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                    L A T I N   A M E R I C A

          Friday, September 9, 2005, Vol. 6, Issue 179



CIT S.A.: Validated Claims to be Presented in Court for Review
CLUB ATLETICO: Settlement Proposal Set for Informative Assembly
GAMAP S.R.L.: General Report Due for Submission September 12
HECBI PRODUCCIONES: Trustee to Present General Report on Monday
LOUCEN INTERNATIONAL: Court Aurthorizes Reorganization

METALURGICA INMECA: General Report Due for Court Filing
RED MEN: Claims Filing Period Ends Sep. 12
REPSOL YPF: Sells 50% Stake in Local Unit to Basell for $58M
SANCOR: Moody's Assigns Caa1 Global FC Rating


PACTUM LTD.: Company to be Wound Up, Liquidator Appointed


AGUAS DEL ILLIMANI: Auditors Begin Document Gathering Phase


ECOPETROL: Unisys, Synapsis to Manage IT Infrastructure
TRANSGAS DE OCCIDENTE: S&P Releases Ratings Analysis

D O M I N I C A N   R E P U B L I C

REPUBLIC BANK: Fitch Upgrades LTFC Rating to 'B-' from 'CCC'
TRICOM: Turin to Upgrade Metro Core Infrastructure


JPSCo: Controversy Surrounds Parent Mirant's Profit Sources
KAISER ALUMINUM: Court May OK Disclosure Statement This Week


BALLY TOTAL: Enters Supplemental Indenture with U.S. Bank
GRUPO IUSACELL: To Promote Fixed Wireless with Infonavit


BANCO ITAU (URUGUAY): Obtains 'B+' Foreign LT Rating From Fitch


SINCOR: Tax Audit Continues Amid Royalty, Production Concerns

     - - - - - - - - - -


CIT S.A.: Validated Claims to be Presented in Court for Review
The creditors' validated claims against Buenos Aires-based Cit
S.A. will be presented in court as individual reports on Monday,
Sep. 12, 2005. The claims underwent verification claims that
lasted until July 15, 2005.

A general report, which will contain a summary of the Company's
financial status as well as relevant events pertaining to the
bankruptcy, is also expected on Nov. 25, 2005.

The city's civil and commercial Court No. 24 declared the
Company bankrupt and appointed Ms. Mirta Calfun de Bendersky as

The bankruptcy process will end with the sale of the Company's

CONTACT: Ms. Mirta Calfun de Bendersky, Trustee
         Humahuaca 4165
         Buenos Aires

CLUB ATLETICO: Settlement Proposal Set for Informative Assembly
Club Atletico Rosario Central will present its completed
settlement plan to creditors in an Informative Assembly on Sep.
14, 2005. The meeting is intended to be the final stage of

Club Atletico Rosario Central began reorganization following the
approval of its petition by Court No. 8 of Rosario's civil and
commercial tribunal.

CONTACT: Club Atletico Rosario Central
         Rosario (Santa Fe)

GAMAP S.R.L.: General Report Due for Submission September 12
The summary of the Company's financial status as well as
relevant events pertaining to the bankruptcy will be submitted
as general report on Monday, Sep. 12, 2005. Buenos Aires-based
Gamap S.R.L. began liquidating its assets following the
pronouncement of the city's Court No. 22 that the company is

Mr. Hector Francisco Presta, the trustee appointed by the court
for the liquidation, verified creditors' proofs of claim until
June 2, 2005. The validated claims were presented in court as
individual reports on July 29, 2005.

The bankruptcy process will end with the disposal of the  
company's assets in favor of its creditors.

CONTACT: Mr. Hector Francisco Presta, Trustee  
         Parana 467
         Buenos Aires

HECBI PRODUCCIONES: Trustee to Present General Report on Monday
Court-appointed trustee Susana Graciela Marino will present the
general report on the bankruptcy of Hecbi Producciones S.R.L. on
Monday, Sep. 12, 2005.

Hecbi Producciones S.R.L., which was undergoing reorganization,  
entered bankruptcy on orders from Court No. 14 of Buenos Aires'  
civil and commercial tribunal.

The credit verification process was done "por via incidental".

