TCRLA_Public/050829.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

Monday, August 29, 2005, Vol. 6,  Issue 170

                         Headlines

A R G E N T I N A

ALBICA S.R.L.: Court Grants Reorganization Plea
CRESUD: Holder of Convertible Notes Exercises Conversion Right
INDUSTRIAS BADAR: Gets Court Approval for Reorganization
LA BRESCIANA: General Report Submission Deadline Nears
NOW FAST S.R.L.: Trustee to Submit General Report

RAHGSA: S&P Retains Speculative Rating on Bonds
SANATORIO MODELO: New Date Set for Informative Assembly
TELECOM ARGENTINA: S&P to Lift Ratings Upon Completion of APE
TOM DISTRIBUIDORA S.R.L.: Deadline for General Report Approaches


B E R M U D A

AMATRA LTD.: Sole Member Resolves to Wind Up Company
COMATRA LTD.: Appoints Mr. Ernest A. Morrison as Liquidator
LORENTZEN BULK: To be Wound Up Voluntarily
SOMATRA LTD.: Mr. Ernest A. Morrison Appointed as Liquidator


B R A Z I L

BANCO PACTUAL: Fitch Affirms Ratings
ELETROPAULO METROPOLITANA: Banco Itau to Coordinate Bond Sale
ENRON CORP: Court OKs Turbine Claims Settlement Pacts
USIMINAS: To Have 16% Participation in Ternium


C H I L E

SR TELECOM: Completes 8.15% Debentures Exchange Offer
SR TELECOM: Announces Changes to the Board of Directors


E C U A D O R

PETROECUADOR: Reaches Preliminary Crude Agreement With PDVSA


E L   S A L V A D O R

BANCO AGRICOLA: Restructured Loans, Foreclosures Constrain Rtgs
BANCO CUSCATLAN: Reports 27% Increase in 1H05 Earnings
BANCO SALVADORENO: Vulnerable Asset Quality Constrains Rating


J A M A I C A

DYOLL: Supreme Court Formally Appoints Joint Liquidators


M E X I C O

BALLY TOTAL: Reaches Agreement With Holders to Consent to Waiver
GRUPO MEXICO: Officials Don't See Workers Pursuing a Strike
METALFORMING: Brings In DoveBid Valuation to Appraise Equipment
METALFORMING: Hires Complete Appraisal as Real Estate Appraiser
VITRO: Unit Closes Trade Receivables Securitization


P A R A G U A Y

ACEPAR: Investigation Reveals Deficiencies in Emission System


P U E R T O   R I C O

DORAL FINANCIAL: Receives Document Subpoena from U.S. Attorney
DORAL FINANCIAL: Names Antonio Faria as Doral Bank CEO
R&G FINANCIAL: Appoints Vicente Gregorio as Senior VP, CFO


V E N E Z U E L A

EDC: Plans to Increase Hydro Power Purchases from Edelca

     -  -  -  -  -  -  -  -

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

ALBICA S.R.L.: Court Grants Reorganization Plea
-----------------------------------------------
Albica S.R.L. successfully petitioned for reorganization after
Court No. 8 of Buenos Aires' civil and commercial tribunal
issued a resolution opening the Company's insolvency proceedings
with the assistance of Clerk No. 16.

Under insolvency protection, the Company will continue to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee.

Infobae relates that Mr. Juan Carlos Alcuaz will serve as
trustee during the course of the reorganization. The trustee
will be accepting creditors' proofs of claim for verification
until Sep. 13, 2005.

After verification, the trustee will prepare the individual
reports and present it in court on Oct. 25, 2005. He will also
present a general report for court review on Dec. 6, 2005.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on June 8, 2006.

CONTACT:  Mr. Juan Carlos Alcuaz, Trustee
          Avda Cordoba 1522
          Buenos Aires


CRESUD: Holder of Convertible Notes Exercises Conversion Right
--------------------------------------------------------------
Cresud S.A.C.I.F. y A announced in a letter sent to the Bolsa de
Comercio de Buenos Aires and the Comision Nacional Valores that
a holder of the Company's Convertible Notes exercised its
conversion right.

The financial indebtedness of the Company shall be reduced in
US$75,312 and an increase of 148,309 ordinary shares face value
pesos 1 each was made.

The conversion was performed according to terms and conditions
established in the prospectus of issuance at the conversion rate
of 1.96928 shares, face value pesos 1 per Convertible Note of
face value US$1.

As a result of that conversion the amount of shares of the
Company goes from 162,883,042 to 163,031,351.

On the other hand, the amount of registered Convertible Notes is
US$40,002,232.

CONTACT:  CRESUD S.A.C.I.F. Y A.
          Gabriel Blasi, CFO
          Phone: 011-54-11-4323-7449
          E-mail: finanzas@cresud.com.ar
          URL: http://www.cresud.com.ar


INDUSTRIAS BADAR: Gets Court Approval for Reorganization
--------------------------------------------------------
Industrias Badar S.R.L. will commence a reorganization process
following the approval of its petition by Court No. 11 of Buenos
Aires' civil and commercial tribunal.

The opening of the reorganization will allow the Company to
negotiate a settlement with its creditors in order to avoid a
straight liquidation.

Azar, Lavezzari will oversee the reorganization proceedings as
the court-appointed trustee, verifying creditors' claims until
Nov. 9, 2005 and presenting these claims in court as individual
reports on Dec. 22, 2005.

The trustee is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on March 6, 2006.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on Aug. 23, 2006.

Clerk No. 21 assists the court on this case.

CONTACT: Industrias Badar S.R.L.
         Melincue 4254
         Buenos Aires

         Azar, Lavezzari, Trustees
         Avda Corrientes 1312
         Buenos Aires


LA BRESCIANA: General Report Submission Deadline Nears
------------------------------------------------------
The submission of the general report on the La Bresciana
S.A.C.I.F.I. reorganization will be tomorrow, Aug. 30, 2005.
Court-appointed trustee Alicia Tellechea will include in the
report the Company's audited accounting and business records as
well as the summary of important events pertaining to the
reorganization.

The Company began reorganization following the approval of its
petition by Court No. 7 of Quilmes' civil and commercial
tribunal. The opening of the reorganization will allow the
Company to negotiate a settlement with its creditors in order to
avoid a straight liquidation.

Ms. Tellechea verified creditors' claims until June 3, 2005. The
validated claims were presented in court as individual reports
on July 19, 2005.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on March 2 next year.

CONTACT: La Bresciana S.A.C.I.F.I.
         Calle 321 Nro. 2666
         Quilmes

         Ms. Alicia Tellechea, Trustee
         Garibaldi 204
         Quilmes


NOW FAST S.R.L.: Trustee to Submit General Report
-------------------------------------------------
Mr. Jose Antonio Planas, the court-appointed trustee for the Now
Fast S.R.L. liquidation case, will submit the general report
tomorrow, Aug. 30, 2005. The report will contain a summary of
the Company's financial status and relevant events pertaining to
the bankruptcy.

Now Fast S.R.L. began liquidating its assets following the
pronouncement of Buenos Aires' civil and commercial Court No. 7
that the Company is bankrupt.

Mr. Planas verified creditors' proofs of claim until May 20,
2005. The validated claims were presented in court as individual
reports on July 5, 2005.

CONTACT: Mr. Jose Antonio Planas, Trustee
         Paraguay 631
         Buenos Aires


RAHGSA: S&P Retains Speculative Rating on Bonds
-----------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained the 'raB+' rating on US$33 million worth of bonds
issued by local Company Raghsa S.A., says the country's
securities regulator CNV. The Company's finances as of March 31,
2005 determined the rating agency's action.

The rating denotes that the bonds face exposure to adverse
business or economic conditions, which could lead to the
Company's inadequate capacity to meet its financial commitment,
said the ratings agency.

The CNV described the affected bonds as "Obligaciones
Negociables", under "Simple Issue". These come due on February
28, 2012.


SANATORIO MODELO: New Date Set for Informative Assembly
-------------------------------------------------------
The informative assembly for the Sanatorio Modelo S.A.
insolvency case is moved to Dec. 15, 2005, Infobae reports.
During the assembly, the Company will present the completed
settlement proposal to its creditors.

San Miguel de Tucuman's civil and commercial Court No. 7 earlier
approved the Company's petition for reorganization. The approval
paved the way for the Company to begin drafting a settlement
proposal with its creditors in order to avoid liquidation.

