TCRLA_Public/050826.mbx         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, August 26, 2005, Vol. 6, Issue 169

                            Headlines

A R G E N T I N A

BISEL: Banco Nacion to Publish Bidding Rules October
CALERA SAN JOSE: Claims Review Phase to End August 29
CLAXSON INTERACTIVE: Fitch Maintains `B(Arg)-' Rating on Bonds
EDENOR: Antitrust Regulator OKs EdF's Stake Sale to Dolphin

FOMEC S.A.: Reorganization Initiated
IRSA: Local Fitch Assigns `BB(arg)+' to $250M Bond Issue
JUAN MINETTI: Courts Throw Out Appeal Against Fine
METROGAS: S&P Says Bonds Remain at Default Level
MUTUAL METALURGICA: To Endorse Settlement Proposal Aug. 29

NEW CATERING: General Due to be Filed August 29
ORGANIZACION J.G.: Trustee to Submit Claims Review Aug. 29
OXIA JEANS: Individual Reports Due to be Filed Aug. 29


B R A Z I L

UNIBANCO: Operational Efficiency Questioned, Affects Ratings


C O L O M B I A

TELECOM: Sets Sights on Mobile Phone Market
    

J A M A I C A

AIR JAMAICA: Dawn to Dusk Daily Miami Flights Announced
KAISER ALUMINUM: Gramercy & St. Ann Balk at Disclosure Statement
KAISER ALUMINUM: Files First Amended Joint Plan


M E X I C O

AOL LATIN AMERICA: Members of Board of Directors Resign
CINTRA: Approves 18 "Expressions of Interest" in Airlines
EMPRESAS ICA: Consortium Loses Bid on Rail Project
HOME PRODUCTS: Restating Fiscal 2005 Financial Statements
LEAR CORP: Promotes CFO David Wajsgras to Exec. Vice President

VITRO: Planned Sale Not Enough to Explain Huge Stock Surge


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: To Elect Nine Directors September 27


V E N E Z U E L A

CADAFE: President Denies Government Intervention Potential


     - - - - - - - - - -
                            

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

BISEL: Banco Nacion to Publish Bidding Rules October
----------------------------------------------------
Federal bank Banco Nacion will now embark on its second attempt
to sell niche bank Banco Bisel after a 2003 auction failed to
attract any bidders, reports Business News Americas. Banco
Nacion president, Felisa Miceli, revealed that the bank will
publish the bidding rules for the sale of Bisel in October. The
central bank is expected to approve a ARS130 million (US$44.7mn)
capital injection into Bisel by Argentina's deposit insurance
agency Sedesa before the release of the bidding rules.

Credit Agricole, when it pulled out of Argentina in 2002 at the
height of the country's financial crisis, handed control of its
three subsidiaries - BERSA, Suquia and Bisel - to the
government. Banco Nacion subsequently took over the banks for
the purpose of selling them back to the private sector at a
later stage.

Local bank Macro Bansud won the auction for Suquia last year.
While Nuevo Banco de Santa Fe recently assumed control of BERSA.

Bisel is the only remaining bank that Banco Nacion has yet to
sell.


CALERA SAN JOSE: Claims Review Phase to End August 29
-----------------------------------------------------
Mr. Roberto Jorge Massacane, the court-appointed trustee for the
Calera San Jose S.A. liquidation, will stop verifying creditors'
claims tomorrow, Aug. 29, 2005. The verified claims will serve
as basis for the individual reports, which will be presented in
court on Oct. 10, 2005. Mr. Massacane will also submit the
general report on Nov. 22, 2005.

Calera San Jose S.A. entered bankruptcy protection after Court
No. 22 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 44, ordered the company's liquidation.

CONTACT: Mr. Roberto Jorge Massacane, Trustee
         Presidente Roque Saenz Pena 846
         Buenos Aires


CLAXSON INTERACTIVE: Fitch Maintains `B(Arg)-' Rating on Bonds
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintained the
'B(arg)-' rating assigned to US$44.4 million worth of
"Obligaciones negociables" bonds issued by Claxson Interactive
Group Inc. The action, according to Argentina's securities
regulator, the CNV, was based on the Company's financial status
as of March 31, 2005. The bonds were classified under "Simple
Issue" with undisclosed maturity date.

Fitch said that a `B(arg)' rating indicates significant credit
risk although a limited margin of safety remains. Capacity for
payment at this juncture is dependent on a sustained, favorable
business climate.

Claxson (XSONF.OB) is a multimedia company providing branded
entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple
platforms through its assets in pay television, radio and the
Internet. Headquartered in Buenos Aires, Argentina, and Miami,
Florida, Claxson has a presence in the United States and all key
Ibero-American countries, including without limitation,
Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson's
principal shareholders are the Cisneros Group of Companies and
funds affiliated with Hicks, Muse, Tate & Furst Inc.

