------------------------------------
Continental Airlines, Inc., has contributed US$71 million to its
pension plans.  This contribution significantly exceeds the
minimum funding requirement applicable to Continental's plans.

"This is another step that demonstrates our commitment to
meeting our pension obligations," said Continental Chairman and
CEO Larry Kellner.  "We place tremendous value on helping our
co-workers secure their futures."

Since the beginning of 2002, Continental has contributed nearly
US$1.2 billion to its pension plans.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations.  More
than 400 additional points are served via SkyTeam alliance
airlines.  With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year.  Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc.  The outlook is
revised to stable from negative.  Continental has about US$17
billion of debt and leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch said
the rating outlook was stable.


DANA CORP: Moody's Assigns Low B Ratings on DIP Facilities
----------------------------------------------------------
Moody's Investors Service has assigned ratings to the amended
US$1.55 billion debtor-in-possession financing of Dana Corp. as
a Debtor-in-Possession.  The assigned ratings include a B1
rating for the US$650 million (downsized from US$750 million in
the original DIP facility) super priority senior secured asset
based revolving credit, and a B2 rating for the US$900 million
(upsized from US$700 million in the original DIP facility) super
priority senior secured term loan B.  

The ratings are assigned on a point-in-time basis, will not be
monitored going forward, and, as a result, do not have an
assigned rating outlook.  While a plan of reorganization
continues to be developed, the ratings incorporate Dana's
progress on identifying restructuring components in the areas of
improved pricing terms with its OEM customers, facility
rationalizations, and overhead cost reductions that should
facilitate an eventual emergence from Chapter 11.  The ratings
also continue to reflect the challenging automotive environment
for North American OEMs.

The ratings also consider the additional protection afforded DIP
lenders by the collateral package underlying both facilities,
and the benefits of a borrowing base governing availability
under the revolving credit facility.  The US$650 million asset
based revolving credit facility has a super priority first lien
claim on all domestic current assets and a second lien on assets
securing the DIP Term Loan B.  The DIP Term Loan B has a super
priority first lien claim on all domestic assets (excluding
current assets), 66% of the stock of the foreign subsidiaries,
and a second lien on assets securing the asset based revolving
credit facility.

Moody's assigned these ratings on a point in time basis:

   Dana Corp. as a Debtor-in-Possession

   -- US$650 million secured revolving credit, B1; and
   -- US$900 million upsized secured term loan B, B2.

The additional cash provided by the upsized term loan will be
used to provide additional liquidity to Dana over the remainder
of the life of the existing DIP facility.  This need is driven
by the impact of North American production declines during the
last quarter of 2006, and the up front cash cost of planned
restructuring initiatives in 2007.  The DIP facilities will
continue to be guaranteed by substantially all of Dana's direct
and indirect domestic subsidiaries that filed for Chapter 11
protection. Both the revolving credit and upsized term loan B
will continue to have a maturity of the earlier of March 3,
2008, or the date of substantial consummation of a Plan of
Reorganization.

The revolving credit is governed by a borrowing base of up to
85% of eligible trade accounts receivables of the DIP Loan
Parties, and up to the lesser of (A) 85% of the net orderly
liquidation value of eligible inventory of the DIP Loan Parties
and (B) 65% of eligible inventory.  Due to Dana's considerable
exposure to U.S. auto OEMs the revolving credit borrowings are
also subject to concentration limits.

Moody's assessment of risk for DIP facilities addresses two
factors. The first is the probability of the company
successfully reorganizing and emerging from bankruptcy with DIP
indebtedness being paid in full.  The second, should
reorganization be unsuccessful, is the extent of protection
provided to DIP lenders by the liquidation value and character
of the collateral.

Moody's continues to expect that it is probable that Dana will
emerge from bankruptcy.  Dana is a leading global automotive
supplier of light-and heavy-drivetrain products, structures,
thermal, and sealing systems with long-standing relationships
with leading OEMs.  The revolving credit facility and additional
cash from the upsized term loan is expected to provide
sufficient liquidity through the planned reorganization.  Dana
has made progress on identifying targets for cost reduction and
profit improvements.  However, implementation of many of these
initiatives is still in process.  Restructuring targets include
renegotiated customer contracts, savings from facility closures
and consolidations, overhead cost improvements, and reductions
in labor and benefit costs.  These initiatives are expected to
primarily impact Dana's domestic debtor operations.  As a result
of these initiatives and the upsized term loan, availability
under the downsized DIP revolving credit facility is expected to
be adequate through its maturity. Dana's international
operations are expected to remain profitable, tempered by lower
expected growth in demand in Western Europe.  Dana will also
continue to benefit from shifting its manufacturing base to
lower cost countries.  The proposed amendments to the DIP
facilities also include accommodations to permit increased
secured debt at certain foreign subsidiaries and permit the
efficient repatriation of funds from foreign subsidiaries.  The
success of these efforts will supplement domestic liquidity.

Dana continues to be exposed to North American production
volumes and the loss of market share of the Big 3 OEMs.  Dana
also remains exposed to fluctuations in its raw material costs
with a limited ability to pass increases on to customers.  While
Moody's believes the potential for labor actions that could
disrupt automotive production lessened over the recent months,
the ratings reflect the risk of a potential disruption at key
customers.  The proposed amendment to the DIP facility includes
modifications to the minimum consolidated EBITDAR financial
covenant which delays the ramp up minimum thresholds under this
test and could provide flexibility in the event of any labor
disruptions.

The B1 rating for the revolving credit benefits from the first
lien pledge of current assets and will continue to be supported
by regular borrowing base reporting, and quarterly field
examinations.  This collateral package, along with the advance
limitations contained in the borrowing base is expected to
provide strong asset protection for revolving credit lenders.  
The B2 rating for the term loan considers its first claim on
fixed assets and stock of subsidiaries, as well as its second
priority claim on current assets behind the revolver. An updated
appraisal of real estate, and machinery and equipment was not
performed as part of the facility amendment.  However,
considering the net orderly liquidation values used at the
inception of the DIP facility and the current estimated values
of the stock of the foreign subsidiaries, the term loan B
continues to be adequately supported.

Headquartered in Toledo, Ohio, Dana Corp. (OTC Bulletin Board:
DCNAQ) -- http://www.dana.com/-- designs and manufactures
products for every major vehicle producer in the world, and
supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in
28 countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne
Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  Thomas Moers
Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents
the Official Committee of Unsecured Creditors.  The Debtors'
consolidated balance sheet at March 31, 2006, showed a
US$456,000,000 total shareholder' equity resulting from total
assets of US$7.788 billion and total liabilities of US$7.332
billion.  When the Debtors filed for protection from their
creditors, they listed US$7.9 billion in assets and US$6.8
billion in liabilities as of Sept. 30, 2005.


DELTA AIR: Creditors Want US Airways Revised Offer Considered
-------------------------------------------------------------
In response to US Airways Group, Inc.'s revised offer to
purchase Delta Air Lines, Inc. the Unofficial Committee of
Unsecured Claimholders of Delta Air Lines, Inc. called upon the
company to provide thoughtful and unbiased consideration to US
Airways' enhanced offer.

The Unofficial Committee believes that it is in the best
interests of Delta and its stakeholders for Delta to immediately
take these steps:

   1. Provide reasonable and customary access for US Airways to
      perform its due diligence in a manner consistent with
      similar transactions.

   2. Fully cooperate with US Airways to make the required  
      filings under HSR.

   3. Postpone Delta's Disclosure Statement hearing currently     
      scheduled for Feb. 7, 2007, to allow Delta to fully
      evaluate US Airways' proposal.

   4. Include the active participation and input of the
      Unofficial Committee's advisors with respect to the US
      Airways' proposal and other strategic alternatives.

   5. Desist from taking actions intended to deter other
      companies from proposing transactions with Delta that may
      result in greater creditor recoveries than under a
      stand-alone Chapter 11 plan.

On its face, the revised offer by US Airways represents a
substantial increase from its prior bid, and, more importantly,
represents a significant premium to the valuation Delta itself
places on its stand-alone plan.  The increased US Airways' offer
merits Delta's careful attention at this time in keeping with
the board's fiduciary duty to maximize value for Delta's
stakeholders, including members of the Unofficial Committee.

Only after Delta adequately considers the revised US Airways'
proposal and any other strategic alternative that may present
itself, will the members of the Unofficial Committee be in a
position to determine whether to support Delta's stand-alone
reorganization plan.

The Unofficial Committee's financial advisor is Jefferies &
Company, Inc., and its legal counsel is Paul, Weiss, Rifkind,
Wharton & Garrison LLP.

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest  
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.


DIRECTV INC: Launches TV-PC Connectivity with Intel
---------------------------------------------------
DIRECTV, Inc., disclosed that the DIRECTV Plus HD DVR has been
verified with Intel Viiv technology.  With this certification,
DIRECTV becomes largest supplier of Viiv-verified digital media
adapters.

DIRECTV customers who have a DIRECTV Plus HD DVR can now access
and enjoy their pictures and music on their TVs directly from
Intel Viiv technology-based PCs.  The DIRECTV Plus HD DVR is the
world's first digital set-top box with integrated DMA
functionality verified to work with Intel Viiv technology.

"We announced our alliance with Intel at the 2006 Consumer
Electronics Show and we are happy to be here today, one year
later, to show you the fruits of our labor," said Romulo
Pontual, executive vice president and CTO, DIRECTV, Inc.  "The
way people consume media is rapidly evolving and connectivity
between digital devices is becoming an essential part of the
home ecosystem.  DIRECTV understands this evolution and is
delivering innovative solutions to make sure our customers stay
connected."

"The announcement marries the millions of Intel Viiv technology-
based PC owners with DIRECTV's high-definition TV viewers in a
way that has never been done before," said Kevin Corbett, vice
president, Intel's Digital Home Group and general manager of its
Content Services Group.  "DIRECTV's product exemplifies what a
digital or connected home is all about where PCs, TVs and CE
devices all work in concert together and consumers enjoy their
entertainment on a variety of screens and devices when and where
they want to."

