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

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

            Friday, October 3, 2008, Vol. 9, No. 197

                            Headlines

A R G E N T I N A

CONOIL SRL: Trustee Verifying Proofs of Claim Until October 27
DANA CORP: SEC Seeks Explanation of 2007 Annual Disclosures
DISTRIBUIDORA DE PRODUCTOS: Claims Validation Deadline Is Feb. 16
FRIGORIFICO LIDERCAR: Files for Reorganization in Court
GIUX SA: Files for Reorganization in Buenos Aires Court

TELDAT SA: Proofs of Claim Verification Deadline Is February 2

* ARGENTINA: President's Actions Anger American Creditors


B A R B A D O S

* BARBADOS: Discloses US$100 Million Additional Debt


B E R M U D A

AIP FADA: Deadline for Proof of Claim Filing Is Oct. 30
AIP FADA: Will Hold Final Shareholders Meeting on Nov. 5
BLUEPOINT RE: Court Okays Bermuda as Foreign Main Proceeding
LEHMAN RE: Court Will Hear Petition for Liquidation on Oct. 17
LEHMAN RE: Peter Mitchell & Geoffrey Hunter Named as Liquidators

MPF-01 LTD: Court Names Morrison, Thresh and Pink as Liquidators
MPF CORP: Court Appoints Morrison, Thresh and Pink as Liquidators
OCEAN GRAND: Court Discharges Liquidation Petition
WOODFORD REINSURANCE: Proof of Claim Filing Is Until Oct. 15
WOODFORD REINSURANCE: Final Shareholders Meeting Is on Nov. 10


B R A Z I L

BRASKEM SA: Approves Iparinga-Paulinia Merger
BRASKEM SA: Partners With Toyota to Produce Green Polyethylene
BRASKEM SA: Develops Renewable Sugar Cane Polypropylene Polymer
COSAN SA: Parauna Unit Bags Contract for BRL670 Million
DELPHI CORP: Court OKs Services and Restructuring Deals With GM

DELPHI CORP: Gets Court's Nod to Modify Employee and Union Deals
FORD MOTOR: Repays US$1.5BB in Debt, Faces 3 Payment Obligations
GENERAL MOTORS: Delphi Services & Restructuring Deals Approved
ODEBRECHT SA: Settles Feud with Ecuadorean Government
ODEBRECHT SA: Ecuador May Default on US$200 Million Loan

* BRAZIL: Cushions Economy from U.S. Crisis with US$7 Billion


C A Y M A N  I S L A N D S

ALPHAGEN ALTAI: Holding Final Shareholders Meeting on Oct. 10
FUNC: Will Hold Final Shareholders Meeting on October 10
GAMEO INTERNATIONAL: Final Shareholders Meeting Is on Oct. 9
GARTMORE LIMITED: Sets Final Shareholders Meeting on Oct. 10
MOSVOLD DRILLING: Proof of Claim Filing Deadline Is Oct. 10

MOSVOLD DRILLING I: Proof of Claim Filing Is Until Oct. 10
MOSVOLD DRILLING II: Deadline for Claims Filing Is Oct. 10


C O L O M B I A

QUEBECOR WORLD: Wants Court to Set December 5 as Claims Bar Date


J A M A I C A

AIR JAMAICA: Government Eyes Solutions on Financial Problems


M E X I C O

CORPORACION GEO: To Release 3rd Quarter 2008 Earnings on Oct. 27


P E R U

BUNGE LTD: To Pay Common & Preference Share Dividends on Dec. 1-2


P U E R T O  R I C O

HOME INTERIORS: Says Sale of Operating Units May Affect Workers
HOME INTERIORS: Committee Objects to Houlihan Lokey Employment
MARGO CARIBE: To Delist Common Stock; Delays Filing Reports
R&G FINANCIAL: Melba Acosta Gets Salary Raise for US$490,000


V I R G I N  I S L A N D S

* VIRGIN ISLANDS: Gas Prices Drop Territorywide Except St. John


                         - - - - -


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

CONOIL SRL: Trustee Verifying Proofs of Claim Until October 27
--------------------------------------------------------------
The court-appointed trustee for Conoil SRL's reorganization
proceeding will be verifying creditors' proofs of claim until
October 27, 2008.

The trustee will present the validated claims in court as  
individual reports.  The National Commercial Court of First
Instance in Tres Arroyos, Buenos Aires, will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
Conoil SRL and its creditors.

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

A general report that contains an audit of Conoil SRL's
accounting and banking records will be submitted in court.

Infobae didn't state the submission dates for the reports.

Creditors will vote to ratify the completed settlement plan  
during the assembly.


DANA CORP: SEC Seeks Explanation of 2007 Annual Disclosures
-----------------------------------------------------------
The U.S. Securities and Exchange Commission has asked Dana
Holding Corporation to revise certain documents filed in
connection with the company's Form 10-K for the year ended
Dec. 31, 2007, filed with the SEC on March 14, 2008.

The SEC, through a letter, asked Dana to provide information for
the SEC "to better understand the disclosure" contained in the
Form 10-K, the Management's Discussion and Analysis of Financial
Condition and Results of Operation, and the Results of Operations
Summary.  The request, the SEC said is "to assist Dana in its
compliance with the applicable disclosure requirements and
enhance the overall disclosure of the filing."

Specifically, the SEC asked Dana to, among other things:

  (1) provide, and revise future filings to include, a
      substantive reason unique to Dana as to why investors will
      find the non-GAAP financial measure useful;

  (2) provide a separate discussion of cost of sales results;

  (3) explain, and revise its notes to the financial statements
      to disclose, how Dana determined or calculated the
      US$2,267,000,000 additional paid in capital that resulted
      from the issuance of new equity in connection with the
      company's emergence from Chapter 11;

  (4) revise the notes to its financial statements to include
      discloses of these matters:

         * disclosure of the significant assumptions used in the
           discounted cash flow analysis including expected
           changes in cash flows from those indicated by Dana's
           current operations, number of years for which cash
           flows were projected, discount rates and other
           significant assumptions used in Dana's analysis,
           including how any terminal value was calculated or
           determined;

         * disclosure of results of the valuation based on
           multiples of peer group companies and explain how the
           results of the analysis were combined or blended with
           the results of the discounted cash flow analysis to
           arrive at the total enterprise value of
           US$3,563,000,000;

         * explanation of the nature and amounts of the
           adjustments that were made to the enterprise value of
           US$3,563,000,000 to determine the value of
           US$2,267,000,000 attributed to the interests of the
           common shareholders;

  (5) explain and revise its disclosure to indicate how Dana
      value the share of the 71 million shares of Dana stocks
      issued and distributed to holders of allowed unsecured
      claims and explain how Dana valued and accounted for the
      issuance of 27 million additional shares issued and set
      aside for distribution to holders of allowed unsecured
      non-priority claims in Class B under Dana's confirmed Plan
      of Reorganization;

  (6) provide details and revise its notes to explain how the
      US$948,000,000 cash increase as a result of reorganization
      adjustments was calculated or determined;

  (7) explain and revise the notes to disclosure the nature of
      the US$254,000,000 fair value adjustment to the deferred
      employee benefits and other non-current liabilities;

  (  revise the notes to the reorganized consolidated balance
      sheet to include an allocation of the total reorganization
      value to the net assets of the business;

  (9) explain in the notes to the reorganized consolidated
      balance sheet the nature of the US$35,000,000 adjustment
      made to notes payable and explain how this adjustment was
      calculated or determined; and

(10) revise its disclosure to state all significant assumptions
      used by the valuation consultants or management in
      determining the valuation amounts.

A full-text copy of the Letter is available for free at
http://bankrupt.com/misc/july1Letter.pdf

In response as to, among others, the calculation of the
discounted cash flows, Dana said the basis for the discounted
cash flows were the projections published in the Plan.  The five-
year estimates, Dana added, included projected changes associated
with our reorganization initiatives, anticipated changes in
general market conditions, including variations in market regions
and known new business gains and losses, as well as other factors
considered by Dana management.  Dana told the SEC that it
completed the DCF analysis by operating segment in late 2007
using discount rates ranging from 10.5% to 11.5% based on a
capital asset pricing model which utilized weighted average cost
of capital relative to certain ASG and HVSG reference peer group
companies.

For its DCF valuation, Dana said it utilized the average of two
DCF methodologies to derive the enterprise value of Dana:

  (1) EBITDA Multiple Method -- The sum of the present values of
      the unlevered free cash flows was added to the present
      value of the terminal value of the reorganized Dana,
      computed using EBITDA exit multiples by segment based in
      part on the range of multiples calculated by using a
      comparable public company methodology, to arrive at an
      implied enterprise value for Dana's operating assets
      (excluding cash).

  (2) Perpetuity Growth Method -- The sum of the present values
      of the unlevered free cash flows was added to the present
      value of the terminal value of Dana, which was computed
      using the perpetuity growth method based in part on
      industry growth prospects and our business plans, to
      arrive at an implied enterprise value for Dana's operating
      assets (excluding cash).

Dana added that it also utilized a comparable companies
methodology, which identified a group of publicly traded
companies whose businesses and operating characteristics were
similar to those of Dana as a whole, or similar to significant
portions of Dana's operations, and evaluated various operating
metrics, growth characteristics and valuation multiples for each
of the companies in the group.  Dana then developed a range of
valuation multiples to apply to its projections to derive a range
of implied enterprise values for Dana.  The multiples ranged from
3.8 to 9.0 depending on the comparable companies.

A full-text copy of Dana's Response is available for free at
http://ResearchArchives.com/t/s?32e6

Not satisfied with some of Dana's responses, the SEC, in a second
letter, summoned Dana to, among others, include disclosure of the
EBITDA exit multiples used in the EBITDA Multiple Method and
identify sensitive assumptions for which there is a reasonable
possibility of the occurrence of a variation that would have
significantly affected the measurement value, and assumptions
about anticipated conditions that are expected to be different
from current conditions.

A full-text copy of the Second Letter is available for free at
http://bankrupt.com/misc/july29Letter.pdf

Dana, in further response, said the amendments, revisions,
further disclosures, and explanations will be reflected in their
next quarterly financial report.

Dana explained that its compromise total enterprise value is
US$3,563,000,000, which represents the amount of resources
available for the satisfaction of post-petition liabilities and
allowed claims, as negotiated between the Debtors and their
creditors.  This value, Dana said, along with other terms of the
Plan, was determined only after extensive arms-length
negotiations with the claimholders.  Dana developed its view of
what the value should be based on expected future cash flows of
the business after emergence from Chapter 11, discounted at rates
reflecting perceived business and financial risks.  This
valuation and a valuation using market value multiples for peer
companies were blended to arrive at the compromise valuation,
according to Dana.

A full-text of Dana's Second Response is available for free at
http://ResearchArchives.com/t/s?32e7

In a third letter, the SEC told Dana that it completed its review
of Dana's Form 10-K and has no further comments.  A full-text
copy of the Third Letter is available for free at
http://bankrupt.com/misc/aug7Letter.pdf

                          About DANA

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

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

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
June 30, 2008, the Debtors listed US$7,482,000,000 in total debts,
resulting in US$2,979,000,000 in total shareholders' deficit.

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

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

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.

The Debtors' Third Amended Joint Plan of Reorganization was deemed
effective as of Jan. 31, 2008.  Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.

(Dana Corporation Bankruptcy News, Issue No. 82; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/  
or 215/945-7000)


DISTRIBUIDORA DE PRODUCTOS: Claims Validation Deadline Is Feb. 16
-----------------------------------------------------------------
Javier Espineira, the court-appointed trustee for Distribuidora de
Productos Alimenticios del Uruguay SRL's bankruptcy proceeding,
will be verifying creditors' proofs of claim until February 16,
2009.

Mr. Espineira will present the validated claims in court as  
individual reports.  The National Commercial Court of First
Instance No. 18 in Buenos Aires, with the assistance of Clerk
No. 35, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Distribuidora de Productos and
its creditors.

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

A general report that contains an audit of Distribuidora de
Productos' accounting and banking records will be submitted in
court.

La Nacion didn't state the submission dates for the reports.

Mr. Espineira is also in charge of administering Distribuidora de
Productos' assets under court supervision and will take part in
their disposal to the extent established by law.

The debtor can be reached at:

                     Distribuidora de Productos Alimenticios
                     del Uruguay SRL
                     Florida 686
                     Buenos Aires, Argentina

The trustee can be reached at:

                     Javier Espineira
                     Norberto Quirno Costa 1256
                     Buenos Aires, Argentina


FRIGORIFICO LIDERCAR: Files for Reorganization in Court
-------------------------------------------------------
Frigorifico Lidercar SA has requested for reorganization approval
after failing to pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance No. 18 in Buenos Aires.  Clerk No. 36 assists the court
in this case.


GIUX SA: Files for Reorganization in Buenos Aires Court
-------------------------------------------------------
Giux SA has requested for reorganization approval after failing to
pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance No. 20 in Buenos Aires.  Clerk No. 39 assists the court
in this case.


TELDAT SA: Proofs of Claim Verification Deadline Is February 2
--------------------------------------------------------------
The court-appointed trustee for Teldat S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
February 2, 2009.

The trustee will present the validated claims in court as  
individual reports on March 16, 2009.  A court in Argentina will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Teldat S.A. and its creditors.