CONTACT: Claxson Interactive Group Inc.
         Juan Iramain
         Phone: 011-5411-4339-3701  
                      or
         Jose Antonio Ituarte
         Phone: 011-5411-4339-3700


EDENOR: Antitrust Regulator OKs EdF's Stake Sale to Dolphin
-----------------------------------------------------------
Argentina's antitrust commission, known in Spanish as the CNDC,
has authorized Electricite de France's (EdF) sale of a 65% stake
in local power distributor Edenor to investment fund Grupo
Dolphin for US$100 million. After completing various
administrative tasks including appointing new board members,
Dolphin expects to take control of Edenor on September 10-15.

Dolphin's top priorities as Edenor's new majority shareholder
will be restructuring the power company's US$520 million in debt
and reaching a new, long-term contract with the government.

EDF, which has unsuccessfully sought to raise Edenor's tariffs,
announced on June 20 it had agreed to sell part of its stake to
Dolphin for US$100 million. It will maintain a 25% share in
Edenor. The remaining 10% of Edenor is controlled by workers
through an employee ownership program.

Under local securities regulations, Dolphin is required to
extend to remaining shareholders the same terms it agreed upon
with EdF. But employees can also hold a public offer for their
shares.


FOMEC S.A.: Reorganization Initiated
------------------------------------
Buenos Aires' civil and commercial Court No. 9, with assistance
from Clerk No. 17, issued a resolution opening the
reorganization of Fomec S.A. This pronouncement authorizes the
Company to begin drafting a settlement proposal with its
creditors in order to avoid liquidation.

The reorganization allows Fomec S.A. to retain control of its
assets subject to certain conditions imposed by Argentine law
and the oversight of the court appointed trustee.

Mr. Mario Daniel Krasnansky will serve as trustee during the
course of the reorganization. He will be validating creditors'
proofs of claim until Sep. 22, 2005. The results of the
verification will be presented in court as individual reports on
Nov. 3, 2005. The trustee is also obligated to give the court a
general report of the case on Dec. 16, 2005. The general report
summarizes events relevant to the reorganization and provides an
audit of the Company's accounting and business records.

Mr. Krasnansky will present the completed settlement proposal to
its creditors during the informative assembly scheduled on April
19, 2006.

CONTACT: Mr. Mario Daniel Krasnansky, Trustee
         Juan Ramirez de Velazco 813
         Buenos Aires


IRSA: Local Fitch Assigns `BB(arg)+' to $250M Bond Issue
--------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a BB(arg)+
rating to US$250 million worth of corporate bonds issued by
IRSA- Inversiones y Representaciones S.A., the CNV reported on
its Web site.

The issue is classified under Program and described as Programa
Global de Obligaciones. The maturity date of the issue was not
revealed.

The rating action, which was taken based on the Company's
financial status as of March 31, 2005, means that the issue
carries an adequate credit risk relative to other issues in
Argentina.

IRSA Inversiones y Representaciones Sociedad Anonima (NYSE:
IRS)(BCBA: IRSA) is the largest real estate company in
Argentina.

CONTACT: IRSA Inversiones y Representaciones S. A.
         Alejandro Elsztain, Director
         Gabriel Blasi, CFO
         Tel: +011-5411 4323-7449
         E-mail: finanzas@irsa.com.ar


JUAN MINETTI: Courts Throw Out Appeal Against Fine
--------------------------------------------------
The appeals filed by five cement companies seeking to overturn a
record ARS310-million fine that the government imposed on them
last month were rejected by the courts. According to a Business
News Americas report, the courts denied the companies' claim
that they had not had the opportunity to defend themselves and
the actions for which they are accused are not statute-barred.

The government slapped the fine on Loma Negra, Cementos San
Martin, Juan Minetti y Corcemar, Cementos Avellaneda and
Petroquimica Comodoro Rivadavia for allegedly agreeing to split
up the market and raise prices. The investigation was
retroactive back to 1981.

Meanwhile, Demetrio Brusco, head of institutional relations at
affected company Juan Minetti, said his company has not received
official notification regarding the courts' decision.

"We have not been officially informed of the authorities'
decision, so we are unable to react as yet," Mr. Brusco said,
adding, if such notification were indeed received, his company
would then decide how to proceed.

If the appeals have indeed been rejected, the legal authorities
will have to study the decision carefully to see if the
punishment was applied correctly and this could result in a
variation in the actual amount of the fines.

Loma Negra was hit with the biggest penalty of ARS138.7 million
while Juan Minetti was ordered to pay ARS100.1 million. The
sanctions are the heaviest ever applied by the state against a
group of companies under the competition law.

Controlled by Swiss cement giant Holcim, Juan Minetti is the
country's second largest cement company next to Loma Negra.

CONTACT:  Juan Minetti SA
          87 Ituzaingo
          Cordoba
          Argentina  5000
          Phone: +54 51 26 7529
          Fax:  +54 51 24 4709
          Home Page: http://www.juanminetti.com.ar
          Contacts:
          Dr. Manuel Augusto J. Baltazar Ferrer, Chairman
          Atty. Carlos Buhler, Executive Vice Chairman & General
                                     Manager


METROGAS: S&P Says Bonds Remain at Default Level
------------------------------------------------
The Argentine arm of Standard & Poor's International Ratings,
Ltd. affirmed the 'raD' rating given to various corporate bonds
issued by Metrogas S.A., according to the CVN. The rating
affects the following bonds that are classified under Series
and/or Class:

-  US$130 million worth of "Serie C por U$S 130.000.000 dentro
    del Programa Global de U$S 600 millones" which matured on
    May 7, 2004.