Photos and music are just the beginning.  The Viiv functionality
is already available as a public beta trial to all DIRECTV Plus
HD DVR customers.  Later this year, DIRECTV plans to enhance the
photo and music experience, as well as provide the ability to
stream video from Intel Viiv technology-based PCs via DIRECTV
Plus HD DVRs.

Delivering the ability to record and view 200 hours of standard
definition content or 50 hours of MPEG 4 high-definition
programming, the DIRECTV Plus HD DVR receiver verified with
Intel Viiv technology enables consumers to access and enjoy new
experiences that combine the best of the TV with the best of the
PC.

                        About Intel

Intel, the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance
how people work and live.

                       About DIRECTV

Headquartered in El Segundo, California, The DirecTV Group, Inc.
(NYSE: DTV) -- http://www.directv.com/-- provides direct  
broadcast satellite service to more than 15 million customers in
the US and more than 1.5 million customers through its DirecTV
Latin America segment.

                        *    *    *

The DIRECTV Group Inc.'s long-term local and foreign issuer
credits carry Standard & Poor's BB ratings.  The ratings were
placed on Aug. 9, 2004 with a stable outlook.


ENESCO GROUP: Files Chapter 11 Petition to Effect Asset Sale
------------------------------------------------------------
An affiliate of Tinicum Capital Partners II, L.P., a private
investment partnership, has agreed in principle to a financial
restructuring for Enesco Group, Inc.  As part of the
restructuring, Enesco expects to enter into an asset purchase
agreement with Tinicum, which would provide for an affiliate of
Tinicum to purchase substantially all of the assets of Enesco
and to assume certain of Enesco's unsecured liabilities.  Under
the agreement, the purchase price for Enesco's business,
operations and assets would be paid by the forgiveness of all or
substantially all of Enesco's senior secured debt.

After the transaction, substantially all of Enesco's assets
would be owned by the Tinicum affiliate, a private company.  
Enesco does not anticipate there would be any distribution to
its stockholders from the transaction.

In order to effect these transactions, Enesco and certain of its
domestic subsidiaries filed voluntary petitions for
reorganization relief under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the Northern District of
Illinois, Eastern Division, which is located in Chicago,
Illinois, on Jan. 12, 2007.  Each of the transactions is subject
to the finalization and execution of the definitive agreements
and receipt of all requisite bankruptcy court approvals.

"We are very pleased to have a financial and strategic partner
in Tinicum who shares our vision for Enesco," Basil Elliott,
Enesco President and CEO, said.  "Tinicum is well versed with
the demands and needs of our particular industry.  With their
expertise and resources, we believe Tinicum will help Enesco
bring our customers the highest quality products and customer
service that they and the marketplace require."

"We are delighted to be associated with Enesco," Terence M.
O'Toole, co-managing partner of Tinicum said.  "The company has
a long established tradition of excellence and we are excited to
be part of its continued growth.  We applaud the support and
loyalty of Enesco's extraordinary employees, customers,
suppliers and artists and we look forward to working with them."

                    About Enesco Group

Headquartered in Itasca, Illinois, Enesco Group, Inc. ---
http://www.enesco.com/-- is a producer of giftware, and home  
and garden d,cor products.  Enesco's product lines include some
of the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.

Enesco distributes products to a wide array of specialty gift
retailers, home d,cor boutiques and direct mail retailers, as
well as mass-market chains.  The company serves markets
operating in Europe, Australia, Mexico, Asia and the Pacific
Rim.  With subsidiaries in Europe, Canada and a business unit in
Hong Kong, Enesco's international distribution network leads the
industry.

                       Credit Default

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Enesco is continuing to aggressively pursue long-term debt
financing.  Enesco previously had agreed to obtain a commitment
for long-term financing by Aug. 7, 2006.  Because Enesco has not
obtained a commitment, the company is in default of its current
credit facility agreement.

Enesco is working with the lenders for possible additional loans
or terms and conditions, but has been advised that the lenders
are not committing to waive the default.


ENESCO GROUP: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Enesco Group Inc.
             225 Windsor Drive
             Itasca, IL 60143

Bankruptcy Case No.: 07-00565

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Enesco International Ltd.                  07-00571
      Gregg Manufacturing, Inc.                  07-00574

Type of Business: The Debtors design, manufacture, and sells
                  licensed and proprietary branded giftware and
                  home and garden d,cor products to a variety of
                  specialty gift, home d,cor, mass market, and
                  direct mail retailers.  Product lines include
                  some of the world's recognizable brands
                  including Heartwood Creek(TM) by Jim Shore,
                  Foundations(R), Pooh & Friends(R), Walt Disney
                  Classics Collections(R), Disney Traditions(R),
                  Disney(R), Border Fine Arts(TM), Cherished
                  Teddies(R), Halcyon Days(R), and Lilliput
                  Lane(TM), among others.  Products include
                  diverse lines of accent furniture, wall decor,
                  garden accessories, frames, desk accessories,
                  figurines, cottages, musicals, music boxes,
                  ornaments, waterballs, tableware, general home
                  accessories, and resin figures.

                  The company serves markets operating in
                  Europe, Australia, Mexico, Asia and the
                  Pacific Rim.  The company has subsidiaries in
                  Europe, Canada and a business unit in Hong
                  Kong.  See http://www.enesco.com/


Chapter 11 Petition Date: January 12, 2007

Court: Northern District of Illinois (Chicago)

Judge: A. Benjamin Goldgar

Debtors' Counsel: Brian L Shaw, Esq.
                  Shaw Gussis Fishman Glantz Wolfson & Tow
                  321 N Clark Street, Suite 800
                  Chicago, IL 60610
                  Tel: (312) 541-0151
                  Fax: (312) 980-3888

                       -- and --

                  Skadden, Arps, Slate, Meagher & Flom LLP
                  333 West Wacker Drive
                  Chicago, IL 60606-1285

Consolidated Financial Condition as of Nov. 30, 2006:

   Total Assets: US$155,350,698

   Total Debts:  US$107,903,518

Consolidated List of Debtors' 30 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Internal Revenue Service         Tax               US$5,400,000
Ogden, UT 84201-0012

UPS Supply Chain Solutions(SM)   Trade Debt        US$1,260,916
P.O. Box 226717
Dallas, TX 75222-6717
Fax: (913) 469-8824

Jim Shore Designs, Inc.          License Fees      US$1,147,509
426 N. Main Street
Health Springs, SC 29058
Fax: (866) 665-0069

National Distribution Centers    Trade Debt          US$870,866
P.O. Box 827600
Philadelphia, PA 19182-7600

United Parcel Service            Trade Debt          US$834,104
Lockbox 577
Carol Stream, IL 60132-0577
Fax: (630) 851-7571

Citic Global Logistics Ltd.      Trade Debt          US$610,581
11854 South Alameda Street
Lynwood, CA 90262
Fax: (310) 638-3790

Churchward Ltd.                  Trade Debt          US$371,336
68/6 Moo 1
Salaya
Puthamonthon
Nadompathom, Thailand

WBE Industries Co. Ltd.          Trade Debt          US$338,267
17 Lane 99
Pei Yuan Street
Tainan, Taiwan
Fax: 86-752-367929

Victradco (H.K.) Limited         Trade Debt          US$337,738
Suites 828-831, Ocean Center
5 Canton Road, Tsim Sha Tsui
Kowloon, Tsinshatsui, Hong Kong
Fax: 866-2-2721-5845

China Innovation Co. Ltd.        Trade               US$311,177
No. 16 Chuang YI Road
Long Hua Town, Baoan District
ShenZhen, GuangDong
China

Disney Enterprises Inc.          License Fees        US$310,068
File 55988
Los Angeles, CA 90074-5988
Fax: (818) 553-7210

Seagull Decor Co. Ltd.           Trade Debt          US$308,771
13F No. 167, Sec. 5
Ming Sheng E. Road
Taipei, Thailand
Fax: 886-2-2765-4174

Mesirow Financial                Professional        US$288,130
Consulting LLC                   Services
350 N. Clark Street
Chicago, IL 60610
Fax: (312) 595-4246

KPMG LLP                         Professional        US$258,000
Department 0970                  Services
P.O. Box 120001
Dallas, TX 75312-0970
Fax: (214) 840-2297

Faith Cartage Inc.               Trade               US$231,313
7401 South 78th Avenue
Bridgeview, IL 60455
Fax: (708) 458-4197

Vedder Price                     Professional        US$196,733
Kaufman & Kammholz, P.C.         Services
222 North LaSalle Street
Chicago, IL 60601-1003
Fax: (312) 609-5005

Illinois Department of Revenue   Tax                 US$151,118

Maritz                           Trade Debt          US$149,250

Blue Cross Blue                  Insurance Plan      US$128,811
Shield of Illinois

Tukaiz Litho Inc.                Trade Debt          US$121,822

City Forum Enterprises Ltd.      Trade Debt            
US$121,281

Phoenix International            Trade Debt          US$112,856
Freight Service

Federal Express                  Trade Debt          US$108,592

Oracle USA                       Trade Debt          US$107,323

Deloitte Touche                  Professional        US$106,000
                                 Services

Taiwan Merchant (HK) Co.         Trade Debt           US$88,758

American Express                 Trade Debt           US$87,097

Priscilla Hillman 888            License Fees         US$81,787

Hild Studios Inc.                Trade Debt           US$81,034

SGS Testing Company Inc.         Trade Debt           US$60,146


HERBALIFE: Names Patrick Dailey as Chief Administrative Officer
---------------------------------------------------------------
Herbalife Ltd. promoted Patrick R. Dailey, Ph.D., to the newly-
created position of chief administrative officer, responsible
for human resources, overseeing the company's real estate
portfolio, risk management and corporate travel.  Mr. Dailey
joined the company in August 2005 as senior vice president of
human resources.