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

CONTACT: Sanatorio Modelo S.A.
         San Miguel de Tucuman
         Tucuman


TELECOM ARGENTINA: S&P to Lift Ratings Upon Completion of APE
-------------------------------------------------------------
Telecom Argentina S.A. (TECO; D/--/--), an Argentine-based
integrated telecom provider, recently announced that it is close
to concluding the restructuring of its financial debt under an
Acuerdo Preventivo Extrajudicial. The company expects to
conclude the debt exchange and make the cash payments according
to the new agreement by Aug. 31, 2005. Cash payments for about
$1.3 billion include the cash option of the APE; interest
accrued between Jan. 1, 2004, and August 31, 2005; principal
maturities up to that time; and principal prepayments for
maturities originally scheduled for October 2005, April and
October 2006, and April and October 2007. Standard & Poor's
Ratings Services expects to raise its local and foreign currency
long-term corporate credit ratings on TECO to 'B-' from 'D' once
the APE is completed and, since none of the defaulted debt will
remain unpaid, to withdraw its issue ratings on the debt that is
currently in default.

Primary Credit Analyst: Ivana Recalde, Buenos Aires
(54) 114-891-2127; ivana_recalde@standardandpoors.com

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires
(54) 114-891-2125; pablo_lutereau@standardandpoors.com


TOM DISTRIBUIDORA S.R.L.: Deadline for General Report Approaches
----------------------------------------------------------------
The deadline for general report on the Tom Distribuidora S.R.L.
liquidation will be tomorrow, Aug. 30, 2005. The submission of
the report was preceded by the presentation of the creditors'
individual claims on July 4, 2005. The authentication of these
claims lasted until May 19, 2005.

An informative assembly is set for March 9 next year.

Buenos Aires' civil and commercial Court No. 8 declared the
Company bankrupt and appointed Ms. Sara Maria Rey De Lavolpe as
trustee. The city's Clerk No. 15 assists the court with
the proceedings.

CONTACT: Ms. Sara Maria Rey De Lavolpe, Trustee
         Avda Cerrito 1136
         Buenos Aires



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

AMATRA LTD.: Sole Member Resolves to Wind Up Company
----------------------------------------------------
   IN THE MATTER OF THE COMPANIES ACT 1981

                     And

         IN THE MATTER OF Amatra Ltd.

By Written Resolutions of the Sole Member of Amatra Ltd., on
August 19, 2005, the following RESOLUTIONS were duly passed:

1) THAT the Company be wound up voluntarily pursuant to the
provisions of the Companies Act, 1981; and

2) THAT Mr. Ernest A. Morrison be and is hereby appointed
Liquidator for the purposes of winding-up, such appointment to
be effective forthwith.

The Liquidator further informs that:

- Creditors of the Company are required on or before September
8, 2005, to send their names and addresses and the particulars
of their debts or claims to the Liquidator of the Company and,
if so required by notice in writing from the said Liquidator, to
come in and prove their said debts or claims at such time and
place as shall be specified in such notice or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.

- The Final General Meeting of the Sole Member of the above-
named Company will be held at the offices of Cox Hallett
Wilkinson, Milner House, 18 Parliament Street, Hamilton HM12, on
September 26, 2005 at 10:00 a.m. for the following purposes:

1) 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;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


COMATRA LTD.: Appoints Mr. Ernest A. Morrison as Liquidator
-----------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                          And

              IN THE MATTER OF Comatra Ltd.

By Written Resolutions of the Sole Member of Comatra Ltd., on
August 19, 2005, the following RESOLUTIONS were duly passed:

1) THAT the Company be wound up voluntarily pursuant to the
provisions of the Companies Act, 1981; and

2) THAT Mr. Ernest A. Morrison be and is hereby appointed
Liquidator for the purposes of winding-up, such appointment to
be effective forthwith.

The Liquidator further informs that:

- Creditors of the Company are required on or before September
8, 2005, to send their names and addresses and the particulars
of their debts or claims to the Liquidator of the Company and,
if so required by notice in writing from the said Liquidator, to
come in and prove their said debts or claims at such time and
place as shall be specified in such notice or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.

- The Final General Meeting of the Sole Member of Comatra Ltd.
will be held at the offices of Cox Hallett Wilkinson, Milner
House, 18 Parliament Street, Hamilton HM12, on September 26,
2005 at 10:00 a.m. for the following purposes:

1) 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;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


LORENTZEN BULK: To be Wound Up Voluntarily
------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                           And

        IN THE MATTER OF Lorentzen Bulk Carriers Ltd.

The Sole Member of Lorentzen Bulk Carriers Ltd., acting by
written consent without a meeting on August 18, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of the above named Company, which is being
voluntarily wound up, are required, on or before September 7,
2005, to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Robin J
Mayor, the Liquidator of the said Company, and if so required by
notice in writing from the said Liquidator, and personally or by
their lawyers, to come in and prove their debts or claims at
such time and place as shall be specified in such notice, or in
default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Sole Member of the above named
Company will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 28, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street
         Hamilton
         HM DX, Bermuda


SOMATRA LTD.: Mr. Ernest A. Morrison Appointed as Liquidator
------------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                           And

               IN THE MATTER OF Somatra Ltd.

By Written Resolutions of the Sole Member of Somatra Ltd., on
August 19, 2005, the following RESOLUTIONS were duly passed:

1) THAT the Company be wound up voluntarily pursuant to the
provisions of the Companies Act, 1981; and

2) THAT Mr. Ernest A. Morrison be and is hereby appointed
Liquidator for the purposes of winding-up, such appointment to
be effective forthwith.

The Liquidator further informs that:

- Creditors of the Company are required on or before September
8, 2005, to send their names and addresses and the particulars
of their debts or claims to the Liquidator of the Company and,
if so required by notice in writing from the said Liquidator, to
come in and prove their said debts or claims at such time and
place as shall be specified in such notice or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.

- The Final General Meeting of the Sole Member of Somatra Ltd.
will be held at the offices of Cox Hallett Wilkinson, Milner
House, 18 Parliament Street, Hamilton HM12, on September 26,
2005 at 10 o'clock in the forenoon for the following purposes:

1) 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;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton
         Bermuda



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

BANCO PACTUAL: Fitch Affirms Ratings
------------------------------------
Fitch Ratings, the international rating agency, affirmed
Thursday Banco Pactual S.A.'s ratings (Pactual) and those of its
fully owned subsidiary Pactual Overseas Corporation (POC) as
follows:

Banco Pactual S.A.

--Long-term foreign currency rating 'BB-' with a Stable Outlook;
--Long-term local currency rating 'BB-' with a Stable Outlook;
--Short-term foreign and local currency rating 'B';
--Individual rating 'C/D';
--Support rating '5';
--National long-term rating 'A+(bra)' with a Stable Outlook;
--National short-term rating 'F1(bra)'.

Pactual Overseas Corporation

--Long-term foreign currency rating 'BB-' with a Stable Outlook;
--Long-term local currency rating 'BB-' with a Stable Outlook;
--Short-term foreign and local currency rating 'B';
--Support rating '4'.

POC is fully owned by Pactual, is an integral part of its
parent's consolidated operation, and is managed directly by
Pactual. Pactual's ratings reflect its well defined strategy and
philosophy, which relies on experienced partners, strict risk
controls, and technical capabilities to preserve capital while
operating profitably. Pactual's foreign and local currency
ratings are at Brazil's country ceiling, reflecting a balance
sheet dominated by Brazilian federal government debt instruments
and the risks inherent in operating in a highly volatile market.
Profitability is ensured by strong and diversified fee income.

Pactual is one of Brazil's leading investment banks, operating
across diverse segments of the domestic and international
financial markets; unlike most of its local competitors, it does
not form part of a broader commercial banking group. Its
activities focus principally on the foreign exchange and
interest rate futures markets and on trading of sovereign and
private debt instruments and derivatives. Its consistent stream
of non-interest income derives from successful activities in
asset management, capital markets, corporate finance advisory
services, and private banking.

Fitch will be releasing a complete analysis on Pactual shortly.

