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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 29, 2007, Vol. 8, Issue 20

                          Headlines

A R G E N T I N A

BALL CORP: Posts US$329.6 Million 2006 Net Earnings
FEGITOM SRL: Trustee Verifies Proofs of Claim Until Feb. 27
GETTY IMAGES: Extends Debentures Consent Solicitation to Feb. 7
LEDSEN SRL: Deadline for Claims Verification Is March 26
PETROBAS ENERGIA: Moody's Changes B2 Rating Outlook to Positive

B A H A M A S

PINNACLE ENT: Board Okays Increase of CEO's Salary to US$1 Mil.
WINN-DIXIE STORES: Deregisters US$700 Million of Debt Securities

B E R M U D A

FOSTER WHEELER: Two Units to Build Paradip Refinery in India
GLOBAL CROSSING: Inks 5-Year Contract with US Naval Research
QUANTA CAPITAL: Appoints William Bolinder as Director
SCOTTISH RE: Shareholders to Vote on MassMutual Deal on Feb. 23
SEA CONTAINERS: Can Employ Appleby Hunter as Special Counsel

SEA CONTAINERS: Bingham Tapped as Counsel to Services Committee

B R A Z I L

ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
ALCATEL-LUCENT: Profit & Revenue Figures Slide in 4th Qtr. 2006
COMPANHIA DE BEBIDAS: Gets Approval to Purchase Quilmes Shares
COMPANHIA SIDERURGICA: Corus To Unveil Auction Rules
DURA AUTOMOTIVE: Can Pay US$1.1 Million Prepetition Tax Claims

DURA AUTOMOTIVE: Judge Carey Approves Lease Rejection Procedures
METSO OYJ: Unit Inks EUR35MM Handling Equipment Deal with Alcoa
METSO OYJ: Nomination Panel Wants Current Board Members to Stay
SANMINA-SCI: Posts US$2.78 Billion First Quarter 2007 Revenue
SMITHFIELD FOODS: Eliminating Gestation Crates for Pregnant Sows

UGS CORP: Siemens A&D to Acquire Firm for US$3.5 Billion
UGS CORP.: Moody's May Withdraw Ba2 Secured Bank Debt Rating
UGS CORP.: S&P Places B+ Corporate Credit Rating on CreditWatch
VARIG: Losses 119 Flight Frequencies for Non-Use

C A Y M A N   I S L A N D S

CAN FINANCIAL: Last Day for Proofs of Claim Filing Is on Jan. 30
CENTENNIAL FUNDING: Proofs of Claim Filing Deadline Is Jan. 30
CMB FINANCE: Last Day to File Proofs of Claim Is on Jan. 30
COLNE LEASING: Creditors Must File Proofs of Claim by Jan. 30
COPPER BEECH: Creditors Have Until Jan. 30 to File Claims

DELAWARE CBO: Creditors Must Submit Proofs of Claim by Jan. 30
DOVE FINANCIAL: Proofs of Claim Filing Deadline Is on Jan. 30
EFG ORA: Creditors Have Until Jan. 30 to File Proofs of Claim
EXPLORATION SECURITIES: Proofs of Claim Filing Is Until Jan. 30
HANOVER SQUARE: Deadline for Proofs of Claim Filing Is Jan. 30

HIROSEN FUNDING: Proofs of Claim Filing Deadline Is on Jan. 30
ISHINOMAKI FUNDING: Claims Filing Deadline Is on Jan. 30
JACCS ASSET: Creditors Must Submit Proofs of Claim by Jan. 30
JETS XI: Last Day for Proofs of Claim Filing Is on Jan. 30
JFCC LTD: Deadline for Filing of Proofs of Claim Is on Jan. 30

LAKE FUNDING: Creditors Have Until Jan. 30 to Submit Claims
LANGDALE: Last Day to File Proofs of Claim Is on Jan. 30
MPV FUNDING: Proofs of Claim Filing Deadline Is on Jan. 30
NOMURA 1997-2: Deadline for Proofs of Claim Filing Is on Jan. 30
NORMANDIE CORP: Last Day for Proofs of Claim Filing Is Jan. 30

NORSE CBO: Creditors Must File Proofs of Claim by Jan. 30
OSCAR FUNDING: Proofs of Claim Must be Filed by Jan. 30
STONE TOWER: Deadline for Proofs of Claim Filing Is on Jan. 30

C H I L E

BELL MICROPRODUCTS: Preliminary Results Show Increase in Revenue
REVLON INC: Completes US$100-Million Rights Offering

D O M I N I C A N   R E P U B L I C

AFFILIATED COMPUTER: Earns US$61.4 Mln in Quarter Ended Sept. 30

E C U A D O R

PETROECUADOR: Exchange Committee to Meet with PDVSA
PETROECUADOR: Launching Insurance Policy Tender for Assets

E L   S A L V A D O R

SBARRO INC: S&P Affirms B- Corporate Credit Rating

G U A T E M A L A

BANCAFE: Monetary Official & Bank Superintendent to be Probed

H O N D U R A S

SBARRO INC: Loan Add-on Prompts S&P to Affirm Ratings

M E X I C O

ADVANCED MARKETING: Gets Court Nod to Employ BSI as Claims Agent
ADVANCED MARKETING: Wants to Hire Professionals Sans Approval
AIR MADRID: Air Plus Comet Takes Over Workforce & 7 LatAm Routes
ALASKA AIR: Posts US$52.6 Million 2006 Net Loss
BALDOR ELECTRIC: Prices Common Stock & Senior Notes Offerings

BALDOR ELECTRIC: Moody's Affirms Ba3 Rating on US$550-Mil. Notes
FORD MOTOR: Likely to Report Loss in 2006 Fourth Quarter
FORD MOTOR CREDIT: Earns US$1.3 Billion in 2006
GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports

LEAR CORP: Posts US$4.3 Billion Fourth Quarter 2006 Net Sales
NORTEL NETWORKS: Declares Preferred Share Dividends
VITRO SAB: Discloses Successful US$1.0 Billion Bond Offering
WERNER LADDER: Evaluating US$175 Million Acquisition Offer

N I C A R A G U A

XEROX CORP: Total Revenue Rises to US$4.4 Bil. in Fourth Quarter

P U E R T O   R I C O

ADELPHIA COMM: Court Directs Bondholders to Post US$3-Bil. Bond
HORIZON LINES: Subsidiary Inks Accord with Northland Services
HORNBECK OFFSHORE: Schiffrin Sues Firm in US District Court
NBTY INC: Posts US$506 Million First Quarter 2007 Net Sales

V E N E Z U E L A

DAIMLERCHRYSLER: Del. Gives Incentive Bundle to Chrysler Plant
DAIMLERCHRYSLER AG: Schrempp's Resignation Came as No Surprise
PEABODY ENERGY: Posts 45% Increase in 2006 Earnings
PETROLEOS DE VENEZUELA: Meeting with Petroecuador Committee

* BDO SEIDMAN: Banco Espirito Files Civil Suit for US$170 Mil.
* Chadbourne & Parke Taps R. Simmonds-Watson as Program Manager
* Fitch Ratings Named Rating Agency of the Year by ISR
* BOOK REVIEW: Health Plan


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A R G E N T I N A
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BALL CORP: Posts US$329.6 Million 2006 Net Earnings
---------------------------------------------------
Ball Corp. reported full-year 2006 net earnings of US$329.6
million on sales of US$6.62 billion, compared with US$272.1
million on sales of US$5.75 billion in 2005.
    
Fourth quarter 2006 net earnings were US$48.3 million on sales
of US$1.59 billion, compared with US$47.4 million on sales of
US$1.29 billion in the fourth quarter of 2005.
    
In the fourth quarter of 2006, Ball Corp. changed from the last-
in, first-out (LIFO) inventory accounting method to the first-
in, first out (FIFO) method for its metal beverage packaging,
Americas, and metal food and household products packaging,
Americas, segments.  All results have been presented on a FIFO
basis as if the accounting change occurred as of Jan. 1, 2005.
    
Fourth quarter 2006 results included net after-tax costs of
approximately US$20 million, from business consolidation,
reduced by a one-time tax gain.  Full-year 2006 results included
property insurance proceeds resulting from a fire at a plant in
Germany, offset by business consolidation costs, for a net
after-tax gain of US$25.6 million, or 24 cents per diluted
share.  The fourth quarter of 2005 included an after-tax net
cost of US$7.3 million for business consolidation gains and debt
refinancing costs.  For the full-year 2005, the net effect of
debt refinancing and business consolidation costs was US$25.7
million, after tax.  

Ball Corp's chairperson, president and chief executive officer
R. David Hoover said he was generally pleased with 2006 results
and particularly with the corporation's strong fourth quarter.  
    
"On a comparable basis our diluted earnings per share grew to
US$2.90 in 2006 from US$2.71 in 2005 and to 65 cents from 52
cents in the fourth quarter.  That was a solid accomplishment in
the inflationary and competitive environments in which we
compete.  We are particularly pleased with how our results
improved during the second half of 2006 as we made progress with
important initiatives to reduce costs, improve efficiencies and
build margins and returns to more acceptable levels heading into
2007," Mr. Hoover stated.

Metal Beverage Packaging, Americas, segment operating earnings
were US$269.4 million in 2006 on sales of US$2.60 billion,
compared with US$234.8 million on sales of US$2.39 billion in
2005.  The 2005 results included business consolidation costs of
US$19.3 million.  For the fourth quarter 2006, earnings were
US$75.9 million on sales of US$611.9 million in 2006, compared
with US$51.8 million on sales of US$545.7 million in the fourth
quarter of 2005.
    
"Fourth quarter shipments of beverage cans in North America
remained strong as warm weather dominated many regions.  For the
year our beverage can shipments were up more than 4%.  Our
capital project to update and streamline the manufacture of
beverage can ends is progressing nicely and we are beginning to
see the positive results expected from that investment," said
Mr. Hoover.

Metal Beverage Packaging, Europe/Asia, segment results in 2006
were operating earnings of US$268.7 million on sales of US$1.51
billion, compared with US$180.5 million on sales of US$1.35
billion in 2005.  The 2006 results included the pre-tax property
insurance gain of US$75.5 million related to a fire in a German
plant.  For the quarter, operating earnings in 2006 were US$33
million on sales of US$352.6 million, compared with US$35.5
million on sales of US$296.1 million in the fourth quarter of
2005.  The 2005 fourth quarter and full-year results included a
US$9.3 million gain related to tax matters on prior
restructuring activities in China.
    
"The rebuilding necessary following the fire in Germany is well
underway.  Because of the fire and strong demand for beverage
cans, the supply situation throughout Europe has been very tight
in 2006 and we finished the year with inventories below 2005
year-end levels.  Demand for beverage cans has been strong in
Europe and China.  Our can sales in 2006 grew more than 8% in
Europe and by double digits in China over 2005 levels.  Our
fourth quarter results also were affected positively by the
strength of the euro," Mr. Hoover commented.

Metal Food & Household Products Packaging, Americas, segment
results for the year were operating earnings of US$6 million on
sales of US$1.19 billion, compared with US$19.1 million on sales
of US$824 million in 2005.  The 2006 results included business
consolidation costs of US$35.5 million, largely related to
closing a metal food can plant in Ontario.  The 2005 full-year
results included business consolidation costs of US$11.2 million
related to closure of a metal food can plant in Quebec.  For the
fourth quarter of 2006, segment results were a loss of US$20.9
million, largely related to the Ontario plant closure, on sales
of US$302.1 million, compared with a loss of US$4.8 million on
sales of US$168.5 million in the fourth quarter of 2005.
    
"Strong seasonal shipments to certain food can customers and a
later than normal tomato harvest in certain parts of the country
helped fourth quarter and full-year results in the food and
household products packaging segment.  However, a pre-tax
purchase accounting adjustment of US$6.1 million for inventory
valuations associated with the US.  Can acquisition reduced
segment earnings in 2006," Mr. Hoover said.

Plastic Packaging, Americas, segment results for 2006 were
operating earnings of US$24.7 million on sales of US$645.4
million, compared with US$16.7 million on sales of US$487.5
million in 2005.  For the fourth quarter, earnings were US$7.7
million on sales of US$158.6 million in 2006, compared with
US$4.5 million on sales of US$113.6 million in 2005.
    
Mr. Hoover noted, "We are beginning to produce and sell greater
numbers of higher margin, heat set bottles, and the plastic
container assets we acquired at the end of the first quarter of
2006 are performing well.  We continue to explore ways to drive
down costs and improve results from the higher-volume, lower-
margin commodity bottles for water and carbonated soft drinks,
where returns do not currently meet our cost of capital."

Aerospace and Technologies segment results were operating
earnings of US$50 million on sales of US$672.3 million in 2006,
compared to US$54.7 million on sales of US$694.8 million in
2005.  For the fourth quarter, earnings were US$16.7 million on
sales of US$166.6 million in 2006, compared with US$15.7 million
on sales of US$167.3 million in the fourth quarter of 2005.
    
"The Aerospace and Technologies segment had a strong fourth
quarter.  Several key contracts were won during the quarter,
including one to build the next generation WorldView 2 satellite
for DigitalGlobe.  That helped build year end contracted backlog
to a record US$886 million," Mr. Hoover said.

Ball Corp.'s executive vice president and chief financial
officer Raymond J. Seabrook said that free cash flow in 2006 was
below previously anticipated levels primarily due to higher
packaging raw material inventories in North America.
    
"We did not draw down our elevated North American raw material
inventories as projected, but those higher inventories will be
eliminated through the first half of 2007. The result in 2006
was free cash flow of US$183 million instead of the US$250
million we had projected, but the shortfall is timing-related
and in 2007 we expect at least US$350 million of free cash flow.  
We expect to use the cash generated in 2007 to buy back
approximately US$175 million in stock and reduce debt levels by
more than US$125 million," Mr. Seabrook stated.
    
According to Mr. Hoover, Ball Corp. finished 2006 in strong
fashion and that he expects that momentum to carry into 2007.
    
Mr. Hoover commented, "We look forward to getting back the
manufacturing capacity in Europe that was lost to the fire, but
since that will not happen until the second quarter, we expect
the supply picture to remain very tight for beverage cans in
Europe in 2007.  We expect demand for beverage cans in China to
remain strong in 2007, leading up to the 2008 Beijing Olympics,
and we believe the cost squeeze we experienced there in 2006 due
largely to the cost of aluminum is under control.  In metal
beverage packaging, Americas we expect the benefits we began to
see late in 2006 from our project to update our end-making
capabilities will continue and increase in
2007.  Results from our metal food and household products
packaging and plastic packaging segments should be improved in
2007 over 2006, in part due to having a full year's results from
the acquisitions we made at the end of the first quarter of 2006
and in part from the synergies realized as a result of those
acquisitions.  That said, our plastic packaging and metal food
and household packaging results have not been acceptable.  We
still have work to do to properly complete the integration of
our acquisitions, balance our manufacturing capabilities
following capacity reductions and generally improve returns in
these segments.
    
"The outlook for aerospace and technologies for 2007 is much
improved over where we were at the beginning of 2006.  The
management and employees in that segment did a tremendous job of
working through a difficult 2006, controlling costs and capital
spending while winning significant new business," Mr. Hoover
said.

Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and
plastic packaging products.  It owns Ball Aerospace &
Technologies Corp. -- a developer of sensors, spacecraft,
systems and components for government and commercial customers.
Ball Corp. reported sales of US$5.7 billion in 2005 and the
company employs about 13,100 people worldwide, including
Argentina.

                        *    *    *

Moody's Investors Service assigned ratings to Ball Corp.'s
US$500 million senior secured term loan D, rated Ba1, and
US$450 million senior unsecured notes due 2016-2018, rated Ba2.
It also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550
million senior unsecured notes due Dec. 12, 2012.  Moody's said
the ratings outlook is stable.

Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+'
senior secured credit facilities, and 'BB' senior unsecured
notes.

Standard & Poor's Ratings Services also affirmed its 'BB+'
corporate credit rating on Ball Corp.

S&P placed the ratings in March 2006.


FEGITOM SRL: Trustee Verifies Proofs of Claim Until Feb. 27
-----------------------------------------------------------
Horacio Jorge Redolatti, the court-appointed trustee for Fegitom
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until Feb. 27, 2007.

Mr. Redolatti will present the validated claims in court as
individual reports on April 13, 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 Fegitom SRL 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 Fegitom SRL's
accounting and banking records will follow on May 29, 2007.

Mr. Redolatti is also in charge of administering Fegitom SRL'
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

         Fegitom SRL
         Chacabuco 3242
         Mar del Plata
         Buenos Aires, Argentina

The trustee can be reached at:

         Horacio Jorge Redolatti
         Rawson 2272, Mar del Plata
         Buenos Aires, Argentina  


GETTY IMAGES: Extends Debentures Consent Solicitation to Feb. 7
---------------------------------------------------------------
Getty Images, Inc., has again extended the expiration time for
its previously announced solicitation of consents from the
holders of record of its outstanding 0.50% Convertible
Subordinated Debentures, Series B due 2023 in the aggregate
principal amount of US$265 million.

The Consent Solicitation, which was scheduled to expire at 5:00
p.m., New York City time, on Jan. 24, 2007, will now expire at
5:00 p.m., New York City time, on Feb. 7, 2007.  Holders may
deliver their consents to the Tabulation Agent at any time
before the expiration time, as extended.  All other terms and
conditions of the Consent Solicitation remain unchanged.

The Consent Solicitation is being made upon the terms, and is
subject to the conditions, set in the Consent Solicitation
Statement, dated Jan. 4, 2007, a copy of which is attached as an
exhibit to the Current Report on Form 8-K furnished by Getty
Images to the Securities and Exchange Commission on
Jan. 5, 2007.  The proposed amendments and waiver require the
consent of holders of a majority in aggregate principal amount
of the outstanding Debentures.

Getty Images has retained Goldman, Sachs & Co. to serve as the
Solicitation Agent and D.F. King & Co., Inc. to serve as
Information Agent and Tabulation Agent for the Consent
Solicitation.  Requests for documents may be made directly to:

          D.F. King & Co., Inc.
          48 Wall Street, 22nd Floor
          New York, New York
          Tel: 800-488-8095 (toll free)
               212-269-5550 (collect)

Questions regarding the solicitation of consents may be directed
to:

          Goldman, Sachs & Co.
          Attn: Credit Liability Management Group
          Tel: 800-828-3182 (toll free)
               212-357-0775 (collect)

Getty Images Inc. -- http://gettyimages.com/-- (NYSE: GYI)
creates and distributes visual content and the first place
creative professionals turn to discover, purchase and manage
imagery.  The company's award-winning photographers and imagery
help customers create inspiring work which appears every day in
the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than
100 countries, Getty Images believes in the power of imagery to
drive positive change, educate, inform, and entertain.  The
company has corporate offices in Australia, the United Kingdom
and Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Seattle, Washington-based visual imagery company Getty Images
Inc., including lowering the corporate credit rating to 'B+'
from 'BB', and placed the ratings on CreditWatch with developing
implications.


LEDSEN SRL: Deadline for Claims Verification Is March 26
--------------------------------------------------------
Marcos Livszyc, the court-appointed trustee for Ledsen SRL's
reorganization proceeding, will verify creditors' proofs of
claim until March 26, 2007.

Mr. Livszyc will present the validated claims in court as
individual reports on May 11, 2007.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Ledsen SRL 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 Ledsen SRL's
accounting and banking records will follow on June 26, 2007.

On Dec. 17, 2007, Ledsen SRL's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

          Marcos Livszyc
          Nunez 6387
          Buenos Aires, Argentina


PETROBAS ENERGIA: Moody's Changes B2 Rating Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed the rating outlook for
Petrobras Energia SA's B2 foreign currency Corporate Family
Rating to positive from stable.  The outlook change is taken in
conjunction with the change in the outlook for Argentina's B2
foreign currency ceiling to positive from stable on
Jan. 16, 2007.  Petrobas Energia's Corporate Family Rating is
constrained by Argentina's foreign currency ceiling. This change
in the Corporate Family Rating outlook does not reflect a change
in Moody's assessment of Petrobas Electric's fundamental credit
risk or a change in the rating or outlook for the company's Ba2
foreign currency bond rating.

Petrobras Energia SA, headquartered in Buenos Aires, Argentina,
is a 75.8% owned affiliate of Petrobras Energia Participaciones
SA0 and an indirect 67.2% owned affiliate of Petroleo Brasileiro
SA.  Petrobas Electric is engaged in petroleum exploration and
production, refining, marketing, petrochemicals and electric
power generation.




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PINNACLE ENT: Board Okays Increase of CEO's Salary to US$1 Mil.
---------------------------------------------------------------
The Board of Directors of Pinnacle Entertainment Inc.'s
Compensation Committee approved an increase in annual base
salary of Daniel R. Lee, Chief Executive Officer, to
US$1,000,000 per year, effective Jan. 1, 2007.

In addition, the Compensation Committee approved 2006 cash
and deferred bonuses for Mr. Lee of US$656,250 and US$656,250,
respectively.  The bonuses were based on achievement of
previously-established objective performance goals pursuant
to the 2005 Equity and Incentive Performance Plan.

The deferred bonus is paid in three equal annual installments
beginning January 2008, and no interest is accrued or paid on
such deferred amount.  The deferred bonus is also payable upon
termination in certain circumstances and forfeited under certain
other circumstances.  The cash bonus was paid on Jan. 18, 2007.

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.


WINN-DIXIE STORES: Deregisters US$700 Million of Debt Securities
--------------------------------------------------------------
Reorganized Winn-Dixie Stores, Inc., and certain of its
subsidiaries have amended the registration statement they filed
with the U.S. Securities and Exchange Commission to deregister
US$700,000,000 in aggregate principal amount of debt securities.

The debt securities, which were originally registered under the
Securities Act of 1933 for issuance in one or more offerings,
remain unsold.