Mr. Dailey came to Herbalife from Hewlett-Packard Company in
Palo Alto where he served as vice president, global workforce
management. Previously, he was employed at Lucent Technologies.  
Earlier in his career, Dailey worked at Korn/Ferry
International, The British Oxygen Group, and PepsiCo's Frito-Lay
division.

Herbalife has approximately 3500 employees in 150 locations
around the world. Mr. Dailey's appointment furthers the
development of the company's infrastructure towards becoming a
world-class leader in the nutrition industry.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., and
Guadalajara, Mexico.

                        *    *    *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


MAXCOM TELECOMUNICACIONES: Number Portability To Cost US$5 Mil.
---------------------------------------------------------------
Maxcom Telecomunicaciones Chief Executive Officer Rene Sagastuy
told Business News Americas that the implementation of number
portability for the firm will cost up to US$5 million.

BNamericas relates that Mr. believes that number portability
will allow smaller operators like Maxcom Telecomunicaciones
greater ability to attract new customers that wouldn't normally
switch their service provider.

Mr. Sagastuy commented to BNamericas, "We see it as being very
positive... It will enable us to capture greater portions of the
market."

BNamericas underscores that Cofetel, the telecoms regulator in
Mexico, ratified a set of regulations for introducing mobile and
fixed line number portability in December 2006.  The system is
expected to be ready in November 2007.

Mr. Sagastuy refused to tell BNamericas whether Maxcom
Telecomunicaciones' planned investment was on par with average
market rates for number portability implementation.  

The report says that while number portability should affect the
residential and corporate sectors, Mr. Sagastuy expects that
firms will benefit most due to the importance of maintaining
contact numbers with existing customers when switching operator.

Mr. Sagastuy supports the all call query database system Cofetel
chose, which uses a central database to then route calls to
their correct number, BNamericas notes.

Mr. Sagastuy told BNamericas that though the implementation of
the system will be more expensive than some of the other
technologies available, it should bring savings to the industry
in the long term, as it is less expensive to operate.  The main
problem to the implementation of the number portability is the
willingness from operators to invest in something that could
lead to loss of customers.  Technically speaking the
implementation is not that difficult.

The number portability system could force operators to focus on
subscriber retention above all else and result in lessened fixed
line infrastructure investments, which could affect growth rates
of fixed line penetration, BNamericas says, citing critics.

By giving operators the chance to obtain new subscribers, more
money should then be available to invest in infrastructure, Mr.
Sagastuy told BNamericas.

Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory.  Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.  

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Standard & Poor's Ratings Services assigned its
'B' long-term corporate credit rating to Mexico City-based
Maxcom Telecomunicaciones SA de CV.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'B' rating to
Maxcom's proposed transaction of up to US$200 million 144-A
senior unsecured notes maturing in 2016.  The notes will be
guaranteed by substantially all of Maxcom's subsidiaries.  
Proceeds from the proposed offering of notes will be used to
refinance all the existing indebtedness, including vendor
financing, and to prefund approximately US$84 million of capital
expenditures for additional growth.


NORTEL NETWORKS: UBS Analysts Maintain "Neutral" Rating
-------------------------------------------------------
Analysts at UBS maintain their "neutral" rating on Nortel
Networks Corp., while revising their estimates for the company,
New Ratings reports.

According to the report, Nortel's target price has been raised
from US$23.50 to US$26.00.

The report says that in a research note published on
Jan. 10, 2006, the analysts mentioned that the CDMA -- Code
Division Multiple Access -- outlook for 2007 has improved.  
Analysts said that once the Rev A rollouts are mostly completed,
CDMA revenues are expected to decline by 6% in 2008, the report
points out.

The report discloses that the upward revision in the target
price reflects a marginally increased long-term normalized
operating margin estimate.

The EPS estimate for 2007 has been raised from US$0.56 to
US$0.66, while the EPS estimate for 2008 has been reduced from
US$1.60 to US$1.50, the report adds.

                        About Nortel

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

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


VISTEON CORP: Inks Retail Distribution Pact with Advanced Global
----------------------------------------------------------------
Visteon Corp. and Advanced Global Technology entered into an
exclusive retail distribution agreement to market, sell, and
distribute electronics products.  Advanced Global will be
distributing three new HD Radio receivers:

   -- Visteon HD Radio receivers, the Visteon HD Jump;
   -- the HD EZ Connect, and
   -- the HD Table Top Radio

along with a full line of accessory products designed to enhance
the installation and reception of HD Radio.

HD Jump is the first true HD Radio plug and play receiver of its
kind.  The unit delivers premium new HD2 multicast channels and
crystal-clear sound quality and can be used in a car, truck, RV
or home.  Visteon's HD Jump docks into a cradle in the vehicle
and an optional home kit allows the receiver to also be used
with a home stereo.  HD Jump offers the full spectrum of HD
Radio features, including program-associated data, such as real-
time song title, artist and album information, as well as
multicasting, where available.  The clarity of HD Radio
technology allows FM stations to be enjoyed with CD quality
sound and boosts AM quality up to that of FM sound.  More than
1,000 radio stations now broadcast HD Radio signals in the U.S.,
with more than 400 offering new formats on HD2 channels.  The
cradle's built-in auxiliary input jack also enables users to
plug in an MP3 player and hear its contents through the
vehicle's sound system.

HD EZ Connect is a new HD Radio receiver that is designed to
easily connect to either an aftermarket or factory-installed car
audio systems to receive digital HD Radio programming.

HD Table Top Radio is a new HD Radio receiver delivering high
performance audio with a sleek design and intuitive controls.  
The unit features a large backlit six-line display, alarm clock
feature and is available in a variety of colors to match any
d,cor.

"This agreement allows Visteon to expand its automotive product
expertise and advanced technology," said Greg Gyllstrom, vice
president, Visteon North American aftermarket.

"The relationship between Visteon and Advanced Global Technology
is an ideal match," said Ben Lowinger, Advanced Global
Technology President.  "When you pair Visteon's advanced
technology leadership in the automotive electronics space with
Advanced Global Technology's proven capabilities in the retailer
sector, we expect these new products to deliver explosive growth
for HD Radio in both awareness and sales."  The Visteon HD Jump,
HD EZ Connect, and HD Table Top Radio will be available at
retailers this spring.

Headquartered in Van Buren Township, Michigan, Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on auto supplier Visteon Corp.'s senior secured
bank facility, following the announcement that the company will
increase its term loan to US$1 billion from US$800 million.

The secured loan rating is 'B' and the recovery rating is '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.


VITRO SA: Offering US$750MM Debt to Improve Capital Structure
-------------------------------------------------------------
Vitro, S.A.B. de C.V. disclosed a US$750 million debt offering  
to refinance existing third-party debt at the Vitro holding
company level and substantially all of the third-party debt at
its subsidiary Vitro Envases Norteamerica, S.A. de C.V. aka
Vena.  The Offering will consist of bank and bond financing in
at least two tranches and will be guaranteed by Vena and its
wholly owned subsidiaries and Vimexico, S.A. de C.V. and its
wholly-owned subsidiaries.

The Offering will be made to qualified institutional buyers in
the United States in reliance on Rule 144A under the Securities
Act of 1933, as amended and to non-U.S. persons outside the
United States in accordance with Regulation S under the
Securities Act of 1933. The Offering, to the extent it is in the
form of notes, will be issued with registration rights.

Concurrently with the Offering, Vena also announced yesterday an
offer to purchase for cash any and all of its outstanding 10.75%
senior secured guaranteed notes due 2011.  In conjunction with
the Tender Offer, Vena is also soliciting consents from the
holders of the 2011 Notes to proposed amendments to the
indenture under which the 2011 Notes were issued which, among
other things, will enable the release of certain liens on the
collateral for the 2011 Notes.

Among other things, the Tender Offer and Consent Solicitation
are subject to consummation of the Offering and the Offering is
subject to receipt of the required consents in the Consent
Solicitation. The terms and conditions of the Tender Offer and
Consent Solicitation are more fully set forth in the Offer to
Purchase and Consent Solicitation Statement made available to
holders of the 2011 Notes.

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

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

                        *    *    *

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

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

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro SA
de CV notes due 2007 (which are guaranteed by Vitro) to 'CCC'
from 'CCC+'.  Standard & Poor's also lowered the rating assigned
to Vena's notes due 2011 to 'B-' from 'B'.


WERNER LADDER: Judge Carey Appoints Warren Smith as Fee Auditor
---------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware has appointed Warren H. Smith &
Associates P.C. as fee auditor to act as special consultant to
the Court for professional fee and expense review and analysis.

Specifically, Warren Smith will:

   (1) review quarterly interim and final fee applications filed
       with the Court;

   (2) discuss with the applicant certain questions, issues,
       or disputes concerning an Interim Fee Application within
       30 days after the later of the due date of a quarterly
       Interim Fee Application, or service on the auditor of the
       Fee Application;

   (3) file with the Court a final report for each quarterly
       Interim Fee Application within 30 days after filing an
       initial report, or 20 days after receipt of an
       Applicant's response to the Initial Report;

   (4) serve a Final Report to the affected Applicant in a
       format designed to opine whether the Applicant's proposed
       fees meet the applicable standards of Section 330; and

   (5) always be available for deposition and cross-examination
       by the Debtors, the Official Committee of Unsecured
       Creditors, the U.S. Trustee, and other interested
       parties.

Warren Smith's fees and expenses will be subject to review
pursuant to Rule 706(b), and will be paid from Werner Holding
Co. (DE) Inc. aka Werner Ladder Company and its debtor-
affiliates' estate as an administrative expense under Section
503(b)(2) of the Bankruptcy Code.

The Court directs all applicants filing monthly and quarterly
fee applications to send to Warren Smith the Application,
including the fee detail containing the time entries, within
Jan. 25, 2006.