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

A general report that contains an audit of Teldat S.A.'s
accounting and banking records will be submitted in court on
May 4, 2009.

The trustee is also in charge of administering Teldat S.A.'s
assets under court supervision and will take part in their
disposal to the extent established by law.


* ARGENTINA: President's Actions Anger American Creditors
---------------------------------------------------------
The American Task Force Argentina alerted New Yorkers on Sept. 22,
2008, with a posting on the Times Square bill board that Argentine
President Cristina Kirchner has hurt American taxpayers by
repudiating billions in debt to U.S. creditors and defying the
U.S. federal court system.

The U.S. bondholders' anger escalated as President Kirchner is in
New York City in late September for a UN General Assembly and
other high profile engagements, including ringing the opening bell
at NASDAQ.  A recent report by former Under Secretary of Commerce
in the Clinton Administration and ATFA Co-chair Dr. Robert Shapiro
showed that Argentina's default and restructuring cost U.S.
taxpayers billions of dollars.  Other reports showed that New York
alone has lost tens of millions in tax revenue do to the
Government of Argentina's delinquent behavior.

"ATFA applauds the decision by US Federal Judge Thomas Griesa to
permit bondholders to attach certain assets of the Banco de la
Nacion Argentina (BNA) in New York," said Dr. Shapiro.  "The
Government of Argentina has steadfastly refused to pay judgments
obtained against it in the New York courts, and has boasted that
it has removed all assets beyond the reach of creditors.  This
latest attachment demonstrates the fallacy of thinking that
Argentina can participate as a modern country in the international
arena without settling its debts."

Argentina issued the largest default in history on in 2001; and in
2005, Argentina offered its creditors an unprecedented amount of
less than 30 cents on the dollar in a take-it-or-leave-it deal.
More than half of international creditors rejected the obscene
offer and now Argentina still refuses to go back to the
negotiating table, despite having over US$45 billion in
international reserves.

ATFA Co-chair Dr. Robert Shapiro said like many heads of state,
President Kirchner was in New York late September “to bolster the
image and strengths of her country" however she "has not
represented her country well to the international financial
community and has fundamentally violated the grounds of her
contracts with creditors."

Made up of an alliance of organizations, ATFA's leadership
includes its two co-chairs, the Honorable Robert J. Shapiro,
former Under Secretary of Commerce for Economic Affairs in the
Clinton Administration and Ambassador Nancy Soderberg, Ambassador
at the U.S. Mission to the United Nations in New York from 1997 to
2001.  The Executive Director is Mr. Robert Raben, former
Assistant Attorney General during the Clinton administration.

                          *     *     *

The Troubled Company Reporter-Latin America reported on Aug. 13,
2008, that Standard & Poor's Ratings Services said that its
lowering of the sovereign ratings on the Republic of Argentina
will not immediately affect ratings on Argentine corporate
entities.  S&P lowered the global scale ratings on Argentina to
'B' from 'B+' and the national scale ratings to 'raAA-' from
'raAA'.  The outlook on the sovereign is stable, and the 'B'
short-term global scale rating remains unchanged.



===============
B A R B A D O S
===============

* BARBADOS: Discloses US$100 Million Additional Debt
----------------------------------------------------
Oscar Ramjeet at the Caribbean Net News, citing Prime Minister
David Thompson, reports that the Barbados government currently has
over US$100 million more in debt repayment accumulated in the
previous year.

Mr. Thompson explained that this is partly due to new debt raised
during the year and the repayment of approximately US$27 million
for the new prisons at Dodds, Net News notes.

The Barbados Advocate, according to the report, related that Mr.
Thompson said his administration was also facing an increase in
interest payments in 2008 to 2009 of US$38.4 million due to new
loans and increase in amortization by US$12.5 million over the
level of 2007 to 2008.  Mr. Thompson added that his government had
to honor US$8.1 million to assist the Ministry of Public Works.

Based on the report, Mr. Thompson further said that the government
was saddled with an additional US$17.4 million for the Ministry of
Health from High Court suits with respect to the St Joseph
Hospital and an additional US$12.2 million for the Drug Service.  
He also mentioned that US$26.5 million is for the Barbados Defence
Force and US$8.1 million to the Queen Elizabeth Hospital and
referred to US$27.8 million and US$41.5 million for the Transport
Board and the University of the West Indies.



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

AIP FADA: Deadline for Proof of Claim Filing Is Oct. 30
-------------------------------------------------------
AIP FADA Ltd.'s creditors have until Oct. 30, 2008, to prove their
claims to Nicholas J. Hoskins, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

AIP FADA's shareholders agreed on Sept. 29, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

               Nicholas J. Hoskins
               c/o Chancery Hall, 52 Reid Street
               Hamilton, Bermuda


AIP FADA: Will Hold Final Shareholders Meeting on Nov. 5
--------------------------------------------------------
AIP FADA Ltd. will hold its final shareholders meeting on Nov. 5,
2008, at 10:00 a.m. at the offices of Wakefield Quin, Chancery
Hall, 52 Reid Street, 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.

AIP FADA's shareholders agreed on Sept. 29, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

               Nicholas J. Hoskins
               c/o Chancery Hall, 52 Reid Street
               Hamilton, Bermuda


BLUEPOINT RE: Court Okays Bermuda as Foreign Main Proceeding
------------------------------------------------------------
Judge Robert E. Gerber of the U.S. Bankruptcy Court for the
Southern District of New York has approved:

   (i) the Chapter 15 petition filed for BluePoint Re, Ltd., and
       the request of John C. McKenna, the company's petitioner,
       for recognition of BluePoint's insolvency proceedings in
       Bermuda as a foreign main proceeding for a permanent
       injunction and related relief; and

  (ii) the Petitioner's request for a Preliminary Injunction
       Order.

The Court authorized Mr. McKenna to operate the company and  
exercise the rights and powers of a trustee under Sections 363 and
552 of the Bankruptcy Code.

In addition, he will serve as the company's exclusive
representative and will administer the company's assets and
affairs including any transfer of or withdrawals from any bank
accounts maintained by the company.

On Aug. 7, 2008, the Debtor requested and obtained an order from
the Supreme Court of Bermuda to be wound up pursuant to the
Bermuda Companies Act of 1981.  The Court also appointed
Mr. McKeena as the Debtor's provisional liquidator on the same
day.

As reported by the Troubled Company Reporter on Aug. 15, BluePoint
Re, sought for Chapter 15 bankruptcy protection before the United
States Bankruptcy Court for the Southern District of New York
(Bankr. S.D. N.Y. 08-13169) on Aug. 13, 2008.  Mr. McKeena filed
the Chapter 15 petition on BluePoint's behalf.

Based in Bermuda, the Debtor provides insurance and reinsurance of
all kinds, and in particular to underwrite third party financial
insurance, mostly with underlying risks of structured finance and
municipal transactions.  It is a wholly owned subsidiary of
BluePoint Holdings Ltd. in Bermuda, which in turn is wholly owned
by Wachovia Corp.  The Petitioner's Counsel is Howard Seife, Esq.
at Chadbourne & Parke, LLP.  BluePoint Re's asset is estimated at
more than US$100,000,000 and its debts at more than
US$100,000,000.


LEHMAN RE: Court Will Hear Petition for Liquidation on Oct. 17
--------------------------------------------------------------
The Supreme Court of Bermuda will hear Lehman Re Ltd.'s petition
for liquidation at 9.30 A.M., on October 17, 2008, presented
before the Court on Sept. 23, 2008.

Any creditor or representative thereof, may appear before the
court for the hearing of the petition to pay regulated charges.

The petition must be served in writing by the creditor, stating
the name and address of the person and the company and duly
signed by the petitioner or their attorneys not later than 4.00
p.m. (Bermuda time), on October 16, 2008.

Attorneys for Lehman Re can be reached at:

              Conyers Dill & Pearman
              c/o Clarendon House, 2 Church Street
              Hamilton, Bermuda


LEHMAN RE: Peter Mitchell & Geoffrey Hunter Named as Liquidators
----------------------------------------------------------------
The Supreme Court of Bermuda has appointed Peter C.B. Mitchell
and Geoffrey Hunter of PricewaterhouseCoopers Advisory Limited as
joint provisional liquidators for Lehman Re Ltd., on Sept. 23,
2008.

Attorneys for Lehman Re can be reached at:

              Conyers Dill & Pearman
              c/o Clarendon House, 2 Church Street
              Hamilton, Bermuda

The liquidators can be reached at:

              Peter C.B. Mitchell and Geoffrey Hunter
              c/o PricewaterhouseCoopers Advisory Limited
              P.O. Box HM 1171
              Hamilton, Bermuda


MPF-01 LTD: Court Names Morrison, Thresh and Pink as Liquidators
----------------------------------------------------------------
The Supreme Court of Bermuda has appointed Michael W. Morrison
and Charles Thresh of KPMG and Michael Pink of KPMG LLP, England
as Joint Provisional Liquidators for MPF-01 Ltd. on September 24,
2008.

Attorney for the Joint Liquidators is Trott & Duncan.

The Liquidators can be reached at:

               Michael W. Morrison and Charles Thresh             
               c/o KPMG Advisory Limited
               Crown House, 4 Par-la-Ville Road
               Hamilton, Bermuda

                          and

               Michael Pink
               c/o KPMG LLP
               England


MPF CORP: Court Appoints Morrison, Thresh and Pink as Liquidators
-----------------------------------------------------------------
The Supreme Court of Bermuda has appointed Michael W. Morrison
and Charles Thresh of KPMG and Michael Pink of KPMG LLP, England
as Joint Provisional Liquidators for MPF Corp. Ltd. on Sept. 24,
2008.

Attorney for the Joint Liquidators is Trott & Duncan.

The Liquidators can be reached at:

               Michael W. Morrison and Charles Thresh             
               c/o KPMG Advisory Limited
               Crown House, 4 Par-la-Ville Road
               Hamilton, Bermuda

                          and

               Michael Pink
               c/o KPMG LLP
               England


OCEAN GRAND: Court Discharges Liquidation Petition
--------------------------------------------------
The Supreme Court of Bermuda has approved the dismissal of
liquidation petition by Ocean Grand Chemicals Holdings Ltd. on
Sept. 25, 2008.

Effective Sept. 25, the petition discharge also released Lai Kar
Yan, Ocean Grand's Provisional Liquidator appointed on July 24,
2006.

Ocean Grand's legal counsels can be reached at:

               Conyers Dill & Pearman
               c/o Clarendon House, 2 Church Street
               Hamilton, Bermuda

The Provisional Liquidator can be reached at:

               Lai Kar Yan
               35/F., One Pacific Place
               88 Queensway, Hong Kong


WOODFORD REINSURANCE: Proof of Claim Filing Is Until Oct. 15
------------------------------------------------------------
Woodford Reinsurance Ltd.'s creditors have until Oct. 15, 2008, to
prove their claims to Robin J. Mayor, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Woodford Reinsurance's shareholders agreed on Sept. 30, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

               Robin J. Mayor
               c/o Conyers Dill & Pearman
               Clarendon House, 2 Church Street
               Hamilton, Bermuda


WOODFORD REINSURANCE: Final Shareholders Meeting Is on Nov. 10
--------------------------------------------------------------
Woodford Reinsurance Ltd. will hold its final shareholders meeting
on Nov. 10, 2008, at 9:30 a.m. at the offices of Messrs. Conyers
Dill & Pearman, Clarendon House, 2 Church Street, 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.

Woodford Reinsurance's shareholders agreed on Sept. 30, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

               Robin J. Mayor
               c/o Conyers Dill & Pearman
               Clarendon House, 2 Church Street
               Hamilton, Bermuda



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

BRASKEM SA: Approves Iparinga-Paulinia Merger
---------------------------------------------
Braskem S.A., during the extraordinary shareholders’ meeting, has
approved the merger into Braskem of Ipiranga Petroquimica (IPQ),
Petroquimica Paulinia S.A. (PPSA) and the spun off portion of
Ipiranga Quimica (IQ) that refers to the interests in IPQ and
ISATEC - Pesquisa Desenvolvimento e Analises Quimicas Ltda.

Copesul, which was also included in the acquisition of the
petrochemical assets of the Ipiranga Group, was merged into IPQ on
September 11, 2008 and now with the merger of IPQ is also a part
of Braskem.

According to CEO Bernardo Gradin, "these mergers represent the
conclusion of another important step in the consolidation of the
Brazilian petrochemical assets.  This step, which began with the
acquisition of the petrochemical assets of the Ipiranga Group in
March 2007 and was followed by the investment agreement signed
with Petrobras in November last year, was concluded within the
original timetable announced to the market.  The conclusion of the
acquisition process also enables the accelerated capture
of the synergies we announced, which will increase the
competitiveness of the Company as well as that of the entire
petrochemical and plastics  production chain in Brazil."

The assets merged were valued at BRL3.4 billion.  As Braskem,
prior to the merger, held 100% of the total capital of IQ and PPSA
and 99.3% of the total capital of IPQ, it shall issue only
1,506,061 class "A" preferred shares to be delivered to the
minority shareholders of IPQ, which represent 0.3% of the
Company's total capital.

Shareholders not willing to exchange IPQ shares for Braskem shares
may exercise the withdrawal right in the amount of BRL0.028632772
per IPQ share, in accordance with the conditions established in
the Material Fact notice published on Sept. 12, 2008.

