TCRLA_Public/050905.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, September 5, 2005, Vol. 6, Issue 175

                            Headlines

A R G E N T I N A

ADEBALL AMOBLAMIENTOS: Individual Reports Deadline Approaches
ASOCIACION MUTUAL: Concludes Reorganization
BASCOY S.A.: Court Grants Reorganization Plea
BELGRANO CARGAS: Govt. Likely to Take Over Management
COFAIN COOPERATIVA: Verification Deadline Fixed

EDENOR: Argentina S&P Maintains Default Ratings on Bonds
IEBA: $230M of Corporate Bonds Remain at Junk Level
KATIL S.A.: General Report Submission on September 6
NETESPACIO S.A.: Trustee to Present General Report in Court
PIONEER NATURAL: Commences Debt Offer, Consent Solicitation

PIONEER NATURAL: Redeems All Outstanding Senior Notes Due 2010
PIONEER NATURAL: Initiates $1B Share Repurchase Program
PIONEER NATURAL: Fitch Downgrades Ratings to 'BB+'
SOUTHERN WINDS: Claims Verification Ends September 6


B A R B A D O S

TECHNION BARBADOS: Workers Seek Govt. Help to Enforce Payments


B E R M U D A

PHARMA HOLDINGS: Liquidator Calls Creditors to Submit Claims


B R A Z I L

BANCO BRADESCO: Monthly Interest on Own Capital Payment Approved
BANESPA: To Sell $300M Perpetual Bonds Overseas
GERDAU: To Offer Guaranteed Perpetual Bonds
GERDAU: S&P Assigns 'BB-' Foreign, 'BB+' Local Currency Ratings
VARIG: Rio Labor Court Lifts Injunction on VarigLog Sale


C O L O M B I A

TELECOM: Telmex Willing to Wait to Sign Deal


C O S T A   R I C A

* COSTA RICA: Fitch Affirms 'BB' F-C Rating; Outlook Negative


E C U A D O R

PACIFICTEL/ANDINATEL/TELECSA: Privatization Process Begins


M E X I C O

UNITED RENTALS: Extends Expiration of Consent Solicitations


P E R U

BANCO DE CREDITO: S&P Raises Rating to 'BB'


V E N E Z U E L A

PDVSA: Has Enough Resources to Sustain Planned Investments
PDVSA: Fired Managers to Sue President for Defamation, Slander

     -  -  -  -  -  -  -  -

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

ADEBALL AMOBLAMIENTOS: Individual Reports Deadline Approaches
-------------------------------------------------------------
The deadline for the submission of the creditors' claims against
Adeball Amoblamientos S.A. will be tomorrow, Sept. 6, 2005. The
claims underwent verification phase that ended on Aug. 5, 2005.
The submission of the general report will follow on Oct. 5,
2005.

Court No. 17 of Buenos Aires' civil and commercial tribunal
declared the Company "Quiebra" and appointed city accountant
Horacio Fernando Crespo as trustee.

CONTACT: Adeball Amoblamientos S.A.
         Condarco 5164
         Buenos Aires

         Mr. Horacio Fernando Crespo, Trustee
         Maipu 464
         Buenos Aires


ASOCIACION MUTUAL: Concludes Reorganization
-------------------------------------------
The reorganization of Asociacion Mutual Entre Socios y
Adherentes del Club Atletico Deportivo Sarmiento has ended. Data
revealed by Infobae on its Web site indicated that the process
was concluded after Canada de Gomez's civil and commercial Court
No. 6 homologated the debt agreement signed between the Company
and its creditors.

CONTACT: Asociacion Mutual Entre Socios y
         Adherentes del Club Atletico Deportivo Sarmiento
         Canada de Gomez (Santa Fe)


BASCOY S.A.: Court Grants Reorganization Plea
---------------------------------------------
Bascoy S.A., a company operating in Buenos Aires, begins
reorganization proceedings after the city's civil and commercial
Court No. 19, with assistance from Clerk No. 37, granted its
petition for "concurso preventivo".

During the reorganization, the Company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Horacio Jose Eugenio
Caliri, the court-appointed trustee.

Creditors with claims against Bascoy S.A. must present proofs of
the Company's indebtedness to Mr. Caliri before Nov. 28, 2005.
These claims will constitute the individual reports to be
submitted in court on Feb. 9, 2006. The court also requires the
trustee to present an audit of the Company's accounting and
business records through a general report due on March 23, 2006.

An informative assembly is set for Aug. 25, 2006.

CONTACT: Bascoy S.A.
         Colombres 779
         Buenos Aires

         Mr. Horacio Jose Eugenio Caliri, Trustee
         Lavalle 1206
         Buenos Aires


BELGRANO CARGAS: Govt. Likely to Take Over Management
-----------------------------------------------------
The Argentine government may end up taking over the operations
of rail company Belgrano Cargas on a permanent basis, Business
News Americas suggests.

Planning minister Julio de Vido said the government really wants
to put Belgrano Cargas under private control. However, offers
made by various private sector groups to run the rail concession
fell short of the requirements.

The rail lines between capital Buenos Aires and south of Bolivia
were granted in a concession to the rail union, Union
Ferroviario, in 1999 after two failed privatization attempts.

Under the contract, the state granted a ARS50-million (US$50
million at that time) annual subsidy for five years to improve
the service. But the money was never paid and the firm fell into
debt.

The current government decided to cancel the contract of
Belgrano Cargas, calling a bidding process to find a new
concessionaire earlier this year, but the proposals made did not
fulfill the requisites stipulated.

"We want to find a private operator for this railroad, which is
so important in the north of the country," de Vido said.


COFAIN COOPERATIVA: Verification Deadline Fixed
-----------------------------------------------
The verification of creditors' claims for the Cofain Cooperativa
Limitada insolvency case is set to end on Sept. 30, 2005, states
Infobae. Mr. Victorio Manuel Duarte, the court-appointed trustee
tasked with examining the claims, will submit the validation
results as individual reports on Oct. 14, 2005. He will also
present a general report in court on Feb. 6, 2006.

