TCRLA_Public/050907.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

          Wednesday, September 7, 2005, Vol. 6, Issue 177



2000 GUADALUPE: Reorganization Finalized
AIRETTE S.A.C.I.I.F.: General Report Due September 8
CASAMEN S.A.: Informative Meeting Set to Present Proposal
CLUB TRAFICO'S: Trustee's Next Report Expected in Court
CRM: S&P Ups Rating on $150M of Bonds

ETINO: Individual Reports Due September 8
LEES S.A.C.I.A.I.F.: Court Grants Reorganization Plea
MIR S.A.: General Report Deadline Approaches
TELECOM ARGENTINA: Expects to Book ARS1.584B Gain From Debt Swap


AGUAS DEL ILLIMANI: Agrees to Audit Conditions


GERDAU: Moody's Assigns Ba1 Foreign Currency Rating to Bonds
NET SERVICOS: Prior Debenture Terms, Details Approved
PARMALAT BRASIL: Presents Reorganization Plan to Court
UNIBANCO: Strong Demand Bumps Up BRL2.4-Bln Debenture Issue


LE MANS DESARROLLO: SVS Initiates Annuity Marketing Efforts


EMCALI: Agrees to Pay for Reconstructing Utility Networks
TELECOM: Telefonica Continues to Explore Possible Bid


HONDUTEL: Privatization May Mean $50M-80M Loss to State


AOL LATIN AMERICA: Court Sets October 28 Claims Bar Date
AOL LATIN AMERICA: Seeks Court Approval for Lease Amendment
ASARCO: Meeting of Creditors Slated for September 14
SICARTSA: Talks with Villacero Flop, Labor Ministry Blamed
UNITED RENTALS: Moody's Junks Senior Sub. Debt, Preferred Shares


ANCAP: Budgets $4M for Pilot Alcohol Fuel Plant
ROYAL SHELL: Official Confirms Company Considering Exit


CANTV: Inks Two-Year Wage Accord With Workers
HEINZ PLANT: Monagas Governor Orders Plant Seizure

     - - - - - - - - - -


2000 GUADALUPE: Reorganization Finalized
The reorganization of Santa Fe-based 2000 Guadalupe Supermercado
S.R.L. has ended. Data revealed by Infobae on its Web site
indicated that the process was concluded after the city's civil
and commercial Court No. 1 homologated the debt agreement signed
between the Company and its creditors.

AIRETTE S.A.C.I.I.F.: General Report Due September 8
Mr. Jorge David Jalfin, the trustee selected by the court for
Airette S.A.C.I.I.F. y A. liquidation, will present the general
report tomorrow, Sep. 8, 2005.

The presentation of the said report followed the submission of
the individual claims of creditors on July 8, 2005. The claims
were verified until May 23, 2005.

Buenos Aires' civil and commercial Court No. 24 handles the
Company's case.

CONTACT: Mr. Jorge David Jalfin, Trustee
         Sarmiento 1452
         Buenos Aires

CASAMEN S.A.: Informative Meeting Set to Present Proposal
Casamen S.A., a company under reorganization, will present a
settlement plan to its creditors in an informative assembly
scheduled for March 16 next year, Infobae reports.

Buenos Aires' civil and commercial Court No. 5, with assistance
from Clerk No. 9, earlier issued a resolution opening the
Company's reorganization. This pronouncement authorized the
Company to begin drafting a settlement proposal with its
creditors in order to avoid liquidation. The reorganization
allows Casamen 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: Casamen S.A.
         Buenos Aires

CLUB TRAFICO'S: Trustee's Next Report Expected in Court
Mr. Federico D. Bonello, the trustee overseeing the
reorganization proceedings of Club Trafico's Old Boys, will
submit the general report tomorrow, Sep. 8, 2005. The report
will contain the Company's audited accounting and business
records as well as a summary of important events pertaining to
the reorganization.

On July 27, 2005, the validated individual claims of the
Company's creditors were presented in court for approval. The
court-appointed trustee stopped accepting claims on May 31,

An informative assembly, the final stage of reorganization where
the settlement proposal is presented to the Company's creditors
for approval, is scheduled on March 8 next year.

Club Trafico's Old Boys began reorganization following the
approval of its bankruptcy petition by Court No. 2 of
Pergamino's civil and commercial tribunal.

Dr. Bernardo Louise, clerk of court, assists the court on this

CONTACT: Club Trafico's Old Boys
         Calle Velez Sarsfield 368

         Mr. Federico D. Bonello, Trustee
         Av. J. A. Roca 814

CRM: S&P Ups Rating on $150M of Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
upgraded its rating on US$150 million of bonds issued by
Compania de Radiocomunicaciones Moviles S.A. CRM) from `raD' to
`raB,' according to data released by the CNV on its Web site.

The bonds, described as "Serie emitida bajo el Programa de Ons
por hasta U$S 350 millones, vencido el 9-02-03" and classified
under "Series and/or Class," will mature on May 31, 2008.

The upgrade was based on CRM's finances as of June 30, 2005.

S&P said that an obligation rated 'raB' denotes weak protection
parameters relative to other Argentine obligations. The obligor
currently has the capacity to meet its financial commitments on
the obligation. But adverse business, financial, or economic
conditions would likely impair capacity or willingness of the
obligor to meet its financial commitments on the obligations.