CONTACT: Ms. Susana Graciela Marino, Trustee  
         Uruguay 560
         Buenos Aires

LOUCEN INTERNATIONAL: Court Aurthorizes Reorganization
Loucen International S.A. successfully petitioned for
reorganization after Court No. 16 of Buenos Aires' civil and
commercial tribunal 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 local accounting firm Estudio Martinez,
Angelini y Asociados will serve as trustee during the course of
the reorganization. The trustee will be accepting creditors'
proofs of claim for verification until Nov. 25, 2005.

After the official claims review process, the trustee will
prepare the individual reports and submit it in court on Feb.
10, 2006. A general report will also be presented for court
review on March 24, 2006.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on Sep. 12, 2006.

CONTACT: Estudio Martinez, Angelini y Asociados
         Libertad 877
         Buenos Aires

METALURGICA INMECA: General Report Due for Court Filing
The general report on the liquidation of Buenos Aires-based
Metalurgica Inmeca S.A. will be on Monday, Sep. 12, 2005. Court-
appointed trustee Ruben Hugo Faure will include in the report
the summary of the Company's financial status as well as
relevant events pertaining to the case.

Metalurgica Inmeca S.A. began liquidating its assets following
the bankruptcy pronouncement issued by Court No. 9 of the city's
civil and commercial tribunal.

Mr. Faure stopped accepting creditors' claims against the
Company on June 6, 2005. The validated claims were presented in
court as individual reports on Aug. 1, 2005.

CONTACT: Metalurgica Inmeca S.A.
         Avda Federico Lacroze 1966
         Buenos Aires

         Mr. Ruben Hugo Faure, Trustee
         Avda Rivadavia 1227
         Buenos Aires

RED MEN: Claims Filing Period Ends Sep. 12
Court-appointed trustee Marcos Livszyc will stop accepting
claims from creditors of Red Men S.R.L. on Monday, Sep. 12,
2005. Out of the validated claims, the trustee will prepare
individual reports on Oct. 28, 2005. Mr. Livszyc will also
submit a general report on Dec. 20, 2005.

Red Men S.R.L. of Buenos Aires began liquidating its assets
after Court No. 9 of the city's civil and commercial tribunal
declared the Company bankrupt.

Clerk No. 17 assists the court on this case.

CONTACT: Mr. Marcos Livszyc, Trustee
         Nunez 6387
         Buenos Aires

REPSOL YPF: Sells 50% Stake in Local Unit to Basell for $58M
Spanish-Argentine oil and gas company Repsol-YPF successfully
sold its 50% stake in Argentine chemical producer Petroquimica
Ensenada SA to Dutch company Basell, reports Dow Jones
Newswires. According to Repsol, the transaction, valued at US$58
million, will not make a significant impact on its results.

Repsol announced the deal with Basell Iberica Poliolefinas
Holdings SL in March, but the transaction still needed the
approval from Argentine antitrust authorities.

Petroquimica Ensenada (Petroken) is Argentina's largest
manufacturer of polypropylene.

Basell, formerly a joint venture of Royal Dutch/Shell Group and
BASF AG, is the world's largest producer of polypropylene and
Europe's largest producer of polyethylene, the key ingredients
that go into plastics of all kinds.

SANCOR: Moody's Assigns Caa1 Global FC Rating
Moody's Latin America has assigned a Caa1 global foreign-
currency rating to Sancor Cooperativas Unidas Ltda. and upgraded
the national scale rating to from on Sancor's US
dollar-denominated restructured bonds. The outlook is stable.

The ratings reflect the conclusion of the restructuring process
that the company reached with creditors in March, which resolved
the issuer's previous default situation. However, the ratings
also recognize a remaining restructuring risk over the short to
medium term due to the low flexibility obtained by the company
from the restructuring agreement.

Ever since the deep recession in consumption that followed the
Argentine peso devaluation, Sancor has been increasing its
production and sales volumes to historical levels. FY05 volumes
should reach near 1.5 million liters of milk processed, similar
to the level reached in FY02. Total revenues have been almost
flat during the last three fiscal years, while margins have
improved, leading to an estimated EBITDA of AR$ 85 / 90 for the
last fiscal year. As a consequence, debt to EBITDA ratio has
fallen from 8.8x to 5.8x despite almost the same nominal amount
of debt.