An informative assembly is yet to be scheduled.

Court No. 1 of Salta's civil and commercial tribunal handles the
Company's reorganization case.

CONTACT: Cofain Cooperativa Limitada
         Avda. Independencia 910
         Ciudad de Salta (Salta)

         Mr. Victorio Manuel Duarte, Trustee
         Balcarce 472
         Ciudad de Salta (Salta)


EDENOR: Argentina S&P Maintains Default Ratings on Bonds
--------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains the 'raD' rating on US$600 million worth of corporate
bonds issued by Edenor S.A. The rating was determined from the
Company's finances as of June 30, 2005.

Describing the bonds as "Programa Global de Obligaciones
Negociables", Argentine securities regulator Comision Nacional
de Valores (CNV) said that the issue would mature on November 5,
2006.

The ratings agency said that an obligation is rated `raD' when
it is in payment default, or the obligor has filed for
bankruptcy. The rating is used when interest or principal
payments are not made on the date due, even if the applicable
grace period has expired, unless Standard & Poor's believes that
such payments will be made during such grace period.

Electricite de France (EdF) recently secured approval from
Argentina's antitrust commission, known in Spanish as the CNDC,
to sell a 65% stake in Edenor to investment fund Grupo
Dolphin for US$100 million.

Dolphin expects to take control of Edenor on September 10-15.
Its 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 will maintain a 25% share in Edenor. The remaining 10% of
Edenor is controlled by workers through an employee ownership
program.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          e-mail: to ofitel@edenor.com.ar
          Web Site: http://www.edenor.com.ar


IEBA: $230M of Corporate Bonds Remain at Junk Level
---------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains an `raD' on a total of US$230 million of corporate
bonds issued by Inversora Electrica de Buenos Aires S.A. (IEBA)

According to the CNV, the rating applies to US$130 million of
bonds described as" Obligaciones Negociables Simples no
convertibles en acciones", which matured on Sept. 16, 2004.

The rating also affects US$100 million of " Obligaciones
Negociables Simples no convertibles en acciones" that expired on
Sep. 16, 2002.

The rating action is based on IEBA's financial status as of June
30, 2005.


KATIL S.A.: General Report Submission on September 6
----------------------------------------------------
The general report on the liquidation of Katil S.A. will be
submitted Sept. 6, 2005, following the submission of the
individual claims of creditors on July 12, 2005.

Court No. 9 of Buenos Aires' civil and commercial tribunal
declared the Company bankrupt after it defaulted on its debt
obligations. Ricardo Bataller was appointed as the trustee for
the Company's liquidation. The city's Clerk No. 18 assists the
court with the proceedings.

CONTACT: Katil S.A.
         Adolfo Alsina 1123
         Buenos Aires

         Mr. Ricardo Bataller, Trustee
         Junin 684
         Buenos Aires


NETESPACIO S.A.: Trustee to Present General Report in Court
-----------------------------------------------------------
Mr. Leon Sergio Fuks, the court-appointed trustee for the
Netespacio S.A. bankruptcy case, will present the general report
for the court's approval tomorrow, Sept. 6, 2005.

Mr. Fuks verified creditors' proofs of claim until May 27, 2005.
The verified claims served as basis for the individual reports
to be submitted in court on July 11, 2005.

Court No. 21 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Netespacio S.A. after the company
defaulted on its debt obligations.

The city's Clerk No. 41 assists the court on this case.

CONTACT: Netespacio S.A.
         Marcelo T de Alvear 777
         Buenos Aires

         Mr. Leon Sergio Fuks, Trustee
         Bouchard 644
         Buenos Aires


PIONEER NATURAL: Commences Debt Offer, Consent Solicitation
-----------------------------------------------------------
Pioneer Natural Resources Company (NYSE:PXD) announced Thursday
that it has commenced an offer to purchase for cash (the "Tender
Offer") any and all of its outstanding 5.875% Senior Notes due
2012 (CUSIP No. 299900 AD 2)(the "Notes"). In connection with
the Tender Offer, Pioneer is soliciting consents to proposed
amendments to the indenture governing the Notes. Pioneer is
offering a consent payment of $30 per $1,000 principal amount of
Notes to holders who validly tender their Notes and give their
consent to the proposed amendments before 5:00 p.m., New York
City time, on Thursday, September 15, 2005 (the "Consent Date").
The Tender Offer expires at 12:00 midnight, New York City time,
on Thursday, September 29, 2005 (the "Expiration Date").

Pioneer is offering to purchase any and all of the approximately
$194,500,000 aggregate principal amount of Notes currently
outstanding. The tender price for the Notes is based on a fixed-
spread pricing formula described below. Pioneer will also pay
accrued and unpaid interest on the Notes accepted in the Tender
Offer to, but not including, the applicable settlement date.

In connection with the Tender Offer for Notes, Pioneer is
soliciting consents to proposed amendments to the indenture
governing the Notes. The proposed amendments will permanently
remove substantially all of the operating restrictions contained
in the indenture governing the Notes. Holders tendering their
Notes will be deemed to have delivered a consent to the proposed
amendments.

On September 15, 2005, the Company will pay the semi annual
interest payment on the Notes to holders of record of the Notes
on September 1, 2005.