Winn-Dixie has also reported that seven of its subsidiaries,
which were listed as registrants in the original registration
statement, have been dissolved or merged into other
subsidiaries.  These entities were Astor Products, Inc.;
Crackin' Good, Inc.; Dixie Packers, Inc.; Monterey Canning Co.;
Winn-Dixie Charlotte, Inc.; and Winn-Dixie Louisiana, Inc.

The Winn-Dixie subsidiaries that are co-registrants under the
amended registration statement were Deep South Products, Inc.;
Winn-Dixie Logistics, Inc.; Winn-Dixie Montgomery, Inc.; Winn-
Dixie Procurement, Inc.; and Winn-Dixie Raleigh, Inc.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest  
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on
Nov. 9, 2006.  Winn-Dixie emerged from bankruptcy on
Nov. 21, 2006.




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FOSTER WHEELER: Two Units to Build Paradip Refinery in India
------------------------------------------------------------
Foster Wheeler Energy Ltd. and Foster Wheeler India Private
Ltd., Foster Wheeler Ltd.'s two subsidiaries in its Global
Engineering and Construction Group, have been awarded services
contracts by Indian Oil Corp. Ltd. aka IOCL for the Paradip
Refinery Project, which is expected to be one of the largest
integrated refinery petrochemicals complexes in India.  This
world-scale facility, comprising a new export refinery and
petrochemicals complex, will be built in Orissa State.

The terms of the contracts were not disclosed, and the projects
will be included in the company's first-quarter 2007 bookings.

Foster Wheeler's scope includes the front-end engineering design
or FEED, preparation of cost estimates and the overall project
strategy, and supervision of early works on site up to financial
investment decision for the refinery, which is expected in
mid-2008.

The planned new refinery, with a crude processing capacity of 15
million tons per annum (TPA), will include a fluidized catalytic
cracking unit, an aromatics complex and a polypropylene unit.  
The new complex will ultimately produce 700,000 TPA of
polypropylene, 1.2 million TPA of paraxylene, 600,000 TPA of
styrene monomer, along with 10.5 million TPA of refined
petroleum products.  This award also includes a detailed
feasibility study for Phase 2 of the development, the Paradip
Naphtha Cracker Project.

"Foster Wheeler is very pleased to be awarded this strategically
important project.  This award reflects our in-depth expertise
in refining and petrochemicals and in the successful integration
of refining and petrochemicals production. We have been active
in the Indian market for over seventy years and it remains a
very important market for Foster Wheeler.  We look forward to
working with IOCL to deliver a high quality FEED which meets or
exceeds our client's expectations," Foster Wheeler Energy's
chairperson and chief executive officer Steve Davies said.

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- offers a broad range of engineering,
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


GLOBAL CROSSING: Inks 5-Year Contract with US Naval Research
------------------------------------------------------------
Global Crossing has signed a five-year contract with the United
States Naval Research Laboratory or NRL for private line
services -- with a total contract value of US$10 million if all
options are exercised -- connecting US Forces in a cross-Pacific
link.  It's the first major deal signed by Global Crossing after
its recent US General Services Administration's Federal Supply
Schedule award.

Global Crossing's private line services will connect two of the
Department of Defense's Large Data Joint Capability Technology
Demonstration or JCTD sites.  This transoceanic link will
utilize advanced InfiniBand-based data transport protocol, a
switched fabric communications link primarily used in high-
performance computing.  The InfiniBand protocol on Global
Crossing's network will provide the DoD with near real time
connectivity and unprecedented war fighter support.

"This contract with the NRL under the GSA 70 Schedule is
significant because it helps Global Crossing to build our
credentials as a prime contractor to the US Government as we
expand our business and product offerings to the Federal
marketplace.  Global Crossing is supplying an OC-48 (STM-16)
link that will connect Naval Research Laboratories in Washington
D.C. and a location in the Pacific Command, enabling the
Department of Defense to exchange high-bandwidth information
between the two sites quickly and efficiently," said John
Legere, Global Crossing's chief executive officer.

The GSA 70 Schedule, which falls under the GSA's Federal Supply
Service, gives Global Crossing the ability to sell directly to
all US Government agencies regardless of their geographic
location.  Earlier this year, the GSA's Federal Supply Service
and Southeast Sunbelt Region granted Global Crossing the right
to put out tenders for request for proposals for enhanced data
transmission services.  The states covered in the GSA's
Southeast Sunbelt region include:

         -- Alabama,
         -- Florida,
         -- Georgia,
         -- Kentucky,
         -- Mississippi,
         -- North Carolina,
         -- South Carolina, and
         -- Tennessee.

The GSA supplies products and communications for US government
offices to help federal agencies better serve the public by
offering, at best value, superior workplaces, expert solutions,
acquisition services and management policies.  In support of the
GSA's mission, Global Crossing is supplying enhanced data
transmission services including IP-centric services such as IP
VPN, Dedicated Internet Access or DIA and Private Line, as well
as collaboration services.

Global Crossing is sole GSA Schedule 70 telecommunications
provider that offers Internet Protocol version 6 (IPv6)
capabilities that are ready for installation.  Global Crossing
has fully deployed IPv6 across its global Internet protocol
network, and it's a standard service component of Global
Crossing's global Internet Access Services and IP Virtual
Private Network.

Global Crossing Private Line provides connectivity for a wide
range of applications used by enterprise customers, including
hosting, resource planning, business continuity, content
distribution and disaster recovery.  The service also supports
high-bandwidth operations such as large data transfers, medical
imaging, record archiving, database sharing and replication, and
remote office access to application servers.  Global Crossing's
Private Line service capacities range from T1/E1 up to OC-
48/STM-16.

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

At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet
reflected a US$131 million stockholders' deficit.  At
June 30, 2006, the company reported US$1.87 billion in total
assets and US$1.95 billion in total liabilities, resulting to a
stockholders' deficit of US$86 million.  It also reported a
US$173 million stockholders' deficit on Dec. 31, 2005.


QUANTA CAPITAL: Appoints William Bolinder as Director
-----------------------------------------------------
Quanta Capital Holdings Ltd. has appointed William H. Bolinder
as a director, taking the place of Nigel W. Morris, who was also
chairperson of the Compensation Committee and member of the
Audit and Governance and Nominating Committees.

Mr. Bolinder currently serves as a board member and lead
director of Endurance Specialty Holdings Ltd.  Previously he
served as President and Chief Executive Officer of Acadia Trust
N.A. and was a member of the Group Management Board and head of
the Business Development Division Corporate and Commercial for
Zurich Financial Services Group.

"I thank Nigel Morris for his wisdom and insight during the more
than three years that he served on our board.  As we continue to
execute the run-off plan during the coming years, we look
forward to the contributions of Bill Bolinder to our board.  We
believe that Bill's deep knowledge of the insurance business as
a senior executive with 40 years of international insurance
experience will complement and contribute to our Board and to
our CEO, Peter Johnson, and his management team. On behalf of
the Board, I am pleased that he has agreed to join us," James J.
Ritchie, Quanta Capital's chairperson commented.

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.

On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd.  These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd.  A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares.  All ratings have been
removed from under review with negative implications and
assigned a negative outlook.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.


SCOTTISH RE: Shareholders to Vote on MassMutual Deal on Feb. 23
---------------------------------------------------------------
Scottish Re Group Ltd. will hold an Extraordinary General
Meeting of Shareholders at 11 a.m. local time on Feb. 23 to vote
on its previously announced agreement between Scottish Re Group
and MassMutual Capital Partners LLC and certain affiliates of
Cerberus Capital Management L.P.

The meeting will be held at:

         Fairmont Hamilton Princess Hotel
         76 Pitts Bay Road
         Pembroke HM11
         Hamilton
         Bermuda

Scottish Re set Jan. 19 as the record date for the determination
of shareholders entitled to vote at the Extraordinary General
Meeting.  Scottish Re will mail a definitive proxy statement to
all shareholders of record as of the record date on Jan. 22.  
Scottish Re urges all shareholders to sign, date and return
their proxy cards without delay.

Scottish Re Group Ltd. -- http://www.scottishre.com/--
provides reinsurance of life insurance, annuities and annuity-
type products through its operating companies in Bermuda,
Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and
Windsor, England.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities

                        *    *    *

Moody's Investors Service continues to review the ratings of
Scottish Re Group Ltd. with direction uncertain following the
announcement by the company that it has entered into an
agreement to sell a majority stake to MassMutual Capital
Partners LLC, a member of the MassMutual Financial Group and
Cerberus Capital Management, L.P., a private investment firm.

Ratings under review include Scottish Re Group Limited's senior
unsecured debt which is rated at Ba3 and preferred stock rated
at B2.

Standard & Poor's Ratings Services has also revised the
CreditWatch status of its ratings on Scottish Re Group Ltd.,
Scottish Re's operating companies, and dependent unwrapped
securitized deals to positive from negative.  Scottish Re has a
'CCC' counterparty credit rating, and Scottish Re's operating
companies have 'B+' counterparty credit and financial strength
ratings.  These ratings were placed on CreditWatch negative on
July 31, when Scottish Re announced poor second-quarter results
and that liquidity was tight.

Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain
on Rating Watch Negative following the announcement that SCT has
entered into an agreement which will result in a new equity
investment into the company of US$600 million.  SCT's ratings
were placed on Rating Watch Negative on July 31, 2006, due to
concerns regarding the company's ability to repay US$115 million
of senior convertible notes that are expected to be put to the
company on Dec. 6, 2006.  Ratings on Rating Watch Negative
include the company's BB issuer default rating and the BB-
rating on its 4.5% US$115 million senior convertible notes.

A.M. Best Co. has downgraded the Financial Strength Rating to B
from B+ and the issuer credit ratings to "bb+" from "bbb-" of
the primary operating insurance subsidiaries of Scottish Re
Group Ltd.  A.M. Best has also downgraded the ICR of
Scottish Re to "b" from "bb-" and all of Scottish Re's debt
ratings.  All ratings remain under review with negative
implications.


SEA CONTAINERS: Can Employ Appleby Hunter as Special Counsel
------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates obtained
permission from the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware to employ Appleby
Hunter Bailhache as their special counsel for Bermuda legal
matters, nunc pro tunc to Oct. 15, 2006.

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Edwin S. Hetherington, vice president, general counsel, and
secretary of Sea Containers Ltd., related that Appleby has
served as the Debtors' outside Bermudian counsel on matters
including corporate and securities law and general litigation
since 1974.  

Mr. Hetherington told Judge Carey that that the firm's
professionals have become very familiar with the Debtors and
their business affairs, and have gained extensive experience in
most aspects of the Debtors' general legal work and needs.

Specifically, the Firm is expected to:

   -- continue to advise and represent SCL in accordance to its
      prior representation; and

   -- advise and represent the Debtors with respect to SCL's
      Bermuda insolvency proceeding and other matters that may
      arise in the Debtors' Chapter 11 cases or the Bermuda
      proceeding in the ordinary course of operations.

Appleby will be paid for its services based on the firm's
customary hourly rates:

         Professionals             Hourly Rate
         -------------             -----------
         Partners                  US$400 - US$625
         Associates                US$200 - US$590
         Paraprofessionals         US$125 - US$260

The firm will also be reimbursed for necessary out-of-pocket
expenses.

Mr. Hetherington relates that Appleby has received a
replenishing prepetition retainer with a remaining balance of
US$183,856 for providing the Debtors with representation on
Bermuda legal matters prior to the Petition Date.  In addition
to the retainer, Appleby has also received US$205,941 from the
Debtors on account of services rendered regarding the Bermuda
legal matters.

Jennifer Yolande Fraser, Esq., a partner at Appleby, assures the
Court that her firm does not hold any interest adverse to
Debtors or their estates with respect to the matters on which it
is to be employed.

                   About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides  
passenger and freight transport and marine container leasing.  
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore.  The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974.  On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).  
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 9; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or     
215/945-7000)


SEA CONTAINERS: Bingham Tapped as Counsel to Services Committee
---------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Sea
Containers Ltd. and its debtor-affiliates' chapter 11 cases
seeks authority from the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware to retain Bingham
McCutchen, Morris, Nichols, Arsht & Tunnell LLP, as its counsel
serving in the Services Committee, nunc pro tunc to
Oct. 26, 2006.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
the Creditors Committee sought Court approval to retain Bingham
McCutchen LLP as counsel to its financial members sub-committee.  
The U.S. Trustee indicated concerns as to the sub-committee
structure described in that application.

The amended application supersedes the Original Application in
all respects.

                   The Services Committee

Bingham McCutchen and counsel to certain other Creditors
Committee members met with the U.S. Trustee to discuss the
concerns raised and to attempt to resolve them.  As a result of
the discussions and in light of the U.S. Trustee's reservations
about the proposed sub-committee structure, the Creditors
Committee requested the appointment of a separate committee to
represent the interests of the unsecured creditors of Sea
Containers Services Ltd.  The U.S. Trustee has indicated that it
would be appointing a Services Committee.

Andrew B. Cohen, managing director of Dune Capital LLC, relates
that Bingham McCutchen is well suited for the representation
required by the Creditors Committee.  The firm is experienced in
all aspects of the law that are likely to arise in the Debtors'
bankruptcy cases.  

From May 2006, Bingham McCutchen represented an ad hoc committee
of 10-3/4% senior notes due 2006, 7-7/8% senior notes due 2008,
12-1/2% senior notes due 2009, and 10-1/2% senior notes due 2012
issued by Sea Containers Ltd.  Bingham McCutchen reviewed and
analyzed the Debtors, their financial situation, and their
operations.  As a result, the firm is already very familiar with
the Debtors' financial and operational situations, material
constituencies, and issues requiring resolution in order to
reorganize.

Among other things, Bingham McCutchen will:

    a. provide legal advice with respect to the Creditors
       Committee's rights, powers, and duties in the bankruptcy
       cases;

    b. represent the Creditors Committee at all hearings and
       other proceedings;

    c. advise and assist the Creditors Committee in discussions
       with the Debtors and other parties-in-interest, as well
       as professionals retained by any of the parties,
       regarding the overall administration of the bankruptcy
       cases;

    d. assist the Creditors Committee in analyzing the claims of
       the Debtors' creditors and in negotiating with those
       creditors;

    e. assist with the Creditors Committee's investigation of
       the assets, liabilities, and financial condition of the
       Debtors and of the operations of their businesses;

    f. assist the Creditors Committee in its analysis of, and
       negotiations with, the Debtors or any third party
       concerning matters related to, among other things,
       formulating the terms of a plan or plans of
       reorganization for the Debtors;

    g. assist and advise the Creditors Committee with respect to
       their communications with the general creditor body
       regarding matters in the bankruptcy cases;

    h. review and analyze on behalf of the Creditors Committee
       all pleadings, orders, statements of operations,
       schedules, and other legal documents;

    i. prepare on behalf of the Creditors Committee of all
       pleadings, orders, reports and other legal documents as
       may be necessary in furtherance of the Creditors
       Committee's interests and objectives; and

    j. perform all other legal services for the Creditors
       Committee that may be necessary and proper to facilitate
       the Committee's discharge of its duties in the bankruptcy
       cases and any related proceedings.

Since the formation of the Creditors Committee, Bingham
McCutchen has acted to protect and advance the interests of all
general unsecured creditors in the Debtors' Chapter 11 cases.  
The firm's services on and following the Petition Date have
materially benefited unsecured creditors of the Debtors'
estates, and have served to protect their rights until Bingham
McCutchen's formal retention.

Bingham McCutchen's services will be paid according to its
customary hourly rates:

                                U.S.-based        UK-based
                               Hourly Rates     Hourly Rates
                               
Partners and Of Counsel     US$445 - US$850     GBP400 - GBP540
Counsel and Associates      US$175 - US$535     GBP210 - GBP390
Paraprofessionals           US$100 - US$315     GBP110 - GBP130

The principal attorneys and paralegal designated to represent
the Debtors and their current hourly rates are:

   Professional            Designation         Hourly Rate

   Barry G. Russell          Partner                GBP535
   Ronald J. Silverman       Partner                  US$750
   Tom Bannister             Partner                GBP460
   Abigail Milburn           Counsel                GBP255
   Scott K. Seamon           Associate                US$470
   Stacy A. Lopez            Associate              GBP240
   Flora Ahn                 Associate                US$265

The firm will also be reimbursed for actual and necessary
expenses incurred in accordance with its retention.

Bingham McCutchen received an advance payment retainer for
GBP75,000 on June 7, 2006, in respect of its representation of
the Ad Hoc Committee.  Bingham McCutchen applied the Retainer to
anticipated fees and expenses it incurred on behalf of the Ad
Hoc Committee for the period from the Petition Date through the
date of appointment of the Creditors Committee, which amount
totaled GBP74,065.  The firm will apply the remaining amount of
GBP934 to fees and expenses of the Creditors Committee.

Ronald L. Silverman, Esq., a partner of Bingham McCutchen,
assures the Court that his firm is a "disinterested person" as
that phrase is defined in Section 101(14) of the Bankruptcy
Code.  Bingham McCutchen does not hold or represent any interest
adverse to the Debtors' estates with respect to the matters for
which it is to be retained.

                   About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides  
passenger and freight transport and marine container leasing.  
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore.  The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974.  On Oct. 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).  
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 9; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or     
215/945-7000)




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


ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
----------------------------------------------------------------
Actuant Corp. has purchased the outstanding stock of Injectaseal
Deutschland GmbH for approximately US$13 million in cash.  
Funding for the transaction came from the company's revolving
credit facility.

Injectaseal will operate within Hydratight, which is included in
Actuant's Industrial Segment.

"Injectaseal is a logical extension of Hydratight's joint
integrity platform" Mark Goldstein, Executive Vice President of
Actuant, stated.  "The addition of Injectaseal's leak management
and testing services will enable Hydratight to broaden its
product and service offering to existing customers worldwide.  
Injectaseal also provides Hydratight with service personnel and
long standing relationships with utilities and companies in
Germany and The Netherlands that can benefit from Hydratight's
other joint integrity products and services."

                     About Actuant Corp.

Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/--  
is a diversified industrial company with operations in more than
30 countries, including Brazil in Latin America.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from US$482 million to over
US$1 billion and its market capitalization from US$113 million
to over US$1.4 billion.  The company employs a workforce of more
than 6,300 worldwide.  

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Moody's Investors Service affirmed its Ba2 corporate family
rating  for Actuant Corp.


ALCATEL-LUCENT: Profit & Revenue Figures Slide in 4th Qtr. 2006
---------------------------------------------------------------
Alcatel-Lucent disclosed its preliminary financial results for
the quarter and year ended Dec. 31, 2006.  The pro-forma results
are based on unaudited financial information and on preliminary
information reviewed by the management to date.

Alcatel-Lucent expects to post EUR120 million in operating
profit against EUR4.42 billion in revenues for the fourth
quarter of 2006.  

The company's fourth quarter results include the impact from
purchase accounting entries of around -EUR230 million.  
Alcatel-Lucent expects restructuring charges -- consist
primarily of non-cash write-offs of intangibles associated with
product rationalization and of a limited impact from headcount
reduction at this point -- and asset impairment charges of
capitalized development costs to reach EUR800 million.

Alcatel-Lucent also expects to post EUR710 million in operating
profit against EUR12.3 billion in sales for the full year 2006.

The company's full year results include Alcatel's stand-alone
operations from January to November 2006, and combined
operations of Alcatel-Lucent for December 2006.  Businesses to
be contributed to Thales will be presented as discontinued
activities.

Alcatel-Lucent will publish its fourth quarter and full year
2006 results on Feb. 9.

                      Adjusted Figures

Alcatel-Lucent will also provide adjusted pro-forma financial
results on Feb. 9.  These results will include combined
operations for Alcatel-Lucent as of Jan. 1, 2006, and will
exclude any impact from purchase accounting entries.  Businesses
to be contributed to Thales will be presented as discontinued
activities.

On an adjusted pro-forma basis, Alcatel-Lucent expects to post a
breakeven operating result against EUR4.42 billion in revenues
for the fourth quarter of 2006, compared to EUR570 million in
operating profit against EUR5.42 billion in revenues for the
same period in 2007.

On an adjusted pro-forma basis, Alcatel-Lucent expects to post
EUR1.04 billion in operating profit against EUR18.3 billion in
revenues for full year 2006.

"2006 was an extraordinary year in many ways for our company,"
Patricia Russo, Chief Executive of Alcatel-Lucent, said.  "We
completed the first and largest merger to date in our industry,
we enhanced our wireless portfolio through the acquisition of
Nortel's UMTS radio business and we completed a substantial part
of the transfer of some of our operations to Thales."

Ms. Russo added that the merger created short-term uncertainty
for the company's customers.  

"This uncertainty together with the work required to close the
merger significantly impacted the business," Ms. Russo added.  
"Overall, the 2006 adjusted pro-forma financial results of the
combined company were impacted by the weak performance in the
fourth quarter resulting in cumulative revenues for full year
2006 at a similar level to full year 2005 revenues."

Ms. Russo said Alcatel-Lucent will take "additional actions to
further reduce its cost structure" to achieve combined cost
savings of around EUR600 million in full year 2007.

                       Merger Worries

Per Lindberg, an analyst at Dresdner Kleinwort, described to the
The Wall Street Journal Alcatel-Lucent's revenue shortfalls as
"astonishing."

"Such a derailment only months after completing the
controversial merger should re-instill fears that the
combination of Alcatel and Lucent is exceedingly ill-suited to
deliver," Mr. Lindberg told the Journal.

The company's revenue shortfalls are clear evidence of Alcatel-
Lucent's "massive market share losses," Dresdner Kleinwort was
quoted by The Associated Press as saying.

"The new company is suffering," Franck Hennin of Richelieu
Finance told Bloomberg News.  "It's tougher than expected.  This
raises a lot of questions about the future."

"It's too early to say whether the consolidation will pay off,"
Christophe Quarante of Natexis Bleichroeder, said.  "When you
combine the companies, the result is zero.  "The difference
between the reported figures and pro-forma is Lucent.  That
means Lucent is unprofitable."

