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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

          Friday, December 28, 2007, Vol. 8, Issue 256

                          Headlines

A R G E N T I N A

ALAMTEC SA: Proofs of Claim Verification Deadline Is Feb. 28
ARGLUS SA: Proofs of Claim Verification Ends on Feb. 15, 2008
BILLINGHURST BIENES: Claims Verification Deadline Is March 18
BODEGA ALLOCHI: Trustee To File General Report on Aug. 4, 2008
CAFE DEL PILAR: Proofs of Claim Verification Ends March 10, 2008

CUATRO DOS: Proofs of Claim Verification Deadline Is March 7
DANA CORP: Court Confirms Plan of Reorganization
IMAGEN EN SALUD: Trustee Verifies Proofs of Claim Until March 18
INVERGE SA: Proofs of Claim Verification Deadline Is Feb. 5
LOFTY SA: Proofs of Claim Verification Deadline Is Feb. 29

PROYECTOS AUSTRALES: Files Reorganization Petition
QUEBECOR MEDIA: Earns CDN$84.8 Million in Third Quarter
RAYCOL SA: Proofs of Claim Verification Ends on Feb. 14, 2008
TENNECO INC: Completes Realignment of Some Foreign Subsidiaries

* ARGENTINA: S&P Says Projects Need Stable Regulatory Env't


B E L I Z E

CONTINENTAL AIRLINES: Fitch Holds Low B Ratings on Five Certs.


B O L I V I A

* BOLIVIA: Gets US$20 Million Interest-Free Loan from World Bank
* BOLIVIA: Obtains US$20-Million Loan for Management Program


B R A Z I L

BANCO ITAU: May Acquire Banco Bilbao's LatAm Unit
BANCO NACIONAL: Earmarks BRL40.5 Mln for Urbanization Projects
COMPANHIA ENERGETICA: Sao Paulo Stake Sale Boosts Shares
COMPANHIA ENERGETICA: Antonio Brings 12% Internal Rate of Return
FORD MOTOR: Hikes Pay for White-Collared Workers in 2008

GENERAL MOTORS: Resumes Pay Hikes for Salaried Employees in 2008
GENERAL MOTORS: Sells 1 Million Vehicles in China in One Year
MRS LOGISTICA: To Build Campinas-Santos Rail Line w/ Libra Port
NET SERVICOS: Will Purchase Big TV for Up to BRL290 Million
PETROBRAS ENERGIA: S&P Says Recent Actions Won't Affect Ratings

* BRAZIL: Petrobras Reports Oil Production of 2,238,000 bpd
* BRAZIL: Petrobras Unit to Buy 40% Joint Stock for US$423.3 Mln
* BRAZIL: Petrobras Inks Cooperation Deal with Total

* BRAZIL: World Bank Okays US$32.76 Mil. to Fund Urban Dev't
* BRAZIL: Petroleo Brasileiro Buying 40% of Peruvian Unit


C A Y M A N   I S L A N D S

AAA BRADCO: Holding Final Shareholders Meeting Today
ADARI IAM: Final Shareholders Meeting Is Today
ALPAHSIMPLEX GLOBAL: Holding Final Shareholders Meeting Today
AMADEUS INC: Final Shareholders Meeting Is Today
ANNOTEC LIMITED: Proofs of Claim Filing Ends on Dec. 31

AURORA RELATIVE: To Hold Final Shareholders Meeting on Dec. 29
BEAR STEARNS: Barclays Seeks Damages for Fraud & Conspiracy
BEAR STEARNS: Federal Regulators Probe Into Funds' Insiders
BLACK DIAMOND: Will Hold Final Shareholders Meeting on Dec. 30
BRAVO LEASING: Will Hold Final Shareholders Meeting on Dec. 31

BROCKTON CAPITAL: Will Hold Final Shareholders Meeting Today
CANDIANO INC: Proofs of Claim Filing Deadline Is Dec. 31
CASCADE CAPITAL: Final Shareholders Meeting Is Today
CASCADE CAPITAL GLOBAL: Holding Final Shareholders Meeting Today
CELEBRITY IAM: Will Hold Final Shareholders Meeting Today

CHINA ENTERPRISE: Holding Final Shareholders Meeting Today
COMITY IAM: Holding Final Shareholders Meeting Today
COMPOUND CAPITAL: Final Shareholders Meeting Is Today
CORAL IAM: Holding Final Shareholders Meeting Today
DAHLIA IAM: Will Hold Final Shareholders Meeting Today

EASTERN COGEN: Proofs of Claim Filing Deadline Is Dec. 30
ELKA FUNDING: Proofs of Claim Filing Deadline Is Dec. 29
EMOSYN INTERNATIONAL: Holding Final Shareholders Meeting Today
ENCORE LEASING: Will Hold Final Shareholders Meeting on Dec. 31
FREESPIRIT CAPITAL: Proofs of Claim Filing Deadline Is Dec. 31

FREESPIRIT CAPITAL MANAGEMENT: Claims Filing Is Until Dec. 31
FORTROSS HARBOR: Holding Final Shareholders Meeting Today
GLOBAL OPPORTUNITY: Holding Final Shareholders Meeting Today
GLUON FUND: Holding Final Shareholders Meeting Today
GRANADA IAM: Final Shareholders Meeting Is Today

GRIFFIN MANAGEMENT: Holds Final Shareholders Meeting on Dec. 31
HORIZON PORTFOLIO: Holding Final Shareholders Meeting Today
HUNTER GLOBAL: Will Hold Final Shareholders Meeting Today
ILLINOIS MASONIC: Holding Final Shareholders Meeting on Dec. 31
IRR CAPITAL: Will Hold Final Shareholders Meeting Today

KAIROS LONG: Will Hold Final Shareholders Meeting on Dec. 29
KEEL OFFSHORE: Proofs of Claim Filing Deadline Is Dec. 29
LAHINCH LEASING: Will Hold Final Shareholders Meeting Today
LAVENDER IAM: Will Hold Final Shareholders Meeting Today
LYRA PARTNERS: Holding Final Shareholders Meeting Today

LYRA PARTNERS GP: Will Hold Final Shareholders Meeting Today
MAGNOLIA IAM: Holding Final Shareholders Meeting Today
MARKSMEN CASH: Will Hold Final Shareholders Meeting Today
MFM LIMITED: Will Hold Final Shareholders Meeting Today
MIAMI FINANCE: Will Hold Final Shareholders Meeting on Dec. 31

MIASMA IAM: Final Shareholders Meeting Is Today
MORES IAM: Final Shareholders Meeting Is Today
MULTIDIMENSION FUND: Holding Final Shareholders Meeting Today
OASIS IAM: Will Hold Final Shareholders Meeting Today
ORCHID IAM: Holding Final Shareholders Meeting Today

MERLIN IAM: Will Hold Final Shareholders Meeting Today
MLMI CAYMAN: Final Shareholders Meeting Is Today
MLMI CAYMAN NIM: Holding Final Shareholders Meeting Today
MULTINATIONAL ASSET: Will Hold Final Shareholders Meeting Today
PANOPLY IAM: Will Hold Final Shareholders Meeting Today

POLARIS ENERGY: Will Hold Final Shareholders Meeting Today
POLARIS ENERGY OFFSHORE: Final Shareholders Meeting Is Today
POSEIDON INVESTMENTS: Proofs of Claim Filing Deadline Is Dec. 29
PRISM INVESTMENTS: To Hold Final Shareholders Meeting on Dec. 31
PROSPECT FUNDING: Proofs of Claim Filing Is Until Dec. 29

PROSPECT PROPERTY: Proofs of Claim Filing Ends on Dec. 29
QAFAC HOLDINGS: Holding Final Shareholders Meeting Today
QUARTZ IAM: Final Shareholders Meeting Is Today
RBC ALTERNATIVE: Final Shareholders Meeting Is Today
REGENT DEVELOPMENT: Final Shareholders Meeting Is Jan. 1, 2008

RESTRUCTURED CAPITAL: Holding Final Shareholders Meeting Today
REXITER ASIA: To Hold Final Shareholders Meeting on Dec. 29
RUBY IAM: Final Shareholders Meeting Is Today
SOUTH BEACH: Will Hold Final Shareholders Meeting on Dec. 31
SSGA CM: Holding Final Shareholders Meeting Today

SSGA CM: Will Hold Final Shareholders Meeting Today
SSGA CM ABSOLUTE: Holding Final Shareholders Meeting Today
SSGA CM LIMITED: Will Hold Final Shareholders Meeting Today
SSGA EUROPE: Will Hold Final Shareholders Meeting Today
SSGA JAPAN: Final Shareholders Meeting Is Today

SSGA LOW: Final Shareholders Meeting Is Today
SSGA LOW VOLATILITY: Holding Final Shareholders Meeting Today
SSGA LOW VOLATILITY US: Final Shareholders Meeting Is Today
SSGA MARKET: Will Hold Final Shareholders Meeting Today
SSGA US: Will Hold Final Shareholders Meeting Today

SUNSTONE IAM: Will Hold Final Shareholders Meeting Today
TAKUMI HOLDINGS: Will Hold Final Shareholders Meeting Today
TEPUI EQUITY: Holding Final Shareholders Meeting Today
TEPUI MASTER: Will Hold Final Shareholders Meeting Today
TIEDEMANN/FALCONER OFFSHORE: Final Shareholders Meeting Is Today

