TCRLA_Public/050914.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 14, 2005, Vol. 6, Issue 182



AGUAS ARGENTINAS: Spain's Agbar to Sell its Ownership
AGUAS ARGENTINAS: Government Pursues Consultative Role for Suez
ALTO PALERMO: Operating Income Doubles in FY 2005
COMPANIA ADMINISTRADORA: Trustee to Submit General Report
HIDROELECTRICA EL CHOCON: Moody's Assigns `Ba3' to $140M Bonds

LEON N. WEISSMAN: Court OKs Creditor's Bankruptcy Petition
NOTARIO S.A.: Proceeds With Liquidation
TURBINE POWER: Moody's Reaffirms 'D' Rating on $20M Bonds


LORAL SPACE: Skynet Enters Agreement with Telekom Austria


NET SERVICOS: Net Sul Seeks Noteholders' Consent
NET SERVICOS: UBS Lowers Rating to Neutral
USIMINAS: President Embroiled in Political Scandal
VARIG: Presents Recovery Plan to Rio de Janeiro Court
VARIG: USW Warns Brazilian Workers About MatlinPatterson


AES GENER: Local Ratings Agency Reaffirms BBB+ Rating


GRANAHORRAR: Sale Attracts Over 12 Local, International Buyers

D O M I N I C A N   R E P U B L I C

BANCO DOMINICANO: Fitch Ups Ratings Following Sovereign Upgrade


AOL LATIN AMERICA: Files Required Monthly Operating Reports
MINERA MEXICO: Moody's Upgrades Sr. Unsecured to Ba2
UNITED RENTALS: Reaches Agreement in Principle with Bondholders
UNITED RENTALS: Appoints Martin Welch as Interim CFO


BANISTMO: Fitch Leaves Ratings Unchanged

T R I N I D A D   &   T O B A G O

BWIA: Industry Associations Reiterate Airline's Importance


PARMALAT VENEZUELA: Counters Reports of Plants' Seizure
PDVSA: Contracts with Caribbean, South America to Cost $1.6B

     - - - - - - - - - -


AGUAS ARGENTINAS: Spain's Agbar to Sell its Ownership
Spanish water utility Aguas de Barcelona SA (Agbar) will divest
of its minority stake in Buenos Aires water utility Aguas
Argentinas SA. Spanish newspaper Cinco Dias suggested in its
Monday Internet edition that Agbar is gradually pulling out of
all of its Latin American operations.

Nevertheless, the move is seen related to French group Suez's
decision to pull out of Aguas Argentinas after it failed to
complete a difficult and drawn out negotiation of water rates
with the Argentine government.

Agbar holds a 25.01% stake in Aguas Argentinas while Suez owns
39.93%. Suez had given Argentina a 30-day ultimatum to the end
of last week to come up with an economically viable contract. It
announced on Friday that it would carry out the threat to leave.

AGUAS ARGENTINAS: Government Pursues Consultative Role for Suez
Argentina wants Suez to retain a technical role in Aguas
Argentinas to ensure a smooth transition when the French utility
proceeds with a plan to end its contract.

"What we're seeking is an Edenor-style solution," said Planning
Minister Julio De Vido.

Edenor was previously owned by Electricite de France, which
recently secured approval from Argentina's antitrust commission
- known in Spanish as the CNDC - to sell a 65% stake in the
local unit to investment fund Grupo Dolphin for US$100 million.
EdF, however, is keeping a 25% holding and providing technical
assistance for five years.

Suez announced its intention to pull out on Friday and will
recommend that Aguas Argentinas' board begin the formal
withdrawal process at a Sept. 19 meeting.

ALTO PALERMO: Operating Income Doubles in FY 2005
Alto Palermo S.A. (APSA) announced in a letter sent to the
Comision Nacional de Valores on September 7, 2005 that operating
income reached Ps. 82.1 million on fiscal year 2005, an increase
of 100.4%. Within the activities of the fiscal year the
following are worthy of mention:

- Operating income increased 100.4%, reaching Ps. 82.1 million
on fiscal year 2005, while the Company's net revenues increased

- During fiscal year 2005, the Company increased its interest in
Mendoza Plaza Shopping S.A. to an 85.4% controlling stake. The
Company also opened Alto Rosario, its ninth Shopping Center,
located in the City of Rosario, province of Santa Fe.

- At year-end, occupancy at the Company's shopping centers
reached 98.4%, while its tenants' sales increased 33.4%.

- During fiscal year 2005, the Company restructured a
significant portion of its financial debt, aligning maturities
to cash flow generation and obtaining substantial reductions in
the Company's annual financial cost through the reduction in
interest rates and extension in repayment terms.