CONTACT: Kathryn Beeck +5511 4504 2600, Sao Paulo
         Maria Rita Goncalves +5521 4503 2600l, Rio de Janeiro
         Peter Shaw +1-212-908-0553, New York

MEDIA RELATIONS: Jaqueline Carvalho +55 21 4503 2623
                 Rio de Janeiro


ELETROPAULO METROPOLITANA: Banco Itau to Coordinate Bond Sale
-------------------------------------------------------------
Electric power utility Eletropaulo Metropolitana Eletricidade de
Sao Paulo SA will issue non-convertible debentures worth BRL800
million. According to Dow Jones Newswires, Banco Itau BBA has
been tapped to coordinate the sale, which is the latest in a
series of large-scale issues by local companies. Eletropaulo,
which is controlled by a joint venture of Arlington, Va.-based
AES Corp. (AES) and Brazil's National Development Bank, didn't
unveil details about the maturity or interest rate for the
corporate bonds.

CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
         Investor Relations Manager
         Ms. Clarice Silva Assis
         E-mail: clarice.assis@aes.com
         Phone:(55 11) 2195-2229
         Fax:(55 11) 2195-2503


ENRON CORP: Court OKs Turbine Claims Settlement Pacts
-----------------------------------------------------
Pursuant to Rule 9019 of the Federal Rules of Bankruptcy
Procedure, Reorganized Debtors Enron Corp., Enron South America
LLC, Enron Power Corp., Enron International, Inc., Enron do
Brazil Holdings Ltd. and Superior Construction Company ask the
U.S. Bankruptcy Court for the Southern District of New York to
approve a Settlement Agreement with:

   a. Claimants EPE-Empresa Produtora de Energia Ltda, EPE
      Holdings Ltd., EPE Investments Ltd., Shell Cuiaba Holdings
      Limited, and Enron Power Construction Company Ltda; and

   b. International Underwriters Munich Reinsurance Company UK
      General Branch, Allianz Cornhill Insurance PLC, Gerling
      Konzern Allgemeine Versicherungs AG, Solen Versicherungen
      AG, Converium AG and Syndicates 457 and 1173 at Lloyds,
      London, England.

EPE-Empresa, an entity indirectly owned 50% by Enron and 50% by
Shell Cuiaba, owns and operates a 480 MW thermal power plant --
the Cuiaba Power Plant -- in Mato Grosso, Brazil.

On March 15, 2001, the Claimants, the International Underwriters
and Underwriters AGF Brasil Seguros SA and IRB Brasil Resseguros
SA entered into contracts of insurance and reinsurance, which
Policies were to be effective until May 29, 2002.  Under the
terms of the Policies, the Underwriters agreed to insure and
reinsure certain property and business interruption risks
related to the Plant.

On August 25, 2001, GT11, one of the Plant's gas turbines,
suffered catastrophic failure because of a third stage turbine
blade failure.  Consequently, EPE-Empresa made claims under the
Policies for both property damage and business interruption
losses, which Turbine Claims have been denied by the
Underwriters.

In August 2002, EPE-Empresa filed a lawsuit against AGF Brasil
in the Civil Court of the Sao Paulo State Capital District
Central Court to recover $30 million in insurance proceeds under
the Policies.

The Reorganized Debtors, the Claimants and the International
Underwriters want to compromise and settle all issues regarding
the Turbine Claims.  After extensive, arm's-length and good
faith negotiations, the parties entered into the Settlement
Agreement.

The principal terms of the Settlement are:

A. Settlement Amount

   To fully resolve all disputes relating to the Turbine Claims,
   the Underwriters will pay $15 million to EPE-Empresa.

B. Consent Order

   The Claimants will execute with AGF Brasil and file with the
   Brazilian Court, for its approval, an order withdrawing the
   Sao Paulo Proceeding with prejudice.

C. Releases

   The Claimants and the Underwriters will release each other
   from all claims, causes of action and liabilities arising out
   of or with respect to the Turbine Claims under the Policies.

   The Underwriters also release and forever discharge Siemens
   AG or Siemens Westinghouse Power Corporation and any of their
   affiliates from any claims.

D. Assertions of Released Claims

   If contrary to the agreed releases, any party in any manner
   seeks relief or assert a claim against a released party,
   through any suit relating to any of the released claims,
   then:

      -- as to claims by any of the Underwriters, the remaining
         Underwriters;

      -- as to claims by any of Shell, EPE-Empresa, EPE
         Holdings, EPE Investments, the remaining EPE Claimants;
         and

      -- as to claims by any of Enron Brazil, ESA, Enron, EPC,
         EI, Superior, and Enron Power, the remaining Enron
         Claimants,

   will hold any released party harmless and pay on an indemnity
   basis to the released party against whom the claim is
   asserted, but only as to a claim by a party from within their
   classification, damages, attorneys' fees and expenses
   incurred provided that the aggregate amount payable by the
   Claimants pursuant to the indemnity and all other indemnities
   under the Settlement Agreement will not exceed $35,000,000.

   Any claim for indemnity must be made within seven years from
   March 31, 2005.

   The Claimants are not responsible and will not have liability
   in any way for any suit instituted by the Underwriters,
   any party not within the classification to which it belongs,
   or any third party seeking damages from any of the
   Underwriters for matters in any way related to the Claims
   provided, however, EPE-Empresa, but no other Claimant, agrees
   that if Enron Engineering and Procurement Co. or LJM Brasil
   Company or anyone claiming by, through or under either of
   them, in any manner seeks relief against the Underwriters
   through any suit relating to, any of the Claims then it will
   hold the Underwriters harmless and pay on an indemnity basis
   damages, attorneys' fees and expenses incurred provided that
   the aggregate amount payable by EPE-Empresa will not exceed
   $35,000,000.  Any claim for indemnity must be made within
   seven years from March 31, 2005.

The Reorganized Debtors believe that the Settlement is a very
favorable development for their Chapter 11 cases as it resolves
numerous complicated legal and factual issues relating to the
Turbine Claims.

At the Reorganized Debtors' request, Judge Gonzalez approves the
Settlement.

Headquartered in Houston, Texas, Enron Corporation --
http://www.enron.com/-- is in the midst of restructuring
various businesses for distribution as ongoing companies to its
creditors and liquidating its remaining operations.  Before the
company agreed to be acquired, controversy over accounting
procedures had caused Enron's stock price and credit rating to
drop sharply.

Enron filed for chapter 11 protection on December 2, 2001
(Bankr. S.D.N.Y. Case No. 01-16033).  Judge Gonzalez confirmed
the Company's Modified Fifth Amended Plan on July 15, 2004, and
numerous appeals followed.  The Confirmed Plan took effect on
Nov. 17, 2004. Martin J. Bienenstock, Esq., and Brian S. Rosen,
Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in
their restructuring efforts.  (Enron Bankruptcy News, Issue No.
156; Bankruptcy Creditors' Service, Inc., 15/945-7000)


USIMINAS: To Have 16% Participation in Ternium
----------------------------------------------
Brazilian steelmaker Usiminas said it will hold a 16% stake in
Ternium, a new Latin American steel venture led by Argentine
industrial conglomerate Techint.

In exchange for its participation in Ternium, Usiminas will
contribute its 5.3% stake in Argentina's Siderar and 16.6% of
Venezuela's Consorcio Amazonia, plus US$100 million in cash.

Ternium is strategically important to Usiminas because it
creates synergies between large-scale steelmakers and is a key
step forward in the global trend of steel consolidation,
Usiminas said.

The Company said it will also have a role in the management and
control of the new company, which will be based in Luxembourg.

Techint created Ternium to manage its stakes in Mexican steel
company Hylsamex, Siderar and Consorcio Amazonia, which owns 60%
of Venezuela's Sidor.

Usiminas is a leading supplier of flat steel products to the
Brazilian domestic market, besides selling its coated and
uncoated flat steels to a number of industries and distributors
in foreign markets.

CONTACT: Usinas Siderurgicas Minas Gerais SA
         Mr. Bruno Seno
         Phone: +55 (31) 3499-8710
         E-mail: brunofusaro@usiminas.com.br



=========
C H I L E
=========

SR TELECOM: Completes 8.15% Debentures Exchange Offer
-----------------------------------------------------
SR Telecom Inc. (TSX: SRX - News; Nasdaq: SRXA - News) announced
the completion of its offer to exchange its outstanding CDN$71
million 8.15% debentures due August 31, 2005 (the "8.15%
Debentures") and accrued interest thereon of approximately
CDN$4.8 million into new 10% Secured Convertible Debentures due
October 15, 2011 (the "10% Secured Convertible Debentures"). SR
Telecom also announced the resignation and appointment of
certain board members and the departure of Mr. David Adams, its
Senior Vice-President, Finance and Chief Financial Officer.