TIEDEMANN/NEW CENTURY: Final Shareholders Meeting Is Today
TOPAZ IAM: Final Shareholders Meeting Is Today
TOURIST PULBICATIONS: Holding Final Shareholders Meeting Today
TROON FINANCE: Final Shareholders Meeting Is Today
UNIFORTUNE PRINCES: Holding Final Shareholders Meeting Today

VEGA PARTNERS: Will Hold Final Shareholders Meeting Today
VENO FUNDING: Proofs of Claim Filing Deadline Is Dec. 29
WALTON SCDO: Will Hold Final Shareholders Meeting on Dec. 31
WISDOM IAM: Holding Final Shareholders Meeting Today
ZODIAC IAM: Will Hold Final Shareholders Meeting Today


C H I L E

ALDEAVISION SOLUTIONS: Court Approves Plan of Arrangement


C O L O M B I A

BANCOLOMBIA SA: Renews License Contract with American Express
ECOPETROL: Inks NatGas Supply Deal with Petroleos de Venezuela


C U B A

* CUBA: VP Lage Says Crude Production Tops 20 Billion Barrels


D O M I N I C A N   R E P U B L I C

AES GENER: Chamber of Commerce Dumps Firm's Suit Against Sierra


E L   S A L V A D O R

BIO-RAD LABS: Earns US$28 Mil. in Third Quarter Ended Sept. 30


G U A T E M A L A

IMAX CORP: Limited Liquidity Cues S&P to Affirm CCC+ Rating

* GUATEMALA: Must Keep Developing & Strengthening Fin'l Sector


H O N D U R A S

MILLICOM INTERNATIONAL: Will Redeem 4% Convertible Bonds


M E X I C O

CONSTELLATION COPPER: Delays Filing of Third Quarter Financials
PRIDE INTERNATIONAL: Provides Update on Fleet Contract Status
UNITED RENTALS: Moody's Puts B1 Corporate Family Rating
VITRO SAB: Launches New Unit for Outpatient Surgery


N I C A R A G U A

* NICARAGUA: Obtains US$15-Million Financing for Housing Program


P A N A M A

* PANAMA: Gets US$29-Mln Loan to Develop Bocas del Toro Programs


P E R U

DOE RUN: Faces Pollution Lawsuit in Peru
DOE RUN: Unit to Invest US$600,000 in New Equipment


P U E R T O   R I C O

DORAL FINANCIAL: S&P Holds CreditWatch Placement of "B" Rating
PIER 1: Posts US$10-Mil. Net Loss in Third Quarter Ended Dec. 1


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Prices Tender Offer & Solicitations
PETROLEOS DE VENEZUELA: Inks NatGas Supply Contract w/ Ecopetrol


                         - - - - -


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


ALAMTEC SA: Proofs of Claim Verification Deadline Is Feb. 28
------------------------------------------------------------
Hugo Oscar D. Ubaldo, the court-appointed trustee for Alamtec
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 28, 2008.

Mr. Ubaldo will present the validated claims in court as
individual reports on April 16, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Alamtec 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 Alamtec's accounting
and banking records will be submitted in court on May 29, 2008.

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

The trustee can be reached at:

         Hugo Oscar D. Ubaldo
         Tucuman 1577
         Buenos Aires, Argentina


ARGLUS SA: Proofs of Claim Verification Ends on Feb. 15, 2008
-------------------------------------------------------------
Silvia Beatriz Jaime, the court-appointed trustee for Arglus
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 15, 2008.

Ms. Jaime will present the validated claims in court as
individual reports on April 15, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Arglus 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 Arglus' accounting
and banking records will be submitted in court on May 5, 2008.

Ms. Jaime is also in charge of administering Arglus' assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

         Arglus S.A.
         Romulo S. Naon 1970
         Buenos Aires, Argentina

The trustee can be reached at:

         Silvia Beatriz Jaime
         Sarmiento 1469
         Buenos Aires, Argentina


BILLINGHURST BIENES: Claims Verification Deadline Is March 18
-------------------------------------------------------------
Daniel Guillermo Contador, the court-appointed trustee for
Billinghurst Bienes Raices S.R.L.'s bankruptcy proceeding,
verifies creditors' proofs of claim until March 18, 2008.

Mr. Contador will present the validated claims in court as
individual reports on April 29, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Billinghurst Bienes 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 Billinghurst Bienes'
accounting and banking records will be submitted in court on
June 10, 2008.

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

The trustee can be reached at:

         Daniel Guillermo Contador
         Tucuman 1657
         Buenos Aires, Argentina


BODEGA ALLOCHI: Trustee To File General Report on Aug. 4, 2008
--------------------------------------------------------------
Susana Elena Prieto y Ana Teresa Cerezzoli, the court-appointed
trustee for Bodega Allochi S.A.'s bankruptcy proceeding, will
present a general report containing an audit of the company's
accounting and banking records in the National Commercial Court
of First Instance in Mendoza on Aug. 4, 2008.

Susana Elena verified creditors' proofs of claim.  The trustee
submitted the validated claims in court as individual reports.

Susana Elena is also in charge of administering Bodega Allochi's
assets under court supervision and will take part in their
disposal to the extent established by law.

The trustee can be reached at:

       Susana Elena Prieto y Ana Teresa Cerezzoli
       Pedro Molina 249, Ciudad de Mendoza
       Mendoza, Argentina


CAFE DEL PILAR: Proofs of Claim Verification Ends March 10, 2008
----------------------------------------------------------------
Pedro Alfredo Valle, the court-appointed trustee for Cafe del
Pilar S.R.L.'s bankruptcy proceeding, verifies creditors' proofs
of claim until March 10, 2008.

Mr. Valle will present the validated claims in court as
individual reports on April 21, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Cafe del Pilar 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 Cafe del Pilar's
accounting and banking records will be submitted in court on
June 3, 2008.

Mr. Valle is also in charge of administering Cafe del Pilar's
assets under court supervision and will take part in their
disposal to the extent established by law.

The trustee can be reached at:

         Pedro Alfredo Valle
         Avenida de Mayo 1260
         Buenos Aires, Argentina


CUATRO DOS: Proofs of Claim Verification Deadline Is March 7
------------------------------------------------------------
Juan Angel Giannazzo, the court-appointed trustee for Cuatro Dos
Servicios Integrales S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until March 7, 2008.

Mr. Giannazzo will present the validated claims in court as
individual reports on April 23, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Cuatro Dos 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 Cuatro Dos'
accounting and banking records will be submitted in court on
June 5, 2008.

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

The debtor can be reached at:

         Cuatro Dos Servicios Integrales S.A.
         Echeverria 2557
         Buenos Aires, Argentina

The trustee can be reached at:

         Juan Angel Giannazzo
         Avenida de Mayo 1370
         Buenos Aires, Argentina


DANA CORP: Court Confirms Plan of Reorganization
------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York has signed an order confirming
Dana Corporation's Plan of Reorganization.  The action paves the
way for Dana's emergence from Chapter 11 reorganization, which
it expects to occur in January 2008, after the closing of the
company's US$2 billion exit financing facility and satisfaction
of other customary closing conditions.

"This is a significant milestone for Dana and all of its
constituents," Dana Chairman and CEO Mike Burns said.  "The
approved plan provides a solid foundation for the new Dana.  We
now look forward to emerging as a focused, solvent company that
is positioned to take advantage of its considerable strengths
and compete successfully in its global markets."

Dana entered Chapter 11 reorganization on March 3, 2006.  During
the ensuing 21 months, the company and its constituents
identified, agreed upon, and won court approval for
approximately US$440 million to US$475 million in annual cost
savings and revenue improvement.  These annual savings were
derived primarily from enhancing its product profitability,
optimizing its manufacturing footprint, reducing labor costs and
benefit changes, eliminating ongoing obligations for retiree
health and welfare costs, and achieving further reductions in
administrative expenses.

"From the outset of this process, we said that fundamental --
not incremental -- change was critical to Dana's future
success," Mr. Burns said.  "I am pleased to say that we have
achieved this goal due in large part to the enormous efforts of
our resilient employees around the world and the talented team
of advisers who have helped bring us to this point.  Similarly,
we are grateful for the support and partnership demonstrated by
many other constituents involved in this very complex process,
including our customers, suppliers, and members of the
communities in which Dana people live and work."

                         About Dana

Headquartered in Toledo, Ohio, Dana Corporation --
http://www.dana.com/-- designs and manufactures products
for every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies.  Dana employs 46,000 people in 28 countries.
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Aug. 31, 2007, the Debtors listed USUS$6,878,000,000 in total
assets and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.  The
Court has set Dec. 10, 2007, to consider confirmation of the
Plan.  (Dana Corporation Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


IMAGEN EN SALUD: Trustee Verifies Proofs of Claim Until March 18
----------------------------------------------------------------
Magdalena de la Quintana, the court-appointed trustee for Imagen
en Salud S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until March 18, 2008.

Ms. de la Quintana will present the validated claims in court as
individual reports on May 6, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Imagen en Salud 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 Imagen en Salud's
accounting and banking records will be submitted in court on
June 17, 2008.