As of year-end, the capital stock of the COMPANY is $78,042,363,
whose share structure is divided in 780,423,632 nominative non-
endorsable common shares of $0.10 par value each and each
entitled to 1 vote, according to the following detail:

- IRSA Inversiones y Representaciones Sociedad Anonima
     47,361,671      60.7  %

- Parque Arauco S.A.
     23,111,695      29.6  %

- Other Shareholders
     7,568,997      9.7  %

In addition, the Company informed that if all the note holders
exercise their right to convert their securities into shares at
year-end, the number of shares would amount to 214,543,274, all
of them nominative non-endorsable common shares of $0.10 par
value each and each entitled to 1 vote, according to the
following detail:

- IRSA Inversiones y Representaciones Sociedad AnĒnima
     138,990,034      64.8  %

- Parque Arauco S.A
     67,780,606            31.6  %

- Other Shareholders
     7,772,634             3.6  %

For this calculation, the conversion price considered was 1
divided by the exchange rate of the end of the period.

Furthermore, it is placed on record that the board is still
analyzing the policy on dividends and fees for the Board and
Supervisory Committee.

To see results of period ending June 30:

CONTACT: Alto Palermo S.A. (APSA)
         476 Hipolito Yrigoyen
         Buenos Aires
         Phone: +54 11 4344 4600
         Web site:

COMPANIA ADMINISTRADORA: Trustee to Submit General Report
Mr. Pablo Javier Kainsky, the trustee appointed by the court for
the Compania Administradora y Procesadora de Tarjetas S.A.
liquidation, will submit general report tomorrow, Sep. 15, 2005.

Mr. Kainsky verified creditors' claims until June 7, this year.
After that, he prepared the individual reports, which were
submitted in court on Aug. 3, 2005.

Buenos Aires' civil and commercial Court No. 16, with the
assistance of Clerk No. 31, declared Compania Administradora y
Procesadora de Tarjetas S.A. bankrupt after the Company failed
to pay its creditors.

CONTACT: Mr. Pablo Javier Kainsky, Trustee
         Reconquista 715
         Buenos Aires

HIDROELECTRICA EL CHOCON: Moody's Assigns `Ba3' to $140M Bonds
Moody's Latin America Calificadora de Riesgo S.A. assigned a
'Ba3' rating on US$140 million worth of bonds issued by
Hidroelectrica El Chocon S.A., Argentina's securities regulator,
the CNV, reported on its Web site.

The affected bonds, which matured on Feb. 19, 2004, are
described as "obligaciones negociables" and are classified as
`Simple Issue.'

The rating was given based on the Company's financial status as
of June 30, 2005. Obligations that are rated Ba3 are deemed to
have speculative elements and are subject to substantial credit

LEON N. WEISSMAN: Court OKs Creditor's Bankruptcy Petition
Leon N. Weissman e Hijos S.A. entered bankruptcy after Court No.
13 of Buenos Aires' civil and commercial tribunal approved a
bankruptcy motion filed by Fura S.R.L., reports La Nacion. The
Company's failure to pay its debt prompted the creditor to file
the proceeding.

Working with the city's Clerk No. 25, the court assigned Mr.
Carlos Yacovino as trustee for the bankruptcy process. The
trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claim to the
trustee before Oct. 10, 2005.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Leon N. Weissman e Hijos S.A.
         Juncal 4431
         Buenos Aires

         Mr. Carlos Yacovino, Trustee
         Jean Jaures 933
         Buenos Aires

NOTARIO S.A.: Proceeds With Liquidation
Ms. Viviana Melo successfully sought for the bankruptcy of
Notario S.A. after Court No. 12 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra," reports La

As such, Notario S.A. will now start the process with Mr.
Antonio Canada as trustee. Creditors must submit proofs of their
claim to the trustee by Nov. 11, 2005 for authentication.
Failure to comply with this requirement will mean a
disqualification from the payments that will be made after the
Company's assets are liquidated.

The city's Clerk No. 23 assists the court on the case that will
close with the sale of all of its assets.

CONTACT: Notario S.A.
         Lavalle 1459
         Buenos Aires

         Mr. Antonio Canada, Trustee
         Doctor Luis Belaustegui 4531
         Buenos Aires

TURBINE POWER: Moody's Reaffirms 'D' Rating on $20M Bonds
Moody's Latin America Calificadora de Riesgo S.A. reaffirmed its
'D' rating on US$20 million worth of corporate bonds issued by
Turbine Power Co. S.A., the CNV reported on its Web site.

The affected bonds, which matured on November 30, 2002, are
described as "obligaciones negociables garantizadas." The rating
was given based on the Company's financial status as of June 30,

Moody's assigns a 'D' rating on bonds that are in payment
default and have a poor prospect of repaying all obligations.

CONTACT: Turbine Power Co. S.A.
         Reconquista 656
         Buenos Aires
         Phone: 4315-3272/3273
         Fax: 4312-7707


LORAL SPACE: Skynet Enters Agreement with Telekom Austria
Loral Skynet announced Monday that it has reached an agreement
with Telekom Austria that completes the full initial
infrastructure rollout of its SkyReach IP-enabled communications
services. In accordance with the agreement, Loral Skynet will
install an iDirect IP hub at Telekom Austria's state-of-the-art
Aflenz teleport, expanding SkyReach's coverage area across
Europe, the Middle East and Africa. SkyReach customers across
the region will have access to regional and global private
networking and public Internet services, including broadband WAN
extension for terrestrial providers, Internet access for ISPs,
voice over IP (VoIP) and managed data services.