Following these mergers, Braskem’s capital stock will increase to
BRL5.4 billion, divided into 524,391,654 shares, 196,714,190 of
which are common shares 326,874,398, class "A" preferred shares
and 803,066 class "B" preferred shares.

Braskem S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins
producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products.  The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.

TCR-LA reported on Dec. 10, 2007, that Standard & Poor's raised
Braskem's long-term corporate credit to 'BB+' from 'BB'.

On Nov. 28, 2007, Moody's Investors Service assigned the company
a corporate family rating of Ba1 on the agency's global scale.


BRASKEM SA: Partners With Toyota to Produce Green Polyethylene
--------------------------------------------------------------
Braskem S.A. and Toyota Tsusho Corporation have agreed to carry
out, through a commercial contract, joint marketing activities for
green polyethylene from sugarcane in Asian regions including
Japan.  Braskem plans to produce green polyethylene for the first
time in the world on an industrial scale by 2011.

Braskem will build a new facility at their existing industrial
unit in Triunfo, RS, Brazil with an annual production capacity of
200,000 tons, and will produce High Density Polyethylene (HDPE)
and Low Density Polyethylene (LDPE) from bioethanol derived from
sugarcane - non-grain feedstock.

The world trend for CO2 emission reductions has boosted public
demand towards bio-based plastics recently.  Green polyethylene
made from sugarcane ethanol can also contribute significantly to
CO2 emission reductions.  At the same time, green polyethylene has
remarkable advantages over existing bio-based plastics.  It is
possible to use existing processing equipments and recycling
systems since green polyethylene has the same characteristics as
traditional petroleum-based polyethylene.  Therefore, the plastic
can be applied to products in various fields, such as bottles,
film, plastic bags, containers, personal-hygiene articles and
automotive parts.

Toyota Tsusho have joined Braskem’s R&D program on green plastics,
which produced the world’s 1st certified 100% green polyethylene
based on sugarcane ethanol at the "Braskem Technology and
Innovation Center" in Triunfo, RS, Brazil last year. A radiocarbon
dating laboratory, Beta Analytic, Inc., conducted the
certification by the method defined as ASTM
D6866.

The green polyethylene shall be exhibited and introduced at
"BioJapan 2008", the most renowned bio-related event held in
Japan, on October 15-17, 2008 at "Pacifico Yokohama", Yokohama,
Japan, and Braskem will give a seminar during the event.

Braskem S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins
producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products.  The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.

TCR-LA reported on Dec. 10, 2007, that Standard & Poor's raised
Braskem's long-term corporate credit to 'BB+' from 'BB'.

On Nov. 28, 2007, Moody's Investors Service assigned the company
a corporate family rating of Ba1 on the agency's global scale.


BRASKEM SA: Develops Renewable Sugar Cane Polypropylene Polymer
---------------------------------------------------------------
Braskem S.A. has produced the first pilot scale samples of its
"green" polypropylene polymer from its previously announced sugar
cane-to-ethanol bioplastics technology, PRW.com reports.

According to the report, the company is submitting the new PP
polymer to the US laboratory Beta Analytic for carbon isotope
analysis, which has given it a 100% renewable origin
classification.

Braskem, the report says, described the development of a
renewably-sourced PP as a promising development in the bioplastics
marketplace because it offers the same properties and
characteristics as traditional oil derived alternatives.  However,
the company has not set a date for introduction of the resin into
the market.

Antonio Morschbacker, who is responsible for Braskem’s green
polymer technologies, told PRW.com that the route to production of
PP from sugar cane ethanol is "not so obvious" as that for
production of PE.  As a result, the company will not be disclosing
details of the process at this stage.

Braskem S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins
producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products.  The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.

TCR-LA reported on Dec. 10, 2007, that Standard & Poor's raised
Braskem's long-term corporate credit to 'BB+' from 'BB'.

On Nov. 28, 2007, Moody's Investors Service assigned the company
a corporate family rating of Ba1 on the agency's global scale.


COSAN SA: Parauna Unit Bags Contract for BRL670 Million
-------------------------------------------------------
Cosan S.A. Industria e Comercio's subsidiary Cosan Centroeste S.A.
Acucar e Alcool won the 7th New Energy Auction held on Sept. 30,
2008.

A biomass cogeneration project will be commercially operated at
the Parauna unit for a period of 15 years starting in 2013, for a
total of 4,599 GWh with present value of approximately
BRL670 million, adjusted by the IPCA inflation index.  The
cogeneration plant will involve investment of approximately BRL190
million.

COSAN believed that the results achieved in this energy auction
will contribute to the greater insertion of biomass in Brazil’s
energy matrix.

Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e
Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and
ethanol.  The company cultivates harvests and processes sugarcane,
the main raw material for sugar and ethanol manufacturing.  With
17 manufacturing units and two port terminals in the city of
Santos, Cosan says it is currently the largest individual group in
the world in terms of sugarcane byproducts manufacturing.  With
capacity to grind more than 40 million tonnes of sugarcane, the
group represents 12% of overall production in the mid-southern
region of the country.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2008, Moody's downgraded Cosan SA's ratings to Ba3 from
Ba2 on the global scale, and at the same time downgraded Cosan's
Brazilian national scale rating to A3.br from A1.br.  The
downgrade concludes the review for possible downgrade initiated on
April 25, 2008, after the announcement that Cosan had entered into
a share purchase agreement with ExxonMobil International Holdings
B.V. to acquire ExxonMobil's fuel distribution and lubricant
assets in Brazil (Esso).  The outlook for all ratings is negative.

TCR-LA related on April 28, 2008, that Standard & Poor's Ratings
Services placed its 'BB' long-term corporate credit rating on
Cosan S.A. Industria e Comercio, as well as its 'BB' rating on
the company's outstanding debt issues, which amount to
US$950 million, on CreditWatch with negative implications.  At
the same time, S&P placed its 'BB' long-term corporate credit
rating on Bermudas-based sugar-cane processor Cosan Ltd. on
CreditWatch with negative implications.


DELPHI CORP: Court OKs Services and Restructuring Deals With GM
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York on  
Sept. 26, 2008, entered an order approving the amendments to the
Global Services Agreement and the Master Restructuring Agreement
between General Motors Corp. and Delphi Corporation.

A full-text copy of the Amended GSA and MRA is available for free
at http://ResearchArchives.com/t/s?3330

Delphi obtained approval of their new deals with General Motors
after the Official Committee of Unsecured Creditors agreed to
withdraw its objections.

               PBGC, et al., Support New GM Deal

Various parties-in-interest, including the Fiduciary Counselors,  
Inc., and the Pension Benefit Guaranty Corp., have conveyed their
support for the amendments to GSA and MRA.

Fiduciary Counselors, Inc., the appointed fiduciary charged to
assure that the Debtors fulfill their obligations with respect to
required contributions to their Hourly-Rate Pension Plan,
believes that the latest amendments would aid the Debtors' exit
from bankruptcy.  FCI filed a proofs of claim on the HRP's behalf
for legally required contributions owed to the HRP.  The Claim
amount through Dec. 31, 2007, was identified as US$2,600,000,000.  
FCI has recently conferred with the HRP's actuaries and confirmed
that the amount required to meet the statutory minimum funding
requirements for the HRP as of Sept. 30, 2008, will be in an
amount ranging from US$2,100,000,000 to US$2,300,000,000.

William H. Schorling, Esq., at Buchanan Ingersoll & Rooney PC, in
New York, noted that GM and Delphi have obtained a private letter
ruling from the U.S. Internal Revenue Service that the proposed
414(l) Transfer pursuant to the Amended GSA and MRA will
eliminate Delphi's obligations for all contributions due on or
before Sept. 30, 2008.  Effectuating the 414(l) Transfer will
substantially satisfy HRP's Claim -- HRP will also still have
claims for any unpaid amounts due in the future -- making the
Debtors' emergence from chapter 11 more viable, Mr. Schorling
stated.  He added that implementing the 414(l) Transfer will
avoid application of the provisions of the Pension Protection Act
to the unfunded HRP obligations, again aiding the Debtors' exit
from bankruptcy.  Finally, the 414(l) Transfer, according to
Mr. Schorling, should mitigate the risk that the PBGC would take
steps to terminate the HRP.

Representing the Pension Benefit Guarantee Corporation, John A.
Menke, Esq., avers that the amended GSA and MRA constitute an
overwhelmingly positive solution to some of the Debtors' major
pension obligations and eliminates what might be insurmountable
obstacles to a successful reorganization.  If the 414(l) transfer
occurs by Sept. 29, 2008, major benefits flow to the Debtors,
certain non-Debtor affiliates and the unsecured creditors.  
Approval of the new deal, according to Mr. Menke, will relieve
the Debtors of billions of dollars of current liability for
contributions that would otherwise be due to their Hourly Plan
and that would have to be satisfied, probably in Cash lump sum,
before the Debtors could emerge.  Because Delphi's existing
liability for contributions to the hourly Plan will be erased by
the 414(l) Transfer, as soon ass possible after the first
transfer date, the PBGC said it will relinquish more than
US$1,200,000,000 in liens filed against Delphi's foreign non-
Debtor affiliates.

The Official Committee of Equity Shareholders also said it is not
objecting to the new GM/Delphi deal.  However, it reserved its
right to object to the confirmation of any Chapter 11 plan filed
and any modification in the Debtors' Chapter 11 cases.  It sought
to keep its right to object to confirmation of any chapter 11
plan that does not provide appropriate value to existing equity
in exchange for the releases granted in favor of GM.

     Splinter Unions Wary of Fate of Employees and Retirees

The IUOE, IBEW and IAM -- the Splinter Unions -- informed Judge
Drain that they are fully cognizant of the external constraints
of Delphi, and that they do not object to the conceptual
framework underlying the Motion. However, the Splinter Unions
said they are not yet in a position to assess how the proposed
implementation of the amendments to the GSA and MRA will affect
the employees and retirees represented by the Splinter Unions.

The Splinter Unions say they fully expect the Debtor and GM to
provide the answers they need to be able to negotiate a timely
implementation agreement so that the employees and retirees they
represent are fairly treated.

The Splinter Unions are represented by:

    Barbara S. Mehlsack, Esq.,
    Gorlick Kravitz & Listhaus, P.C.,
    17 State Street
    New York, N.Y. 1004
    bmehlsack@gkllaw.com

                   Parties Object to New Deal  

(a) Senior Noteholders

CR Intrinsic Investors, LLC, and Highland Capital Management,
L.P., which collectively hold approximately US$495,000,000 in
principal amount of Delphi senior notes, noted that Debtors are
seeking approval of the "most important and far-reaching
settlement in this case and the fixing of central elements of a
plan of reorganization", on just 10 days' notice, without
providing the most basic information necessary for the Court to
evaluate the claims to be settled, and without any pretense of
adhering to the fundamental protections to which creditors are
entitled in connection with a plan of reorganization.

CR Intrinsic and Highland consequently asked the Court to deny
Delphi the authority to implement the amended GSA and MRA in
order to prevent the Debtors from entering into sweeping and far-
reaching agreements with GM that would irrevocably impact the
outcome of the chapter 11 cases and in effect dictate the terms
of any plan of reorganization.

Isaac M. Pachulski, Esq., at Stutman, Treister & Glatt P.C., in
Los Angeles, California, averred that Delphi is seeking approval
of what amounts to a sub rosa plan of reorganization, without
providing the kind of disclosure and procedural and substantive
protection to which creditors are entitled in connection with the
confirmation of a plan, and without any creditor vote.  According
to Mr. Pachulski, a sampling of just some of the provisions of
the Amended GSA highlights how pervasively these agreements will
dictate the terms of any plan and the ultimate outcome of the
Chapter 11 cases:

  (1) the Amended GSA includes comprehensive provisions for the
      allowance and treatment of GM's claims under any plan of
      reorganization.  Among other things,

       -- GM agrees to assume certain pension liability which
          is primarily rooted in prepetition services of
          employees who worked for GM at the time of the Delphi
          spin-off in exchange for an administrative claim.  Not
          only does an administrative claim entitle GM to
          priority payment but it also handcuffs the Debtors in
          treating this claim under a plan of reorganization.

       -- the Amended GSA also contemplates that GM would be
          entitled to an unsecured claim in the amount of
          US$2,500,000,000.  While GM would not be entitled to any
          recovery on the GM Unsecured Claim until other
          unsecured creditors receive at least a 20% recovery,
          both the GM Unsecured Claim and GM Admin. Claim would
          be entitled to specified, and special, treatment under
          any plan of reorganization pursuant to the Amended
          GSA.

       -- Distributions on account of the GM Claims are to be
          made by issuing preferred stock to GM which is not
          made available to any other constituent body of the
          Debtors, and the value of which remaining unknown.

  (2) The Amended GSA contemplates that the Debtors and
      their affiliates immediately release substantially all of
      their claims against GM and its affiliates on the
      effective date of the Amended GSA and reaffirm this
      release as of the date that the Debtors emerge from
      chapter 11.  The Amended GSA also requires that any
      future plan of reorganization provide that certain third
      parties, including the Creditors Committee, the Equity
      Committee, the DIP Agent, and the DIP Lenders, among
      others, release GM and its affiliates of substantially all
      of their claims against GM and its affiliates as of the
      Emergence Date.