ETINO: Individual Reports Due September 8
The individual claims of the creditors of Etino S.R.L. will be
submitted tomorrow, Sep. 8, 2005. The claims were reviewed by
Mr. Fernando Miguel Altare, the court-appointed trustee, until
July 27, 2005. The submission of the general report will follow
on Oct. 20, 2005. Etino S.R.L. was declared bankrupt by Court
No. 14 of Buenos Aires' civil and commercial tribunal.

Clerk No. 28 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Mr. Fernando Miguel Altare, Trustee
         Piedras 153
         Buenos Aires

LEES S.A.C.I.A.I.F.: Court Grants Reorganization Plea
Lees S.A.C.I.A.I.F. successfully petitioned for reorganization
after Mar del Plata's civil and commercial Court No. 14 issued a
resolution opening the Company's insolvency proceedings. 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 Alfredo Casemayor will serve as trustee
during the course of the reorganization. The trustee will be
accepting creditors' proofs of claim for verification until Sep.
30, 2005.

After verifications, the trustee will prepare the individual
reports and present it in court on Nov. 11, 2005. Mr. Casemayor
will also present a general report for court review on Dec. 30,

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on April 25, 2006.

         9 de Julio 5602
         Mar del Plata

         Mr. Alfredo Casemayor, Trustee  
         25 de Mayo 2980
         Mar del Plata

MIR S.A.: General Report Deadline Approaches
The general report on the liquidation of Buenos Aires-based Mir
S.A. is due for filing tomorrow, Sep. 8, 2005. Court-appointed
trustee Norma Alicia Balmes will include in the report the
summary of the Company's financial status as well as the
relevant events pertaining to the bankruptcy.

On June 2, 2005, the claims of the Company's creditors were
authenticated. The validated claims were presented in court as
individual reports on July 28, 2005.

The Company began liquidating its assets following the
bankruptcy pronouncement issued by Court No. 12 of the city's
civil and commercial tribunal.

The bankruptcy process will end with the disposal of Company
assets in favor of its creditors.

CONTACT: Ms. Norma Alicia Balmes, Trustee
         Avda Roque Saenz Pena 1185
         Buenos Aires

TELECOM ARGENTINA: Expects to Book ARS1.584B Gain From Debt Swap
Telecom Argentina SA announced Friday that it will post a
ARS1.584-billion gain in the third quarter from its recently
completed US$2.63-billion debt restructuring, reports Dow Jones
Newswires. However, the fixed-line operator said the final
amount of its debt restructuring gain could change because
company management is "evaluating the discount rate to use for
calculating the net present value of the new debt."

On Wednesday, the Company issued US$1.8 billion in new bonds and
also made capital payments for all dates falling between October
2005 and October 2007. Telecom Argentina's debt restructuring
agreement commits it to make early debt payments if it has the
money to do so.

For Friday's estimate, the Company used a discount rate of 11%
for dollar-denominated debt, 10% for euro debt and 7% for yen

         Pedro Insussarry
         Phone: (54-11) 4968-3743

         Moira Colombo
         Phone: (54-11) 4968-3627

         Gaston Urbina
         Phone: (54-11) 4968-3628

         Morgan Stanley & Co. Incorporated
         Carlos Medina
         Phone: (1-212) 761-6520

         MBA Banco de Inversiones S.A.
         Diego Steverlynck
         Phone: (54-11) 4319-5865

Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Telecom Argentina S.A. (TECO) to 'B-'
from 'D' and its long-term Argentina national scale rating to
'raBBB-' from 'D' after the closing of the company's
restructuring process in an out-of-court agreement. The "Acuerdo
Preventivo Extrajudicial" (APE) was approved by 94.4% of
creditors and, in accordance with Argentine law, is also binding
for lenders voting against it. The outlook is stable.

At the same time, Standard & Poor's affirmed its 'B-' ratings on
the series issued under the restructuring (Series A notes with
final maturity in October 2014 for up to the equivalent of $877
million and Series B notes with final maturity in October 2011
for up to $999 million). The 'D' senior unsecured debt ratings
on the exchanged notes and 'D' short-term Argentina national
scale rating were withdrawn at the company's request.

In addition to the debt issuance, the APE involved the payment
of $565 million in principal and of $237 million in interest
(accrued between Jan. 1, 2004, and Aug. 31, 2005). In
conjunction with the exchange, TECO cancelled pending maturities
up to August 2005 and made principal prepayments on maturities
between October 2005 and October 2007 (for an aggregated amount
of $533 million). As a result of this, consolidated debt
declined to about $1.7 billion, from $3.4 billion in June 2005.

"The upgrade reflects TECO's improved financial profile
following the restructuring," said Standard & Poor's credit
analyst Ivana Recalde. "This is due to much lower debt levels;
longer debt terms; a manageable maturity schedule; and a lighter
financial burden--mainly as a result of the lower debt levels."

As a result of the prepayments, TECO will not face any
significant debt maturities before 2008--aside from a mandated
cash sweep in case of excess cash--which reduces short- and
medium-term refinancing risk.