The Tender Price for Notes Tendered

The tender price for each $1,000 principal amount of Notes
validly tendered and accepted for payment pursuant to the tender
offer will be calculated as of 2:00 p.m., New York City time, on
the second business day before the Consent Date and will be an
amount equal to (i) the present value on the early settlement
date of $1,029.38 per $1,000 principal amount of Notes (the
redemption price payable for Notes on March 15, 2008, which is
the earliest redemption date) and all scheduled interest
payments on the Notes from the early settlement date up to and
including the earliest redemption date, discounted on the basis
of a yield to the earliest redemption date equal to the sum of
(a) the bid-side yield on the applicable reference U.S. Treasury
Security listed in the table below, as calculated by the dealer
manager, in accordance with standard market practice, plus (b)
the applicable fixed spread listed in the table below, minus
(ii) accrued and unpaid interest to, but not including, the
early settlement date, minus (iii) the consent payment, being
rounded to the nearest cent per $1,000 principal amount of the
Notes.

                                               Fixed Spread
                         Reference              (in basis
   Series             U.S. Treasury Security    points)
  ----------------   -----------------------   -----------
  5.875% Senior        3.375% U.S. Treasury
    Notes due 2012      Notes due                  +50
                        February 15, 2008

The Consent Payment for Notes Tendered Early

To encourage holders to tender early, the Company is offering a
consent payment of $30 per $1,000 principal amount of Notes for
Notes that are validly tendered and for which consents are
delivered on or before the Consent Date. The consent payment
will be paid in cash on the early settlement date with respect
to those Notes.

The Total Early Payment for Notes Tendered Early

The total early payment consists of the tender price, plus the
consent payment, plus accrued and unpaid interest to, but not
including, the early settlement date. Holders of Notes that
validly tender (and do not validly withdraw) Notes and deliver
consents on or before the Consent Date will be entitled to the
total early payment. Holders of Notes that validly tender Notes
after the Consent Date but on or prior to the Expiration Date
will be entitled to receive only the tender price, plus accrued
and unpaid interest to, but not including, the final settlement
date.

The early settlement date is expected to be September 20, 2005
and the final settlement date is expected to be October 4, 2005.
Pioneer may extend the Consent Date, early settlement date,
Expiration Date and final settlement date in its sole
discretion.

The Tender Offer is subject to the satisfaction of certain
conditions, including the receipt of consents to the proposed
amendments from the holders of a majority of the aggregate
outstanding principal amount of Notes.

The terms of the Tender Offer are described in Pioneer's Offer
to Purchase and Consent Solicitation Statement dated September
1, 2005. Pioneer has engaged D.F. King & Co., Inc., to act as
information agent in connection with the Tender Offer. Requests
for copies of the Offer to Purchase and Consent Solicitation
Statement and questions regarding the Tender Offer may be
directed to D.F. King & Co., Inc. at 1(800)859-8509 (US toll-
free). Pioneer has engaged Goldman, Sachs & Co. to act as dealer
managers in connection with the Tender Offer and as solicitation
agent for the consent solicitation. Questions regarding the
Tender Offer and the consent solicitation may be directed to
Goldman, Sachs & Co. at 1(800)828-3182.

This announcement is not an offer to purchase, a solicitation of
an offer to purchase or a solicitation of consent with respect
to any securities. The Tender Offer will be made solely by the
Offer to Purchase and Consent Solicitation Statement dated
September 1, 2005.

Neither the Offer to Purchase and Consent Solicitation Statement
nor any related document has been filed with the Securities and
Exchange Commission, nor has any such document been filed with
or reviewed by any federal or state securities commission or
regulatory authority of any country. No authority has passed
upon the accuracy or adequacy of this Offer to Purchase and
Consent Solicitation Statement or any related documents, and it
is unlawful and may be a criminal offense to make any
representation to the contrary.

The Tender Offer is not being made to, nor will Pioneer accept
tenders of Notes from holders in any jurisdiction in which the
Tender Offer or the acceptance thereof would not be in
compliance with the securities or blue sky laws of such
jurisdiction.

Pioneer is a large independent oil and gas exploration and
production company with operations in the United States,
Argentina, Canada and Africa. Pioneer's headquarters are in
Dallas, Texas.

CONTACT: Pioneer Natural Resources Company
         Dallas Investors: Frank Hopkins or Chris Paulsen
         Tel: 972-444-9001

         Media and Public Affairs: Susan Spratlen
         Tel: 972-444-9001

         URL: http://www.pioneernrc.com


PIONEER NATURAL: Redeems All Outstanding Senior Notes Due 2010
--------------------------------------------------------------
Pioneer Natural Resources Company (NYSE:PXD) announced Thursday
that it will redeem for cash all of its outstanding 9-5/8%
Senior Notes due 2010 (the "9-5/8 Notes") and 7.50% Senior Notes
due 2012 (the "7.50 Notes" and together with the 9-5/8 Notes,
the "Notes"). The redemption date of the Notes will be October
3, 2005. The redemption price for the 9-5/8 Notes will be 100%
of the principal amount thereof, plus (i) accrued and unpaid
interest, if any, to, but not including, the date of redemption
and (ii) a make-whole premium. The make whole premium will be
calculated by Credit Suisse First Boston on the third business
day preceding the redemption date and will equal the excess of:

    (1) the sum of the present values, calculated as of the date
        of redemption using a reference treasury yield plus 50
        basis points, of:

        (a) each interest payment that, but for such redemption,
            would have been payable on the note being redeemed
            on each interest payment date occurring after the
            date of redemption (excluding any accrued interest
            for the period prior to the date of redemption); and

        (b) the principal amount that, but for such redemption,
            would have been payable at the final maturity of the
            note being redeemed over

    (2) the principal amount of the note being redeemed.

The redemption price for the 7.50 Notes will be 100% of the
principal amount thereof, plus (i) accrued and unpaid interest,
if any, to, but not including, the date of redemption and (ii) a
make-whole premium. The make whole premium will be calculated by
Credit Suisse First Boston on the third business day preceding
the redemption date and will equal the excess of:

(1) the sum of the present values, calculated as of the date of
     redemption using a reference treasury yield plus 50 basis
     points, of:

     (a) each interest payment that, but for such redemption,
         would have been payable on the note being redeemed on
         each interest payment date occurring after the date of
         redemption (excluding any accrued interest for the
         period prior to the date of redemption); and

     (b) the principal amount that, but for such redemption,
         would have been payable at the final maturity of the
         note being redeemed over

(2) the principal amount of the note being redeemed.