  (3) The Amended GSA and Amended MRA leave little doubt that
      these agreements are to control and dictate the terms of
      any future plan of reorganization.  Specifically, the
      Amended GSA requires that any Delphi Plan contain
      provisions "clarifying that to the extent of any
      inconsistency between the terms of the Delphi Plan and
      [the Amended GSA] (solely as to the subject matters        
      addressed in [the Amended GSA]), the terms of [the Amended
      GSA] will govern."

(b) Indenture Trustee to Senior Notes

Wilmington Trust Company, indenture trustee for US$2,000,000,000
in Delphi senior notes and debentures, asked the Court to deny the
Debtors' motion to implement the amended GSA and MRA.

Edward M. Fox, Esq., at K&L Gates LLP, in New York, said Delphi
is seeking an unauthorized modification of the Debtors' confirmed
Plan of Reorganization, opposing Section 1127 of the Bankruptcy
Code, which not only applies to proposed modifications of actual
plan language, but also to proposed modifications of plan-related
documents, particularly where the documents [were] an integral
part of the reorganization plan and confirmation order.

Pursuant to Section 1127(b), the proponent of a plan or the
reorganized debtor may modify the plan at any time after
confirmation of the plan and before substantial consummation of
the Plan...  The Plan as modified under the this subsection
becomes the Plan only if the circumstances warrant the
modification and the court, after notice and a hearing, confirms
the plan as modified, under Section 1129.

Mr. Fox also related that the GSA and MRA may not be amended
without the approval of the Creditors Committee, as provided for
in Section 12.2 of the Plan.  He added that the Debtors' proposal
to grant a general release to GM at this time is contrary to the
best interests of creditors, particularly since the Debtors may
well need additional assistance and support from GM in order to
consummate a plan of reorganization and emerge from bankruptcy.

(c) Creditors Committee

The Official Committee of Unsecured Creditors also asked the
Court to deny the Motion, citing that the immediate release
granted to GM and the size of the allowed administrative expense
claim to GM violate Section 1127 of the Bankruptcy Code, as the
original GSA and MRA were exhibits to the Debtors' confirmed
Chapter 11 plan.

Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York,
said that if the proposed amendments to the GSA and the MRA are
approved, it will provide GM with extra ordinary consideration in
exchange for GM entering into transactions that are tremendously
beneficial to GM on its own.  These agreements represent no less
than the complete abdication by the Debtors of all control over
their destiny, without regard to the consequence to their
unsecured creditors, Mr. Rosenberg explained.

                  Delphi Addresses Objections

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, noted that although certain
parties allege that the Debtors are requesting relief that is
not in the best interests of the estates and in breach of their
fiduciary duties, only these parties filed objections that remain
unresolved:

   -- the International Union of Electronic, Electrical,
      Salaried, Machine and Furniture Workers-Communication
      Workers of America and the United Steelworkers of America,
      which are continuing to collectively bargain  
      implementation agreements with Delphi which would include        
      their consent to Amended GSA and MRA

   -- the official committee of unsecured creditors; Wilmington
      Trust Company, a member of the Creditors Committee; and CR
      Intrinsic and Highland, whose interests are represented by
      both the Creditors Committee and WTC.

The Debtors furnished a chart summarizing their responses to
objections, a copy of which is available for free at  
http://ResearchArchives.com/t/s?332f

The Debtors pointed out that their largest union, the United Auto
Workers, is not opposing to the Amended GSA and MRA.  They added
that the Equity Committee, Fiduciary Counselors, the PBGC, and
three unions have conveyed support or no objections.

Contrary to the assertions of the Creditors Committee, the
Amended GSA and MRA are the product of months of intense, arm's-
length bargaining between the Debtors and GM during which the
Debtors clearly considered various alternatives and options to
the Amended GSA and the Amended MRA, Mr. Butler clarified.

Mr. Butler recounted that when Appaloosa Management, L.P., and
the other Plan Investors failed to participate in the April 4,
2008 closing, Delphi's Board of Directors convened the first of
nine meetings that would be held between that date and the
Board's ultimate approval of the Amended GSA and MRA on Sept. 12.  
The Debtors also met with the Creditors Committee and held
discussions with GM about a modified plan of reorganization
framework involving a stand-alone plan to be funded internally
through adjustments to the recoveries of GM, general unsecured
creditors, and other stakeholders.  Those discussions concluded
on June 25, when GM informed Delphi that it was not willing to
provide the level of incremental financial support that would
have been necessary to make a standalone plan of reorganization
framework possible under the RPOR as it existed at that time.

Promptly after learning of GM's decision, Delphi began a process
of identifying and assessing a range of specific strategic
alternatives that included POR modifications providing for debt
financing and equity financing through a rights offering
backstopped by creditors or other potential investors.  In
addition, in mid-July 2008, Delphi and GM re-engaged in
constructive discussions that addressed, among other things, the
incremental financial support needed to make the revised POR a
realistic business plan that should attract interest in the
capital markets.  These efforts have resulted in a number of
significant developments since April 2008, all of them
accomplished against the backdrop of deteriorating macroeconomic
and automotive industry conditions and turbulence in the capital
markets, Mr. Butler detailed.

Throughout this process, Delphi's senior leadership acted with
diligence and in accordance with its fiduciary duty to maximize
the business enterprise value of Delphi and its affiliates and
thereby maximize the opportunities for recoveries by the Debtors'
stakeholders.  In doing so, Delphi, according to Mr. Butler,
considered the Creditors Committee's demand that the Debtors play
a high-stakes game of "chicken" with GM up through the 414(l)
Transfer deadline of Sept. 29, 2008, in the hopes that GM would
eventually agree to what the Creditors Committee was really
seeking --- a form of guaranteed recovery for general unsecured
creditors from GM.  Delphi ultimately rejected that approach
because it believed that obtaining GM's commitment to take on an
upsized 414(l) Transfer, assume prompt financial responsibility
for other post-employment benefits, and provide what the Debtors
concluded was the additional required support for the RPOR was,
on balance, more beneficial to the Debtors and their stakeholders
than holding out for more at the risk of losing everything.

Although the Creditors' Panel may not agree with their decisions
for failing to initiate litigation or use other "tools" against
GM, the Debtors believe that their decisions since April 4 are
sound.  Mr. Butler avers that both the timeline of events and the
breadth of support GM is providing through the Amended GSA and
the Amended MRA demonstrate that the Debtors did not "surrender"
or abdicate control of these cases to GM.  The Debtors firmly
believe that the Amended GSA and MRA are in the best interests of
the estates, and that entry into the agreements is fundamentally
necessary for any meaningful recovery to stakeholders.

        Creditors Committee Renews Support for GM/Delphi

Delphi creditors have concurred to proposed amendments to
agreements between the auto-parts maker and its former parent
General Motors Corp., removing one hindrance to Delphi's exit
from bankruptcy after almost three years, Bloomberg News reports.

Judge Drain approved the Amended GSA and MRA after Delphi reached
a deal with the Creditors Committee.  Mr. Butler, Delphi's
counsel, told the Court at the Sept. 25 hearing that the
Creditors Committee tentatively agreed to amendments that would
change how creditors are paid in the company's restructuring as
well as the terms of preferred stock GM would receive under an
amended POR.

The hearing was originally scheduled for Sept. 23, but was
adjourned for two days to allow the Debtors and the Creditors
Committee to reach common ground.

The Creditors Committee's counsel, Robert J. Rosenberg, Esq., at
Latham & Watkins LLP, in New York, confirmed the deal.  "All's
well that ends well," Mr. Rosenberg, after retracting the
Committee's objection to the new GM deals, which would allow
Delphi to exit bankruptcy.

"Today was a major milestone in these Chapter 11 cases,"
Mr. Butler said at the Sept. 25 hearing.

Delphi and the Creditors Committee engaged in negotiations
regarding the Amended GSA and MRA.  Possible scenarios, according
to Reuters, included GM accepting preferred Delphi shares, or
splitting administrative proceeds 50-50 with Delphi's unsecured
creditors.  The Debtors and GM reached a first amendment to the
Amended GSA on Sept. 25, 2008, which added these provisions:

   1. "GUC Percentage" shall mean .2 multiplied by the amount of
      allowed general unsecured claims (exclusive for all
      purposes of this section 1.57(a) of holders of TOPrS
      Claims, as defined in the 2007 Plan) divided by the sum of
      US$2.055 billion and the product of .2 and the amount of
      allowed general unsecured claims.

   2. If any condition for the receipt by GM of the preferred
      stock described in Section 4.04(c) of the GSA is not
      satisfied or waived by GM, holders of general      
      unsubordinated unsecured claims (exclusive for all
      purposes of this section 4.04(a) of TOPrS Claims, as
      defined in the 2007 Plan) shall receive 50% of all
      distributions that otherwise would be made to GM on
      account of its administrative expense claims allowed
      pursuant to this Section 4.04(a) to the extent necessary
      for such holders to receive an aggregate distribution,      
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, on account of their allowed general
      unsubordinated unsecured claims equal in value of up to
      US$300 million.

   3. If all conditions for the receipt by GM of the preferred
      stock described in the preceding sentence are satisfied,
      value equal (at Plan value) to an amount of up to the GUC
      Percentage multiplied by the stated value of the preferred
      stock otherwise distributable to GM under the first
      sentence of this Section 4.04(c) shall be distributed to        
      holders of general unsubordinated unsecured claims
      (exclusive for all purposes of this section 4.04(c) of
      holders of TOPrS Claims, as defined in the 2007 Plan) to
      the extent necessary to permit the holders of general
      unsubordinated unsecured claims to receive distributions,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, equal to 20% of their allowed general
      unsubordinated unsecured claims.  

   4. Any amendments to the Amended GSA or the Amended MRA that
      are materially adverse to the Debtors' estates shall
      require the consent of the Creditors Committee.

A full-text copy of the First Amendment to the Amended GSA is
available for free at http://ResearchArchives.com/t/s?332e

Delphi also posted a summary of indicative terms for the
preferred stock it will issue to GM pursuant to a POR.  The
summary provides that Shares of Series D Convertible Preferred
Stock, par value US$0.01 per share, with an aggregate initial
stated value of US$2,055,000,000 will be issued to GM.  Delphi may
pay cash to GM to reduce the number of shares issued at a price
equal to the Stated Value per share.  A copy of the Summary is
available for free at http://ResearchArchives.com/t/s?332d

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.

                      About Delphi Corp.

Based 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,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 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 confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Gets Court's Nod to Modify Employee and Union Deals
----------------------------------------------------------------
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York overruled all objections and granted the
request of Delphi Corp. to change effective dates of certain
Memorandum of Understanding provisions, and to negotiate the
changes with Delphi's unions.

Delphi may now begin talks with unionized workers on freezing
contributions to existing pension plans.  Judge Drain overruled
an objection by the Official Committee of Unsecured Creditors,
which said turmoil in the auto industry made it a bad time to
create a new benefit plan for senior managers.

The United Steelworkers of America says it is committed to
continued good-faith negotiations to reach a mutually acceptable
implementation agreement in connection with the Delphi's request.

Representing USW, Hanan B. Kolko, Esq., at Meyer, Souzzi, English
& Klein, P.C., informs the Court that the USW is cognizant of the
circumstances giving rise to the Debtors' request.  USW, however,
submitted a limited objection due to the short time which the it
has had to review and evaluate the implementation agreement and
engage in negotiations, and because the negotiations have not yet
resulted in an agreement.

Former Delphi retires who are former General Motors Corp.
executives submitted to the Court their concerns about the impact
the proposed modification of the GSA and MRA would bring to their
retirement and post-retirement benefits.  These retirees are
especially apprehensive that they will be excluded from the
Supplemental Executive Retirement Program, and they ask the Court
for the (i) continuation of their SERP payments or (ii) fairly
determined cash settlement for their benefits.

The Delphi retirees are, among others, David J. Bastin, Allen W.
Besey, Garry J. Brooks, Larry F. Cracaft, Robert L. Fatzinger,
Edward A. Golick, James B. Hegstrom, Weslay Don Helm, Robert P.
Hoffman, John R. Holmes, William M. Jenkins, Michael L. Julius,
Larry D. Kesler, Bruce E. Kirkhan, John F. Lambert, Michael R.
Lippa, Ronald R. Malanga, Terry L. Marquis, Dennis Mead, John R.
Neville, Jacob Pikaart, Jerry Shafer, Francis H. Titzenhaler,
Charles L. Rose, Allan B. Rowley, Patrick J. Straney, Michael K.
Stout, Ronald Turkett, Wyne J. Varady, and Kenneth G. Wingeier.

Dawn M. Eaton, a salaried worker at Delphi, objected to service
costs and aspects of the pension freeze and follow-on plans.  She
pointed out that the (i) service cost for the Motion was
frivolous expense of US$4,000,000, and (ii) the Defined
Contribution Plan should be an administrative expense claim.

         Cred. Committee Supports Pension Plan Freeze

The Debtors noted that they have received only four timely filed
objections out of more than 12,000 parties affected by their
request for authority to modify the hourly and salaried pension
programs.

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, had informed the Court that while
the Committee objected to the Motion, it actually concedes its
support for the freezing of the Debtors' pension plans and most
aspects of the follow-on plans.  The Creditors Committee, he
points out, also concedes that the relief requested will save the
estates money, with the save and replacement package saving
millions of dollars per quarter.  