"The now global reach of this powerful and cost-effective
technology firmly establishes Loral Skynet as a leader in IP-
based integrated satellite and terrestrial communications
services," said Bernard L. Schwartz, chairman and CEO of Loral.
"Today's satellite communications companies need to offer much
more than just standard bandwidth-only services. They also must
provide the latest integrated platform services to deliver
complete solutions to enterprise and government customers. Since
it pioneered IP services over satellite nearly 15 years ago,
Loral Skynet has maintained its leadership role not just in the
satellite sector, but in the entire communications industry."

Loral Skynet's new European-based SkyReach hub will allow for
multiple points of connectivity through satellites spanning from
Europe to Asia and through terrestrial facilities. Skynet will
combine satellite capacity on its own Telstar 12 and Telstar 10
satellites, with other regional satellites to establish a
robust, far-reaching IP-based network. SkyReach's service in
Europe is now available using other teleport facility
partnerships. Full service on Skynet's hub at Telekom Austria's
Aflenz teleport will be available by December 2005.

SkyReach uses VSAT technology to deliver a full range of IP
applications, including Internet access, Voice over IP (VoIP),
streamed media, file transfers (FTP), Virtual Private Networks
(VPN), LAN connectivity and satellite-enabled WiFi services.
SkyReach services complement existing frame relay and MPLS
networks and enable efficient network management.

Through SkyReach, and coupled with its worldwide infrastructure
and installation Ground Operator (GO) partners, Loral Skynet is
one of the only satellite services company in the world that can
extend, install and maintain satellite-delivered IP connectivity
on a truly seamless and global basis. With its tiered SLAs
(service level agreements) and quality-of-service features,
SkyReach enables a natural extension of terrestrial MPLS systems
and a platform for multicast and broadcast video requirements.
Loral Skynet provides its SkyReach global IP service through
hubs at facilities in North America, Europe and Asia, each with
access to major satellite and terrestrial communications

A pioneer in the satellite industry, Loral Skynet delivers the
superior service quality and range of satellite solutions that
have made it an industry leader for more than 40 years. Through
the broad coverage of the Telstar satellite fleet, in
combination with its hybrid VSAT/fiber global network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration. Headquartered in Bedminster, New
Jersey, Loral Skynet is dedicated to providing secure, high-
quality connectivity and communications.

In addition to being the parent company of Loral Skynet, Loral
Space & Communications is a world-class leader in the design and
manufacture of satellites and satellite systems for commercial
and government applications through its Space Systems/Loral

CONTACT: Loral Skynet
         John McCarthy
         Phone: 1-212-338-5345



NET SERVICOS: Net Sul Seeks Noteholders' Consent
Net Servicos de Comunicacao S.A. ("Net") announced today that
its wholly-owned subsidiary Net Sul Comunicacoes Ltda. ("Net
Sul") is commencing a solicitation of consents (the "Consent
Solicitation") from holders of Net Sul's 7.0% Senior Secured
Notes due 2009 (the "Fixed Rate Notes") and Senior Secured
Floating Rate Notes due 2009 (the "Floating Rate Notes" and,
together with the Fixed Rate Notes, the "Notes"). The Consent
Solicitation is being made upon the terms and is subject to the
conditions set forth in a consent solicitation statement dated
September 12, 2005 (the "Consent Solicitation Statement") to be
distributed to all holders of record as of 5:00 p.m., New York
City time, on September 9, 2005.

The purpose of the Consent Solicitation is to (i) amend the
indenture under which the Notes were issued (the "Indenture") to
eliminate or modify substantially all of the restrictive
covenants and certain other provisions contained in the
Indenture that can be amended with the consent of not less than
two-thirds of the holders of the outstanding Notes (the
"Proposed Amendments") and (ii) release all of the collateral
securing the obligations of Net Sul, Net and the other
guarantors under the Notes and the Indenture (the "Collateral

Consummation of the Consent Solicitation is subject to, among
other things, Net Sul receiving valid and unrevoked consents
representing at least two-thirds in aggregate principal amount
of the Notes outstanding (the "Requisite Consent") and to the
satisfaction of certain other conditions described in the
Consent Solicitation Statement. Adoption of the Collateral
Release requires the consent of holders of at least 85% in
aggregate principal amount of Net's outstanding senior secured
indebtedness (the "Collateral Release Requisite Consent"). The
receipt of the Collateral Release Requisite Consent is not a
condition to the consummation of the Consent Solicitation.