-  EUR110 million worth of "Serie B por euros 110 millones,"
    which matured on Sep. 27, 2002.

-  US$100 million worth of "Serie A por U$S 100.000.000
    dentro del Programa Global de U$S 600 millones," which
    matured on April 1, 2003.

-  US$600 million worth of "obligaciones negociables simples"
    classified under Program. The maturity date of this
    particular bond issuance was not disclosed.

The rating assigned to all the bonds was based on Metrogas'
financial status as of June 30, 2005.

CONTACT:  METROGAS, S.A.
          Gregorio Araoz de Lamadrid 1360
          Buenos Aires
          Argentina
          CPA C 1267
          Phone: +54 11 4309 1010
          Fax:  +54 11 4309 1025
          Web site: http://www.metrogas.com.ar


MUTUAL METALURGICA: To Endorse Settlement Proposal Aug. 29
----------------------------------------------------------
Mutual Metalurgica San Nicolas will endorse the settlement
proposal, which was drafted from the submitted claims, for
approval by the creditors during the informative assembly
tomorrow, Aug. 29, 2005.

The Company successfully petitioned for authorization to
reorganize after Court No. 3 of San Nicolas' civil and
commercial tribunal issued a resolution, which opened the
Company's insolvency proceedings.

Under insolvency protection, the Company continued to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee, Juan Carlos
Colella. The trustee accepted creditors' proofs of claims for
verification until March 8.

CONTACT:  Mutual Metalurgica San Nicolas
          Mitre 282
          San Nicolas

          Mr. Juan Carlos Colella, Trustee
          Francia 208
          San Nicolas


NEW CATERING: General Due to be Filed August 29
-----------------------------------------------
Mr. Javier Marcelo Espineira, the court-appointed trustee for
the New Catering S.R.L. bankruptcy case, will submit the general
report tomorrow, Aug. 29, 2005. Mr. Espineira will include in
the report a summary of the Company's financial status as well
as relevant events pertaining to the bankruptcy.

The trustee submitted on July 1, 2005 the individual reports on
the claims of the Company's creditors. He verified the forwarded
claims until May 18, 2005.

New Catering S.R.L. began liquidating its assets following
the bankruptcy pronouncement issued by Court No. 18 of Buenos
Aires' civil and commercial tribunal. The bankruptcy process
will end with the sale of the Company's assets. Proceeds from
the sale will be used to repay its debts.

CONTACT: Mr. Javier Marcelo Espineira, Trustee
         Viamonte 783
         Buenos Aires


ORGANIZACION J.G.: Trustee to Submit Claims Review Aug. 29
-----------------------------------------------------------
Court-appointed trustee Roberto Jose Gaztelu will present the
individual claims of the Company's creditors as individual
reports tomorrow, Aug. 29, 2005. The claims were validated until
July 1, 2005. Mr. Gaztelu will also present an audit of the
Company's accounting and business records through a general
report due on Oct. 10, 2005.

Organizacion JG S.A., a company operating in Buenos Aires,
began reorganization proceedings after Court No. 22 of the
city's civil and commercial tribunal, with assistance from Clerk
No. 44, granted its petition for "concurso preventivo".

An informative assembly for the company's creditors is scheduled
on March 27 next year.

CONTACT: Mr. Roberto Jose Gaztelu, Trustee
         Virrey del Pino 2719
         Buenos Aires


OXIA JEANS: Individual Reports Due to be Filed Aug. 29
------------------------------------------------------
The submission of the individual reports of the Oxia Jeans S.A.
bankruptcy case will be tomorrow, Aug. 29, 2005. These reports
are based on creditors' claims, which underwent verification
phase that lasted until July 8, 2005. The submission of the
general report will follow on Oct. 21, 2005.

Oxia Jeans S.A. entered bankruptcy protection after Court No. 9
of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 17, ordered the Company's liquidation.
The court selected Mr. Miguel Angel Troisi as trustee.

CONTACT: Mr. Miguel Angel Troisi, Trustee
         Cerrito 146
         Buenos Aires



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

UNIBANCO: Operational Efficiency Questioned, Affects Ratings
------------------------------------------------------------
Rationale

The local currency counterparty credit rating on Unibanco-Uniao
de Bancos Brasileiros S.A. incorporates the relatively weaker
operational efficiency and credit quality of the bank as
compared to that of its major retail peers; the fairly low
profitability of its large branch network; and the implicit
risks of operating in the Brazilian market and its high economic
risk (in the banking industry). The positive aspects of the
ratings are the well-positioned consumer finance franchise
resulting from several acquisitions and agreements, which puts
the bank in a good position to benefit from the expected growth
in this segment; the bank's organizational restructuring, which
should improve efficiency; and the lower delinquency ratio of
its newly originated loans, mainly in the retail segment.