Mr. Quarante commented that increased competition will force
Alcatel-Lucent to pass on part of its cost savings to customers.

                    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-
U.S. activities merged with their Alcatel counterparts.  The
outlook for all these ratings is stable.  

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.


COMPANHIA DE BEBIDAS: Gets Approval to Purchase Quilmes Shares
--------------------------------------------------------------
Companhia de Bebidas das Americas aka AmBev reported that the
Commission de Surveillance du Secteur Financier in Luxembourg
has approved the offer document in relation to the voluntary
offer to purchase up to 6,872,480 Class A shares and up to
8,661,207 Class B shares (including Class B shares held as
American Depositary Shares or ADSs) of its subsidiary Quilmes
Industrial, Societe Anonyme aka Quinsa, which represent the
outstanding Class A shares and Class B shares (and Class B
shares held as ADSs) that are not owned by AmBev or its
subsidiaries.
    
The offer will be made by Beverage Associates Holding Ltd. aka
BAH, a Bahamian corporation and a wholly owned subsidiary of
AmBev.
    
The purchase price will be US$3.35 per Class A share, US$33.53
per Class B share (, net to the seller in cash (less any amounts
withheld under applicable tax laws), without interest, which
corresponds to the same price per share paid by AmBev to
Beverage Associates Corp. aka BAC, on Aug. 8, 2006, in a
negotiated transaction for the acquisition of BAC's controlling
interest in Quinsa.  

Quinsa's board of directors has unanimously determined that the
offer price is fair to the firm's shareholders other than AmBev
and its subsidiaries and has decided to recommend that
shareholders tender their shares in the offer.
    
The offer will be subject to certain conditions, including,
among others, there being validly tendered and not validly
withdrawn at least 3,939,387 Class B shares (including Class B
shares held as ADSs).
    
The offer will expire at 5:00 p.m., New York City time, on Feb.
28, 2007, unless extended or reopened or earlier terminated in
accordance with applicable law.

Settlement of the offer is expected to occur after the
Expiration Date.
    
AmBev intends, as soon as practicable following the consummation
of the offer, to acquire the remaining Class A shares and Class
B shares (and Class B shares held as ADSs) pursuant to the
squeeze-out right under Article 15 of the Luxembourg takeover
law on the same terms and conditions of the offer.  Following
consummation of the offer and the exercise of the squeeze-out
right, AmBev intends to cause Quinsa to apply to delist all ADSs
from the New York Stock Exchange (including the remaining non-
tendered ADSs) and all Class A shares and Class B shares from
the Luxembourg Stock Exchange (including the remaining non-
tendered Class A shares and Class B shares), to terminate
Quinsa's ADS facility and the registration of the Class B shares
under the Securities Exchange Act of 1934.
    
AmBev has selected Credit Suisse Securities (USA) LLC to act as
Dealer Manager for the offer.  Innisfree M&A Inc. will act as
Information Agent and The Bank of New York will act as the Share
Tender Agent (Luxembourg) and ADS Tender Agent (US) in
connection with the offer.
    
The Offer Documentation will be mailed to Quinsa shareholders by
Innisfree M&A Incorporated.  Requests for the Offer
Documentation may be directed to:

          Innisfree M&A Inc.
          501 Madison Avenue, 20th floor
          New York, NY, 10022, USA
          Phone: +1 877 750 9501 (toll free in the US and
                 Canada)    
                 +00 800 7710 9970 (freephone in the EU)

Questions regarding the offer may be directed to:

          Credit Suisse Securities (USA) LLC
          Phone: +1 800 318 8219 (toll free in the US)

                  About Quilmes Industrial

Quilmes Industrial, Societe Anonyme aka Quinsa is the largest
brewer in Argentina, Bolivia, Paraguay and Uruguay, having a
share of the Chilean market as well.  It also is the Pepsi
bottler in Argentina and Uruguay.
    
                        About AmBev

Based in Sao Paulo, Brazil, AmBev -- http://www.ambev.com.br/
-- is the largest brewer in Latin America and the fifth largest
brewer in the world.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 4, 2006,
Moody's Investors Service upgraded to Ba1 from Ba2 the foreign
currency issuer rating of Companhia de Bebidas das Americas aka
AmBev to reflect the upgrade of Brazil's foreign currency
country ceiling to Ba1 from Ba2.  AmBev's global local currency
issuer rating of Baa3 and the foreign currency rating of Baa3
for its debt issues remain on review for possible upgrade.


COMPANHIA SIDERURGICA: Corus To Unveil Auction Rules
----------------------------------------------------
The British Takeover Panel is set to lay down the rules on the
auction process for the acquisition of Corus Group Plc this
week, DNA Money reports.

As previously reported, the panel said that it requires an
auction procedure to determine Corus' buyer if the "competitive
situation" between Tata Steel U.K. Ltd. and CSN Acquisitions
Ltd. remains unresolved.

On Dec. 19, 2006, the panel had given the bidders until Jan. 30
to come up with revised offers for Corus.

According to The Journal, the takeover watchdog is in
discussions with the parties involved.

Merchant banking sources close to Corus revealed that both
bidders are apprehensive about the auction process, adding the
procedure could further delay the outcome.

Analysts expect Tata Steel to offer up to 550 pence a share to
acquire Corus, The Business Standard says.

CSN is also believed to return with a higher offer as it has
increased the size of its loan facilities in recent weeks, Times
Online relates.

                          CSN Bid

As reported in the TCR-Europe on Dec. 13, 2006, CSN increased
its purchase offer for Corus to US$9.6 billion or 515 pence a
share, topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                         Tata Offer

As reported in the TCR-Europe on Dec. 11, 2006, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.
                      About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                     About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

             About Companhia Siderurgica Nacional

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: Can Pay US$1.1 Million Prepetition Tax Claims
------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to pay, in their sole discretion, the
undisputed prepetition claims of certain governmental units in
respect of real and personal property taxes in an aggregate
amount not to exceed US$1,100,000.

As reported in the Troubled Company Reporter on Dec. 29, 2006,
the Debtors own real and personal property in at least 12 U.S.
states and Canadian provinces.  Under applicable law, state,
provincial, and local governments in the jurisdictions where the
properties are located are granted the authority to levy taxes
against the real and personal property.

The Debtors typically pay taxes on their Owned Properties in the
ordinary course as the taxes are invoiced, which typically
covers taxes for the prior year, or quarter, depending on how
the applicable tax is assessed.  Thus, as of their bankruptcy
filing, the Debtors owed taxes that accrued with respect to the
Owned Properties for some portions of the 2006 calendar year.

While the Bankruptcy Code does not require the Debtors to pay
the Property Taxes at this time, nonpayment or late payment of
certain prepetition Property Taxes will, among others:

   (i) likely subject the Debtors to above-market interest rates
       and penalties in certain circumstances;

  (ii) cause Taxing Authorities' county or municipal to suffer a
       significant gross revenue cutback, in turn leading to
       reduced funding of public schools, fire and police
       departments, and other municipal services from which the
       Debtors and their employees enjoy the benefits;

(iii) unnecessarily divert the Debtors' attention away from the
       operations of their businesses and the reorganization
       process in the event the Taxing Authorities would cause
       the Debtors to be audited; and

  (iv) result in the creation of statutory liens on the Owned
       Properties, which creation and perfection does not
       violate the automatic stay under Section 362 of the
       Bankruptcy Code.

             About DURA Automotive Systems Inc.

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. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Judge Carey Approves Lease Rejection Procedures
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware approved Dura Automotive Systems Inc.
and its debtor-affiliates' procedure for rejecting executory
contracts and unexpired leases of personal and non-residential
real property:

    a. The Debtors will file a notice to reject any executory
       contract, lease or sublease, or interest in the lease or
       sublease, pursuant to Section 365 and will serve the
       Notice, as well as the deadlines and procedures for
       filing objections to the Notice, via overnight delivery
       service upon:

         (i) the United States Trustee;

        (ii) counsel to the agent to the Debtors' prepetition
             secured lenders;

       (iii) counsel to the agent to the Debtors' postpetition
             secured lenders;

        (iv) counsel to the Official Committee of Unsecured
             Creditors;

         (v) the contract counter-party or landlord(s) affected
             by the Notice, and

        (vi) any other parties-in-interest to the executory
             contract or lease, including subtenants, if any,
             sought to be rejected by the Debtors.

       If the Notice is issued by the Debtors prior to the
       effective date of a plan of reorganization, the affected
       executory contract, lease, sublease or interest in the
       lease or sublease will be deemed to be subject to a
       motion to reject for all purposes.

    b. The Notice will set forth this information, to the best
       of the Debtors' knowledge, as applicable:

         (i) the street address of the real property underlying
             the lease or sublease, the interest in the personal
             property lease or sublease or the type of executory
             contract which the Debtors seek to reject;

        (ii) the Debtors' monthly payment obligation, if any,
             under the contract, lease or sublease or interest
             in lease or sublease;

       (iii) the remaining term of the contract, lease or
             sublease or interest in the lease or sublease;

        (iv) the name and address of the contract counterparty,
             landlord or subtenant;

         (v) a general description of the terms of the executory
             contract or lease; and

        (vi) a disclosure describing the procedures for fling
             objections, if any.

    c. Should a party-in-interest object to the proposed
       rejection by the Debtors of an executory contract, lease
       or sublease, or interest in the lease or sublease, the
       party must file and serve a written objection so that the
       objection is filed with the Court and is actually
       received by these parties no later than 10 days after the
       date the Debtors serve the Notice:

         (i) counsel to the Debtors: Kirkland & Ellis LLP, 200
             East Randolph Drive, Chicago, Illinois 60601, Attn:
             Ryan Blaine Bennett, Esq., and Richards, Layton &
             Finger, One Rodney Square, 920 N, King Street,
             Wilmington, Delaware 19801, Attention: Daniel J.
             DeFranceschi, Esq.;

        (ii) counsel to the Creditors Committee; and

       (iii) the Office of the United State Trustee.

    d. Absent an objection, the rejection of the executory
       contract, lease or sublease, or interest in the lease or
       sublease, will become effective 10 days from the date the
       Notice was served on the Service Parties without further
       notice, hearing or order of the Court; provided, however,
       that with respect to leases or subleases for non-
       residential real property, the rejection will become
       effective on the later of:

         (x) the Rejection Date or

         (y) the date the Debtors unequivocally relinquished
             control of the premises to the affected landlord by
             turning over keys or "key codes" to the affected
             landlord.

    e. If a timely objection is filed that cannot be resolved,
       the Court will schedule a hearing to consider the
       objection only with respect to the rejection of any
       executory contract, lease or sublease, or interest in the
       lease or sublease, as to which an objection is properly
       filed and served.  If the Court upholds the objection and
       determines the effective date of rejection of the
       executory contract, lease or sublease, or interest in the
       lease or sublease, that date will be the rejection date.  
       If the objection is overruled or withdrawn or the Court
       does not determine the date of rejection, the rejection
       date of the lease, sublease or interest will be deemed to
       have occurred on the Rejection Date or NRP Lease
       Rejection Date, as applicable.

    f. If the Debtors have deposited funds with a lessor or
       contract counterparty as a security deposit or other
       arrangement, the lessor or contract counterparty may not
       set-off for otherwise use the deposit without the prior
       authority of the Court.

    g. With respect to any personal property of the Debtors
       located at any of the premises subject to any Notice, the
       Debtors will remove the property prior to the expiration
       of the period within which a party must file and serve a
       written objection.  If they determine that the value of
       the property at a particular location has a de minimis
       value or cost of removing the property exceeds the
       value of the property, the Debtors will generally
       describe the property in the Notice and, absent a timely
       objection, the property will be deemed abandoned pursuant
       to Section 554, as is, where is, effective as of the date
       of the rejection of the underlying unexpired lease.

Counterparties to executory contracts, leases or subleases, or
interests in the leases and subleases that are rejected pursuant
to the Rejection Procedures are required to file a proof of
claim relating to the rejection of the executory contract, lease
or sublease, or interest in the lease or sublease, if any, by
the later of:

   (a) the claims bar date established in the Chapter 11 cases,
       if any; and

   (b) 30 days after the Rejection Date.

The Debtors believed that the Rejection Procedures provide a
fair and efficient manner for rejecting contracts, leases,
subleases, and interests in leases and subleases.

            About DURA Automotive Systems Inc.

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. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


METSO OYJ: Unit Inks EUR35MM Handling Equipment Deal with Alcoa
---------------------------------------------------------------
Metso Minerals, a unit of Metso Oyj, will supply bulk materials
handling equipment to Alcoa for its Juruti Mine in Para state,
northern Brazil.

The delivery will be completed by the end of 2007.  The value of
the order is around EUR35 million.  The order was included in
the fourth quarter order backlog in 2006.

The order comprises one ship loader, three stackers, one
reclaimer, two apron feeders, five vibrating screens, one
railcar dumper and conveying systems.  The order also includes
technical erection assistance and a technical supervision of
operations for two years after the start up of the plant.

Metso's solution is for a new bauxite processing plant.  The
Juruti Mine will supply bauxite to the Alumar Refinery.  Once
completed, the processing plant will bring a major competitive
advantage to Alcoa.

                         About Metso

Headquartered in Helsinki, Finland, Metso Oyj --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of around EUR4.2 billion.  Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                        *    *    *

As reported on April 11, 2006, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


METSO OYJ: Nomination Panel Wants Current Board Members to Stay
---------------------------------------------------------------
The Nomination Committee of Metso Oyj will propose on the next
Annual General Meeting on April 3 that the number of board
members remains at seven.

The Nomination Committee proposes that from the current Board
members:

   -- Svante Adde,
   -- Maija-Liisa Friman,
   -- Christer Gardell,
   -- Matti Kavetvuo,
   -- Yrjo Neuvo and
   -- Jaakko Rauramo

be re-elected.

Mr. Kavetvuo is proposed to continue as Chairman of the Board
and Mr. Rauramo as Vice Chairman.  It is also proposed that
Ms. Liljeblom, Professor at Swedish School of Economics and
Business Administration, Helsinki, Finland, shall be elected as
a new member of the Metso Board.

The new proposed Board member, Ms. Liljeblom, PhD. Econ., is the
Professor in Finance and Head of the Departement of Finance and
Statistics at Swedish School of Economics and Business
Administration, Helsinki, Finland.  She holds currently Board
membership positions at Stockman PLC, a Finnish based department
store and retailer, at Fennia Mutual Insurance Company, Finland,
at Municipality Finance PLC, Finland and is the Chairman of the
Investment Consultative Committee of the State Pension Fund,
Finland, the member of the Investment Strategy Council of the
Government Pension Fund - Global, Norway, and Official
Controller of the OMXH25 index (Indeksiasiamies) for the
Helsinki stock market.

The Nomination Committee proposes these annual fees to be paid:

   -- Chairman of the Board: EUR80,000,
   -- Vice Chairman of the Board: EUR50,000
   -- Chairman of the Audit Committee EUR50,000, and
   -- other Board Members: EUR40,000.

In addition, a fee of EUR500 per meeting is paid to all members
for the Board and Board committee meetings they attend.

Metso's Board of Directors will include these proposals into the
Annual General Meeting notice, which will be published later.

                  Personnel Participation

The Nomination Committee notes that a personnel representative
will participate as an external expert in the Metso Board
meetings also in the next Board term within the limitations
imposed by the Finnish law.  The new Board will invite the
personnel representative as its external expert in April 2007.

                 The Nomination Committee

The members of the Nomination Committee were:

   -- Markku Tapio (Chairman of the Nomination Committee),
      Director General, State Shareholdings unit (State of
      Finland);

   -- Harri Sailas, CEO (Ilmarinen Mutual Pension Insurance
      Company);

   -- Mikko Koivusalo, Director, Investments (Varma Mutual
      Pension Insurance Company) and

   -- Henry Wiklund, Managing Director (Svenska
      litteratursallskapet i Finland r.f.).

Matti Kavetvuo, Chairman of Metso's Board of Directors, served
as the Committee's expert member.

                         About Metso

Headquartered in Helsinki, Finland, Metso Oyj --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion.  Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                        *    *    *

As reported on April 11, 2006, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


SANMINA-SCI: Posts US$2.78 Billion First Quarter 2007 Revenue
-------------------------------------------------------------
Sanmina-SCI Corp.'s revenue increased to US$2.78 billion in the
first fiscal quarter of 2007 ended Dec. 30, 2006, compared with
US$2.72 billion in the fourth quarter of fiscal 2006 ended
Sept. 30, 2006.

Net income for the first fiscal quarter of 2007 increased to
US$34.7 million, compared with the fourth quarter net loss of
US$2.1 million.  Diluted earnings per share for the quarter was
US$0.07, compared with USUS$(0.00) in the prior quarter.

Operating income was US$70.6 million or 2.5% of revenue,
compared with US$32.1 million, or 1.2% of revenue in the prior
quarter and US$76.1 million, or 2.7% of revenue in the same
period a year ago.  Gross profit increased 29.8% to US$169.9
million, from the fourth quarter of fiscal 2006.  Gross margin
rose 6.1% in the first quarter of 2007, from the prior quarter
of 4.8% and from 6.0% in the first quarter of fiscal 2006.

For the first quarter of fiscal 2007, Sanmina-SCI reported net
income of US$28.2 million, against a net loss of US$28.1 million
for the fourth quarter fiscal 2006 and net income of US$17.4
million for the same period a year ago.

Diluted earnings per share for the quarter were US$0.05.

At Dec. 30, 2006, Sanmina-SCI reported US$538.8 million in cash
and cash equivalents.  At quarter-end, the company also reported
a current ratio of 1.7, working capital of US$1.63 billion, and
stockholders' equity of US$2.3 billion.
    
"I am pleased with our first quarter results.  Demand in the
first quarter was not as strong as we have seen historically,
but we experienced nice growth from a number of our core markets
and a majority of our key customers.  Due to our continued focus
on the basic fundamentals of our business, improved product mix
and increased operating efficiencies, our gross margins improved
to 6.1%.  I am confident that our business is moving in the
right direction and that we will continue to see the benefits of
our strategic initiatives and hard work," said Sanmina-SCI's
chairperson and chief executive officer Jure Sola.

Sanmina-SCI Corp., headquartered in San Jose, California, is one
of the largest electronics contract manufacturing services
companies providing a full spectrum of integrated, value added
solutions.  In Europe, the company has operations in Finland,
France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin
America, it operates in Brazil and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2007, Fitch Ratings removed Sanmina-SCI Corp. from
Rating Watch Negative and affirmed these ratings:

   -- Issuer Default Rating at 'B+';
   -- Senior secured credit facility at 'BB+/RR1'.
   -- Senior unsecured term loan at 'BB+/RR1'; and
   -- Senior subordinated debt at 'B/RR5'.

The Rating Outlook is Negative.  Fitch's action affects
approximately US$1.7 billion of total debt.


SMITHFIELD FOODS: Eliminating Gestation Crates for Pregnant Sows
----------------------------------------------------------------
Smithfield Foods Inc.'s decision to phase out gestation crates
for pregnant sows over the next ten years is encouraging news,
said John Carlin, former Kansas governor, U.S Archivist and
chairperson of the National Commission on Industrial Farm Animal
Production or NCIFAP.

NCIFAP is a two-year study on solutions to public health and
environmental problems caused by concentrated animal feeding
operations.
    
"As the nation's largest pork producer, Smithfield is making a
bold move, which could lead to similar improvements by competing
integrators.  This is encouraging news and shows the industry is
open to new methods to produce food in a safer, more
sustainable, way," Mr. Carlin stated.
    
Consumer demands that producers pay more attention to the health
and well being of the food animals that they purchase led to
Smithfield Foods' decision.  Many animal welfare experts agree
that the crates, which are often times so small the pig can not
walk or even turn around for 16-weeks at a time, are inhumane.
    
Mr. Carlin commented, "We know that pigs show more signs of
stress when they are confined in a crate.  There are plenty of
studies that determine high stress levels cannot only affect
swine health, but may also change the quality of the meat.  
While Smithfield's decision to replace crates with group pens
will be costly, it will most likely improve the quality of its
product, improve the animal's health and well being, and
eventually help the company remain profitable."

The effects of concentrated animal feeding operations on the
environment, public health, and animal health and well-being
were the driving forces behind the creation of the NCIFAP.  The
18-member commission at the Johns Hopkins Bloomberg School of
Public Health has launched several studies in these areas and
will issue a final report to the nation in March 2008.  Other
issues to be examined include, but are not limited to, emerging
diseases like avian influenza and Bovine Spongiform
Encephalopathy, food-borne illnesses, air and water pollution
concerns, and antibiotic resistance.
    
The NCIFAP is now in its second year of a two-year study. After
hearing from experts and industry representatives the first
year, this year Commissioners will also hear from the general
public.  Its first public hearing will take place next month in
Fayetteville, Arkansas.
    
The NCIFAP is already communicating with animal industry leaders
as it searches to help improve production systems.  When it
releases its final report, the NCIFAP will offer recommendations
on possible alternative production models that are available to
Smithfield and others.
    
Smithfield Foods, Inc., headquartered in Smithfield, Virginia,
is the largest vertically integrated producer and marketer of
fresh pork and processed meat in the US and has operating
subsidiaries and joint ventures in France, Poland, Romania, the
UK, Brazil, Mexico, and China.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 2, 2007, Moody's Investors Service downgraded the ratings
of Smithfield Foods' senior unsecured debt to Ba3 from Ba2, its
senior subordinated notes to B1 from Ba2, and its corporate
family rating to Ba2 from Ba1.

Moody's also affirmed Smithfield's SGL-3 speculative grade
liquidity rating.

Moody's said the outlook on all ratings is negative.