Moody's also notes that the volatility of the historical metrics
correlates strongly with the volatile environment in which
Sancor operates. Although Sancor's profitability is improving,
it remains lower than in the past. Sancor is still in a
precarious financial condition and holds high amounts of dollar-
denominated debt. The tight debt repayment schedule that Sancor
has agreed to under the restructuring could be challenging given
the company's likely cash flow and therefore lead to a new
restructuring scenario.

Given the recent upgrade and stable outlook, an upgrade is
unlikely, said Moody's.. A rating upgrade would require greater
certainty about Sancor's ability to generate enough cash to meet
debt service.

On the the other hand, if Sancor's financial situation should
worsen and cash generation is insufficient to service debt,
there could be a new restructuring and the company's ratings
could be downgraded.

SanCor, is a second-tier cooperative, created in 1938,
headquarters in Sunchales, Province of Santa Fe, Argentina. It
comprises 68 active co-ops in the dairy milk industry, located
throughout the territory of the provinces of Santa Fe, Cordoba
and Buenos Aires. It is one of the leading companies in the milk
industry, and one of the top 10 companies in the food sector in


PACTUM LTD.: Company to be Wound Up, Liquidator Appointed


              IN THE MATTER OF Pactum Ltd.

The Members of Pactum Ltd., acting by written consent without a
meeting on August 26, 2005 passed the following resolutions:

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

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

The Liquidator informs that:

- The Creditors of Pactum Ltd., which is being voluntarily wound
up, are required, on or before September 21, 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 Company, and if so required by notice in
writing from the Liquidator, and personally or by their lawyers,
to come in and prove their debts or claims at such time and
place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Members of Pactum Ltd. will be
held at the offices of Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, Bermuda on October 12, 2005 at
9:30 a.m., or as soon as possible thereafter, for the purposes

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

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

3) by resolution dissolving the Company.

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


AGUAS DEL ILLIMANI: Auditors Begin Document Gathering Phase
A technical team appointed by the country's basic services
regulator Sisab has visited the offices of capital La Paz
waterworks company Aguas del Illimani (AISA) to collect some

In a previous report, Business News Americas said AISA, a
subsidiary of French energy group Suez, has promised to
cooperate fully with the auditors, as its terms of reference are
spelled out in the original concession contract.

"The contract allows for a regulatory audit and will most likely
cover the period 1997 to date," an AISA spokesperson said.

The government has been insisting that an audit of AISA's books
from the start of the concession needs to take place in order to
determine the amounts AISA invested in infrastructure.

The government had been in direct negotiations for several
months with AISA over the terms of rescission of the La Paz
waterworks management concession after prolonged street protests
by local residents.


ECOPETROL: Unisys, Synapsis to Manage IT Infrastructure
Unisys Corporation (NYSE:UIS) and Synapsis have won a contract
from ECOPETROL, Colombia's state-owned oil company, for
outsourcing services to manage its IT infrastructure and
enterprise applications. The contract, signed in the first
quarter of 2005, has a total value of approximately $27 million
over four years, and is worth approximately $14 million to
Unisys and $13 million to Synapsis.

Under the contract, Unisys will manage the network, security and
service-desk operations as well as maintain more than 200
servers located at ECOPETROL sites in Bogota, Barrancabermeja
and Cartagena. These services will be provided from the Unisys
Managed Services Center in Bogota, which currently serves more
than 20,000 users in enterprises and governments throughout
Spanish-speaking Latin America. Synapsis will administer more
than 200 mission-critical applications and also provide data
center management, telephony and videoconference services.
Synapsis is a company of Endesa Group, a utility group that
generates energy in Spain, Brazil, Argentina, Chile, Colombia
and Peru.

"Through this new relationship, ECOPETROL employees can become
more productive because the Unisys/Synapsis team can optimize
the IT infrastructure that supports their business operations
and reduce the time it takes to resolve service requests," said
Susan Watts, vice president and managing partner, Unisys Global
Outsourcing and Infrastructure Services, Latin America. "In the
process, we also will help ECOPETROL reduce the operating costs
related to these services."