For the Proposed Amendments and the Collateral Release to become
operative, among other things, Net Sul must deposit in an escrow
account held by Net Sul in Brazil (the "Early Prepayment
Account"), an amount (the "Early Prepayment Deposit") (in reais,
calculated using the exchange rate in effect on the date of such
deposit) equal to the outstanding principal amount of the Notes,
plus all interest thereon that will accrue, compounded
quarterly, to the Vesting Date (which is currently expected to
occur on April 5, 2006), minus the aggregate amount of interest
to be generated from the funds on deposit in the Early
Prepayment Account. The Early Prepayment Deposit in the Early
Prepayment Account will be pledged in favor of holders of the
Notes. The Notes will be prepaid in full, with interest, on the
business day immediately following the Vesting Date.

If the Requisite Consent is received and not validly revoked on
or prior to 5:00 p.m., New York City time, on September 23,
2005, unless otherwise extended (the "Consent Date"), and the
conditions to the Consent Solicitation have been satisfied or
waived by Net Sul, holders who validly provide consents to the
Proposed Amendments and the Collateral Release prior to the
Consent Date, will be eligible to receive a consent payment (the
"Consent Fee"). The Consent Fee will equal US$10.00 in cash for
each US$1,000 in principal amount of Notes multiplied by a
scaling factor with respect to which consents are received and
not revoked on or prior to the Consent Date. The scaling factor
for each Note is calculated as of September 12, 2005 to reflect
the prepayment of US$2,523,842.15 aggregate principal amount of
Fixed Rate Notes and US$752,149.29 aggregate principal amount of
Floating Rate Notes made by Net Sul on June 15, 2005. As of
September 12, 2005, the scaling factor equaled 0.92233.

Deutsche Bank Securities Inc. is acting as solicitation agent in
connection with the Consent Solicitation. Questions regarding
the Consent Solicitation and the procedures for consenting
should be directed to Deutsche Bank Securities Inc., attention:
Liability Management Group at +1 212 250-2955 (collect) or +1
866 627-0391 (US toll-free)).

Deutsche Bank Securities Inc. has advised Net Sul that its
affiliate Deutsche Bank AG London Branch is the beneficial owner
of approximately 47% of the aggregate principal amount of
outstanding Notes. Consents to the Proposed Amendments and the
Collateral Release are being solicited from Deutsche Bank AG
London Branch.

Global Bondholder Services Corporation is acting as the
tabulation agent and information agent in connection with the
Consent Solicitation. Requests for documentation should be
directed to Global Bondholder Services Corporation at + 1 866
294-2200 (toll free) or 1 212 430-3774 (banks and brokers).

This announcement is not an offer to purchase, a solicitation of
an offer to purchase or a solicitation of consent with respect
to any Notes. The Consent Solicitation is being made by the
Consent Solicitation Statement, copies of which are available
from the information agent.

CONTACT:  Net Servicos de Comunicacao S.A.
          Investor Relations
          Tel: +011-5511-2111-2811

NET SERVICOS: UBS Lowers Rating to Neutral
UBS Investment Research slashed its rating on Brazilian cable TV
operator NET Servicos de Comunicacao SA (NETC) to neutral from
buy, reports Dow Jones Newswires. UBS said the Company's share
price has risen 72% in the last 45 days, and the recent rally
left little room for an upside potential.

In addition, Net Servicos is trading at a 23% discount to its
U.S. and European peers, "which, in our view, isn't enough to
compensate for the higher Brazil risk and the less favorable
competitive environment," UBS said.

USIMINAS: President Embroiled in Political Scandal
A top-ranking official at Brazilian steel maker Usiminas is
expected to be called to testify before a congressional
investigative panel on allegations that he made illegal campaign
donations. According to the Sunday edition of O Globo newspaper,
Usiminas' president, Rinaldo Campos Soares, was identified in
testimony by three different congressmen as providing illegal
donations to their campaigns.

The three congressmen testified they received a total of
BRL850,000 from Soares via a public relations firm run by Marcos
Valerio de Souza. Souza is the advertising executive accused of
running an illegal campaign finance program for President Luiz
Inacio Lula da Silva's Workers' Party.

In testimony published on the Brazilian Senate Web site, Rep.
Roberto Brant said he received BRL102,812 from Usiminas through
the public relations firm.

VARIG: Presents Recovery Plan to Rio de Janeiro Court
Ailing Brazilian airline, Viacao Aerea Rio-Grandense SA (Varig),
presented its restructuring plan to a Rio de Janeiro state judge
Monday. Under the plan, the Ruben Berta Foundation, which owns
56% of Varig, is expected to give up its majority stake in the

To dilute shareholdings, and to make the Company more attractive
to outside investors, the restructuring plan sees a break-up of
Varig into two separate companies, one of which would likely
encompass most of Varig's current operational units plus two
regional airline subsidiaries, Rio Sul and Nordeste.

The second company would include Varig's main administrative
units and would manage the Company's debts and debt

Debt management would include a pending suit by Varig against
the federal government for some BRL2 billion in lost income from
price control programs in the 1980s and 1990s.

After the debt issues are resolved, the two companies will be
merged, possibly within two years, Varig said.