The stable outlook reflects our expectation that the company's
good competitive position and the relatively stable economic
scenario will allow TECO to further reduce debt and to
consolidate financial improvements after the restructuring.

Rating upside is limited given the current business environment
in Argentina, especially with regard to regulatory risk. The
ratings could be pressured if tariff inflexibility persists
under a higher-than-expected inflationary and exchange rate
scenario, if government intervention increases, or financial
flexibility deteriorates significantly.

Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-


AGUAS DEL ILLIMANI: Agrees to Audit Conditions
Bolivian capital La Paz water concessionaire Aguas del Illimani
(AISA) will provide any necessary information to the government-
appointed auditors, Business News Americas reports, citing an
AISA spokesperson.

"The terms of the contract allow for an audit of this kind which
is a regulatory audit and will most likely cover the period 1997
to date," the spokesperson added.

Authorities have short-listed seven firms they hope will present
proposals to audit AISA. Sisab, which is responsible for
supervising the operation of the concession, expects to complete
the selection by the end of the month, a source from the
regulator said. Sisab will pay for the audit from its budget but
perhaps with some government contribution, the source added.


Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A took on
September 2, 2005 the applicable legal measures to ensure the
full payment of the City Government's debt. September 2, 2005,
it took the applicable legal measures to ensure the full payment
of the said debt and thus bring into force the full effect of
the legal instrument signed with the City Government.

On September 16, 2004, the Company published an Announcement to
the Market, informing the latter that it had entered into a
Payment Agreement (the "Agreement") with the Sao Paulo City
Government (the "City Government") as the result of a
renegotiation of the terms and conditions of a previous covenant
titled Instrumento de Consolidacao de Dividas, Encontro de
Contas e Outras Avencas [Debt Consolidation Agreement,
Settlement of Accounts and Other Contracts], signed with the
City Government on October 2, 2002.

The Agreement concerns the settlement of electricity supply and
service bills for the years 1996 through 2004, totaling
R$542,572,060.90 (five hundred and forty-two million, five
hundred and seventy-two thousand and sixty Reais and ninety
cents), of which R$10,000,000.00 (ten million Reais) were paid
by the City Government in June 2004.

The parties thereto agreed, among other things, that the overdue
bills related to the period from February 22, 1996 through
January 31, 2001, in the amount of R$303,938,500.64 (three
hundred and three million, nine hundred and thirty-eight
thousand and five hundred Reais and sixty-four cents), should be
settled in 12 annual installments, with the first maturing on
August 31, 2005, and without detriment to any other sums owed by
the City Government to the Company.

Considering that this commitment was not honored, the Company
hereby informs the market that, on September 2, 2005, it took
the applicable legal measures to ensure the full payment of the
said debt and thus bring into force the full effect of the legal
instrument signed with the City Government.

This being an assumed debt with specific sums, the chances of
success are high. Therefore, the Company continues to gauge the
potential impact of this case on its financial statements, even
though it does consider appropriate the current level of
provisions made for receivables from the City Government. In
terms of liquidity, the Company's ability to honor its financial
obligations remains intact despite the City Government's default
on this date.

The Company will keep the market informed of any supervening
events that may come to pass.

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

GERDAU: Moody's Assigns Ba1 Foreign Currency Rating to Bonds
Approximately USD 300 Million of Debt Securities Affected

Moody's Investors Service ("Moody's") assigned a Ba1 foreign
currency ("FC") rating to the proposed USD 300 million
guaranteed senior unsecured perpetual bonds to be issued by
Gerdau S.A. ("Gerdau"). The bonds will be jointly, severally and
unconditionally guaranteed on a senior unsecured basis by
Gerdau's operating subsidiaries: Gerdau Acominas S.A., Gerdau
Acos Longos S.A., Gerdau Acos Especiais S.A. and Gerdau
Comercial de Acos S.A. In addition, Moody's assigned a Ba2
global local currency ("GLC") corporate family rating to Gerdau.
The rating outlook is stable.

For the sole purpose of this report, the Brazilian operations of
Gerdau group, comprised by the operating company guarantors, are
herein referred to as "Gerdau Brazil".

The Ba1 FC rating for the perpetual bonds reflects the
creditworthiness of the Gerdau group and the Ba1 GLC corporate
family rating assigned to Gerdau Brazil, and additionally
incorporates the element of convertibility risk, or the
likelihood that the Brazilian government might declare a general
debt moratorium to counter a foreign currency crisis. The
foreign currency bond rating considers the probability of a
sovereign foreign currency default implied by the government's
B1 FC bond rating and the likelihood that, in the event of such
a default, the government would impose a general foreign
currency payments moratorium. Considered in the Ba1 FC bond
rating is the possibility that Gerdau Brazil, as a key long
steel producer in Brazil's markets, with a good position in the
export markets, might be exempt from a debt moratorium, if such
were to be imposed. Furthermore, the Ba1 FC bond rating also
incorporates the substantial revenues of the Gerdau group in
foreign currencies, primarily those generated by Gerdau
Ameristeel in North America. Finally, the assigned Ba1 FC bond
rating takes into account the relatively modest level of secured
debt of Gerdau Brazil.