"Because of this new contract, ECOPETROL will find a complete
team of professionals looking after their processes and positive
results to their business 24 hours per day, 365 days per year,"
said Alvaro Perez Uz, country manager of Synapsis Colombia.
"Certainly, our goal is to help ECOPETROL to improve day by

Unisys Managed Services Centers are a key part of Unisys fully
integrated global IT infrastructure management and support
solution. Like clients all over the world, ECOPETROL can
capitalize on the investment Unisys has already made in support
and services delivery infrastructure, focusing its own IT
resources on achieving strategic business goals.

About Unisys

Unisys is a worldwide information technology services and
solutions company. Our people combine expertise in consulting,
systems integration, outsourcing, infrastructure and server
technology with precision thinking and relentless execution to
help clients, in more than 100 countries, quickly and
efficiently achieve competitive advantage. For more information,

About Synapsis

Synapsis, as a part of Endesa Group, has the local, regional and
worldwide experience to transform the ideas and opportunities of
business into real results. Synapsis knows that to help its
clients, it must be part of them. Synapsis was founded in 1988,
and since then has become one of the most important IT players
in Latin America, with a complete portfolio of services and
products, such as outsourcing, telecommunications, software
factory and data center, achieving leadership in the systems
integrators category. For more information, visit

Unisys is a registered trademark of Unisys Corporation. All
other brands and products referenced herein are acknowledged to
be trademarks or registered trademarks of their respective

Contacts: Unisys Corporation
          Colombia: Carlos Velasquez Londono
          Tel: 57-1-638-0415


          North America:
          Brian Daly
          Tel: 215-986-2214

TRANSGAS DE OCCIDENTE: S&P Releases Ratings Analysis

The 'BB' foreign currency rating on TransGas de Occidente S.A.'s
US$240 million notes due 2010 reflects the risk of a single
source of bond repayment--the monthly tariff paid to TransGas by
Ecopetrol S.A. under a transportation services contract (TSC).
In addition, the rating reflects sluggish natural gas demand in
Colombia, which may affect economic incentives to operate the
TransGas project.

The surplus of the hydroelectric power industry adversely
affects Transgas because thermal power plants, which are the
projects' major consumers, are not using gas at the levels
originally assumed. Currently, TransGas' utilization rate ranges
between 35% and 38%. Although the low throughput does not affect
TransGas' performance and the transportation tariff schedule, it
appears to make the project less economic for Ecopetrol than

Positive factors that mitigate the project's risks are a
performance-driven tariff linked to the pipeline's availability,
which continues at 100%, and protective clauses that either
cancel or lessen risks derived from dispute resolution and
exchange risk.

Bond repayment ranks pari passu with all other present and
future indebtedness of TransGas, and it depends fully on
Ecopetrol's tariff payments. Credit comfort derives from a debt-
service reserve of up to six months of interest and principal
payments, as well as a contingency subaccount of the debt-
service reserve equivalent to $5 million, which can be used to
cover any cash shortfalls. There are no other alternative
sources of repayment other than the revenues associated with the
TSC. Notwithstanding the aforementioned strengths Ecopetrol's
obligations under the TSC are not guaranteed, secured, or
otherwise supported by the Colombian government.

The transaction contains a feature in the TransGas trust
indenture that stipulates that if TransCanada Pipelines Ltd. (A-
/Negative/--), through its wholly owned subsidiaries, reduces
its ownership of TransGas below 25%, the notes will be
redeemable at the option of any noteholder at par plus accrued
interest, plus a make-whole premium. However, TransCanada
continues to maintain its 46.5% stake in TransGas, and Standard
& Poor's does not expect material ownership changes to occur.

TransGas is a 344-kilometer (215-mile), 20-inch diameter natural
gas trunk line running from Mariquita in central Colombia to
Cali in the country's southwest, and 47 lateral lines totaling
about 430 kilometers (267 miles) along the trunk line with
metering stations to connect with distribution networks. The
pipeline has a design capacity of about 234 million cubic feet
per day without compression. The two major sponsors are TCPL
Marcali, a subsidiary of TransCanada, and BP Colombia, a
subsidiary of British Petroleum Co. PLC (AA+/Stable/A-1+).