UGS CORP: Siemens A&D to Acquire Firm for US$3.5 Billion
--------------------------------------------------------
With its acquisition of U.S. software producer UGS Corp., the
Siemens Automation and Drives or A&D Group will expand its
product spectrum in automation technology to include industrial
software for planning, design and simulation in Product
Lifecycle Management.  As a trendsetter in industrial
automation, A&D will now be able to offer its customers
worldwide solutions for creating digital factories.  The
purchase price for the deal is around US$3.5 billion including
debt.  The transaction is subject to approval by the relevant
authorities.

In addition, Siemens AG plans an IPO of its automotive supply
business Siemens VDO Automotive or SV, in which Siemens would
hold a majority stake. This move would give SV the necessary
financial resources and greater entrepreneurial flexibility for
ensuring further sustainable and profitable growth.

UGS generated just under US$1.2 billion in sales and an EBITDA
of US$241 million in fiscal 2005.  The company is one of the
world's market leaders for Product Lifecycle Management, a
critical part of industrial manufacturing that allows the
digital control of product development and manufacture.  The
market for PLM software and services has an annual volume of
around US$13 billion and growth rates between 7% and 9%.  
Combining the PLM solutions of UGS with Siemens' automation
technology will enable Siemens to provide integrated offerings
covering the entire product life cycle for the first time.  
Siemens is thus the first company in the world able to offer its
customers fully integrated solutions for creating digital
factories that will give the customers decisive competitive
advantages through reduced costs and improved quality assurance.

"With the acquisition of UGS, we can combine its competence in
the sector of digital factories with our leading know-how in
industrial automation.  This combination makes our customers'
processes faster, better and more cost efficient.  With this
unique combination, we will underscore our position as a
trendsetter in automation systems and propel this business into
a new dimension," said Klaus Kleinfeld, President and CEO of
Siemens AG.  A&D and UGS, two world-class companies which have
successfully worked together in the past, will join forces and
generate substantial growth synergies.

Headquartered in Plano, Texas, UGS Corp. - http://www.ugs.com--   
is a provider of product lifecycle management software.  The
company has offices in Brazil.

                        *    *    *

On Jan. 25, 2007, Standard & Poor's Ratings Services placed its
'B+' corporate credit rating and 'B-' subordinated debt rating
for UGS Corp. on CreditWatch with positive implications.  


UGS CORP.: Moody's May Withdraw Ba2 Secured Bank Debt Rating
------------------------------------------------------------
UGS Corporation announced on Jan. 24, 2007, that an agreement
has been reached between its private equity owners and Siemens
AG to sell the company to Siemens for approximately US$3.5
billion plus assumption of outstanding UGS Corp. debt.  Moody's
will withdraw the Ba2 secured bank debt and B3 subordinated bond
ratings of UGS if they are taken out.  However, should the bonds
be left in place Moody's anticipates that there would be
positive ratings pressure due to the credit strength of Siemens.

Headquartered in Plano, Texas, UGS Corp. - http://www.ugs.com--   
is a provider of product lifecycle management software.  The
company has offices in Brazil.


UGS CORP.: S&P Places B+ Corporate Credit Rating on CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating and 'B-' subordinated debt rating for UGS Corp. on
CreditWatch with positive implications.  The CreditWatch
placement follows the announcement that Siemens AG would acquire
UGS from its current owners, Bain Capital, Silver Lake Partners,
and Warburg Pincus, for US$3.5 billion, including the assumption
of UGS's existing debt.  The acquisition remains subject to
governmental approval.
     
"Concurrent with the transaction's closing, the corporate credit
rating on UGS Corp. will be withdrawn, and the rating on its
US$850 million of subordinated debt will be raised to Siemens'
subordinated debt level," noted Standard & Poor's credit analyst
Stephanie Crane Mergenthaler. The ratings on UGS's secured debt
were not placed on CreditWatch, as the term loan and any amounts
outstanding under the revolving credit agreement are expected to
be repaid.
     
Headquartered in Plano, Texas, UGS Corp. - http://www.ugs.com
-- is a provider of product lifecycle management software.  The
company has offices in Brazil.


VARIG: Losses 119 Flight Frequencies for Non-Use
------------------------------------------------
Brazil's National Civil Aviation Authority, Anac, permanently
stripped former flagship airline Varig of 119 flight frequencies
for non use, it said in a press release Thursday.

Since Anac gave the new owners of Varig a full certificate to
operate on Dec. 14, 2006, the company has only been operating
151 of its 270 frequencies.  Frequencies represent regular
flights on routes. According to aviation rules, a company loses
the right to operate a domestic route if it hasn't been flown
for 30 days, the statement said.

The news is a blow to the plans of Varig's new owners, who hope
to quadruple the airline's share of the domestic market to 20%
by the end of 2007.

Varig was Brazil's leading airline for many years, but its
operations disintegrated in 2005 and early 2006 amid enormous
debts.  In July 2006, VarigLog, which is owned by a group of
investors, including U.S. investment fund Matlin Patterson,
bought the company's operating assets for US$24 million and
sharply cut back the number of staff and flights offered.

The company had planned to increase the number of planes in
operation to 15 from 10 in January 2007.

Varig had not been flying the frequencies for some time but a
court order had stopped Anac from redistributing the routes
before December.

The authority will now redistribute the routes to other
operators.

                        About Varig

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

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.

The Debtors may be the first case under the new law, which took
effect on June 9, 2005.  Similar to a chapter 11 debtor-in-
possession under the U.S. Bankruptcy Code, the Debtors remain in
possession and control of their estate pending the Judicial
Reorganization.  Sergio Bermudes, Esq., at Escritorio de
Advocacia Sergio Bermudes, represents the carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.




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


CAN FINANCIAL: Last Day for Proofs of Claim Filing Is on Jan. 30
----------------------------------------------------------------
Can Financial Corp. Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


CENTENNIAL FUNDING: Proofs of Claim Filing Deadline Is Jan. 30
--------------------------------------------------------------
Centennial Funding Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


CMB FINANCE: Last Day to File Proofs of Claim Is on Jan. 30
-----------------------------------------------------------
CMB Finance Ltd.'s creditors are required to submit proofs of
claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


COLNE LEASING: Creditors Must File Proofs of Claim by Jan. 30
-------------------------------------------------------------
Colne Leasing Ltd.'s creditors are required to submit proofs of
claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


COPPER BEECH: Creditors Have Until Jan. 30 to File Claims
---------------------------------------------------------
Copper Beech Financial Corp. Ltd.'s creditors are required to
submit proofs of claim by Jan. 30, 2007, to the company's
liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


DELAWARE CBO: Creditors Must Submit Proofs of Claim by Jan. 30
--------------------------------------------------------------
Delaware CBO 1999-1 Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


DOVE FINANCIAL: Proofs of Claim Filing Deadline Is on Jan. 30
-------------------------------------------------------------
Dove Financial Corp. Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


EFG ORA: Creditors Have Until Jan. 30 to File Proofs of Claim
-------------------------------------------------------------
EFG ORA Funding Ltd.'s creditors are required to submit proofs
of claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


EXPLORATION SECURITIES: Proofs of Claim Filing Is Until Jan. 30
---------------------------------------------------------------
Exploration Securities Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


HANOVER SQUARE: Deadline for Proofs of Claim Filing Is Jan. 30
--------------------------------------------------------------
Hanover Square CLO Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


HIROSEN FUNDING: Proofs of Claim Filing Deadline Is on Jan. 30
--------------------------------------------------------------
Hirosen Funding Ltd.'s creditors are required to submit proofs
of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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



ISHINOMAKI FUNDING: Claims Filing Deadline Is on Jan. 30
--------------------------------------------------------
Ishinomaki Funding Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


JACCS ASSET: Creditors Must Submit Proofs of Claim by Jan. 30
-------------------------------------------------------------
Jaccs Asset Funding Corp.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


JETS XI: Last Day for Proofs of Claim Filing Is on Jan. 30
----------------------------------------------------------
Jets XI Ltd.'s creditors are required to submit proofs of claim
by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


JFCC LTD: Deadline for Filing of Proofs of Claim Is on Jan. 30
--------------------------------------------------------------
JFCC Ltd.'s creditors are required to submit proofs of claim by
Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


LAKE FUNDING: Creditors Have Until Jan. 30 to Submit Claims
-----------------------------------------------------------
Lake Funding Ltd.'s creditors are required to submit proofs of
claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


LANGDALE: Last Day to File Proofs of Claim Is on Jan. 30
--------------------------------------------------------
Langdale's creditors are required to submit proofs of claim by
Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


MPV FUNDING: Proofs of Claim Filing Deadline Is on Jan. 30
----------------------------------------------------------
Centennial Funding Ltd.'s creditors are required to submit
proofs of claim by Jan. 30, 2007, to the company's liquidator:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


NOMURA 1997-2: Deadline for Proofs of Claim Filing Is on Jan. 30
----------------------------------------------------------------
Nomura 1997-2 Principal Protected Notes Ltd.'s creditors are
required to submit proofs of claim by Jan. 30, 2007, to the
company's liquidator:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Nomura 1997-2's shareholders agreed on Dec. 14, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


NORMANDIE CORP: Last Day for Proofs of Claim Filing Is Jan. 30
--------------------------------------------------------------
Normandie Corp. Ltd.'s creditors are required to submit proofs
of claim by Jan. 30, 2007, to the company's liquidator:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


NORSE CBO: Creditors Must File Proofs of Claim by Jan. 30
---------------------------------------------------------
Norse CBO Ltd.'s creditors are required to submit proofs of
claim by Jan. 30, 2007, to the company's liquidator:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


OSCAR FUNDING: Proofs of Claim Must be Filed by Jan. 30
-------------------------------------------------------
Oscar Funding Corp. X's creditors are required to submit proofs
of claim by Jan. 30, 2007, to the company's liquidator:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


STONE TOWER: Deadline for Proofs of Claim Filing Is on Jan. 30
--------------------------------------------------------------
Stone Tower CLO Ltd.'s creditors are required to submit proofs
of claim by Jan. 30, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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




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


BELL MICROPRODUCTS: Preliminary Results Show Increase in Revenue
----------------------------------------------------------------
Bell Microproducts Inc. disclosed preliminary fourth quarter
2006 revenue range of US$1.0 billion to US$1.015 billion, an
increase of approximately 20% over the US$842 million reported
in the fourth quarter of 2005, and 28% as compared to third
quarter of 2006.

These preliminary results exceeded management's previous fourth
quarter 2006 guidance of US$920 million to US$970 million.

Sales for the full year 2006 are expected to be in excess of
US$3.4 billion, up approximately 8% over 2005.

"We are pleased with our strong revenue growth this quarter. Our
European operations performed strongly this quarter with
revenues for the combined European group increasing
approximately 21% compared with the fourth quarter of 2005," W.
Donald Bell, President and Chief Executive Officer of Bell
Microproducts said.  "In the Americas we had substantial revenue
growth in our higher margin Industrial sales channel, Canada,
and our Latin America group, as well as in our Total Tec and
Rorke enterprise units.  This was partially offset by revenue
decreases in our US Commercial sales channel as we continue to
focus on more profitable products and customers.  Our recent
strategic acquisition of ProSys Information Systems generated
revenue consistent with expectations for the quarter.  
Furthermore, based on preliminary information, gross margins
from operations were generally in line with expectations.  As we
enter 2007, we believe we are strategically positioned for
continued growth going forward."

The Solutions category of product and services sales were 52% of
sales in the fourth quarter, as compared to 52% in fourth
quarter 2005, and 50% for the full year due to strong sales in
this category.  Solution sales grew by 21% as compared to fourth
quarter 2005.

The Components and Peripherals product segment also experienced
strong growth in fourth quarter and the year.  Components and
Peripherals were 48% of sales in fourth quarter 2006, as
compared to 48% in fourth quarter 2005 and 50% for the full
year.  Components and Peripheral sales grew, by 20% in fourth
quarter as compared to fourth quarter 2005.  Disk drive revenue
was also strong during the quarter, increasing 35% from fourth
quarter of last year, and representing 31% of sales in the
quarter.  Disk drive sales increased 20% for the 2006 full year
as compared to 2005 and were 30% of sales for the full year.

                     Restatement Update

The company is unable at this time to provide additional
quantitative information regarding its quarterly results or any
further comparison of such results to fourth quarter 2005 until
the restatement of its financial statements for certain prior
periods and the review of its historical stock option grants has
been completed.

A special committee of the board of directors has been appointed
to conduct an evaluation of the company's stock option practices
with the assistance of independent counsel and independent
accounting consultants.  The company expects that accounting
adjustments may be necessary but is unable to quantify the
magnitude of any such charges until the independent review is
completed.

                 About Bell Microproducts

Headquartered in San Jose, California, Bell Microproducts Inc.
(Nasdaq: BELM) -- http://www.bellmicro.com/-- is an   
international, value-added distributor of high-tech products,
solutions and services, including storage systems, servers,
software, computer components and peripherals, as well as
maintenance and professional services.  Bell is a Fortune 1000
company that has operations in Argentina, Brazil, Chile and
Mexico.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 3, 2007,
Holders of US$109,475,000 aggregate principal amount of the
outstanding 3-3/4% Convertible Subordinated Notes have consented
to a waiver of defaults arising from the failure to file all
reports and other information and documents which it is required
to file with the SEC and the trustee.

Further, these holders have agreed to amend the indenture to
eliminate any provision that would trigger a default for the
failure to file or deliver any reports required to be filed with
the SEC or the trustee, and to add a provision for a special
interest payment to holders of Notes if an eligible tender offer
for the outstanding Notes is not completed prior to
Feb. 1, 2007.


REVLON INC: Completes US$100-Million Rights Offering
----------------------------------------------------
Revlon, Inc., completed its significantly over-subscribed US$100
million rights offering and the related private placement it
launched on Dec. 18, 2006, with public shareholders seeking to
subscribe for approximately 72 million shares, which was
approximately 34 million shares in excess of the 37,847,472
shares sold to the public in the rights offering at US$1.05 per
share.

MacAndrews & Forbes Holdings Inc., Revlon's majority
stockholder, which is wholly owned by Ronald O. Perelman, has
purchased in a private placement directly from Revlon a total of
57,390,623 shares of Revlon's Class A common stock, pursuant to
a previously-disclosed Stock Purchase Agreement between Revlon
and MacAndrews & Forbes, at the same price of US$1.05 per share,
representing the number of shares that MacAndrews & Forbes would
otherwise have been entitled to subscribe for in the rights
offering pursuant to its basic subscription privilege (which was
approximately 60% of the total shares sold in the rights
offering and private placement combined).

The shares sold to MacAndrews & Forbes were sold in reliance on
Rule 506 under the Securities Act of 1933, as amended.  The
issuance of shares to MacAndrews & Forbes was not registered
under the Securities Act of 1933, as amended, and, accordingly,
the shares may not be offered or sold in the U.S. absent
registration or an applicable exemption from registration
requirements.

As a result of these transactions, Revlon will have issued a
total of 95,238,095 new shares of its Class A common stock,
increasing the number of outstanding shares of Revlon's Class A
common stock to 476,688,940 shares and increasing the total
number of shares of common stock outstanding, including the
company's existing 31,250,000 shares of Class B common stock, to
507,938,940 shares.  With the completion of these transactions,
MacAndrews & Forbes beneficially owns approximately 58% of
Revlon's Class A common stock and approximately 60% of Revlon's
total common stock outstanding, which shares represent
approximately 74% of the combined voting power of such shares.

Revlon also announced that Revlon Consumer Products Corporation,
Revlon's wholly owned operating subsidiary, will use
approximately US$50 million of the proceeds of the rights
offering and related private placement to redeem approximately
US$50 million aggregate principal amount of its 8-5/8% Senior
Subordinated Notes due 2008, at a redemption price of 100% of
the principal amount of such Notes, plus accrued and unpaid
interest up to, but not including, the redemption date.  On
Jan. 23, 2007, a copy of the irrevocable notice of redemption
was mailed to the record holders of the Notes being redeemed by
the trustee under the indenture governing the Notes at:

         U.S. Bank Trust National Association
         60 Livingston Avenue
         St. Paul, Minnesota 55107.

The Notes will be redeemed on Feb. 22, 2007.

In addition, Revlon announced that on or about Jan. 25, 2007,
Revlon Consumer used the remainder of such proceeds to repay
approximately US$43 million of indebtedness outstanding under
Revlon Consumer's US$160 million revolving credit facility
(which represented all of the indebtedness outstanding under
this facility at that time), without any permanent reduction in
that commitment, after paying fees and expenses incurred in
connection with the rights offering and related private
placement, with the remaining approximately US$5 million
available for general corporate purposes.

Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company.  The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands.  The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R).  The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela.

At March 31, 2006, the company's balance sheet showed
US$1,085,400,000 in total assets and US$2,127,500,000 in total
liabilities, resulting in a stockholders' deficiency of
US$1,042,100,000.




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


AFFILIATED COMPUTER: Earns US$61.4 Mln in Quarter Ended Sept. 30
----------------------------------------------------------------
Affiliated Computer Services Inc. reported US$61.4 million of
net income on US$1.4 billion of revenues for the first quarter
ended Sept. 30, 2006, compared with US$93.4 million of net
income on US$1.3 billion of revenues for the same period in
2005.

Internal revenue growth for the first quarter of fiscal year
2007 was 4% and the remainder of the revenue growth was related
to acquisitions.  Excluding revenues related to divested
operations, revenues increased US$127.6 million, or 10% from the
first quarter of fiscal year 2006.

The Commercial segment, which represents 61% of consolidated
revenue for the first quarter of fiscal year 2007, increased
US$75.7 million, or 10%, to US$841.7 million in the first
quarter of fiscal year 2007.  Internal revenue growth was 6%.

Revenue in the Government segment, which represents 39% of
consolidated revenue for the first quarter of fiscal year 2007,
decreased US$1.2 million, to US$543.7 million in the first
quarter of fiscal year 2007 compared to the same period last
year.  Revenue growth from acquisitions was 9% primarily due to
the Transport Revenue acquisition completed in the second
quarter of fiscal year 2006.  Excluding revenues related to
divested operations, revenues increased US$51.9 million, or 10%
from the first quarter of fiscal year 2006.  Internal revenue
growth was 1%.

Operating income decreased US$13.3 million, or 8.7% in the first
quarter of fiscal year 2007 compared to the prior year.  
Interest expense increased US$33.3 million, to US$46 million
primarily due to interest expense on cash borrowed to finance
the company's share repurchase programs.  Interest expense also
includes US$2.6 million in charges related to a waiver fee on
the company's Credit Facility in the first quarter of fiscal
year 2007.

At Sept. 30, 2006, the company's balance sheet showed US$5.6
billion in total assets, US$3.8 billion in total liabilities,
and US$1.8 billion in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2006, are available
for free at http://researcharchives.com/t/s?18fb

                  Restructuring Activities

During the first quarter of fiscal year 2007, the company
executed certain restructuring activities to further support its
competitive position.  As of Sept. 30, 2006, approximately 2,000
employees have been involuntarily terminated.

                        Cash Flows

Cash flow from operations was approximately US$173 million, or
12% of revenues.  Capital expenditures and additions to
intangible assets were approximately US$110 million, or 8% of
revenues.

                       Acquisitions

During the first quarter of fiscal year 2007, the company
acquired Primax Recoveries Inc. for US$40 million, plus
contingent payments of up to US$10 million based on future
performance.  Primax is one of the oldest and largest health
care recovery firms.

Subsequent to Sept. 30, 2006, the company acquired Systech
Integrators Inc. for US$65 million, plus contingent payments of
up to US$40 million based upon future performance.  Systech is
an information technology solutions company offering an array of
SAP software services.

                 About Affiliated Computer  

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 has
global operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter on Nov. 29, 2006,
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.




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


PETROECUADOR: Exchange Committee to Meet with PDVSA
---------------------------------------------------
Ecuador's state-run oil firm Petroecuador said in a statement
that the new committee overseeing the swapping of Ecuadorian
crude for Venezuelan derivatives will meet with Petroleos de
Venezuela aka PDVSA in Caracas to establish the first exchange.

Petroecuador said in a statement that it estimates a first
220-million-barrel shipment of diesel will arrive at Ecuador's
Balao port in Esmeraldas at the end of February.

Business News Americas relates that Petroecuador's executive
president Carlos Pareja Yannuzzelli established the exchange
committee to study the prospective sale and purchase accords to
be signed with PDVSA.

BNamericas notes that the committee will receive all information
regarding operations of the exchanges and keep Pareja informed
of procedural issues.

The committee will meet with PDVSA monthly, BNamericas states.

                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                     About Petroecuador

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


PETROECUADOR: Launching Insurance Policy Tender for Assets
----------------------------------------------------------
Ecuadorian state oil firm Petroecuador said in a statement that
it will launch a tender in the next few weeks for the provision
of insurance policies for its assets and installations.

Business News Americas relates that the first tender launched in
December 2006 was declared void by Petroecuador to give insurers
more time to present offers.

Petroecuador's current insurance policy is held with Ecuadorian
consortium Colonial-Panamericana.  It expires in April,
BNamericas states.

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




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


SBARRO INC: S&P Affirms B- Corporate Credit Rating
--------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Melville, NY-based Sbarro Inc. to negative from stable.  At
the same time, Standard & Poor's affirmed the company's 'B-'
corporate credit rating and other ratings.
     
"The outlook revision is based on Sbarro Inc.'s increased
leverage due to the US$33 million add-on to the term loan, and
management's more aggressive financial policy," said Standard &
Poor's credit analyst Diane Shand.  The proceeds from the add-on
will be used in connection to the acquisition of the company by
MidOcean Partners.
     
The ratings on Sbarro Inc. reflect the risks associated with its
participation in the highly competitive restaurant industry, the
company's vulnerability to mall traffic and seasonality, its
highly leveraged capital structure, and its thin cash flow
protection measures.
     
Operating performance has improved over the past three years.  
Same-store sales rose 4.8% in the first three quarters of 2006.  
The operating margin expanded to 35.7% for the trailing 12
months ended September 2006, from 32.6% for the same time period
year ago.  "We expect this operating momentum to continue as the
company should continue to benefit from the reengineering of its
operations," added Ms. Shand.