Unibanco has maintained good profitability with an improving
trend (ROA of 2.1% based on June 2005 annualized figures), with
its income derived mainly from revenues originated by credit and
service operations. The bank's slightly higher funding costs
(despite its successful efforts to improve core deposit and
reduce funding cost) and its lower returns originated on its
large branch network, generated a profitability ratio below
those of its major peers. Although having improved its
efficiency ratio (measured by noninterest expenses to total
revenues) to 67% in June 2005 (compared to 71% in 2004), it is
still higher than those of its peers (mainly Itau and Bradesco).
Nevertheless, the organizational restructuring in 2004 generated
a leaner structure with focus on the bottom line and cost-
control discipline. Positive changes were implemented, including
the consolidation of back-office and supporting units, the
definition of leaner processes, repositioning of the bank's
brand, and higher synergies among its business areas. Standard &
Poor's Ratings Services expects these changes to be reflected in
the bank's financial profile, namely through better cross
selling, revenues mix, and efficiency.

Unibanco is well positioned to benefit from the retail growth
prospect in the country. The bank has established a strong
consumer finance franchise as a result of several acquisitions
and agreements. Unibanco expanded its share in the Brazilian
retail market, both through operational agreements with large
distribution chains (such as Sonae, Magazine Luiza, and Ponto
Frio) and its own companies (Unicard, Dibens, Fininvest, and
Hipercard), which increased the weight of the individual loan
portfolio over total loans to 38% in June 2004 from 36% in
December 2004 and 34% in December 2003. Both the individual loan
and the small and middle-market segment should drive most of the
lending growth in the future and produce positive returns to the
bank.

Historically, Unibanco's asset quality is adequate to its rating
level. Even though the institution has registered a
nonperforming loans ratio (credits rated from E to H according
to local rules) of 4.3%-which compares favorably with the 6%
presented in December 2003-its write-offs (net of recovery)-to-
average credit portfolio ratio of 3.8% is still high when
compared with that of its peers. We are confident that the
bank's prudent underwriting policies should generate
improvements on asset quality. This is evidenced by the quality
of the newly originated loans (mainly in the retail segment)
that show positive signs in terms of past-due loans and
provisions.

Outlook

The stable outlook on the local currency credit rating reflects
our expectation that, while operating more actively in the
retail market, the bank should preserve its good profitability
with an improving trend, and improve its asset quality
indicators to benefit from its adequate underwriting. The stable
outlook also considers the improvement in efficiency ratios
given the bank's cost control disciplines and closure of
nonprofitable businesses.

The stable outlook on the foreign currency counterparty credit
rating reflects that on the sovereign foreign currency rating on
Brazil. At its current level, the foreign currency credit rating
on Unibanco should move in tandem with the foreign currency
credit rating on the sovereign. The local currency credit rating
on the bank would automatically follow negative changes in the
sovereign credit rating. The local currency rating would have to
be assessed on its own merits if the sovereign local currency
rating were to improve (positive outlook or upgrade).

Primary Credit Analyst: Tamara Berenholc, Sao Paulo (55) 11-
5501-8950; tamara_berenholc@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-
5501-8945; milena_zaniboni@standardandpoors.com



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

TELECOM: Sets Sights on Mobile Phone Market
-------------------------------------------
The government revealed that state-owned Colombia
Telecomunicaciones (Telecom) intends to enter the mobile phone
market, relates Reuters.

"The presence of Colombia Telecomunicaciones in the mobile
market will generate additional revenue and contribute to its
financial sustainability in the medium- and long-term," the
National Planning Department said in a news release.

Early this week, Telecom reached a preliminary agreement with
Mexico's Telmex to form a cell phone partnership in a deal said
to be worth US$3 billion. Colombian government sources said
Telmex would invest in Telecom and take over its administration
but not buy a stake in it.

However, Colombian utilities companies Empresa de
Telecomunicaciones de Bogota (ETB) and Empresas Publicas de
Medellin (EPM) said they would like to compete with Telmex for
the right to forge an alliance with Telecom.

EPM and ETB said they had joined forces in a bid to lure Spain's
Telefonica Moviles, Telefonica's mobile unit, as a strategic
international partner in their telephone business.

    

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

AIR JAMAICA: Dawn to Dusk Daily Miami Flights Announced
-------------------------------------------------------   
Air Jamaica announced Wednesday that it will have daily flights
between Jamaica and Miami from dawn to dusk with the return of
JM021/020 effective September 9, 2005. Following high demand,
especially from the business community for the early morning
non-stop flights between Kingston and Miami, the airline made
the strategic decision for the resumption of service.

Flight JM021 departs Kingston at 6:25 a.m. for Miami arriving at
9:05 a.m, while flight JM020 departs Miami at 10:05 a.m. to
arrive Montego Bay at 10:40 and Kingston at 11:45am. Both
flights will be operated with Air Jamaica's state of the art
A320 aircraft with 138 economy and 12 first class seats. In
order to give passengers the convenience of a longer day, JM024
will depart Miami an hour later at 6:00 p.m. arriving in
Kingston at 6:40 p.m.