Varig also plans to cut 13% of its 12,000-person work force by
the end of 2006 in an effort to save about US$168 million

The airline said it will go ahead with the sale of its logistics
arm, called VarigLog, to U.S. group Matlin Patterson for US$38
million in cash plus US$65 million to be paid from VarigLog
receipts later.

Varig said the sale of VarigLog will help solve the airline's
immediate cash-flow needs.

Varig said its efforts to cut staff, streamline operations and
increase sales will yield additional annual revenue of US$307

With the proposed restructuring, Varig has "the potential to
break even in 2005," Varig President da Cunha, said at a press

"We have a solid international network and room to grow," da
Cunha said. "Concrete restructuring measures can be implemented

Varig, which filed for bankruptcy protection on June 17, has 120
days to get the creditor committee to approve the plan,
according to Charles Gruenberg, a bankruptcy lawyer in Sao
Paulo. Creditors have 30 days to say whether they have any
objection to the plan, he added.

Meanwhile, on Monday in New York, U.S. Bankruptcy Judge Robert
Drain extended an order barring creditors from going after
Varig's assets while it reorganizes in Brazil, a lawyer for the
company said. A company that had leased Varig 11 jets for an
undisclosed amount wanted the ban lifted.

VARIG: USW Warns Brazilian Workers About MatlinPatterson
The United Steelworkers (USW) said that the Union is cooperating
with the Central Unica dos Trabalhadores (CUT) of Brazil and
sharing information about the anti-worker practices of US-based
investment fund MatlinPatterson, a so-called "vulture" fund that
is awaiting permission from a Brazilian bankruptcy court to
purchase a subsidiary of the Brazilian airline Varig.

"Thanks to MatlinPatterson, thousands of our members have been
forced into the street or robbed of their health insurance and
pension benefits," said David McCall, Director of USW District
1. "We do not believe our sisters and brothers in Brazil will
fare any better if MatlinPatterson has its way."

In June, Varig filed for bankruptcy protection in both Brazilian
and US courts. Late last month, the company announced the sale
of its cargo subsidiary, VarigLog, to MatlinPatterson for a
reported $38 million. The sale must be approved by a bankruptcy
court in Rio de Janeiro before it becomes official.

The USW is sharing information with the CUT about the harm
MatlinPatterson has inflicted on workers at Ormet Corporation
and Huntsman Corporation, two US-based companies that fell into
the hands of MatlinPatterson after both companies faced
financial problems. The fund specializes in distressed investing
situations and still holds a controlling interest in both Ormet
and Huntsman.

Led by co-founders David Matlin and Mark Patterson,
MatlinPatterson has raised nearly $4 billion since spinning out
of Credit Suisse First Boston in 2002.

At Ormet, about 1,300 workers have been on strike against unfair
labor practices since November 2004 at two aluminum mills in
Hannibal, Ohio. At Huntsman, hundreds of workers have suffered
layoffs, job combinations and cuts to health insurance and
pensions since MatlinPatterson took over.

McCall said that the USW is considering further steps it can
take to support Varig workers, including sending a delegation of
USW members affected by MatlinPatterson's investment and
management practices to Brazil and other expressions of
international solidarity.

"Too many jobs have been sacrificed already for the greed of
David Matlin, Mark Patterson and their partners," Mr. McCall
said. "Our Union will not rest until MatlinPatterson gets the
message that we will not back down or go away."

CONTACT: United Steelworkers
         Jon Vandenburgh


AES GENER: Local Ratings Agency Reaffirms BBB+ Rating
Feller Rate, a local credit rating agency, reaffirmed its
solvency rating on local power generator AES Gener at BBB+ with
a stable outlook, reports Business News Americas. The rating
reflects the successful implementation of AES Gener's financial
restructuring plan during 2004, which slashed the Company's
consolidated debt by some US$300 million as well as extend a
number of maturities.

But the ratings agency noted that the exposure of Electrica
Santiago (Essa), a local unit of AES Gener, to natural gas
export restrictions from Argentina, also influenced the rating.

Essa's 380MW Nueva Renca gas-fired plant suffered gas
restrictions of over 50% in the first half of this year, forcing
the Company to switch to more expensive diesel fuel and buy gas
through swap agreements with Argentine generators.

AES Gener shares continue to be rated first class level 4.

AES Gener is the second-largest electricity-generation group in
Chile in terms of operating revenue and generating capacity with
an installed capacity of 2,428 MW, composed of 2,157 MW of
thermal and 271 MW hydro generating capacity. The company is
98.79% owned by AES.


GRANAHORRAR: Sale Attracts Over 12 Local, International Buyers
The privatization of state-run mortgage lender Granahorrar has
drawn interests from more than 12 local and international
groups, reports Business News Americas.

"While we can't say who directly is interested, there are some
big international and domestic players involved," Business News
Americas quoted an official at the country's deposit insurance
fund Fogafin as saying. "We always expected a lot of interest
due to Granahorrar's size, so it is really not a surprise," the
Fogafin official added.