Sbarro Inc. headquartered in Melville, New York, is a leading
quick service restaurant chain that serves Italian specialty
foods.  As of Oct. 8, 2006, the company owned and operated 479
and franchised 476 restaurants worldwide under brand names such
as "Sbarro," "Umberto's," and "Carmela's Pizzeria." The company
also operated 25 other restaurant concepts and joint ventures
under various brand names.  Total revenues for fiscal 2005 were
approximately US$348 million.  The company announced on
June 19, 2006, its international expansion by opening more than
25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas
and Romania.




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


BANCAFE: Monetary Official & Bank Superintendent to be Probed
-------------------------------------------------------------
Maria Antonieta de Bonilla, head of Guatemalan Monetary Board
and Bank, and Bank Superintendent Willy Zapata will be
questioned on Bancafe's closure, Prensa Latina reports.

According to Prensa Latina, top bank officials in Guatemala will
appear before Congress to explain causes of the scandal that
called the national financial system into question.

Prensa Latina underscores that Ms. de Bonilla and Mr. Zapata
will also be asked on the actions of three firms that cheated
thousands of people and the absence of cash since December 2006
throughout Guatemala.  The two officials were aware of the
fraudulent operations by the Trade Bank, which closed two weeks
earlier.  

Ms. de Bonilla and Mr. Zapata could also present their
resignations before the congress, Prensa Latina notes.

Prensa Latina relates that Eduardo Meyer, delegate of the
Legislative at the Monetary Board, submitted his resignation
earlier, saying that his indications were never met in the
entity.

Representatives of the people held a protest in front of the
congress, Prensa Latina states.

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

As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2006, the Guatemalan central bank, permanently
suspended the operations of Bancafe in the country.  Maria
Antonieta de Bonilla, the president of the central bank, said,
"The board unanimously resolved to suspend operations in Bancafe
due to financial problems derived from the investment of US$204
million in the brokerage Refco."  Bancafe owns US$204 million of
US Treasury bonds held by Refco Inc., a bankrupt commodities
broker.  The Monetary Board of Guatemala said that it decided to
intervene in Bancafe to protect the liquidity and solvency of
the national banking system and to secure and strengthen
national savings.




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


SBARRO INC: Loan Add-on Prompts S&P to Affirm Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on Sbarro Inc.'s bank facility, after the
report that the company will increase the size of the loan to
US$208 million from US$175 million.

Pro forma for the add-on, the facility will consist of a
US$25 million revolving facility due 2013 and a US$183 million
first-lien term loan due 2014.  Both facilities are rated 'B',
one notch above the corporate credit rating.  This and the
recovery rating of '1', indicate our expectation of full
recovery of principal in the event of payment default.

The proceeds from the US$33 million add-on to the term loan will
be used to redeem all of the preferred equity retained by the
Sbarro family in connection to the acquisition of the company by
MidOcean Partners.  

Ratings List:

   * Sbarro Inc.

      -- Corporate credit rating affirmed B-
      -- US$25 million revolver due 2013 affirmed at B
      -- US$183 million term loan due 2014 affirmed B

Sbarro Inc. headquartered in Melville, New York, is a leading
quick service restaurant chain that serves Italian specialty
foods.  As of Oct. 8, 2006, the company owned and operated 479
and franchised 476 restaurants worldwide under brand names such
as "Sbarro," "Umberto's," and "Carmela's Pizzeria."  The company
also operated 25 other restaurant concepts and joint ventures
under various brand names.  Total revenues for fiscal 2005 were
approximately US$348 million.  The company announced on
June 19, 2006, its internationalexpansion by opening more than
25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas
and Romania.




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


ADVANCED MARKETING: Gets Court Nod to Employ BSI as Claims Agent
----------------------------------------------------------------
The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for
the District of Delaware authorized Advanced Marketing Services
Inc. and its debtor-affiliates to employ Bankruptcy Services LLC
as claims and noticing agent in their Chapter 11 cases to, among
other things:

    (1) maintain, process and docket claims filed in their
        bankruptcy cases;

    (2) transmit notices to appropriate parties as required by
        the Bankruptcy Code, the Federal Rules of Bankruptcy
        Procedure and the Local Rules of the District of
        Delaware;

    (3) assist the Debtors within the dissemination of
        solicitation materials relating to a plan of
        reorganization; and

    (4) assist the Debtors with the preparation of their
        schedules and statements.

Furthermore, BSI will assist the Debtors with:

    (1) the preparation of amendments to the master creditor
        lists;

    (2) administrative tasks relating to the reconciliation and
        resolution of claims; and

    (3) the preparation, mailing, and tabulation of ballots for
        the purpose of voting to accept or reject a
        Reorganization Plan or Reorganization Plans.

BSI will not perform any services involving the exercise of
professional judgment without further Court ruling, Mark D.
Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, notes.

The Debtors submit that the employment of BSI will promote the
economical and efficient administration of their estates because
the Debtors will be able to avoid duplication in claims
administration, and in providing notices to their creditors.  In
addition, the Court and the Clerk of Court will be relieved from
the heavy administrative burden and other burdens due to the
large number of creditors and other parties-in-interest involved
in the Debtors' Chapter 11 cases.

According to Mr. Collins, BSI is a firm that specializes in
claims processing, noticing, and other administrative tasks in
Chapter 11 cases.  BSI has (a) substantial experience in the
matters on which it is to be engaged, and (b) acted as official
claims agent in several cases in the U.S. Bankruptcy Court for
the District of Delaware.

Daniel C. McElhinney, BSI Vice President of Client Services,
assures the Court that in its capacity as the Claims and
Noticing Agent in the Debtors' Chapter 11 cases, BSI:

    (a) will not consider itself employed by the U.S. Government
        and will not seek any compensation from the U.S.
        Government;

    (b) waives any rights to receive compensation from the U.S.
        Government;

    (c) will not be an agent of the U.S. Government and will not
        act on behalf of the U.S. Government; and

    (d) will not employ any past or present employees of the
        Debtors in connection with its work as the Claims and
        Noticing Agent.

Mr. Collins relates that BSI will bill the Debtors monthly, and
all invoices will be due and payable upon receipt at these
rates:

     Consulting Services                       Hourly Rate
     -------------------                       -----------
     Senior Bankruptcy Consultant            US$225 - US$295
     Bankruptcy Consultant                   US$185 - US$225
     IT Programming Consultant               US$140 - US$190
     Cash Managers-Document and Data Review  US$125 - US$175
     Clerical                                 US$40 - US$60

BSI reserves the right to reasonably increase its prices,
charges and rates annually on January 2nd of each year.  
However, if the increases exceed 10%, BSI will be required to
give 60 days' prior written notice to the Debtors.

                  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., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as 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.
3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADVANCED MARKETING: Wants to Hire Professionals Sans Approval
-------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ and pay professionals employed in the
ordinary course of their businesses without the need for filing
formal applications for employment or compensation pursuant to
Sections 327, 328, 329, and 330 of the Bankruptcy Code.

The Debtors' employees regularly call on certain professionals,
including attorneys, accountants, and other professionals to
assist them in carrying out their assigned responsibilities,
Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, relates.

The Debtors currently propose to employ these firms as ordinary
course professionals:

   Professional               Service               Monthly Cap
   ------------               -------               -----------
   Rodriguez O'Donnell        Represent Debtors       US$5,000
   Ross Fuerst Gonzalez &     in Federal Maritime
   Williams, P.C.             Commission matters

   Baker & Daniels LLP        Represent Debtors in    US$5,000
                              employment matters

   Hughes Hubbard &           Represent Debtors in    US$30,000
   Reed LLP                   Consumer Product
                              Safety Commission
                              matters

   DLA Piper U.S. LP          Represent Debtors in    US$5,000
                              employment matters

   Outsourcing Solutions      Provide services        US$1,500
   Group, LLC                 related to property
                              tax filings

   Deloitte & Touche LLP      Provide federal and     US$20,000
                              state income tax
                              consulting services

The ordinary course professionals will not be involved in the
administration of the Chapter 11 cases, but will provide
services in connection with the Debtors' ongoing business
operations and the resolution of any related operational
difficulties.

The Debtors reserve the right to employ other ordinary course
professionals by serving a notice of that employment on certain
parties-in-interest.

Requiring each ordinary course professional to apply separately
for approval of their employment and compensation would be
unwieldy and burdensome on both the Debtors and the Court, Mr.
Heath explains.  He also points out that the uninterrupted
service of the ordinary course professionals is vital to the
Debtors' continuing operations and their ability to reorganize
or liquidate in an orderly fashion.

The Debtors propose to require each ordinary course professional
to file an affidavit with the Court declaring:

    -- that the professional is a disinterested person, as that
       term is defined by Section 101(14) of the Bankruptcy
       Code; or

    -- if the professional is an attorney, that the professional
       does not represent or hold any interest adverse to the
       Debtors or their estates with respect to matters for with
       the professional seeks retention.

No ordinary course professional will receive payment for
postpetition services rendered until it files the retention
affidavit and serves that affidavit on the Notice Parties.

The Notice Parties will have 20 days to object to the
employment.  Retention of a professional will be authorized if
none of the Notice Parties objects.  If an objection is served,
the parties will attempt to resolve their differences or submit
the proposed employment to the Court for consideration.

The Debtors propose to pay an ordinary course professional 100%
of the fees and disbursements requested by a professional,
subject to a monthly cap.  In the event the disbursements exceed
the cap, the payment will be subject to prior Court approval.  
The Debtors may seek to adjust the cap.

Every 90 days, the Debtors will file with the Court and serve on
notice parties a statement providing for:

    -- the name of each ordinary course professional and the
       aggregate amount paid as compensation for services
       rendered and as reimbursement of expenses incurred by
       each professional during the preceding 90 days; and

    -- a list of any additional professionals retained during
       the period, including a brief description of the services
       provided by that professional.

                  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., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as 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.
3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


AIR MADRID: Air Plus Comet Takes Over Workforce & 7 LatAm Routes
----------------------------------------------------------------
Air Plus Comet will operate routes in seven Latin American
countries previously covered by folded discount carrier Air
Madrid Lineas Aereas S.A., MercoPress reports.

Spanish Public Works Minister Magdalena Alvarez allowed Air
Comet to operate pursuant to an agreement with its president,
Gerardo Diaz.

"This agreement was held with the company that made the best
offer and which met all the requirements needed to come to a
solution," Ms. Alvarez told MercoPress.

Under the agreement, Air Comet will take over routes in
Argentina, Peru, Columbia, Chile, Ecuador, Panama and Costa
Rica; it aims to fly to Mexico and Cuba in the future.  It plans
to take on stranded Air Madrid passengers still holding ticket
to fly for an extra EUR200, AFX News reports, citing a statement
by the Spanish ministry.  It also plans to take over 53 percent
Air Madrid's 1,089 employees, AFX relates.

Earlier, German airline LTU dismissed plans to take over Air
Madrid's LatAm routes following talks with investors and
authorities in Spain, AFX adds.

Air Madrid shut down its operations on Dec. 15, 2006, leaving
330,000 passengers stranded in Latin America and Spain.  The
Spanish government had been investigating the company's
operations due to constant customer's claims of poor service
that resulted in the cancellation of its permit to operate.  The
budget airline had been under scrutiny for delays that have kept
hundreds of passengers in airports for days.  

Air Madrid didn't show any intention of refunding tickets and it
is unknown if and when the carrier's operations will resume.

Headquartered in Madrid, Spain, Air Madrid Lineas Aereas S.A. --
http://www.airmadrid.com/-- operated 10 aircraft in its fleet.   
Up until its shutdown, it operated routes to Spain, Mexico and
South and Central America.


ALASKA AIR: Posts US$52.6 Million 2006 Net Loss
-----------------------------------------------
Alaska Air Group, Inc. reported a full year net loss of US$52.6
million in 2006, compared with a net loss of US$5.9 million in
2005.

The 2006 results include charges related to the transition to an
all-Boeing 737 fleet at Alaska Airlines and for voluntary
severance programs related to new labor contracts, as well as
mark-to-market fuel hedging adjustments.  The 2005 results
similarly include mark-to-market fuel hedge adjustments,
voluntary severance program charges, a refund of Mexico
navigation fees and the cumulative effect of a change in the
company's maintenance accounting policy.  Excluding the impact
of these items, 2006 net income would have been US$137.7
million, compared with US$55.0 million.

Alaska Air reported a fourth quarter 2006 net loss of US$11.6
million, compared with a net loss of US$33.0 million in the
fourth quarter of 2005.  Similar to the items noted for the full
year, both the 2006 and 2005 quarterly results include mark-to-
market fuel hedge accounting adjustments and restructuring-
related items.

Alaska Air would have reported a fourth quarter net loss of
US$3.4 million in 2006, compared with net income of US$0.6
million in the fourth quarter of 2005.
    
"While unit revenue growth slowed somewhat during the fourth
quarter, our full year adjusted earnings show steady improvement
over the last five years.  This positive trend reflects the
commitment of employees at Alaska and Horizon to achieve our
customer, operational and financial goals.  Alaska's transition
by the end of 2008 to an all-737 fleet will further our efforts
to reduce costs while delivering a compelling customer value,"
said Alaska Air's chairperson and chief executive officer Bill
Ayer.

Because they achieved a number of financial and operational
goals, Air Group employees have earned US$36.8 million of
incentive pay.  This is the highest incentive payout in the
company's history.  In addition, the marked improvement in
operating cash flows allowed the company to contribute nearly
US$122 million to its defined benefit pension plans in 2006,
bringing the funded percentage to nearly 80 percent based on the
projected benefit obligation of the plans.
    
Alaska Airlines' passenger traffic in the fourth quarter
increased 3.4% on a capacity increase of 3.6%.  Alaska Air's
load factor decreased 0.2 percentage points to 73.7%, compared
with the same period in 2005.  Alaska's operating revenue per
available seat mile (ASM) increased 3.9%, and its operating
costs per ASM excluding fuel and adjustments related to
restructuring activities increased 2.0%.

Alaska Air's pretax loss for the quarter was US$12.1 million,
compared with a pretax loss of US$46.3 million in 2005.  
Excluding the restructuring adjustments and fuel-hedging items,
Alaska Air's pretax loss was US$1.9 million for the quarter,
compared with pre-tax income of US$0.5 million in the fourth
quarter of 2005.
    
Meanwhile, Alaska Air subsidiary Horizon Air's passenger traffic
in the fourth quarter increased 4.3% on a 5.2% capacity
increase.  Horizon Air's load factor decreased by 0.7 percentage
points to 73.0%.  Horizon Air's operating revenue per ASM
increased 7.1%, and its operating costs per ASM excluding fuel
increased 6.8%.  Horizon Air's pretax loss for the quarter was
US$3.5 million, compared with a pretax loss of US$6.6 million in
2005.  Excluding the fuel-hedging adjustments, Horizon Air's
pretax loss was US$0.5 million for the quarter, compared to
pretax income of US$0.4 million in the fourth quarter of 2005.
    
Alaska Air Group had cash and short-term investments at
Dec. 31, 2006, of approximately US$1.0 billion, compared with
US$983 million at Dec. 31, 2005.

Alaska Air's debt-to-capital ratio, assuming aircraft operating
leases are capitalized at seven times annualized rent, improved
to 72% as of Dec. 31, 2006.

Seattle, Washington-based Alaska Air Group, Inc. (NYSE: ALK) --
http://alaskaair.com/-- is a holding company with two principal
subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries,
Inc.  Alaska Air operates an all-jet fleet with an average
passenger trip length of 1,009 miles.  Alaska Air principally
serves destinations in the state of Alaska and North/South
service between cities in the Western United States, Canada, and
Mexico.  Horizon Air operates jet and turboprop aircraft with
average passenger trip of 382 miles.  Horizon Air serves 40
cities in seven states and six cities in Canada.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 6, 2006,
Moody's Investors Service affirmed the corporate family rating
of Alaska Air Group, Inc. and the Equipment Trust Certificate
rating of Alaska Airlines, Inc. at B1, and changed the outlook
to stable from negative.


BALDOR ELECTRIC: Prices Common Stock & Senior Notes Offerings
-------------------------------------------------------------
Baldor Electric Co. has set the price for the public offering of
10,294,118 shares of its common stock at US$34 per share and
US$550 million principal amount of 8.625% senior unsecured notes
due 2017.  Baldor granted the underwriters an over-allotment
option to purchase 1,430,882 additional shares of common stock.  
The notes will accrue interest at a per year rate equal to
8.625%, payable semiannually, and will mature on Feb. 15, 2017.

The proceeds from these offerings, along with borrowings under a
new senior secured credit facility and the issuance of common
stock to Rockwell Automation, Inc., will be used to finance the
acquisition of the Reliance Electric industrial motors and Dodge
mechanical power transmission businesses of Rockwell Automation,
Inc., repay substantially all of Baldor's indebtedness and pay
related fees and expenses.  Baldor expects to close the
offerings concurrent with the acquisition on Jan. 31, 2007.

The issuance of the common stock and senior notes will be
subject to the concurrent closing of the acquisition, market
conditions and other conditions and there can be no assurance
that the issuance will be consummated.

UBS Investment Bank is acting as sole book-running manager for
the common stock offering and BNP Paribas Securities Corp. and
Lehman Brothers Inc. are acting as joint book-running managers
for the senior notes offering.

The offerings were made under the company's shelf registration
statement filed with the Securities and Exchange Commission on
Jan. 8, 2007.

The prospectus and prospectus supplements are available at no
charge by visiting EDGAR on the SEC Web site at
http://www.sec.gov.Alternatively, these documents may be  
obtained by contacting the underwriters participating in the
relevant offering:

Common stock offering:

          UBS Investment Bank
          Attn: Prospectus Department
          299 Park Avenue, New York, NY 10171
          Tel: (212) 821-3884

Senior notes offering:
  
          BNP Paribas Securities Corp.
          Attn: High Yield Capital Markets
          787 7th Avenue, New York, NY 10019
          Tel: (800) 854-5674

                     -- or --

          Lehman Brothers Inc.
          Attn: High Yield Capital Markets
          745 7th Avenue, New York, NY 10019
          Tel: (888) 603-5847

Baldor Electric Company is a manufacturer of industrial electric
motors, drives and generators.  Baldor is headquartered in Fort
Smith, Arkansas.   Power Systems is a leading provider of Dodge
power transmission products, including mounted bearings and
enclosed gearing, and Reliance Electric industrial motors,
including large AC and custom, variable speed and specialty, and
small and medium AC motors.  The company has offices in Mexico.

Moody's Investors Service assigned a Ba3 ratng on the proposed
US$550 million senior unsecured notes.


BALDOR ELECTRIC: Moody's Affirms Ba3 Rating on US$550-Mil. Notes
----------------------------------------------------------------
Moody's Investors Service affirmed the B1 corporate family
rating of Baldor Electric Company along with the Ba3 ratings for
the proposed senior secured credit facilities and B3 ratings for
the proposed US$550 million senior unsecured notes following the
company's disclosure that the company intends to eliminate a
preferred stock issuance from its previously announced financing
plans.  The rating outlook is stable. These first-time ratings
are subject to final documentation.

Proceeds from the proposed debt offerings, together with
proceeds from the issuances of common stock will be used to fund
the US$1.8 billion acquisition of the Power System businesses of
Rockwell Automation, Inc., refinance existing debt and pay
transaction fees. Initial financing plans included the use of
US$150 million preferred stock, which the rating agency treated
as 100% equity.

The revised plans eliminate the preferred stock offering and
increase the term loan to US$1.050 billion from US$1 billion,
use US$25 million of borrowings under the revolving credit
facility instead of remaining undrawn at close and the use of an
additional US$75 million of equity to fund the acquisition of
the power system businesses.

Depending on market conditions, the equity offering could be
increased as much as US$75 million.  Any additional net proceeds
would be first applied to borrowings under the revolver, then
the term loan.  The transaction is expected to be completed in
the first quarter of 2007.

Ratings affirmed with a stable outlook:

   -- B1 corporate family rating;

   -- B1 probability of default rating, LGD4, 50% loss given
      default assessment;

   -- Ba3 for the US$1.05 billion senior secured term loan
      maturing in 2014;

   -- Ba3 for the US$200 million senior secured revolving credit
      facility maturing in 2012;

   -- B3 for the US$550 million senior unsecured notes; and

   -- SGL-1 speculative grade liquidity rating.

Ratings withdrawn as a result of this action:

   -- B3 for the US$150 million mandatorily convertible
      preferred stock.

The initial B1 corporate family rating reflects the high levels
of debt required to consummate the acquisition of the Power
Systems businesses, modest free cash flow expected in 2007 and
significant reliance on and susceptibility to downturns in the
North American industrial sector.

The ratings acknowledge Baldor Electric's enhanced competitive
position, particularly in the North American industrial electric
motors market, strong brand recognition, reputation for quality
products and strong operating margins.  Further, the rating
agency believes the Power System businesses fit nicely with the
existing Baldor Electric business resulting in a company capable
of providing end to end solutions through the power conversion
cycle.

Despite the relative size of the transaction, Moody's believes
integration risk will be low and that cost synergies will be
modest in the next two years.  Upward rating momentum will be
dependent on the company's ability to generate strong cash flows
and reduce the acquisition related debt.

The stable outlook reflects Moody's view that the combined
company will grow organically throughout the assimilation
process over the 12 to 18 month period following the acquisition
and that modest free cash flow generation will be used to de-
leverage.  The outlook incorporates an expectation that the
global motor market will continue to expand and that the company
will expand internationally as a result.

The previous rating action for Baldor Electric was the January
9, 2007 assignment of its B1 corporate family ratings, Ba3
senior secured rating, B3 senior unsecured rating and the B3
preferred stock rating.