Other flights between Jamaica and Miami are JM023, which
operates daily departing Montego Bay at 11:35 a.m. arriving in
Miami at 2:10 p.m.; JM022, which departs Miami at 3:10 p.m.
arriving in Montego Bay at 3:45pm, and JM025, which departs
Kingston at 1:30p.m. arriving in Miami at 4:10 p.m.

Executive Chairman, Dr. Vincent Lawrence says, "We have made a
commitment to provide an early morning direct service that meets
the needs of our passengers, especially members of the business
community who wish to get to Miami and back within the same day.
Whenever there is a fall in demand we respond to that change. In
like manner when passengers call for increased service on any
route, we listen and try to meet their demand."

The return of JM021/020 will bring the number of weekly flights
operated by Air Jamaica between Fort Lauderdale and Miami to
Jamaica to 53. Air Jamaica is the only carrier with non-stop
service to Kingston and Montego Bay from both Fort Lauderdale
and Miami.

CONTACT: AIR JAMAICA
         Corporate Communications
         Tel: 876-922-3460 ext 4060-5
         URL: www.airjamaica.com


KAISER ALUMINUM: Gramercy & St. Ann Balk at Disclosure Statement
----------------------------------------------------------------
According to Michael D. DeBaecke, Esq., at Blank Rome LLP, in
Wilmington, Delaware, the Remaining Debtors' Disclosure
Statement includes an estimate of unpaid administrative expenses
totaling around $54,000,000.  Under the proposed Plan of
Reorganization, the administrative expenses will be paid in full
in accordance with the Bankruptcy Code requirements.

By a purchase agreement approved by the Court on July 19, 2004,
Kaiser Aluminum & Chemical Corporation and Kaiser Bauxite
Company agreed to sell substantially all their assets to
Gramercy Alumina LLC and St. Ann Bauxite Limited.  Mr. DeBaecke
relates that the assets were owned and used in connection with
the operation of an alumina refinery located in Gramercy,
Lousiana, and a bauxite mining operation on the north coast in
Jamaica.

The Purchase Agreement details certain indemnification
obligations owed by KACC and Kaiser Bauxite to Gramercy Alumina
and St. Ann. Specifically, it provides that a party's aggregate
liability for losses suffered as a result of breaches of
representations and warranties will not exceed $5 million.

By a letter dated June 17, 2005, Gramercy Alumina and St. Ann
filed a claim against KACC and Kaiser Bauxite in respect of all
losses related to medical benefits for retirees in Jamaica.  The
liabilities associated with those benefits are estimated at
$7,200,000 as of September 30, 2004, but those liabilities were
not disclosed by KACC and Kaiser Bauxite.

Under the Purchase Agreement, Mr. DeBaecke explains that KACC
and Kaiser Bauxite have indemnification obligations with respect
to those liabilities, while Gramercy and St. Ann have
administrative expenses of at least $5 million payable in the
Debtors' Chapter 11 cases.

To the extent the aggregate estimate of Administrative Expenses
is not currently covered in the Disclosure Statement, Gramercy
and St. Ann proposes that it should be amended to include an
additional $5 million and to specifically address those
administrative expenses payable to the claimants.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading  
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 75; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


KAISER ALUMINUM: Files First Amended Joint Plan
-----------------------------------------------
Kaiser Aluminum Corporation, Kaiser Aluminum & Chemical
Corporation (KACC) and the 19 subsidiaries filed on August 24,
2005 a first amended joint plan of reorganization (the Kaiser
Aluminum Amended Plan) and an amended disclosure statement (the
Kaiser Aluminum Amended Disclosure Statement) with the United
States Bankruptcy Court for the District of Delaware (the
"Court").

On June 29, 2005, Kaiser Aluminum Corporation announced that it,
Kaiser KACC and 19 of their subsidiaries filed a joint plan of
reorganization (the "Kaiser Aluminum Plan") and related
disclosure statement with the Court. Information concerning the
Kaiser Aluminum Plan is included in the Company's Current Report
on Form 8-K dated June 29, 2005 as well as in the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30,
2005.

Bankruptcy law does not permit the solicitation of acceptances
for the Kaiser Aluminum Amended Plan until the Court approves
the Kaiser Aluminum Amended Disclosure Statement. The Kaiser
Aluminum Amended Plan will become effective if and when it
receives the requisite stakeholder approval and is confirmed by
the Court. In addition, approval must be obtained from the
United States District Court regarding the treatment of asbestos
personal injury claims in the Kaiser Aluminum Plan. The Company
refers to the limitations and qualifications included in the
Kaiser Aluminum Amended Disclosure Statement. In addition, the
Company notes that all information contained in the Kaiser
Aluminum Amended Disclosure Statement is subject to change,
whether as a result of additional amendments to the Kaiser
Aluminum Amended Plan, as a result of third party actions or
otherwise.