The Ba1 GLC corporate family rating assigned to Gerdau Brazil is
based on the consolidated financial statements of Gerdau
Acominas S.A. prior to its July 2005 spin-off that resulted in
the transfer of a substantial part of its operating assets to
three new enities, namely Gerdau Acos Longos S.A., Gerdau Acos
Especiais S.A. and Gerdau Comercial de Acos S.A., while Gerdau
Acominas S.A. itself continues to own the Ouro Branco plant,
which represents some 40% of the group's production capacity in

The rating of Gerdau Brazil is supported by (1) its leading
market position in the Brazilian long-steel sector, (2)
operational diversity, (3) efficient production and distribution
operations, and (4) comfortable financial leverage and strong
cash flow generation. The rating is primarily restrained by (1)
the cyclicality of the steel industry, (2) erratic demand for
long-steel in the domestic market due to the ups and downs of
the local economy, (3) sales concentration on commodity
products, and (4) potential increase of financial leverage and
negative free cash flow due to substantial capex planned for the
coming years.

Gerdau Brazil is the country's largest producer of long steel
with a solid and relatively stable share of about 48% in a
market dominated by few players, where the second largest holds
some 35% market share. A major factor for the group's good
market penetration is its efficient distribution network, which
includes 77 own distribution stores throughout Brazil. Some 83%
of Gerdau Brazil's sales in the domestic market are originated
in the Southeast and South regions of Brazil, which together
represent some 75% of the country's GDP. The operational
diversity provided by its 6 electric arc furnaces and 4
integrated mills, sized and located to attend their regional
markets, combined with cost-efficient manufacturing operations
deriving from massive investments in technology and efficient
raw material acquisition, particularly for steel scrap and pig
iron. In addition, Gerdau Brazil's plants have operated at close
to full capacity, contributing to fixed costs dilution.

Gerdau Brazil has reported a substantial growth in revenues over
the past years, in great part reflecting the acquisition of
Acominas, but also due to the improved steel prices. The group's
tight cost control is reflected in the strong and relatively
stable EBITDA margins in the 30% range even during periods of
depressed prices, which has translated into strong and steady
cash flow from operations to net revenues in the high 20% range.

In line with the group's prudent management, financial leverage
at Gerdau Brazil has been maintained at satisfactory levels when
compared to internal cash flow generation. Also management's
policy to maintain a comfortable level of cash as a liquidity
reserve was recognized by Moody's. Moody's, however, views
current metrics as more representative of the peak of the cycle
and we would expect some contraction in the level of earnings
generated as prices retreat.

On the other hand, the rating of Gerdau Brazil is tempered by
the event risk and potential increase in financial leverage and
negative free cash flow deriving from Gerdau Brazil's aggressive
investment plans for the coming years, which include the
expansion of production capacity of its Ouro Branco plant from 3
million tpy of crude steel to 4.5 million tpy in a first step,
and further to 7 million tpy in a second stage. Gerdau Brazil's
rating also incorporates the fact that domestic sales growth has
been impaired by the ups and downs of the Brazilian economy,
high interest rates constraining the population's purchasing
power, lack of investments in infrastructure by the government,
and regulatory uncertainties that have maintained private
investments at a slow pace.

The Ba2 GLC corporate family rating assigned to Gerdau S.A.
incorporates, in addition to the Ba1 GLC rating of Gerdau Brazil
that represents some 51% of the group's consolidated revenues,
also the Ba3 corporate family rating of Gerdau Ameristeel that
contributes about 45% to the group's total consolidated

While the Gerdau group benefits from the strong market shares of
its subsidiaries in other Latin American countries (Chile,
Uruguay, Argentina), these operations provide relatively modest
contribution to the group in terms of revenues and EBITDA, given
the small size of those markets relative to Brazil and North

The acquisitions made by the Gerdau group in North America over
the past years, while helping in the group's geographic
diversification into a more stable market, also represents
substantial integration risk to the group. Although the Gerdau
group gathered ample experience in the turnaround and
integration of new acquisitions during the privatization of the
steel sector in Brazil, Moody's believes the successful
integration of recently acquired assets in the US, and the need
of further improvement of operational efficiency and margins in
North America, represent relevant challenges for the group's
management. Although Moody's understands Gerdau is well-
positioned in the Americas steel industry consolidation process,
we believe the group's acquisitive strategy represents
substantial event risk.

The Ba2 GLC rating of Gerdau also takes into consideration its
healthy credit metrics on a consolidated basis. Management's
focus on cost-efficiency is reflected in the relatively stable
operating margins of around 20%, as measured by EBITDA, peaking
at 27% in the exceptional year of 2004. Overall, Moody's regards
the balance sheet structure of Gerdau group as sound, based on
adequate leverage, good liquidity position, and helped by a
disciplined dividend distribution.

Gerdau group's sales are concentrated on commoditized products,
such as slabs, billets and common long steel, although Moody's
understands the particularities of the Brazilian and Latin
American markets, where the Group benefits from solid market
shares and limited competition from imports, mitigates the
commodity risk for those markets. This, however, is not valid
for the North American market, a net importer of steel. Moody's
expects the ongoing consolidation of the steel industry in North
America will help to discipline the market and reduce margin
volatility over the medium term.


The stable outlook reflects Moody's view that Gerdau will
maintain its prudent financial management and comfortable
liquidity position, continue its focus on the improvement of its
cost-structure, as well as successfully consolidate the
integration of the North American assets.