TransGas was formed to build, operate, and maintain the pipeline
along with the associated lateral lines, and after 20 years,
Ecopetrol has the option to purchase the pipeline for 1% of the
construction cost. The project is part of the Colombian
government's strategy to substitute the use of electricity and
fuel oil with natural gas, formally known as the Gas Plan.

Even though the pipeline's utilization rate is below the
original estimates, TransGas posted adequate results for the
first semester 2005 with operating revenues of roughly $34
million, and a debt-service coverage ratio of 1.39x. To date,
TransGas has met all scheduled debt-service payments. The next
payment is scheduled for November 2005.


The stable outlook reflects the foreign currency rating and
outlook of the Republic of Colombia. Reduced support from the
Colombian government to its Gas Plan or another unforeseen event
that could jeopardize complete and timely payments to the
project would result in a negative rating action by Standard &

Primary Credit Analyst: Luis Manuel Martinez, Mexico City (52)

Secondary Credit Analyst: Jose Coballasi, Mexico City (52)55-

D O M I N I C A N   R E P U B L I C

REPUBLIC BANK: Fitch Upgrades LTFC Rating to 'B-' from 'CCC'
Fitch Ratings, the international rating agency, upgraded
Dominican Republic based Republic Bank (DR)'s (formerly known as
Banco Mercantil Dominicano) long-term foreign currency rating to
'B-' (Outlook Stable) from 'CCC', and its short-term foreign
currency rating to 'B' from 'C'. At the same time, the bank's
Individual Rating of 'E' was affirmed while its Support rating
is revised to '4' from '5'. Also, long- and short-term local
currency ratings of 'B' and 'B', respectively, were assigned for
the first time. The bank's national long- and short-term ratings
were also upgraded to 'A+(dom)' from 'BB(dom)' and to 'F-1(dom)'
from 'B(dom)', respectively. Republic Bank (DR)'s ratings
reflect the potential support the bank would receive from its
parent, Republic Bank Limited (RB), should it be required. The
ratings also reflect the constraints imposed by weak asset
quality, accumulated losses, and the volatility of the operating

After its acquisition by one of Trinidad & Tobago's leading
banks, Republic Bank Limited (RB), in late 2003, Republic Bank
(DR) undertook a restructuring process to enhance the bank's
financial profile and boost its market presence. The bank's name
was changed to Republic Bank (DR) in May 2005. Since the
acquisition, the restructuring process has entailed the transfer
of a portion of the loan portfolio (DOP3,098 million),
investments portfolio (DOP1,761 million) and other assets
(DOP1,641 million) related to the former shareholder group to
the Central Bank. Other actions have comprised staff reductions,
the rationalization of the branch network, and the repayment of
liquidity lines received from the Central Bank (completed by
end-2003). The primary source of support for Republic Bank (DR)
would be its shareholder, Republic Bank Limited (Long-term
foreign currency rated 'BBB-' by Fitch).

As of December 2004, Republic Bank (DR) ranked seventh out of 12
commercial banks, with a 3% market share by total assets.
Republic Bank Limited plans to focus on developing the bank's
position in both the corporate and consumer markets. In
September 2003, Republic Bank Limited acquired 99.8% of the
shares of Republic Bank (DR) and made a USD35 million fresh
capital injection. This operation, which was backed by the
Central Bank, entailed a thorough restructuring process aimed at
strengthening the bank's financial condition, which had been
severely weakened by the liquidity crunch suffered by the bank
prior to the acquisition.

Republic Bank Limited is a leading bank in Trinidad & Tobago but
also has operations in Guyana, Grenada, Barbados, St. Lucia, and
the Cayman Islands, and offers banking services throughout the
Caribbean. The group is engaged in retail banking, commercial
banking, merchant banking, trust services, mutual fund, and
investment management. Republic Bank Limited's ratings are
supported by a well-established franchise in its primary market,
its consistent earnings power, and its relatively sound capital

CONTACT:  Franklin Santarelli +58 212 2863232, Caracas
          Carlos Fiorillo +58 212 2863232, Caracas
          Gustavo Lopez +1-212-908-0853, New York

TRICOM: Turin to Upgrade Metro Core Infrastructure
Turin Networks, a global provider of multiservice optical
transport products for wireline, wireless and private networks,
announced Wednesday that Tricom, S.A., a leading carrier in the
Dominican Republic, has selected the Traverse(TM) Multiservice
Transport Switch to modernize their metro core infrastructure.