Baldor Electric Company is a leading manufacturer of industrial
electric motors, drives and generators.  Baldor is headquartered
in Fort Smith, Arkansas.   Power Systems is a leading provider
of Dodge power transmission products, including mounted bearings
and enclosed gearing, and Reliance Electric industrial motors,
including large AC and custom, variable speed and specialty, and
small and medium AC motors.  The company has offices in Mexico.


FORD MOTOR: Likely to Report Loss in 2006 Fourth Quarter
--------------------------------------------------------
Rising interest rates, higher gas prices, and a shift away from
high-margin trucks may hurt Ford Motor Company's 2006 earnings,
Reuters reports.

Analysts, Reuters says, expect Ford to detail a record loss in
its fourth-quarter and full-year 2006 results.

Ford, which lost US$7 billion through the first nine months of
2006, is expected to lose another US$4.86 billion in the fourth
quarter as it booked costs to close plants and cut jobs,
according to Wall Street estimates tracked by Reuters Estimates.

"The basic story of Ford's stunning collapse in its home-market
profitability remains the same," David Healy, Burnham Securities
analyst, told Reuters.  "Ford's finances were wrecked by the
collapse in volume and pricing of its most profitable truck
models."

Ford's 2006 financial results are expected to be filed today.

As reported in the Troubled Company Reporter on Jan. 4, 2007,
Ford's dealers delivered 233,621 new vehicles to U.S. customers
in December, down 13% compared with a year ago.  Lower F-Series
sales (down 21% compared with last December's near-record month)
and lower sales for the discontinued Taurus and Freestar minivan
more than accounted for the decline.

Full year sales totaled 2.9 million, down 8% compared with full
year 2005.  Car sales were 5% higher than a year ago.  It was
the second year in a row of higher car sales and the first back-
to-back increase since 1993-1994.  Ford's new mid-size sedans
were the major factors behind the increase as combined sales for
the Ford Fusion, Mercury Milan, and Lincoln MKZ totaled 211,469.
Awareness and demand for these award-winning products continues
to grow.  In December, Fusion sales were up 67%, Milan sales
were up 36%, and MKZ sales were up 78%.  MKZ sales of 3,795 were
the highest for any month.

Full year truck sales were down 14% as higher gasoline prices
and long-term demographic trends drove SUV sales lower and a
soft housing industry weighed on full-size truck sales.  Ford
believes these factors will continue to weigh on these segments
in 2007.  New products should help mitigate these factors.  The
company's new full-size SUVs, Ford Expedition and Lincoln
Navigator, closed 2006 by posting higher sales each month in the
fourth quarter.  The company will soon introduce a new Super
Duty F-Series pickup truck.  This model accounts for about 40%
of total F-Series sales.

Conversely, passenger car sales and crossover utility vehicles
should continue to benefit from demographic trends (notably the
aging of the baby boomer generation) and higher gasoline prices.
In December, the company expanded its CUV line with the
introduction of the Ford Edge and Lincoln MKX.  In addition, the
company will introduce a redesigned Ford Escape and Mercury
Mariner early this year.  Escape has been the best-selling CUV
since it was introduced in late 2000.

Land Rover was the company's only brand to post higher sales in
2006.  Land Rover's full year sales totaled 47,774 -- a new
calendar year sales record.  Although Lincoln's overall sales
were down 2%, sales to individual retail customers rose 4%.

                   U.S. Inventories Lower

At the end of December, Ford, Lincoln and Mercury inventories
were estimated at 590,000 units.  This level is 143,000 units
lower than a year ago.  The company estimates less than 10% of
the total inventory is 2006 models.

                     About Ford Motor Co.

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

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.


FORD MOTOR CREDIT: Earns US$1.3 Billion in 2006
-----------------------------------------------
Ford Motor Credit Co.'s net income decreased US$621 million to
US$1,283 million in 2006, compared with earnings of US$1,904
million a year earlier.  

On a pre-tax basis from continuing operations, Ford Motor Credit
earned US$1,953 million in 2006, down US$970 million from 2005.  
The decrease in full year earnings primarily reflected higher
borrowing costs, higher depreciation expense and the impact of
lower average receivable levels.  These were offset partially by
market valuations primarily related to non-designated
derivatives and reduced operating costs.
    
In the fourth quarter of 2006, Ford Motor Credit's net income
decreased US$26 million to US$279 million, from a year earlier.  
On a pre-tax basis from continuing operations, Ford Motor Credit
earned US$406 million in the fourth quarter, compared with
US$482 million in the previous year.  The decrease in fourth
quarter earnings primarily reflected higher borrowing costs and
higher depreciation expense, offset partially by market
valuations primarily related to non-designated derivatives.
    
"Our results for 2006 were in line with our expectations.  We
made good progress on several fronts this year, notably our
solid funding and strong liquidity, our focus on global cost
reduction and our plans to restructure our North American
operations.  In 2007 we expect lower earnings due to margin and
volume pressures and lower credit loss reserve reductions.  Our
sustained focus will be on operational effectiveness, strong
dealer service and profitably supporting Ford vehicle sales
worldwide," said Ford Motor Credit's chairperson and chief
executive officer Mike Bannister.

On Dec. 31, 2006, Ford Motor Credit's on-balance sheet net
receivables totaled US$135 billion, compared with US$132 billion
at year-end 2005.  Managed receivables decreased to US$148
billion, from US$150 billion a year ago.
    
Ford Motor Credit paid dividends of US$1.4 billion in 2006.  On
Dec. 31, 2006, managed leverage was 11.4 to 1.
       
Ford Motor Credit Co. -- http://www.fordcredit.com/-- is an
automotive finance company, which has supported the sale of Ford
products since 1959.  With about 14,000 employees, Ford Motor
Credit operates in 36 countries including Brazil and Mexico in
Latin America.  Ford Motor Credit is an indirect wholly owned
subsidiary of Ford Motor Company.  It provides automotive
financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land
Rover, Mazda and Volvo dealers and customers.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed lowered Ford Motor Credit
Co.'s long-term debt rating to BB(low) from BB, and confirmed
Ford Credit's short-term debt rating at R-3(high).

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

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

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the senior unsecured rating of
Ford Motor Credit to Ba3 from Ba2.  Moody's said the outlook for
the ratings is negative.


GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
------------------------------------------------------------
General Motors Corp., Ford Motor Corp., and the United Auto
Workers union are discussing a plan to transfer billions of
dollars of retiree healthcare obligations to the union, The Wall
Street Journal reports, citing people familiar with the matter.

The parties are determined to restructure the automotive
industry without the need for the automakers to file for
bankruptcy, WSJ says.

According to Reuters, GM hired the advisers who worked on a deal
between Goodyear Tire & Rubber Co. and the United Steelworkers
union.  

                 About General Motors Corp.

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 284,000
people around the world.  It has manufacturing operations in
33 countries, including Mexico, 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.


GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports
---------------------------------------------------------------
General Motors will be delaying the announcement of its 2006
year-end and fourth quarter financial results but expects to
report improved performance in its automotive business,
including record fourth quarter revenue in 2006.  The company
also said that it will restate its financial statements,
primarily due to pre-2002 tax accounting adjustments.

GM indicated that its deferred tax liabilities, as previously
disclosed in its results for the third quarter of 2006 and prior
periods, were overstated due to errors that originally occurred
primarily before 2002.  While these errors do not impact cash
flow or previously reported cash balances, retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of US$450 million to US$600 million as a result.

In light of recent focus on accounting under Statement of
Financial Accounting Standard 133, Accounting for Derivative
Instruments and Hedging Activities, GM is reviewing its
accounting in this area.  While this review is still ongoing, GM
currently anticipates that it will make accounting restatements
in this area, and the completed review may result in additional
restatements that could be material.  GM also is assessing
various other miscellaneous adjustments for 2002 through 2006,
and believes these adjustments, individually and collectively,
will not be material on a consolidated basis.

As a result of these anticipated adjustments related to the
deferred tax liabilities, hedging activities and other
miscellaneous items, GM will be restating its financial
statements for 2002 through the third quarter of 2006.  GM does
not expect any material impact on cash flow.

In addition, GMAC has informed GM that it continues to finalize
its financial statements for 2006 and its balance sheet as of
Nov. 30, the date of the sale of 51% of the equity of GMAC.  As
a result, GMAC advised GM that it is not yet able to provide the
financial information needed to complete GM's fourth quarter
financial results.

Based on these factors, GM will delay the announcement of its
2006 year-end and fourth quarter financial results, previously
planned for Jan. 30, 2007, pending resolution of outstanding
accounting issues and final GMAC financial results.

GM intends to provide further information on the progress of its
financial reporting during the week of Feb. 5.  The Corporation
currently anticipates that it will file its annual report on
Form 10-K by its due date of March 1, 2007.

Separately, in terms of operations, GM continued to demonstrate
improved performance in its automotive business, with record
fourth quarter revenue in 2006.  The company expects to be
profitable on a reported consolidated basis in the 2006 fourth
quarter, and net income is expected to improve significantly
over the fourth quarter of 2005.  GM also further improved its
liquidity position, ending the year with approximately
US$26.4 billion in cash and equivalents (including US$2.5
billion of readily available VEBA assets), an increase of about
US$5.9 billion over year-end 2005.

GM reportedly implemented Statement of Financial Accounting
Standards 158, a new accounting standard for pension and other
post-retirement benefits effective Dec. 31, 2006.  Adoption of
this standard will result in negative stockholders' equity on a
book value basis.  For the third straight year, the company's
U.S. pension funds performed strongly, with asset returns of 15%
for 2006.  As a result, including the impact of significant
employee attrition in 2006, GM's U.S. hourly and salary plans
(as measured by Statement of Financial Accounting Standards 87)
ended the 2006 calendar year over-funded by US$17 billion.

                  About General Motors Corp.

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 284,000
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.


LEAR CORP: Posts US$4.3 Billion Fourth Quarter 2006 Net Sales
-------------------------------------------------------------
Lear Corp. reported net sales of US$4.3 billion for the fourth
quarter of 2006.

In last year's fourth quarter, Lear had a pretax loss of
US$635.9 million, including a loss of US$607.3 million related
to the divestiture of the Interior business, restructuring costs
of US$42.5 million and a loss on the extinguishment of debt of
US$48.5 million.

For the fourth quarter of 2005, Lear reported net sales of
US$4.4 billion and a pretax loss of US$346.1 million.  Excluding
the loss on divestiture, restructuring costs and other special
items, Lear had pretax income of US$63.2 million in the fourth
quarter of 2006.  This compares with pretax income before
special items of US$77.6 million in the same period a year
earlier.  
    
The decline in net sales for the quarter reflects primarily
lower production in North America and the divestiture of Lear's
European Interior business.  Operating results also declined,
reflecting the lower production, offset in part by the addition
of new business and cost improvements.
    
Lear reported a net loss of US$645.0 million, or US$8.90 per
share, including the loss on divestiture, restructuring costs
and other special items, for the fourth quarter of 2006.  This
compares with a net loss of US$602.6 million, or US$8.97 per
share, including special items, for the fourth quarter of 2005.
    
Fourth-quarter free cash flow was US$254.4 million, compared
with US$46.0 million in the fourth quarter of 2005.  The
improvement reflects primarily lower capital spending and the
timing of commercial recoveries.  Net cash provided by operating
activities was US$179.2 million and US$332.0 million in the
fourth quarters of 2006 and 2005, respectively.  

During the quarter, the Lear made important progress on
strategic priorities by reaching an agreement to transfer its
North American Interior business to the International Automotive
Components -- North America joint venture IAC North America in
return for a 25% equity stake.  Lear also successfully completed
the offering of US$900 million in senior notes and the
subsequent tender offer for substantially all of its outstanding
2008 and 2009 senior notes.  In addition, Lear maintained its
quality and customer service momentum and received several
awards of recognition, including Assembly Plant of the Year by
Assembly magazine for its Hyundai seating plant in Montgomery,
Alabama.

For the full-year 2006, Lear reported record net sales of
US$17.8 billion and a pretax loss of US$655.5 million, including
a loss of US$636.0 million related to the divestiture of the
Interior business, restructuring costs of US$99.7 million and a
fourth-quarter loss on the extinguishment of debt of US$48.5
million.  For 2005, Lear reported net sales of US$17.1 billion
and a pretax loss of US$1,187.2 million.  Excluding the loss on
divestiture, restructuring costs and other special items, Lear
had pretax income of US$114.7 million in 2006.  This compares
with pretax income before special items of US$96.6 million in
2005.  

Full-year net sales increased, reflecting primarily the addition
of new business, partially offset by lower production in North
America and unfavorable platform mix.  Operating results
improved, reflecting the addition of new business and ongoing
cost and efficiency actions, largely offset by lower production
in North America and unfavorable platform mix.
    
"In a challenging environment last year, we improved our
financial results for the full year, improved our liquidity
position and took a number of important steps to reposition Lear
for future success.  We refocused our strategy to manage our
business on a product-line basis.  We increased our emphasis on
new technology and innovation with our Core Dimension(TM)
strategy.  We also continued to make steady progress in
diversifying our sales on a customer, regional and vehicle
segment basis," said Lear chairperson and chief executive
officer Bob Rossiter.
    
Lear reported a net loss of US$707.5 million, or US$10.31 per
share, including the loss on divestiture, restructuring costs
and other special items, for the full-year 2006.  This compares
with a net loss of US$1,381.5 million, or US$20.57 per share,
including special items, in 2005.
    
Free cash flow in 2006 was positive US$115.7 million.  This
compares with negative free cash flow of US$418.7 million in
2005.  The improvement reflects primarily the non-recurrence of
the one-time net negative impact of changes in customer payment
terms, lower capital spending and the timing of commercial
recoveries.  Net cash provided by operating activities was
US$285.3 million and US$560.8 million in 2006 and 2005,
respectively.  

Lear expects 2007 worldwide net sales of approximately US$15
billion, reflecting primarily the addition of new business
globally and the positive impact of foreign exchange, partially
offset by unfavorable platform mix.
    
Lear anticipates 2007 income before interest, other expense,
income taxes, restructuring costs and other special items (core
operating earnings) to be in the range of US$560 to US$600
million.  The improvement in core operating earnings reflects
the addition of new business and cost improvements, offset in
part by unfavorable platform mix.
    
Restructuring costs in 2007 are estimated to be about US$100
million.
    
Interest expense is estimated to be in the range of US$215 to
US$225 million.  Pretax income before restructuring costs and
other special items is estimated to be in the range of US$270 to
US$310 million.  Tax expense is expected to be between US$100
and US$120 million, depending on the mix of earnings by country.
    
Capital spending in 2007 is estimated at approximately US$250
million.

Depreciation and amortization expense is estimated at about
US$310 million.
    
Free cash flow is expected to be positive at about US$225
million for the year.
    
Key assumptions underlying Lear's financial outlook include
expectations for industry vehicle production of approximately
15.3 million units in North America and 19.2 million units in
Europe.  Lear continues to see production for the Big Three in
North America being down slightly.  In addition, the company is
assuming an exchange rate of US$1.30/Euro.     

Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components.  Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.

Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey and Venezuela.

                        *    *    *

As reported on Nov. 23, 2006, Moody's Investors Service raised
Lear Corp.'s rating outlook to stable from negative and affirmed
all other Lear ratings.

On Nov. 20, 2006, Standard & Poor's Ratings Services assigned
its 'B-' ratings to Lear Corp.'s US$300 million senior notes due
2013 and its US$400 million senior notes due 2016.

Lear's 'B+' corporate credit and other ratings were affirmed.
The outlook is negative.

Moody's Investors Service has assigned a B3, LGD4, 61% rating to
Lear Corp.'s new offering of US$700 million of unsecured
notes.  At the same time, Moody's affirmed Lear's Corporate
Family Rating of B2, Speculative Grade Liquidity rating of SGL-2
and negative outlook.  All other long-term ratings are
unchanged.


NORTEL NETWORKS: Declares Preferred Share Dividends
---------------------------------------------------
The Board of Directors of Nortel Networks Limited declared a
dividend in respect of each of the months of January and
February 2007 on each of the outstanding Cumulative Redeemable
Class A Preferred Shares Series 5 and the outstanding Non-
cumulative Redeemable Class A Preferred Shares Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.

The dividend on each series in respect of the month of January
is payable on Feb. 12, 2007 to shareholders of record of such
series at the close of business on Jan. 31, 2007.  The dividend
on each series in respect of the month of February is payable on
March 12, 2007 to shareholders of record of such series at the
close of business on Feb. 28, 2007.

                   About Nortel Networks

Based in Ontario, Canada, Nortel Networks Corp. (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.


VITRO SAB: Discloses Successful US$1.0 Billion Bond Offering
------------------------------------------------------------
Vitro, SAB de C.V., successfully priced its previously
anticipated debt offering, upsized from US$750 million to US$1.0
billion of senior unsecured notes principally to refinance
existing third-party debt at the Vitro holding company level,
substantially all of the third-party debt at its subsidiary
Vitro Envases Norteamerica, SA de C.V. and certain third-party
debt at its subsidiary Vimexico, SA de C.V.

The Notes will be issued in two tranches:

          -- US$700 million of senior unsecured notes due
             Feb. 1, 2017, callable after year 2012, at a coupon
             of 9.125%, and

          -- US$300 million of senior unsecured notes due
             Feb. 1, 2012, non-callable for life, at a coupon of
             8.625%.

The Notes will pay interest semiannually and will receive
guarantees from VENA and its wholly owned subsidiaries and
Vimexico and its wholly owned subsidiaries.  The Notes offering
is expected to close on Feb. 1, 2007.

The Notes offering is 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-US persons outside the United
States in accordance with Regulation S under the Securities Act
of 1933.  The Notes will be issued with registration rights.

As previously announced on Jan. 10, 2007, concurrently with the
Notes offering, VENA launched an offer to purchase for cash any
and all of its outstanding 10.75% senior secured guaranteed
notes due 2011 and a solicitation of consents from the holders
of the 2011 Notes.  Pursuant to the terms of the Tender Offer
and Consent Solicitation, on Jan. 24, 2007, 87.6% of the
aggregate principal amount of the 2011 Notes have been tendered.  
The Tender Offer will expire on Feb. 7, 2007, unless extended by
VENA.

Among other things, the Tender Offer and Consent Solicitation
are subject to consummation of the Notes offering and the Notes
offering is subject to receipt of the required consents in the
Consent Solicitation, which required consents have been
obtained.  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 Monterrey, Mexico, Vitro, SAB de CV, through
its two subsidiaries, Vitro Envases Norteamerica, SA de C.V
(VENA) and Vimexico, SA de CV, is a leading global glass
producer, serving the construction and automotive glass markets
and glass containers needs of the food, beverage, wine, liquor,
cosmetics and pharmaceutical industries.  

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Moody's Investors Service assigned a global
foreign currency rating of B2 to Vitro, SAB de CV's proposed
US$750 million senior unsecured guaranteed notes due 2012 and
2017, which are being offered in the context of a major
financial restructuring initiative the company announced on
Jan. 11, 2007.

This rating was assigned:

   Vitro, SAB de CV:

   -- Proposed US$750 million senior unsecured guaranteed notes
      due 2012 and 2017, at 2.

These ratings were affirmed:

Vitro, SAB de CV:

  -- Corporate Family at B2;

  -- US$225 million 11.75% senior unsecured notes due 2013, at
     Caa1, with the possibility of upgrade to B2 upon
     execution of the proposed guarantee structure consistent
     with the proposed notes;

  -- US$152M 11.375% senior unsecured notes due 2007, at Caa1,
     and withdrawn upon successful conclusion of the Tender
     Offer.

The ratings outlook changed to stable from negative.

Vitro Envases Norteamerica, SA de CV:

   -- Corporate family, at B2, and withdrawn upon conclusion
      joy of the proposed transactions; and

   -- US$250 million 10.75% senior secured notes due 2011,
      at B2, and withdrawn upon successful conclusion of
      the Tender Offer.

The rating outlook remains stable until such time that the
ratings are withdrawn.


WERNER LADDER: Evaluating US$175 Million Acquisition Offer
----------------------------------------------------------
As part of its overall restructuring plans, Werner Holding Co.
(DE) Inc. aka Werner Ladder Company is evaluating an offer to
purchase the company for US$175 million from an investor group.  
This offer validates the company's strategy to emerge from
Chapter 11 during 2007.  As part of its strategy, Werner is
planning to seek bankruptcy court approval to formalize its
emergence strategy.

"We intend to select a transaction that maximizes value for all
stakeholders and allows Werner to emerge from bankruptcy as
quickly as possible with stronger operations and a deleveraged
capital structure," Mr. Loughlin commented.  "We are pleased
that we've already received an unsolicited bid for US$175
million from a consortium of investors.  We are currently
evaluating the offer, however, what is clear is the offer
supports the company's expectation that it will emerge from
Chapter 11 as a going concern.  Our goal is simple -- to
maximize value through a fair process."

Werner has access to all the funds necessary to operate its
business and to complete its operational and financial
restructuring.  In addition to its significant current cash
position, Werner has the continuing support of Black Diamond
Commercial Finance, which is the provider of the company's
US$99 million debtor-in-possession financing.  Werner will
continue to satisfy its post-petition obligations to customers,
suppliers, employees and other stakeholders in the normal course
of business.

Werner and Black Diamond have reached a second forbearance
agreement, subject to bankruptcy court approval, to ensure
Werner's continued access to financing throughout the expected
completion of the financial restructuring process.

"We are grateful to our customers, suppliers and employees for
their continued support," James J. Loughlin, Jr., CEO of Werner
Co., said.  "We are committed to honoring our commitments to our
business partners who are critical to our success in the future.  
We expect to generate dramatically improved operating results in
2007 and despite our recent challenges, our cash position is
strong and our revolving line of credit is undrawn -- an
important accomplishment."

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.