Fogafin has been preparing Granahorrar, which it saved from
bankruptcy in the late 1990s, for privatization by diversifying
its income and putting in the loan portfolio in order.

The privatization of Granahorrar is two-fold. The first stage,
during which the bank's employees and cooperatives can purchase
shares in the bank, opened in August and will close until mid-
October. After that, a new process will be opened to private
companies and investors.

According to estimates, the sale of Granahorrar could bring in
as much as COP438 billion (US$189 million).

D O M I N I C A N   R E P U B L I C

BANCO DOMINICANO: Fitch Ups Ratings Following Sovereign Upgrade
Fitch Ratings, the international rating agency, upgraded Banco
Dominicano del Progreso's (BDP) long-term foreign currency
rating to 'B-' (Outlook Stable) from 'CCC+' and the short-term
foreign currency rating to 'B' from 'C'. At the same time, the
bank's individual 'D/E' and support '5' ratings were affirmed.
Long- and short-term local currency ratings of 'B-' and 'B',
respectively, were assigned for the first time. The bank's
national long-term rating was upgraded to 'BBB+(dom)' from
'BBB(dom)' and the national short-term rating upgraded to
'F2(dom)' from 'F3(dom)'.

The upgrades reflect the recent sovereign rating upgrade and the
adequate performance of the bank following the severe
deterioration of the operating environment during 2003 and 2004.
BDP ratings reflect its stable asset quality and adequate
liquidity ratios. The ratings also reflect the constraints
imposed by a narrower net interest margin and heavy overheads
and its tight capital levels, similar to most of its peers

In light of the severe deterioration in the operating
environment during 2003 and 2004, BDP implemented a proactive
credit collections policy to reduce its credit risk, while the
sudden Dominican Peso (DOP) revaluation since the second half of
2004 resulted in a 22% reduction in the gross loan portfolio. At
the end of March 2005, the bank's past-due to total loans ratio
was a high 7.1%, a level similar to its peer average. At that
date, loan loss reserve coverage was 139%, boosted by a
significant increase in loan loss provisions during 2003 and
2004. After more than doubling its deposit base in 2003, the
bank was successful in maintaining its market share. This
strategy coupled with weak loan demand and the aforementioned
collections policy resulted in a significant increase of its
cash and securities portfolio, which together accounted for 51%
of total assets at the end of 2004. This increase resulted in an
increase of the bank's exposure to government debt (mostly
Central Bank short- and medium-term CDs), representing 1.2 times
(x) the bank's equity, similar to its competitors but considered
high in view of the low sovereign rating (long-term local
currency rated 'B' by Fitch)

As of March 2005, BDP ranked fourth out of 12 commercial banks,
with a 10% market share by total assets. BDP remains the
exclusive issuer and acquirer of American Express cards in the
Dominican Republic; this position has allowed it to develop a
private banking business. BDP is controlled by a number of well
known families in the Dominican Republic that also have
interests in other financial entities involved in insurance,
stock brokerage, factoring, and leasing. BDP's shareholders also
own 30% of BBVA Crecer AFP, a pension fund administrator, in
conjunction with Spain's Banco Bilbao Vizcaya Argentaria, which
holds the remaining 70% stake.

CONTACT:  Franklin Santarelli +5821 2286 3232, Caracas
          Carlos Fiorillo +5821 2286 3232, Caracas
          Gustavo Lopez +1-212-908-0853, New York

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


AOL LATIN AMERICA: Files Required Monthly Operating Reports
America Online Latin America, Inc. (AOLA) and its subsidiaries
AOL Puerto Rico Management Services, Inc., America Online
Caribbean Basin, Inc. and AOL Latin America Management LLC filed
on September 6 and 12, 2005 their consolidated monthly operating
reports for June and July 2005, respectively, with the United
States Bankruptcy Court for the District of Delaware.

As previously reported, AOLA and the above-listed debtor-in-
possession subsidiaries filed voluntary petitions ("Bankrupcty
Petitions") for relief under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware on June 24, 2005.

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

MINERA MEXICO: Moody's Upgrades Sr. Unsecured to Ba2
Approximately US$346 Million of Notes Upgraded

Moody's Investors Service upgraded the ratings on Minera Mexico
S.A. de C.V.'s guaranteed senior notes to Ba2 from B1. In a
related rating action, Moody's withdrew the B1 Issuer Rating.
The rating outlook is stable.

The upgrade reflects the significant reduction in debt at Minera
Mexico following the repayment of the $480 million outstanding
under its bank credit facility with proceeds from the recent
note issuance by its parent, Southern Peru Copper Corporation
(SPCC). The Ba2 rating reflects the improved financial profile
and debt protection measures that results from the lower
leverage at Minera Mexico as well as the company's strengthened
operating and cash flow performance reflective of the strength
in global copper markets. Minera Mexico's debt as of June 30,
2005, was $827 million, including $480 million of intercompany
loans from SPCC. At the same time the rating considers ongoing
cost pressures due to higher input costs such as energy, and
increased worker profit sharing payments in Mexico. Other
factors reflected in the rating include the potential for higher
than anticipated capital expenditures to improve operational
efficiency and maintain the company's production profile, as
well as the potential for aggressive dividend payment
requirements by SPCC or its parent, Grupo Mexico.