The ratings could be under pressure for possible downgrade in
case of reduced consolidated EBITDA margins to below 20% or if
Debt / EBITDA grew beyond 2.5x on a consistent basis. Also, a
sharp deterioration in the group's liquidity position could have
an adverse impact on the rating. For the bonds, a substantial
increase in the level of secured debt of the guarantors could
lead to a downgrade of the current bond rating.


The ratings of Gerdau could be under pressure for possible
upgrade in case of a substantial and permanent improvement in
consolidated EBITDA margin to the high 20% range.

Headquartered in Porto Alegre, Brazil, Gerdau is the largest
long steel producer in Brazil and the second largest long steel
manufacturer in North America, with consolidated net revenues of
about USD 7 billion in 2004.

NET SERVICOS: Prior Debenture Terms, Details Approved
The Fiscal Council of Net Servicos de Comunicacao S.A. voted for
the terms and conditions of debenture issuance during the 1st
Fiscal Council Meeting previously held August 1, 2005.


Date and time: September 1, 2005, at 1:00 p.m.


All members of the Fiscal Council, Messrs. Martin Roberto
Glogowsky, Charles Barnsley Holland and Antonio Jose Alves
Junior, in accordance with the signatures bellow.

Presiding Board:

Martin Roberto Glogowsky  - Chairman
Antonio Jose Alves Junior - Secretary


For the purposes of complying with the provision in the clause
1.5 of the Minutes of the 1st Fiscal Council Meeting of the
Company, dated as of August 1, 2005, the Fiscal Council has
analyzed the deed of the issuance and the preliminary prospectus
related the Company's fifth public debenture issuance, and voted
for the terms and conditions of the referred offering and
debenture issuance.


Nothing more to be dealt with, the meeting was adjourned,
drawing up these present minutes which, after being read, were
approved and signed by all attending consultants.

CONTACT: Net Servicos de Comunicacao S.A.
         Investor Relations
         Marcio Minoru
         Phone: 011-5511-2111-2811
         Sandro Pina
         Phone: 011-5511-2111-2721

PARMALAT BRASIL: Presents Reorganization Plan to Court
Parmalat Brasil, a unit of cash-strapped Italian dairy producer
Parmalat Finanziaria S.p.A., has presented its recovery plan to
the court, according to an Investnews report.

The plan, drafted with Integra consultants, confirms the unit's
economic viability and presents a schedule for the payment of
its BRL800-million debt to suppliers and banks. The plan
includes the sale of operating assets to help the unit pay off
part of the debt and to reinforce its working capital.

Parmalat Brasil filed for bankruptcy protection on June 24,
2005, under Brazil's new bankruptcy law. The filing came after
the unit's creditors denied the extension of the BRL800-million
payment deadline for the Company's debt.

Parmalat Brasil first filed for bankruptcy protection in 2004
under the old Brazilian bankruptcy law. The unit filed for
bankruptcy again to take advantage of the New Bankruptcy and
Restructuring Law of Brazil (NBRL), which became effective on
June 9, 2005.

Under the NBRL, debtors are permitted to remain in possession
and control of their businesses and properties. In addition, as
part of the judicial reorganization under the NBRL, most
creditors are effectively prohibited from enforcing claims
against the Debtors.

In July, a judge in Sao Paulo required Parmalat Brasil to file a
Plan of Reorganization by August 29, 2005. The Judge said the
Company must devise a business plan including methods and
timetables for paying creditors.

UNIBANCO: Strong Demand Bumps Up BRL2.4-Bln Debenture Issue
Unibanco Leasing, a unit of Uniao de Banco Brasileiros
(Unibanco), the country's third largest private bank, sold
BRL2.4 billion worth of non-convertible debentures, reports Dow
Jones Newswires.

The unit had originally planned to issue only BRL2 billion worth
of debentures but due to strong demand, the unit increased the
issue by BRL400 million.

The debentures, which will mature in January 2020, will pay an
annual interest rate corresponding to Brazil's interbank rate.

Unibanco itself coordinated the operation.


LE MANS DESARROLLO: SVS Initiates Annuity Marketing Efforts
Securities and insurance regulator, the SVS, began a roadshow to
sell the annuities portfolio of bankrupt life insurer Le Mans
Desarrollo, reports Business News Americas.

Troubled Company Reporter - Latin America reported in June that
Le Mans, which was intervened in 2003 following the collapse of
its parent, local financial group Inverlink, has assets totaling
some CLP33 billion (US$55.6 million) - not enough to cover the
pensions of its 3,300 affiliates.

Nevertheless, sources say pension payments will be fully honored
over the course of 10-12 years, after which the state will
assume responsibility of any losses resulting from the insurer's


EMCALI: Agrees to Pay for Reconstructing Utility Networks
Cali's multi-utility Emcali reached an accord with transport
firm Metrocali, under which it will pay for alterations to
utility networks needed for the MIO public transport system,
reports Business News Americas. The accord calls for an initial
investment of COP32 billion (US$14 million) between 2005 and
2009 on the part of Emcali for moving or reinstalling water and
sewerage pipes and electricity and telecommunications lines on
trunk corridors.