=================
N I C A R A G U A
=================


XEROX CORP: Total Revenue Rises to US$4.4 Bil. in Fourth Quarter
----------------------------------------------------------------
Xerox Corp. reported that total revenue of US$4.4 billion grew
3% in the fourth quarter.  Post-sale and financing revenue,
which represents about 70% of Xerox's total revenue, increased
5%, largely driven by 7% post-sale growth from digital systems.  
Both total revenue and post-sale revenue included a currency
benefit of 3 percentage points.

"Xerox delivered solid performance in the fourth quarter,
contributing to another year of double-digit earnings growth,"
said Anne M. Mulcahy, Xerox chairman and chief executive
officer.

"It was a year of steady improvements across the board," she
added.  "We grew revenue through stronger annuity and expanded
our industry-leading portfolio of products and services.  We
acquired companies that broaden our share of the fast-growing
document management and production color printing markets.  We
generated US$1.6 billion of operating cash flow, returned to
investment grade and bought back US$1.1 billion of Xerox shares.  
As important, we managed our operations efficiently, giving us
the flexibility to compete effectively while delivering value
for shareholders."

Color now accounts for about 37% of Xerox's total revenue, up 3
points from the fourth quarter of 2005.  The number of pages
printed on Xerox color systems grew 36% in the fourth quarter.  
And, color now represents 10 percent of total pages, a year-
over-year increase of 2 points.

Equipment sale revenue was down 1% in the fourth quarter
including a 3-point benefit from currency.  However, strong
install growth of key products is expected to drive future gains
in the company's post-sale revenue.  Xerox's investment in
innovation led to the launch of 14 products in 2006 that
together earned 208 industry awards.  The company expects to
more than double its number of product announcements this year.  
About two-thirds of Xerox's equipment sales come from products
launched in the past two years.

Xerox's production business provides commercial printers and
document-intensive industries with high-speed digital printing
and services that enable on-demand, personalized printing.  
Total production revenue increased 3% in the fourth quarter
including a 4-point currency benefit.  Installs of production
black-and-white systems declined 6 percent with growth in light
production only partially offsetting declines in higher-end
production printing.  Production color installs grew 40%,
reflecting accelerated activity for the Xerox iGen3(R) Digital
Production Press and continued strong demand for the
DocuColor(R) 5000 as well as the DocuColor 240/250 multifunction
system.

Xerox's office business provides document technology and
services for businesses of any size.  Total office revenue was
up 1% in the fourth quarter including a 3-point currency
benefit.  Installs of office black-and-white systems were up 13%
driven by 13% growth from Xerox's desktop devices like the
WorkCentre(R) 4150, and 11 percent growth in its mid-range line
of multifunction devices.  In office color, installs of
multifunction systems were up 39% reflecting strong demand for
the color WorkCentre family.  In November, Xerox launched three
more products for small businesses including the Phaser(R) 6110,
its most affordable desktop color laser printer at a starting
price of US$249.  Xerox said it will launch several more office
color systems next month.

The company also cited continued improvement in its developing
markets operations.  Total revenue grew 8% in DMO.

Gross margins were 41.1%, about flat from fourth quarter of
2005.  Selling, administrative and general expenses were 23.3%
of revenue, a year-over-year improvement of 1.3 points and the
lowest percentage of revenue in more than 15 years.

Xerox generated operating cash flow of US$720 million in the
fourth quarter and ended the year with US$1.5 billion in cash
and short-term investments.  Also during the fourth quarter,
Xerox closed on the US$54 million cash acquisition of XMPie, the
leading provider of software for personalized, multimedia
marketing campaigns.

Since launching its stock buyback program in October 2005, the
company to date has repurchased about 100 million shares,
totaling US$1.5 billion of its US$2 billion program.

Xerox also reported full-year 2006 results:

    * Net income of US$1.2 billion  

    * Total revenue of US$15.9 billion, an increase of US$194
      million or 1% from full-year 2005  

    * Operating cash flow of US$1.6 billion  

    * Year-end cash and short-term investments balance of
      US$1.5 billion  

                      About Xerox Corp.

Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,   
services and finances a range of document equipment, software,
solutions and services.  Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors.  The company has operations in Japan, Italy and
Nicaragua.

                        *     *     *

As Reported in The Troubled Company Reporter on Dec. 1, 2006,
Moody's Investors Service raised the ratings of Xerox
Corporation and supported subsidiaries, upgrading Xerox's
Subordinated shelf registration to (P) Ba1 from (P) Ba2 and
Preferred shelf registration to (P) Ba1 from (P) Ba2.




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


ADELPHIA COMM: Court Directs Bondholders to Post US$3-Bil. Bond
---------------------------------------------------------------
In light of Adelphia Communications Corp. and its debtor-
affiliates' concerns with the stay of their First Modified Fifth
Amended Joint Chapter 11 Plan, the Honorable Shira Scheindlin of
the U.S. District Court for the Southern District of New York
directs the ACC Bondholders to post a US$3,000,000,000 bond,
with 10% to be posted by Jan. 25, 2007, and the remainder by
January 27.  The bond will be used to cover damages suffered by
ACOM creditors from the delay in implementing the Plan, in case
if the ACC Bondholders lose their appeal.

               Irreparable Harm to Bondholders

In a 72-page opinion, the Judge Scheindlin ruled that the ACC
Bondholders will suffer irreparable harm in the absence of a
stay.  Once the Plan will take effect and substantially
consummated, any appeal of the Confirmation Order will be
dismissed as moot, she notes.

Judge Scheindlin also grants the ACC Bondholders' request for an
expedited appeal and establishes a briefing schedule:

   (a) the ACC Bondholders' brief is due Feb. 7, 2007;

   (b) the ACOM Debtors' brief is due 14 days after the service
       of the ACC Bondholders' brief; and

   (c) the ACC Bondholders' reply brief is due seven days after
       the service of the ACOM Debtors' brief.

Judge Scheindlin states that, even assuming that the appeal is
expedited, it is very likely that full appellate review will not
be complete until September 2007 at the earliest.

                  The US$1.3 Billion Bond

The ACOM Debtors enumerated a host of harms that could befall
all parties-in-interest if the Plan is stayed in the interim.  
According to the ACOM Debtors, a potential harm to the non-
moving parties-in-interest is value-erosion resulting in
decreased distribution.

In response to the ACOM Debtors' motion, the ACC Bondholders
offered to post a US$10,000,000 bond, Bloomberg News reported.

According to Judge Scheindlin, because of the condition of the
stay on the posting of the Bond, the potential financial harm to
the non-moving parties-in-interest does not weight against a
stay.

Judge Scheindlin finds that there are several claims on which
the ACC Bondholders have shown a substantial possibility of
success on appeal, including the claims that:

   (a) the Bankruptcy Court erroneously approved an invalid
       settlement and erroneously permitted its inclusion in the
       Plan;

   (b) the Bankruptcy Court erroneously approved an improper
       substantive consolidation and unfairly treated the
       intercompany claims;

   (c) the Plan unfairly discriminates in violation of Section
       1123(a)(4) of the Bankruptcy Code; and

   (d) the Bankruptcy Court erroneously found that the Plan was
       in the best interest of the objecting creditors.

A full-text copy of Judge Scheindlin's 72-page Opinion is
available for free at http://researcharchives.com/t/s?1911

               About Adelphia Communications

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.

As reported in the Troubled Company Reporter on Jan. 9, 2007,
the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York has entered an order
confirming the first modified fifth amended joint Chapter 11
plan of reorganization of Adelphia Communications Corp. and
Certain Affiliated Debtors.


HORIZON LINES: Subsidiary Inks Accord with Northland Services
-------------------------------------------------------------
Horizon Services Group -- Horizon Lines, Inc.'s technology
research and development subsidiary -- has signed an agreement
with Northland Services Inc. to replace their legacy systems and
to provide a new equipment management system.  

Based in Seattle, Northland Services offers barge transportation
to Alaska and Hawaii, charter services, stevedoring and terminal
services.
    
Horizon Service's Web based equipment management and back office
systems are built on years of software development and
continuous optimization to improve transportation asset
visibility, control and utilization.  The solutions will enable
Northland to integrate core operations systems for booking,
fleet management, vessel scheduling, stowage, quoting, billing,
rating, proof of delivery and documentation.
    
Northland Services' executive vice president Shawn Bohnert said,
"Horizon Services Group offers the combination of deep industry
experience, Alaska knowledge and advanced technology expertise
to assist us in migrating to a new systems platform that will
ultimately allow us to improve operational efficiency and
service to our customers.  That was a winning combination for us
when we went through a very thorough review of similar systems
and service providers in the marketplace."

"We are very familiar with Northland's well-earned reputation in
the Pacific Northwest for great service in the Alaska and Hawaii
trades and are proud to be part of their story," said Horizon
Services' chief executive officer Rick Kessler.

Headquartered in Charlotte, North Carolina, Horizon Lines Inc.
-- http://www.horizonlines.com/-- is a Jones Act container
shipping and integrated logistics company and is the parent
company of Horizon Lines Holding Corp. and Horizon Lines LLC.
The company accounts for approximately 37% of total U.S. marine
container shipments from the continental U.S. to the three non-
contiguous Jones Act markets -- Alaska, Hawaii, and Puerto Rico,
and to Guam.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's Investors Service affirmed Horizon Lines LLC's senior
secured rating at Ba2, and LGD2 to 18% from 20%.


HORNBECK OFFSHORE: Schiffrin Sues Firm in US District Court
-----------------------------------------------------------
Schiffrin Barroway Topaz & Kessler, LLP, has filed a class
action lawsuit in the U.S. District Court for the Eastern
District of Louisiana on behalf of all common stock purchasers
of Hornbeck Offshore Services, Inc., from Nov. 1, 2006, through
Jan. 10, 2007.

The complaint charges Hornbeck Offshore and some of its officers
and directors with violations of the Securities Exchange Act of
1934.  More specifically, the complaint alleges that Hornbeck
Offshore failed to disclose and misrepresented this material
adverse facts, which were known to defendants or recklessly
disregarded by them:

          -- that Hornbeck Offshore was experiencing increased
             volatility in its day rate charges;

          -- that contrary to earlier statements, the elevated
             level of day rate charges would not continue
             through calendar year 2007; and

          -- that, as a result, Hornbeck Offshore's statements
             about its financial well-being and future business
             prospects were lacking in any reasonable basis when
             made.
    
On Jan. 10, 2007, Hornbeck Offshore disclosed that it was
revising its EBITDA and earnings per share guidance for the
fourth quarter of 2006 and for fiscal 2006, materially reducing
EBITDA for the fourth quarter of 2006 to range between US$33.0
million and US$34.0 million, down from US$39.0 million to
US$41.0 million.  The company announced it now expected that per
share earnings for the fourth quarter of 2006 to range between
US$0.61 and US$0.63, down from US$0.72 to US$0.77.  It also
expected to reduce 2007 guidance by up to 20%.
    
Hornbeck Offshore was forced to admit that it had knowledge over
the previous several months that operating issues had negatively
impacted the company's financial performance, including
volatility in the offshore vessel day rate, a lag in the
shipyard delivery schedules for new-builds and increased
turnaround time for regulatory dry-dockings, repairs and
maintenance, as well as increased costs for personnel and
insurance.
    
On this shocking news, shares of Hornbeck Offshore's stock
declined US$7.37, or 22%, to close, on Jan. 11, 2007, the
following day, at US$26.14 per share.
    
Plaintiff seeks to recover damages on behalf of class members
and is represented by the law firm of Schiffrin Barroway, which
prosecutes class actions in both state and federal courts
throughout the country.  

Members of the class may or may not later than March 19, 2007,
move the court to serve as lead plaintiff of the class.  A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation.  In order to be
appointed lead plaintiff, the court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as "lead plaintiff."  The ability to share in
any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff.  Parties of interest may or
may not retain Schiffrin Barroway to serve as counsel in this
action.

Schiffrin Barroway Topaz & Kessler, LLP, can be reached at:

               Darren J. Check, Esq.
               Richard A. Maniskas, Esq.
               280 King of Prussia Road
               Radnor, PA 19087
               Phone: 1-888-299-7706 (toll-free)
                      1-610-667-7706
               E-mail: info@sbtklaw.com

                 About Schiffrin Barroway

Schiffrin Barroway Topaz & Kessler, LLP --
http://www.sbtklaw.com-- is a driving force behind corporate  
governance reform, and has recovered billions of dollars on
behalf of institutional and individual investors from the US and
around the world.
    
Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check,
Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706
or 1-610-667-7706, or via e-mail at info@sbtklaw.com.

                  About Hornbeck Offshore

Hornbeck Offshore Services, Inc., a diversified marine service
company headquartered in Covington, Louisiana, is a leading
provider of technologically advanced, new generation OSVs
primarily in the GoM and select international markets, and is a
leading transporter of petroleum products through its fleet of
ocean-going tugs and tank barges primarily in the northeastern
U.S., the GoM and in Puerto Rico.  Hornbeck currently owns a
fleet of over 60 vessels primarily serving the energy industry.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 17, 2006,
Moody's Investors Service affirmed Hornbeck Offshore Services
Inc.'s Ba3 corporate family rating, Ba3 Probability of Default
Rating, Ba3 and LGD4, 55% senior unsecured note ratings, and
changed the outlook from stable to negative.


NBTY INC: Posts US$506 Million First Quarter 2007 Net Sales
-----------------------------------------------------------
NBTY, Inc.'s net sales increased US$51 million, or 11%, to
US$506 million in the fiscal first quarter 2007, ended
Dec. 31, 2006, compared with US$455 million for the fiscal first
quarter ended Dec. 31, 2005.

Net income for the fiscal first quarter ended Dec. 31, 2006,
increased 122% to US$51 million, compared with US$23 million for
the fiscal first quarter ended Dec. 31, 2005.
    
The increase in net income for the fiscal first quarter
reflects:

          -- sales increase of US$51 million along with an
             increase in total gross profit margin to 51% from
             46%;

          -- greater overall manufacturing efficiencies;

          -- significant reduction in SG&A costs as a percentage
             of sales and a decrease in interest expense.
    
NBTY remains focused on controlling costs.  During the 2007
first quarter, SG&A costs decreased as a percentage of sales to
30% from 32% in the same quarter of 2006.  On Dec. 31, 2006,
NBTY had working capital of US$422 million and total assets of
US$1.4 billion.
    
Net sales for the Wholesale/US Nutrition division, which markets
Nature's Bounty, Sundown and Solgar brands, increased US$22
million or 10% to US$247 million in the first quarter of 2007,
from US$224 million for the same quarter in 2006.  Gross profit
for the Wholesale operation increased to 40%, compared with 32%
in the first quarter of 2006.  Product returns for the 2007
fiscal first quarter were US$5 million, compared with US$11
million for the first quarter of 2006.  

The net sales increases are primarily due to a higher level of
promotional activity, which are expected to continue throughout
the entire fiscal year.  As US Nutrition offered a mix of better
selling products, NBTY experienced improved product placement on
customer shelves.  This had the effect of increasing sales and
reducing returns.
    
The Wholesale/US Nutrition division continues to utilize
valuable consumer preference sales data generated by the NBTY's
Vitamin World retail stores and Puritan's Pride Direct
Response/E-Commerce operations to empower its wholesale
customers with this latest information.  The Vitamin World
stores are effectively used as a laboratory for new ideas and
have become a significant tool for determining and monitoring
consumer preferences.  This information, as well as scanned
sales data from the Vitamin World stores, is shared with NBTY's
wholesale customers.
    
While the North American Retail division's net sales decreased
US$3 million, or 6%, to US$55 million in the first quarter of
2007, compared with US$58 million for the fiscal first quarter
ended Dec. 31, 2005, the operation achieved its fourth
consecutive quarter of profitability.  Same store sales for
Vitamin World increased 2% for the fiscal first quarter ended
Dec. 31, 2006.  Vitamin World closed a total of four
underperforming stores and opened one new store during the
fiscal first quarter.  

At the end of the fiscal first quarter of 2007, the North
American Retail division operated a total of 566 stores with 473
stores in the United States and 93 in Canada.  In addition, 19
under-performing stores will be closed during the remainder of
fiscal 2007.
    
European Retail is operating in a difficult retail environment.
European Retail net sales for the 2007 fiscal first quarter
ended Dec. 31, 2006, increased US$13 million, or 10%, to US$153
million, from US$140 million for the same period in 2006.  

European Retail division same store sales in local currency were
unchanged.  The European Retail division continues to leverage
its premier status, high street locations and brand awareness to
achieve these results.  The European Retail division's results
include sales generated by 499 Holland & Barrett and 32 GNC
stores in the UK, 19 Nature's Way stores in Ireland, and 69
DeTuinen stores in the Netherlands.  During the fiscal first
quarter ended Dec. 31, 2006, the European Retail division opened
two stores and at the end of the fiscal first quarter operated a
total of 619 stores.
    
Net sales from Direct Response/Puritan's Pride operations for
the fiscal first quarter ended Dec. 31, 2006 increased US$19
million, or 56% to US$52 million from US$33 million for the
comparable prior period.  The net sales increase reflects a
strong consumer response to a highly promotional catalog offered
in this quarter.  This promotional program proved very effective
as Puritan's Pride received 137,000 more orders than in the
prior like quarter, a 31% increase, and the average order size
increased to US$85 as compared with US$66.  Puritan's Pride
varies its promotional strategy throughout the fiscal year.  
Therefore, in less promotional quarters, Puritan Pride would
anticipate lower results.  Puritan's Pride historical results
reflect this pattern and should therefore be viewed on an annual
and not quarterly basis.
    
Online sales increased to 36% of total Direct Response/E-
Commerce sales.  Puritan's Pride views the Internet as the
future driver of growth and is incorporating new technologies to
expand this business.  NBTY remains the leader in the direct
response and e-commerce sectors and continues to increase the
number of products available via its catalog and Web sites.
    
"We are pleased by the record revenue and profitability attained
in this quarter.  These increases reflect the success of our
ongoing initiatives to further drive sales, increase market
share, enhance profitability and expand our premier leadership
position within the industry.  We continue to strive to grow the
business while controlling costs and increasing long-term
shareholder value and remain confident in the long-term outlook
for NBTY," NBTY chairperson and chief executive officer Scott
Rudolph said.

Headquartered in Bohemia, New York, NBTY, Inc. (NYSE: NTY) --
http://www.NBTY.com/-- manufactures, markets and distributes
nutritional supplements in the United States and throughout the
world.  As of Sept. 30, 2005, it operated 542 Vitamin World
and Nutrition Warehouse retail stores in the United States,
Guam, Puerto Rico, and the Virgin Islands.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 14, 2006,
Standard & Poor's Ratings Services raised its bank loan rating
for NBTY Inc., to 'BB+' from 'BB', and raised the recovery
rating to '1' from '2'.  At the same time, Standard & Poor's
revised its outlook to stable from negative and affirmed the
'BB' corporate credit rating and all other ratings on NBTY.

The '1' recovery rating indicates the expectation of a full
recovery of principal in the event of a default.  Approximately
US$227.4 million of total debt was outstanding at June 30, 2006.




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


DAIMLERCHRYSLER: Del. Gives Incentive Bundle to Chrysler Plant
--------------------------------------------------------------
The state of Delaware has given DaimlerChrysler AG's Chrysler
Group a package of incentives and tax breaks to keep the company
from closing a plant in Newark, Del., Gina Chon of the Wall
Street Journal reports.

The Newark plant makes sport-utility vehicles, has made 80,000
vehicles in 2006, operates one shift a day, and has 2,100
employees.

Chrysler CEO Tom LaSorda is expected to unveil a restructuring
plan on Feb. 14, 2007.

Delaware Governor Ann Minner has signed a bill that will save
employers more than US$30 million.  Gov. Minner hopes that this
will convince Chrysler that the state is serious in saving the
plant and keeping the jobs of 2,100 employees, Ms. Chon said.

                    About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER AG: Schrempp's Resignation Came as No Surprise
--------------------------------------------------------------
BaFin, Germany's financial regulator, outlined in a letter, sent
in 2005 to Stuttgart prosecutors, that DaimlerChrysler AG knew
nearly three weeks before an official announcement that former
Chief Executive Juergen Schrempp was likely to step down,
Reuters relates.

According to reports, the information is pertinent to
shareholders who are suing the company for EUR7 million,
claiming they lost money when they sold DaimlerChrysler shares
just before news leaked out that Mr. Schrempp would resign.  The
July 28, 2005, news led to an 11% stock surge, the company's
biggest intra-day gain ever.

The BaFin letter revealed that a number of people knew that Mr.
Schrempp would leave, weeks before a supervisory board meeting
held on the day they announced his resignation and appointed
Dieter Zetsche as his successor, Reuters states.

"The decision that Schrempp would end his contract at the end of
2005 had been made with strong likelihood on July 10, 2005, at
the latest," the letter discloses.

The regulator "established that DaimlerChrysler should have made
an announcement earlier," said Klaus Rotter, the attorney
representing the investors.

BaFin is investigating whether the company violated rules
requiring timely disclosure, which could mean a fine of up to
EUR1 million, Bloomberg News reports.

"We are completely certain that we met all requirements," said
Ursula Mertzig-Stein, a DaimlerChrysler spokeswoman.  "We
published the information as soon as possible after the decision
was made" for Schrempp to leave.

                  Shareholder Litigation

The DaimlerChrysler shareholder lawsuit is the first since
Germany enacted a law in 2002 that ensures stricter reporting
rules for companies in the country, Bloomberg News states.

Mr. Rotter represents 100 DaimlerChrysler investors worldwide,
including institutional investors and pension funds.  They
comprise shareholders who sold stock between July 1 and July 28,
2005, Bloomberg News relates.

According to reports, the next hearing for the case, which is
being heard at the regional court in Stuttgart, is scheduled for
Feb. 15.  The judge handling the case said in December 2006 that
the matter depends on when information about Mr. Schrempp's
departure was material and probable enough to merit disclosure.

                  About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.  
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices,
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.