The stable outlook reflects Moody's expectation that the
favorable copper market fundamentals will continue over the next
12 months providing Minera Mexico with a stronger earnings base
and cash flow generation than in recent years. The outlook also
anticipates that Minera Mexico will continue to delever, thereby
further strengthening its overall financial standing. Moody's
would consider an upgrade to the rating should Minera Mexico
continue to demonstrate a disciplined approach to the use of
debt in its capital structure, a more sustainable track record
of consistency of earnings performance and should excessive
dividends not be paid relative to reinvestment and debt
retirement obligations. A negative outlook or downward rating
change could be considered should continued margin compression
exist on a higher cost base in a declining copper price market
or should the company consistently be unable to cover its
investment requirements from cash generated from operation.
Substantive dividend payouts that would reduce financial
flexibility could also pressure the outlook or rating.

In April 2005, SPCC acquired the operations of its sister
company, Minera Mexico, from its controlling shareholder,
Americas Mining Corporation, a subsidiary of Grupo Mexico S.A.
de C.V. SPCC itself is 75% owned by Grupo Mexico, with the
balance held publicly. Minera Mexico holds SPCC's copper mining
and smelting operations in Mexico. From its two open pit mines,
Cananea and La Caridad, as well as its smaller underground
operations, Minera Mexico shipped approximately 700 million
pounds of copper in 2004. On a combined pro-forma basis, this
represented approximately 45% of SPCC's total shipments.
Importantly, Minera also has a strong reserve position. Based on
a copper price of $0.94/lb, Minera's 23 million tonnes of
reserves at year-end 2004 made up 52% of the consolidated
overall reserve base.

SPCC reports limited financial information on Minera Mexico as
it is now fully consolidated in SPCC's results. However, segment
reporting for the six-months ended June 30, 2005 shows SPCC's
Mexican operations' operating income advancing 21% year-over-
year to $341 million on higher shipments, higher realized
pricing and by-product credits, primarily molybdenum.
Nevertheless, the pressure of higher fuel and power costs
contributed to reduced margins, an operating environment Moody's
expects will continue to affect performance for some time.

Ratings upgraded are:

   i)  to Ba2 from B1, US$222 million Series A guaranteed Senior
       Notes due 2008

   ii) to Ba2 from B1, US$125 million Series B guaranteed Senior
       Notes due 2028

Minera Mexico, headquartered in Mexico City, Mexico had fiscal
2004 revenues of US$1.4 billion.

UNITED RENTALS: Reaches Agreement in Principle with Bondholders
United Rentals, Inc. (NYSE: URI) announced Monday that it has
reached an agreement in principle with the steering committee of
an ad hoc committee representing holders of the company's 6 1/2%
Senior Notes due 2012, 7 3/4% Senior Subordinated Notes due 2013
and 7% Senior Subordinated Notes due 2014 (collectively the
"Nonconvertible Notes") and with representatives of an ad hoc
group representing holders of the company's 1 7/8% Convertible
Senior Subordinated Notes due 2023 (the "Convertible Notes") on
improved terms to the consent solicitations relating to the
company's outstanding notes and QUIPs securities. The company
has been advised that the ad hoc committee representing the
Nonconvertible Noteholders consists of approximately 60
financial institutions that collectively hold an aggregate of
more than $1.4 billion of the three issues of the Nonconvertible
Notes and more than 50% of the principal amount of each issue of
the Nonconvertible Notes. In addition, the representatives of
the ad hoc group of Convertible Noteholders have advised the
company that the members of their group collectively own more
than 50% of the outstanding principal amount of the Convertible
Notes. As previously disclosed, the proposed amendments would,
among other things, allow the company up until March 31, 2006 to
regain compliance with the requirement to make timely SEC

Based on the understanding with the representatives of the
various bondholder groups, the company is improving the terms of
its offer to holders, as follows:

-- for the company's 6 1/2% Senior Notes due 2012, 7 3/4% Senior
Subordinated Notes due 2013 and 7% Senior Subordinated Notes due
2014, the company will pay a consent fee of $16.25 per $1,000
principal amount of notes for which consent is provided;

-- for the QUIPs securities, the company will pay a comparable
consent fee of $0.8125 per $50 of liquidation preference of such
securities for which consent is provided; and

-- for the company's 1 7/8% Convertible Senior Subordinated
Notes due 2023, the conversion rate of the Convertible Notes
will be increased from 38.9520 to 44.9438 shares of United
Rentals' common stock for each $1,000 principal amount of
Convertible Notes.

The company will also provide certain items of unaudited interim
operating financial information on a monthly and quarterly basis
during the term of the waiver, including revenues, capital
expenditures, cash flow from operations, liquidity, and
outstanding debt.