The Kaiser Aluminum Amended Disclosure Statement contains
certain projections (the Projections) of financial performance
for the fiscal years 2005 through 2008. The debtors do not, as a
matter of course, publish their business plans, budgets or
strategies, or make external projections or forecasts of their
anticipated financial position or results of operations. The
Company refers to the limitations and qualifications included in
the Kaiser Aluminum Amended Disclosure Statement, including
without limitation those set forth under the captions
"Reorganized Kaiser - Projected Financial Information -
Principal Assumptions" and "New Common Stock - Risk Factors -
Risks Relating to Certain Financial Information Regarding the
Reorganized Debtors" with respect to the Projections.

Separately, the Company announced that, on August 22, 2005, KACC
and various underwriters at Lloyd's of London reinsured by
Equitas entered into a settlement agreement (the "Lloyds
Settlement") whereby the underwriters have agreed to pay $137.0
million in settlement of their obligations under insurance
policies with a face value of approximately $170.0 million and
certain other coverage. In return for the cash payment, the
Lloyds Settlement, if ultimately approved, would release the
underwriters from their coverage liabilities, which were part of
the previously disclosed insurance coverage litigation, and
certain other coverage. The $137.0 million payment by the
underwriters is required to be made to a settlement agent within
30 days of Court approval of the Lloyds Settlement. Such amounts
will be paid by the settlement agent only to personal injury
trusts upon the effectiveness of a plan of reorganization.

The Lloyds Settlement is subject to Court approval, approval of
a plan of reorganization for the Company, and may be terminated
in certain other circumstances, including if certain asbestos-
related legislation in the United States is enacted into law on
or before December 31, 2005. If the Lloyds Settlement were to be
terminated, the funds along with interest would be refunded to
the underwriters and coverage litigation could be reinstated
against the underwriters. The Company has not determined what,
if any, impact the Lloyds Settlement will have on either the
aggregate amount of Personal injury-related insurance recoveries
receivable recognized in the Company's balance sheet or the
amount of any charge that may be recognized in light of the
Lloyds Settlement payment amount being for less than the face
amount of the policies in the coverage litigation. Settlements
with other insurers that are generally similar to the Lloyds
Settlement may occur in the future, although no assurances can
be provided that any such additional settlements will occur. See
Note 9 of Notes to Interim Consolidated Financial Statements and
Critical Accounting Policies in the Company's Quarterly Report
on Form 10-Q for the period ended June 30, 2005 for additional
discussion regarding personal injury-related matters.

Lastly, the Company announced that the Court had approved its
extension of exclusivity for all debtors through September 30,
2005.



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

AOL LATIN AMERICA: Members of Board of Directors Resign
-------------------------------------------------------
Messrs. Steven Bandel, Gustavo Cisneros, Ricardo Cisneros, M.
Brian Mulroney, Joseph Redling and Neil Smit resigned on August
19, 2005 resigned as members of the Board of Directors of
America Online Latin America, Inc. ("AOLA"). AOLA does not
expect to fill the vacancies created by these resignations.

Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. offers AOL-branded Internet service in Argentina,
Brazil, Mexico, and Puerto Rico, as well as localized content
and online shopping over its proprietary network. Principal
shareholders in AOLA are Cisneros Group, one of Latin America's
largest media firms, Brazil's Banco Itau, and Time Warner,
through America Online.

CONTACT: AOL Latin America
         6600 N. Andrews Ave.
         Suite 400 Ft. Lauderdale
         FL 33309
         Phone:(954) 233-1803


CINTRA: Approves 18 "Expressions of Interest" in Airlines
---------------------------------------------------------
State airline holding company Cintra SA has approved 18
"expressions of interest" in Aeromexico and Mexicana as fit to
continue in the sale process of its two main assets, says
Reuters. Cintra said more investors may join the bidding in the
future.

Aeromexico and Mexicana are being sold separately, although
investors are allowed to submit bids for both. Cintra is hoping
to receive financial offers for the carriers in November, and to
sell at least 51% of each by the end of the year.

Credit Suisse First Boston (CSR) is managing the sale.

CONTACT: Cintra S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle Mexico
         Phone: (5)448 - 8000
         E-mail: infocintra@cintra.com.mx
         Web site: http://www.cintra.com.mx


EMPRESAS ICA: Consortium Loses Bid on Rail Project
--------------------------------------------------
The consortium, in which Mexican construction concern Empresas
ICA has a 12.5% stake, lost a bid to build a suburban rail line
in Mexico City. Dow Jones Newswires reports that the transport
and communications ministry awarded the rail project to a
consortium led by Spanish transportation concern Construcciones
y Auxiliar de Ferrocarriles SA (CAF)

CAF outbid the ICA consortium, which also included Mexico's
Grupo Hermes SA and French company Alstom SA, for the 27-
kilometer rail line connecting the old Buenavista rail station
in northern Mexico City and Cuautitlan in neighboring Mexico
state.

Analysts with local brokerage Ixe said being outbid was more of
a missed opportunity than a material loss for ICA.