On the pre-trunk corridors of the MIO mass public transport
system, the public service company for the city, capital of
Valle de Cauca department, will provide COP48 billion as the
money becomes available.

In addition, Emcali will be responsible for the maintenance of
infrastructure of the public services once the construction firm
contracted by Metrocali has completed the alterations.

TELECOM: Telefonica Continues to Explore Possible Bid
Spain's Telefonica has not given up hopes of acquiring a
controlling stake in Colombia's state-run telephone company
Colombia Telecomunicaciones (Telecom), also sought by Mexican
magnate Carlos Slim. On Friday, Telefonica Chairman Cesar Aliera
met with Colombian President Alvaro Uribe to explore a possible
bid for Telecom. The meeting came a week after Mr. Slim's
Mexican telecommunications group Telmex offered to buy a
majority stake in Telecom for US$350 million in a cash-and-stock

The legality of Telmex's offer, however, was questioned by the
nation's comptroller general, giving rivals like Telefonica more
time to work on a counteroffer. Faulting the deal for lack of
transparency and calling it unduly generous toward Telmex,
auditor general Antonio Hernandez advised Telecom to say no to
Telmex's offer.

"The government wants to hear other offers, not just from
Telmex," said Carlos Silva, head of research at Bogota-based
brokerage Ultrabursatiles. "We think it will be a months-long
process before we see a complete answer about the future of

Colombian Communications Minister Martha Pinto said on Tuesday
the country would reject Telmex's offer if the deal broke the
law. But while he criticized the deal, Mr. Hernandez never said
it was illegal.


HONDUTEL: Privatization May Mean $50M-80M Loss to State
Lobby group Bloque Popular is seeking to delay the market
liberalization in order to give state telecoms monopoly Hondutel
more time to prepare for competition by gradually dropping its
tariffs, Business News Americas reports. Beginning December 25
this year, Hondutel will lose its monopoly on international long
distance, fixed-line telephony, public telephony, telegraphy and
telex. The 1995 telecommunications law left all other sectors

Once Hondutel loses its exclusivity rights to certain telecoms
services, the state stands to lose US$50 million - US80 million
a year in income.

A new telecoms law is being debated in congress and is expected
to be approved this month, Honduran telecoms regulator Conatel
president Jose Renan Caballero said last month.

The law granted a license to offer PCS services in the 1900Mhz

According to Caballero, the new law will set up the framework
for the new competitive scenario.


AOL LATIN AMERICA: Court Sets October 28 Claims Bar Date
The U.S. Bankruptcy Court for the District of Delaware
established 4:00 p.m. on Oct. 28, 2005, as the deadline for all
creditors owed money on account of claims arising prior to June
24, 2005, against America Online Latin America, Inc., and its
debtor-affiliates, to file their proofs of claim.

Creditors must file written proofs of claim on or before the
Oct. 28 Claims Bar Date and those forms must be actually
received by:

               Bankruptcy Services, LLC
               757 Third Avenue, 3rd Floor
               New York, New York 10017
                  Governmental Claims Bar Date

The Hon. Mary Walrath also established 4:00 p.m. on Dec. 21,
2005, as the deadline for all governmental units owed money by
the Debtors on account of claims arising prior to June 24, 2005,
to file their written proofs of claims.

Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- offers AOL-branded  
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network.  Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.  
The Company and its debtor-affiliates filed for chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).  
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed total assets of $28,500,000
and total debts of $181,774,000. (Troubled Company Reporter,
Tuesday, Sep. 6, 2005, Vol. 9, No. 211)

AOL LATIN AMERICA: Seeks Court Approval for Lease Amendment
America Online Latin America, Inc., and its debtor-affiliates
ask the U.S. Bankruptcy Court for the District of Delaware for
permission to:

    (i) amend a general office space lease dated Sept. 23, 1999,
        between AOL Management LLC and CYP Owner LLC, as
        successor-in-interest to Cypress Centre LLC; and

   (ii) enter into a sublease agreement with NECC Telecom, Inc.,
        for Suite 400, nunc pro tunc to Aug. 31, 2005.

Under the Lease Amendment, the Debtors seek to reduce
approximately 26,816 rentable square feet being rented pursuant
to the terms of the Lease to approximately 3,522 rentable square
feet by surrendering Suite 400 located at 6600 North Andrews
Avenue, Ft. Lauderdale, Florida, to CYP Owner.  The Debtors tell
the Court that they no longer need the office space after the
implementation of the wind down of their business operations.  

The Debtors are relocating to Suite 300 of the same building
with a reduced monthly rent payment of $6,900 from $68,000.  In
addition, the parties will release each other from all claims
arising on or after Sept. 30, 2005, under the Lease with respect
to Suite 400.

As the lease does not expire until March 2006, the Debtors say
it would stand to save $360,000 in rent reductions over the life
of the lease amendment.


The Debtors entered into a sublease agreement asking NECC to
relocate to Suite 400 on an immediate basis for a term of 30
days until the effective date of the Lease Amendment, subject to
Bankruptcy Court approval.  The Debtors will share Suite 400
with NECC during the month of September until they complete
their relocation to Suite 300.

The sublease does not require NECC to pay any rent to AOL
Management from Aug. 31, 2005, to Sept. 30, 2005.  