The 9-5/8 Notes were originally issued on April 11, 2000 and, as
of August 30, 2005, there is approximately $12.6 million of
aggregate principal amount outstanding. The 7.50 Notes were
originally issued on April 30, 2002 and as of August 30, 2005,
there is approximately $16.2 million of aggregate principal
amount outstanding.

On and after the redemption date, the Notes will no longer be
deemed outstanding, interest will cease to accrue thereon, and
all rights of the holder of the Notes will cease, except for the
right to receive the redemption price, without interest thereon.

The notice of redemption will be mailed to registered holders of
the Notes on or about September 1, 2005. Notes are to be
surrendered to The Bank of New York, as trustee and paying
agent, in exchange for payment of the redemption price.
Questions relating to, and requests for additional copies of,
the notice of redemption should be directed to The Bank of New
York at 600 N. Pearl Street, Suite 420, Dallas, Texas 75201,
Attn: John Stohlmann, 214-880-8238.


PIONEER NATURAL: Initiates $1B Share Repurchase Program
-------------------------------------------------------
Pioneer Natural Resources Company (NYSE: PXD) announced Thursday
that its board of directors has approved a series of strategic
initiatives to enhance shareholder value and returns.

  -- Initiating $1 billion share repurchase program

  -- Pursuing divestment of properties in the deepwater Gulf of
     Mexico and Tierra del Fuego in southern Argentina

  -- Implementing plan to exit exploration in deepwater Gulf of
     Mexico

  -- Reducing exploration budget to 15% - 20% of total capital
     from 30%

  -- Reallocating capital to North America onshore development
     and extension drilling

  -- Hedging eligible oil and gas production for 2006 and 2007
     using costless collars

  -- Increasing dividend on common shares by 20% to $0.12 per
     share

"The current commodity pricing environment offers a unique
opportunity to deliver near-term value to our shareholders by
repurchasing shares at attractive prices and increasing the
dividend," said Scott Sheffield, Pioneer's Chairman and CEO. "We
also reduce our risk profile with an increased focus on onshore
North America and the planned divestiture of short-lived and
non-strategic assets. At the same time, by hedging our eligible
oil and gas production using costless collars for 2006 and 2007,
we maintain our financial flexibility."

Share Repurchase Program

The new $1 billion share repurchase authorization represents
approximately 15% of Pioneer's total equity market value as of
August 31, 2005 and will be funded by the Company's credit
facility and asset sale proceeds. Pioneer will immediately
commence a program to purchase up to $650 million of shares
through open market transactions by the end of the year. Upon
completion of this phase of the repurchase program but before
considering asset divestitures, the Company expects that debt-
to-book capitalization would be less than 50% at the end of 2005
and would drop below 35% by the end of 2006.

The Company intends to adopt a repurchase plan, which will
permit it to purchase shares during the period from October 3,
2005 until two trading days following its third quarter 2005
earnings announcement, a period during which it ordinarily would
not be in the market because of a self-imposed trading blackout.

The Company also plans to repurchase approximately $223 million
of its outstanding bonds which are subject to high-yield
covenants. Pioneer expects to initiate up to an additional $350
million of share repurchases upon completion of the bond
repurchases and certain asset divestitures.

In August, the Company completed a $300 million share repurchase
program, which was authorized by the board of directors in
January 2005. Pursuant to that repurchase program and a prior
program, Pioneer has repurchased 9 million shares or
approximately 6% of shares outstanding since October 2004.

Pioneer has essentially completed its hedging program, and a
table outlining the Company's current hedge position is included
as a supplement to this release.

Asset Divestitures

High commodity prices and an active asset market have prompted
Pioneer to pursue the potential divestiture of its properties in
the deepwater Gulf of Mexico and southern Argentina.

Since entering the deepwater Gulf of Mexico in 1998, Pioneer has
had significant success targeting mid-sized prospects supported
by direct hydrocarbon indicators interpreted on 3-D seismic. To
date, the Company has drilled 33 successful exploration and
development wells, has working interests in three producing
deepwater projects, owns interests in several discoveries that
are being considered for commercialization and has interests in
90 deepwater blocks with attractive but higher-risk exploration
opportunities.

Pioneer has also expanded and balanced its exploration portfolio
in onshore North America, Alaska and Africa and believes these
opportunities are now better aligned with the Company's current
exploration objectives. As a result, Pioneer plans to pursue the
divestment of its deepwater Gulf of Mexico properties to reduce
the exploration risk and production volatility that have been
associated with these properties.

Pioneer will also seek to sell its non-operated position in
Tierra del Fuego, southern Argentina and has received attractive
expressions of interest from several potential purchasers.

"Divesting these assets, if successful, would concentrate our
portfolio and reestablish a more predictable foundation capable
of more consistent, sustainable production growth while
enhancing our net asset value," stated Tim Dove, Pioneer's
President and COO.

"Onshore North America, we are aggressively developing our
multi-year inventory of low-risk opportunities. We are
significantly expanding our development drilling programs in our
Spraberry and South Texas fields in the U.S. and the Chinchaga
and Horseshoe Canyon fields in Canada, and coming into this
year, expanded our Raton domestic drilling program," added Dove.

"We are also pursuing the commercialization of two discoveries
in Alaska and have an active exploration program focused on
prospects with nearer-term production impact planned for this
winter season," said Dove. "By the end of this year, we will
have initiated drilling activities in several of our Piceance
and Uinta fields in the Rockies and will be testing our
Mannville coal bed methane potential in Canada, and we will work
to continue to expand our unconventional and tight gas positions
in these areas and the onshore Gulf Coast."