"Winning this project would have been a catalyst for the
company, more than anything because of the publicity," the
analysts said in a research note. "Nonetheless, it has to be put
into perspective," they added.

Ixe suggested ICA's stake in the consortium was expected to
bring it about US$66 million in revenue, or less than 4% of the
Company's construction backlog for the next 14 months.

CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.
         Col. Escandon Del Migual Hidalgo
         Mexico City, 11800
         Mexico
         Phone: 525-272-9991
         URL: http://www.ica.com.mx


HOME PRODUCTS: Restating Fiscal 2005 Financial Statements
---------------------------------------------------------
Home Products International, Inc.'s senior management determined
that the Company's financial statements for the quarter ended
April 2, 2005, and the fiscal year ended January 1, 2005,
including the quarterly periods within that fiscal year, should
no longer be relied on because the accounting treatment
regarding a deferred tax liability related to goodwill and
certain other adjustments were inaccurately reflected in those
Financial Statements.  

This conclusion was reviewed with and agreed to by the Audit
Committee of the Company's Board of Directors.  As a result, the
Company determined it would be appropriate to restate the
Financial Statements.

Beginning in 2004, the Company accounted for its deferred tax
liability related to goodwill as a reversing taxable temporary
difference.  Following Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets, the
deferred tax liability related to the Company's goodwill should
have been considered as a liability related to an asset with an
indefinite life, which could not support the realization of
deferred tax assets.  

Therefore, the Company will record additional deferred tax
expense of $2.9 million, to increase its deferred tax valuation
allowance for fiscal year 2004 and additional deferred tax
expense of $0.7 million for the first quarter of fiscal year
2005.

These non-cash adjustments have no impact on the Company's
compliance with covenants related to either its $60 million
revolving credit facility of which $25.0 million was outstanding
as of January 1, 2005 and $11.8 million as of April 2, 2005, its
9-5/8% Senior Subordinated Notes due 2008 of which $116 million
was outstanding at January 1, 2005, and on April 2, 2005, or its
payment of incentives to management.

In conjunction with this restatement the Company will also make
adjustments to correct errors that were identified in connection
with the second quarter fiscal year 2005 close process related
to its accounting for an operating lease and its accounting for
its Mexico subsidiary.  These adjustments are all non-cash
entries but will reduce net income by $0.5 million for fiscal
year 2004.

The Company's senior management and the Audit Committee of the
Company's Board of Directors have discussed these matters with
KPMG LLP, independent registered public accounting firm.

After reviewing the circumstances leading up to the restatement,
the Company and the Audit Committee believe that the errors were
inadvertent and unintentional.  However, a review of the
internal control processes in the area of income tax accounting
indicate that the Company's disclosure controls and procedures
were not effective as of January 1, 2005, and through the date
of this filing, because of a material weakness in internal
control over financial reporting with respect to accounting for
income taxes. Management has designed and is in the process of
implementing certain improvements in its internal control over
financial reporting to address the tax accounting error and will
test these controls in subsequent accounting periods.

Home Products International, Inc., is an international consumer
products company specializing in the manufacture and marketing
of quality diversified housewares products. The Company sells
its products through national and regional discounters including
Kmart, Wal-Mart and Target, hardware/home centers, food/drug
stores, juvenile stores and specialty stores.

As of July 2, 2005, Home Products' equity deficit widened to  
$11,203,000 from a $907,000 deficit at Jan. 1, 2005. (Troubled
Company Reporter, Thursday, August 25, 2005, Vol. 9, No. 201)


LEAR CORP: Promotes CFO David Wajsgras to Exec. Vice President
--------------------------------------------------------------
Lear Corporation's (NYSE: LEA) Chief Financial Officer David
Wajsgras has been promoted to executive vice president.

With respect to organizational structure, Lear is realigning its
global Customer and Product Groups under the leadership of Doug
DelGrosso, Lear President and Chief Operating Officer.

  * Ray Scott has been promoted to senior vice president of Lear
    and president of the North American Customer Group.  In this
    new role, MR. Scott will be responsible for Lear's North
    American-based customers on a global basis.

  * Joe Zimmer has been promoted to senior vice president of
    Lear and president of the Global Seating Systems Product
    Group. In addition to his seating responsibilities, Mr.
    Zimmer will continue to oversee on a regional basis all
    activities in Europe.

  * Miguel Herrera-Lasso has been promoted to senior vice
    president of Lear and president of the Electrical &
    Electronics Systems Product Group, which he will continue to
    manage on a global basis.

  * Lou Salvatore has been promoted to senior vice president of
    Lear and president of the Global Asian Customer Group.  In
    this new role, Mr. Salvatore will be responsible for our
    Asian OEM business globally.

  * Jim Brackenbury has been promoted to senior vice president
    of Lear and president of the Mexican/Central American
    Regional Group.  Mr. Brackenbury will continue to manage
    Lear's operations in Mexico and Central America.

"We are announcing further organizational changes today as part
of our continuing efforts to improve our operating efficiency,
increase our organizational effectiveness and reposition the
company for future profitability," said Bob Rossiter, Lear
Chairman and Chief Executive Officer.