Mr. Butler added that the International Union of Electronic,
Electrical, Salaried, Machine and furniture Workers-Communication
Workers of America have raised no substantive issue in its
objection, and the Debtors fulfilled the IUE-CSA's discovery
request.  The Debtors believe there's no need for them to address
the IUE-CWA objection; the Debtors instead request the Court to
strike the IUE-CWA objection to the extent that it is not
withdrawn prior to the hearing.

With regards to the objection asserted by Ms. Eaton, the Debtors
noted that the objection was untimely and assert that the Court
should strike or otherwise overrule that objection about the
objectors concern that the service costs exceeded US$4,000,000.  
For the sake of clarification, the Debtors declare that the
service costs were approximately US$400,000.

The Debtors pointed out that the cost is justified by the
millions of dollars in savings that would be achieved if the
Court approves the Motion.

According to Bloomberg News, Mr. Butler said, "[i]t would be
patently unreasonable" to create replacement plans for everyone
except 460 top executives."

                      About Delphi Corp.

Based 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,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 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 confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


FORD MOTOR: Repays US$1.5BB in Debt, Faces 3 Payment Obligations
--------------------------------------------------------------
Jeff Green at Bloomberg News reports that Ford Motor Co. said it
repaid US$1.5 billion in debt that was due Oct. 1, 2008.

As reported in the Troubled Company Reporter on Oct. 1, 2008,
analysts said that Ford Motor might repay the debt without tapping
a US$11.5 billion revolving credit line, which it secured as part
of its 2006 restructuring.  The US$1.5 billion debt includes:

    -- US$1 billion in five-year, unsecured bonds at the Ford
       Motor Credit Co. consumer-finance unit, which has a
       coupon interest rate of 5.625%, and was part of a
       September 2003 sale of US$3 billion in 5- and 10-year
       notes; and

    -- US$500 million in 12-year notes at Ford, which was "sold
       in 1996 and has an interest rate of 7.25%."

Bloomberg News relates that Ford Motor spokesperson Bill Collins
said in an interview that the payments were made in a "routine
transaction."

"It means they paid with cash.  If they had tapped their revolver,
they would have had to file something because it's material, and
we would know if they had come to market for new debt," Bloomberg
quoted Morgan Keegan & Co. fixed-income analyst Pete Hastings as
saying.

Bloomberg News states that Standard & Poor's credit analyst Robert
Schulz said in an interview, "They have sufficient cash and
liquidity for this transaction."

According to data obtained from Bloomberg, Ford Motor faces three
more major payment obligations:

  -- US$4.3 billion due on Jan. 12, 2009;
  -- US$1.5 billion due on May 22, 2009; and
  -- US$5.0 billion due on Oct. 28, 2009

            Government's US$25 Billion Bailout Loans

Heidi M. Moore at The Wall Street Journal relates that President
George W. Bush signed on Sept. 30, 2008, a
US$25 billion in bailout loans to help automakers produce more
fuel-
efficient vehicles.  According to Ms. Moore, automakers can secure
the loans at about half the going market rate.  Ford Motor, along
with Chrysler LLC and General Motors won't have to repay the loans
for five years, Ms. Moore states.

According to Mike Ramsey and Alan Ohnsman at Bloomberg News, Ford
Motor's car and truck sales dropped 35% to 120,788 in September
2008, compared to 184,612 in September 2007, as tighter credit
scared off consumers.

Alex Ortolani at Bloomberg News relates that Ford Motor it told
its 2,000 suppliers to understand "what they're doing inside their
operations that could be funded" and figure out what programs
would make them eligible for part of the US$25 billion loans.  

According to Bloomberg News, Ford Motor sees the loans as a chance
to strengthen a supply base that has suffered this year due to low
auto sales, high raw-material costs, and a tight credit market.

                     About Ford Motor Co.

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
Aug. 21, 2008, Standard & Poor's Ratings Services said its
ratings on Ford Motor Co. (B-/Negative/--) and related entities
are not affected by Ford's intention to use up to US$500 million
of new common equity issuance to make purchases of Ford Motor
Credit Co.'s debt.  Debt due before 2012 will be the focus of
the repurchases.  Any such purchases in the open market or in
private transactions will likely be at a discount from par,
given current prices.  S&P views such purchases as a modest
positive for Ford's consolidated credit quality.

The TCR-LA reported Aug. 6, 2008, that Fitch Ratings downgraded
the issuer default rating of Ford Motor Company and Ford Motor
Credit Company LLC to 'B-' from 'B'.  The Rating Outlook remains
Negative.  The downgrade reflects these: (i) the further
deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in
gas prices; (ii) portfolio deterioration at Ford Credit and
heightened concern regarding economic access to capital to
support financing requirements; and (iii) escalating commodity
costs that will remain a significant offset to cost reduction
efforts.


GENERAL MOTORS: Delphi Services & Restructuring Deals Approved
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York on  
Sept. 26, 2008, entered an order approving the amendments to the
Global Services Agreement and the Master Restructuring Agreement
between General Motors Corp. and Delphi Corporation.

A full-text copy of the Amended GSA and MRA is available for free
at http://ResearchArchives.com/t/s?3330

Delphi obtained approval of their new deals with General Motors
after the Official Committee of Unsecured Creditors agreed to
withdraw its objections.

               PBGC, et al., Support New GM Deal

Various parties-in-interest, including the Fiduciary Counselors,  
Inc., and the Pension Benefit Guaranty Corp., have conveyed their
support for the amendments to GSA and MRA.

Fiduciary Counselors, Inc., the appointed fiduciary charged to
assure that the Debtors fulfill their obligations with respect to
required contributions to their Hourly-Rate Pension Plan,
believes that the latest amendments would aid the Debtors' exit
from bankruptcy.  FCI filed a proofs of claim on the HRP's behalf
for legally required contributions owed to the HRP.  The Claim
amount through Dec. 31, 2007, was identified as US$2,600,000,000.  
FCI has recently conferred with the HRP's actuaries and confirmed
that the amount required to meet the statutory minimum funding
requirements for the HRP as of Sept. 30, 2008, will be in an
amount ranging from US$2,100,000,000 to US$2,300,000,000.

William H. Schorling, Esq., at Buchanan Ingersoll & Rooney PC, in
New York, noted that GM and Delphi have obtained a private letter
ruling from the U.S. Internal Revenue Service that the proposed
414(l) Transfer pursuant to the Amended GSA and MRA will
eliminate Delphi's obligations for all contributions due on or
before Sept. 30, 2008.  Effectuating the 414(l) Transfer will
substantially satisfy HRP's Claim -- HRP will also still have
claims for any unpaid amounts due in the future -- making the
Debtors' emergence from chapter 11 more viable, Mr. Schorling
stated.  He added that implementing the 414(l) Transfer will
avoid application of the provisions of the Pension Protection Act
to the unfunded HRP obligations, again aiding the Debtors' exit
from bankruptcy.  Finally, the 414(l) Transfer, according to
Mr. Schorling, should mitigate the risk that the PBGC would take
steps to terminate the HRP.

Representing the Pension Benefit Guarantee Corporation, John A.
Menke, Esq., avers that the amended GSA and MRA constitute an
overwhelmingly positive solution to some of the Debtors' major
pension obligations and eliminates what might be insurmountable
obstacles to a successful reorganization.  If the 414(l) transfer
occurs by Sept. 29, 2008, major benefits flow to the Debtors,
certain non-Debtor affiliates and the unsecured creditors.  
Approval of the new deal, according to Mr. Menke, will relieve
the Debtors of billions of dollars of current liability for
contributions that would otherwise be due to their Hourly Plan
and that would have to be satisfied, probably in Cash lump sum,
before the Debtors could emerge.  Because Delphi's existing
liability for contributions to the hourly Plan will be erased by
the 414(l) Transfer, as soon ass possible after the first
transfer date, the PBGC said it will relinquish more than
US$1,200,000,000 in liens filed against Delphi's foreign non-
Debtor
affiliates.

The Official Committee of Equity Shareholders also said it is not
objecting to the new GM/Delphi deal.  However, it reserved its
right to object to the confirmation of any Chapter 11 plan filed
and any modification in the Debtors' Chapter 11 cases.  It sought
to keep its right to object to confirmation of any chapter 11
plan that does not provide appropriate value to existing equity
in exchange for the releases granted in favor of GM.

     Splinter Unions Wary of Fate of Employees and Retirees

The IUOE, IBEW and IAM -- the Splinter Unions -- informed Judge
Drain that they are fully cognizant of the external constraints
of Delphi, and that they do not object to the conceptual
framework underlying the Motion. However, the Splinter Unions
said they are not yet in a position to assess how the proposed
implementation of the amendments to the GSA and MRA will affect
the employees and retirees represented by the Splinter Unions.

The Splinter Unions say they fully expect the Debtor and GM to
provide the answers they need to be able to negotiate a timely
implementation agreement so that the employees and retirees they
represent are fairly treated.

The Splinter Unions are represented by:

    Barbara S. Mehlsack, Esq.,
    Gorlick Kravitz & Listhaus, P.C.,
    17 State Street
    New York, N.Y. 1004
    bmehlsack@gkllaw.com

                   Parties Object to New Deal  

(a) Senior Noteholders

CR Intrinsic Investors, LLC, and Highland Capital Management,
L.P., which collectively hold approximately US$495,000,000 in
principal amount of Delphi senior notes, noted that Debtors are
seeking approval of the "most important and far-reaching
settlement in this case and the fixing of central elements of a
plan of reorganization", on just 10 days' notice, without
providing the most basic information necessary for the Court to
evaluate the claims to be settled, and without any pretense of
adhering to the fundamental protections to which creditors are
entitled in connection with a plan of reorganization.

CR Intrinsic and Highland consequently asked the Court to deny
Delphi the authority to implement the amended GSA and MRA in
order to prevent the Debtors from entering into sweeping and far-
reaching agreements with GM that would irrevocably impact the
outcome of the chapter 11 cases and in effect dictate the terms
of any plan of reorganization.

Isaac M. Pachulski, Esq., at Stutman, Treister & Glatt P.C., in
Los Angeles, California, averred that Delphi is seeking approval
of what amounts to a sub rosa plan of reorganization, without
providing the kind of disclosure and procedural and substantive
protection to which creditors are entitled in connection with the
confirmation of a plan, and without any creditor vote.  According
to Mr. Pachulski, a sampling of just some of the provisions of
the Amended GSA highlights how pervasively these agreements will
dictate the terms of any plan and the ultimate outcome of the
Chapter 11 cases:

  (1) the Amended GSA includes comprehensive provisions for the
      allowance and treatment of GM's claims under any plan of
      reorganization.  Among other things,

       -- GM agrees to assume certain pension liability which
          is primarily rooted in prepetition services of
          employees who worked for GM at the time of the Delphi
          spin-off in exchange for an administrative claim.  Not
          only does an administrative claim entitle GM to
          priority payment but it also handcuffs the Debtors in
          treating this claim under a plan of reorganization.

       -- the Amended GSA also contemplates that GM would be
          entitled to an unsecured claim in the amount of
          US$2,500,000,000.  While GM would not be entitled to any
          recovery on the GM Unsecured Claim until other
          unsecured creditors receive at least a 20% recovery,
          both the GM Unsecured Claim and GM Admin. Claim would
          be entitled to specified, and special, treatment under
          any plan of reorganization pursuant to the Amended
          GSA.

       -- Distributions on account of the GM Claims are to be
          made by issuing preferred stock to GM which is not
          made available to any other constituent body of the
          Debtors, and the value of which remaining unknown.

  (2) The Amended GSA contemplates that the Debtors and
      their affiliates immediately release substantially all of
      their claims against GM and its affiliates on the
      effective date of the Amended GSA and reaffirm this
      release as of the date that the Debtors emerge from
      chapter 11.  The Amended GSA also requires that any
      future plan of reorganization provide that certain third
      parties, including the Creditors Committee, the Equity
      Committee, the DIP Agent, and the DIP Lenders, among
      others, release GM and its affiliates of substantially all
      of their claims against GM and its affiliates as of the
      Emergence Date.

  (3) The Amended GSA and Amended MRA leave little doubt that
      these agreements are to control and dictate the terms of
      any future plan of reorganization.  Specifically, the
      Amended GSA requires that any Delphi Plan contain
      provisions "clarifying that to the extent of any
      inconsistency between the terms of the Delphi Plan and
      [the Amended GSA] (solely as to the subject matters        
      addressed in [the Amended GSA]), the terms of [the Amended
      GSA] will govern."

(b) Indenture Trustee to Senior Notes

Wilmington Trust Company, indenture trustee for US$2,000,000,000
in Delphi senior notes and debentures, asked the Court to deny the
Debtors' motion to implement the amended GSA and MRA.

Edward M. Fox, Esq., at K&L Gates LLP, in New York, said Delphi
is seeking an unauthorized modification of the Debtors' confirmed
Plan of Reorganization, opposing Section 1127 of the Bankruptcy
Code, which not only applies to proposed modifications of actual
plan language, but also to proposed modifications of plan-related
documents, particularly where the documents [were] an integral
part of the reorganization plan and confirmation order.

Pursuant to Section 1127(b), the proponent of a plan or the
reorganized debtor may modify the plan at any time after
confirmation of the plan and before substantial consummation of
the Plan...  The Plan as modified under the this subsection
becomes the Plan only if the circumstances warrant the
modification and the court, after notice and a hearing, confirms
the plan as modified, under Section 1129.

Mr. Fox also related that the GSA and MRA may not be amended
without the approval of the Creditors Committee, as provided for
in Section 12.2 of the Plan.  He added that the Debtors' proposal
to grant a general release to GM at this time is contrary to the
best interests of creditors, particularly since the Debtors may
well need additional assistance and support from GM in order to
consummate a plan of reorganization and emerge from bankruptcy.

(c) Creditors Committee

The Official Committee of Unsecured Creditors also asked the
Court to deny the Motion, citing that the immediate release
granted to GM and the size of the allowed administrative expense
claim to GM violate Section 1127 of the Bankruptcy Code, as the
original GSA and MRA were exhibits to the Debtors' confirmed
Chapter 11 plan.

Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York,
said that if the proposed amendments to the GSA and the MRA are
approved, it will provide GM with extra ordinary consideration in
exchange for GM entering into transactions that are tremendously
beneficial to GM on its own.  These agreements represent no less
than the complete abdication by the Debtors of all control over
their destiny, without regard to the consequence to their
unsecured creditors, Mr. Rosenberg explained.

                  Delphi Addresses Objections

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, noted that although certain
parties allege that the Debtors are requesting relief that is
not in the best interests of the estates and in breach of their
fiduciary duties, only these parties filed objections that remain
unresolved:

   -- the International Union of Electronic, Electrical,
      Salaried, Machine and Furniture Workers-Communication
      Workers of America and the United Steelworkers of America,
      which are continuing to collectively bargain  
      implementation agreements with Delphi which would include        
      their consent to Amended GSA and MRA

   -- the official committee of unsecured creditors; Wilmington
      Trust Company, a member of the Creditors Committee; and CR
      Intrinsic and Highland, whose interests are represented by
      both the Creditors Committee and WTC.

The Debtors furnished a chart summarizing their responses to
objections, a copy of which is available for free at  
http://ResearchArchives.com/t/s?332f

The Debtors pointed out that their largest union, the United Auto
Workers, is not opposing to the Amended GSA and MRA.  They added
that the Equity Committee, Fiduciary Counselors, the PBGC, and
three unions have conveyed support or no objections.

Contrary to the assertions of the Creditors Committee, the
Amended GSA and MRA are the product of months of intense, arm's-
length bargaining between the Debtors and GM during which the
Debtors clearly considered various alternatives and options to
the Amended GSA and the Amended MRA, Mr. Butler clarified.

Mr. Butler recounted that when Appaloosa Management, L.P., and
the other Plan Investors failed to participate in the April 4,
2008 closing, Delphi's Board of Directors convened the first of
nine meetings that would be held between that date and the
Board's ultimate approval of the Amended GSA and MRA on Sept. 12.  
The Debtors also met with the Creditors Committee and held
discussions with GM about a modified plan of reorganization
framework involving a stand-alone plan to be funded internally
through adjustments to the recoveries of GM, general unsecured
creditors, and other stakeholders.  Those discussions concluded
on June 25, when GM informed Delphi that it was not willing to
provide the level of incremental financial support that would
have been necessary to make a standalone plan of reorganization
framework possible under the RPOR as it existed at that time.

Promptly after learning of GM's decision, Delphi began a process
of identifying and assessing a range of specific strategic
alternatives that included POR modifications providing for debt
financing and equity financing through a rights offering
backstopped by creditors or other potential investors.  In
addition, in mid-July 2008, Delphi and GM re-engaged in
constructive discussions that addressed, among other things, the
incremental financial support needed to make the revised POR a
realistic business plan that should attract interest in the
capital markets.  These efforts have resulted in a number of
significant developments since April 2008, all of them
accomplished against the backdrop of deteriorating macroeconomic
and automotive industry conditions and turbulence in the capital
markets, Mr. Butler detailed.

Throughout this process, Delphi's senior leadership acted with
diligence and in accordance with its fiduciary duty to maximize
the business enterprise value of Delphi and its affiliates and
thereby maximize the opportunities for recoveries by the Debtors'
stakeholders.  In doing so, Delphi, according to Mr. Butler,
considered the Creditors Committee's demand that the Debtors play
a high-stakes game of "chicken" with GM up through the 414(l)
Transfer deadline of Sept. 29, 2008, in the hopes that GM would
eventually agree to what the Creditors Committee was really
seeking --- a form of guaranteed recovery for general unsecured
creditors from GM.  Delphi ultimately rejected that approach
because it believed that obtaining GM's commitment to take on an
upsized 414(l) Transfer, assume prompt financial responsibility
for other post-employment benefits, and provide what the Debtors
concluded was the additional required support for the RPOR was,
on balance, more beneficial to the Debtors and their stakeholders
than holding out for more at the risk of losing everything.

Although the Creditors' Panel may not agree with their decisions
for failing to initiate litigation or use other "tools" against
GM, the Debtors believe that their decisions since April 4 are
sound.  Mr. Butler avers that both the timeline of events and the
breadth of support GM is providing through the Amended GSA and
the Amended MRA demonstrate that the Debtors did not "surrender"
or abdicate control of these cases to GM.  The Debtors firmly
believe that the Amended GSA and MRA are in the best interests of
the estates, and that entry into the agreements is fundamentally
necessary for any meaningful recovery to stakeholders.

        Creditors Committee Renews Support for GM/Delphi

Delphi creditors have concurred to proposed amendments to
agreements between the auto-parts maker and its former parent
General Motors Corp., removing one hindrance to Delphi's exit
from bankruptcy after almost three years, Bloomberg News reports.

Judge Drain approved the Amended GSA and MRA after Delphi reached
a deal with the Creditors Committee.  Mr. Butler, Delphi's
counsel, told the Court at the Sept. 25 hearing that the
Creditors Committee tentatively agreed to amendments that would
change how creditors are paid in the company's restructuring as
well as the terms of preferred stock GM would receive under an
amended POR.

The hearing was originally scheduled for Sept. 23, but was
adjourned for two days to allow the Debtors and the Creditors
Committee to reach common ground.

The Creditors Committee's counsel, Robert J. Rosenberg, Esq., at
Latham & Watkins LLP, in New York, confirmed the deal.  "All's
well that ends well," Mr. Rosenberg, after retracting the
Committee's objection to the new GM deals, which would allow
Delphi to exit bankruptcy.

"Today was a major milestone in these Chapter 11 cases,"
Mr. Butler said at the Sept. 25 hearing.

Delphi and the Creditors Committee engaged in negotiations
regarding the Amended GSA and MRA.  Possible scenarios, according
to Reuters, included GM accepting preferred Delphi shares, or
splitting administrative proceeds 50-50 with Delphi's unsecured
creditors.  The Debtors and GM reached a first amendment to the
Amended GSA on Sept. 25, 2008, which added these provisions:

   1. "GUC Percentage" shall mean .2 multiplied by the amount of
      allowed general unsecured claims (exclusive for all
      purposes of this section 1.57(a) of holders of TOPrS
      Claims, as defined in the 2007 Plan) divided by the sum of
      US$2.055 billion and the product of .2 and the amount of
      allowed general unsecured claims.

   2. If any condition for the receipt by GM of the preferred
      stock described in Section 4.04(c) of the GSA is not
      satisfied or waived by GM, holders of general      
      unsubordinated unsecured claims (exclusive for all
      purposes of this section 4.04(a) of TOPrS Claims, as
      defined in the 2007 Plan) shall receive 50% of all
      distributions that otherwise would be made to GM on
      account of its administrative expense claims allowed
      pursuant to this Section 4.04(a) to the extent necessary
      for such holders to receive an aggregate distribution,      
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, on account of their allowed general
      unsubordinated unsecured claims equal in value of up to
      US$300 million.

   3. If all conditions for the receipt by GM of the preferred
      stock described in the preceding sentence are satisfied,
      value equal (at Plan value) to an amount of up to the GUC
      Percentage multiplied by the stated value of the preferred
      stock otherwise distributable to GM under the first
      sentence of this Section 4.04(c) shall be distributed to        
      holders of general unsubordinated unsecured claims
      (exclusive for all purposes of this section 4.04(c) of
      holders of TOPrS Claims, as defined in the 2007 Plan) to
      the extent necessary to permit the holders of general
      unsubordinated unsecured claims to receive distributions,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, equal to 20% of their allowed general
      unsubordinated unsecured claims.  

   4. Any amendments to the Amended GSA or the Amended MRA that
      are materially adverse to the Debtors' estates shall
      require the consent of the Creditors Committee.

A full-text copy of the First Amendment to the Amended GSA is
available for free at http://ResearchArchives.com/t/s?332e

Delphi also posted a summary of indicative terms for the
preferred stock it will issue to GM pursuant to a POR.  The
summary provides that Shares of Series D Convertible Preferred
Stock, par value US$0.01 per share, with an aggregate initial
stated value of US$2,055,000,000 will be issued to GM.  Delphi may
pay cash to GM to reduce the number of shares issued at a price
equal to the Stated Value per share.  A copy of the Summary is
available for free at http://ResearchArchives.com/t/s?332d

                      About Delphi Corp.

Based 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,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 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 confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of
US$15.4 billion over net sales and revenue of US$38.1 billion,
compared to a net income of US$891.0 million over net sales and
revenue of US$46.6 billion for the same period last year.


ODEBRECHT SA: Settles Feud with Ecuadorean Government
-----------------------------------------------------
Construtora Norberto Odebrecht SA said on Wednesday, Oct. 1, 2008,  
it accepted terms set by the Ecuadorean government to resolve a
dispute over a faulty hydroelectric plant, Reuters reports.  
Ecuador expelled the firm last week and seized US$800 million
worth of projects, including an airport, two hydroelectric plants
and a rural irrigation project, Reuters relates.

Based on the report, Ecuador's President, Rafael Correa, accused
that the company built a dam that is not functioning because of
damaged machinery.

The company agreed to pay for dam repairs and to extend a
guarantee on the project by one year and on the repairs by five
years, the report notes, citing a company statement.  Odebrecht
would also make a deposit of US$43.8 million until an independent
international audit decided whether it owed further penalties,
Reuter says.

According to Reuters, Mr. Correa said at a meeting with Brazil,
Bolivia and Venezuela counterparts in the City of Manaus that he
would decide in coming days on Odebrecht's response, but that the
company was still banned from the Andean country.  "We are not
negotiating, we are demanding justice and the country's rights to
be respected," Mr. Correa stressed, Reuters reports.

In late September, Mr. Correa threatened to not pay back a
US$200 million loan from Brazil linked to Odebrecht, Reuters adds.

                         About Odebrecht

Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.  
Construtora Norberto is the world's largest builder of
hydroelectric plants, of sanitary and storm sewers, water
treatment and desalination plants, transmission lines and
aqueducts.  The Group's main businesses are heavy engineering
and construction based in Rio de Janeiro, Brazil, and Braskem
S.A., its chemicals/petrochemicals company, based in Sao Paulo,
Brazil.

                          *     *    *

As reported by the Troubled Company Reporter-Latin America on
April 10, 2008, Standard & Poor's Ratings Services assigned its
'BB' rating to the proposed senior unsecured notes issuance of
Odebrecht Finance Ltd.  The notes total US$200 million for a term
of up to 10 years and have an unconditional and irrevocable
guarantee by Brazil-based heavy engineering and construction (E&C)
company, Construtora Norberto Odebrecht S.A. (CNO; BB/Stable/--).  
The notes will rank equally with the other senior unsecured
indebtedness of Construtora Norberto.


ODEBRECHT SA: Ecuador May Default on US$200 Million Loan
--------------------------------------------------------
Ecuador President Rafael Correa said he is mulling whether or not
to repay a US$200 million loan granted by Brazilian-owned BNDES
aka Banco Nacional de Desenvolvimento Economico e Social SA to
Construtora Norberto Odebrecht SA, various reports say.  The
president said that he reviewed a final audit report of Ecuador's
foreign debt to help him decide.  The debt was used by Odebrecht
to build an US$338 million San Francisco hydroelectric plant in
Ecuador.

BBC News writes that four Odebrecht officials have been banned
from leaving Ecuador.

Reports relate that President Correa had ordered Odebrecht to
cease operations in Ecuador.  He sent troops to take over the
company's construction sites, where US$800 million of projects
were underway.  The president asserted that there were
irregularities in the US$200 million, which was given to the
company but appears as a loan from Brazil to Ecuador.

Bloomberg News writes that Odebrecht is the first foreign company
expelled by Mr. Correa.

Odebrecht's projects in Ecuador include a small regional airport,
two hydroelectric plants and a rural irrigation project.

Since he took office in January 2007, reports say Mr. Correa
threatened non-repayment of various foreign debts he thinks were
contracted unfairly by prior governments.

Mr. Correa, according to the reports, said he loves Brazil but
added that what Odebrecht did to Ecuador was terrible.

                      About Banco Nacional

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

                          *     *     *

Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services.  The ratings were assigned in August and May
2007.

                         About Odebrecht

Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.  
Construtora Norberto is the world's largest builder of
hydroelectric plants, of sanitary and storm sewers, water
treatment and desalination plants, transmission lines and
aqueducts.  The Group's main businesses are heavy engineering
and construction based in Rio de Janeiro, Brazil, and Braskem
S.A., its chemicals/petrochemicals company, based in Sao Paulo,
Brazil.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
April 10, 2008, Standard & Poor's Ratings Services assigned its
'BB' rating to the proposed senior unsecured notes issuance of
Odebrecht Finance Ltd.  The notes total US$200 million for a term
of up to 10 years and have an unconditional and irrevocable
guarantee by Brazil-based heavy engineering and construction (E&C)
company, Construtora Norberto Odebrecht S.A. (CNO; BB/Stable/--).  
The notes will rank equally with the other senior unsecured
indebtedness of Construtora Norberto.