Pioneer has initiated the process for divesting these assets and
hiring advisors to assist in its efforts. The Company also
announced that it has completed the previously announced
divestiture of two of its inland bay properties for total
proceeds of $77 million, before normal closing adjustments,
bringing year-to-date sales proceeds to approximately $300
million.

Increased Dividend

Pioneer's board of directors declared a semiannual cash dividend
on Pioneer's outstanding common stock of $0.12 per share, an
increase of 20%. The dividend is payable October 14, 2005 to
stockholders of record at the close of business on September 30,
2005.

Open Commodity Hedge Positions as of August 31, 2005:
http://bankrupt.com/misc/Open_Commodity_Hedge_Positions.txt



PIONEER NATURAL: Fitch Downgrades Ratings to 'BB+'
--------------------------------------------------
Fitch Ratings has downgraded Pioneer Natural Resources'
(Pioneer) senior unsecured debt rating to 'BB+' from 'BBB-'
following the announcement that it will repurchase $1 billion in
stock, and intends to sell its deepwater Gulf of Mexico assets
as well as some of its assets in Argentina. The rating action
affects approximately $1.5 billion in Pioneer debt. The Rating
Outlook for Pioneer is Stable.

This morning Pioneer announced a number of strategic initiatives
to enhance shareholder returns. The first was a $1 billion share
repurchase plan that the company will implement immediately,
which will be funded initially with the company's credit
facility. Pioneer will purchase up to $650 million of its shares
by the end of this year. With the second initiative, the company
intends to sell its properties in the deepwater Gulf of Mexico
(GOM) and in the Tierra del Fuego part of Argentina. Completion
of these asset sales is expected to take place by the end of
this year or early next year. Proceeds from the transactions are
expected to be used to repay the balances on the company's
credit facility and to repurchase another $350 million of
Pioneer's common equity. Other initiatives include the company's
exploration exit from the deepwater GOM, hedging eligible oil
and gas production for 2006 and 2007, and increasing the
company's common dividend by 20%.

The downgrade of Pioneer's senior unsecured ratings reflects
Fitch's concern about additional shareholder-friendly actions
that would detrimentally affect bondholders. Pioneer's share
price performance has significantly lagged that of its peers
over the last few years and Fitch sees the potential for
additional shareholder pressure going forward. Depending on
expected sale proceeds from the planned asset divestures,
Pioneer's debt/boe (barrels of oil equivalent) and debt/PDP
(proved developed producing) metrics likely will not look
significantly leveraged. However, the company is selling off
approximately 25% of its current production in an effort to
repurchase shares. Additionally, Fitch notes that Pioneer
earlier this year repurchased $300 million in shares. Debt
reduction, on the other hand, has only been approximately $100
million from the end of 2004; Fitch counts Pioneer's Volumetric
Production Payments (VPPs) as debt. The current level of debt
remains relatively unchanged since the Evergreen Resources
acquisition last year, at which time Pioneer's Outlook was
revised to Negative. The downgrade also reflects Fitch's
concerns about maintaining production levels post divestures as
well as the company's long-term ability to replace reserves at
economic costs.

The Stable Outlook reflects Pioneer's strong reserve position
and expected near- and intermediate-term robust cash flow. The
company should have slightly over 900 million proven boe post
divestures.

Pioneer is a large independent oil & gas exploration and
production company with operations in the U.S., Argentina,
Canada, and Africa. Its headquarters are in Dallas, TX.




SOUTHERN WINDS: Claims Verification Ends September 6
----------------------------------------------------
Accounting firm Estudio Aguilar, Pinedo, Rascado Fernandez will
stop accepting claims for verification tomorrow, Sep. 6, 2005.
After the verification period, the trustee will submit the
individual and general reports in court. Dates for submission of
these reports are yet to be disclosed.

Court No. 15 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Southern Winds
S.A.

The informative assembly will be held on May 29, 2006. Creditors
will vote to ratify the completed settlement plan during the
said assembly.

The Company reported assets totaling US$109,743,220 and debts of
US$184,915,296 in its court filing.

The city's Clerk No. 30 assists the court on the case.

CONTACT: Southern Winds S.A.
         Suipacha 1111
         Buenos Aires

         Estudio Aguilar, Pinedo, Rascado Fernandez
         Trustee
         Hipolito Yrigoyen 900
         Buenos Aires



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

TECHNION BARBADOS: Workers Seek Govt. Help to Enforce Payments
--------------------------------------------------------------
Former employees of an offshore call center company, which
closed its doors in late July, are asking the government to
seize thousands of dollars in equipment still on plant at its
rental office at the Barbados Investment and Development
Corporation (BIDC), Harbour Industrial Park, the Barbados Nation
reports.

The call center in question, Technion Barbados Ltd, set up
business in Barbados four years ago. On July 29, the Company
informed employees that it was closing its doors that same day.

Since it announced the closure, the Company has not given any
severance payments, vacation pay or the one-month's pay in lieu
of notice, prompting employees to seek the government's
assistance.

"They have no intention of paying us. Government has to send a
strong message to these offshore companies that the same way
they were allowed to come in with all sorts of tax-free
concessions that they are duty-bound to honor and respect the
employment laws of the country when they are leaving. They have
two floors full of equipment and these should be seized so that
if they fail to pay us, then we will still be able to benefit
from the sale of this equipment," a spokesperson for the
employees said.

She said employees had consulted with the Labor Department and
the National Insurance Office but were not satisfied that their
grievances were being adequately addressed.

Besides the claims from employees, Technion also owes monies to
other local service providers as well as rental payments to
Barbados Investment Development Corporation (BIDC).

Technion's business manager Bob Hymson said they would deal with
each of their creditors on an individual basis. In relation to
the equipment, he said his company was negotiating with another
to take over the business.