Creditors will vote to ratify the completed settlement plan
during the assembly on Nov. 28, 2008.

The trustee can be reached at:

        Magdalena de la Quintana
        Cerrito 1136
        Buenos Aires, Argentina


INVERGE SA: Proofs of Claim Verification Deadline Is Feb. 5
-----------------------------------------------------------
Lydia Elsa Albite, the court-appointed trustee for Inverge
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 5, 2008.

Ms. Albite will present the validated claims in court as
individual reports on March 19, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Inverge 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 Inverge's accounting
and banking records will be submitted in court on May 6, 2008.

Ms. Albite is also in charge of administering Inverge's assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

         Inverge S.A.
         Pasaje del Carmen 716
         Buenos Aires, Argentina

The trustee can be reached at:

         Lydia Elsa Albite
         Tacuari 119
         Buenos Aires, Argentina


LOFTY SA: Proofs of Claim Verification Deadline Is Feb. 29
----------------------------------------------------------
Oscar Reynaldo Paez, the court-appointed trustee for Lofty
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 29, 2008.

Mr. Paez will present the validated claims in court as
individual reports on April 17, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Lofty 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 Lofty's accounting
and banking records will be submitted in court on May 30, 2008.

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

The trustee can be reached at:

         Oscar Reynaldo Paez
         Juana Manso 1666
         Buenos Aires, Argentina


PROYECTOS AUSTRALES: Files Reorganization Petition
--------------------------------------------------
Proyectos Australes S.R.L. has requested for reorganization
approval after failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Proyectos Australes to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

The case is pending in the National Commercial Court of First
Instance in Buenos Aires.

The debtor can be reached at:

           Proyectos Australes S.R.L.
           San Martin 1009
           Buenos Aires, ARgentina


QUEBECOR MEDIA: Earns CDN$84.8 Million in Third Quarter
-------------------------------------------------------
Quebecor Media generated net income of CDN$84.8 million in the
third quarter of 2007, compared with CDN$46.6 million in the
same quarter of 2006.  The CDN$38.2 million increase was mainly
due to the CDN$58.4 million increase in operating income.

Quebecor Media Inc. reported third quarter 2007 revenues of
CDN$834.6 million, a CDN$116.0 million increase.  All of
Quebecor Media's business segments posted higher revenues.
Quebecor Media's operating income increased by CDN$58.4 million
to CDN$253.6 million in the third quarter of 2007, mainly
because of higher operating income in the Cable segment, as well
as increases in Newspapers and Broadcasting.

"Quebecor Media continued growing its revenues, operating income
and net income in the third quarter of 2007," said Pierre Karl
Peladeau, president and chief executive officer of Quebecor Inc.
"The strong performance was spearheaded by the Cable segment,
which once again posted substantial increases in the customer
base for its cable telephone, Internet access and digital cable
television services.  The Newspapers and Broadcasting segments
also improved their operating results."

                    Year to Date Results

Quebecor Media's year to date revenues increased by
CDN$246.6 million to CDN$2.40 billion.  All of Quebecor Media's
business segments without exception reported higher revenues.
Operating income rose by CDN$115.4 million to CDN$676.7 million,
mainly because of higher operating income in the Cable segment,
as well as increases in Broadcasting, Leisure and Entertainment
and Newspapers.  Excluding the impact of the consolidated stock
option expense, the increase in year to date operating income
was 24.4%, compared with 8.0% in the same period of 2006.

Year to date net income was CDN$214.7 million, compared with a
CDN$72.6 million net loss in the same period of 2006.  The
company attributed the CDN$287.3 million improvement primarily
to the favourable impact on the analysis of the 2007 numbers of
the recognition in the first nine months of 2006 of a
CDN$342.1 million loss on debt refinancing.  The CDN$115.4
million increase in operating income was also a factor in the
improvement.

At Sept. 30, 2007, the company's consolidated balance sheet
showed CDN$7.36 billion in total assets, CDN$4.99 billion in
total liabilities, and CDN$2.37 billion in total stockholders'
equity.

                    About Quebecor Media

Quebecor Media Inc., a subsidiary of Mortsel, Belgium-based,
Quebecor Inc. -- http://www.quebecor.com/-- owns operating
companies in numerous media-related businesses: Videotron Ltd.,
a cable operator in Quebec and a major Internet Service Provider
and provider of telephone and business telecommunications
services; Sun Media Corporation, Canada's chain of tabloids and
community newspapers; TVA Group Inc., operator of French-
language general-interest television network in Quebec, a number
of specialty channels, and the English-language general-interest
station Sun TV; Canoe Inc., operator of a network of English-
and French-language Internet properties in Canada; Nurun Inc., a
major interactive technologies and communications agency with
offices in Canada, the United States, Europe and Asia; companies
engaged in book publishing and magazine publishing; and
companies engaged in the production, distribution and retailing
of cultural products, namely Archambault Group Inc., chain of
music stores in eastern Canada, TVA Films, and Le SuperClub
Videotron ltee, a chain of video and video game rental and
retail stores.

Headquartered in Montreal, Canada, the company has global
facilities in India, France and Argentina.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service rated Quebecor Media
Inc.'s US$700 million add-on senior unsecured note issue B2.
Ratings on the underlying 7.75% senior unsecured notes due in
March of 2016 were affirmed at the same B2 level.  At the same
time, QMI's Ba3 corporate family rating and stable ratings
outlook were affirmed.


RAYCOL SA: Proofs of Claim Verification Ends on Feb. 14, 2008
-------------------------------------------------------------
Jorge Basile, the court-appointed trustee for Raycol S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Feb. 14, 2008.

Mr. Basile will present the validated claims in court as
individual reports on March 27, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Raycol 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 Raycol's accounting
and banking records will be submitted in court on May 8, 2008.

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

The trustee can be reached at:

         Jorge Basile
         J. E. Uriburu 782
         Buenos Aires, Argentina


TENNECO INC: Completes Realignment of Some Foreign Subsidiaries
---------------------------------------------------------------
Tenneco Inc. has completed the realignment of some of the
company's foreign subsidiaries, a move designed to align
the company's U.S. and European assets and revenues with
liabilities and expenses in the appropriate local currencies.

The company has formed a Luxembourg holding corporation, which
has become the owner of certain key European entities.  The
realignment will also provide opportunities to reduce the
company's cash taxes by about US$4 million annually and allow
Tenneco to accelerate the use of its U.S. net operating losses.

The realignment of the European ownership structure is another
step in Tenneco's financial strategy toward earning an
investment grade debt rating.  On Nov. 30, 2007, the company
completed the refinancing of a portion of its 10-1/4% senior
secured notes, due in 2013, with 8-1/8% senior unsecured notes
due in 2015.

This refinancing reduces interest expense by approximately
US$3 million annually.  The subsequent European ownership
structure realignment will allow Tenneco to shift a portion of
its debt to Europe, which will better match the company's
liabilities and expenses with its European assets and revenue.

The company's European operations have improved since the
original debt structure was established when the company became
independent in 1999.  The European revenue growth and improved
profitability give the company flexibility to align its debt
with its operations.

"We are very pleased to complete these transactions, which
represent strategic steps in our transition from a highly
leveraged company to achieving an investment grade rating,"
Gregg Sherrill, Tenneco chairman and CEO, said.  "This European
structure change allows us to more appropriately apportion our
debt."

"Completing the refinancing in such a tough financing
environment reflects investor confidence in Tenneco's financial
position and long-term growth potential," Mr. Sherrill added.
"Tenneco is well-positioned to generate significant growth in
our emissions control business over the next five years, and
beyond, as vehicle emissions standards tighten worldwide."

Tenneco expects to record non-cash income tax charges of $66
million in fourth quarter 2007 related to the realignment, which
will generate U.S. taxable income and utilize a portion of the
U.S. net operating losses.

                      About Tenneco Inc.

Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket.  Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products.  The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium.  The company has
approximately 19,000 employees worldwide.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to
Tenneco Inc.'s new senior unsecured notes due 2015.  The new
notes replace a portion of the company's existing US$475 million
in 10.25% senior secured second-lien notes for which the company
is tendering.  Fitch said the rating outlook is positive.


* ARGENTINA: S&P Says Projects Need Stable Regulatory Env't
-----------------------------------------------------------
Standard & Poor's Ratings Services said in an article titled "In
The Argentine Mining Industry, Growing Global Demand Should
Trump Financing Obstacles that mining is financially risky,
mainly because of the large investments required and the
inherent volatility of metal prices.  Standard & Poor's said
that to be financially feasible and economically sustainable,
mining projects require a relatively stable regulatory
environment, access to long-term funding, and relatively high-
quality ore deposits.  Although regulatory stability and
financing availability are both challenges for the Argentine
mining industry, strong global demand should continue to foster
industry development.

Although the challenges the industry faces continue to be
considerable, the high potential of mining in the Republic of
Argentina -- the aggregate estimated investment yet to be
deployed is about 3% to 4% of 2007's estimated GDP -- should
likely attract both private investment and more favorable
regulation, both of which will sustain continuous sector growth.