Lear Corporation is one of the world's largest automotive
interior systems suppliers.  For the second quarter of 2005,
Lear posted net sales of $4.4 billion and a net loss of $44.4
million.  

As reported in the Troubled Company Reporter on August 2, 2005,
Moody's Investors Service downgraded the senior unsecured debt
rating of Lear Corporation to Ba2 from Baa3.  At the same time
the rating agency assigned a Corporate Family rating (previously
called senior implied) of Ba2, and a Speculative Grade Liquidity
rating of SGL-2, representing good liquidity over the next
twelve months.(Troubled Company Reporter, Thursday, August 25,
2005, Vol. 9, No. 201)


VITRO: Planned Sale Not Enough to Explain Huge Stock Surge
----------------------------------------------------------
Glass maker Vitro has seen an almost 50% rise in its share price
following an announcement last month that it expects to sell its
stake in tableware division Vitrocrisa to U.S. partner Libbey to
pay down part of its heavy debt.

But, according to Reuters, analysts believe that something,
other than the planned asset sale, has also caused the rally.
The asset sale is a step in the right direction but not enough
to explain the huge stock surge, analysts said.

"Vitrocrisa is not sufficient [reason] for the stock to have
risen so much," said Anibal Habeica, an analyst at Scotiabank in
Mexico City. "There has to be something else the market is not
seeing."

Some traders have suggested the impressive recent turnaround
stories of other industrials like Hylsamex and Alfa may be
rubbing off on Vitro's rising stock price.

But while analysts acknowledged investors in a bull market often
need little justification to latch on to a stock, they warn the
glassmaker remains far from an ideal investment.

Pressured by heavy competition, Vitro has been unloading some of
its units in recent months in a bid to focus activities around
its key flat glass and container businesses.

The Company, controlled by the Sada family in the northern city
of Monterrey, has debts nearing US$1.5 billion.

"Despite the divestiture of noncore businesses and use of
proceeds for debt repayment, Vitro's leverage remains high,"
warned Fitch Ratings in May when it placed the company on
"Rating Watch Negative," which indicates a probable downgrade.

"They are making the company smaller and smaller, but what I am
interested in are the financial ratios, ... and those are not
getting any better," said an analyst in Mexico City who
requested not to be named.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Founded in 1909 in Monterrey, Mexico-based Vitro has
joint ventures with major world-class partners and industry
leaders that provide its subsidiaries with access to
international markets, distribution channels and state-of-the-
art technology.

CONTACT:  Vitro, S.A. de C.V.
          Media Relations: Albert Chico Smith
          Tel: +52-81-8863-1335
          E-mail: achico@vitro.com

          Financial Community: Leticia Vargas
          Tel: +52-81-8863-1219
          E-mail: lvargasv@vitro.com

          Adrian Meouchi
          Tel: +52-81-8863-1350
          E-mail: ameouchi@vitro.com
          URL: http://www.vitro.com



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

CENTENNIAL COMMUNICATIONS: To Elect Nine Directors September 27
---------------------------------------------------------------
The Stockholders of Centennial Communications Corp. will elect
nine directors and ratify the appointment of Deloitte & Touche
LLP as independent auditors of the Company. These will be
decided during the 2005 Annual Meeting of Stockholders, which
will be held at The Waldorf-Astoria Hotel, 301 Park Avenue, New
York, NY 10022, on Tuesday, September 27, 2005, at 11:00 a.m.,
local time.

Agenda:
  
1. To elect nine directors to serve until the next Annual
Meeting of Stockholders and thereafter until their successors
are elected and qualified

2. To ratify the appointment of Deloitte & Touche LLP as
independent auditors for the Company for the fiscal year ending
May 31, 2006

3. To transact such other business as may properly come before
the meeting

The Board of Directors has set August 19, 2005 as the record
date for the Annual Meeting. Owners of common stock at the close
of business on that date are entitled to receive notice of and
vote at the Annual Meeting.

CONTACT: Centennial Communications
         Steve E. Kunszabo
         Director, Investor Relations
         Phone: 732-556-2220
         URL: http://www.centennialwireless.com/
              http://www.centennialpr.com/  
              http://www.centennialrd.com/



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

CADAFE: President Denies Government Intervention Potential
----------------------------------------------------------
Cadafe President Nervis Villalobos ruled out the possibility of
a government intervention at the state-owned power company,
reports Business News Americas. Villalobos was responding to a
national assembly paper that recommended putting Cadafe under
independent control to improve its operations.

Cadafe is in a precarious financial position owing to the VEB999
billion (US$465 million) in late debt payments by state and
municipal governments as well as state-owned companies. But
there will be no government intervention at the Company in the
foreseeable future, says Mr. Villalobos.

The executive revealed that a mechanism has been put in place so
that state companies and local governments can pay their debts.

Cadafe will submit in September its 2004 financial results,
which show the Company is "perfectly auditable," said Mr.
Villalobos.



                            ***********


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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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