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

PHARMA HOLDINGS: Liquidator Calls Creditors to Submit Claims
------------------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                              And

              IN THE MATTER OF Pharma Holdings Ltd.

NOTICE IS HEREBY GIVEN that the Creditors of Pharma Holdings
Ltd., which is being voluntarily wound up, are required, on or
before September 9, 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.

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



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

BANCO BRADESCO: Monthly Interest on Own Capital Payment Approved
----------------------------------------------------------------
The Board of Directors of Banco Bradesco S.A. approved in a
meeting held Thursday the proposal submitted by the Board of
Executive Officers to pay to the Company's stockholders, of
interest on own capital related to the month of September 2005,
in the amount of R$0.057000 per common stock and R$0.062700 per
preferred stock, benefiting the stockholders registered in the
Company's records on Thursday.

In a letter sent to the Securities and Exchange Commission,
Executive Vice President and Investor Relations Director Jose
Luiz Acar Pedro wrote:

The payment will be made on October 3, 2005, at the net amount
of R$0.048450 per common stock and R$0.053295 per preferred
stock, after deduction of Withholding Income Tax of fifteen
percent (15%), except for the legal entity stockholders that are
exempt from such taxation, which will receive for the declared
amount.

The respective Interests will be computed, net of Withholding
Income Tax, in the calculation of the mandatory dividends for
the year as provided in the Corporate By-Laws.

The Interests relating to the stocks under custody at CBLC -
Brazilian Company and Depository Corporation will be paid to
CBLC that will transfer to the stockholders through the
depository Brokers.

CONTACT: Banco Bradesco S.A.
         Investor Relations
         Jean Philippe Leroy
         Phone: 55 11 3684.9229

         Luiz Osorio Leao Filho
         Phone: 55 11 3684.9302

         URL: www.bradesco.com.br/ir


BANESPA: To Sell $300M Perpetual Bonds Overseas
-----------------------------------------------
Banco do Estado de Sao Paulo SA (Banespa), a unit of Spain's
Banco Santander Central Hispano, plans to sell US$300 million of
perpetual bonds on overseas markets.

According to Dow Jones Newswires, the bank will start a roadshow
in Singapore on Sept. 5, followed by Hong Kong and Switzerland,
and ending in London on Sept. 8. After completing the roadshow,
the bank will price the bonds, which have a Ba2 rating from
Moody's.

The perpetual bonds, which have no fixed maturity date, will not
be callable for the first five years. Merrill Lynch is
coordinating the bond sale.


GERDAU: To Offer Guaranteed Perpetual Bonds
-------------------------------------------
Gerdau S.A. ("Gerdau") announced Wednesday that it intends to
offer its Guaranteed Perpetual Bonds by means of a private
placement to qualified institutional buyers under Rule 144A, and
in offshore transactions pursuant to Regulation S, under the
Securities Act of 1933, as amended (the "Securities Act"). The
bonds will be guaranteed by four of Gerdau's Brazilian
subsidiaries: Gerdau Acominas S.A., Gerdau Acos Longos S.A.,
Gerdau Acos Especiais S.A. and Gerdau Comercial de Aos S.A. The
aggregate principal amount of the bonds is anticipated to be
US$250,000,000. Net proceeds of the offering will be used for
general corporate purposes of Gerdau and its subsidiaries.

The bonds and the guarantees of the bonds have not been and will
not be registered under the Securities Act and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.


GERDAU: S&P Assigns 'BB-' Foreign, 'BB+' Local Currency Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' foreign
currency and 'BB+' local currency corporate credit ratings to
Brazil-based steelmaker Gerdau S.A. (Gerdau). The outlook is
stable.

"The ratings reflect Gerdau's exposure to the volatile and
cyclical commodity long steel industry, an acquisitive growth
strategy that may cause some peaks of financial leverage in the
future, and a heavy capital budget in the next three years aimed
at both brownfield and greenfield capacity expansions," said
Standard & Poor's credit analyst Reginaldo Takara.

"These negatives are partly mitigated by Gerdau's adequate
geographic diversification through the Americas, an improving
financial profile and the increasing profitability of its North
American operation, and the expectation that the company will
follow a prudent acquisition policy in the long term that should
not jeopardize capital structure improvements accomplished in
the past couple of years," Mr. Takara said.

The 'BB+' local currency rating is one-notch higher than that of
the 'BB' local currency sovereign rating on the Federative
Republic of Brazil, Gerdau's home country.

Gerdau is the largest long steel producer in Brazil and the
second-largest mini-mill steel maker in North America. The
company controls operations in Chile, Uruguay, and Argentina.
Net sales, EBITDA, and total debt amounted to $7.2 billion, $1.9
billion, and $2.5 billion (adjusted for operating leases and
pension liabilities in North America), respectively, in the past
12 months ended June 2005.

The stable outlook reflects our expectations of prudent debt
management and acquisition policy in the future. Gerdau's credit
measures are substantially strong today as a result of the
strong performance of the steel industry worldwide, but we see
fundamental improvement in both Gerdau's business and financial
profiles that should be preserved under a less favorable
environment. Weaker market conditions should cut part of the
comfort cushion reported in June 2005, but should still be
consistent with the rating category.

Aggressive M&A activity or expansion of Gerdau's current capital
expenditures plans could put downward pressure on the ratings or
trigger a lowering of the ratings or an outlook revision to
negative. While upside potential is somewhat limited in the near
term given the company's growth strategy, a positive ratings
action or outlook revision could be predicated on larger
synergetic gains in North America, performance enhancements in
Brazil, and evidence of commitment with target financial ratios
that are more conservative than the current ones.