The safety risks that miners face daily are well known.
However, mining is also financially risky, mainly because of the
large investments required and the inherent volatility of metal
prices.  As a result, to be financially feasible and
economically sustainable, mining projects require a relatively
stable regulatory environment, access to long-term funding, and
relatively high-quality ore deposits.  Although regulatory
stability and financing availability are both challenges for the
Argentine mining industry, strong global demand should continue
to foster industry development.

The Republic of Argentina is, by global standards, a relatively
small producer of precious metals, with only 1.4% of the
worldwide gold output, 0.7% of silver, and 1.2% of copper in
2006.  However, local production has been increasing steadily
over the past nine years, with gold growing at a 33% compound
annual rate, silver 11%, and copper 22%.

A relatively stable and favorable regulatory framework has
nurtured Argentina's mining industry.  The 1992 Mining
Investment Act No. 24.196 regulates all activities of the mining
value chain; it includes a set of tax benefits to attract
investments.  However, as a result of Argentina's volatile
economic history, mining and other industries that require long-
term investments are still cautious.  Nevertheless, the strong
growth in Asian economies, which started in 2003, has strained
supply and made commodity prices soar.  Metal prices were no
exception.  In the first nine months of 2007, the average prices
for gold, silver, and copper, surpassed the average levels for
1987-2001 by 36%, 86%, and 220%, respectively.

With the current high prices, mining projects have started to
flourish all over the world.  Argentina, with its attractive
regulatory framework and good mining resources, is no exception.
It has been the focus of an array of new investments and
exploration activity.

With an aggregated market capitalization of more than US$100
billion, the main industry producers of gold, silver, and copper
in Argentina are Switzerland-based Xstrata PLC (through its
subsidiary, Minera Alumbrera Ltd.) and Canada-based Barrick Gold
Corp.  The former has operated the Project Bajo La Alumbrera in
Catamarca since 1997, with a total investment of US$2.4 billion.
The latter exploits the Veladero project in San Juan with a
total investment of about US$880 million

Relatively new (junior) public companies will carry out many of
the new mining investments. These companies are listed on stock
exchanges such as the Toronto Stock Exchange and the Australian
Stock Exchange, where there is significant mining investment
activity and where these companies raise capital, mainly through
public offerings of new equity.

Along with proven and probable reserves announcements, there is
vast exploration activity, mainly in the Provinces of Salta,
Catamarca, San Juan, Mendoza, Rio Negro, Chubut, and Santa Cruz.

As mentioned, stable regulations and adequate long-term
financing are important factors for the development of mining
projects.  These two drivers are still far from being available
in Argentina, but the industry's momentum could carry it through
the defiant local business landscape.

Despite a relatively stable regulatory framework, in late 2007,
Argentine authorities announced the elimination of a tax
exemption for mining exports.  This decision introduces a new
tax for exports of 5% for pre-concentrates and 10% for
concentrates.  It directly affects the profitability of current
and planned mining operations.

Ideally, it is better to raise funds for mining projects locally
because local investors have better knowledge than foreigners of
regulatory, industrial, and financial risks.  However, in
Argentina, local financing of mining projects is still not
possible.  Mining green-fields are usually financed through a
combination of equity and long-term debt.  The Argentine equity
market is small and quite concentrated, and there is little
background in mining financing. Although the tenor of available
financing has increased since the sovereign came out of default
in 2005, long-term debt for green-field developments is still
scarce and expensive.

Another important factor that constrains local funding of mining
projects in Argentina is country risk.  The rating on Argentina
(B+/Stable/B) is the lowest among Latin American countries with
significant mining activity: Republic of Chile (A+/Stable/A-1),
United Mexican States (BBB+/Stable/A-2), Federative Republic of
Brazil (BB+/Positive/B), and Republic of Peru (BB+/Positive/B).
(All ratings are foreign currency credit ratings as of
Dec. 26, 2007.)  The relatively low sovereign credit rating on
Argentina reveals a set of risks derived from factors such as a
relatively poor investment environment.

Although the challenges the industry faces continue to be
considerable, the high potential of mining in Argentina -- the
aggregate estimated investment yet to be deployed is about 3% to
4% of 2007's estimated GDP -- should likely attract both private
investment and more favorable regulation, both of which will
sustain continuous sector growth.




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


CONTINENTAL AIRLINES: Fitch Holds Low B Ratings on Five Certs.
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on these enhanced
equipment trust certificate transactions backed by payments from
Continental Airlines:

          Continental Airlines, FEATS Series 2000

  -- Class A downgraded to 'BBB+' from 'A-';
  -- Class B affirmed at 'B+'.

     Aircraft Indebtedness Repackaging (AIR) Trust 1998-1

  -- Class A affirmed at 'BB';
  -- Class B affirmed at 'B'.

     Aircraft Indebtedness Repackaging (AIR) Trust 1998-2

  -- Class A affirmed at 'BB';
  -- Class B affirmed at 'B'.

EETCs are hybrid corporate-structured debt obligations in which
payments on the notes are effectively supported by the
underlying corporate entity, while structured elements of the
transaction provide protection to investors in the event of
issuer default.  As such, Fitch's ratings on EETC transactions
begin with the underlying Issuer Default Rating of the issuing
entity and are adjusted upward depending on the structural
enhancements in place.

As of Dec. 14, 2007, Fitch affirmed Continental Airlines' 'B-'
IDR with a Stable Outlook.  The downgrade on the FEATS series
2000 class A tranche reflects Fitch's concern surrounding the
value of certain collateral supporting that transaction,
specifically the 767-224ER aircraft.  As value deterioration on
those aircraft is expected to outpace class A amortization in
the coming years, class A leverage may increase moderately.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,100 daily departures throughout Belize, Mexico, Europe
and Asia, serving 154 domestic and 138 international
destinations including Honduras and Bonaire.  More than 400
additional points are served via SkyTeam alliance airlines.
With more than 44,000 employees, Continental has hubs serving
New York, Houston, Cleveland and Guam, and together with
Continental Express, carries about 67 million passengers per
year.




=============
B O L I V I A
=============


* BOLIVIA: Gets US$20 Million Interest-Free Loan from World Bank
----------------------------------------------------------------
The World Bank Board of Directors has approved a US$20 million
interest-free credit directed to rural areas of great productive
potential and, at the same time, the poorest in Bolivia.  The
project will be supplemented by an additional US$11 million
provided by Denmark and US$4.5 million provided by Switzerland.

"The project's area of impact covers 182 municipalities, 71 of
which will be backed with an improvement in rural transport
links, while the remaining 111 will receive a more integral
support in all aspects related with productivity," said David
Tuchschneider, World Bank resident representative in Bolivia.

The 111 municipalities selected for a visible improvement of
their productive capacities have been chosen because of their
high poverty levels, job creation potential, and high share of
indigenous population.

It is estimated that 14 percent of the Bolivian population lives
in this area.  More than 4,000 rural communities live there,
belonging to the Aymara, Quechua, Guarani, Chiquitano and Mojeno
people.  It is anticipated that the Project will serve at least
230,000 people and 38,600 households.

The 71 municipalities eligible for investments in their
transportation network were chosen because of their successful
performance during the previous phase of this project, known as
Participatory Rural Investment Project.  These municipalities
account for 10 percent of the country's population, which
translates into 856,000 people, of which 83 percent are poor.
This means that the project will reach 24 percent of Bolivians,
most of them marginalized from the country's mainstream economic
activity.  The project also includes technical assistance and
the strengthening of management capacities in the involved
municipalities.  This will ensure its sustainability beyond
2013, the expected closing year.

The US$20 million credit from the International Development
Association is repayable in 35 years, including a 10-year grace
period.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services has assigned
B- long-term sovereign local and foreign currency ratings and C
short-term sovereign local and foreign currency ratings on
Bolivia.


* BOLIVIA: Obtains US$20-Million Loan for Management Program
------------------------------------------------------------
The World Bank Board of Directors has approved a US$20 million
interest-free credit for Bolivia in order to launch, starting in
February 2008, a sustainable management of resources program in
the Bolivian region of Lake Titicaca.

The concessionary credit amounting to US$20 million will be used
to promote tourism, protect the archeological and cultural
heritage of the area, provide basic services for the local
population and strengthen the management capacity of local
governments.  The set of measures to be taken up to May 2013 are
aimed at mitigating the severe water pollution that results from
debris and wastes disposed into the lake by the communities
surrounding Lake Titicaca.  The project seeks to achieve an
integral impact on all economic activities around the lake in
order to activate and promote the area's development as well as
a forward-looking perspective into it.

"The project's beneficiaries will be about 150,000," said David
Tuchschneider, World Bank resident representative in Bolivia.
These are residents of several localities whose environmental
impact falls on Lake Titicaca, and who will soon have access to
drinking water, and to solid waste collection and treatment
services.

Tuchschneider added "the project is expected to improve the
water quality of Lake Titicaca and the living standard of the
communities surrounding the lake."

The project will assist those same communities, whose life is
intricately linked to the lake, in building a common vision for
their natural habitat's future, in this way reinforcing their
connection with nature, history and the region's prospects.

The project contains these components:

   1. Support Tourism Development and Cultural Preservation

      This component will support activities to promote local
      and tourism-related infrastructure investments to attract
      more visitors.  Local communities living within the Lake
      Titicaca Basin are expected to become the main actors in
      this process, which involves an active role for
      municipalities, but also for communities.  At the same
      time, archaeological sites in the region will be
      preserved, including Isla del Sol, Isla de la Luna and
      Copacabana.  Another subcomponent involves supporting
      productive projects.

   2. Basic Services

      One of the project's goals is to improve the quality of
      life of the people in the region in order to abate
      pollution and improve solid waste management.  The
      construction of sewage systems will be financed in five
      cities: Copacabana, Tiquina, Achacachi, Tiwanacu, and
      Viacha.  Something similar will be done with solid waste
      collection, which will improve human health and also
      release the lake from part of the environmental burden
      that it currently supports.

   3. Institutional Strengthening

      Given the Project's restricted timeline (until 2013),
      institutions and authorities are expected to face their
      own challenges in the future without the need for external
      help.  Therefore, the management capacity of the Vice
      Ministry of Tourism, the cities' town halls, and the
      Prefectura of the La Paz Department will be enhanced.
      Similarly, a permanent information base on the Lake will
      be built in order to better inform policy decisions.  For
      instance, this means preparing an annual report on the
      progress and needs of the area, which will be called "The
      State of the Lake."

The US$20 million loan from the International Development
Association is repayable in 35 years, including a 10-year grace
period.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services has assigned
B- long-term sovereign local and foreign currency ratings and C
short-term sovereign local and foreign currency ratings on
Bolivia.




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


BANCO ITAU: May Acquire Banco Bilbao's LatAm Unit
-------------------------------------------------
Banco Itau Holding Financeira SA plans to acquire the Latin
American unit of Banco Bilbao Argentaria SA in a transaction
valued less than US$100 million, Bloomberg News reports.

According to the same paper, Banco Itau disclosed the plan in a
regulatory filing after O Estado de S. Paulo reported about the
deal and estimated it to cost up to US$1 billion.

"Itau is prepared for interesting opportunities that might
appear," Chief Executive Officer Roberto Setubal was quoted by
Bloomberg as saying.  "The current crisis may lead to
possibilities of acquisitions abroad at a more convenient
price."

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA(Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Banco Itau Holding Financiera S.A.:

   -- Foreign currency IDR at 'BB+'; Outlook to Positive from
      Stable;

   -- Local currency IDR at 'BBB-'; Outlook to Positive
      from Stable; and

   -- National Long-term rating at 'AA+(bra)'; Outlook to
      Positive from Stable.


BANCO NACIONAL: Earmarks BRL40.5 Mln for Urbanization Projects
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's director
of Social Inclusion, Elvio Gaspar, has signed, on Dec. 20, in
the main parlor of the Municipal Administrative Center, together
with the mayor of Caxias do Sul, Jose Ivo Sartori, BRL40.5
million contract.  The funds are destined for execution of the
Integrated Multisectorial Project, in low-income areas, for
interventions in urbanization and implementation of basic and
social infrastructure.

The financing is under the scope of the Accelerated Growth
Program, which requires its disentailment and contracting, still
in 2007, according to resolution by the City Ministry.

PMI was created by BNDES so that actions are not only restricted
to improving the housing conditions of the low-income areas.
The initiative encompasses the whole city, fulfilling needs that
affect all the population such as draining, environmental
sanitation, besides recuperation and revitalization of degraded
areas.  The program is characterized for being a set of actions
by municipal agents in different sectors working together to
contribute with structural solutions for urban centers.

For this project, specifically, the initiatives in the area of
urban infrastructure comprise investments around BRL22.7 million
for implementing waterways, food chains, besides road opening,
enlarging and paving in various communities in the central
region and city surroundings.

The project also foresees the relocation of 180 families in the
neighborhoods of Canyon, Marechal Floriano and Kayser, besides
implementing an infrastructure in Campos da Serra area, with 596
lots, keeping those families safe from floods.  BRL18.1 million
will be invested in this action.

For the waterway system, BRL5.7 million were allotted for the
construction of two integration and transhipment stations.
Sports and recreation areas will be created.  This item will
contemplate the reform and improvements to Parque Monumento
Nacional ao Imigrante and Parque da Lagoa, where BRL1.3 million
will be invested.  Forecast: the building of parking and
bathroom areas, restoration of lighting and sidewalks at the
parks.

The expectation is that the investments will directly benefit
the 180 relocated families to be reset, who will be leaving
their current substandard housing, and another 596 families who
will receive lots for construction of their own houses, totaling
778 families to be directly benefited and an estimated three
thousand families to be indirectly benefited.

Besides this, it is worth mentioning that investments in urban
infrastructure will improve the quality of life not only of the
population resident in the areas of intervention, but all over
the city.  The improvements made in these areas will facilitate
access to the communities and serve as a link among them,
facilitating access to downtown.

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

                        *     *     *

Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's, and a BB+ long-term foreign issuer
credit rating from Standards and Poor's.  The ratings were
assigned in August and May 2007, respectively.


COMPANHIA ENERGETICA: Sao Paulo Stake Sale Boosts Shares
--------------------------------------------------------
Companhia Energetica de Sao Paulo said in a regulatory with the
local stock exchange that the government has decided to sell its
controlling stake in the company, a news that received a
positive response from investors.

An auction will be held in the first quarter of 2008 for the
voting and non-voting shares that the Sao Paulo government is
holding, Bloomberg News relates, citing the company's filing.

The sell-off, according to Reuters, is part of the government's
move to privatize the electricity firm.  The company's shares
gained after the announcement was made.  Its voting stocks rose
20.5% on Dec. 26, while preferred shares gained 13.7%, Reuters
says.

The Sao Paulo state holds a total of 95% of ordinary voting
shares and 18% of class B preferred shares, which translates to
a 43.3% stake in Companhia Energetica.

The shares will be sold at about BRL60 per share, for a total of
US$3.4 billion, Bloomberg says.  Reuters cites local media to
estimate the share price at BRL45 (US$25) per share.

Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo.  CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through Sept. 30,
2006.

As reported in the Troubled Company Reporter-Latin America on
Oct. 10, 2007, Standard & Poor's Ratings Services has raised its
ratings on electricity generator Companhia Energetica de Sao
Paulo, including its corporate credit rating to 'B' from 'B-'.
At the same time, S&P raised its Brazil national scale ratings
on CESP to 'brBBB-' from 'brBB'.  S&P said the outlook remains
positive on both scales.


COMPANHIA ENERGETICA: Antonio Brings 12% Internal Rate of Return
----------------------------------------------------------------
Companhia Energetica de Minas Gerais Chief Executive Officer
Djalma Bastos de Morais said in a Web cast that the 3.15-
gigawatt Santo Antonio hydro plant in the Amazon region would
provide its owners with a 12% internal rate of return.

Mr. Morais commented to Business News Americas, "The Santo
Antonio hydro plant will add value to our shareholders and our
participation has been approved by the company's board, as it
meets Cemig's [Companhia Energetica] technical and financial
requirements."

According to BNamericas, Companhia Energetica holds a 10% stake
in the Madeira Energia consortium, which placed earlier in
December a BRL78.9 per megawatt-hour offer for the construction
and operation of San Antonio.  The offer was below the BRL122
per megawatt-hour cap.

BNamericas notes that Madeira Energia will sell 70% share in the
energy from Santo Antonio to the regulated market.  The
remaining 30% will be offered to "free clients."

"We will keep our participation in the consortium and we are
even studying increasing our stake in it," Mr. Morais told
BNamericas.

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

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

                        *     *     *

As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG.  The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.


FORD MOTOR: Hikes Pay for White-Collared Workers in 2008
--------------------------------------------------------
Ford Motor Co. and General Motors Corp. will resume salary
increases of white-collared employees in 2008, various reports
say.

The Detroit News relates that after discontinuing pay hikes in
2007, Ford announced that its white-collared workers will get
2.7% wage increases based on business conditions and employee
performance in April.

GM spokeswoman Brenda Rios confirmed that GM has consented to
dipping into the merit fund to give out to workers as salary
raises in the first half of 2008, Sharon Terlep of The Detroit
News reports.  Although, the automaker hasn't disclosed how much
it will release to each worker.

Ford is also mulling shelling out annual bonuses to 54,000
United Auto Workers union workers in 2008 as promised, Staff
writer Sarah A. Webster of the Free Press relates.

In 2006, GM and Ford, the Detroit News says, offered wage hikes
while Chrysler LLC didn't.  Although, this year, Chrysler did,
while GM and Ford didn't.  Chrysler spokesman Kevin McCormick
says he is not sure if the carmaker will have pay increases next
year.

                          About GM

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                         About Ford

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents.  With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The
company provides financial services through Ford Motor Credit
Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3.  Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative.  These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.


GENERAL MOTORS: Resumes Pay Hikes for Salaried Employees in 2008
----------------------------------------------------------------
General Motors Corp. and Ford Motor Co. will resume salary
increases of white-collared employees in 2008, various reports
say.

As reported in the Troubled Company Reporter on Feb. 13, 2006,
GM unveiled new actions to support its ongoing North American
turnaround plan.  The new actions are expected to generate
savings, stem losses, reduce costs and business risks, and
further enhance GM's financial flexibility.  A major part of the
turnaround plan is for GM Chairman and CEO Rick Wagoner and
other senior officers and directors to take pay cuts and for the
company to slash its cash dividends.

GM spokeswoman Brenda Rios confirmed that GM has consented to
dipping into the merit fund to give out to workers as salary
raises in the first half of 2008, Sharon Terlep of The Detroit
News reports.  Although, the automaker hasn't disclosed how much
it will release to each worker.

The Detroit News relates that after discontinuing pay hikes in
2007, Ford announced that its white-collared workers will get
2.7% wage increases based on business conditions and employee
performance in April.

Ford is also mulling shelling out annual bonuses to 54,000
United Auto Workers union workers in 2008 as promised, Staff
writer Sarah A. Webster of the Free Press relates.

In 2006, GM and Ford, the Detroit News says, offered wage hikes
while Chrysler LLC didn't.  Although, this year, Chrysler did,
while GM and Ford didn't.  Chrysler spokesman Kevin McCormick
says he is not sure if the carmaker will have pay increases next
year.

                          About Ford

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents.  With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The
company provides financial services through Ford Motor Credit
Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.

                          About GM

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive.  In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  S&P said the outlook is stable.


GENERAL MOTORS: Sells 1 Million Vehicles in China in One Year
-------------------------------------------------------------
General Motors Corp. became the first global automaker to sell 1
million vehicles in China in a single year today when GM China
Group President and Managing Director Kevin Wale handed the keys
to a Buick Park Avenue to Mr. Zhang Jianping at Shanghai GM's
corporate showroom in Shanghai.

"Becoming the first global manufacturer to sell 1 million
vehicles in China is a demonstration of the strength of our
product, our people and our partnerships," GM Chairman and CEO
Rick Wagoner said.  "China is a very important market, and we're
extremely proud of the contribution we have been able to make to
the growth and development of its automotive industry.  It's
been an extremely beneficial relationship for both sides."

GM sales in China first surpassed 100,000 units annually back in
2002.  Since then, GM sales have enjoyed steady growth, topping
500,000 annual sales in 2005, thanks to its growing lineup of
brands and vehicles.  The milestone million mark featured GM's
best-known and strongest brand in China, Buick.

"I'm extremely honored to be the one millionth customer in 2007
for General Motors," Mr. Zhang said.  "This is my second Buick
and I appreciate the performance, safety and durability of
Buick.  In addition, I was very satisfied with the fuel economy
of my first car.  After comparing other products in the premium
segment for my next car, it made perfect sense to choose the
Park Avenue."

"From day one, GM and our partners have been committed to
continually rolling out new and upgraded models, with specific
engineering done in China for China to satisfy the needs of
Chinese vehicle buyers across the country," Mr. Wagoner added.

This year, GM and its joint venture partners have begun offering
several new products, including the Cadillac SLS luxury business
sedan, Buick Park Avenue premium sedan, Chevrolet Captiva SUV,
all-new Chevrolet Epica intermediate sedan and Wuling Hong Tu
minivan.

According to Wagoner, reaching the new sales mark in 2007 is
especially significant as it is taking place in a year in which
GM has celebrated several milestones in China.  Both Shanghai
GM, the automaker's flagship manufacturing joint venture, and
the Pan Asia Technical Automotive Center (PATAC), GM's
engineering and design joint venture with Shanghai Automotive
Industry Corporation (SAIC), marked their 10th anniversaries
earlier this year.  SAIC-GM-Wuling, GM's mini-vehicle joint
venture, also celebrated its fifth anniversary.

                          About GM

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive.  In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  S&P said the outlook is stable.


MRS LOGISTICA: To Build Campinas-Santos Rail Line w/ Libra Port
---------------------------------------------------------------
MRS Logistica has singed a BRL4-million accord with terminal
operator Libra Port for the construction of a 2.6-kilometer rail
line to connect Libra Port's customs terminal in Campinas to the
Santos port, Brazilian news daily Gazeta Mercantil reports.

Libra Port will make the investment.  MRS Logistica's part of
the deal will come in the form of investments in trains to be
used on the line, Business News Americas says, citing MRS
Logistica's general cargo manager Fernando Poca.  The firm is
investing in rolling stock to support its rising demand.

Mr. Poca told BNamericas that MRS Logistica has handled 35,000
twenty-foot equivalent units on the Campinas-Santos port route
in 2007, about 20% greater compared to last year.  The new
infrastructure will let MRS Logistica double its volume within
five years.

MRS Logistica will also start to transport manganese in
containers from Minas Gerais in 2008, BNamericas notes.

The Campinas-Santos port rail line will launch operations in
February, BNamericas states.

The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country.  The
company mainly transports cargo for its principle shareholders.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 24, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based railroad
company MRS Logistica S.A.  S&P revised the outlook to positive
from stable.


NET SERVICOS: Will Purchase Big TV for Up to BRL290 Million
-----------------------------------------------------------
Published reports say that Net Servicos de Comunicacao will
acquire cable television and broadband provider Big TV.

Business News Americas relates that Net Servicos is still
waiting for authorization from Brazilian telecoms regulator
Anatel.

According to Brazilian news daily Gazeta Mercantil, the value of
the acquisition could be between BRL200 million and BRL290
million.

BNamericas notes that Big TV has strategic investors like
engineering group Alusa and Coax Telecomunicacoes.  Big TV's
coverage extends to:

          * Sao Paulo:

            -- Guarulhos,
            -- Valinhos,
            -- Botucatu,
            -- Jau,
            -- Sertaozinho, and
            -- Maralia;

          * Parana:

            -- Ponta Grossa,
            -- Cascavel,
            -- Cianorte, and
            -- Guarapuava;

          * Algoas:

            -- Maceio; and

          * Paraiba:

             -- Joao Pessoa.

The report says that once Big TV is acquired, Net Servicos "will
add some 107,000 pay television and 56,000 broadband Internet
subscribers to its customer base and a network stretching 3,000
kilometers and covering 409,000 homes."

Net Servicos should have 48% of the pay television market and
18% of the broadband Internet market, and extend its coverage to
91 cities from 79 after it acquires Big TV, Gazeta Mercantil
states.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2007, Moody's Investors Service upgraded Net Servicos
de Comunicacao S.A.'s corporate family rating to Ba2 from B1 on
its global local currency scale and to Aa3.br from Baa2.br on
its Brazilian national scale rating.  Moody's said the rating
outlook is stable.  This rating action concludes the review
process initiated on Oct. 17, 2006.


PETROBRAS ENERGIA: S&P Says Recent Actions Won't Affect Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services reported that its ratings on
Petrobras Energia S.A. (PESA; BB/Stable/--) would not be
affected by the company's recent announcement of several
transactions to rebalance its asset portfolio.

PESA recently announced the sale of 40% of its upstream
operations in Peru to its controlling shareholder Petroleo
Brasileiro S.A. aka Petrobras (BBB-/Stable/--) for about US$423
million.  PESA also announced the acquisition of a 13.72% stake
in El Tordillo and La Tapera-Puesto Quiroga areas in Argentina
for about US$117 million.

Peruvian operations are very profitable and accounted for about
10% of PESA's oil and gas production in the first nine months of
2007.

Standard & Poor's sees these transactions as part of Petrobras'
strategy to optimize its assets portfolio in Latin America, and
they don't change our perception of its commitment and potential
support to its Argentine subsidiary, which is one of the key
determinants in the ratings.  Standard & Poor's expects PESA to
be increasingly focused in Argentina as Petrobras' vehicle in
this country.

Petrobras Energia, S.A. is headquartered in Buenos Aires,
Argentina.  Its majority owner, Petroleo Brasileiro SA, is based
in Rio de Janeiro, Brazil.


* BRAZIL: Petrobras Reports Oil Production of 2,238,000 bpd
-----------------------------------------------------------
Petroleo Brasileiro SA has set another daily oil-production
record in Brazil: 2,238,000 barrels, a mark only eight companies
in the world have reached.  The result was celebrated in a
ceremony attended by president Jose Sergio Gabrielli de Azevedo,
Exploration & Production director Guilherme Estrella, Service
director Renato Duque, and International director, Nestor
Cervero, in addition to executive managers Jose Antonio de
Figueiredo (E&P/South-Southeast), and Solange da Silva Guedes
(E&P/North-Northeast), among others.

"The daily production record, at upwards of 2 million barrels of
oil per day, is an absolutely extraordinary feat.  This mark
puts Petrobras among the world's biggest companies.  We have now
surpassed the self-sufficiency level that is fundamental to
Brazil.  The P-54 going online is a synthesis of all of the work
team's efforts, as they have always worked with a lot of
dedication and love for the company," said director Guilherme
Estrella.

During the visit made to the P-54 plant on Dec. 25, Estrella,
together with the executive managers, uncovered the plate that
celebrated the record and opened the Roncador 63 well, lifting
its first oil.

To achieve this mark, in 2007 alone six new platforms went
online and, at peak production, they will add 590,000 barrels to
the installed capacity (maximum lifting capacity the units were
designed for) in Brazilian fields.  The previous record had been
set on Oct. 23 2006, at 1,912,000 barrels.

Platform P-54, which kicked production off on December 11 in the
Roncador field, in the Campos Basin (RJ), was the latest of the
six units to go online this year.  At top production, foreseen
for the second half of 2008, it will add 180,000 barrels per day
(bpd) to domestic production.

Last November, the company had already started operating two
other large production units: P-52, also in the Roncador field
and with the same total production capacity as the P-54; and
FPSO Cidade de Vitoria, installed in November in the Golfinho
field, Espirito Santo Basin, capable of lifting 100,000 bpd.

In addition to these three units, the FPSO Cidade do Rio de
Janeiro went online in January, capable of lifting 100,000 bpd
in the Espadarte field, in the Campos Basin; the Manati
platform, in the field of the same name, in Bahia, capable of
producing up to 6,000,000 cubic meters of gas per day; and,
in October, the Piranema platform, with capacity to lift 30,000
bpd of light oil, off the Sergipe coast.

              Onshore Production Revitalization

Although more than 80% of the oil Petrobras produces in Brazil
comes from offshore fields, onshore production has an important
role too.  The average onshore field production has hovered over
230,000 barrels per day, a volume that has been being maintained
in the past few years thanks to the new technologies the company
has been developing to increase mature field useful lives.
Furthermore, the company is foreseeing considerable onshore
production growth in the upcoming years.

                    Four New Platforms

The pace at which new oil production systems are going online in
the company's portfolio will continue intense in 2008.  Three
new oil platforms and one gas platform are scheduled for
deployment:

   -- the P-51, in the Marlim Sul field, capable of lifting
      180,000 bpd;

   -- the P-53, in Marlim Leste, also designed to lift 180,000
      bpd, and

   -- FPSO Cidade de Niter¢i, in the Marlim Leste field (Campos
      Basin), at 100,000 bpd.

And, finally, there is also the FPSO Cidade de Sao Mateus, which
will lift gas from the Camarupim field (Esp¡rito Santo Basin)
and was designed to produce 10,000,000 m3 per day.  It must also
be emphasized that the P-51 is the first platform built entirely
in Brazil.

                  About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.  Standard & Poor's
also placed a BBB long-term sovereign foreign currency rating
and an A-3 short-term sovereign local currency foreign currency
recovery ratings and a BBB transfer and convertibility
assessment rating on the country.

Standard & Poor's said the outlook for all the ratings is
positive.


* BRAZIL: Petrobras Unit to Buy 40% Joint Stock for US$423.3 Mln
----------------------------------------------------------------
Petroleo Brasileiro SA has authorized its Petrobras
International Braspetro subsidiary, located in The Netherlands,
to purchase 40% of Petrobras Energia Peru S.A's joint stock for
US$423.3 million.

Petrobras Energia Peru S.A.'s joint stock belongs to Valores
Internacional de Espana S.L, which in turn, is a subsidiary of
Petrobras Energia S.A., headquartered in Argentina.  With the
authorization, control over Petrobras Energia Peru S.A. is now
shared by PESA (59.79%) and PIBBV (40%).

Petrobras Energia Peru S.A.'s main asset is the exploration of
Lot X, in the Talara Basin, where it holds a 100% share, and the
production of 15,000 barrels of oil equivalent per day.
Petrobras Energia Peru S.A. also participates in five
exploration lots that are still in their initial prospecting
phase.

The resources obtained by Petrobras Energia S.A. will allow the
execution of part of its strategic plan, which foresees boosting
its investments in Argentina.

The operation was approved by Petrobras Energia S.A.'s Board,
based on a favorable opinion issued by its Audit Committee,
which took the opinions of two internationally-renowned
independent evaluation companies into account.

                  About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.  Standard & Poor's
also placed a BBB long-term sovereign foreign currency rating
and an A-3 short-term sovereign local currency foreign currency
recovery ratings and a BBB transfer and convertibility
assessment rating on the country.

Standard & Poor's said the outlook for all the ratings is
positive.


* BRAZIL: Petrobras Inks Cooperation Deal with Total
----------------------------------------------------
Petroleo Brasileiro SA and Total E&P Activites Petrolieres have
signed a cooperation agreement on Dec. 21 to evaluate the
exploration, development, and production of oil extracted from
oil shale deposits in specific regions in African and Middle
Eastern countries.  Under the agreement, the companies will
carry out studies, exchange information, and negotiate
concession agreements.  Petrobras' directors Nestor Cervero
(International Area), and Paulo Roberto Costa (Downstream), and
Total's vice-president, Patrick Pouyanne, and its vice-president
for Americas-E&P, Michel Seguin, attended the event.

Petrobras and Total's technical teams will analyze the projects'
viability, including aspects such as the environment, and legal,
technical, and economic issues.  If viability is confirmed and
approved by the respective executive boards, a project
development evaluation will be undertaken, and Petrobras
will be the operator.

The cooperation between the companies will also allow for
technology exchanges.  Petrobras owns the world's most advanced
oil shale oil extraction process, Processo Petrosix(R), and has
an industrial scale unit operating commercially since 1991
producing oil, fuel gas, liquefied gas and other derivatives.
Total, meanwhile, has state-of-the-art oil improvement
technology and deep knowledge of the region where the projects
of interest are located.

The scenario of scarcity and the high oil prices have attracted
attention and investments to new sources of energy, among which
oil shale, the product of which is very similar to crude oils.
Several countries are considering resuming or expanding their
oil shale production units.  The cooperation agreement between
Petrobras and Total follows this global trend and has
significant representation to develop new oil production units
with oil shale processing.

                  About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.  Standard & Poor's
also placed a BBB long-term sovereign foreign currency rating
and an A-3 short-term sovereign local currency foreign currency
recovery ratings and a BBB transfer and convertibility
assessment rating on the country.

Standard & Poor's said the outlook for all the ratings is
positive.


* BRAZIL: World Bank Okays US$32.76 Mil. to Fund Urban Dev't
------------------------------------------------------------
The World Bank Board of Executive Directors approved a US$32.76
million loan to finance the Recife Urban Development and Social
Inclusion Project -- Capibaribe Melhor, representing the second
phase of the Brazil Municipal Lending Program.  The project will
support the upgrading of riverside slums in the city of Recife,
Pernambuco, in Brazil's Northeastern region.

Recife is the fourth largest metropolitan region in Brazil with
a population of 3.3 million.  By 2015, the population of
Metropolitan Recife is projected to increase by an additional
872,000, most of them poor.  In the municipality of Recife
alone, some 660,000 people live in hundreds of informal, low-
income settlements, mainly along the margins of Beberibe and the
Capibaribe rivers.  These areas suffer from recurring floods and
lack of basic services such as drinking water and sewage
collection.

"This project goes much beyond the simple provision of
infrastructure and the immediate reduction in the poor's
vulnerability to disasters," said John Briscoe, World Bank
Director for Brazil.  "It will help the city of Recife create
the long term basis for sustainable and inclusive urban growth.
This includes building the foundations for job creation,
securing property rights for families, and giving the population
voice in all this.  This project is an important element of a
growing World Bank partnership with the people of Pernambuco."

The project will directly benefit over 225,000 inhabitants of
low-income areas, by improving housing, health, education and
employment through more and better urban services.  It will help
the Municipal Government develop its ability to provide
effective and efficient services to this low-income population
in a sustainable way by increasing its capacity in
fiscal/financial management, urban and environmental management,
and the scaling-up of urban upgrading.

"The Capibaribe Melhor project represents the Bank's commitment
with urban issues in Pernambuco and Brazil, and builds on our
experience of almost 30 years helping the Northeast states in
housing and sanitation," said Ivo Imparato, World Bank Task
Manager for the project.  "Capiberibe Melhor complements the
ongoing Prometr¢pole project, which focuses on the Beberibe
basin, to cover both of Recife's major rivers, where many of the
area's informal settlements are located."

Specifically, the project will support actions in three key
areas:

    1. Institutional Development:

       Activities focused on:

          * fiscal management and adjustment;
          * environmental and urban management; and
          * scaling-up capacity.

    2. Integrated Urban Territorial Development:

       Investments aimed at improving the quality of urban
       spaces along the margins of the river, focusing on four
       macro areas of intervention:

          * slum regularization and water supply and
            sanitation; parks and green spaces;
          * macro drainage systems; and
          * increasing accessibility and urban mobility.

    3. Social, Environmental and Economic Development:

       Provision of incentives for the participatory social and
       economic development of the beneficiary communities, and
       awareness-raising of the natural environment of the
       region, through job and income generation assistance and
       environmental and sanitary education, respectively.

This US$32.76 million fixed-spread loan from the International
Bank for Reconstruction and Development to the Municipality of
Recife is guaranteed by the Federative Republic of Brazil and
has a total term of 16.5 years, including 5 years of grace.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.  Standard & Poor's
also placed a BBB long-term sovereign foreign currency rating
and an A-3 short-term sovereign local currency foreign currency
recovery ratings and a BBB transfer and convertibility
assessment rating on the country.

Standard & Poor's said the outlook for all the ratings is
positive.


* BRAZIL: Petroleo Brasileiro Buying 40% of Peruvian Unit
---------------------------------------------------------
Brazilian state-run oil Petroleo Brasileiro SA said in a
statement that it will acquire 40% of its Peruvian unit
Petrobras Energia Peru from Valores Internacional de Espana for
US$423 million.

Business News Americas relates that Argentine Petroleo
Brasileiro subsidiary Petrobras Energia owns Valores
Internacional de Espana.

BNamericas notes that with the acquisition of the stake,
Petrobras Energia Peru is now shared by Petrobras Energia and
Petroleo Brasileiro through its Petrobras International
Braspetro unit in The Netherlands.

"Petrobras Energia Peru's main asset is its exploration project
Lot X, in Peru's Talara basin," BNamericas states.

                  About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.


                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.  Standard & Poor's
also placed a BBB long-term sovereign foreign currency rating
and an A-3 short-term sovereign local currency foreign currency
recovery ratings and a BBB transfer and convertibility
assessment rating on the country.

Standard & Poor's said the outlook for all the ratings is
positive.




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


AAA BRADCO: Holding Final Shareholders Meeting Today
----------------------------------------------------
AAA Bradco Holdings, Ltd., will hold its final shareholders
meeting on Dec. 28, 2007, at 3:30 p.m. at:

             dms Corporate Services Ltd.
             Ansbacher House, 2nd Floor
             20 Genesis Close, P.O. Box 1344
             George Town KY1-1108, Grand Cayman

These agenda will be taken during the meeting:

    1) accounting of the winding-up process; and
    2) giving explanation thereof.

AAA Bradco's shareholders decided on Nov. 26, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

             dms Corporate Services Ltd.
             Attention: Jenny Suto
             Ansbacher House
             P.O. Box 1344, Grand Cayman KY1-1108
             Cayman Islands
             Telephone: (345) 946 7665
             Fax: (345) 946 7666


ADARI IAM: Final Shareholders Meeting Is Today
----------------------------------------------
Adari Iam Limited will hold its final shareholders meeting on
Dec. 28, 2007, at 1:30 p.m. at the registered office of the
company.

These agenda will be taken during the meeting:

    1) accounting of the winding-up process; and
    2) authorizing the liquidator to retain the records of the
       company for a minimum of six years from the dissolution
       of the company, after which they may be destroyed.

Adari Iam's shareholders agreed on Nov. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

            Westport Services Ltd.
            Attention: Bonnie Willkom
            P.O. Box 1111, Grand Cayman KY1-1102
            Cayman Islands
            Telephone: (345)-949-5122
            Fax: (345)-949-7920


ALPAHSIMPLEX GLOBAL: Holding Final Shareholders Meeting Today
-------------------------------------------------------------
Alphasimplex Global Commodities and Currency Offshore Fund,
Ltd., will hold its final shareholders meeting on Dec. 28, 2007,
at 4:30 p.m. at:

               dms Corporate Services Ltd.
               Ansbacher House, 2nd Floor
               20 Genesis Close, P.O. Box 1344
               George Town, Grand Cayman, KY1-1108

These agenda will be taken during the meeting:

    1) accounting of the winding-up process; and
    2) giving explanation thereof.

Alphasimplex Global's shareholders decided on Nov. 26, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               dms Corporate Services Ltd.
               Attention: Jenny Suto
               Ansbacher House, 2nd Floor
               20 Genesis Close, P.O. Box 1344
               George Town, Grand Cayman, KY1-1108
               Telephone: (345) 946 7665
               Fax: (345) 946 7666


AMADEUS INC: Final Shareholders Meeting Is Today
------------------------------------------------
Amadeus Incorporated will hold its final shareholders meeting on
Dec. 28, 2007, at:

               Scotiabank & Trust (Cayman) Ltd.
               3rd Floor, Scotiabank Building
               George Town, Grand Cayman
               Cayman Islands

These agenda will be taken during the meeting:

    1) accounting of the winding-up process; and
    2) authorizing the liquidator to retain the records of the
       company for a period of 20 years from the dissolution of
       the company, after which they may be destroyed.

Amadeus' shareholders decided on Nov. 16, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Anita Rampersad
               Scotiabank & Trust (Cayman) Ltd.
               P.O. Box 501, George Town
               Grand Cayman, Cayman Islands


ANNOTEC LIMITED: Proofs of Claim Filing Ends on Dec. 31
-------------------------------------------------------
Annotec Limited's creditors are given until Dec. 31, 2007, to
prove their claims to Condor Nominees Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Annotec's shareholder decided on Nov. 2, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

          Condor Nominees Limited
          c/o: Barclays Private Bank & Trust (Cayman) Limited
          4th Floor FirstCaribbean House, P.O. Box 487
          George Town, Grand Cayman KY1-1106
          Cayman Islands


AURORA RELATIVE: To Hold Final Shareholders Meeting on Dec. 29
--------------------------------------------------------------
Aurora Relative Value Offshore Fund Limited will hold its final
shareholders meeting on Dec. 29, 2007, at 2:45 p.m. at:

            Avalon Management Limited
            Third Floor, Zephyr House
            Mary Street, P.O. Box 715
            Grand Cayman KY1-1107, Cayman Islands

These agenda will be taken during the meeting:

    1) accounting of the winding-up process;
    2) giving explanation thereof; and
    3) determining the manner in which the books, accounts and
       documentation of the company and of the liquidator should
       be maintained and subsequently disposed.

Aurora Relative's shareholders agreed on Nov. 16, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

            Avalon Management Limited
            Third Floor, Zephyr House
            Mary Street, P.O. Box 715
            Grand Cayman KY1-1107, Cayman Islands


BEAR STEARNS: Barclays Seeks Damages for Fraud & Conspiracy
-----------------------------------------------------------
Barclays Bank PLC has filed a complaint in the U.S. District
Court for the Southern District of New York to seek damages
against Bear Stearns Asset Management Inc., Ralph Cioffi,
Matthew Tannin, Bear Stearns, & Co. Inc., and The Bear Stearns
Companies Inc. for alleged fraud, conspiracy, breach of
fiduciary duties and promissory estoppel.

According to the Complaint, London-based Barclays is the sole
participating shareholder in Bear Stearns High-Grade Structured
Credit Strategies Enhanced Leverage Master Fund, Ltd., which has
been liquidating under the Cayman Islands Companies Law since
July 2007.

Barclays says the Complaint arises from "one of the most high
profile and shocking hedge fund failures in the last decade."

Barclays accuses that BSAM and the senior executives have long
known that the Enhanced Fund and its associated assets were
worth far less than their stated values in the early months of
2007 and were at great risk of further losses.

BSAM allegedly concealed the Funds' failing net asset value from
Barclays and investors in related feeder funds for as long as
possible, instead of revealing the drop in value in, and the
increased risk to, the Enhanced Fund, instead of taking
immediate and effective corrective action to correct the probe,
asserts Lawrence Byrne, Esq., at Linklaters, LLP, in New York,
Barclays' counsel.

The cover-up and failure to respond in accordance with BSAM's
fiduciary duties to Barclays only caused greater losses and a
more spectacular collapse of the Enhanced Fund, Mr. Byrne
further alleges.

Mr. Byrne says Barclays entered into the transaction involving
the Enhanced Fund and invested about US$400,000,000 in the
structure after extensive negotiations with BSAM and the senior
executives who held themselves as having a proprietary,
extraordinarily sensitive and effective risk management system
and as having special access to pricing information and
marketing expertise that would benefit Barclays.

BSAM promised to operate the Enhanced Fund with full
transparency on performance and on pricing to Barclays, Mr.
Byrne adds.  Furthermore, BSAM and Barclays negotiated detailed
investment restrictions, including by asset class and rating
requirements, with which BSAM agreed to comply for Barclay's
benefit.

"In all these respects, [BSAM] entered intentionally into a
relationship in which Barclays placed trust and confidence in
them," Mr. Byrne states.

According to Mr. Byrne, BSAM and the senior executives deceived
Barclays through a series of misrepresentations to:

   (1) secure Barclays' provision of its initial leverage for
       and financial stake in the enhanced fund structure;

   (2) secure a significant increase in Barclays' economic
       commitment to the structure in March 2007; and

   (3) deceive Barclays and keep it in the structure with
       ongoing positive reports about the Enhanced Fund's
       performance, even into mid-June 2007, until Barclays'
       losses had snow-balled.

BSAM failed to employ its purported and promised superior risk
management system and the asserted expert pricing and hedging
techniques to protect Barclays' exposure as leverage
counterparty and sole participating shareholder in the Enhanced
Fund, Mr. Byrne adds.  BSAM and the senior executives also
failed to exercise the duties of care they particularly owed to
Barclays in their actions as the Enhanced Fund's investment
manager, and they failed in their specific fiduciary duties to
deal candidly and fairly with Barclays.

Mr. Byrne also alleges that Bear Stearns and BSAM used the
Enhanced Fund as a place to unload excessively risky or troubled
assets -- subprime-related CDOs -- that could not be sold to
other investors at the prices paid by the Enhanced Fund.  Mr.
Byrne notes that, at the very end of May 2007, BSAM caused the
Enhanced Fund to buy large portions, with a price totaling
almost US$500,000,000, of the six riskiest classes of securities
in a deal that BSAM managed.

Accordingly, Barclays asks the District Court to award it with
punitive and compensatory damages in an amount to be determined
at trial.  Barclays also seek payment of pre-judgment interest
at the maximum rate allowable by law, and reimbursement of
attorneys' fees and expenses.

The Wall Street Journal related that Bar