The Order does not limit the statutory rights and obligations of
interested parties in the Debtors' cases, including the rights
of parties-in-interest to object to Monthly, Quarterly Interim,
or Final Fee Applications.

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--  
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).  The Debtors are represented by the firm of
Willkie Farr & Gallagher LLP as lead counsel and the firm of
Young, Conaway, Stargatt & Taylor LLP as co-counsel.  Rothschild
Inc. is the Debtors' financial advisor.  The Official Committee
of Unsecured Creditors is represented by the firm of Winston &
Strawn LLP as lead counsel and the firm of Greenberg Traurig LLP
as co-counsel.  Jefferies & Company serves as the Creditor
Committee's financial advisor.  At March 31, 2006, the Debtors
reported total assets of US$201,042,000 and total debts of
US$473,447,000.  The Debtors's exclusive period to file a plan
expires on Jan. 15, 2007.  (Werner Ladder Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


WERNER LADDER: Implementation of Employee Severance Plan Okayed
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gave Werner Holding Co. (DE), Inc., aka Werner Ladder Company,
and its debtor-affiliates authority to implement a severance
plan for hourly union employees at their facility in Chicago,
Illinois, who will permanently lose their jobs.

In 2005, the Debtors decided to transfer their operations from
the relatively high cost Chicago Facility to their facility in
Juarez, Mexico.  At the end of the transition, the Chicago
Facility will be closed and substantially all of the employees
will be terminated.  The Debtors anticipate their operational
restructuring to be completed in the first quarter of 2007.

Currently, there are about 432 hourly employees at the Chicago
Facility, of which 429 are members of the Allied Production
Workers Union Local No. 12, AFL, CIO.  To insure the continued
productivity at the Chicago Facility, the Debtors and the
Chicago Union had entered into a new collective bargaining
agreement to replace their original CBA that expired on
July 17, 2006.  The new CBA took effect on July 18, 2006.

The Troubled Company Reporter on Nov. 27, 2006, relates that
Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor, LLP,
in Wilmington, Delaware, told the Court that neither the
Original CBA nor the Current CBA provided the Chicago Union
Employees with a contractual right to severance payments.

Mr. Waite said that pursuant to a Final Settlement and
Recommendation dated Aug. 8, 2006, between the Debtors and the
Chicago Union, the Debtors agreed that in the event of a notice
of mass layoff or plant shutdown under the Worker Adjustment and
Retraining Act of 1998, they would negotiate to implement a
severance program for the Chicago Union Employees.

In September 2006, the Debtors notified their employees at the
Chicago Facility of their intention to cut up to 230 jobs by
November.  In October 2006, the Debtors sent another notice
indicating their intention to eliminate up to 100 additional
employees beginning Dec. 17, 2006.

         Chicago Union Employee Severance Program

Under the Chicago Union Employee Severance Program, as
negotiated by the parties, calculation of the severance payments
due at the time of separation would be done by multiplying the
number of completed years of service by the appropriate
severance multiplier.

           Years of Service      Severance Multiplier
           ----------------      --------------------
                    <2                    US$0
                   2-4                   US$75
                   5-7                   US$75
                  8-14                  US$100
                 15-24                  US$135
             > or = 25                  US$175

According to Mr. Waite, the total maximum cost of the Chicago
Severance Program would be around US$751,240 for the 429 Chicago
Union Employees.

Mr. Waite noted that the Chicago Union Employees are a critical
part of the operational restructuring that is currently
underway, and the most effective way to incentivize them to
continue working for the Debtors is to provide the Severance
Payments upon their termination.

The Debtors also believe that making the Severance Payments to
the employees who will lose their jobs in the near future is
necessary to sustain the morale of the remaining employees who
otherwise might leave during the critical stage of the Debtors'
bankruptcy cases.

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--  
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).  The Debtors are represented by the firm of
Willkie Farr & Gallagher LLP as lead counsel and the firm of
Young, Conaway, Stargatt & Taylor LLP as co-counsel.  Rothschild
Inc. is the Debtors' financial advisor.  The Official Committee
of Unsecured Creditors is represented by the firm of Winston &
Strawn LLP as lead counsel and the firm of Greenberg Traurig LLP
as co-counsel.  Jefferies & Company serves as the Creditor
Committee's financial advisor.  At March 31, 2006, the Debtors
reported total assets of US$201,042,000 and total debts of
US$473,447,000.  The Debtors's exclusive period to file a plan
expires on Jan. 15, 2007.  (Werner Ladder Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


* MUNICIPALITY OF LA BARCA: Moody's Rates US$42MM Loan at Ba1
-------------------------------------------------------------
Moody's Investors Service assigned ratings of A1.mx and Ba1 to
the US$42 million bank loan to be contracted by the Municipality
of La Barca, Jalisco with Banco del Bajio.  Approximately US$40
million of the loan proceeds will be used to pay the
municipality's debt with Banobras, with the remainder to be
spent on the acquisition of equipment.  The loan will be paid
under a payment trust agreement entered into by the municipality
with JP Morgan, as trustee, on December 15, 2006.  The
municipality will commit 100% of its federal participation
revenues to the trust.  The State of Jalisco is also party to
the trust agreement, as instructions for the state to transfer
participation revenues to the trust instead of the municipality
are included in the trust contract.

The loan will be payable under a separate contract with Banco
del Bajio.  Principal and interest will be payable monthly at a
variable rate, beginning the month after loan proceeds are
disbursed and over a 10-year amortization period.  Although
draft documents currently available do not provide for a
reserve, Moody's has been informed that a six-month debt service
reserve fund will be included in the final credit contract.

The ratings assigned are based on documents received by Moody's
as of the rating assignment date, some of which are still
subject to change.  If the final documents differ significantly
from the drafts now available or from what has been otherwise
communicated to us, Moody's will assess the impact of these
differences on the ratings and act accordingly.

Because the bank loan is a direct obligation of the
municipality, payment of which is governed by the trust
agreement, the ratings rely on both the municipality's credit
position and the enhancement to that credit provided by the
governing documents.  Pertinent factors include:

   1. The municipality's issuer ratings of Baa2.mx and B1,
      which are based on the city's weak financial performance
      and growing debt levels.  For the last three years, La
      Barca has recorded financing deficits, mainly as a result
      of the large share of revenues absorbed by operating
      costs.  These financing deficits were covered by
      borrowing.  The municipality's debt has increased notably
      over the last three years to pay the cost of its capital
      program as well as cover operating margins which were
      negative in two of the last three years.


   2. The La Barca City Council's legal authorization allows the
      municipality to contract the loan with a 10 year term, to
      become party to a trust agreement and commit the
      municipality's federal participation revenues to pay the
      loan, and use the funds for productive public investment.  
      The city council authorization and the transaction as a
      whole comply with the State of Jalisco Debt Law and its
      Fiscal Coordination Law.

      There is a limitation to the trust agreement in that,
      although the municipality will commit 100% of its
      participation revenues to the trust, it has already
      comitted the same 100% share as a payment guarantee for
      the loan with Banobras that is to be refinanced.  To
      remedy this situation, the municipality is expected to
      receive a bridge loan from Banco del Bajio in order to pay
      off the Banobras loan.  Once that loan is paid off, the
      municipality will instruct the State of Jalisco Finance
      Secretary to transfer 100% of its participation revenues
      to the JP Morgan trust.

   3. Participation revenues represent a stable and predictable
      revenue source. In the State of Jalisco, municipalities
      receive 22% of the federal participation revenues
      distributed to the state, compared to the 20% required by
      the Federal Fiscal Coordination Law.  In the case of La
      Barca these have represented approximately 45% of total
      revenues.  Participation revenues for La Barca have
      demonstrated good growth, averaging 9% over the last three
      years.

   4. Coverage on the loan provided by the 100% share of
      participation revenues committed is good, with minimum
      monthly debt service coverage of 3 times and an average
      monthly coverage of 5 times over the first five years of
      the loan.  In addition, the loan contract is expected to
      provide a 6 month interest and principal reserve fund,
      which is acceptable for transactions with monthly debt
      service payments.  This feature provides a reasonable
      period for the issuer and bank to deal with issues which
      may arise, without putting debt service payments at risk.

      However, by committing 100% of its participation revenues
      to this one loan, the municipality will limit its access
      to similar financing for the next 10 years.  Given that La
      Barca has relied heavily on financing since at least 2003,
      this limitation could place pressure on municipal finances
      in the future, when additional resources for capital
      projects may be needed.  Even so, some flexibility for
      future financing opportunities could be garnered from the
      fact that over the life of the loan approximately 84% of
      the participaciones going through the trust should be
      returned to the municipality after the payment of debt
      service on the loan.  This allows the possibility to
      contract additional loans which would be subordinate to
      the present loan, and which could be paid through the same
      trust with a pledge of remaining participaciones.

   5. Under the loan contract, the municipality's failure to
      comply with certain obligations that might adversely
      affect loan payments are designated "Causes for Early
      Amortization."  These include two that are administrative
      in nature and four that are more serious. We believe the
      possible penalty associated with non-compliance -- the
      ability of the bank to declare the loans immediately due
      and payable -- appropriately protects the creditor's
      interests when the events are serious, since they deter
      the issuer from taking action that might threaten loan
      payments.  However, Moody's believes the possibility of
      declaring early amortization for non-compliance with
      obligations of merely an administrative nature could
      introduce volatility, given the relatively harsh
      consequences.  In these two instances, the bank has agreed
      to grant a six-month cure period in which to comply, which
      reduces potential volatility.  Moody's notes, however,
      that the cure period is not reflected in the draft
      documentation provided at this time.




=================
N I C A R A G U A
=================


* NICARAGUA: Venezuela Gov't to Launch Local Unit of Bandes
-----------------------------------------------------------
The Venezuelan Ministry of Communication said in a statement
that President Hugo Chavez will open a unit of the Bank of
Economic and Social Development aka Bandes in Managua,
Nicaragua.

The Venezuelan government told the Associated Press that it will
offer housing credits to help poor Nicaraguans construct homes.