Primary Credit Analyst: Reginaldo Takara, Sao Paulo
(55) 11-5501-8932; reginaldo_takara@standardandpoors.com

Secondary Credit Analyst: Jean-Pierre Gil, Melbourne
(61) 3-9631-2039; jp_gil@standardandpoors.com


VARIG: Rio Labor Court Lifts Injunction on VarigLog Sale
--------------------------------------------------------
Brazil's struggling flagship airline Viacao Aerea Riograndense
SA (Varig) overcame one of the hurdles to a plan to sell cargo
unit VarigLog to U.S. private equity fund Matlin Patterson.

Dow Jones Newswires reveals that the Rio de Janeiro labor court
lifted Thursday the injunction that barred the sale of Varig's
95% of shares in VarigLog to Matlin Patterson.

The ruling came after another court, which is handling Varig's
broader debt-restructuring process, said VarigLog, as well as
aircraft maintenance unit VEM, are included in the process.

The planned sale VarigLog still requires the authorization of
Rio de Janeiro's 8th corporate court, which is managing the debt
restructuring.

Meanwhile, on Wednesday, a court in New York handling claims by
international leasing firms against Varig gave the airline until
Sept. 20 to settle outstanding payments.

The court decisions give Varig more time to prepare its broader
plan in Brazil to restructure some BRL9 billion of liabilities,
without the threat of having its operations shut down.



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

TELECOM: Telmex Willing to Wait to Sign Deal
--------------------------------------------
Mexican fixed-line phone operator Telefonos de Mexico SA said it
is willing to wait to sign an initial agreement to buy a
majority stake in Colombia's largest state-owned carrier.

Telmex, controlled by billionaire Carlos Slim, and the Colombian
government were scheduled to sign the initial agreement on
Friday. But the Colombian government decided to suspend signing
the agreement because the nation's comptroller general wants to
analyze it.

"We're in favor of transparency, and if more time is needed,
we're willing to give it," a company spokeswoman said. "What we
want is an absolutely transparent operation."

On Aug. 26, Telmex and the Colombian government announced a
deal, in which Telmex would invest US$350 million and about US$3
billion more over the next 15 years to take a 50%-plus- one-
share stake in Colombia Telecomunicaciones (Telecom).

But Colombian Comptroller General Antonio Hernandez, who is in
charge of auditing government books, said on Aug. 30 that the
memorandum of understanding was overly favorable to Telmex. He
said his office planned to review the legality of the deal and
provide his analysis to Telecom over the next few days.

Telecom will wait for the comptroller's analysis before setting
a new date to sign the initial agreement, according to a letter
by the secretary general of the company's board, Fabian
Hernandez, posted on the government's Web site last week.



===================
C O S T A   R I C A
===================

* COSTA RICA: Fitch Affirms 'BB' F-C Rating; Outlook Negative
-------------------------------------------------------------
Fitch Ratings affirmed the Republic of Costa Rica's long-term
foreign and local currency ratings of 'BB' and 'BB+'
respectively. The Rating Outlook is Negative.

The ratings have remained on a Negative Outlook since 2003,
reflecting Fitch's continuing concerns that the government is
not taking sufficient measures to solidify public finances in
order to preserve macroeconomic stability over the medium term.
This, combined with the country's crawling peg exchange rate
regime, limited 'usable' international reserves as well as a
relatively weak banking sector have increased the vulnerability
of Costa Rica to external shocks. Finally, Costa Rica is one of
the few Central American countries that is delaying the passage
of the U.S.-Central American Free Trade Agreement (CAFTA) in its
Congress. In Fitch's opinion, the passage of a structural fiscal
reform, continued fiscal restraint and the passage of CAFTA in
the Costa Rican Congress could help in stabilizing sovereign
creditworthiness.

Fiscal performance has improved since 2002, due to higher tax
revenues and better control of expenses. Similarly, higher
growth and better fiscal performance have stabilized the debt
burden. In addition, the authorities passed a social security
reform last year, which would increase the life of the state
pension system. However, without a tax-enhancing fiscal reform,
it is unlikely that further fiscal consolidation can be pursued.
The reform under discussion is promising because it could raise
revenues by up to 2% of GDP, a part of which could be used by
the Treasury to recapitalize the central bank. This in turn,
would allow the central bank to implement a more flexible
monetary policy to reduce inflation. Despite its obvious
benefits, it is still unclear whether the comprehensive fiscal
reform that has been in discussion in Congress for more than two
years will be passed this year due to the impending presidential
and congressional elections in February 2004.

Another vulnerability of Costa Rica is its relatively low level
of external liquidity in the context of a crawling peg regime.
Furthermore, the exchange rate regime has introduced inertia in
inflationary expectations and has also led to widespread
dollarization of the financial sector. Fitch also believes that
the Costa Rican banking system is weaker than some of the other
'BB' credits due to high incidence of state ownership,
widespread dollarization, regulatory and supervisory
shortcomings and the presence of an off-shore banking system.
Thus, the system represents a contingent liability to the
sovereign. As such, it is important for the authorities to pass
the financial sector reform that allows better scrutiny and
supervision of the off-shore banking system.

Credit strengths include Costa Rica's stable political system as
well as good social indicators. Among the 'BB' rated sovereigns,
Costa Rica's per capita income is the highest and its democratic
institutions have performed relatively well during past economic
and political stresses. Additionally, Costa Rica's five year
average growth rate of over 4% is in line with the 'BB' median.
Costa Rica's political stability and the availability of well-
educated labor force have helped in attracting foreign direct
investment flows. FDI has been high in the electronics sector
(predominantly Intel), medical devices, software services and
business processing outsourcing.

The outlook for Costa Rica's balance of payments could improve
further if the country is able to pass the CAFTA soon.
Potentially higher capital inflows could increase foreign
exchange reserves. Passage of CAFTA could also buttress local
investor confidence and help improve productivity and overall
growth as telecom and insurance sectors are liberalized under
CAFTA provisions.

Fitch will continue to monitor the progress of fiscal reform in
Congress in the coming months. Its passage will go a long way
toward stabilizing sovereign creditworthiness. In addition,
Costa Rica's vulnerabilities could be reduced if the authorities
are able to maintain control over the fiscal deficit and pass
CAFTA in Congress.