Tricom executives said they chose Turin's solution based on the
company's market leadership position and strong customer
references, as well as the multiservice versatility and
reliability of the Traverse platform.

"We evaluated a variety of technologies and platforms for
upgrading our existing SONET-based optical network to a high-
performance metro core that is optimized for next generation
packet services like Ethernet," said Valeriano Valerio, senior
vice president of engineering and operations for Tricom. "We
were most impressed with the ability of Turin's Traverse
platform to provide any combination of scalable optical
transport, wideband DCS, Gigabit Ethernet switching, and SONET-
to-SDH gateway flexibility from a single shelf, and determined
it was clearly the best fit for our needs."

"This is a very exciting time for the Caribbean
telecommunications market, and carriers like Tricom are paving
the way by deploying solutions like Turin's Traverse that enable
a truly 'pay-as-you-grow' evolution to advanced services like
Ethernet and the emerging IP/MPLS based core," said Manuel
Fernandez, regional vice president of sales for Turin Networks
Caribbean and Latin American Region. "We are excited to work
with such a progressive and well-regarded carrier and look
forward to supporting their success."

Turin is working with the company's partner in the Caribbean,
TeleNetworks Broadband Solutions, to provide Tricom with the
level of support and service required.

About the Traverse Platform

Turin's Traverse Multiservice Transport Switch simplifies the
transition to a converged optical transport network that
efficiently delivers traditional and next generation network
services. The Traverse platform unifies high-capacity Gigabit
Ethernet switching with next-generation SONET/SDH cross-connect
and transport functionality in a single shelf optimized for
metro and interoffice deployments. Applications that previously
required multiple devices and overlay networks can now be
supported from one compact and highly flexible system, enabling
service providers to profitably roll out advanced residential,
mobile and business access services.

About Tricom, S.A.

Tricom, S.A. is a full-service communications services provider
in the Dominican Republic. Tricom offers local, long distance,
mobile, cable television and broadband data transmission and
Internet services. Through Tricom USA, they are one of the few
Latin American-based long distance carriers that are licensed by
the U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through their
subsidiary, TCN Dominicana, S.A., is the largest cable
television operator in the Dominican Republic based on the
number of subscribers and homes passed. For more information
about Tricom, visit

About Turin Networks

Turin Networks Inc. is a global provider of multiservice optical
transport products for wireline, wireless and private networks.
More than 130 network operators worldwide have deployed the
company's flagship Traverse(TM) Multiservice Transport Switch to
increase the bandwidth efficiency and capacity of their
transport infrastructure. The Traverse solution delivers a
seamless migration from SONET/SDH to Ethernet based transport
and switching, enabling the cost-effective delivery of advanced
services like Ethernet, 3G and IP Video as well as existing TDM
services. Corporate headquarters are located in Petaluma,
Calif., with sales offices and research and development
facilities throughout the world. For more information, visit or call 707.665.4400.

Turin Networks, the Turin Networks logo, Traverse, Traverse
2000, Traverse 1600, Traverse 600, TraverseEdge, TransAccess,
and TransNav are trademarks of Turin Networks, Inc. or its
affiliates in the U.S. and other countries.

MEDIA CONTACTS: Turin Networks, Inc.
                Kevin Wade


JPSCo: Controversy Surrounds Parent Mirant's Profit Sources
The Jamaica Public Service Company (JPSCo) is responsible for
the net profit posted by its US parent, Mirant Corporation,
during the first six months of the year, according to an article
released by the Business Observer. The article contradicted
comments made by JPSCo public relations spokesperson Winsome
Callum last week that the Company is definitely not being relied
on to assist Mirant out of debt.

Mr. Callum was responding to claims made by Clive Mullings, the
opposition Jamaica Labor Party spokesman on energy, that Mirant
was milking JPSCo. Mr. Mullings had called for an inquiry into
the group's operation.

Mr. Callum deemed Mr. Mullings' statement "erroneous" and
demanded a retraction, insisting that the local firm had
contributed only 9% of the operating profit generated by
Mirant's international subsidiaries - located in the Caribbean
and the Philippines.

But a Business Observer review of Mirant's financial statements
indicate that JPSCo contributed 16% to operating profit of the
international subsidiaries.

The Business Observer highlighted the fact that for the six
months to June 30, 2005, JPSCo posted operating profit of US$31
million, out of the US$193 million operating profit made by
Mirant's international subsidiaries. This translated into 16%
contribution by the Jamaican operation.

But the more critical indicator of JPSCo's contribution to
Mirant, and which indicates the potential for funding of its
American parent, is the net profit made by the Jamaican
operation, and what percentage of the group's overall net profit
it represents.

For the six months, JPSCo netted US$17 million, while Mirant
Group netted US$1 million. Mullings said that the JPSCo
contributed US$16.7 million of the US$99 million operating
profit made by the international arm of Mirant during the first
quarter of 2004 - a statement that was validated by the Business
Observer's review of Mirant's financial statements.

Importantly, during the June quarter alone, Mirant Corporation
suffered an overall net loss of US$10 million. This deficit came
despite net profit of US$9.1 million made by JPSCo during that
quarter. Therefore, if not for JPSCo's contribution, Mirant
would have suffered a much bigger loss.

What remains unclear, however, is how much of the profit now
being made by JPSCo has been or will be repatriated to its
parent in the form of dividend payments.

This issue is critical because JPSCo has sought and obtained an
increase in rates from the Office of Utilities Regulation (OUR)
to fix poles damaged by Hurricane Ivan last year. Just months
before the hurricane, JPSCo took a decision not to insure the
poles, saying that it would be too expensive and that the cost
would have ultimately been passed on to customers.

The company began to create a self-insurance fund, but the
hurricane hit before any substantial savings could have accrued.

KAISER ALUMINUM: Court May OK Disclosure Statement This Week
Judge Fitzgerald has indicated that she would sign off the
disclosure statement explaining Kaiser Aluminum Corporation and
its debtor-affiliates' amended plan of reorganization within the
week, according to Dow Jones Newswires.

The U.S. Bankruptcy Court for the District of Delaware deferred
approval of the Disclosure Statement at the hearing on Sept. 1,
2005, upon consideration of an objection by the U.S.
Environmental Protection Agency.

The EPA had argued that the Disclosure Statement fails to
adequately explain how the Plan will provide for compliance with
environmental law with respect to certain contaminated
properties owned by Kaiser Aluminum Chemical Corporation.

Judge Fitzgerald said she expects to approve the Remaining
Debtors' Plan and Disclosure Statement "once the finishing
touches are put on plan documents," Dow Jones Newswires reports.

On Sept. 7, the Debtors filed a revised plan and disclosure
statement to incorporate the Court's orders at the hearing.

A black-lined copy of the Second Amended Disclosure Statement is
available for free at

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- is a leading  
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 77; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


BALLY TOTAL: Enters Supplemental Indenture with U.S. Bank
Bally Total Fitness Holding Corporation ("Bally" or "Company")
entered into a supplemental indenture (the "Senior Notes
Supplemental Indenture") with U.S. Bank National Association on
September 2, 2005, as trustee (the "Trustee"), which amended the
Indenture dated as of July 2, 2003, as supplemented on July 22,
2003, among Bally, as issuer, certain subsidiaries of Bally, as
guarantors, and the Trustee (the "Senior Notes Indenture"),
which governs Bally's 10-1/2% Senior Notes due 2011 (the "Senior

Bally Total also entered into a supplemental indenture (the
"Senior Subordinated Notes Supplemental Indenture"), which
amended the Indenture dated as of December 16, 1998, between
Bally and the Trustee (the "Senior Subordinated Notes Indenture"
and, together with the Senior Notes Indenture, the
"Indentures"), which governs Bally's 9-7/8% Senior Subordinated
Notes due 2007 (the "Senior Subordinated Notes" and, together
with the Senior Notes, the "Notes"). The Senior Notes
Supplemental Indenture and Senior Subordinated Notes
Supplemental Indenture are collectively referred to herein as
the "Supplemental Indentures".