Bandes will establish important financing to benefit 200,000
families to build their own houses, AP says, citing Miguel
Gomez, Venezuela's ambassador to Nicaragua.

Bandes has offered millions in aid to nations including Uruguay
and Grenada.  It has also disclosed plans to expand into
Bolivia, Honduras, Guatemala and Haiti, AP states.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


BANCO CONTINENTAL: Banco General Merger Cues Fitch's PosWatch
-------------------------------------------------------------
Fitch Ratings placed Banco Continental de Panama's Issuer
Default Rating on Rating Watch Positive following the
announcement of a merger with Banco General.  Banco
Continental's current ratings are:

   -- Long-term Issuer Default Ratings of 'BBB-'; and
   -- Short-term ratings of 'F3'.

In addition, Fitch affirms and withdraws the ratings assigned to
Grupo Financiero Continental, which will soon cease to control
and consolidate Banco Continental's operations. The ratings of
Grupo Financiero Continental are:

   -- Individual rating of 'C';
   -- Support Rating of '5';
   -- Long-term IDR of 'BBB-'; and
   -- Short-term ratings of 'F3'.

At the same time, Fitch assigns Individual and Support ratings
to Banco Continental as follows:

   -- Individual rating of 'C'; and
   -- Support rating of '5'.

The rating for the US$150 million senior unsecured notes issued
by Banco Continental and maturing in December 2010 of 'BBB-' is
also placed on Rating Watch Positive.

The Outlook on the national-scale rating of Banco Continental is
revised to Positive from Stable:

Banco Continental:

   -- National scale long-term rating 'AA+.

Banco General SA's ratings remain unaffected as follows:

   -- Long-term IDR of 'BBB';

   -- Individual rating of 'C';

   -- Support Rating of '5'; and

   -- Short-term ratings of 'F3'.

On Jan. 3, 2007, Empresa General de Inversiones and Grupo
Financiero Continenta announced an agreement to merge their
financial operations; the transaction is still subject to final
approval by local regulators.

The merger will be implemented in three stages.  First, EGI will
create a wholly owned holding company and transfer 100% of Banco
General and subsidiaries as well as Commercial RE Ltd. to BGH;
on the other hand, GFC will create a wholly owned holding
company and transfer 100% of Banco Continental and subsidiaries
to CFH.  In a second stage, the new holdings will merge creating
BG Financial Group which will then own 100% of both banks and
Commercial RE.  EGI will own 61% of BG Financial Group and GFC
the remaining 39%.  These two stages should be completed within
three months. The third and final stage will see the merger of
Banco Continental into Banco General, which has been selected as
the surviving entity.

The management expects to complete the merger and operational
integration of the banks in 12-18 months.  Until the legal
merger, Banco Continental will continue to operate as a separate
legal entity but will be managed under the guidance of an
integration committee from the creation of BG Financial Group.

In Fitch's view, this merger will lead to the creation of a
strong Panamanian bank with important regional reach.  The
overlap of their businesses is relatively limited and the
potential for revenue and portfolio diversification could
further the expected benefits of synergies and economies of
scale, resulting in a more efficient and better diversified
institution.  The combined capitalization will be lower than
Banco General's traditionally very strong capital ratios but
will remain at adequate levels.

The benefits of diversification of assets and revenues should
result in a more balanced bank able to generate the
profitability necessary to maintain sound capital ratios while
supporting continuing growth, consistent with the 'BBB' rating
currently enjoyed by Banco General.

Nonetheless, important short-term challenges remain; both
institutions have a relatively large size that adds to the
complexity of the integration, and the competitive environment
in Panama and the region is changing rapidly due to the entry of
strong international players as shareholders of the region's
most significant financial entities.  By the end of 2006, HSBC
acquired Banistmo, and Citigroup acquired Banco Cuscatlan and
Banco Uno.

GE Capital is also present across the region, through its 49.9%
stake in BAC International Bank, the region's leading credit
card franchise with a commercial banking presence in all of the
region's markets.  The merger between Banco General and Banco
Continental attempts to create a larger, competitive bank that
benefits from General's healthy local consumer franchise and
Continental's strong regional corporate business.  The new
entity should be better placed to face this new environment than
the individual banks would have been alone.  The merged bank
would have a capital base of about US$800 million and handle
assets in excess of US$7 billion including a loan portfolio
above US$4.5 billion.

Banco Continental's Rating Watch Positive reflects the positive
impact that we expect the completion of the merger will have on
its performance and ability to compete regionally.  Banco
Continental is Panama's third largest private bank with a market
share of 9.1% of loans and 9.2% of deposits at September 2006.  
The bank's main target market is corporate banking but has also
entered the middle market, consumer and private banking
businesses.

Banco General's ratings reflect its strong local franchise,
sound asset quality and capitalization, robust profitability and
adequate liquidity.  The bank recognizes its dependence on
interest revenues and narrowing margins as a result of strong
competition.  Banco General is Panama's second largest private
bank with a market share of 12.9% of deposits and 12.8% of loans
at September 2006.  The bank is the largest bank controlled by
local shareholders, and is well positioned in residential
mortgage and also has substantial commercial and consumer
lending portfolios.


GRUPO FINANCIERO: Fitch Affirms & Withdraws C Individual Rating
---------------------------------------------------------------
Fitch Ratings placed Banco Continental de Panama's Issuer
Default Rating on Rating Watch Positive following the
announcement of a merger with Banco General.  Banco
Continental's current ratings are:

   -- Long-term Issuer Default Ratings of 'BBB-'; and
   -- Short-term ratings of 'F3'.

In addition, Fitch affirms and withdraws the ratings assigned to
Grupo Financiero Continental, which will soon cease to control
and consolidate Banco Continental's operations.  The ratings of
Grupo Financiero Continental are:

   -- Individual rating of 'C';
   -- Support Rating of '5';
   -- Long-term IDR of 'BBB-'; and
   -- Short-term ratings of 'F3'.

At the same time, Fitch assigns Individual and Support ratings
to Banco Continental as:

   -- Individual rating of 'C'; and
   -- Support rating of '5'.

The rating for the US$150 million senior unsecured notes issued
by Banco Continental and maturing in December 2010 of 'BBB-' is
also placed on Rating Watch Positive.

The Outlook on the national-scale rating of Banco Continental is
revised to Positive from Stable:

Banco Continental:

   -- National scale long-term rating 'AA+.

Banco General SA's ratings remain unaffected as:

   -- Long-term IDR of 'BBB';

   -- Individual rating of 'C';

   -- Support Rating of '5'; and

   -- Short-term ratings of 'F3'.

On Jan. 3, 2007, Empresa General de Inversiones and Grupo
Financiero Continenta announced an agreement to merge their
financial operations; the transaction is still subject to final
approval by local regulators.

The merger will be implemented in three stages.  First, EGI will
create a wholly owned holding company and transfer 100% of Banco
General and subsidiaries as well as Commercial RE Ltd. to BGH;
on the other hand, GFC will create a wholly owned holding
company and transfer 100% of Banco Continental and subsidiaries
to CFH.  In a second stage, the new holdings will merge creating
BG Financial Group which will then own 100% of both banks and
Commercial RE.  EGI will own 61% of BG Financial Group and GFC
the remaining 39%.  These two stages should be completed within
three months.  The third and final stage will see the merger of
Banco Continental into Banco General, which has been selected as
the surviving entity.

The management expects to complete the merger and operational
integration of the banks in 12-18 months.  Until the legal
merger, Banco Continental will continue to operate as a separate
legal entity but will be managed under the guidance of an
integration committee from the creation of BG Financial Group.

In Fitch's view, this merger will lead to the creation of a
strong Panamanian bank with important regional reach.  The
overlap of their businesses is relatively limited and the
potential for revenue and portfolio diversification could
further the expected benefits of synergies and economies of
scale, resulting in a more efficient and better diversified
institution.  The combined capitalization will be lower than
Banco General's traditionally very strong capital ratios but
will remain at adequate levels.

The benefits of diversification of assets and revenues should
result in a more balanced bank able to generate the
profitability necessary to maintain sound capital ratios while
supporting continuing growth, consistent with the 'BBB' rating
currently enjoyed by Banco General.

Nonetheless, important short-term challenges remain; both
institutions have a relatively large size that adds to the
complexity of the integration, and the competitive environment
in Panama and the region is changing rapidly due to the entry of
strong international players as shareholders of the region's
most significant financial entities.  By the end of 2006, HSBC
acquired Banistmo, and Citigroup acquired Banco Cuscatlan and
Banco Uno.

GE Capital is also present across the region, through its 49.9%
stake in BAC International Bank, the region's leading credit
card franchise with a commercial banking presence in all of the
region's markets.  The merger between Banco General and Banco
Continental attempts to create a larger, competitive bank that
benefits from General's healthy local consumer franchise and
Continental's strong regional corporate business.  The new
entity should be better placed to face this new environment than
the individual banks would have been alone.  The merged bank
would have a capital base of about US$800 million and handle
assets in excess of US$7 billion including a loan portfolio
above US$4.5 billion.

Banco Continental's Rating Watch Positive reflects the positive
impact that we expect the completion of the merger will have on
its performance and ability to compete regionally.  Banco
Continental is Panama's third largest private bank with a market
share of 9.1% of loans and 9.2% of deposits at September 2006.  
The bank's main target market is corporate banking but has also
entered the middle market, consumer and private banking
businesses.

Banco General's ratings reflect its strong local franchise,
sound asset quality and capitalization, robust profitability and
adequate liquidity.  The bank recognizes its dependence on
interest revenues and narrowing margins as a result of strong
competition.  Banco General is Panama's second largest private
bank with a market share of 12.9% of deposits and 12.8% of loans
at September 2006.  The bank is the largest bank controlled by
local shareholders, and is well positioned in residential
mortgage and also has substantial commercial and consumer
lending portfolios.




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


PRIDE INT: Names Jeffrey Chastain as Investor Relations Officer
---------------------------------------------------------------
Pride International, Inc., disclosed that Jeffrey L. Chastain
has agreed to accept the position of Vice President, Investor
Relations and is expected to join the company by the end of the
month.  Since 1994, Mr. Chastain has been employed by Transocean
Inc., most recently as Vice President, Investor Relations and
Corporate Communications.  Over the course of a 23-year career,
Mr. Chastain has served in investor relations and analytical
roles in the energy-related and financial investment industries.  
Mr. Chastain holds Bachelor and Master of Business
Administration degrees from the University of North Texas and is
a past president of the Houston Chapter of the National Investor
Relations Institute.

Louis A. Raspino, President and Chief Executive Officer,
commented, "Jeff's investor relations experience, reputation and
drilling industry knowledge, particularly in deepwater, clearly
identify him as a leader in our industry.  We are excited that
he is joining our team, and we look forward to working with him
as we continue our growth as one of the world's leading offshore
drilling companies."

Headquartered in Houston, Texas, Pride International, Inc. --
http://www.prideinternational.com/-- is a drilling contractor.
The Company provides onshore and offshore drilling and related
services in more than 25 countries, operating a diverse fleet of
278 rigs, including two ultra-deepwater drillships, 12
semi submersible rigs, 28 jackup rigs, 18 tender-assisted, barge
and platform rigs, and 218 land rigs.  Pride also provides a
variety of oilfield services to customers in Argentina,
Venezuela, Bolivia and Peru.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable.  As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.

As reported in the Troubled Company Reporter on Aug. 17, 2006,
Fitch Ratings raised Pride International's Issuer Default Rating
to 'BB' from 'BB-'.  Fitch also raised the ratings on Pride's
senior secured revolving credit facility, senior unsecured notes
and their convertible senior notes.


SK CORP: To Revive Incheon Unit IPO, WSJ Reports
------------------------------------------------
SK Corp. plans to revive a stalled initial public offering of
its stake in SK Incheon Oil, Kate Linebaugh of The Wall Street
Journal says, citing people familiar with the plan.

As previously reported, SK Corp. intended to sell its stake in
the Incheon unit through a listing in the London Stock Exchange
in December.  

SK Corp. later postponed its planned IPO and advised it will
make a follow-up decision "after January 2007, after taking into
consideration any and all business-related circumstances."

In a TCR-AP report dated Dec. 13, SK Corp. dropped UBS AG as an
advisor for the listing.

Now, WSJ's sources say, the oil refiner not only will be
reviving the London IPO but will also list the Incheon unit in
the Korean market.

SK Corp. previously just aimed for the London listing because
South Korea regulations disallow a company to list after it has
posted an annual net loss.  SK Incheon incurred a KRW167-billion
net loss in 2005.  With the rumors on the domestic listing, the
unit is expected to post a profit in 2006.

An SK spokesperson, however, told WSJ that there has been no
decision on reviving the deal.

Headquartered in Seoul, South Korea, SK Corp. --
http://eng.skcorp.com/-- is an energy and petrochemical company  
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina.  SK Corp.
currently explores, develops and produces oil in 13 nations that
include Peru in Latin America.

Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective Feb. 17, 2006.




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


ADVANCED MEDICAL: IntraLase Deal Cues Moody's Ratings Review
------------------------------------------------------------
Moody's Investors Service placed the ratings of Advanced Medical
Optics Inc. on review for possible downgrade after the company's
disclosure that it has entered into a definitive agreement to
acquire IntraLase Corp. in an all-debt financing for
approximately US$808 million, which translates to US$25 per
share of IntraLase stock.

The proposed transaction is outside of Moody's expectations that
was outlined in its last rating action in June 2006.

Closing of the transaction is expected to occur in the second
quarter of 2007 and will be subject to the receipt of IntraLase
stockholder approval as well as regulatory approvals and other
customary closing conditions.  The Boards of Directors of both
companies have approved the transaction.  AMO is currently in
the process of arranging a final financing package in order to
close the transaction.

The review for possible downgrade is triggered by the
significance of the intended all-debt financing of the
acquisition which would pressure on AMO's credit metrics
resulting in the expectation that the combined entity's pro
forma lease-adjusted debt to EBITDA will rise to above 7.x which
is considerably higher than AMO's current lease-adjusted debt to
EBITDA of 4.3x for the twelve months ended Sept. 30, 2006.  

For the same period, EBIT to interest expense will likely
tighten which would put pressure on the outcome under the
Medical Device Rating Methodology.  Additionally, the proposed
transaction will not be cash flow accretive over the
intermediate term.  With the stretched pro forma credit metrics,
there is concern that AMO will further engage in debt-financed
acquisitions.  The review will also consider AMO's expectations
for pro forma free cash flow, its intention and timeframe to
reduce the amount of incremental pro forma debt and the specific
debt financing structure that will be used at closing.

These ratings were placed on review for downgrade:

   -- US$300 million senior secured revolving credit facility
      due 2009 at Ba1, LGD1, 7%;

   -- US$251 million convertible senior subordinated notes due
      2024 at B2, LGD4, 66%;

   -- Corporate Family Rating at B1; and,

   -- Probability of Default Rating at B1.

Advanced Medical Optics, Inc., headquartered in Santa Ana,
California, develops, manufactures and markets ophthalmic
surgical and contact lens care products.  For the twelve months
ended Sept. 29, 2006, AMO generated slightly over US$1 billion
in revenues.

IntraLase Corp., headquartered in Irvine, California, designs,
develops and manufactures an ultra-fast laser that is used in
refractive and corneal surgery by creating safe and more precise
corneal incisions.  For the twelve months ended Sept. 30, 2006,
IntraLase generated approximately US$122 million in revenues.


CORUS HARDWARE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Corus Hardware Corp.
        P.O. BOX 1028
        Catano, PR 00963

Bankruptcy Case No.: 07-00067

Chapter 11 Petition Date: January 9, 2007

Court: District of Puerto Rico (Old San Juan)

Judge: Sara E. De Jesus Kellogg

Debtor's Counsel: Alexis Fuentes Hernandez, Esq.
                  P.O. Box 9022726
                  San Juan, PR 00902-2726
                  Tel: (787) 607-3436

Estimated Assets: US$500,000 to US$1 Million

Estimated Debts:  US$1 Million to US$10 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
International Steel                      US$808,245
7975 Northwest 56th Street
Miami, FL 33166

West Indian Product Corp.                   164,255
P.O. Box 364427
San Juan, PR 00936-4427

SSW Realty, Inc.                            120,000
Calle B Lot, 21 Luchetti Park
Bayamon, PR 00961

Alabama Metal Industries Co.                 55,460
P.O. Box 11407
Birmingham, AL 35246-035

China Rey Industrial Co.                     54,685
Corazon 11, Milaville
Rio Piedras, PR 00926

Florida Tube Corp.                           32,667

Mendez & Company                             21,319

Autoridad De Energia Electrica               20,553

La Cruz Azul De Puerto Rico                  19,854

Eastern American Insurance Agency            10,832

Ames True Temper, Inc.                        7,000

Triant Consulting Services                    5,626

Puerto Rico Wire Company                      5,380

Best Petroleum                                4,278

Inter-Strap                                   2,448

Lcdo. Victor M. Rivera Torres                 2,417

Ramon Pacheco                                 2,365

Priority Ro-Ro Services, Inc.                 2,215

AAA de Puerto Rico                            2,147

Mercedes Benz Credit                          2,045


PILGRIM'S PRIDE: Names Wayne Lord as VP of Governmental Affairs
---------------------------------------------------------------
Pilgrim's Pride Corp. appointed A. Wayne Lord as vice president
of governmental affairs.

In this newly created position, Mr. Lord will be responsible for
the company's governmental affairs program and will represent
Pilgrim's Pride nationally and at the state level in the
company's Southeastern and Eastern operations.  He will report
to Clifford Butler, Pilgrim's Pride vice chairman.

Mr. Lord, who is based in Atlanta, brings more than 28 years of
experience in agriculture to this position. He had previously
served as vice president of corporate relations for Gold Kist
Inc. for nearly three years.

"Wayne Lord is an experienced leader in Southeastern agriculture
who will help ensure that our company's position on critical
business issues is well known at the state and national
legislative levels," said Mr. Butler.

Mr. Lord began his career in agriculture at Gold Kist in 1979,
working in strategic planning, public relations, export
management and, as a speaker of Russian, the development of
business relations with the former Soviet Union.  In the mid-
1980s, he moved to Europe to establish and administer the
American Peanut Council's commodity marketing program.  He later
returned to the United States and joined Southco Commodities
Inc., serving as president for 12 years.

Mr. Lord also has served as chairman of the board of directors
of the American Peanut Council and was instrumental in creating
a national foundation for scientific research in peanut
production and processing.  A native of Alabama, he attended
Birmingham-Southern College and earned his master's and
doctorate degrees at Georgetown University. He currently serves
on the board of directors of the Georgia Chamber of Commerce and
is a member of the Advisory Council of the University of Georgia
College of Agricultural and Environmental Sciences.

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.

                        *    *    *

Moody's Investors Service's held its Ba2 Corporate Family Rating
for Pilgrim's Pride Corp.  In addition, Moody's revised or held
its probability-of-default ratings and assigned loss-given-
default ratings on the company's note issues, including an LGD6
rating on its US$100 million 9.25% Sr. Sub. Global Notes Due
Nov. 15, 2013, suggesting noteholders will experience a 95% loss
in the event of a default.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Standard & Poor's Ratings Services reported that its 'BB'
corporate credit rating and other ratings on the second-largest
U.S. poultry processor, Pilgrim's Pride Corp., remain on
CreditWatch with negative implications, where they were
originally placed Aug. 21, 2006.




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


PRG GROUP: Closes Acquisition of Prime Communications
-----------------------------------------------------
PRG Group, Inc., closed the acquisition of Prime Communications
on Jan. 5, 2007, as scheduled.

Prime Communications is an Avaya Business partner, specializing
in Voice over IP products and services.  Prime offers end-to-end
voice, data, Internet, and enhanced broadband solutions to
small, medium and enterprise customers seeking a cost effective
IP solution.

Prime Communications offers enterprise wide IP telephone
solutions that are highly reliable, scalable, and easy to
manage.  Prime also provides applications consulting,
integration, and network management.

PRG Group, Inc. -- http://www.prg-group.com/-- is a  
multinational total solutions provider, offering web-based
applications, hosting services, network management, consulting
services, e-business solutions, system upgrades and testing, as
well as infrastructure support.  PRG currently partners with
IBM, Microsoft, and Sun Microsystems to maximize the
benefits transferred to its customers.  Since incorporation in
2001, the company has served clients in North America, Asia and
the Caribbean. PRG has offices in Delaware, New Jersey, New
Hampshire.

                        *    *    *

Late January 2006, PRG Group completed the sale of its Finance
Group to GE Finance and Insurance for NZUS$145 million.  The
Finance Group comprised four companies - Pacific Retail Services
Limited, Pacific Retail Finance Limited, Montreal Financial
Services Limited and Simply Insurance New Zealand Limited.  The
structure of the sale meant the Finance Group's loan book and
other assets were sold to GE, together with the shares in Simply
Insurance New Zealand.  Under the sale agreement, PRG has
changed its name from Pacific Retail Group Limited to PRG Group
Limited. The Company posted a NZUS$75 million capital profit
(net of costs) from the sale.

PRG Group used part of the sale proceeds to repay
NZUS$62.7 million of outstanding Secured Capital Notes and to
repay loans of NZUS$20 million to principal banker, ANZ Bank.  
PRG Group hoped that the sale will allow it to retire all parent
company debt, leaving it in a strong financial position to
continue to fund growth in its major operating businesses.


ROYAL CARIBBEAN: Commences Offering on Fixed Rates Sr. Notes
------------------------------------------------------------
Royal Caribbean Cruises Ltd. has commenced an offering of its
fixed rate Senior Notes due 2014.

The net proceeds of the offering are intended to be used to
refinance short-term debt incurred in connection with the
acquisition of Pullmantur S.A., and the balance, if any, for
general corporate purposes.

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.

                        *    *    *

Moody's Investors Service has assigned on June 7, 2006, a Ba1
rating on Royal Caribbean's US$700 million senior unsecured
notes issuance and affirmed all existing long-term ratings.


ROYAL CARIBBEAN: Moody's Puts Ba1 Rating on Euro Sr. Sec. Notes
---------------------------------------------------------------
Moody's Investors Service assigned Royal Caribbean Ltd.'s new
benchmark size Euro senior unsecured notes Ba1, raised Royal
Caribbean's Speculative Grade Liquidity rating to SGL-2 from
SGL-3 and affirmed all other existing ratings.  The proceeds
from the new note issuance will be used to prepay a portion of
the outstandings under the Euro701 million, 364-day bridge that
funded the acquisition of Pullmantur.

Moody's considers the new note issuance to be a credit positive
because it reduces Royal Caribbean's near-term debt maturity
requirements. Additionally, the size of the note issuance is
large enough to materially boost Royal Caribbean's projected 12-
month liquidity cushion and thereby change the SGL rating to
SGL-2 from SGL-3.

Ratings assigned:

   -- Benchmark size Euro senior unsecured notes due
      2014 rated Ba1, LGD 4, 54%.

Ratings changed:

   -- Speculative Grade Liquidity to SGL-2 from SGL-3.

All other existing ratings have been affirmed and the ratings
outlook remains stable.

Moody's last rating action on RCL occurred December 18, 2006
when the SGL rating was changed to SGL-3 from SGL-2 reflecting
Moody's concerns that 12-month projected liquidity cushion had
tightened due to scheduled 2007 debt maturities and the
Euro701MM Pullmantur 364-day bridge loan that would come due in
the fourth quarter of 2007.

Royal Caribbean Cruises Ltd. is the world's second largest
cruise company. RCL operates three brands, Royal Caribbean
International, Celebrity Cruises, and Pullmantur Cruises and
operates 34 cruise ships with more than 67,600 berths.  The
company currently has six ships on order with delivery dates
that extend through 2010.  Revenues for the twelve months ended
September 30, 2006 were approximately US$5.1 billion. RCL has
two large shareholder groups- A. Wilhelmsen AS, and Cruise
Associates - who each, as of May 2006, respectively own 20.4%,
and 15.8% of the company's total outstanding shares.

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.




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


* URUGUAY: Selling Controlling Stake in Pluna to Leadgate
---------------------------------------------------------
Uruguay will sell a controlling stake in Pluna Lineas Aereas
Uruguayas to Leadgate Investment -- an international consortium
composed of Argentine, German, US and local investors,
Flightglobal.com reports.

Uruguayan Minister of Economy Danilo Astori and Industry
Minister Pablo Rossi told the press that the investors have
committed US$177 million to support ailing Pluna Lineas in
return for a 49% stake in the firm.

Flightglobal.com relates that the Uruguayan government owns 90%
of Pluna Lineas' shares.

As agreed, US$15 million will be made available in cash while
US$10 million will be available as a credit line.  The majority
of the investment, which is US$152 million, will be used to buy
new aircraft, Flightglobal.com notes.

A source close to the negotiation process told Flightglobal.com
that Pluna Lineas will replace its fleet of six aircraft with 20
aircraft, which includes:

          -- 15 jets to serve regional markets, and
          -- five widebodies to reposition Pluna Lineas in the
             international market.

Pluna Lineas operates one ATR 42 turboprop, two Boeing 737-200s,
one 737-300, one 757-200 and one 767-300ER, Flightglobal.com
says, citing the fleet database ACAS.

The source told Flightglobal.com that Pluna Lineas' management
will be replaced.

The Uruguayan government told reporters that the deal will be
finalized when due diligence is completed.

                        *    *    *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.




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


ELECTRICIDAD DE CARACAS: Shares Can Now Trade on Local Exchange
---------------------------------------------------------------
Venezuela's National Securities Commission lifted the ban
against Electricidad de Caracas' shares, allowing it to trade in
the stock exchange, El Universal reports.

The securities commission previously banned the company's shares
over nationalization concerns following President Hugo Chavez's
announcement of his plans to buy out foreign ownership of
companies.

Latinbex, Madrid's Latin American securities market, also
suspended Electricidad de Caracas' shares from trading for two
days.  The ban was also raised after Venezuela's securitities
commission allowed the shares to resume trading.

Electricidad de Caracas is the largest privately owned electric
utility company in Venezuela.  Electricidad de Caracas
transmits, distributes and markets electricity to the
metropolitan Caracas area.  In June 2000, Arlington, Virginia-
based AES Corporation acquired an 87% interest in Electricidad
de Caracas for US$16 billion in a public-tender offer.

                        *    *    *

As reported in the Troubled Company Reporter-Latin American on
Jan. 12, 2007, Fitch Ratings downgraded the senior unsecured
foreign and local currency debt ratings and Issuer Default
Ratings of C.A. La Electricidad de Caracas to 'B+'.  Fitch said
the rating outlook is negative.  The rating action followed
Venezuelan President Hugo Chavez's announcement of nationalizing
the country's power sector.


YPF SA: Parent Firm Not Worried on Venezuela's Nationalization
--------------------------------------------------------------
Officials of Repsol YPF, the parent company of YPF SA, told the
United Press Institute that they don't think the firm will be
affected by Venezuela's planned nationalization.

Venezuelan President Hugo Chavez disclosed plans of
nationalizing CA Nacional Telefonos de Venezuela aka CANTV and
firms in the electricity sector.  He said that those firms that
were privatized would be nationalized.  The president also said
that he will bring to state control lucrative oil projects
foreign firms operate in the Orinoco River basin.  He was
ambiguous with regards to the oil sector.

Recent joint ventures with Petroleos de Venezuela, the state-
owned oil company of Venezuela, would in fact project them from
any future efforts to nationalize the petroleum sector, the
Repsol officials told El Universal.

YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.

                        *    *    *

Fitch Ratings assigned BB+ long-term issuer default rating on
YPF SA.  The outlook is stable.

Moody's Investors Service assigned these ratings on YPF SA:

          -- B2 long-term foreign currency corporate family
             rating; and

          -- Ba2 foreign currency senior unsecured rating;

Fitch said the outlook is negative.


* VENEZUELA: Launching Bank of Economic Unit in Nicaragua
---------------------------------------------------------
The Venezuelan Ministry of Communication said in a statement
that President Hugo Chavez will open a unit of the Bank of
Economic and Social Development aka Bandes in Managua.

The government of Venezuela told the Associated Press that it
will offer housing credits to help poor Nicaraguans construct
homes.

Bandes will establish important financing to benefit 200,000
families to build their own houses, AP says, citing Miguel
Gomez, Venezuela's ambassador to Nicaragua.

Bandes has offered millions in aid to nations including Uruguay
and Grenada.  It has also disclosed plans to expand into
Bolivia, Honduras, Guatemala and Haiti, AP states.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'.  Fitch said the outlook on the
ratings remains stable.


* VENEZUELA: Negotiating with Firm Owners on Nationalization
------------------------------------------------------------
Venezuela will negotiate with company owners, as part of the
move to nationalize telecoms and electric utility firms, Dow
Jones Newswires reports, citing Ricardo Sanguino, the head of
the congressional finance commission.

Venezuela's President Hugo Chavez disclosed plans of
nationalizing CA Nacional Telefonos de Venezuela aka CANTV and
firms in the electricity sector.  

Mr. Sanguino refused to tell Dow Jones any specifics on which
firms in the electricity sector could be affected by the
nationalization drive.

President Chavez only said that those firms that were privatized
would be nationalized, the Associated Press relates.  

Mr. Sanguino told AP that the measures may extend to other
sectors necessary to the security of the state, like steel
production.

President Chavez said he will bring to state control lucrative
oil projects foreign firms operate in the Orinoco River basin,
according to AP.  The projects are controlled by firms like:

          -- Exxon Mobil Corp.,
          -- Chevron Corp., and
          -- ConocoPhillips Co.

Alberto Ramos, the senior economist for Latin America at Goldman
Sachs, told Forbes that it's not in President Chavez's interest
to fully nationalize Venezuela's oil sector.

"He needs their (foreign oil firms) financial muscle and
expertise.  A smarter strategy would be to extract more rent but
let them run the assets," Forbes states, citing Mr. Ramos.

President Chavez also promised to change the commerce code and
strip the central bank of any independence.

President Chavez told AP that the constitution should also be
changed to guarantee government control of the natural gas
sector.  Venezuela law currently allows foreign firms to hold
majority stakes in natural gas projects.

The latest announcements are just the beginning of a series of
policies intended to help the Venezuelan government make a
homegrown socialism in the nation, Dow Jones notes, citing
President Chavez.

President Chavez told Forbes, "We're heading towards socialism,
and nothing and no one can prevent it.  The nation should
recover its ownership of strategic sectors."

Emilio Medina-Smith, an economist at Venezuela's University of
Carabobo, commented to AP, "He (President Chavez) has been
consistent with his vision of how the country should function.  
This should not come as a surprise."

"I think the goal here is to enforce the sanctity of contracts,"
US Energy Secretary Samuel Bodman told AP.  According to him,
President Chavez could violate that principle.

However, Mr. Sanguino told reporters, "We're not going to do
anything illegal.  We will negotiate.  There will always be
compensation."

The Venezuelan government will compensate firms it nationalizes,
the AP says, citing Mr. Sanguino.  

According to AP, this could help calm investors who were alarmed
over the nationalization plan, which sent Venezuelan stocks
tumbling.

Investors in and outside Venezuela abandoned shares in CANTV and
Electricidad de Caracas, which is also considered a possible
target for the government.

President Chavez told AP, "The Caracas stock exchange may fall,
(but) what won't fall is the Venezuelan economy, which is
thriving more than ever."

Venezuelan shares recovered some ground as investors grabbed
cheap buys after hearing that the government would negotiate
compensation.

White House press secretary Tony Snow told AP, "Nationalization
has a long and inglorious history of failure around the world.  
We support the Venezuelan people and think this is an unhappy
day for them."

However, Walter Molano, analyst for BCP securities, said in an
investment note, "Multinationals do not always suffer during
nationalizations."

Takeovers are often used as an excuse to default on local
obligations, while firm managers can extract huge fees to help
run the nationalized facilities that government often lack the
capacity to operate, AP says, citing Mr. Molano.

Government confiscations of firms seem unlikely.  With
Venezuelan oil selling over US$50 a barrel, the government has
plenty of cash to buy out private-sector stakes in major firms.

Javier Kulesz, a UBS Investment Research analyst, said in a
client note, "The Chavez administration has been an active
market player, both as a borrower from the market and as a
lender to regional countries, and it is unlikely to want to
erode these abilities by advancing market-unfriendly
initiatives."

President Chavez told AP he would ask congress to grant him
special powers to pass revolutionary laws for the
nationalizations and other changes.

Meanwhile, Eni SpA will file a massive damages claim against
Venezuela for the profits it has had to give up due to the
nationalization of the Dacion oil field.  Eni will seek the
damages for lost profits on top of a US$1-billion claim for
compensation over the expropriation of the Dacion field.

Petroleos de Venezuela, the state-run oil company of Venezuela,
unilaterally terminated in April 2006 the operating contract for
Eni's activities in Dacion, which produces 50,000-60,000 barrels
daily.

Eni expects the World Bank's International Center for Settlement
of Investment Disputes to start arbitration proceedings by
February.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'.  Fitch said the outlook on the
ratings remains stable.


* VENEZUELA: S&P Revises Outlook to Stable from Positive
--------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
Bolivarian Republic of Venezuela to stable from positive and
affirmed its long-term 'BB-' sovereign currency ratings on the
country.
      
"The outlook revision comes after the inauguration of President
Hugo Chavez and the swearing-in of his new cabinet at which time
he announced sweeping plans to establish greater government
control over the economy, including the nationalization of
telecommunications and power companies, and a constitutional
amendment to strip the Central Bank of its autonomy," explained
Standard & Poor's credit analyst Richard Francis.  This is a
signal that the country risk, already higher than sovereign
risk, is set to increase further.
     
The overall investment climate in Venezuela has clearly
deteriorated in the past six years with increased government
intervention in the private sector.  As a result, foreign direct
investment, including the all-important oil and gas sector, has
plummeted to an average of US$2 billion per annum in the past
five years from US$4.7 billion in 2000.  Furthermore, although
private investment has picked up locally, it appears to be
short-term and more speculative in nature.  

It is not clear what direction the government will take in the
nationalization of the telecom and power companies.  However,
the government has built an impressive amount of liquid assets
that is estimated at US$45 billion.  It therefore, could buy out
the private investors in Electricidad de Caracas and Compania
Anonima Nacional Telefonos de Venezuela as government officials
have recently indicated would be the route the government will
take.

Increased government involvement in the economy will lead to a
more bloated public sector and likely negatively affect the
overall quality of services.  A more radical approach, such as
expropriation, would have a more direct negative impact both for
investment and US-Venezuela relations, and as such,
creditworthiness.

The year ahead will prove pivotal to what direction the
government takes in the next six years, and will therefore be
key to any future rating action.  Venezuela has witnessed a
remarkable reduction in its net debt level in the past three
years, the result of the high oil revenue and strong economic
growth fueled, in large part, by government spending.  High oil
prices have generated large current account surpluses, which, in
turn, have boosted the external assets of the public sector.  

However, the economic policy mix remains problematic due to the
aforementioned high levels of government spending that
is causing inflationary pressures to build.  In addition, the
outlook for the all-important energy sector remains unclear, and
2007 will prove to be decisive for the directions taken by both
state-owned PetrOleos de Venezuela and the private sector.  

Although policy uncertainties have increased following his
announcements, the robust debt and external indicators, which
support creditworthiness, remain unchanged.  Further
improvements in creditworthiness will largely depend on an
improved policy mix that would include one or more of these:

   -- continued gross debt reduction;
   -- an improved fiscal stance;
   -- lowering inflationary pressures; and
   -- a coherent policy to improve the outlook for the energy
      sector.

Meanwhile, a sharp fall in oil prices that would lead to a
reversal of the much-improved net debt and external positions
could lead to a decline in creditworthiness.


* BOOK REVIEW: Working Together
-------------------------------
Title: Working Together: 12 Principles for Achieving
       Excellence in Managing Projects, Teams, and
       Organizations
Author:     James P. Lewis
Publisher:  Beard Books
Paperback:  208 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/158798279X/internetbankru
pt

Henry Berry of Turnarounds & Workouts said in December 2006:
Working Together is about the passionate implementation of a set
of management principles that were instrumental in the
development of new airplanes at the Boeing Company and, in
particular, the groundbreaking Boeing 777 aircraft.

The chief engineer of the Boeing 777 program when it was
undertaken in the early 1980s was Alan Mulally.  He was soon
promoted to general manager of the project and, in 1986, was
named president of Commercial Airplanes.  Mr. Mulally remained
with Boeing for 37 years, eventually leading Boeing Commercial
Airplanes to a turnaround that began in 1996.  

And if the name sounds more than familiar, it should: in
September 2006, Ford Motor Company named Mr. Mulally as its new
President and CEO, citing his record of success during his long
tenure at Boeing.  Through all of those years, Mr. Mulally made
the "working together" principles and practices his gospel.  He
has been a vocal advocate of both the principles and this book
by James Lewis even during his highly visible transition to
Ford.

Working Together chronicles the application of Mulally's
leadership principles during his years at Boeing, especially
during the execution of the 777 project.  The 12 principles
espoused in "working together" comprise a management philosophy
that enabled Boeing "to dramatically increase production on all
of our airplanes, improve our entire production system, and
develop a number of new airplanes all simultaneously," as Mr.
Mulally notes in the Foreword to the book.

The value and effectiveness of working together is conveyed in a
dramatic way by the author.  Mr. Lewis introduces the high
stakes that Boeing faced in developing the 777.  At first, the
company bit off more than it could chew.  Fired by the
enthusiasms and passions of employees exemplified by Mr.
Mulally, Boeing pursued an ideal that exceeded its capacity to
meet.  At one point, Boeing had to "stop global production for
lack of parts."  Boeing was losing money, risking its future,
and disappointing its customers, investors, and employees.

But the roots of its problems were basically a lack of proper
preparedness and organization.  With Mr. Mulally in charge,
operations were revised according to the model of working
together.  Work processes were reinforced, reinvigorated, and
closely monitored.  Practices such as focused agendas for
meetings, clear assignments, communication among disparate
employee segments, solicitation of input, and keeping a project
on track, were implemented.  

Boeing underwent a transformation from a company in danger of
permanently damaging its reputation and competence, to a company
that reaffirmed its preeminence in the field of airplane design
and production.  

As he took over the reins at Ford, Mr. Mulally observed that
many of the challenges he addressed in commercial airline
manufacturing are analogous to the issues he will now face at
the car manufacturing giant.  He stated, "I'm looking forward to
working closely with Bill [Ford] in the ongoing turnaround of
this great company.  I'm also eager to begin engagement with the
leadership team.  I believe strongly in teamwork and I fully
expect that our efforts will be a productive collaboration."

James P. Lewis is President of Lewis Institute, Inc., a training
and consulting company specializing in project management, which
he founded in 1981.  He also teaches seminars on the subject in
the United States, England, and Asia.


                         ***********


S U B S C R I P T I O N   I N F O R M A T I O N

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Copyright 2076.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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