                          Outlook

As reported on Oct. 30, 2006, DaimlerChrysler said it expects a
slight decrease in worldwide demand for automobiles in the
fourth quarter and thus slower market growth than in Q4 2005.  
For full-year 2006, the company anticipates market growth of
around 3%. It expects unit sales in 2006 to be lower than in the
previous year (4.8 million units).

On Sept. 15, 2006, DaimlerChrysler reduced the Group's operating
profit target for 2006 to an amount of US$6.3 billion.  Although
the company now has to assume that the profit contribution from
EADS will be US$0.3 billion lower than originally anticipated
because of the delayed delivery of the Airbus A380,
DaimlerChrysler is maintaining this earnings target due to very
positive business developments in the divisions Mercedes Car
Group, Truck Group and Financial Services.


PEABODY ENERGY: Posts 45% Increase in 2006 Earnings
---------------------------------------------------
Peabody Energy reported a 45% increase in full-year earnings to
US$2.29 per share, excluding the effects of the recent Excel
Coal acquisition.

With the acquisition, earnings were US$2.23 per share on net
income of US$600.7 million.

EBITDA increased 24% to US$1,080.4 million for the year.
    
"The Peabody team delivered record results for the fifth
consecutive year.  And in 2007, we are targeting increased
results as we benefit from greater access to high-margin global
coal markets, along with higher realized US prices from sales
contracts signed in recent years.  The international coal
markets are very strong, and we expect US markets to strengthen
in 2007 with the announced industry production cutbacks and a
return to normal electricity generation.  In the near term, we
are managing our US production and capital to match demand,"
said Peabody Energy President and Chief Executive Officer
Gregory H. Boyce.

In the fourth quarter 2006, Peabody Energy completed the
acquisition of Excel Coal, one of Australia's largest coal
companies, to serve rapidly expanding global markets and Peabody
Energy's six-continent customer base.  With Excel Coal, Peabody
Energy acquired more than 500 million tons of proven and
probable reserves to accommodate future expansion.  EBITDA from
international coal activities is anticipated to be as much as
30% of Peabody Energy's total in 2007 and continue to increase
in later years.
    
Full-year 2006 revenues increased 13% over the prior year to a
record US$5.26 billion, on coal sales volume that led the
industry at 248 million tons.  The increase was due to higher
prices and increased volumes in all regions.  Average revenues
per ton for the year improved more than 7% in the US and more
than 6% in Australia.
    
Peabody Energy increased EBITDA from all business activities.  
Contributions from US mining operations grew 3% for the year to
US$857.2 million.

Increased customer demand drove higher realized pricing and
volumes.  EBITDA from Australian operations improved 37% to
US$278.4 million, driven by increased metallurgical coal volumes
and a US$19.7 million fourth quarter contribution from recently
acquired operations.  Trading and Brokerage and Resource
Management contributed a combined US$204.9 million of EBITDA, a
73% improvement over the prior year.
    
Operating profit increased 28% to US$663.1 million last year.  
The 2006 net income totaled US$600.7 million, compared with
prior-year income of US$422.7 million.  The tax benefit of
US$81.5 million for the year resulted from increased valuation
of tax assets due to higher forecasted profitability and the
certainty of sales contracting positions.
    
During 2006, Peabody Energy achieved its second best safety
performance in the company's 123-year history.  The company
received eight awards for safety including, for the second time
in three years, the U.S. Department of Labor Sentinels of Safety
award for the safest US surface mine.  Peabody Energy was
recognized with 14 reclamation awards, including five granted by
the U.S. Department of the Interior.
    
In the fourth quarter 2006, Peabody Energy also joined the S&P
500 index and was named to Forbes "Platinum List of America's
Best Big Companies."

"Growing demand for coal is being driven by rising global energy
needs and increasing interest in energy security.  China may
become a net importer as early as the second half of 2007.  
Europe is taking steps to reinvest in coal.  And the United
States is pursuing significant initiatives to increase its long-
term use of clean coal technologies for electricity generation
and coal conversion applications," said Mr. Boyce.
    
Global coal demand is strong and growing, as coal continues to
fuel the world's leading economies.  Approximately 115 gigawatts
of new coal-fueled electricity generating capacity is scheduled
to come on line around the world over the next three years.  In
its new Annual Energy Outlook, the U.S. Energy Information
Administration projects an additional 156 gigawatts of new US
coal-fueled generation by 2030, which by itself represents more
than 500 million tons of additional coal demand.  EIA has
reaffirmed its forecast that coal's share of the US generation
market will increase to 57% by 2030.  EIA also raised its long-
term natural gas and oil price assumptions, and reduced its
estimate of liquefied natural gas available to the US.
    
Coal-to-gas and coal-to-liquids plants represent a significant
avenue for long-term industry growth. China and India are
developing coal-to-gas and coal-to-liquids facilities.  And
coal-to-liquids technologies are receiving growing bipartisan US
support, as demonstrated by newly introduced CTL bills such as
the "Coal-to-Liquid Fuel Promotion Act" by U.S. Senators Obama
and Bunning.
    
Coal was the fastest growing fuel in the world for each of the
past four years, and Peabody Energy believes this trend
continued in 2006.  Growth in European and Asian markets is
estimated to have more than offset lower weather-related US coal
demand.
     
In reviewing the global coal markets:

     -- The Pacific seaborne market has tightened considerably.  
        China's net exports declined more than 30% in 2006, a
        trend that Peabody Energy expects to continue;

     -- Thermal coal from Australia into Asia remains in high
        demand, and a record number of ships are waiting to load
        in Newcastle.  Australia thermal pricing is strong,
        rising in recent months.  The current index price is
        US$52 per metric ton, which is more than 20% higher than
        the price in October 2006;

     -- China steel production is on pace for 21% growth over
        2005, as China serves most of the growth in global steel
        demand; and

     -- Seaborne metallurgical coal prices for the upcoming
        fiscal year are being settled from a reference price
        near US$100 per metric ton.
    
While near-term US markets are affected by year-end US coal
inventories at generators, which are estimated to be above the
five-year average at 130 to 140 million tons, early indications
suggest that growth in US coal shipments slowed in the second
half of 2006 and declined in December.  A new US EIA outlook for
2007 forecasts a demand increase of more than 20 million tons
and a production decline of more than 30 million tons across the
US.

"Peabody will continue to use its financial strength, global
scope, 10 billion ton reserve base and extensive US and
international trading network as a platform aimed at continued
shareholder value creation.  We are executing a multi-pronged
action plan to deliver improved results by capitalizing on
strong global markets and managing through near-term US market
softness," said Peabody Energy Chief Financial Officer and
Executive Vice President of Corporate Development Richard A.
Navarre.

Key initiatives include:

     -- Expanding internationally where markets and margins are
        strongest.  Peabody is maximizing production at new mine
        developments in Australia.  Operations acquired in the
        Excel Coal transaction are projected to add 15 million
        tons of production in 2007 and up to 20 million tons in
        2008.  Peabody Energy's 2007 Australia production
        includes more than 11 million tons of high-demand
        thermal export coal.  Peabody Energy is also expanding
        its international presence with increased trading
        activities in Australia, China and Europe.

     -- Tightly managing the cost structure.  In 2007, Peabody
        Energy will implement a company-wide mine operations
        process improvement initiative that was successfully
        piloted in 2006.  Peabody Energy also strengthened its
        operating base in 2006 at long-wall operations in
        Australia and Colorado.  And a new dragline and in-pit
        crusher/conveyor at North Antelope Rochelle will lead
        to higher productivity and lower per-ton consumption of
        fuel.

     -- Limiting production growth. Peabody Energy reduced its
        anticipated 2007 production growth by seven million tons
        in the third quarter, and will continue to evaluate
        proper production levels to match market demand.  The
        company now targets 2007 production of 240 to 260
        million tons and sales of 265 to 285 million tons.

     -- Exercising capital discipline.  Peabody Energy
        anticipates capital expenditures comparable with last
        year in the range of US$450 to US$525 million, including
        US$100 million of development capital in 2007 for new
        Excel Coal operations.

     -- Optimizing sales contracting strategies and coal trading
        opportunities.  Peabody Energy uses its contracting
        strategies to layer in profitable agreements at
        appropriate times and levels.  Peabody Energy's
        extensive backlog of business also provides multiple
        opportunities for substitution and structured product
        solutions using its leading trading and brokerage
        capabilities.
   
Peabody is targeting full-year financial results in 2007 that
include earnings per share of US$2.10 to US$2.75 and EBITDA of
US$1,200 million to US$1,450 million.  Quarterly and annual
performance will be sensitive to transportation in the US and
Australia, the ramp-up of operations from Excel, and the timing
of metallurgical coal shipments.
    
Peabody Energy is targeting increased yearly EBITDA at both US
and Australian operations, led by increased volumes and higher
realized pricing.  Targeted realized prices include an estimated
20% in higher Western US revenues per ton, led by a 30% increase
in premium Powder River Basin products, related to the benefit
of contracts signed in recent years.  These results will be
partly offset by approximately US$175 million in EBITDA impacts
primarily related to lower metallurgical coal prices, union
contract-driven labor costs and higher non-cash postretirement
health care expenses.
    
Peabody Energy has five to 15 million tons of expected 2007 US
production unpriced at Dec. 31, 2006, after pricing 12 million
tons of 2007 production in the fourth quarter.  The company has
14 million tons remaining to be priced in Australia.  The
company has 70 to 80 million tons of expected US coal production
unpriced for 2008, along with 20 to 22 million tons of expected
Australia coal production.
    
For the first quarter 2006, Peabody Energy is targeting EBITDA
of US$275 to US$325 million and earnings per share of US$0.25 to
US$0.45.
    
Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues.  Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity.  The company has coal operations in Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 21, 2006,
Moody's Investors Service assigned Peabody Energy Corporation's
proposed US$500 million convertible junior subordinated
debentures a rating of Ba2.  Moody's also revised Peabody's
outlook to stable from negative.  At the same time, Moody's
affirmed Peabody's Ba1 corporate family rating and the Ba1
senior unsecured rating on its existing revolver, term loan and
notes.


PETROLEOS DE VENEZUELA: Meeting with Petroecuador Committee
-----------------------------------------------------------
The new committee overseeing the swapping of Ecuadorian crude
for Venezuelan derivatives will meet with Petroleos de Venezuela
aka PDVSA in Caracas to establish the first exchange, Ecuador's
state-run oil firm Petroecuador said in a statement.

Petroecuador said in a statement that it estimates a first 220-
million-barrel shipment of diesel will arrive at Ecuador's Balao
port in Esmeraldas at the end of February.

Business News Americas relates that Petroecuador's executive
president Carlos Pareja Yannuzzelli established the exchange
committee to study the prospective sale and purchase accords to
be signed with PDVSA.

BNamericas notes that the committee will receive all information
regarding operations of the exchanges and keep Pareja informed
of procedural issues.

The committee will meet with PDVSA monthly, BNamericas states.

                     About Petroecuador

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.


                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


* BDO SEIDMAN: Banco Espirito Files Civil Suit for US$170 Mil.
--------------------------------------------------------------
Banco Espirito Santo International has filed a US$170 million
civil lawsuit against BDO Seidman LLP in Miami-Dade Circuit
Court for negligence and dishonesty for failing to detect fraud
in the defunct E.S. Bankest LLC that ultimately led to Bankest's
collapse, reports said.

BDO Seidman has maintained that it was not negligent in its
audits of E.S. Bankest and has counter sued Banco Espirito.  

Bankest was created in 1998 by the partnership of Banco Espirito
and Bankest Capital Corp. as a factoring firm that buys at a
discount accounts receivable of other companies.

Banco Espirito said that it entered into partnership with
Bankest Capital because BDO Seidman's audits from 1995 to 1996
showed high income, Steven Thomas, Esq., representing Banco
Espirito told jurors this month in an opening statement, Curt
Anderson of the Associated Press reported.

Mr. Thomas added that BDO Seidman missed a red flag when it
mailed 145 letters in one year to companies listed as owners of
Bankest money, and it received no replies, Mr. Anderson further
said.

According to reports, Bankest management and Banco Espirito
executives were the ones who provided false financial documents
and fictitious invoices to accountants of BDO Seidman, Adam
Cole, Esq., representing BDO Seidman countered.

Mr. Cole told jurors that Banco Espirito was having financial
problems in the 90s that led them to the Bankest partnership
expecting an increase in income, Mr. Anderson added.

Banco Espirito's lawsuit compared BDO Seidman's role in Bankest
as that of defunct accounting firm Arthur Anderson's role in
Enron's case.  The Honorable Jose Rodriguez, however, prohibited
any mention of Enron in the trial proper calling it prejudicial,
Patrick Danner of Miami Herald reported.

BDO Seidman said that a verdict against it could threaten its
standing as the world's fifth-largest accounting firm and could
mean loss of jobs to thousands of its accountants, auditors, and
staff, Mr. Danner added.

                 About Banco Espirito Santo

Banco Espirito Santo was founded in Portugal in 1920.  It
expanded its operations to Brazil.

                    About BDO Seidman LLP

BDO Seidman LLP is a national professional services firm
providing assurance, tax, financial advisory and consulting
services to a wide range of publicly traded and privately held
companies.  Guided by core values of integrity, trust,
professionalism, independence and service for almost 100 years,
the firm provided quality service and leadership through the
active involvement of its most experienced and committed
professionals.

BDO Seidman serves clients through 34 offices and more than 300
independent alliance firm locations nationwide.  As a Member
Firm of BDO International, BDO Seidman LLP serves multi-national
clients by leveraging a global network of resources comprised of
601 Member Firm offices in 105 countries.  BDO International is
a worldwide network of public accounting firms, called BDO
Member Firms, serving international clients.  Each BDO Member
Firm is an independent legal entity in its own country.


* Chadbourne & Parke Taps R. Simmonds-Watson as Program Manager
---------------------------------------------------------------
Rachel V. Simmonds-Watson has joined the international law firm
of Chadbourne & Parke LLP as its first Manager of Diversity
Initiatives.

Chadbourne's diversity program involves both recruiting a
diverse workforce and supporting a diverse workplace
environment.  The Firm has, for example, signed the Association
of the Bar of the City of New York's 2003 Statement of Diversity
Principles and taken part in the association's Committee on the
Recruitment and Retention of Lawyers' Fellowship program, which
places minority law school students in clerkships at
participating firms.  Workplace initiatives include networking
meetings, sensitivity training and same-sex domestic partner
benefits.

"Rachel is the ideal professional to fill this important role at
Chadbourne," said Managing Partner Charles K. O'Neill.  "Her
decade of experience in recruiting and diversity will help the
Firm maintain momentum in achieving a diverse workplace."

"Chadbourne has actively supported a range of diversity programs
for traditionally underrepresented groups," added partner
Anthony Roncalli, chair of Chadbourne's Diversity Committee.  
"Rachel will bring a sharper focus to our efforts and enhance
their impact."

Ms. Simmonds-Watson joined Chadbourne from New York University's
School of Law, where she started in 1996.  She most recently
served as Assistant Director, Recruiting and Marketing, in the
Office of Career Services.  Among her responsibilities, Ms.
Simmonds-Watson managed on- and off-campus recruitment programs
for over 1,000 legal employers and 1,400 law students.  She also
worked with employers to establish measurements of progress for
law firms' recruiting practices and diversity initiatives.

Prior to joining New York University, Ms. Simmonds-Watson was
Legal Recruitment Coordinator for Ropes & Gray in Boston and
Recruitment Assistant for Fried, Frank, Harris, Shriver &
Jacobson in New York.  She holds a B.A. degree in international
studies from New York University's School of Continuing and
Professional Studies, where she was a Founder's Day Scholar.

                About Chadbourne & Parke LLP

Chadbourne & Parke LLP -- http://www.chadbourne.com/-- an  
international law firm headquartered in New York City, provides
a full range of legal services, including mergers and
acquisitions, securities, project finance, private funds,
corporate finance, energy, communications and technology,
commercial and products liability litigation, securities
litigation and regulatory enforcement, special investigations
and litigation, intellectual property, antitrust, domestic and
international tax, insurance and reinsurance, environmental,
real estate, bankruptcy and financial restructuring, employment
law and ERISA, trusts and estates and government contract
matters. Major geographical areas of concentration include
Central and Eastern Europe, Russia and the CIS, and Latin
America. The Firm has offices in New York, Washington, DC, Los
Angeles, Houston, Moscow, St. Petersburg, Warsaw (through a
Polish partnership), Kyiv, Almaty, Tashkent, Beijing, and a
multinational partnership, Chadbourne & Parke, in London.


* Fitch Ratings Named Rating Agency of the Year by ISR
------------------------------------------------------
Fitch Ratings has again been named Rating Agency of the Year by
International Securitisation Report.  This is the fifth
consecutive year that the agency has been received the accolade
and the seventh time in eight years.

Collecting the award at a ceremony in London last night, Huxley
Somerville, Head of Structured Finance EMEA, said that 2006 had
been a landmark year for the rating agency's structured finance
business and paid tribute to the agency's structured finance
team.

"2006 saw Fitch launch an unprecedented number of new products
and services for the structured finance market, while the
agency's reputation for superior credit analysis was
maintained," said Somerville.

"The award reflects the outstanding work of the team globally
over the past twelve months coupled with the agency's unwavering
commitment to market leadership."

Launched in October, Fitch subsidiary Derivative Fitch is the
first rating agency to be dedicated exclusively to the credit
derivatives market.  Addressing the unique risks of the market
with ratings, research, analytics and evaluation services,
Derivative Fitch's leadership in structured credit is believed
to be an important factor in the award win.

Other innovation in 2006 included the launch of Fitch's European
Structured Finance Index of Rating Change, Distressed Recovery
Ratings, ABS Performance Update Reports and Vector ABS/ABCP
models, which represent the first time a Monte Carlo simulation
has been applied to consumer ABS and ABCP.

Held annually the ISR awards are recognised as a key event in
the structured finance calendar.


* BOOK REVIEW: Health Plan
--------------------------
Title: Health Plan: The Practical Solution to the Soaring Cost
       of Medical Care
Author:     Alain C. Enthoven
Publisher:  Beard Books
Paperback:  196 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587981238/internetbankru
pt

Since this book was first published in 1980, the problem it
tackles -- the high cost of medical care in this country -- has
become an even more vexing national problem.  No one is more
qualified to take on this subject than the author.

In 1997, the governor of California appointed Mr. Enthoven to be
chairman of the state's Managed Health Care Improvement Task
Force.  Mr. Enthoven also consults for the leading healthcare
provider Kaiser Permanente, and holds leadership positions in
several private and public healthcare organizations.

The main causes of runaway medical costs, which were identified
by Mr. Enthoven in 1980, continue today.  Among the causes are
the growth of medical technology, an aging population, and the
proliferation of physician specialists.  Lax cost controls by
health maintenance organizations and government health agencies
are another cause.

Unlike many other critics, Mr. Enthoven does not advocate free-
market practices in the healthcare field.  He offers an approach
that is more knowledgeable, nuanced, and practical.

The author searches for the elusive goal of formulating a health
plan that takes into account the altruistic desires of U.S.
society to address the needs of all its members, while also
accepting the reality of government regulation, a profit-driven
industry, and a population with varied healthcare needs and
objectives.

Mr. Enthoven names his comprehensive health plan the Consumer
Choice Health Plan.  The Consumer Choice Health Plan is
ambitious and far-reaching, especially considering the inertia
of the present healthcare system and its layers upon layers of
vested interests.

Nonetheless, the author states that his plan is within reach and
sustainable because it "function[s] with existing institutions
operating in new ways."

While healthcare delivery would be kept fully in the private
sector, the government would have a formative role by managing
the enrollment of organizations and companies in the plan on the
basis of compliance with "a system of rules designed to foster
socially desirable competition."  Government would also help
individuals take part in such a plan by offering tax credits and
vouchers "based on both financial need and predicted medical
need."

As the book progresses, one begins to see how the Consumer
Choice Health Plan synthesizes and employs in novel ways parts
of the healthcare system as it presently operates.  Besides the
formative role of government, the plan would involve "fair
economic competition, multiple choice, [and] private
underwriting and management."

Mr. Enthoven's Consumer Choice Health Plan is not radical.  It
calls for altering relationships among existing components of
the health system, giving them new roles and purposes.

The plan does propose one sweeping, though not radical, change,
which is to "shift the basis for healthcare financing from
experience-related insurance serving employee groups to
community-rated financing and delivery plans open to all
eligible persons in a market area."

By shifting the financing of healthcare, providers and consumers
are brought into close, and often direct, contact.  To protect
consumers from fraudulent and inferior health plans, the
government would play a primary role in establishing enrollment
standards and policies.

The different health plans would compete among the respective
consumer groups according to the main qualification that they be
engaged in "socially desirable competition."  Thus, the health
plans that would be available in any market would operate much
like branches of today's corporate health providers.

The government's role, then, would primarily lie in exercising
oversight and enforcement responsibilities.  The result would be
a field of screened health providers offering health plans in a
defined community/market.  The most successful providers would
be those offering the best services and prices.

As reasonable as Mr. Enthoven's recommendations are, he realizes
that they cannot be applied immediately.  Consequently, the
author also offers a series of steps, some of which are options
that assist in fully implementing the plan.

Among these steps are requiring employers to provide employees
choices in medical plans, allowing tax credits for employers and
employees for those plans offering good basic care (rather than
more costly health plans), and working with influential
government officials to reach the goal of the Consumer Choice
Health Plan.

Some of Mr. Enthoven's recommendations have been introduced to
areas of the healthcare system, and have achieved demonstrable,
though limited, improvements.

Many of his recommendations have been embraced by legislators
and policymakers as requisites for a workable national health
plan.  Anyone wishing to have a relevant, productive role in
devising such a plan will want to take this book to heart.

Alain C. Enthoven's career spans more than 40 years in the
public and private sectors, where he has held many top
positions.   During this time, he has been chairman and director
of major healthcare organizations, and he continues to work to
bring positive changes to the healthcare system.


                        ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.

Copyright 2076.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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