The Court will convene a hearing to consider the Debtors'
request at 2:00 p.m. on Sept. 19, 2005.(Troubled Company
Reporter, Tuesday, Sep. 6, 2005, Vol. 9, No. 211)

ASARCO: Meeting of Creditors Slated for September 14
The United States Trustee for Region 7, Richard W. Simmons, will
convene a meeting of Asarco LLC and its debtor-affiliates'
creditors at 10:30 a.m. on Sept. 14, 2005, Room 1107, 606 North
Carancahua, in Corpus Christi, Texas. This meeting is the first
meeting of creditors required under Section 341(a) of the
Bankruptcy Code in the bankruptcy case.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible officer of
the Debtors under oath about the company's financial affairs and
operations that would be of interest to the general body of

Headquartered in Tucson, Arizona, ASARCO LLC -- is an integrated copper mining,  
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).  
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble,
Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the
Debtor in its restructuring efforts.  When the Debtor filed for
protection from its creditors, it listed $600 million in total
assets and $1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-0521
thru 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos Of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.  ASARCO has asked
that the five subsidiary cases be jointly administered with its
chapter 11 case.(ASARCO Bankruptcy News, Issue No. 4; Bankruptcy
Creditors' Service, Inc., 215/945-7000)

SICARTSA: Talks with Villacero Flop, Labor Ministry Blamed
Negotiations on resolving the month-old strike of Sicartsa
workers failed to advance and Mexico's labor ministry is to
blame, Business News Americas reports. An official of the
mining-metalworkers union STMMRM blamed the ministry for the
lack of progress in putting a stop to the strike against
steelmaker Sicartsa because it did not invite union workers to
the negotiation table.

STMMRM has been waiting for the ministry to invite workers into
the negotiation with company officials since September 2, a day
after the workers decided that the new contract they made with
parent company Grupo Villacero last week, which was supported by
the government, was not enough and thus continued the strike
that began on August 1.

Villacero had proposed a 1-2% wage increase on every thousand
tonnes of steel billets shipped each week in hopes of ending the
month-old strike. However, 781 representatives from the southern
Mexican steel plant Sicartsa had voted against the proposition
versus the 731 that agreed.

The strike has cost the Company more than US$87 million in lost

UNITED RENTALS: Moody's Junks Senior Sub. Debt, Preferred Shares
Moody's Investors Service lowered the long-term ratings of
United Rentals (North America) Inc. and its related entities --
Corporate Family Rating (previously called Senior Implied) to B2
from B1; Senior Unsecured to B3 from B2; Senior Subordinate to
Caa1 from B3; and Quarterly Income Preferred Securities (QUIPS)
to Caa2 from Caa1.  The ratings remain under review for possible
further downgrade.  The company's Speculative Grade Liquidity
Rating is affirmed at SGL-3.

The rating action is prompted by the greater challenges that
United Rentals faces in resolving pending accounting
investigations in a timely fashion to bring its financial
reporting current, as well as in negotiating with various
creditors regarding waivers of covenant violations stemming from
its inability to meet financial statement reporting
requirements. Currently, the company is in violation of the
reporting and filing covenants contained in its convertible
notes, its senior and subordinated notes, and its preferred
securities.  Similar requirements contained in its bank
facilities have been waived by lenders through December 2005.

While United Rentals' business continues to perform well,
Moody's rating action considers that it could be some time
before the accounting investigation can be resolved, and that
negotiations with creditors could become increasingly
challenging and costly for the company.  Moody's also notes that
until these matters are resolved holders of at least 25% of any
of United Rentals' outstanding debt issues could issue a notice
of default which could lead to an acceleration of the debt
unless resolved within a 30 day period.

Recently, holders of more than 25% of the aggregate principal
amount of the convertible notes contacted United Rentals and
proposed that they would be willing to consent to waivers if
certain terms and conditions are met.  To date, United Rentals
has been unable to agree with the holders of the convertible
notes on the terms necessary for a waiver.  In addition, United
Rentals' senior and subordinated note holders have formed an ad
hoc committee whose members collectively hold more than 25% of
each of the remaining notes.  United Rentals has commenced a
consent solicitation seeking waivers from bondholders that would
provide it with time to resolve the accounting investigations
and bring its financial reporting current.  While successful
completion of the consent solicitation would be beneficial for
the company, Moody's notes that until waivers are agreed for all
classes of debt, the debt holders represented by the two groups
noted above are reported to have sufficient standing to cause a
notice of default to be issued under their respective indentures
at any time.

In addition to the covenant violations precipitated by the
delayed filing of its financial statements, United Rentals is
contending with a number of other challenges relating to its
reporting and control deficiencies:

   1) the company's CFO was recently terminated for cause after
      refusing to answer questions raised by a special committee
      of the company's Board of Directors;

   2) the SEC is continuing its inquiry which appears to relate
      to a broad range of the company's accounting practices and
      which is not confined to a specific period or to matters
      which have been disclosed to date;

   3) the SEC has also issued a subpoena to one of United
      Rentals' suppliers for information regarding certain
      transactions in 2000 and 2001; and

   4) United Rentals may also face additional costs due to
      shareholder litigation stemming from these matters.