* BRAZIL: Cushions Economy from U.S. Crisis with US$7 Billion
-------------------------------------------------------------
Brazzil Magazine reported on Sept. 25, 2008, that the Brazilian
monetary authorities eased rules on banks' reserve requirements to
inject liquidity and preserve Brazil from the impacts of the
United States financial crisis.  The measures will add BRL13.2
billion (US$ 7.16 billion) to the financial system, the Central
Bank said.

The Central Bank delayed the introduction of higher rates for
mandatory deposits from leasing companies by two months, according
to Brazzil Mag.  The Central Bank also raised the threshold on
exemptions for cash, time and savings deposits, the report
relates, citing an e-mailed statement.

According to the report, the measure reverses part of the Central
bank's efforts to slow lending growth that's fueling domestic
demand and stoking inflation.  Policy makers began phasing in
reserve requirements on cash deposits from lease underwriters for
the first time in May that removed as much as BRL40 billion from
credit markets.  In Brazil, leases are commonly used as consumer
loans.

Under the rules, Brazzil Mag writes, a reserve requirement of 20%
of cash deposits from lease underwriters will take effect January
16, two months after the original schedule.  The reserve
requirement will increase to 25% in March, according to the
Central bank.  Banks will only have to keep part of their cash,
time and savings deposits at the Central bank if the reserve
requirement exceeds BRL300 million.  The previous threshold was
BRL100 million.

During the middle of September, the Brazilian government fortified
its Economic and Social Development, BNDES bank with the purpose
of supporting Brazilian corporations that couldn't renew loans
from international banks over the current credit drought.  The
first transfer of funds to BNDES totaled US$2.8 billion but the
option remains open if Brazilian corporations "need to renew
credits."



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

ALPHAGEN ALTAI: Holding Final Shareholders Meeting on Oct. 10
-------------------------------------------------------------
The Alphagen Altai Fund Ltd. will hold its final shareholders
meeting on Oct. 10, 2008, at 9:00 a.m., at the offices of Close
Brothers (Cayman) Limited, 4th Floor Harbour Place, George Town,
Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

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

Alphagen Altai's shareholder decided on Aug. 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

               Linburgh Martin and John Sutlic
               c/o Close Brothers (Cayman) Limited
               Fourth Floor, Harbour Place
               P.O. Box 1034
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Kim Charaman
               Tel: (345) 949-8455
               Fax: (345) 949-8499


FUNC: Will Hold Final Shareholders Meeting on October 10
--------------------------------------------------------
FUNC will hold its final shareholders meeting on Oct. 10, 2008, at
8:30 a.m., at the offices of Close Brothers (Cayman) Limited, 4th
Floor Harbour Place, George Town, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

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

FUNC's shareholder decided on Aug. 13, 2008, to place the company
into voluntary liquidation under The Companies Law (2004 Revision)
of the Cayman Islands.

The liquidators can be reached at:

               Linburgh Martin and John Sutlic
               c/o Close Brothers (Cayman) Limited
               Fourth Floor, Harbour Place
               P.O. Box 1034
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Kim Charaman
               Tel: (345) 949-8455
               Fax: (345) 949-8499


GAMEO INTERNATIONAL: Final Shareholders Meeting Is on Oct. 9
------------------------------------------------------------
Gameo International Ltd. will hold its final shareholders meeting
on Oct. 9, 2008, at 9:00 a.m., at the Peninsula Beijing Hotel
located at 8 Goldfish Lane, Beijing Wangfujing, China.

The accounting of the wind-up process will be taken up during the
meeting.

Gameo International's shareholder agreed on Oct. 18, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

               Randy Pearce and Paul Finkelstein
               c/o Regis Corporation
               7201 Metro Blvd., Minneapolis
               Minnesota, USA


GARTMORE LIMITED: Sets Final Shareholders Meeting on Oct. 10
------------------------------------------------------------
The Gartmore Limited Issue Irish Growth Fund Ltd. will hold its
final shareholders meeting on Oct. 10, 2008, at 9:30 a.m., at the
offices of Close Brothers (Cayman) Limited, 4th Floor Harbour
Place, George Town, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

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

Gartmore Limited's shareholder decided on Aug. 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

               Linburgh Martin and John Sutlic
               c/o Close Brothers (Cayman) Limited
               Fourth Floor, Harbour Place
               P.O. Box 1034
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Kim Charaman
               Tel: (345) 949-8455
               Fax: (345) 949-8499


MOSVOLD DRILLING: Proof of Claim Filing Deadline Is Oct. 10
-----------------------------------------------------------
Mosvold Drilling Ltd.'s creditors have until Oct. 10, 2008, to
prove their claims to  Morton Borge, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Mosvold Drilling's shareholders agreed on Aug. 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Morton Borge
               c/o Maples and Calder
               P.O. Box 309
               Ugland House, Grand Cayman
               Cayman Islands


MOSVOLD DRILLING I: Proof of Claim Filing Is Until Oct. 10
----------------------------------------------------------
Mosvold Drilling I Ltd.'s creditors have until Oct. 10, 2008, to
prove their claims to  Morton Borge, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Mosvold Drilling's shareholders agreed on Aug. 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Morton Borge
               c/o Maples and Calder
               P.O. Box 309
               Ugland House, Grand Cayman
               Cayman Islands


MOSVOLD DRILLING II: Deadline for Claims Filing Is Oct. 10
----------------------------------------------------------
Mosvold Drilling II Ltd.'s creditors have until Oct. 10, 2008, to
prove their claims to  Morton Borge, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Mosvold Drilling's shareholders agreed on Aug. 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Morton Borge
               c/o Maples and Calder
               P.O. Box 309
               Ugland House, Grand Cayman
               Cayman Islands



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

QUEBECOR WORLD: Wants Court to Set December 5 as Claims Bar Date
----------------------------------------------------------------
Quebecor World Inc. and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York to:

  -- set December 5, 2008, at 5:00 p.m. (Eastern Time) as the
     deadline by which proofs of claim must be filed by the
     Debtors' creditors, including governmental units;

  -- approve the proof of claim form; and

  -- approve the proposed claims procedure.

The Debtors filed their schedules of assets and liabilities and
statements of financial affairs with the Court, and are now
progressing towards the formulation of a plan of reorganization,
Michael J. Canning, Esq., at Arnold & Porter LLP, in New York,
states.  To have a reorganization plan confirmed, it is necessary
for the Debtors to ascertain the nature, extent and scope of the
claims asserted against them, Mr. Canning asserts.

Each person holding a prepetition claim against the Debtors must
file a Proof of Claim before the Bar Date.  The Proof of Claim
must be (i) written in the English language, (ii) signed by the
entity and include supporting documentation, and (iii)
denominated in U.S. currency.  The Proof of Claim must be in the
form substantially similar to the Official Form 10.
       
Any holder of a claim arising from an unexpired lease or
executory contract of the Debtors which was not assigned by the
Debtors prior to the Petition Date, will file a proof of claim so
as to be actually received by the later of (1) the date provided
by the Court's rejection order; or, if no date is provided, then
30 days after the date of the order; and (2) the Bar Date;
provided, however, that if an Agreement is not rejected prior to
the expiration of the Agreement.

Holders of equity security interests in the Debtors need not file
proofs of interest with respect to the ownership of the equity
interests.  

Any individual or entity that is required to file a proof of
claim but that fails to do so by the Bar Date, will be forever
barred from asserting the claim and will be forever discharged
from any and all indebtedness or liability with respect to the
claim.  Moreover, that creditor will neither be permitted to vote
on any plan or plans of the Debtors nor participate in any
distribution in the Debtors' Chapter 11 Cases.

                      About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW) -- http://www.quebecorworldinc.com/-- provides market       
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media.  It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia.  In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail.

The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina and the British Virgin Islands.

Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008.  The Honorable
Justice Robert Mongeon oversees the CCAA case.  Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case.  Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152).  Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts.   The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.

Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of       
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns.  The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.

As of June 30, 2008, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$3,412,100,000 total
liabilities of US$4,326,500,000 preferred shares of US$62,000,000
and total shareholders' deficit of US$976,400,000.

(Quebecor World Inc. News, Issue No. 26; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)



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

AIR JAMAICA: Government Eyes Solutions on Financial Problems
------------------------------------------------------------
Radio Jamaica reports that the government is looking at Irish air
carrier Aer Lingus as it tries to come up with solutions to the
problems facing the national airline Air Jamaica.

In late September, Senator Don Wehby, Minister Without Portfolio
in the Ministry of Finance, met with executives of Aer Lingus,
Radio Jamaica relates.

Senator Wehby, as cited by Radio Jamaica, said the meeting was a
learning experience as government-owned Aer Lingus was facing huge
financial losses.

The airline, according Mr. Wehby, changed its business model to
one of a low-cost carrier, and has improved its financial
performance, Radio Jamaica notes.

The meeting was useful for Jamaican officials to see how a
government-owned airline that was in trouble, worked its way out
in the face of strong competition, Mr. Wehby continued as cited by
Radio Jamaica.

                        About Air Jamaica

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

                           *    *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a B1 rating
to Air Jamaica Limited's guaranteed senior unsecured notes.

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



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

CORPORACION GEO: To Release 3rd Quarter 2008 Earnings on Oct. 27
----------------------------------------------------------------
Corporacion Geo will hold its third quarter 2008 conference call
on Oct. 28, 2008 at 09:00 am U.S. ET (08:00 am Mexico City Time).
The earnings press release for the third quarter 2008 will be
issued on Oct. 27, 2008, after market close.

The conference call can be accessed by calling:

    Tel. Numbers: (888) 713-4214 (U.S.)
                  (617) 213-4866 (International)
    Passcode: 48408814.

To pre-register for the conference call visit:

https://www.theconferencingservice.com/prereg/key.process?key=PH6
NR99XC

A replay will be available on Oct. 28, 2008 at 11:00 AM US ET,
ending at midnight US ET on Nov. 4, 2008.  

The replay is accessible through:

     Tel. Numbers: (888) 286-8010 (U.S.) or
                   (617) 801-6888 (International)
     Passcode: 51296274.

A live web cast of the conference call and replay will be
available at: http://www.corporaciongeo.com

Headquartered in Mexico, Corporacion Geo, S.A. de C.V. --
http://www.corporaciongeo.com-- specializes in the construction   
of affordable low-income housing with operations in 33 cities
across 15 states in Mexico.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2008, Standard & Poor's Ratings Services has affirmed
its ratings, including the 'BB-' global scale and 'mxA-' national
scale long-term corporate credit ratings with stable outlook, on
Corporacion Geo S.A.B. de C.V.



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

BUNGE LTD: To Pay Common & Preference Share Dividends on Dec. 1-2
-----------------------------------------------------------------
Bunge Limited has declared a regular quarterly cash dividend of
US$0.19 per common share.  The dividend is payable on Dec. 2,
2008 to shareholders of record on Nov. 18, 2008.

The company declared a quarterly cash dividend of US$1.21875 per
share on its 4.875% cumulative convertible perpetual preference
shares, payable on Dec. 1, 2008 to shareholders of record on Nov.
15, 2008.

The company also declared a quarterly cash dividend of US$12.8125
per share on its 5.125% cumulative mandatory convertible
preference shares, payable on Dec. 1, 2008 to shareholders of
record on Nov. 15, 2008.

                       About Bunge Limited

Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG)
is a global agribusiness company which supplies fertilizer to
farmers, originates, transports and processes oilseeds, grains
and other agricultural commodities worldwide, produces food
products for commercial customers and consumers, and supplies
raw materials and services to the biofuels industry in South
America and Asia.  The company has operations in Brazil, Peru
and Argentina.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 31, 2008, Moody's Investors Service changed the outlook for
Bunge Ltd.'s long-term debt to stable from negative, including
the guaranteed debt of subsidiaries rated Baa2; and the preferred
stock of Bunge Ltd., rated Ba1.  The rating outlook for the
senior long-term debt of Corn Products International, Inc., rated
Baa2, also was changed to stable from negative.



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

HOME INTERIORS: Says Sale of Operating Units May Affect Workers
---------------------------------------------------------------
Dallas (Texas) Business Journal reports that Home Interiors &
Gifts Inc. has informed the 130 workers at its Carrollton facility
that the sale of its operating entities may affect their jobs in
the next few months.

According to Dallas Business, Home Interiors sought the permission
of the U.S. Bankruptcy Court for the Northern District of Texas to
sell its operating entities earlier last week.

Dallas Business relates that Home Interiors said in a letter sent
to the Texas Workforce Commission that workers have been informed
of the potential impact that a sale could have on their positions.  
Home Interiors also said that a sale of the assets could lead to
potential employment opportunities for the workers, Dallas
Business statse.

"The company continues to conduct operations.  It's possible
potential buyer(s) of the company's assets will hire employees who
received Warn Act notices, although the company cannot make any
guarantee," Dallas Business quoted Home Interiors as saying.

                     About Home Interiors

Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and
distributes indoor and outdoor home decorative accessories.  It
was founded by Mary Crowley in 1957.  Through its affiliates, the
company has a significant presence in Mexico, Puerto Rico, and
Canada.  Annual revenue in 2007 reached US$300 million.  When Mary
Crowley, died in 1986, her son, Don Carter continued the business
operation nearly debt-free.  In a leveraged transaction in 1998,
private equity firm of Hicks, Muse, Tate, and Furst acquired 66%
of the parent company, which resulted in the imposition of more
than US$500 million in debt on the Debtors.  In the face of
decreased sales and increased debt load, bondholders canceled
their debts in February 2006 in exchange for receiving most of the
outstanding equity of the Debtors.

About 40% of the goods the Debtors sell are now acquired from
manufacturers in China.  In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico and
Puerto Rico significantly increased.

The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.
08-31961).  Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq.,
Lynnette R. Warman, Esq., and Michael P. Massad, Jr., Esq., at
Hunton & Williams, LLP, represent the Debtors in their
restructuring efforts.  The U.S. Trustee for Region 6 has
appointed seven creditors to serve on an Official Committee
of Unsecured Creditors.  Richard A. Lindenmuth, at Boulder
International LLC, is designated as CRO.  Munsch Hardt Kopf &
Harr PC represents the Committee in these cases.  When the
Debtors file for protection from their creditors, they listed
assets of between US$100 million and US$500 million and the same
range of debts.


HOME INTERIORS: Committee Objects to Houlihan Lokey Employment
--------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Home
Interiors & Gifts Inc. and its affiliated debtors' bankruptcy
cases filed with the U.S. Bankruptcy Court for the Northern
District of Texas its limited objection to the Debtors' request
for authority to employ Houlikan Lokey Howard & Zukin Capital,
Inc. as their investment bankers and financial advisors, nunc pro
tunc to Sept. 19, 2008.

The Committee told the Court that Houlihan Lokey will receive a  
minimum fee of US$1 million regardless of whether the Mexico
division sells for US$1 million or US$40 million, as provided
under the Engagement Agreement.  The Committee said that this
appears to be unreasonable and excessive.

In addition, the Committee told the Court that an asset of the
Debtors that is not encumbered by the liens of the secured Lenders
is a 35% interest in the Debtors' Mexico division.  Therefore, the
unsecured creditors are disproportionately prejudiced if the
Houlihan Lokey fee taken from the Mexico sale is US$1 million and
there is a lower than anticipated sales price.

As reported by the Troubled Company Reporter on September 25,
2008, the Debtors have tapped Houlihan Lokey to manage the sale
process, pursuant to which:

  -- U.S., Canada and Puerto Rico operational assets will be
     offered as a single unit.  Home Interiors & Gifts' president
     and chief executive officer, Robin Crossman, is leading a
     team of investors that is expected to submit a bid to
     purchase certain operational assets of the U.S., Canada and
     Puerto Rico entities.

  -- The company's operations in Mexico, Home Interiors de
     Mexico, will be offered independently.  Fabian Uribarren,
     president of Home Interiors de Mexico, is leading a team
     that is expected to be the lead candidate to purchase this
     entity.

  -- Domistyle Inc. will be offered as an independent company.
     Domistyle is a home dA(C)cor and home fragrance manufacturer
     and distributor based in Dallas, Texas.  The company was
     founded by Brenda Buell and sold to Home Interiors & Gifts
     in 2002.  Ms. Buell, president of Domistyle, is leading a
     team that is expected to be the lead candidate to purchase
     this entity.

  -- The company's Laredo Candle operational assets, based in
     Laredo, Texas, will be offered as a single unit; however,
     it may be included as part of a sale of Domistyle.

The Committee said that considering that the Debtors have already
identified at least one party interested in acquiring each of the
Debtors' business segments, and considering further that the each
of these parties are insiders well known to the Debtors, and
therefore provide relatively reliable prospects of serving as
"stalking horse" bidders for the Debtors' assets, the fee regaring
Mexico should be adjusted accordingly.

The Committee additionally has concerns regarding the Debtors
efforts to sell its assets.  One potential purchaser has been
voicing concern over the Debtors' failure to turn over
information requested since early August when said purchaser
signed a binding confidentiality agreement.  

The Committee said that it supports the application of Houlihan
Lokey provided that all parties, including third parties not
connected to the Debtors, receive timely information in this case.  
The Committee told the Court that there appears to be some
inclination by the Debtors to only work towards obtaining bids
from insiders.  Because of the delays that have been suffered by
one purchaser, the Committee requests that Houlihan Lokey
immediately provide all information reasonably requested by third
party bidders so that may also have an opportunity to become a
stalking horse bidder in an auction process.

The Committee asks the Court to enter its order denying Houlihan
Lokey's retention, approving it only subject to the limited
objections raised by the Committee.

                     About Home Interiors

Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and         
distributes indoor and outdoor home decorative accessories.  It
was founded by Mary Crowley in 1957.  Through its affiliates,
the company has a significant presence in Mexico, Puerto Rico,
and Canada.  Annual revenue in 2007 reached US$300 million.  When
Mary Crowley, died in 1986, her son, Don Carter continued the
business operation nearly debt-free.  In a leveraged transaction
in 1998, private equity firm of Hicks, Muse, Tate, and Furst
acquired 66% of the parent company, which resulted in the
imposition of more than US$500 million in debt on the Debtors.  In
the face of decreased sales and increased debt load, bondholders
canceled their debts in February 2006 in exchange for receiving
most of the outstanding equity of the Debtors.

About 40% of the goods the Debtors sell are now acquired from
manufacturers in China.  In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico
and Puerto Rico significantly increased.

The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.
08-31961).  Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq.,
Lynnette R. Warman, Esq., and Michael P. Massad, Jr., Esq., at
Hunton & Williams, LLP, represent the Debtors in their
restructuring efforts.  The U.S. Trustee for Region 6 has
appointed seven creditors to serve on an Official Committee
of Unsecured Creditors.  Richard A. Lindenmuth, at Boulder
International LLC, is designated as CRO.  Munsch Hardt Kopf &
Harr PC represents the Committee in these cases.  When the
Debtors filed for protection against their creditors, they
listed assets of between US$100 million and US$500 million and the
same range of debts.


MARGO CARIBE: To Delist Common Stock; Delays Filing Reports
-----------------------------------------------------------
Margo Caribe Inc. has submitted a Form-15 with the U.S. Securities
and Exchange Commission to deregister its common stock under the
Securities Exchange Act of 1934.

The company has fewer than 300 shareholders of record.  Margo’s
obligation to file reports under the Securities Exchange Act of
1934, including Forms 10-K, 10-Q and 8-K, was immediately
suspended.  However, Margo continues to work on its delayed
quarterly reports on Form 10-QSB for each of the first three
quarters of 2006 and 2007, its annual reports on Form 10-KSB for
the years ended December 31, 2006 and 2007, and its quarterly
reports on Form 10-Q for the first two quarters of 2008, and will
file these reports as soon as practicable.

Margo’s board of directors unanimously decided to take this action
because it believes that the burdens associated with operating as
a registered public company currently outweigh any advantages to
the company and its stockholders.  In particular, the board of
directors considered:

   a) The costs, both direct and indirect, incurred by Margo in
      connection with preparing and filing periodic reports with
      the SEC and otherwise complying with the obligations of
      being a public company;

   b) The benefits of permitting senior management to spend less
      time on report preparation and regulatory compliance,
      which will allow them to devote their attention and
      efforts to Margo’s operations; and

   c) The historically low trading volume of Margo’s common
      stock.

Margo expects, but cannot guarantee, that its common stock will
continue to be quoted on the Pink Sheets after it deregisters.  
There can also be no assurance that any brokerage firms will
continue to make a market in the common stock after the
deregistering.

Headquartered in Vega Alta, Puerto Rico, Margo Caribe, Inc.
-- http://www.MargoCaribe.com-- and its subsidiaries primarily
engage in the production, distribution, and sale of various
tropical plants to the interior and exterior landscapers,
wholesalers, and retailers in Puerto Rico and the Caribbean.
The company also manufactures and distributes a line of planting
media and aggregates; distributes lawn and garden products,
including plastic and terracotta pottery, planting media, and
mulch; and provides landscaping design and installation
services.  In addition, Margo Caribe distributes fertilizers,
pesticides, and various outdoor products.  The company
manufactures potting soils, professional growing mixes, river
rock, gravel, and related aggregates.

                     Material Weakness

Deloitte & Touche noted material weaknesses to Margo Caribe's
internal controls after auditing the company's financial reports
for the year ended Dec. 31, 2005.  The material weaknesses noted
by Deloitte were the following:

   1) Margo Caribe did not maintain a sufficient complement of
      personnel to maintain an appropriate accounting and
      financial reporting structure commensurate with its
      activities;

   2) the company's limited number of personnel does not allow
      for an appropriate level of segregation of duties;

   3) the company does not have an appropriate fraud detection
      program to address the risk that the financial statements
      may be materially misstated as a result of fraud; and

   4) the company did not maintain adequate controls and
      procedures to assure the identification and reporting of
      certain transactions with related parties.


R&G FINANCIAL: Melba Acosta Gets Salary Raise for US$490,000
------------------------------------------------------------
R&G Financial Corporation's Board of Directors, on September 30,
2008, approved an increase in the annual base salary of Melba
Acosta, the company’s interim Chief Financial Officer and
Executive Vice President – Corporate Risk Management, from
US$250,000 to US$490,000.

This increase will be effective as of August 2, 2008, the date on
which Ms. Acosta assumed the additional duties of interim Chief
Financial Officer, and will remain in effect while Ms. Acosta
continues performing such duties.

In addition, the Board also approved the payment of a special
performance bonus of US$200,000 to Rolando Rodríguez, the
Company’s Chief Executive Officer.

San Juan, Puerto Rico-based R & G Financial Corporation --
http://www.rgonline.com/-- is a Puerto Rico chartered diversified  
financial holding company.  Through its wholly owned subsidiaries,
is engaged in banking, mortgage banking and insurance activities
in Puerto Rico.  Its subsidiaries include R-G Premier Bank of
Puerto Rico, R&G Mortgage Corporation, and R-G Insurance
Corporation, its Puerto Rico insurance agency.  Banking activities
include commercial and retail banking services, corporate and
construction lending, consumer lending and credit cards, offering
a diversified range of deposit products and, to a lesser extent,
investment services through its private banking department.  In
November 2007, the company announced that it has completed the
sale of Crown to Fifth Third Financial Corporation, a subsidiary
of Fifth Third Bancorp (Fifth Third).

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 18, 2008, R&G Financial Corporation reported that its
wholly-owned Puerto Rican mortgage subsidiary, R&G Mortgage
Corporation and R-G Premier Bank, and its wholly-owned chartered
commercial bank, R-G Premier Bank, received notices from the
Federal Home Loan Mortgage Corporation of immediate termination
of their respective eligibility to sell mortgages to and service
mortgages for Federal Home.  Federal Home indicated that it has
taken these actions due to its concerns regarding the entities'
ability to continue to act as servicer and to meet their
obligations to Federal Home, among other reasons.



==========================
V I R G I N  I S L A N D S
==========================

* VIRGIN ISLANDS: Gas Prices Drop Territorywide Except St. John
---------------------------------------------------------------
Most retail gas prices territorywide at the Virgin Islands fell
after HOVENSA's reduction of its wholesale fuel prices weeks ago,
Tim Fields at VirginIslands Daily News reported Sept. 24, 2008.

Overall prices per gallon of self-serve regular on St. Croix fell
an average 15 cents, and on St. Thomas, prices on regular dropped
an average of 13 cents, VI Daily News related, citing V.I.
Department of Licensing and Consumer Affairs gas price surveys
conducted in September.

However, Daily News revealed that St. John gas prices, which are
historically the highest in the territory, had not budged as of
the DLCA survey on September 19.

According to the report, DLCA officials use gas price survey data
to monitor fluctuations in local gas prices and to identify gas
stations that do not pass on wholesale price reductions to its
customers.

The last wholesale price reduction HOVENSA made was September 9,
VI Daily News said.  The refinery cut its wholesale fuel prices on
regular by 10.5 cents, premium by 12 cents, and diesel by 23.5
cents.

VI Daily News noted that some independent gas station operators on
St. Croix buy their gas at the local loading station.  At St.
Thomas and St. John, wholesalers buy gas from HOVENSA at a
contracted rate and then supply their brand stations in the St.
Thomas to St. John District.  Domino stations get their fuel from
suppliers in Puerto Rico.

Based on the September 9 adjustments, St. Croix operators now pay
US$3.135 per gallon for regular, US$3.225 for premium and US$3.39
for diesel when they buy fuel wholesale at HOVENSA, according to
the report.  Those wholesale prices include a fuel tax of 7 cents
per gallon.

Retail prices vary widely across the territory, VI Daily News
reported.  St. Croix's average retail price per gallon of self-
serve regular was US$3.64, according to a DLCA gas price survey
conducted on September 17.  On St. Thomas, the average price per
gallon of self-serve regular was US$4.49, according to a DLCA gas
price survey conducted on September 19.  Gas prices at St. John's
two gas stations had not changed between surveys.  The prices per
gallon of regular were US$4.63 and US$4.86 per gallon, according
to a DLCA price survey conducted on September 19.



                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at
240/629-3300.


           * * * End of Transmission * * *