The Supplemental Indentures were entered into in connection with
the successful completion of Bally's solicitation of consents
from holders of the Senior Notes and receipt of consents from
holders of a majority of the Senior Subordinated Notes to a
limited waiver of certain past Defaults or Event of Defaults
under the Indentures arising from the failure by Bally to file
certain information with the Securities and Exchange Commission,
and furnish such information to the holders of the Notes and the
Trustee. In addition, the Supplemental Indentures amended the
Indentures to waive future compliance by Bally with Section 7.4
of each Indenture, which require Bally to file with the
Securities and Exchange Commission, and furnish to the holders
of Notes and the Trustee, reports required to be filed pursuant
to the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), until November 30, 2005.

CONTACT: Bally Total Fitness, Chicago
         Matt Messinger
         Phone: 773-864-6850

GRUPO IUSACELL: To Promote Fixed Wireless with Infonavit
As part of an effort to tackle its debt situation, mobile
operator Iusacell will offer fixed wireless services in new
homes, reports Business News Americas. Iusacell has signed an
accord with federal mortgage lender Infonavit to offer the
service, which could cost up to 40% less than the Company's
regular mobile service depending on the plan and number of
phones installed. Infonavit plans to provide 375,000 loans this

With a client base of 1.62 million, Iusacell ranks third in
Mexico's mobile market behind Telcel (Amerrica Movil) with over
30 million subscribers and Movistar (Telefonica Moviles) with
over six million and just ahead of Unefon, which has 1.4

Iusacell has struggled for the past two years to renegotiate
close to US$800 million in debt. The Company did not disclose
when it could reach a deal with its creditors.  

CONTACT: Grupo Iusacell, S.A. de C.V.  
         Jose Luis Riera K.  
         Chief Financial Officer  
         J. Victor Ferrer  
         Finance Manager  
         Phone: 5255-5109-5927  


BANCO ITAU (URUGUAY): Obtains 'B+' Foreign LT Rating From Fitch
International ratings agency Fitch assigned a foreign long-term
rating of B+ to the Uruguayan unit of Brazilian wholesale bank
Banco Itau BBA, reports Business News Americas. Concurrently,
Fitch assigned a national rating of AA-(uy) to the unit. The
outlook on both ratings is positive.

Fitch said the ratings reflect the support from and synergies
with the parent, Brazil's Banco Itau Holding Financiera. Fitch
assigned the bank a support rating at 4.

The Uruguayan unit does not face risks due to its low activity,
but there is uncertainty regarding its future performance and
continuance in the region, as the bank would finance Brazilian
firms that would possibly operate in the Uruguayan market.

Nevertheless, Fitch does not see these events happening in the
short term.


SINCOR: Tax Audit Continues Amid Royalty, Production Concerns
Venezuela's tax authority Seniat is currently auditing Sincor
and Petrozuata, two of the four extra-heavy crude upgrading
projects in the Orinoco oil belt. According to Business News
Americas, the audit began in July this year after the energy and
oil ministry announced the four upgrading projects, including
Cerro Negro and Ameriven, were to have their royalty rates hiked
to 16% from 1% earlier this year.

The four associations combined produce about 600,000 barrels a
day (b/d) of synthetic crude. Sincor alone produces about

Energy and oil minister Rafael Ramirez has accused Sincor of
overproducing and instructed Seniat to start charging the
project a surtax of up to 30% on excess production.

French oil major Total and Norway's state oil firm Statoil
partner with Venezuela's state oil firm PDVSA on Sincor and have
announced plans to build a second upgrading project known as
Sincor II.

Total hopes to resume talks with Venezuela in the coming months
to build Sincor II but this will depend on the resolution of the
dispute over royalty payments for Sincor I, according to Total
president for exploration and production, Christophe de

Mr. De Margerie said Total has complied fully with its legal
obligations in the country but admitted the project had become
more profitable than expected, given that oil prices have soared
to almost US$65 per barrel against around US$15 when the deal
was signed.

"It seems only normal to go back to the negotiating table to
discuss how to share the spoils of high oil prices. We have had
talks with authorities in Venezuela and they want to negotiate
rather than imposing," he 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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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