As previously announced, CDN$70.5 million in principal amount of
the 8.15% Debentures were tendered, representing approximately
99.3% of the outstanding 8.15% Debentures. In exchange, the
Corporation issued CDN$75.3 million of 10% Secured Convertible
Debentures, representing principal and accrued interest on the
8.15% Debentures tendered. Funds and accounts managed by DDJ
Capital Management, LLC hold approximately 33% of the
outstanding 10% Secured Convertible Debentures.

In addition, SR Telecom has amended the terms of the 8.15%
Debentures to, among other things, extend the maturity thereof
to coincide with the maturity date of the 10% Secured
Convertible Debentures and remove certain covenants. Holders of
8.15% Debentures who did not tender under the exchange offer
continue to hold such debentures, which debentures are governed
by the indenture so amended.

"We are pleased with the conclusion of the balance sheet
restructuring of SR Telecom. We can now turn our attention to
the innovation and customer service aspects of the business, as
we develop and deploy our symmetry and WiMax solutions," said
William E. Aziz, Interim President and Chief Executive Officer.

Jackson S. Craig, Vice President of DDJ Capital Management, also
commented, "The consummation of the exchange offer completes the
Company's recapitalization plan, and puts SR Telecom on a solid
footing to execute on its business plan and capitalize on its
future growth prospects."

SR TELECOM (TSX: SRX, Nasdaq: SRXA) designs, manufactures and
deploys versatile, Broadband Fixed Wireless Access solutions.
For over two decades, carriers have used SR Telecom's products
to provide field-proven data and carrier-class voice services to
end-users in both urban and remote areas around the globe. SR
Telecom's products have helped to connect millions of people
throughout the world.

A pioneer in the industry, SR Telecom works closely with
carriers to ensure that its broadband wireless access solutions
directly respond to evolving customer needs. Its turnkey
solutions include equipment, network planning, project
management, installation and maintenance.

SR Telecom is a principal member of WiMAX Forum, a cooperative
industry initiative which promotes the deployment of broadband
wireless access networks by using a global standard and
certifying interoperability of products and technologies.



SR TELECOM: Announces Changes to the Board of Directors
-------------------------------------------------------
As contemplated under the previously announced recapitalization
plan of the Corporation, SR Telecom announced the resignation of
John C. Charles, Constance L. Crosby, Nancy E. McGee, Peter L.
Jones, Paul E. Labbe and Robert E. Lamoureux as members of the
board of directors of the Corporation effective Thursday.

On behalf of the Corporation, Lionel Hurtubise, Chairman of the
SR Telecom Board of Directors, said, "SR Telecom wishes to thank
the outgoing directors for their leadership and service to the
Corporation and wish them success in their future endeavours."

The board of directors of the Corporation has appointed Kirk
Flatow, Patrick J. Lavelle and Paul J. Griswold to act as
directors effective Thursday, filling three of the vacancies
created by such resignations. SR Telecom expects that some of
the remaining vacancies shall be filled at a future date.

Mr. Flatow is Senior Vice President, Advanced Semiconductor
Packaging Group of Tessera, Inc. Prior to that, he served as
Senior Vice President of Marketing and Sales, a position he
assumed in February 2002. From January 2001 to December 2001,
Mr. Flatow served as President and Chief Executive Officer of
Novera Optics, Inc., a dynamic optical component company. From
April 1997 to January 2001, Mr. Flatow held several executive
positions at Harmonic, Inc., an optical networking company,
including President of Broadband Access Network Division, Vice
President of Worldwide Sales and Vice President of International
Operations. From October 1994 to April 1997, Mr. Flatow served
as Vice President of Business Development-North America for
Flextronics International Ltd. Mr. Flatow was co-founder of
nCHIP Inc. where, from February 1989 to October 1994, he held
senior level positions including Vice President of Worldwide
Sales, Vice President of Japan, Vice President of Finance and
Chief Financial Officer. Mr. Flatow received a B.S. from the
University of Santa Clara and an M.B.A. from the University of
Chicago.

Mr. Lavelle is Chief Executive Officer of Patrick J. Lavelle and
Associates, a management consulting firm. Mr. Lavelle is
currently Chairman of UE Waterheaters Inc., and is a director of
McQuarry Energy Inc., Westport Innovations Inc., Tahera Diamond
Corporation, and Canadian Bank Note Company Limited. He serves
as a Trustee of Arriscraft International Income Fund and
Retrocom Mid-Market Real Estate Investment Trust. He is Chairman
of the Bay of Spirits Gallery and on the advisory board of
International M.B.A. Program at York University. Mr. Lavelle has
previously served as Chairman and CEO of Unique Broadband
Systems Inc., VP Corporate Development at Magna International
Inc., Chairman of Export Development Corp., Chairman of the
Business Development Bank of Canada, and a director of Lions
Gate Entertainment Corp., Solign Technologies, Inc., Algoma
Steel Inc., Proprietary Industries Inc., Newmex Minerals Inc. He
was Chairman of Canadian Council for Aboriginal Business. He has
served as Deputy Minister of Industry, Trade and Technology for
Ontario, First Secretary of the Premier's Council, a senior
advisor to the Planning and Priorities Board of the Ontario
Cabinet and as agent General for the Government of Ontario in
Paris, France.

Mr. Griswold is CEO of SLI Holdings International, LLC of
Purchase New York. Prior to May 2003, he served as the
President, Chief Executive Officer and Director of Paxar
Corporation. He was elected President and Chief Executive
Officer of the company in August 2001. He had previously served
as the President and Chief Operating Officer since February
2000. Prior to that time, Mr. Griswold was the Senior Vice
President, Protective Packaging and International Operations, at
Pactiv Corporation, formerly Tenneco Packaging. Prior to joining
Tenneco in 1994, he was the Vice President of Packaging
Development and Procurement for Pepsi International.

Departure of the Chief Financial Officer

The Corporation announced the departure of David Adams as Senior
Vice- President, Finance and Chief Financial Officer. To ensure
proper transition, an agreement has been made that Mr. Adams
will continue in his current capacity until no later than
October 11, 2005.

"David has helped guide the Corporation through a challenging
period and SR Telecom is grateful to David for his dedicated
service," said Lionel Hurtubise, Chairman of SR Telecom's Board
of Directors. "We would like to thank him for his contributions
during his years with SR Telecom and wish him success in his
future endeavours."

Mr. Hurtubise indicated that a search is already in progress for
Mr. Adams' replacement.

Financial Advisor

Genuity Capital Markets advised SR Telecom on the
recapitalization plan and led negotiations with the Debenture
holders.

About DDJ Capital Management, LLC

DDJ Capital Management, LLC is a boutique investment manager
specializing in private equity and debt financings, as well as
high yield and special situations investing. Founded in 1996,
the Wellesley, Massachusetts based investment firm currently
manages approximately $3 billion on behalf of 78 institutional
clients.



=============
E C U A D O R
=============

PETROECUADOR: Reaches Preliminary Crude Agreement With PDVSA
------------------------------------------------------------
Venezuela state oil firm Petroleos de Venezuela (PDVSA) will
lend Petroecuador one million barrels of crude oil, along with
500,000 barrels of naphtha and 500,000 barrels of diesel,
between September and October, Dow Jones Newswires reports.

This arrangement falls under the preliminary agreement signed
recently by Ecuadorian and Venezuelan government officials.

The shipments are expected to cover Ecuador's crude supply
contracts abroad following five days of protests in the Amazon
provinces of Sucumbios and Orellana last week that cut
Petroecuador's output to 20,000 barrels a day (b/d) from normal
output of about 200,000b/d.

Crude transportation, however, remains a concern for PDVSA,
which is facing a transport capacity crunch.

Most of Ecuador's clients are on the US West Coast but PDVSA's
shipments usually go only as far as the Gulf of Mexico and the
US East Coast. PDVSA oil would have to be piped through Mexico
or shipped in tankers through the Panama canal, according to a
PDVSA official.

Ecuador will send crude back to Venezuela once its own oil
production ramps up again, but the exact payment terms have not
been made public.

"It's still to be determined how we will pay back that loan. We
are considering two options: that they give us six months to pay
it back in crude or in cash, but we haven't yet talked about
what price a cash payment would amount to," Ecuadorean Energy
Minister Ivan Rodriguez said.



=====================
E L   S A L V A D O R
=====================

BANCO AGRICOLA: Restructured Loans, Foreclosures Constrain Rtgs
---------------------------------------------------------------
Rationale

The ratings on Banco Agricola S.A. are constrained by an
important amount of restructured loans and foreclosures,
residual problems of the coffee sector, and the relatively small
size and limited diversification of El Salvador's economy. The
ratings are supported by Banco Agricola's leading market
position in El Salvador, its diversified loan portfolio, good
profitability, and broad base of retail deposits. The bank has
better efficiency ratios, lower funding costs, and lower
concentrations in its client base than do its peers.

Credit policies are adequate, and in the past year, Agricola
introduced important changes to underwriting processes to
improve asset quality. Total nonperforming assets (NPAs), that
include nonperforming loans (NPLs), foreclosed assets,
restructured assets, and Ficafe, went down to 12.5% as of June
2005 from 15% in 2001, which is still high by any standard. NPLs
show a better picture, as they decreased to 2% in June 2005 from
3% in 2003. Banco Agricola has the largest participation of
Ficafe of the El Salvadorian banks, with more than $100 million,
and it will continue to affect NPAs heavily. Foreclosed assets
have been cut in half since 2001 and restructured loans are also
declining, so a slight improvement in asset quality is expected
in the future.

Banco Agricola continues to be El Salvador's largest bank, with
$2.9 billion in assets and $318 million in equity as of June
2005, with a market penetration of 28% in deposits and loans. It
benefits from the largest distribution network in the country.
The bank has always focused on the mass market and is
consolidating its local leadership by emphasizing retail
deposits, loans to SMEs, and cross-selling other products. The
cost containment strategy has started to bear fruit, as
efficiency has improved to 50%, which is better than that of
peers in El Salvador and only surpassed by that of banks in
Panama. Standard & Poor's Ratings Services expects Agricola to
maintain a leading position in all its business lines and to
maintain an important exposure to El Salvador's economy.

Despite the tough economic and competitive environment, Agricola
has maintained its ROA above 1% in the past three years. That is
not high as compared to other Latin American banks, but it is
higher than that of peers in El Salvador. In our opinion,
Agricola's profitability is cleaner than that of peers, as it
depends less on market-related revenues, it has better
efficiency, and loan-loss reserves as a percentage of assets are
more important than for peers. ROA rose to 1.13% in June 2005
from 0.97% in 2002, but if an important nonrecurrent charge held
in the first half of 2005 had not been taken, ROA would have
increased to 1.3%, which is higher than that of peers. In the
cost side, there was an aggressive reduction in 2004 that
produced a swift decrease in noninterest expenses to 49% in
December 2004 from 55% in 2003. We expect profitability to be
maintained at its current levels.

Banco Agricola's main funding source continues to be customer
deposits, where it has a high 28% market share in deposits, and
that as of June 2005 represented 71% of total liabilities. The
liability side has been well managed and its broad customer base
has allowed Banco Agricola to maintain a cheaper funding
structure than those of other local institutions.

Banco Agricola as of June 2005 reported a 12.5% capital ratio,
and the future target is to maintain it above actual levels. We
think current capitalization and internal capital generation
could be enough to finance the bank's future needs, because loan
growth is not expected to be high. Adjusted total equity to
adjusted assets is similar to that of other banks, standing at
8.8%.

Outlook

The stable outlook reflects our opinion that the bank's
strategies and adequate operations should maintain profitability
at adequate levels in a stable economic environment. The ratings
could improve if NPAs advance toward Latin American standards,
if economic conditions recover, and the bank is capable of
profiting from them. An economic downturn or the continuation of
low growth prospects of the Salvadorian economy, however, could
affect the bank's overall performance, putting pressure on the
rating.

Primary Credit Analyst: Leonardo Bravo, Mexico City
(52)55-5081-4406; leonardo_bravo@standardandpoors.com

Secondary Credit Analyst: Francisco Suarez, Mexico City
(52) 55-5081-4474; francisco_suarez@standardandpoors.com


BANCO CUSCATLAN: Reports 27% Increase in 1H05 Earnings
------------------------------------------------------
Banco Cuscatlan reported earnings of US$15.9 million in the
first half of the year, up 27% from US$12.5 million in the same
period last year. According to Business News Americas, the bank
attributed the improvement to lower bad loan provisions.

Loan provisions dropped 51% to US$6.2 million, while operating
expenses fell 4% to US$31.2 million.

Net interest income fell 3% to US$49 million, while net non-
interest income was up 23% to US$15.6 million.

Asset fell 4% to US$2.44 billion, while net loans grew 7% to
US$1.48 billion. Retail deposits were unchanged at 6% to US$1.53
billion.

Banco Cuscatlan maintains its market position as the second-
largest bank in El Salvador, holding 22% of the system's
deposits and loans.


BANCO SALVADORENO: Vulnerable Asset Quality Constrains Rating
-------------------------------------------------------------
Rationale

The ratings on Banco Salvadoreno S.A. are constrained by its
vulnerable asset quality and low reserve coverage of
nonperforming assets (NPAs), which is also the case for other
banks in the country. The ratings are also constrained by the
relatively small size and limited diversification of El
Salvador's economy and strong competition. The ratings are
supported by the bank's satisfactory market position,
diversified portfolio, adequate performance, and lower exposure
to real state-related loans than that of peers.

Asset quality is regarded as vulnerable due to the risk of
operating in a relatively small and undiversified economy and
the shortage of provisions to fully cover loans that have proven
problematic. Although historically the bank has reported
adequate indicators of nonperforming loans (NPLs), standing at
1.7% as of June 2005, the balance of NPAs is high. NPAs are
composed of NPLs, restructured loans, repossessed assets, and
Ficafe, and reached 11% of total loans at June 2005.
Nevertheless, Banco Salvadoreno has a lower exposure to real
estate-related loans, including mortgages and construction
loans; however, the bank has a higher exposure than its peers to
foreclosed assets. Standard & Poor's Ratings Services maintains
its concern regarding Banco Salvadoreno's reserve shortage to
fully cover potential losses related to the significant balance
of NPAs. In this context, although reserves fully cover
delinquent loans, and foreclosed assets are 55% covered, the
ratio of total reserves to total NPAs weakens to 24%.

Under market turmoil, asset quality could be pressured further,
affecting operating performance. Although Banco Salvadoreno
faces important competition, mainly from the two largest banks
in the country-Banco Agr­cola and Banco Cuscatl n-it has been
able to maintain its position as the third-largest commercial
bank in El Salvador with a 17% market share in terms of deposits
and loans. There have been important organizational changes to
address the main challenges that the bank faces and improve the
bank's financial profile. A new president was hired in 2004,
sending a clear message of an advance on division of functions,
decreasing foreclosed assets, and the necessity of improving
asset quality. In addition, there was a capital increase of
$11.2 million in 2004 in the bank to strengthen capitalization,
and $16.5 million was injected into the holding company. In our
opinion, Banco Salvadoreno has the challenge of differentiating
itself from its peers while strengthening its originating and
underwriting processes to avoid the risk of losing market share.

Banco Salvadoreno's loan portfolio is adequately diversified by
industry. Slow economic growth in El Salvador has slowed the
bank's credit expansion, particularly in the commercial segment.
To compensate that, the bank has focused on increasing its
consumer business. In our view, slow loan growth will continue
since the economy is expected to expand moderately.

Profitability is adequate for the rating level, as ROA has been
sustained at about 1% in the past three years despite decreasing
net interest margins by increasing fees and commissions;
however, it remains lower than that of its closest peers. A more
conservative policy toward provisioning the balance of
problematic assets could result in lower profitability levels.
Another opportunity area for the bank to maintain profitability
levels is efficiency, an area the bank is working on. In our
opinion, the bank has to work harder to maintain its position in
the market given a more competitive environment.

The bank has historically maintained capitalization levels
slightly above regulatory requirements. As of June 2005, capital
was at 13.03%, which is higher than that of peers, while the
adjusted common equity-to-asset ratio stood at 9.74%, which is
similar to that of peers. Given slow expected loan growth and
reported ROEs of 10%, internal capital generation should finance
future growth.

Outlook

The outlook reflects our opinion that the bank's strategies and
adequate operations should maintain profitability at adequate
levels in a stable economic environment. An economic downturn or
the continuation of slow growth in the Salvadorian economy,
however, could affect the bank's overall performance, putting
pressure on the ratings. Market-share loss or deterioration of
the bank's financial stand should also pressure the ratings. The
ratings could go up if there is a strong development in economic
conditions, along with a sustainable improvement in asset
quality (including restructured loans and repossessed assets)
and profitability, and if capital ratios are higher than those
of its closest peers.

Primary Credit Analyst: Leonardo Bravo, Mexico City
(52)55-5081-4406; leonardo_bravo@standardandpoors.com

Secondary Credit Analyst: Francisco Suarez, Mexico City
(52) 55-5081-4474; francisco_suarez@standardandpoors.com



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

DYOLL: Supreme Court Formally Appoints Joint Liquidators
--------------------------------------------------------
The Jamaican Supreme Court has officially named Ken Krys of RSM
Cayman Islands and John Lee of Price-WaterhouseCoopers in
Jamaica as the Joint Official Liquidators of Dyoll Insurance
Company Ltd, according to Cayman Net News Online.

The appointment resolves the legal contest between the Cayman
and the Jamaican courts whether Dyoll policyholders would have
representation in this country.

Dyoll is a Jamaican company, but 65% of the 8000 policyholders
are Cayman residents.

Mr. Krys said he will be seeking a second liquidation
appointment by the Cayman courts in order to make the process of
winding up the Company efficient.

"I estimate the first distribution to creditors will be within
the next couple months," said Mr. Krys adding, "The initial
estimate of distribution is still what the Trustee of the Bank
estimated to be around 30 to 35 cents to the dollar."

The first distribution would most likely include policyholders
who have a completed claim on file, claims that have received
partial payment and refunds for premiums paid when the insurance
policies were terminated.

"We are encouraging creditors who have not submitted their proof
of debt to do so," said Mr Krys. "We have not heard from all
creditors, which include people who are due premium refunds.
They need to contact us as soon as possible to be considered in
the initial distribution."



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

BALLY TOTAL: Reaches Agreement With Holders to Consent to Waiver
----------------------------------------------------------------
Bally Total Fitness Holding Corporation (NYSE: BFT) announced
Thursday that it has reached agreement with holders of a
majority of its outstanding 9-7/8% Senior Subordinated Notes due
2007 (the "Subordinated Notes") to an extension through November
30, 2005 of the waiver of the financial reporting covenant
default under the indenture governing the notes. The agreement
to consent to the waiver of the financial reporting covenant
default under the Subordinated Note indenture is subject to the
Company receiving a similar waiver extension from the holders of
the Company's 10-1/2% Senior Notes due 2011 (the "Senior Notes")
and approval by the lenders under the Company's $275 million
senior secured credit facility as described below. The agreement
with the holders of the Subordinated Notes will automatically
terminate if such conditions are not satisfied by the close of
business on September 2, 2005, and, at the option of a
significant holder, after close of business on August 30, 2005
or prior thereto under certain other circumstances.

The agreement provides that holders of Subordinated Notes who
are "accredited investors" under applicable securities laws and
who consent to the extension will receive, at the holder's
election, either 9.2308 shares of the Company's common stock,
which will not be registered under federal or state securities
laws, or $20.00 in cash for each $1,000 principal amount of
Subordinated Notes as to which consent is delivered. Holders of
at least 43% of the Subordinated Notes have agreed to elect the
common stock consideration. Consenting holders who are not
accredited investors will receive $20.00 for each $1,000
principal amount of Notes. In order to permit all holders of
Subordinated Notes to receive the consideration payable under
the agreement, Bally will commence promptly a new consent
solicitation offering such consideration to the holders of
Subordinated Notes that are not party to Thursday's agreement.

As previously disclosed, Bally has received consents from
holders of approximately 96.03% of its outstanding Senior Notes
to a waiver extension through October 31, 2005. The Company has
amended its solicitation to request a waiver through November
30, 2005 and pay to Senior Noteholders a one-time consent fee of
$15.00 in cash per $1,000 principal amount of Senior Notes as to
which consent is delivered. The consent solicitation to holders
of Senior Notes has been extended and will expire at 5:00 p.m.,
New York City time, on August 30, 2005. Except as set forth
herein, the terms of the consent solicitation remain the same as
set forth in the Consent Solicitation Statement previously
distributed to the Senior Noteholders.

The record date for determining Senior Noteholders eligible to
submit consents will remain July 12, 2005. Senior Noteholders
who have previously submitted Letters of Consent are not
required to take any further action in order to receive payment
of the Consent Fee. Senior Noteholders who have not yet
consented are asked to submit the previously distributed Letters
of Consent in order to consent and receive any consent fees that
may be paid by the Company. Holders of Subordinated Notes
shortly will receive solicitation materials (including a new
Letter of Consent) that will need to be submitted in order to
elect cash or shares of common stock and receive the Consent
Fee.

Bally has also requested an amendment to its senior secured
credit facility to permit payment of the consent fees to the
holders of the Senior Notes and Subordinated Notes. The proposed
amendment, which is supported by JP Morgan Chase as Agent for
the lenders, would, among other things, permit certain expenses
to be added back to the Company's EBITDA for purposes of
financial covenant calculations, exclude certain consent fees
from interest expense in calculating the EBITDA to interest
expense ratio and reduce the required ratio from 1.70x to 1.65x
for the period ending March 31, 2006. Bally and JP Morgan Chase
have requested that lender consents to the proposed amendment be
delivered by August 30, 2005.

As previously announced, Bally's existing waiver of the
financial reporting covenant defaults expired on July 31, 2005,
and the Company received notices of default under the Senior
Note and Subordinated Note indentures on August 4 and 5, 2005,
respectively. As a result of these notices and a cross- default
provision in the Company's credit agreement, unless the
financial reporting covenant defaults contained in the
indentures are waived by August 31, 2005, over $700 million of
Bally's debt obligation under the credit agreement and
indentures could become immediately due and payable.
Notwithstanding the agreement announced Thursday, consent of
holders of the Senior Notes to a waiver extension and approval
by lenders under the Company's credit agreement are still
required to waive the defaults.

Bally has retained Deutsche Bank Securities Inc. to serve as its
solicitation agent and MacKenzie Partners, Inc. to serve as the
information agent and tabulation agent for the consent
solicitation. Questions concerning the terms of the consent
solicitation should be directed to Deutsche Bank Securities
Inc., 60 Wall Street, 2nd Floor, New York, New York 10005,
Attention: Christopher White. The solicitation agent may be
reached by telephone at (212) 250-6008. Requests for documents
may be directed to MacKenzie Partners, Inc., 105 Madison Avenue,
New York, New York 10016, Attention: Jeanne Carr or Simon Coope.
The information agent and tabulation agent may be reached by
telephone at (212) 929-5500 (call collect) or (800) 322-2885
(toll-free).

This announcement is not an offer to purchase or sell, a
solicitation of an offer to purchase or sell or a solicitation
of consents with respect to any securities. The solicitation is
being made solely pursuant to Bally's Consent Solicitation
Statement and the related Letter of Consent, as amended hereby.
Other than as expressly set forth herein, this announcement is
not a waiver of any of the terms and conditions set forth in
Bally's Consent Solicitation Statement and the related Letter of
Consent and is subject thereto in all respects. Notwithstanding
Bally's solicitation of waivers, no assurance can be given that
an event of default under the indentures will not occur in the
future.

Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers, with approximately four
million members and 440 facilities located in 29 states, Mexico,
Canada, Korea, China and the Caribbean under the Bally Total
Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle
Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R)
brands. With an estimated 150 million annual visits to its
clubs, Bally offers a unique platform for distribution of a wide
range of products and services targeted to active, fitness-
conscious adult consumers.

As of Sunday, 08-21-2005 23:59, the latest Comtex SmarTrend(SM)
Alert, an automated pattern recognition system, indicated a
DOWNTREND on 08-08-2005 for BFT at $3.14.

CONTACT: Bally Total Fitness Holding Corporation
         Matt Messinger
         Phone: 1-773-864-6850
                  or
         Carreen Winters
         Public Relations
         MWW GROUP
         Phone: 1-201-507-9500


GRUPO MEXICO: Officials Don't See Workers Pursuing a Strike
-----------------------------------------------------------
Mining giant Grupo Mexico doesn't expect La Cananea mine workers
to go ahead with their planned strike as talks between both
parties are going well, according to Juan Rebolledo, vice
president for international affairs for Grupo Mexico.

"So far the talks are going well, we are now reviewing different
proposals but the important thing is we are seeing a good
disposition in the talks," Rebolledo said.

Rebolledo's comments came after Cananea union representative
Rene Cordova announced that workers, despite seeing a positive
advance in talks, were still enforcing the Aug. 27 deadline to
keep up pressure on the Company.

But according to Rebolledo, "The threat to go on strike is part
of an automatic process which starts when the annual contract
revision comes up, but talks are advancing well, Cananea
continues to work well and we don't expect a strike to
materialize."

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Web site: http://www.gmexico.com


METALFORMING: Brings In DoveBid Valuation to Appraise Equipment
---------------------------------------------------------------
Metalforming Technologies, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware for
permission to employ DoveBid Valuation Services, Inc., as their
appraisers, nunc pro tunc to Aug. 19, 2005.

The Debtors chose DoveBid Valuation as their appraiser because
of the Firm's expertise, extensive knowledge and familiarity
with its business.

DoveBid Valuation will conduct an appraisal of the Debtors'
equipment located at their facilities in Milan, Saline and
Pinconning, Michigan, and in Mexico.  The Debtors say the
comprehensive appraisal of the Michigan and Mexico properties
will provide substantial benefit in connection with the proposed
sale of their assets.

As previously reported in the Troubled Company Reporter, the
Bankruptcy Court approved bidding procedures for the asset sale
that will be conducted through an open marketing and auction
process.  The Debtors intend to sell all of the assets of:

   -- their structural and tubular business;

   -- their Saline and Milan plants; and

   -- Metalform's 49% equity interests in the Lexington Joint
      Venture and the Engineered Systems business.

Zohar Tubular Acquisition, LLC, has offered to buy the assets
for $25 million and the assumption of certain postpetition
liabilities.  An auction will be conducted at 10:00 a.m. on
Sept. 26, 2005, in connection with the asset sale.  Competing
bids, if any, must exceed Zohar Tubular's offer by $750,000.

DoveBid will charge the Debtors $20,500, plus reimbursement of
actual out-of-pocket expenses, for the appraisal services.  The
Debtors will pay half of the appraisal fee prior to the
appraisal and the balance due upon completion.

To the best of the Debtors' knowledge, DoveBid Valuation does
not hold any interest adverse to their estates and is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.

Headquartered in Foster City, California, DoveBid, Inc. --
http://www.dovebid.com/-- is a global provider of capital asset
auction and valuation services to large corporations and
financial institutions.  DoveBid has over 65 years of auction
experience in the capital asset industry with more than 35
locations in 15 countries.  DoveBid offers an array of auction
services to meet its customers' specific needs, including live
Webcast auctions, on-site-only auctions, featured online
auctions and privately negotiated sales.  DoveBid Valuation
Services uses its database of transaction information to provide
valuations of capital assets for financial institutions and
large businesses.

Headquartered in Chicago, Illinois, Metalforming Technologies,
Inc., and its debtor-affiliates manufacture seating components,
stamped and welded powertrain components, closure systems,
airbag housings and charge air tubing assemblies for automobiles
and light trucks.  The Company and eight of its affiliates,
filed for chapter 11 protection on June 16, 2005 (Bankr. D. Del.
Case Nos. 05-11697 through 05-11705).  Joel A. Waite, Esq.,
Robert S. Brady, Esq., and Sean Matthew Beach, Esq., at Young
Conaway Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  As of May 1, 2005, the Debtors reported
$108 million in total assets and $111 million in total debts.
(Troubled Company Reporter, Friday, August 26, 2005, Vol. 9, No.
202)


METALFORMING: Hires Complete Appraisal as Real Estate Appraiser
---------------------------------------------------------------
Metalforming Technologies, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware for
permission to employ The Complete Appraisal Company as their
real estate appraiser, nunc pro tunc to Aug. 19, 2005.

The Debtors need Complete Appraisal to appraise their real
estate assets located in Milan, Saline and Burton, Michigan.
Complete Appraisal agrees to conduct the appraisal for a $12,000
engagement fee plus reimbursement of actual and necessary
expenses.  The Debtor will advance half of the engagement fee
prior to the Firm's inspection of the properties, with the
balance due upon delivery of the appraisal reports.

Complete Appraisal also agrees to provide testimony in support
of the appraisals at a Court Hearing for a $175 hourly fee.

The Debtors assure the Court that Complete Appraisal does not
hold any interest adverse to their estates and is a
"disinterested person" as that term is defined in section
101(14) of the Bankruptcy Code. (Troubled Company Reporter,
Friday, August 26, 2005, Vol. 9, No. 202)


VITRO: Unit Closes Trade Receivables Securitization
---------------------------------------------------
Vitro, S.A. de C.V. ("Vitro") (NYSE: VTO; BMV: VITROA) announced
that its flat glass division Vitro Plan, S.A. de C.V. ("Vitro
Plan") closed on August 22, 2005 the private issuance of US$21.5
million in Notes, placed through a trust, at an interest rate of
6.5 percent.

The trust was specifically formed for this securitization
transaction. Interest and principal on the debt from the Notes
are payable from receivables to be originated by four
subsidiaries of Vitro Plan. The Vitro Plan subsidiaries that
will be assigning receivables to the trust are: Distribuidora
Nacional de Vidrio, S.A. de C.V. ("Dinavisa"), Vitro Flotado
Cubiertas, S.A. de C.V. ("VFC"), Vitro Automotriz, S.A. de C.V.
("VAU"), and Vitro Vidrio y Cristal, S.A. de C.V. ("VVC").

This Mechanism has proven to be cost efficient financing for
Working Capital, as well as being innovative in the Mexican
Market.

Vitro Plan will use the proceeds to finance working capital and
debt refinancing. The transaction will not increase the
company's on-balance sheet debt.

The transaction received a rating of A.mx from Standard & Poor's
Mexico.

Vitro, through its subsidiary companies, is one of the world's
leading glass producers. Vitro is a major participant in three
principal businesses: flat glass, glass containers and
glassware.  Vitro serves multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses. 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. Vitro's subsidiaries
have facilities and distribution centers in eight countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide.

CONTACT: Vitro S.A. de C.V.
         Investor Relations
         Adrian Meouchi / Leticia Vargas
         Phone: (52) 81-8863-1350 / 1219
         E-mail: ameouchi@vitro.com
                 lvargasv@vitro.com

         U.S. agency
         Susan Borinelli / Michael Fehle
         Breakstone Group
         Phone: (646) 452-2336
         E-mail: sborinelli@breakstone-group.com
                 mfehle@breakstone-group.com

         Media Relations
         Albert Chico
         Phone: (52) 81-8863-1335



===============
P A R A G U A Y
===============

ACEPAR: Investigation Reveals Deficiencies in Emission System
-------------------------------------------------------------
Paraguay's national environment ministry Seam uncovered during
an investigation that the dust emitted by steelmaker Acepar has
caused asthma and allergy problems among residents living in the
vicinity of the plant. Moreover, some people complained of
burning in their eyes due to the emissions.

According to Business News Americas, Seam technicians have
discovered that Acepar's plant in Paraguay's Presidente Hayes
state is emitting unsafe levels of particles due to its
inadequate dust capturing system.

As such, Seam has called on Acepar to optimize the system and
adapt its cooling system to mitigate gas emissions.

Meanwhile, Paraguay's courts system is now analyzing Seam's
findings to ascertain that Acepar has really violated
environmental laws.



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

DORAL FINANCIAL: Receives Document Subpoena from U.S. Attorney
--------------------------------------------------------------
Doral Financial Corporation (NYSE: DRL) announced Thursday that
on August 24, 2005, the Company received a Grand Jury subpoena
from the U.S. Attorney's Office for the Southern District of New
York regarding the production of certain documents, including
financial statements and corporate, auditing and accounting
records prepared during the period from January 1, 2000 to date.
The Company will fully cooperate and assist the U.S. Attorney's
Office in this matter. The Company has publicly announced that
it is in the process of restating its consolidated financial
statements for the periods from January 1, 2000 through December
31, 2004.

The Company, a financial holding company, is the largest
residential mortgage lender in Puerto Rico, and the parent
company of Doral Bank, a Puerto Rico based commercial bank,
Doral Securities, a Puerto Rico based investment banking and
institutional brokerage firm, Doral Insurance Agency, Inc. and
Doral Bank FSB, a federal savings bank based in New York City.

CONTACT: Doral Financial Corporation
         Investor Relations
         Richard F. Bonini
         Phone: 212-329-3728
                 or
         Lucienne Gigante
         Phone: 212-329-3733


DORAL FINANCIAL: Names Antonio Faria as Doral Bank CEO
------------------------------------------------------
Doral Financial Corporation announced Thursday that Mr. Antonio
F. Faria has been named Chief Executive Officer (CEO) of Doral
Bank in Puerto Rico (Doral Bank), a subsidiary of Doral
Financial Corp.

Mr. Faria, a highly respected banking professional in the
Commonwealth and former Puerto Rico Financial Institutions
Commissioner, joined Doral Financial in June 6 as President of
Doral Money, Inc., a New York based subsidiary of Doral Bank
specializing in commercial and construction mortgage lending.

"Doral Bank has grown so steadily in recent years that the time
has come to deepen its management to facilitate future growth,
and there's no one better to lead the bank at this juncture than
Antonio Faria," said Zoila Levis, President and Chief Operating
Officer of Doral Financial. "We're honored and very excited to
rely on his expertise, keen insights and deep knowledge of the
Puerto Rico market."

Mr. Faria will be working closely with Jose Vigoreaux, President
of Doral Bank, to further expand the bank in Puerto Rico.

"We have significant plans for Doral Bank in Puerto Rico. There
are outstanding cross-selling opportunities with our market-
leading mortgage lending subsidiaries, and the opportunities in
various market niches are also great," said Levis.

Prior to joining Doral Financial, Mr. Faria served as the
financial point man of the Puerto Rico government, being the
first to occupy the state's three principal financial positions
in a four-year term: President of the Government Development
Bank, President of the Economic Development Bank and
Commissioner of Financial Institutions.

Mr. Faria previously had a long and highly regarded 25-year
career in various executive positions at the Puerto Rico unit of
Spanish-owned Banco Central Hispano, reaching the position of
Executive Vice President and Chief Operating Officer.


R&G FINANCIAL: Appoints Vicente Gregorio as Senior VP, CFO
----------------------------------------------------------
R&G Financial Corporation (NYSE: RGF) (the "Company"), the
financial holding company of R-G Premier Bank, R-G Crown Bank,
and R&G Mortgage Corp, reported that effective Wednesday, the
Board of Directors of the Company appointed Vicente Gregorio as
Senior Vice President and Chief Financial Officer of the
Company. In addition, the Company announced that Joseph R.
Sandoval, its former Executive Vice President and Chief
Financial Officer, was removed from such positions by the Board
of Directors of the Company and was placed on an indefinite
leave of absence. Mr. Sandoval will continue to receive his
salary and other benefits during this leave of absence.

Since 2002, Mr. Gregorio has served as the Chairman of VRC
Business Services, Inc., a collection company he founded. He
also has provided consulting and audit services as a sole CPA
practitioner since 2002. He was a Senior Associate at Spectrum
Finance Network, Inc., a consulting firm, between November 2004
and August 2005. From 1973 to 2002, Mr. Gregorio held various
positions at Arthur Andersen LLP. Between 1987 and 2002, Mr.
Gregorio was Managing Partner of the San Juan office of Arthur
Andersen LLP and also headed the office's Assurance and Business
Advisory Group. He was also member of Arthur Andersen LLP's
Florida/Caribbean Executive Committee from 1990 to 2002. While
at Arthur Andersen LLP, Mr. Gregorio provided auditing and
related services to a number of financial institutions. None of
the entities identified in this paragraph are affiliated with
the Company.

Mr. Gregorio is a former director of Santander Bancorp, a multi-
bank holding company, and its wholly owned subsidiary Banco
Santander Puerto Rico and a former director of privately held
Caribbean Petroleum Corp. and Affiliates, a gasoline
distributor. He is a director of privately held Packers
Provision Co. of Puerto Rico, Inc., a meat distribution company.
Mr. Gregorio is a Certified Public Accountant, and he received a
Bachelor of Business Administration with honors from the
University of Puerto Rico. He is a member of the Puerto Rico
Society of Certified Public Accountants and the American
Institute of Certified Public Accountants. Mr. Gregorio is 53
years old.

Under the terms of a letter agreement relating to his employment
as Senior Vice President and Chief Financial Officer of the
Company, Mr. Gregorio will receive an initial base salary of
$375,000 and a bonus of $425,000, which will be prorated for
2005. Upon completion of the Company's restatement process,
referenced below, Mr. Gregorio will also be granted 30,000 stock
options to purchase the Company's common stock pursuant to the
R&G Financial Corporation 2004 Stock Option Plan. He will also
be eligible to participate in the Company's Profit Sharing Plan
after he has been employed for six months and will receive
standard health and other benefits offered to employees of
comparable position.

The Company further indicated that on August 17, 2005, it
received a Notification of Additional Delinquency with respect
to the Company's four classes of outstanding preferred
securities from the Nasdaq Stock Market, which indicated that
the Company's failure to timely file its Quarterly Report on
Form 10-Q for the period ended June 30, 2005 (the "Second
Quarter 10-Q"), was a further violation of Nasdaq Marketplace
Rule 4310(c)(14). Due to the work associated with its ongoing
efforts to restate its audited consolidated financial statements
for the years ended December 31, 2004, 2003 and 2002, and the
related interim periods, the Company disclosed its inability to
timely file the Second Quarter 10-Q with the Securities and
Exchange Commission in a Form 12b-25 filed on August 10, 2005.

On May 19, 2005, the Company disclosed that it received a notice
from the Nasdaq Listing Qualifications Department, indicating
that because of the Company's failure to file its Quarterly
Report on Form 10-Q for the period ended March 31, 2005, the
Company's four classes of outstanding preferred securities would
be subject to delisting unless the Company requested a hearing.
At the Company's request, a hearing was held on June 30, 2005.
As a result of such hearing, the Company was advised by the
Nasdaq Listing Qualifications Panel that its four classes of
outstanding preferred securities would continue to be listed on
the Nasdaq National Market, subject to certain conditions,
including the filing of all delinquent Quarterly Reports on Form
10-Q on or before September 30, 2005. The Company has been
working diligently to complete the restatement process and
become current in its Securities and Exchange Commission
filings. However, given the time involved to complete the
restatement process, no assurance can be given as to when the
restatement process will be complete.

The Company, currently in its 33rd year of operations, is a
diversified financial holding company with operations in Puerto
Rico and the United States, providing banking, mortgage banking,
investments, consumer finance and insurance through its wholly-
owned subsidiaries R-G Premier Bank of Puerto Rico, a Puerto
Rico-chartered commercial bank; R-G Crown Bank, its Florida-
based savings bank; R&G Mortgage Corp., Puerto Rico's second
largest mortgage banker; Mortgage Store of Puerto Rico, Inc., a
subsidiary of R&G Mortgage; Continental Capital Corp., R-G
Crown's New York and North Carolina based mortgage banking
subsidiary; R-G Investments Corporation, a Puerto Rico broker-
dealer; and Home and Property Insurance Corporation, a Puerto
Rico insurance agency. As of December 31, 2004, R&G Financial
had previously reported consolidated assets of $10.2 billion and
consolidated stockholders' equity of $855.6 million.

CONTACT: R&G Financial Corporation
         Victor J. Galan, Chairman and CEO
         Tel: +1-787-766-8301



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

EDC: Plans to Increase Hydro Power Purchases from Edelca
--------------------------------------------------------
As part of an effort to reduce expensive fuel purchases,
electricity firm Electricidad de Caracas (EDC), will buy 10-20%
more hydroelectric power from state-owned generation giant
Edelca.

Business News Americas reports that Edelca's 10,000MW Guri
hydroelectric plant, after several years of severe drought, will
be operating at full capacity again due to maximum water levels.

"If there's more hydro power, we can save on fuel. Why burn
something that we don't really need to if there's an excess in
Guri?" EDC CEO Ivar Petterson said.

"When Guri was at its lowest [water level], our [thermoelectric]
turbines were working practically around the clock," he added.

Jaime Tupper, EDC network operations VP, revealed that the
Company is currently supplying its one million customers in the
Caracas Metropolitan Area with 9,540GWh annually. About 8,000GWh
is generated in two thermoelectric plants, Zuloaga in nearby
Vargas state and OAM on the outskirts of Caracas. The rest is
bought from Edelca through the national SIN power grid.

Electricity demand in Venezuela is expected to increase by 9%,
up from 7% last year. However, Tupper says that the increase in
demand for the Caracas Metropolitan Area served by EDC will be
more modest at 4-6%.

CONTACT: C.A. La Electricidad de Caracas
         Avenida Vollmer
         Caracas, Venezuela

         Scarlett Alvarez
         Directora: Relaciones con Inversionistas
         Tel: 0212 502-2950
         E-mail: edcinversionistas@aes.com



                            ***********


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

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