UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

         Pursuant to Section 13 or 15(d) of the Securities Exchange Act


       Date of Report (Date of earliest event reported): December 1, 2006


                       CABELTEL INTERNATIONAL CORPORATION

             (Exact Name of Registrant as Specified in its Charter)

             Nevada                    000-08187                 75-2399477
- --------------------------------------------------------------------------------
       (State or other                (Commission             (I.R.S. Employer
jurisdiction of incorporation)          File No.)            Identification No.)


            1755 Wittington Place, Suite 300
                      Dallas, Texas                                      75234
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        (Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code 972-407-8400



         Check the  appropriate  box below if the Form 8-K filing is intended to
simultaneously  satisfy the filing obligation of the Registrant under any of the
following provisions:

|_|  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)
|_|  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)
|_|  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))
|_|  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))








Item 1.01. Entry into a Material Definitive Agreement.

         On  December  1, 2006,  CabelTel  International  Corporation,  a Nevada
corporation   ("GBR"  or  the   "Registrant")   entered  into  an  Agreement  of
Satisfaction  of  Indebtedness  (the  "Settlement  Agreement")  between  GBR and
Gilley/Dry Limited Partnership,  a Texas limited partnership ("GDLP").  Pursuant
to the  Settlement  Agreement,  a Promissory  Note dated November 6, 2002 in the
original stated principal amount of $2,225,000 payable to the order of Sylvia M.
Gilley (the  "Gilley  Note")  originally  issued by GBR plus  accrued and unpaid
interest of  $857,002  was  canceled  and  returned to GBR. In exchange  for the
cancellation of the Gilley Note, GBR transferred and assigned to GDLP:

                  o The entire  beneficial  interest  in a  Subordinate  Housing
         Revenue Bond issued by the Idaho Housing and Finance Association in the
         stated  principal  amount of $830,000  issued  February 21, 2002 with a
         maturity date of March 20, 2037 bearing interest at 9.5% per annum (the
         "Wedgewood Bond").

                  o An undivided  62.32212%  beneficial interest in a California
         Statewide  Communities  Development Authority Refunding Housing Revenue
         Bond issued July 24, 2002 in the full  principal  amount of  $2,406,850
         with a stated maturity of August 20, 2037 bearing  interest at 9.5% per
         annum, up to a maximum of $1,500,000of principal (the "CSCD Bond").

                  o An undivided  10% Net Cash Flow (as defined)  interest  from
         the operation of a residential center located in King City, Oregon.

The overall  effect of the  transaction  from an  accounting  standpoint  was to
provide an increase in the net equity of GBR of  approximately  $1,000,000 by an
addition of such amount to both income and retained earnings.

         The parties in GDLP are the  children  and  grandchildren  of Sylvia M.
Gilley and James R. Gilley,  deceased.  James R. Gilley, deceased, was the Chief
Executive  Officer of GBR prior to his death on December  30,  2002.  The Gilley
Note was  originally  issued  by GBR to Sylvia M.  Gilley in  redemption  of the
Series C Preferred Stock of GBR.

Item 2.01. Completion of Acquisition or Disposition of Assets.

         See Item  1.01  above for a  description  of the  Settlement  Agreement
pursuant to which GBR transferred to GDLP two long term bonds and a 10% net cash
flow interest from the operation of a residential center in Oregon in settlement
and cancellation of the Gilley Note described therein. The "person" to whom such
assets were  transferred is GDLP, a Texas limited  partnership,  the partners of
which are the  children  and  grandchildren  of Sylvia  M.  Gilley  and James R.
Gilley,  deceased.  James R. Gilley was the Chief Executive Officer of GBR prior
to his death on  December  30,  2002.  The  formula  or  principal  followed  in
determining the amount of the consideration was through a negotiated  settlement
resulting  in a  transfer  of assets  to be  realized  on a long  term  basis in
exchange for immediate cancellation and satisfaction of the Gilley Note.





                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the Registrant has  duly-caused  this Current Report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly-authorized.

         Dated: December 5, 2006            CABELTEL INTERNATIONAL CORPORATION


                                                  By: /s/  Gene S. Bertcher
                                                     ---------------------------
                                                     Gene S. Bertcher, President