CONTACT: Shelly Shetty +1-212-908-0324, New York
         Paul Rawkins +44-207-417-4239, London

MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York



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

PACIFICTEL/ANDINATEL/TELECSA: Privatization Process Begins
----------------------------------------------------------
The government has commenced the process of selecting a private
firm, which will administer three state-owned telephone
companies - Pacifictel, Andinatel and Telecsa - for a minimum of
five years.

According to reports, the government will formally invite bids
in the middle of the month and award the contract by the end of
the year.

The three state-run companies will be negotiated as a package to
make the offer more attractive. In most cases, international
investors are willing to consider an offer only if it carries
more than 1.5m customers.

The state expects to increase the companies' revenues and reduce
the levels of corruption and political interference.



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

UNITED RENTALS: Extends Expiration of Consent Solicitations
-----------------------------------------------------------
United Rentals, Inc. (NYSE: URI) announced Thursday that it has
extended the expiration time for its pending solicitations of
consents from holders of its outstanding bonds and QUIPs
securities. As extended, the consent solicitations are now
scheduled to expire at 5:00 p.m., New York City time, on
September 9, 2005.

About United Rentals

United Rentals, Inc. is the largest equipment rental company in
the world, with an integrated network of more than 730 rental
locations in 48 states, 10 Canadian provinces and Mexico. The
company's 13,200 employees serve construction and industrial
customers, utilities, municipalities, homeowners and others. The
company offers for rent over 600 different types of equipment
with a total original cost of $3.9 billion. United Rentals is a
member of the Standard & Poor's MidCap 400 Index and the Russell
2000 Index(R) and is headquartered in Greenwich, Conn.



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

BANCO DE CREDITO: S&P Raises Rating to 'BB'
-------------------------------------------
Standard & Poor's Ratings Services raised its counterparty
credit rating on Banco de Credito del Peru (BCP) to 'BB' from
'BB-'. The upgrade reflects the opinion that, given the
improvement in Peru's operating environment as well as the
bank's solid financial profile and foremost position in the
country's financial system, the ratings on BCP should be
equalized with the foreign currency ratings on the Republic of
Peru. Analogically, the outlook on BCP was changed to positive
from stable to follow the outlook on the Peruvian sovereign. The
short-term rating was affirmed at 'B'.

"The ratings on BCP benefit from the bank's leading market
position, with a superior franchise, strong management team, and
improved financial profile evidenced by strong capitalization,
high liquidity, and a now healthier asset quality," said
Standard & Poor's credit analyst Federico Rey-Marino. These
strengths are balanced by the challenge to reduce costs and
increase operating efficiencies to take full advantage of BCP's
unparalleled scale of operations in Peru.

BCP is the largest commercial bank and the leading supplier of
integrated financial services in Peru. The well-diversified bank
enjoys commanding market shares of 30% in loans and 32.6% in
deposits, and a leading presence in all segments of the Peruvian
banking system. BCP is engaged in retail banking, asset
management, private banking, and treasury and corporate banking
activities directly or through subsidiaries. BCP has Peruvian
new soles (PNS) 25.9 billion ($7.9 billion, at PNS3.26 to $1) in
assets as of June 30, 2005, with the largest branch network
nationwide.

The positive outlook follows the outlook on the Peruvian
sovereign ratings. It also reflects our belief that BCP's strong
business and financial profile will allow it to remain the
leading bank in Peru. Nevertheless, BCP's most significant
challenge is posed by controlling costs and gaining operating
efficiencies, in accordance with international standards.

PRIMARY CREDIT ANALYST:

         Carina Lopez, Buenos Aires
         (54) 11-4891-2118

         Federico Rey-Marino, Buenos Aires
         (54) 114-891-2130;
         E-mail: federico_rey-marino@standardandpoors.com



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

PDVSA: Has Enough Resources to Sustain Planned Investments
----------------------------------------------------------
Venezuela's former OPEC representative Heliodoro Quintero
defended Petroleos de Venezuela (PDVSA) from criticisms that the
state oil firm's new investment plan is overly ambitious,
reports Business News Americas.

PDVSA plans to invest US$56 billion through 2012, under which it
aims to boost oil production to 5.8 million barrels a day (Mb/d)
in 2012 from 3.3Mb/d at present and add about 1Mb/d in new
refining capacity.

"The government has enough resources available to do what it
wants to do," said Mr. Quintero, referring to record high oil
prices that have generated windfall oil revenue for PDVSA.

Venezuela had budgeted oil revenue at US$23 a barrel for the
year but is now getting US$55.24/b, which is climbing fast after
Hurricane Katrina in the Gulf of Mexico forced the interruption
of crude E&P operations.

Mr. Quintero warned, however, that operating agreements with
private oil firms in Venezuela have been reducing their average
production and investments are being scaled back.


PDVSA: Fired Managers to Sue President for Defamation, Slander
--------------------------------------------------------------
A group of mid-level managers dismissed earlier this year from
PDVSA plan to file a lawsuit against the state oil firm's
President and Energy and Oil Minister Rafael Ramirez for
defamation and slander, Business News Americas reports.

In January, Mr. Ramirez sacked 30 workers in Zulia State for
their alleged involvement in "corrupt" practices. The workers,
however, claimed they were dismissed without any charges pressed
against them.

Galoys Perez, one of the fired workers, said they have
challenged Mr. Ramirez to present proof of their corruption to
the attorney general's office and the courts but the minister
never answered. According to Perez, it was because the minister
doesn't have proof.

"We will not rest until justice is served, we will keep on
telling people what is going on and let the public complain,
because this is part of a plan to reduce PDVSA's production in
order to hand over [crude] deposits to foreign companies," Mr.
Perez said.

                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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