Moody's continued review is focusing on:

   * the company's progress in completing the consent
     solicitation for waivers;

   * the nature and degree of any accounting restatements and
     other changes that may be necessary as a result of the
     pending investigations;

   * the company's progress in resolving the SEC investigation
     and bringing its financial reporting current; and

   * its ability to implement more effective internal control
     and accounting practices.

The review will also consider:

   * the company's operating performance and cash flow
     generation from its business;

   * its ability to sustain an adequate liquidity profile while
     these matters are being resolved;

   * its progress regarding the hiring of a new CFO; and

   * the potential impact of ongoing shareholder litigation.

Successful resolution of these matters could facilitate
stabilization of the rating, and a continued favorable operating
trend could strengthen the company's rating prospects over time.
However, until these matter are resolved, Moody's believes that
the potential for adverse developments warrant continuation of
the review for possible downgrade.

The SGL-3 Speculative Grade Liquidity Rating continues to
reflect Moody's belief that the company should be able to
maintain an adequate liquidity profile through a combination of
free cash flow generation, favorable levels of cash balances and
availability under the bank facility.  Covenant waivers may be
needed if resolution of the accounting and SEC investigations
takes a protracted period or if the holders of the convertible
notes or the senior and subordinated notes deliver a notice of
default under their respective indentures.  Moody's notes that
the company is pursuing consent solicitations which could
alleviate this potential pressure on liquidity.

The ratings downgraded and under review for possible further
downgrade are:

United Rentals (North America), Inc.:

   * Corporate Family Rating to B2 from B1
   * Senior Secured Bank Credit Facility rating to B2 from B1
   * Senior Unsecured debt rating to B3 from B2
   * Senior Subordinated debt to Caa1 from B3

United Rentals Trust I:

   * Quarterly Income Preferred Securities to Caa2 from Caa1

United Rentals, headquartered in Greenwich, Connecticut, is the
world's largest equipment rental company.  The company also
sells new and used equipment and contractor supplies.(Troubled
Company Reporter, Tuesday, Sep. 6, 2005, Vol. 9, No. 211)


ANCAP: Budgets $4M for Pilot Alcohol Fuel Plant
State oil firm ANCAP (Administracion Nacional de Combustibles
Alcohol y Portland) is implementing a pilot program to produce
120 cubic meters a day of alcohol fuel from sugar cane in the
country's coastal region, reports Business News Americas.

According to ANCAP VP Raul Sendic, the Company has earmarked
US$4 million to build a plant, which is expected to start up in
the first half of 2006.

The program forms part of ANCAP's medium-term objective, which
is to cut back on imports of expensive fuels, which will cost
the Company some US$900 million this year alone.

ANCAP currently imports about 1 million barrels of crude a month
from Venezuela under an agreement signed in March by both

ANCAP is Uruguay's government-owned oil & gas company with
strong roots in the domestic downstream market. The government
incorporated the Company in 1931 to operate the state monopoly
in the fuel and natural gas sectors. ANCAP maintains exclusive
rights over refining activities and crude oil, refined products,
and natural gas imports in the country. The Company also
participates in the cement sector, although it does not have a
monopoly in this activity.

ROYAL SHELL: Official Confirms Company Considering Exit
Royal Dutch Shell PLC is analyzing the possible sale of its
businesses in Uruguay, where it runs 89 service stations as
marine and aviation fuel sales operations, Dow Jones Newswires
reports, citing an unnamed company official. The official was
confirming media reports in Argentina and Uruguay over the
weekend that the Company is considering a sale.

"Right now it is nothing more than analysis and there are no
details about it," the official said.

With regards to the possibility of selling the Argentine
operations, the official said "there was an analysis and we
decided that we will stay here."


CANTV: Inks Two-Year Wage Accord With Workers
Telecommunications firm CA Nacional Telefonos de Venezuela
(CANTV) struck a two-year wage deal with workers, according to
an AP report. The Labor Ministry revealed that the deal is
expected to benefit 2,960 workers and includes an increase in
the lowest wage level offered by CANTV to VEB1,150,000 (US$535)
a month, up from VEB890,000 (US$414).

CANTV's stock price has suffered in recent weeks after
Venezuela's high court issued a ruling in favor of workers
seeking adjustments to their pensions. The Company must now
adjust pensions to a new minimum wage level as well as past
devaluations and inflation.

HEINZ PLANT: Monagas Governor Orders Plant Seizure
The head of the Venezuelan state of Monagas ordered troops to
seize an abandoned tomato-processing plant owned by H.J. Heinz
Co., according to an AP report. Angelica Rivero, spokeswoman for
Monagas governor Jose Gregorio Briceno, explained: "The governor
decided to seize the plant so it can be protected from looters
and later be put to use." Ms. Rivero said the plant still
belongs to Heinz but hasn't been used for years.

Gov. Gregorio Briceno told the state-run Bolivarian News Agency
that the plant changed hands several times under previous
governments before Heinz purchased it in 1997 and later ceased

The actual expropriation order for the plant should come in two
weeks' time. Venezuela's Congress must first declare a
particular asset of "public interest" before the government can
fully take it over.


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Sheryl Joy P. Olano, Editors.

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

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

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

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *