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

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

          Tuesday, January 29, 2008, Vol. 8, Issue 20

                          Headlines

A R G E N T I N A

ALITALIA SPA: AirOne SpA Taps Seabury Group to Boost Offer
ALLIS-CHALMERS: Bronco Merger Won't Affect S&P's B Credit Rating
ALLIS-CHALMERS: Signs US$437.8M-Merger Deal with Bronco Drilling
ARVINMERITOR INC: Board Declares US$0.10 Quarterly Dividend
ARVINMERITOR INC: Names Barbara Novak VP & Corporate Secretary

BALLY TECHNOLOGIES: Seminole Tribe to Get 2,000 Gaming Machines
DELTA AIR: Reports 4th Quarter & Full Year 2007 Results
FORD MOTOR: Auto Credit Arm Earns US$775 Million in 2007
FORD MOTOR: Inks Final Pact for ACH Driveshaft Business Sale
FORD MOTOR: Posts US$2.7 Billion Net Loss in Fiscal Year 2007

HUNTSMAN CORP: Agrees To Extend Review Period for Hexion Merger
TYSON FOODS: Court Sides with Firm in Poultry Conflict


B A H A M A S

ISLE OF CAPRI: Acquires Remaining 43% Interest in Black Hawk LLC
METROPOLITAN BANK: Moody's Gives Positive Outlook for Ratings


B E L I Z E

CONTINENTAL AIRLINES: Pilots Prepare for Merger Potential


B E R M U D A

VIVUS INT'L: Sets Final Shareholders Meeting for Feb. 20


B O L I V I A

INTERMEC INC: Names Raymond Cronin as RFID VP & General Manager


B R A Z I L

BANCO BRADESCO: Almost Completing Agora Acquisition
BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says
DELPHI CORP: Bankruptcy Court Confirms Chapter 11 Plan
DELPHI CORP: To Sell Steering Business to Platinum Equity
EL PASO: Deciding on Sale of 50% Stake in Pinauna by March

HEXION SPECIALTY: Nods To Extend Review Time for Planned Merger
HEXION SPECIALTY: To Exercise Rights Over Merger Deal Extension
PROPEX: Gets Interim OK to Access BNP Paribas' Cash Collateral
PROPEX INC: Wants Schedules Filing Deadline Extended to April 2
TRW AUTOMOTIVE: Earns US$23 Mln in Third Quarter Ended Sept. 28

XERIUM TECH: Opens Paper Machine Clothing Factory in Vietnam

* BRAZIL: Must Accept New Ecuadorian Contract by March 8
* BRAZIL: Petroleo Brasileiro Bidding for Ecuadorian Project


C A Y M A N   I S L A N D S

BANK OF AYUDHYA: Establishes Used Car Seller Subsidiary
CABLE & WIRELESS: Gives Free Credit to bmobile Clients
ERI GROUP: Holding Final Shareholders Meeting Today
ERI INT'L: Final Shareholders Meeting Is Today
IH INVESTMENTS: Sets Final Shareholders Meeting for Jan. 30

INT'L CONSULTANTS: Proofs of Claim Filing Deadline Is Today
INT'L CONSULTANTS: Holding Final Shareholders Meeting Today
MPC AMETHYST: Will Hold Final Shareholders Meeting on Jan. 30
MPC AMETHYST (GENERAL): Final Shareholders Meeting Is on Jan. 30
MPC JAPAN: Sets Final Shareholders Meeting for Jan. 30

MPC JAPAN FUND: Holding Final Shareholders Meeting on Jan. 30
RC INVESTMENTS: Sets Final Shareholders Meeting for Jan. 30


C H I L E

ROCK-TENN CO: Board Declares US$0.10 Per Share Dividend


C O L O M B I A

QUEBECOR WORLD: Bankruptcy Won't Affect Quebecor Inc. & Units
QUEBECOR WORLD: Taps Richard Kibbe as Conflicts Counsel
QUEBECOR WORLD: Wants Donlin Recano as Claims & Noticing Agent


C O S T A   R I C A

US AIRWAYS: Dion Flannery To Oversee Piedmont & PSA Airlines


E C U A D O R

PETROECUADOR: Gives Oil Firms Until March 8 for New Contracts
PETROECUADOR: Schlumberger, Halliburton & Baker Want Oil Accords


G U A T E M A L A

GOODYEAR TIRE: Unit To Reduce Production at Two Factories


J A M A I C A

NATIONAL COMMERCIAL: Earns J$1.9 Bln. in Quarter Ended Dec. 31
NATIONAL WATER: Chamber Takes Firm To Task Over Pipe Project


M E X I C O

GRUPO MEXICO: Asarco Won't Restart El Paso Copper Smelter
GRUPO MEXICO: Southern Copper Declares US$1.40 Dividend
HASBRO INC: Completes US$77.5-Million Cranium Acquisition
KANSAS CITY: Paying US$5.3125 Per Share Dividend on Feb. 15
MEGA BRANDS: Posts US$11 Million Net Loss in 2007 Third Quarter

MOVIE GALLERY: Blockbuster Not Considering Acquisition
MOVIE GALLERY: Chapter 11 Filing Cues S&P to Withdraw D Ratings
MOVIE GALLERY: Landlords Oppose Disclosure Statement Approval
MOVIE GALLERY: Panel Wants to Extend Deadline to Challenge Liens
INTERSTATE HOTELS: To Manage Two Hotels & Restaurants in Gateway

OCEANIA CRUISES: S&P Raises Corporate Credit Rating to B+ from B
TELTRONICS INC: Sells Telident 911 Assets to Amcom Software
TELTRONICS INC: Sept. 30 Balance Sheet Upside-Down by US$4.4 Mln


P E R U

* PERU: Inks Free-Trade Deal with Canada


P U E R T O   R I C O

ADELPHIA: Court Extends Claims Objection Deadline to May 16
AVIS BUDGET: Weak Economy Cues S&P to Put Ratings on Watch Neg.
MUSICLAND: Panel Wants Best Buy to Disgorge US$145MM in Payments
SEARS HOLDINGS: Gets OgilvyOne as Marketing & Management Partner


V E N E Z U E L A

CERRO NEGRO: Nationalization Cues Moody's to Withdraw Rating
CHRYSLER LLC: Invests US$27 Million in Toledo Machining Plant
CMS ENERGY: Board Increases Dividend Up to US$0.09 Per Share
PEABODY ENERGY: To Invest in GreatPoint Energy Gas Projects
PETROLEOS DE VENEZUELA: Bidding for Ecuadorian Project

PETROLEOS DE VENEZUELA: Conducting Maintenance at Petro Cedeno
PETROLEOS DE VENEZUELA: Moody's Says Debt Won't Affect B1 Rating
PETROLEOS DE VENEZUELA: PDVAL Starts Operations in Carabobo

* VENEZUELA: President Urges SouthAm to Withdraw Int'l Reserves
* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


ALITALIA SPA: AirOne SpA Taps Seabury Group to Boost Offer
---------------------------------------------------------
AirOne S.p.A. has tapped Seabury Group LLC to support its offer
to acquire the Italian government's 49.9% stake in Alitalia
S.p.A., Bloomberg News reports.

AirOne chairman Carlo Toto insisted in mid-January that it
presented more economical offer for Alitalia, noting that its
business plan for the national carrier is supported by "four
among the world's most important banks that are ready to
formalize their commitment immediately should a private
negotiation be initiated."

Alitalia and Italy have selected Air France-KLM SA's non-binding
offer over AirOne's.   

As reported on Jan. 17, 2007, Alitalia andItaly have commenced
exclusive sale talks with Air France-KLM.  The carriers have two
months to reach an agreement, which would be approved by the
government.

Tommaso Padoa Schioppa, Italy's finance minister, has delivered
a letter to Alitalia S.p.A. approving the commencement of
exclusive talks with Air France-KLM.

In its non-binding offer, Air France plans to:

   -- acquire 100% of the shares of Alitalia through an
      exchange offer;

   -- acquire 100% of Alitalia convertible bonds; and

   -- immediately inject at least EUR750 million into
      Alitalia through a capital increase, that will be open to
      all shareholders and be fully underwritten by Air France.

Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700
jobs and defended plans to downsize Alitalia's operations in
Milan's Malpensa airport.

Mr. Spinetta also revealed that should the French carrier
acquire 100% of Alitalia shares, Air France would list itself in
the Milan bourse.

Mr. Schioppa will represent the Italian government during sale
talks and will evaluate whether to sell to the state's majority
stake in Alitalia, Agenzia Giornalistica Italia says.

                       About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9%
of Alitalia.  The company has operations in Argentina.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.

Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.


ALLIS-CHALMERS: Bronco Merger Won't Affect S&P's B Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that the 'B' corporate
credit rating for oilfield services company Allis-Chalmers
Energy Inc. (B/Positive/--) will not be affected by the
company's announced acquisition of Bronco Drilling Co. Inc. for
US$280 million of cash and approximately US$158 million of
Allis-Chalmers common stock.

Allis-Chalmers has secured a bridge loan to finance the cash
part of the acquisition.  The company has not yet announced
permanent financing plans, and the acquisition is not expected
to close until June 2008.  On a pro forma basis, Allis-Chalmers
is expected to generate close to US$300 million of EBITDA on a
run-rate basis.  If the company finances the majority of the
cash portion of the acquisition with debt, debt to pro forma
EBITDA would be approximately 3x.


ALLIS-CHALMERS: Signs US$437.8M-Merger Deal with Bronco Drilling
----------------------------------------------------------------
Allis-Chalmers Energy Inc. and Bronco Drilling Company Inc. have
entered into a definitive merger agreement providing for the
acquisition of Bronco Drilling Company Inc. by Allis-Chalmers
Energy Inc. for approximately US$437.8 million, comprised of an
aggregate of US$280 million in cash; and Allis-Chalmers common
stock having an aggregate value of approximately US$157.8
million.

The number of shares will be based on the average closing price
of Allis-Chalmers common stock for a ten-trading day period
ending two days prior to the closing.  The combined
consideration totals US$16.33 per share for Bronco Drilling, a
21.8% premium to the closing price of Bronco Drilling's common
stock on Jan. 23, 2008, and an 18.2% premium to the past 10
days' average closing stock price of Bronco Drilling.

Allis-Chalmers has received a financing commitment for up to
US$350 million to cover the cash component of the merger
consideration, repayment of assumed Bronco Drilling debt and
transaction expenses.  Allis-Chalmers and Bronco Drilling
anticipate that receipt of the merger consideration will be
taxable to Bronco Drilling's stockholders.

The merger will result in a combined company with an enterprise
value of approximately US$1.4 billion.  The merger agreement
provides for a subsidiary of Allis-Chalmers to merge with and
into Bronco Drilling, with Bronco Drilling surviving as a wholly
owned subsidiary of Allis-Chalmers.

Upon completion of the transaction, it is anticipated that
Allis-Chalmers' stockholders will own approximately 72.1%, and
that Bronco Drilling's stockholders will own approximately 27.9%
of the combined company.

The board of directors of both Allis-Chalmers and Bronco
Drilling have approved the merger agreement.  The transaction is
subject to customary conditions and regulatory approvals and the
approval by stockholders of each of Allis-Chalmers and Bronco
Drilling.

                     Management Comments

"We are very pleased to have reached this agreement with Allis-
Chalmers and believe it presents a compelling opportunity for
our stockholders," Frank Harrison, Bronco Drilling's chairman
and chief executive officer, stated.  "We believe the combined
entity creates a unique investment opportunity for both sets of
stockholders.  The combined company will be a fully-integrated
oilfield service company with diversified business lines,
substantial international exposure and exciting growth
opportunities not currently found in a company of similar size."

"We are very excited about this pending acquisition that is in
conformity with our strategic criteria," Micki Hidayatallah,
chairman and chief executive officer of Allis-Chalmers, said.  
"We expect the combined company to enhance our product offering
and expand our geographic footprint in the domestic and
international markets.  Internationally, Allis-Chalmers will
increase its presence in the North African and Latin American
markets."

"The opportunity to deploy drilling and workover rigs to the
high growing international markets is very compelling," Mr.
Hidayatallah also noted.  "Bronco Drilling is uniquely
positioned to take advantage of this opportunity because of its
in-house capability of converting and rebuilding rigs for
international operations."

"Although demand for land drilling and workover rigs remains
strong in the international markets, there continues to be long
delays in manufacturing and delivery cycles," Mr. Hidayatallah
continued.

"We anticipate the merged company's presence in Mexico, Libya,
Argentina and Bolivia will provide a solid foundation for
international expansion," Mr. Hidayatallah went on to state.    
"Bronco Drilling's management team has built a company in a very
short time frame that has a reputation for excellence in all its
operations."

"The combined company will be a diversified service company that
provides its domestic and international customers with skilled
operators and technologically advanced equipment in a safe
environment," Mr. Hidayatallah expressed.

"Currently, Allis-Chalmers operates internationally in
Argentina, Mexico, and Bolivia," Mr. Hidayatallah also stated.  
"Bronco Drilling has a 25% equity stake in a contract drilling
business in Libya which will operate 33 drilling and workover
rigs."

"We expect the combined company to actively pursue further
international opportunities after the merger," Mr. Hidayatallah
said further.  "We believe we will be able to provide the
domestic and international markets with directional,
underbalanced drilling, coil tubing, drilling and completion
services together with rental equipment as the oil industry
seeks to exploit conventional and unconventional resources both
in the U.S. and overseas."

Micki Hidayatallah will remain as chairman and chief executive
officer of Allis-Chalmers following the merger.

The composition of the board of directors of Allis-Chalmers will
not be changed in connection with the merger.

RBC Capital Markets Corporation is acting as exclusive financial
advisor to Allis-Chalmers and Johnson Rice & Company LLC is
acting as exclusive financial advisor to Bronco Drilling.  
Andrews Kurth LLP is acting as legal counsel to Allis-Chalmers
and Akin Gump Strauss Hauer & Feld LLP is acting as legal
counsel to Bronco Drilling.

                     About Bronco Drilling

Headquartered in Edmond, Oklahoma, Bronco Drilling Company Inc.
(NASDAQ/GM:BRNC) -- http://www.broncodrill.com-- provides  
contract land drilling services to oil and natural gas
exploration and production companies.  The company operates its
drilling rigs in Oklahoma, Kansas, Texas, Colorado and North
Dakota. Its workover rigs are operating in Oklahoma, Texas,
Kansas and New Mexico.  In January 2006, the company purchased
six land drilling rigs and certain other assets, including heavy
haul trucks and excess rig equipment and inventory, from Big A
Drilling LC.  On Jan. 9, 2007, the company acquired Eagle Well
Services Inc. and related subsidiaries.  The purchased includes
31 workover rings, 24 of which were operating.

                   About Allis-Chalmers Energy

Headquartered in Houston, Texas, Allis-Chalmers Energy Inc.
(NYSE:ALY) -- http://www.alchenergy.com-- is an oilfield  
services company that provides services and equipment to oil and
natural gas exploration and production companies throughout the
United States and internationally primarily in Argentina and
Mexico.   The company operates in six sectors of the oil and
natural gas service industry: rental services, international
drilling, directional drilling services, tubular services,
underbalanced drilling services, and production services.  The
company's acquisitions include DLS Drilling Logistics and
Services Corporation in August of 2006, Petro-Rentals Inc. in
October of 2006 and Oil & Gas Rental Services Inc. in December
of 2006.  In October 2007, the company announced the acquisition
of Rebel Rentals Inc.  In November 2007, it acquired Diamondback
Oilfield Services Inc.


ARVINMERITOR INC: Board Declares US$0.10 Quarterly Dividend
-----------------------------------------------------------
At a meeting held on Jan. 25, 2008, at its corporate
headquarters in Troy, Michigan, ArvinMeritor, Inc. Board of
Directors has declared a quarterly dividend of 10 cents
(US$0.10) per share on the common stock, payable March 10, 2008,
to holders of record at the close of business on Feb. 19, 2008.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- supplies integrated systems,  
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs about 29,000 people at more
than 120 manufacturing facilities in 25 countries.  These
countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, Fitch Ratings has taken these rating
actions on ArvinMeritor Inc.:

   -- Issuer Default Rating downgraded to 'B+' from 'BB-';

   -- Senior secured revolver affirmed at 'BB' and assigned
      'RR1';

   -- Senior unsecured notes affirmed at 'B+' and assigned
      'RR4'.

Fitch said the rating outlook is negative.  The ratings affect
approximately US$1.1 billion of outstanding debt.


ARVINMERITOR INC: Names Barbara Novak VP & Corporate Secretary
--------------------------------------------------------------
ArvinMeritor Inc., following the company's Board of Directors
meeting, has appointed Barbara Novak as vice president and
corporate secretary, effective immediately.

Ms. Novak is responsible for the company's listing requirements
associated with the Securities and Exchange Commission and the
New York Stock Exchange, and will play a key role in financing
transactions, shareholder meetings, investor communications and
executive compensation.  She will also manage matters related to
the Board of Directors.

"We are very pleased that Barbara has joined us," said senior
vice president and general counsel, Vernon Baker.  "Her
significant work experience and exceptional education make her a
great asset to the ArvinMeritor team."

Most recently, Novak served as senior counsel, Securities, at
TRW Automotive Holdings Corp. in Livonia, Michigan.  Prior to
that, she held senior counsel positions at Delphi Corporation
and Collins & Aikman Corporation, after spending several years
as an associate at the law firm of Cravath, Swaine & Moore.

Ms. Novak holds a Bachelor of Arts degree from the University of
Michigan and a Juris Doctorate from Harvard Law School, where
she graduated cum laude and served on the "Harvard Law Review."  
Ms. Novak will continue to serve as an Adjunct Professor at the
University of Michigan Law School where she teaches securities
regulation to senior level law students.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- supplies integrated systems,  
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs about 29,000 people at more
than 120 manufacturing facilities in 25 countries.  These
countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, Fitch Ratings has taken these rating
actions on ArvinMeritor Inc.:

   -- Issuer Default Rating downgraded to 'B+' from 'BB-';

   -- Senior secured revolver affirmed at 'BB' and assigned
      'RR1';

   -- Senior unsecured notes affirmed at 'B+' and assigned
      'RR4'.

Fitch said the rating outlook is negative.  The ratings affect
approximately US$1.1 billion of outstanding debt.


BALLY TECHNOLOGIES: Seminole Tribe to Get 2,000 Gaming Machines
---------------------------------------------------------------
Bally Technologies, Inc. has signed a three-year operating
agreement with the Seminole Tribe of Florida to provide an
initial order of 2,000 new Class III gaming machines for the
Seminole's seven casinos in Florida.

The company's agreement is part of the Seminole Tribe's initial
Class III gaming machine order following the Jan. 7, 2008,
approval of a new compact between the United States Department
of the Interior and Florida Governor Charlie Crist, that allows
Las Vegas-style slot machines and card games at the Seminole's
gaming facilities in Tampa, Hollywood, Immokalee,Coconut Creek,
Brighton, and Big Cypress.

"Bally has been a key strategic partner of the Seminole Tribe
for a number of years," said  Seminole Gaming Chief Executive
Officer, James Allen.  "We have been impressed with Bally's
momentum in both games and systems and are pleased they will be
playing an important part in our introduction of Las Vegas-style
slot machines with the placement of an initial order of 2,000
games."

"We are honored to be a part of this historic moment for the
Seminole Tribe of Florida as they move to a Class III, Las
Vegas-style gaming model," said Bally Technologies Chief
Executive Officer, Richard M. Haddrill.  "Bally has been
providing Class II games for the past five years now through our
subsidiary, Sierra Design Group, and we are also providing
casino management system technology including our iVIEW(TM)
interactive player display.  This has been a successful
collaboration that we only see continuing to evolve and prosper
as the Tribe implements our newest and most exciting Class III
games throughout its world-class casinos."

Players at the Seminole Hard Rock Casino in Hollywood will be
the first to play Bally's Class III games beginning at 11:30 am
EST on Monday, Jan. 28.  The company is providing an array of
high-performing video and stepper games, including Golden
Monkey(TM), a popular five-reel, 25-line video slot; Hot Shot
Progressive(TM); Quick Hit Platinum(TM) multi-level progressive;
and the Company's Millionaire Sevens(TM) multi-level
progressive.

                 About Bally Technologies Inc.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,  
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Mississippi.  The company's South
American operations are located in Argentina.  The company also
has operations in France, Germany, Macau, China, India, and the
United Kingdom.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Fitch Ratings upgraded Bally Technologies' Issuer
Default Rating and senior secured bank debt ratings as: IDR to
'B' from 'B-' and Secured bank credit facilities to 'BB/RR1'
from 'B/RR3'.


DELTA AIR: Reports 4th Quarter & Full Year 2007 Results
-------------------------------------------------------
Delta Air Lines reported results for the quarter and year ended
Dec. 31, 2007.  Key points include:

     * Delta's 2007 pre-tax income was US$1.8 billion.  
       Excluding reorganization related and certain items, pre-
       tax income was US$625,000,000, a US$1,100,000,000
       improvement compared to 2006.
    
     * due to a 26% rise in fuel price, Delta reported a pre-tax  
       loss for the fourth quarter of US$105,000,000.

     * Delta ended the year with US$3,800,000,000 in
       unrestricted liquidity, including US$1 billion available
       under its revolving credit facility.

     * Delta employees will receive US$158,000,000 in profit
       sharing in recognition of their critical role in
       achieving significant financial improvements in 2007.

Delta reported pre-tax income of US$1,800,000,000 in 2007.
Excluding reorganization related and certain items, pre-tax
income was US$625,000,000, a US$1,100,000,000 improvement
compared to 2006.  As a result of the unprecedented increase in
jet fuel prices from US$2.31 to as high as US$2.77 per gallon,
Delta reported a pre-tax loss for the quarter of US$105,000,000,
an US$80,000,000 improvement compared to the prior year period
excluding reorganization items.

Delta's net income for the year was US$1,600,000,000, or
US$418,000,000 excluding reorganization related items.  Delta
reported a net loss of US$70,000,000 for the fourth quarter, or
US$0.18 per diluted share.

"2007 was an historic year for Delta marked by achievements that
demonstrate the extraordinary power of Delta people," said
Richard Anderson, Delta's chief executive officer.  "Our
successful emergence from bankruptcy; continued successful
international expansion; strong operational performance;
positive financial results -- in spite of the unrelenting
pressure we face from record fuel prices -- reflect the
outstanding work of our people, and I'm pleased that we'll
deliver US$158,000,000 in profit sharing to my Delta colleagues
in a few weeks in recognition of their many achievements in
2007."

                    Revenue Improvements

Delta's network restructuring and revenue management initiatives
continued to drive positive momentum during the December 2007
quarter.  Passenger revenue increased 10% compared to the prior
year period driven by 5% higher yield and 5% higher traffic.  
During the fourth quarter, 32% of Delta's capacity operated in
international markets, up from 23% in the December 2005 quarter.  
During the same periods, the percentage of Delta's capacity
operating in domestic markets declined to 68% from 77%.

Delta's fourth quarter consolidated passenger unit revenue
(PRASM) improved 6% year over year to 10.87 cents.  Continued
strong demand for Delta's international product resulted in a
14% increase in international PRASM year over year.  Domestic
PRASM increased 4% driven by the domestic network restructuring
and higher yields from pricing actions implemented to offset
higher fuel costs.  Based on 2007 ATA data, Delta's consolidated
length of haul adjusted PRASM for 2007 was 95% of industry
average PRASM (excluding Delta), up from 86% in 2005 when the
Company began its restructuring.

Comparisons of revenue related statistics by geographic region
are:

                December 2007 Quarter vs. December 2006 Quarter
                -----------------------------------------------
                   Domestic  Latin America  Atlantic  Pacific
                   --------  -------------  --------  -------
Passenger Revenue    4.4%        13.5%        33.3%     50.3%
Passenger Unit
  Revenue            4.3%        13.6%        15.2%    (6.0)%
Yield                4.6%         4.7%        12.7%     2.3%
Traffic             (0.2)%        8.5%        18.3%     47.0%
Capacity             0.0%         0.0%        15.7%     59.9%
Load Factor         (0.2) pts     6.0 pts      1.7 pts  (6.5)
pts

Other, net revenues increased US$72,000,000, or 17%, in the
fourth quarter primarily due to higher passenger fees and
charges, an increase in SkyMiles revenue and the impact of fresh
start reporting.

                      Cost Discipline

For the December 2007 quarter, Delta's operating expenses
increased 10%, or US$445,000,000 over the prior year period.  Of
this amount, increased fuel price represented almost
US$370,000,000, including fuel prices paid under our contract
carrier arrangements.  The remainder of the increase in
operating expense was primarily due to higher expenses related
to the 4% increase in capacity during the quarter.  For the same
period, non-operating expenses declined 46%, or US$88,000,000,
due primarily to lower effective interest rates, improved cash
flows and the impact of fresh start reporting.

Because of the steep rise in fuel price during the fourth
quarter of 2007, Delta's mainline unit cost (CASM) increased 4%
to 10.79 cents compared to the prior year period.  Excluding
fuel expense, mainline CASM declined 6% to 6.79 cents.

"While the recent sharp rise in fuel price pressured the
business significantly in the fourth quarter, the year over year
improvements in unit revenue and non-fuel unit cost demonstrate
the progress we continue to make to transform Delta," said
Edward Bastian, Delta's president and chief financial officer.  
"However, the business must be recalibrated to this high fuel
price environment and we have moved aggressively to reduce
domestic capacity beginning in January while retaining the
flexibility to quickly make further adjustments as the domestic
economic outlook warrants."

                   Operational Performance

Based on the most recent available DOT data, Delta ranks first
among the network carriers in on-time performance in 2007, a
significant accomplishment by Delta employees given the
considerable weather and congestion challenges faced during the
year.  In addition, during November 2007, Delta led the industry
by ranking first in on-time performance at each of its hubs in
Atlanta, New York-JFK, Salt Lake City and Cincinnati.

Delta was pleased to participate with the Federal Aviation
Administration (FAA) on a schedule reduction process, finalized
in mid-January, to ease congestion and reduce delays at New
York's three major airports.  The Company worked cooperatively
with the FAA to adjust its JFK schedule during peak times, while
maintaining previously announced international growth plans for
summer 2008.  Delta believes the revised schedule will result in
more efficient operations and a better travel experience for its
customers, particularly during the busy summer travel season.

                         Liquidity

In October 2007, Delta continued to strengthen its liquidity
position by issuing US$1,400,000,000 in new enhanced equipment
trust certificates (EETC).  This transaction refinanced
US$961,000,000 in aircraft-secured debt, including Delta's
2001-2 EETC, lowering the interest rate and deferring more than
US$560,000,000 in maturities, which had been due in 2010-11.

In December 2007, Delta received US$156,000,000 under a new
agreement that allows the company to borrow up to US$233,000,000
to finance aircraft pre-delivery payments.  This credit facility
consists of separate loans for each related aircraft, with
various maturity dates between February 2008 and August 2009.

Also during the quarter, Delta received US$83,000,000 from the
sale of its investment in ARINC.  This investment had been
recorded at fair value upon emergence from bankruptcy. As a
result, there was no gain or loss recorded on this transaction.

As of Dec. 31, 2007, Delta had US$3,300,000,000 in cash, cash
equivalents and short-term investments, of which
US$2,800,000,000 was unrestricted.  Delta has an additional
US$1,000,000,000 available under its revolving credit facility,
resulting in a total of US$3,800,000,000 in unrestricted
liquidity at year-end.

                        Fuel Hedging

During the December 2007 quarter, Delta hedged 21% of its fuel
consumption, resulting in an average fuel price of US$2.61 per
gallon.  Delta realized approximately US$40,000,000 in cash
gains on fuel hedge contracts settled during the quarter.

As of Jan. 22, 2008, Delta has these fuel hedges in place for
estimated 2008 consumption:

                        Percent Hedged  Jet Fuel Equivalent Cap
                        --------------  -----------------------
   Q1 2008                         26%                  US$2.77
   Q2 2008                         31%                  US$2.72
   Q3 2008                         15%                  US$2.70
   Q4 2008                         10%                  US$2.69

                        2007 Highlights

In 2007, Delta continued the positive momentum in its business,
demonstrating its ongoing commitment to providing the best
products and services to its customers while creating value for
shareholders.  Highlights include, Delta:

     * successfully emerged from bankruptcy on April 30,
       positioning itself to compete aggressively with a best-
       in-class cost structure and balance sheet, a diversified
       global network, a renewed focus on the customer
       experience, and a dedicated and committed workforce;

     * invested significantly in Delta people worldwide through
       a comprehensive compensation program, including a stock
       distribution and cash lump sum payment to employees upon
       emergence from bankruptcy, an increase in base pay, an
       enhanced annual profit sharing program, a monthly Shared
       Rewards program, and a new defined contribution benefit.

     * earned, for the second consecutive year, a ranking in the
       top two among network carriers in the JD Power Customer
       Satisfaction Survey;

     * signed a joint venture agreement with Air France, to be
       implemented in April 2008, to share revenues and costs on
       certain trans-Atlantic routes, expanding the existing
       partnership that has resulted in new routes and choices
       to customers on both sides of the Atlantic since its
       inception.  As part of this agreement, Delta customers
       will have the option of four daily Heathrow flights
       beginning March 30, 2008: twice daily from New York-JFK,
       and once daily from Atlanta, operated by Delta; and once
       daily from Los Angeles, operated by Air France;

     * won the rights to offer nonstop flights between the
       world's largest airline hub in Atlanta and Shanghai,  
       China, effective March 30, 2008, filling a critical void
       in air travel by providing 65,000,000 residents of the  
       Southeast direct access to the world's fastest growing
       economy;

     * completed the conversion of 11 B767-400 aircraft from
       domestic to international service, with three remaining
       B767-400 aircraft to be converted by spring 2008.  These
       aircraft support Delta's international expansion
       strategy.  In 2007, Delta launched 16 new international
       routes, including service from Atlanta to Dubai, Lagos,
       Prague, Seoul, and Vienna and from New York-JFK to
       Bucharest and Pisa;

     * confirmed orders for a total of eight B777-LR aircraft,
       and announced the planned installation of winglets on
       more than 60 B737-NG, B757-200 and B767-300ER aircraft
       over the next two years; added more two-class regional
       jets featuring first class cabins; and introduced into
       trans-Atlantic service Delta's first long-range B757-200
       aircraft featuring on-demand digital entertainment in
       every seat; and

     * invested in facilities and on-board products to improve
       the customer's travel experience including a redesigned,
       state-of-the-art lobby at Hartsfield-Jackson Atlanta
       International Airport, a dedicated premium customer
       check-in facility at Terminal 2 at New York-JFK, and
       enhanced food offerings with new domestic First Class and
       international BusinessElite(R) entrees from Chef Michelle
       Bernstein and new food-for-sale options from Chef Todd
       English in U.S. Coach Class.

                    Emergence Related Items

For the December 2007 quarter, emergence related items resulted
in a US$65,000,000 increase to pre-tax income. Fresh start
reporting increased pre-tax income by US$94,000,000, and share-
based compensation expense for emergence equity awards decreased
pre-tax income by US$29,000,000.  In total, emergence related
items increased consolidated PRASM by 0.15 cents and increased
mainline non-fuel CASM by 0.14 cents.

For the March 2008 quarter, Delta estimates emergence related
items will increase revenue by approximately US$50,000,000,
increase operating expense by approximately US$40,000,000 and
decrease non-operating expense by approximately US$15,000,000.

                       About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom, among others.  The
company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on
April 30, 2007.  The Court entered a final decree closing 17
cases on Sept. 26, 2007.

As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity.  At
Dec. 31, 2006, deficit was US$13.5 billion.

(Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

As previously reported in the Troubled Company Reporter,
according to Standard and Poor's, media reports that Delta Air
Lines Inc. (B/Positive/--) entered into merger talks with UAL
Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--)
has no effect on its ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch,
most likely with developing or negative implications.


FORD MOTOR: Auto Credit Arm Earns US$775 Million in 2007
--------------------------------------------------------
Ford Motor Credit Company reported net income of US$775 million
in 2007, down US$508 million from earnings of US$1,283 million a
year earlier.  On a pre-tax basis, Ford Motor Credit earned
US$1.215 billion in 2007, down US$738 million from 2006.  The
decrease in full year earnings primarily reflected the non-
recurrence of credit loss reserve reductions, higher borrowing
costs, higher depreciation expense for leased vehicles and
higher costs due to our North American business transformation
initiative.  These were offset partially by lower net losses
related to market valuation adjustments from derivatives and
lower expenses primarily reflecting improved operating costs.

In the fourth quarter of 2007, Ford Motor Credit's net income
was US$186 million, down US$93 million from a year earlier.  On
a pre-tax basis, Ford Motor Credit earned US$263 million in the
fourth quarter, compared with US$406 million in the previous
year.  The decrease in fourth quarter earnings primarily
reflected the non-recurrence of credit loss reserve reductions,
higher borrowing costs and higher depreciation expense for
leased vehicles, offset partially by lower expenses and the non-
recurrence of losses related to market valuation adjustments
from derivatives.

"We had a good year in 2007 with a business that performed
consistently and predictably," Mike Bannister, chairman and CEO,
said.  "With our sound business fundamentals, we have a strong
foundation for the future."

Ford Motor Credit expects its earnings in 2008 to be about equal
to its earnings in 2007.

On Dec. 31, 2007, Ford Motor Credit's on-balance sheet net
receivables totaled US$141 billion, compared with US$135 billion
at year-end 2006. Managed receivables were US$147 billion, down
from US$148 billion a year ago.

On Dec. 31, 2007, managed leverage was 9.8 to 1.

                   About Ford Motor Credit

Ford Motor Credit Company LLC -- http://www.fordcredit.com/--  
an indirect, wholly owned subsidiary of Ford Motor Company, is
an automotive finance company and has supported the sale of Ford
products since 1959.  It provides automotive financing for Ford,
Lincoln, Mercury, Jaguar, Land Rover, Mazda and Volvo dealers
and customers.

                       About Ford Motor

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.


FORD MOTOR: Inks Final Pact for ACH Driveshaft Business Sale
------------------------------------------------------------
Ford Motor Company, Automotive Components Holdings LLC and
Neapco Drivelines, LLC signed definitive agreements for the sale
of the ACH driveshaft business currently located in the ACH
Monroe (Michigan) Plant.  The transfer of the business will
begin next week and continue through the rest of the year.

This announcement follows the recent UAW ratification of the
collective bargaining agreement negotiated with Neapco.

Neapco is opening a 345,000 sq. ft. state-of-the-art
manufacturing facility in Van Buren Township, Michigan.  
Approximately 300 salaried and hourly employees from the Monroe
Plant and associated technical and support staffs are being
offered positions at the new facility.

Approximately 30% of the Monroe Plant's 1,100 employees are
associated with the driveshaft business.  The majority of the
salaried employees currently are leased to ACH from Visteon and
the majority of the UAW hourly employees are leased from Ford.

"This is another sign of progress toward achievement of our ACH
strategy and our pathway to profitability in North America in
2009," Mark Fields, Ford executive vice president and president
of The Americas, said.

"This is our third sale and the first involving a U.S.
business," Bill Connelly, CEO, Automotive Components Holdings,
added.  "It represents another important step toward our goal to
improve the competitiveness of these operations under new
ownership and improve Ford's material costs."

Neapco Drivelines, LLC and its parent company, Neapco LLC, are
headquartered in Pottstown, Pennsylvania, Wanxiang Group, which
is headquartered in Hangzhou, China, is the majority investor in
Neapco, LLC. Neapco, LLC supplies drivelines, steering shafts
and components for OEM and aftermarket automotive, truck,
agricultural, off-highway and specialty vehicle applications
from its facilities in Pennsylvania, Nebraska and Mexico.

"We are pleased to add the Ford driveshaft business and the
expertise of the ACH people to our organization," Robert Hawkey,
Neapco president and CEO, said.  "The Wanxiang Group and Neapco
are growing globally through strategic acquisitions of
innovative driveline products and technologies.  We are very
appreciative of the support and encouragement we have received
from the state, the local community and the United Auto Workers
to maintain this business in Michigan."

Automotive Components Holdings was established by Ford Motor
Company in October 2005 to ensure the flow of quality components
and systems to Ford, while the 17 ACH plants, formerly owned by
Visteon, are prepared for sale or other disposition.  After this
sale is complete, ACH will have 11 plants supported by about
10,500 leased hourly and salaried employees.

                      About Ford Motor

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.


FORD MOTOR: Posts US$2.7 Billion Net Loss in Fiscal Year 2007
-------------------------------------------------------------
Ford Motor Company reported a 2007 full-year net loss of
US$2.7 billion.  This compares with a 2006 full-year net loss of
US$12.6 billion.  

Ford's 2007 revenue, excluding special items, was US$173.9
billion, up from US$160.1 billion a year ago.  The increase
primarily reflected changes in exchange rates, higher net
pricing and improved product mix.

For full-year 2007, Ford earned a pre-tax operating profit from
continuing operations, excluding special items, of US$126
million.  Including taxes, Ford's full-year loss from continuing
operations was US$366 million, compared with a 2006 loss of
US$2.7 billion.

Special items, which primarily reflected non-cash charges
associated with a Premier Automotive Group asset impairment
(related to Volvo) and a change in business practice for
providing retail incentives to dealers throughout the year,
reduced full-year pre-tax results by US$3.9 billion, which
included a reduction in revenue of US$1.4 billion.

Automotive gross cash, which includes cash and cash equivalents,
net marketable securities, loaned securities and short-term VEBA
assets, was US$34.6 billion at Dec. 31, 2007, an increase of
US$700 million from year-end 2006.

"Each of our Automotive operations is improving, and we are
encouraged by the progress, which validates our strategy and
plan," Ford President and CEO Alan Mulally said.  "In 2007, we
introduced great new products around the globe that received
strong third-party endorsements for styling, quality and safety.  
This year, we have some outstanding new product introductions
including the Ford Flex, Lincoln MKS, and Ford F-150 in North
America, and Ford Kuga and the production version of the Ford
Verve concept in Europe."

                        Full-Year Highlights

Full-year 2007 highlights supporting the company's plan
included:

   * Reached agreement with the United Auto Workers on a new
     four-year national labor contract, which significantly
     improves the company's competitiveness going forward.   

   * Continued to align capacity to match demand and improve
     productivity in North America, and reduced personnel by
     32,800 in 2007.

   * Achieved US$1.8 billion in cost savings in 2007 (at
     constant volume, mix and exchange; excluding special
     items).

   * Introduced Ford SYNC -- the company's award-winning, fully
     integrated, voice-activated in-car communications and
     entertainment system developed in association with
     Microsoft -- which will be available in nearly every Ford,
     Lincoln and Mercury product by the end of 2008.

   * In the U.S., Ford, Lincoln and Mercury crossover utility
     vehicles led the fastest-growing segment with a sales gain
     of 62% in 2007.

   * The Ford Mustang convertible made history as the first
     sports car and first convertible to earn the highest
     possible safety ratings from the National Highway Traffic
     and Safety Administration.  The Mustang convertible earned
     five-star ratings in all crash test and rollover
     categories.

   * Ford Taurus, Taurus X and Mercury Sable earned Top Safety
     Pick ratings from the Insurance Institute for Highway
     Safety for achieving the highest possible ratings in
     frontal, side and rear crash test performance.  They also
     earned five-star crash-test ratings from NHTSA.

   * Ford Europe captured Autocar Magazine's annual "Car Company
     of the Year" award.  

   * Ford Mondeo joins three other models -- Ford Focus, Galaxy   
     and S-MAX -- with a five-star performance on the Euro NCAP
     Top 10 list, reinforcing Ford Europe's position as the
     manufacturer with the highest number of vehicles in the top
     10 for adult occupant protection.

   * Ford South America had record pre-tax profits and unit
     sales were up 19% year-over-year.

   * Land Rover achieved a third straight year of record unit
     sales.

   * Volvo S80 won AutoMundo Magazine's 2007 Car of the Year
     Award, and Volvo C30 was named Automobile Magazine's 2008
     All-Star.

   * Launched operations at new assembly plant in Nanjing,
     China, that will produce the latest small-car models from
     both Ford and Mazda.

   * Ford China unit sales rose 26% in 2007, outpacing industry
     growth in China.

   * Mazda CX-9 named "North American Truck of the Year," the
     first-ever Mazda to win the honor.

   * Completed the sale of Automobile Protection Corporation,
     Aston Martin and two Automotive Components Holdings plants.

   * Reduced Automotive debt by US$2.7 billion by completing
     trust preferred exchange offer and debt/equity swap.

                   Fourth Quarter Results

The company reported a 2007 fourth-quarter net loss of
US$2.8 billion.  This compares with a net loss of US$5.6 billion
in the same period a year ago.  

Ford's fourth-quarter revenue, excluding special items, was
US$45.5 billion, up from US$40.3 billion a year ago.  The
increase reflected changes in currency exchange rates, higher
net pricing, and improved volume.

Ford's fourth-quarter after-tax loss from continuing operations,
excluding special items, was US$429 million, compared with a
2006 after-tax loss of US$2.0 billion.

Special items reduced pre-tax results by US$3.9 billion in the
fourth quarter, which included a revenue reduction of
US$1.4 billion.  These primarily reflected non-cash charges
associated with a PAG asset impairment (related to Volvo) and a
change in business practice for providing retail incentives to
dealers.

                      About Ford Motor

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.


HUNTSMAN CORP: Agrees To Extend Review Period for Hexion Merger
---------------------------------------------------------------
Hexion Specialty Chemicals and Huntsman Corporation have agreed
to allow additional time for the Federal Trade Commission to
review the proposed merger of the two companies.  As a result,
the merger is not expected to close before May 3.  To
accommodate the extension, Hexion has also given notice to
Huntsman that on April 5, it will exercise its option to extend
the Termination Date under the Merger Agreement for 90 days, and
thus, if the conditions to Hexion's extension right are met on
April 5, the termination date under the Merger Agreement will be
extended until July 4, 2008.

"This extension is not unusual in a transaction of this size
involving numerous global locations," said Craig O. Morrison,
Hexion's Chairman and Chief Executive Officer.  "We are fully
cooperating with regulatory agencies and will continue to work
closely with Huntsman and the agencies in order to obtain the
regulatory approvals required to complete the merger."

Hexion announced on July 12, 2007, that it had entered into a
definitive agreement to acquire Huntsman Corporation in an all-
cash transaction valued at approximately US$10.6 billion,
including the assumption of debt.  The transaction was approved
by Huntsman shareholders on Oct. 16, 2007 and is subject to
customary closing conditions, including regulatory approval in
the U.S. and several other countries.

                    About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.
The company has locations in China, Australia, Netherlands, and
Brazil. It is an Apollo Management L.P. portfolio company.
Hexion had 2006 sales of US$5.2 billion and employs more than
7,000 associates.

                       About Huntsman

Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals.  Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care,  detergent, personal care,
furniture, appliances and packaging.  Originally known for
pioneering innovations in packaging and, later for rapid and
integrated growth in petrochemicals, Huntsman today has
operations in 24 countries, including Argentina, Belarus,
Japan, Luxembourg, Malaysia, Spain and teh United Kingdom, among
others.  The company had 2006 revenues from all operations of
over US$13 billion.

                        *     *     *

As reported in the Troubled Company Reporter on June 28, 2007,
Moody's Investors Service placed the debt ratings and the
corporate family ratings (CFR -- Ba3) for Huntsman Corporation
and Huntsman International LLC, a subsidiary of Huntsman under
review for possible downgrade.


TYSON FOODS: Court Sides with Firm in Poultry Conflict
------------------------------------------------------
Tyson Foods Inc. has won a court victory over several poultry
industry competitors seeking to disrupt the company's retail
chicken advertising program.

Sanderson Farms, Foster Farms and Perdue Farms filed a motion
Friday for a temporary restraining order prohibiting Tyson from
continuing its "Raised Without Antibiotics" chicken marketing
program.  They claimed the program, which is in the midst of a
transition, contains incorrect information.

However, Judge Catherine Blake of U.S. District Court in
Baltimore, denied the competitors' motion.  She indicated they
failed to provide sufficient evidence to support their case.  
She also noted Tyson worked cooperatively with USDA to reach an
agreement about modifying the company's original Raised Without
Antibiotics program, allowing the company to transition in an
"orderly fashion."

"The court's decision to reject our competitors' request
strengthens our conviction we have acted properly in the way
we've handled our marketing program," said Dave Hogberg, senior
vice president of Consumer Products for Tyson Foods.  "The
decision also confirms our competitors have not demonstrated
they have suffered any irreparable harm from our advertising,
which was properly created and placed under our original USDA
label approval."

"We don't understand why our competitors seem so driven to
prevent the dissemination of a product sold under a marketing
claim that was and remains in full compliance with federal
guidelines," he added.  "It also delivers a benefit and
reassurance so important to the majority of consumers."

Tyson announced in December the company and USDA had agreed to a
new and more informative labeling for the company's Raised
Without Antibiotics chicken program.  The new label will include
the following language: "Chicken Raised Without Antibiotics that
impact antibiotic resistance in humans."  The company has been
in the process of transitioning its labeling and marketing
materials to reflect this change.

As noted in court filings, Tyson made plans to change its
advertising before ever being notified of concerns from its
competitors.  In fact, the Tyson television ads in question
stopped airing before the competing companies even brought this
matter to court.

Tyson currently expected to start using its new advertising and
promotional materials in February.

                   About Tyson Foods, Inc.

Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN)
-- http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork.  The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy.

The company has operations in China, Japan, Singapore, South
Korea, and Taiwan.  In Latin America, Tyson Foods has operations
in Argentina.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods
Inc.'s ratings, including its Ba1 corporate family rating and
Ba1 probability of default rating.  Moody's said the rating
outlook is negative.




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


ISLE OF CAPRI: Acquires Remaining 43% Interest in Black Hawk LLC
----------------------------------------------------------------
Isle of Capri Casinos, Inc. has completed the acquisition of the
43% interest in Isle of Capri-Black Hawk LLC previously owned by
an affiliate of Nevada Gold & Casinos, Inc.

Isle of Capri Casinos, Inc. previously owned 57% of Isle of
Capri-Black Hawk LLC and completed the transaction at the
previously announced purchase price of US$64.6 million.  Through
Isle of Capri-Black Hawk, LLC, the company operates Isle of
Capri-Black Hawk and Colorado Central Station, both of which are
in Black Hawk, Colorado.

Based in Biloxi, Mississippi and founded in 1992, Isle of Capri
Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns  
and operates casinos in Biloxi, Lula and Natchez, Mississippi;
Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and
Waterloo, Iowa; Boonville, Caruthersville and Kansas City,
Missouri and a casino and harness track in Pompano Beach,
Florida.  The company also operates and has a 57.0% ownership
interest in two casinos in Black Hawk, Colorado.  Isle of Capri
Casinos' international gaming interests include a casino that it
operates in Freeport, Grand Bahama, a casino in Coventry,
England, and a two-thirds ownership interest in casinos in
Dudley and Wolverhampton, England.

                        *     *     *

As reported in the Troubled Company Reporter on June 21, 2007,
Standard & Poor's Ratings Services revised its rating
outlook on Isle of Capri Casinos Inc. to negative from stable.  
Ratings on the company, including the 'BB-' corporate credit
rating, were affirmed.


METROPOLITAN BANK: Moody's Gives Positive Outlook for Ratings
-------------------------------------------------------------
Moody's Investors Service has revised the outlook of the foreign
currency debt and deposit ratings of the Metropolitan Bank &
Trust Co. from stable to positive.

The bank financial strength rating, local currency debt and
deposit ratings, and foreign currency short-term deposit rating
of Metrobank are unaffected.

This action follows the change in Moody's outlook to positive
for the Philippine foreign currency country debt ceiling of Ba3
and foreign currency deposit ceiling of B1.

The outlooks for the following ratings were revised to positive:

    * Foreign currency long-term deposit rating of B1
    * Foreign currency hybrid tier-1 rating of Ba3

The outlooks for the following ratings were unaffected by the
action, and remain stable:

    * BFSR of D

    * Local currency deposit ratings of Baa2/P-2

    * Local currency subordinated debt rating of Baa3, foreign
      currency Not-Prime short-term deposit rating

    * Foreign currency subordinated debt rating of Ba2




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


CONTINENTAL AIRLINES: Pilots Prepare for Merger Potential
---------------------------------------------------------
Leaders of the Continental pilots union, represented by the Air
Line Pilots Association, Int'l, decided to activate the union's
Strategic Merger and Acquisition Response Team Center.  Start-up
of the SMART center was in response to recent industry merger
activity.

"We will not stand idly by and allow a change in the airline
landscape without taking steps to protect the interests of our
pilots," says Capt. Tom Donaldson, chairman of the pilots'
union.  "We've made huge concessions over the past number of
years.  As stakeholders in Continental, we agree with management
that we are content as a profitable, stand-alone entity.
However, we cannot ignore the amount of merger talk present in
the industry.  The SMART center will allow us to take the steps
necessary to protect pilots' stakeholder equity in our airline."

The pilots' union and Continental management have worked
together to create a successful company and overcome obstacles
that have caused other airlines to file for bankruptcy.  "It is
exactly this type of cooperation that has allowed our company to
flourish while others have languished with poor earnings and
even worse, significant losses," Capt. Donaldson commented.  "We
expect this level of cooperation with management to continue
with regard to any merger decisions.  The pilots of Continental
must be key in the decision to welcome or reject any merger
candidate."

Founded in 1931, ALPA is the world's largest pilot union
representing more than 60,000 pilots at 43 airlines in the U.S.
and Canada.

                 About Continental Airlines

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 69 million passengers per
year.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2007, Fitch Ratings has affirmed the debt ratings of
Continental Airlines, Inc. as:

   -- Issuer Default Rating at 'B-';
   -- Senior unsecured debt at 'CCC'/RR6

Fitch said the Rating Outlook is Stable.

As of March 2007, Continental Airlines carries Moody's Investors
Service's B2 corporate family rating.  The company also carries
Moody's B3 senior unsecured rating and Caa1 preferred stock
rating.




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


VIVUS INT'L: Sets Final Shareholders Meeting for Feb. 20
--------------------------------------------------------
Vivus International Limited will hold its final shareholders
meeting on Feb. 20, 2008, at 11:00 a.m. at:

          KPMG Advisory Limited
          Crown House, 4 Par-la-Ville Road
          Hamilton, Bermuda

These matters will be taken up during the meeting:

       -- receiving an account showing the manner in which
          the winding-up of the company has been conducted
          and its property disposed of and hearing any
          explanation that may be given by the liquidator;

       -- determination by resolution the manner in
          which the books, accounts and documents of the
          company and of the liquidator shall be
          disposed; and

       -- passing of a resolution dissolving the
          company.




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


INTERMEC INC: Names Raymond Cronin as RFID VP & General Manager
---------------------------------------------------------------
Intermec Inc. has appointed Raymond Cronin as its Vice President
and General Manager, RFID.

Mr. Cronin is a seasoned executive with significant senior level
technology experience in the areas of corporate strategy and the
commercialization of new technologies.  His corporate background
encompasses a range of disciplines, including operations,
product management, sales, customer service and support.

Mr. Cronin was most recently at Azimuth Systems, Inc. where as
founding Chief Executive Officer and member of their Board of
Directors, he led the company from concept to one of the market
leaders in the wireless LAN test equipment industry.  During the
last nine months he held the position of Chief Strategy Officer
while transitioning the CEO position to his successor.  Before
Azimuth Systems, Mr. Cronin served in various senior management
roles with several technology and semiconductor companies.
Mr. Cronin will report to Patrick Byrne, Intermec's President
and Chief Executive Officer.

"Intermec's RFID business is important to the long-term growth
of the company," said Patrick J. Byrne, President and Chief
Executive Officer.  "Ray's proven track record of bringing new
technologies to market along with Intermec's very strong
intellectual property portfolio in RFID further positions the
company for rapid technology commercialization."

Mr. Cronin is an Electrical Engineering graduate of Worcester
Polytechnic Institute and earned his Master's in Business
Administration from Harvard University.

                     About Intermec Inc.

Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets.  Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.

The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, Singapore and the United Kingdom.

                        *     *     *

Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'.  The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage.  S&P said the outlook is stable.




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


BANCO BRADESCO: Almost Completing Agora Acquisition
---------------------------------------------------
Banco Bradesco is close to completing its acquisition of local
brokerage house Agora, sources told Brazil's financial daily
Gazeta Mercantil.

According to Gazeta Mercantil, the Agora acquisition would make
Banco Bradesco the largest broker on the Sao Paulo stock
exchange Bovespa, as Agora has been the leading home broker on
Bovespa for five years with almost 50,000 customers.

Business News Americas relates that financial group Opus
increased its share in Agora near the end of 2006, taking
control of 57% of the brokerage house.

At least 30 of the 92 brokerages that run at Bovespa will merge
or be bought out before year-end, Gazeta Mercantil states.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, and Japan.  Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers.  The bank
also provides personal and commercial loans, along with leasing
services.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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


BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says
-------------------------------------------------------------
Acquiring Movie Gallery, Inc. is not part of Blockbuster, Inc.'s
"reshaping" plans for 2008, according to Blockbuster chairman
and chief operating officer James Keyes, reports The Wall Street
Journal.

Mr. Keyes said he wants to stay away from the financially
troubled Movie Gallery and focus more on building Blockbuster's
business.

"We are actually hoping for the ultimate resolution of Movie
Gallery's fate, that they will somehow find a way to survive,
because, frankly, good competition is healthy for an industry,"
Mr. Keyes said in an interview, reports WSJ.

"Blockbuster's challenge is to fix its core business before
considering any sort of aggressive asset or acquisition," Mr.
Keyes said.

                    About Movie Gallery

Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment  
specialty retailer.  The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.

The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853.  Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors.  Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel.  The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.  
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.

The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.

The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008.  The Debtors have asked the Court to extend
their plan-filing exclusive periods to June 13, 2008.  

                   About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- is a leading global   
provider of in-home movie and game entertainment, with over
7,800 stores throughout the Americas, Europe, Asia and
Australia.  The company maintains operations in Brazil, Mexico,
Denmark, Italy, Taiwan, Australia, among others.  (Movie Gallery
Bankruptcy News Issue No. 15; Bankruptcy Creditors' Service
Inc.; http://bankrupt.com/newsstand/or 215/945-7000)

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Fitch Ratings affirmed Blockbuster Inc.'s long-
term Issuer Default Rating at 'CCC' and the senior subordinated
notes at 'CC/RR6'.  The rating outlook is stable.  The company
had approximately US$991 million of debt outstanding as of
Sept. 30, 2007.


DELPHI CORP: Bankruptcy Court Confirms Chapter 11 Plan
------------------------------------------------------
The Honorable Judge Robert D. Drain of the United States
Bankruptcy Court for the Southern District of New York entered
an order on Jan. 25, 2008, confirming the First Amended Joint
Plan of Reorganization, as modified, of Delphi Corporation and
certain of its affiliates.  The Court ruled that Delphi had met
all of the statutory requirements to confirm its Plan.

"Today's confirmation represents one of the most significant
events of a very complex business reorganization to be completed
during a challenging time in the automotive industry," said
Robert S. "Steve" Miller, Delphi's executive chairman.  "The
industry-changing accomplishments contemplated by this Plan
could not have been achieved without the hard work and continued
focus of our employees, the support of our customers, suppliers
and other stakeholders, and the dedication of our
professionals."

Delphi plans to emerge during the current calendar quarter
following the syndication and closing of approximately
US$6.1 billon of exit financing facilities and satisfaction of
other conditions to the Effective Date of the Plan including
completing the rights offerings provided for under the Plan,
closing of the Investment Agreement with the Plan Investors and
consummation of the Global Settlement Agreement with General
Motors Corp.

"Delphi has substantially achieved all of the objectives that we
identified in our 2006 transformation plan," said Rodney O'Neal,
Delphi's CEO and President.  "Since the chapter 11 cases were
filed in late 2005, we have negotiated amended collective
bargaining agreements with our U.S. unions resulting in more
competitive U.S. operations; entered into comprehensive
settlement and restructuring agreements with General Motors;
made substantial progress in divesting or winding down
facilities and business lines that are not core to Delphi's
future plans; implemented initiatives in our organizational cost
structure to achieve important cost savings and rationalize our
salaried workforce to competitive levels; and obtained pension
funding waivers from the Internal Revenue Service which will
permit Delphi to fund its defined benefit pension plans
following emergence from chapter 11."

Delphi earlier announced broad-based stakeholder support for the
Plan.  Eighty-one percent of all voting creditors aggregated
across classes voted to accept the Plan.  Of the total amount
voted by all general unsecured creditor classes, 78% voted to
accept the Plan. More than 70% of the ballots cast and 70% of
the total dollar amount voted by Delphi's senior note claims,
TOPrS claims, and all other claims (including trade claims)
segments each voted separately to accept the Plan.  One hundred
percent of the ballots cast in the GM and MDL classes voted to
accept the Plan.  Of the approximately 217,000,000 shares voted
by shareholders, 78% voted to accept the Plan.  While one class
each in two lower tier Delphi subsidiaries did not accept the
Plan, the Bankruptcy Court confirmed the Plan over the vote of
the two subsidiary dissenting classes holding that Delphi was
entitled to confirm and implement the Plan for several reasons
including based on "new value" contributed by Delphi to the
subsidiaries.

Details of the Plan can be found by accessing the Delphi Legal
Information web site at http://www.delphidocket.com/

                     About Delphi Corp.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of  
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology.  The
company's technology and products are present in more than 75
million vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007.  The Court convened hearings to consider
confirmation of the Plan beginning Jan. 17, 2008.

(Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)  


DELPHI CORP: To Sell Steering Business to Platinum Equity
---------------------------------------------------------
Delphi Corporation said it will seek approval from the U.S.
Bankruptcy Court for the Southern of New York to sell its
steering and halfshaft businesses to an affiliate of Platinum
Equity at a sale hearing on Feb. 21, 2008.

Delphi said, in a news release, plans to conclude the sale as
soon as all regulatory approvals have been received.

Divestiture solutions firm Platinum Equity, LLC --
http://www.platinumequity.com/-- through affiliate Steering  
Solutions Corp., has offered to purchase Delphi's global
steering and halfshaft businesses for US$447,000,000.  Delphi
previously disclosed in January 2007 that it was working on
finalizing a sale and purchase agreement with Platinum Equity
regarding the sale of the businesses.

Pursuant to a Master Sale And Purchase Agreement dated
Dec. 10, 2007, have agreed to sell the global steering and
halfshaft businesses to Platinum Equity, but subject to
competitive bidding at an auction scheduled for Jan. 28, 2008.  
Delphi said that Platinum Equity was the sole bidder for the
subject assets.

Steering Holding, LLC, previously opposed to Platinum Equity's
designation as stalking horse bidder on grounds that (i) the
proposed break up fee and expense reimbursements, which could
reach up to US$8,000,000, is not justified; and (ii) it could
provide a better offer for Delphi's steering and halfshaft
businesses.  The Court, however, denied Steering Holding's
objection, but the party was entitled to submit a competing bid
by Jan. 18, 2008, under the Court-approved protocol.

Under its steering and halfshaft businesses, Delphi designs and
manufactures steering and driveline systems and components for
automotive vehicle manufacturers and adjacent markets.  The
businesses operate 22 manufacturing plants in 15 locations
worldwide, five regional systems engineering centers, and 11
local customer support enters.  In addition, the businesses
employ approximately 9,700 individuals globally, about 5,625 of
whom work in the U.S.  The businesses' customer base includes
major domestic, transnational, and international original
equipment manufacturers, including General Motors Corp., Fiat,
Ford, DaimlerChrysler, and Chevy.  In 2006, the businesses
generated US$2,530,000,000 in revenues.

                     About Delphi Corp.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of  
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology.  The
company's technology and products are present in more than 75
million vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007.  The Court convened hearings to consider
confirmation of the Plan beginning Jan. 17, 2008.  The Court
entered an order confirming the Plan on Jan. 25, 2008.

(Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)  


EL PASO: Deciding on Sale of 50% Stake in Pinauna by March
----------------------------------------------------------
El Paso's exploration and production director Brent Smolik said
in a Web cast that the firm would decide the sale of up to 50%
working interest in Brazil's offshore Pinauna oil project in the
Camamu-Almada basin by March.

Mr. Smolik commented to Business News Americas, "By then we will
have decided if we will take on a partner or if we should stay
on by ourselves."

According to BNamericas, El Paso expects oil output in Pinauna
to start in 2009.

Mr. Smolik told BNamericas, "We expect to be producing 15,000-
20,000 barrels of oil equivalent per day in second half of
2009."

El Paso drilled two wells containing 90 million barrels of oil
equivalent in Pinauna, BNamericas says, citing Mr. Smolik.    
The firm will invest some US$357 million in international
drilling this year.  It will invest up to US$25 million in Egypt
and the remainder in Brazil.  Early indications in El Paso's Bia
project in the Espirito Santo basin show that the 6-ESS-168 well
could have natural gas.

"First indications show that Bia is gassy.  Reserves there will
be monetized through pipeline to shore," Mr. Smolik told
BNamericas.

Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP)
-- http://www.elpaso.com/-- is an energy company that provides
natural gas and related energy products.  The company owns North
America's interstate pipeline system, which has approximately
55,500 miles of pipe.  It also owns approximately 470 billion
cubic feet of storage capacity and a liquefied natural gas
import facility with 806 million cubic feet of daily base load
send out capacity.  El Paso's exploration and production
business is focused on the exploration for and the acquisition,
development and production of natural gas, oil and natural gas
liquids in the United States, Brazil and Egypt.  It operates in
three business segments: Pipelines, Exploration and Production
and Marketing.  It also has a Power segment, which holds its
remaining interests in international power plants in Brazil,
Asia and Central America.

Southern Natural Gas Company's business consists of the
interstate transportation and storage of natural gas and LNG
terminal operations.

Colorado Interstate Gas Company's business consists of the
interstate transportation, storage and processing of natural
gas.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit ratings on El Paso Corp. and subsidiaries.
S&P said the outlook remains positive.


HEXION SPECIALTY: Nods To Extend Review Time for Planned Merger
---------------------------------------------------------------
Hexion Specialty Chemicals and Huntsman Corporation have agreed
to allow additional time for the Federal Trade Commission to
review the proposed merger of the two companies.  As a result,
the merger is not expected to close before May 3.  To
accommodate the extension, Hexion has also given notice to
Huntsman that on April 5, it will exercise its option to extend
the Termination Date under the Merger Agreement for 90 days, and
thus, if the conditions to Hexion's extension right are met on
April 5, the termination date under the Merger Agreement will be
extended until July 4, 2008.

"This extension is not unusual in a transaction of this size
involving numerous global locations," said Craig O. Morrison,
Hexion's Chairman and Chief Executive Officer.  "We are fully
cooperating with regulatory agencies and will continue to work
closely with Huntsman and the agencies in order to obtain the
regulatory approvals required to complete the merger."

Hexion announced on July 12, 2007, that it had entered into a
definitive agreement to acquire Huntsman Corporation in an all-
cash transaction valued at approximately US$10.6 billion,
including the assumption of debt.  The transaction was approved
by Huntsman shareholders on Oct. 16, 2007 and is subject to
customary closing conditions, including regulatory approval in
the U.S. and several other countries.

                       About Huntsman

Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals.  Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care,  detergent, personal care,
furniture, appliances and packaging.  Originally known for
pioneering innovations in packaging and, later for rapid and
integrated growth in petrochemicals, Huntsman today has
operations in 24 countries, including Argentina, Belarus,
Japan, Luxembourg, Malaysia, Spain and teh United Kingdom, among
others.  The company had 2006 revenues from all operations of
over US$13 billion.

                    About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.
The company has locations in China, Australia, Netherlands, and
Brazil. It is an Apollo Management L.P. portfolio company.
Hexion had 2006 sales of US$5.2 billion and employs more than
7,000 associates.

                        *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Standard & Poor's Ratings Services placed its 'B' corporate
credit rating and other ratings on Columbus, Ohio-based Hexion
Specialty Chemicals Inc. on CreditWatch with negative
implications.  The ratings on related entities were also placed
on CreditWatch.


HEXION SPECIALTY: To Exercise Rights Over Merger Deal Extension
---------------------------------------------------------------
Huntsman Corporation has received notice from Hexion Specialty
Chemicals, Inc. that the company will exercise its right under
Section 7.1(b)(ii) of the Agreement and Plan of Merger dated
July 12, 2007, to extend the Termination Date by 90 days from
April 5 to July 4, 2008.

Huntsman and Hexion had previously announced on Oct. 4, 2007,
that each had received a request for additional information from
the Federal Trade Commission under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended.  Huntsman Corp.
and Hexion Specialty have agreed with the Commission to allow
the FTC additional time to review the merger, such that the
merger is not expected to close before May 3, 2008.  Both
companies also continue to work closely with regulatory agencies
in other jurisdictions, including the European Union.

Hunstman President and Chief Executive Officer, Peter Huntsman
noted, "This extension was clearly contemplated by the terms of
the merger agreement that we entered into with Hexion last July.  
We continue to work diligently with Hexion and its advisors to
secure the regulatory approvals that are necessary to close the
transaction."

Under the terms of the Merger Agreement, the US$28.00 per common
share cash price to be paid by Hexion upon any completion of the
merger that occurs after April 5, 2008, will be increased at the
rate of 8% per annum (inclusive of any dividends paid) beginning
on April 5, 2008.

                       About Huntsman  

Huntsman (NYSE: HUN) -- http://www.huntsman.com-- is a global  
manufacturer and marketer of differentiated chemicals.  Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care,
furniture, appliances and packaging. Originally known for
pioneering innovations in packaging and, later, for rapid and
integrated growth in petrochemicals, Huntsman has 13,000
employees and operates from multiple locations worldwide.  The
company had 2006 revenues of over US$13 billion.

                   About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial  
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.  
The company has locations in Singapore, China, Australia,
Netherlands, and Brazil.  It is an Apollo Management L.P.
portfolio company.  Hexion had 2006 sales of US$5.2 billion and
employs more than 7,000 associates.

                        *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Standard & Poor's Ratings Services placed its 'B' corporate
credit rating and other ratings on Columbus, Ohio-based Hexion
Specialty Chemicals Inc. on CreditWatch with negative
implications.  The ratings on related entities were also placed
on CreditWatch.


PROPEX: Gets Interim OK to Access BNP Paribas' Cash Collateral
--------------------------------------------------------------
The Hon. John C. Cook of the U.S. Bankruptcy Court for the
Eastern District of Tennessee authorizes Propex Inc. and its
debtor-affiliates, on an interim basis, to use BNP Paribas
Securities Corp.'s cash collateral, pursuant to and limited by
the provisions of a DIP budget.  A copy of the budget has not
been filed with the Court.

The Court grants BNP Paribas a valid perfected replacement lien
on all of the Collateral subordinate only to (i) the Permitted
Prepetition Liens, (ii) the DIP Lenders' security interests and
liens and (iii) the Carve-Out.

As reported in the Troubled Company Reporter on Jan. 23, 2008,
Henry J. Kaim, Esq., at King & Spalding, LLP, in Houston, Texas,
proposed lead counsel of the Debtors, relates that the Debtors
require the immediate use of the Cash Collateral and financing
for, among other things, the purchase of their inventory,
maintenance of their facilities, and other working capital
needs.

Prior to Jan. 18, 2008, the working capital needs of the Debtors
were met primarily by a US$360 million senior credit facility.  
Pursuant to the terms and conditions of a prepetition credit
agreement and related documents, a syndicate of financial
institutions arranged by BNP Paribas Securities Corp., which
serves as administrative agent for the lender, agreed to provide
the senior credit facility, comprised of a US$260 million term
loan, a US$50 million revolving facility and a US$50 million
bridge loan facility.  The Prepetition Credit Facility was
secured by perfected, valid, binding and non-avoidable first
priority security interests and liens upon substantially all of
the assets of the Debtors.

The Debtors' right to use Cash Collateral will automatically
terminate on the date that is the earlier of 10 days after an
Event of Default under the DIP Facility or the maturity date of
the DIP Facility, the Court clarifies.

                        About Propex

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249).  The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000.  (Propex Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PROPEX INC: Wants Schedules Filing Deadline Extended to April 2
---------------------------------------------------------------
Propex Inc. and its debtor-affiliates ask permission from the
U.S. Bankruptcy Court for the Eastern District of Tennessee to
extend time for them to file their Schedules and Statements
through and including April 2, 2008.

The Debtors are required under Rule 1007(c) of the Federal Rules
of Bankruptcy Procedure to file their Schedules of Assets and
Liabilities and Statements of Financial Affairs within 15 days
after the Petition Date.

The Debtors' proposed bankruptcy counsel, Henry J. Kaim, Esq.,
at King & Spalding, LLP, in Houston, Texas, explains, however,
that the size of the Debtors' business operations, which spans
North America, Europe, and Brazil, makes it difficult for them
to compile all of the necessary business records required to
file an accurate financial information with the Court within the
time alloted under the Bankruptcy Code.

Consequently, the Debtors will not be able to satisfactorily
prepare the Schedules and Statements within 15 days as outlined
in Bankruptcy Rule 1007(c), Mr. Kaim notes.  The Debtors
anticipate that they will need a minimum of 75 days within which
to prepare and file the Schedules and Statements in the
appropriate format.

Mr. Kaim contends that the Debtors' request will not prejudice
any party-in-interest.  The Debtors have filed a list setting
forth the names and addresses of all their creditors and a list
setting forth the names, addresses and claim amounts of
creditors holding the 30 largest unsecured claims.  Thus, he
notes, the Office of the U.S. Trustee has the information
necessary for the formation of an unsecured creditors committee.

                        About Propex

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249).  The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000.  (Propex Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


TRW AUTOMOTIVE: Earns US$23 Mln in Third Quarter Ended Sept. 28
---------------------------------------------------------------
TRW Automotive Holdings Corp. reported net earnings of
US$23.0 million for the third quarter ended Sept. 28, 2007,
which compares to net earnings of US$5.0 million in the
corresponding period ended Sept. 29, 2006.

The company reported third-quarter 2007 sales of US$3.5 billion,
an increase of US$480.0 million or 16.0% over the prior year
period. The 2007 quarter benefited from higher customer vehicle
production in Europe and China, continued growth of safety
products in all markets (including a higher mix of lower margin
modules) and the positive effect of foreign currency
translation.  These positive factors were partially offset by
price reductions provided to customers.

"The growing market demand for our advanced active and passive
safety products is helping to drive our solid 2007 financial
performance," said John Plant, president and chief executive
officer.  "We have seen a 16.0 percent increase in total sales
related to electronic stability control, electric park brake,
electrically powered steering, tire pressure monitoring and side
and curtain airbag systems during the first nine months of the
year.  

"In addition to the success of these products, we continue to
derive significant benefits from the diversity of having nearly
70.0% of sales outside the challenging North American market,
aggressive cost reduction efforts and interest savings
attributable to our 2007 debt recapitalization."

Mr. Plant added, "Safety continues to be a major focus of
manufacturers and governments seeking to reduce driving related
injuries and fatalities, and of consumers who want their
vehicles equipped with technology that can help protect their
families.  As the global leader in safety with the most
comprehensive portfolio of products on the market, we are at the
forefront of development and are recognized as a solution
provider, especially when it comes to integrated products that
encompass both active and passive safety technologies."

Operating income for third-quarter 2007 was US$95.0 million,
which compares favorably to US$82.0 million in the prior year
period. Restructuring and asset impairment expenses in the 2007
period were US$13.0 million, which compares to US$3.0 million in
2006. Excluding these expenses from both periods, operating
income was US$108.0 million in 2007, which represents an
increase of 27.0% compared to the 2006 adjusted result.  

The year-to-year increase was driven primarily by higher product
volumes and savings generated from cost improvement and
efficiency programs, including reductions in pension and OPEB
related costs.  These positive factors were in part offset by
pricing provided to customers and higher commodity costs.

Net interest and securitization expense for the third quarter of
2007 totaled US$56.0 million, which compares to US$62.0 million
in the prior year.  The year-to-year decline can be attributed
to the benefits derived fro