Approval of the proposed amendments and waiver will require the
consent of holders of not less than a majority of the principal
amount of each issue of the company's outstanding Nonconvertible
Notes, Convertible Notes and QUIPs securities.

Wayland Hicks, chief executive officer said, "We are pleased to
have reached this understanding with representatives of the
various bondholder groups. We continue to focus on resolving
expeditiously issues associated with the SEC inquiry and driving
strong operating performance."

The company is extending the expiration date for the consent
solicitations to 5:00 p.m., New York City time, on Monday,
September 19, 2005.

The solicitations are subject to certain conditions, and present
certain risks for holders who consent, as set forth more fully
in the consent solicitation statements. These documents contain
important information, and holders should read them carefully
before making any decision. This announcement is not a
solicitation of consents with respect to any securities. The
solicitations are being made solely by the consent solicitation
statements. In any jurisdiction where the laws require
solicitations to be made by a licensed broker or dealer, the
solicitations will be deemed to be made on behalf of United
Rentals by the Solicitation Agent, or one or more registered
broker dealers under the laws of such jurisdiction.

Credit Suisse First Boston is the Solicitation Agent for the
solicitation, and MacKenzie Partners is the Information Agent.
Copies of the Consent Solicitation Statements, Consent Forms and
related documents may be obtained at no charge by contacting the
Information Agent by telephone at (800) 322-2885 (toll free) or
(212) 929-5500 (call collect), or in writing at 105 Madison
Avenue, New York, NY 10016. Questions regarding the solicitation
may be directed to: Credit Suisse First Boston, Eleven Madison
Avenue, New York, NY, 10010, U.S. Toll Free: (800) 820-1653,
Call Collect: (212) 325-7596, Attn: Liability Management Group.

Additional information is included in the Form 8-K filed today.

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.
Additional information about United Rentals is available at

CONTACT: United Rentals, Inc.
         Chuck Wessendorf
         Tel: 203-618-7318

         Alfred Colangelo
         Tel: 203-618-7141

UNITED RENTALS: Appoints Martin Welch as Interim CFO
United Rentals, Inc. (NYSE:URI) announced Monday that it has
appointed Martin E. Welch as interim chief financial officer,
effective immediately. Mr. Welch has spent more than three
decades in financial management for public and private
companies. His reputation is that of an accomplished leader
capable of establishing strong finance organizations and
effective financial controls.

Wayland Hicks, chief executive officer, said, "The appointment
of Marty Welch as interim CFO provides our company with strong
financial leadership. He will play a crucial role in our
organization as we continue to work expeditiously to complete
our financial statements for 2004 and the first half of 2005.
His proven track record as an effective executive with extensive
financial experience will allow him to contribute immediately."

Mr. Welch will serve in this interim capacity while the company
proceeds to fill the position left vacant by the termination of
president and chief financial officer John N. Milne in August.

Mr. Welch most recently served as director and business advisor
to the private equity firm, York Management Services. Mr. Welch
joined Kmart Corporation as chief financial officer in 1995 and
served in that capacity until 2001. During that time, he was
instrumental in restructuring the company's balance sheet and
strengthening all aspects of the financial operations, including
the successful redeployment of financial resources in support of
company goals.

Mr. Welch served as chief financial officer for Federal-Mogul
Corporation from 1991 until 1995. He held various finance
positions at Chrysler Corporation from 1982 to 1991, including
chief financial officer for Chrysler Canada.

Mr. Welch began his career in 1970 at Arthur Young (now Ernst &
Young), and is a certified public accountant. He currently
serves on the boards of York portfolio companies Northern Group
Retail Ltd. and Popular Club Plan. He holds a Bachelor of
Science degree in accounting and a Masters of Business
Administration in finance, both from the University of Detroit


BANISTMO: Fitch Leaves Ratings Unchanged
Fitch Ratings affirmed the ratings assigned to Primer Banco del
Istmo and Subsidiarias as follows: long and short-term foreign
currency ratings 'BB+'/'B', individual 'C/D' and support '5'.
The Rating Outlook on the long-term rating is Stable.

The ratings reflect the bank's strong franchise, experienced
management team, and its improving financial indicators,
including its capital ratios. The ratings also factor the
greater systemic risks of the countries into which it has
expanded relative to Panama, the participation of which will
likely rise as the bank continues to build a Central American

Banistmo, formerly Banco del Istmo, was established in 1984 and
became Panama's largest private bank in 2000 with its
acquisition of Primer Banco del Ahorros (end-2004 domestic
deposit market share: 17.5%). Banistmo is controlled by eight
prominent local families, who held a 61.85% stake at end-2004
and the remainder is widely held. Banistmo operates as a
universal bank in Panama and its main foreign markets.

Banistmo also remains focused on further developing its regional
franchise, which currently include Corporacion Banex (Costa
Rica), Banco Grupo el Ahorro Hondureno (BGA) and Compania de
Seguros El Ahorro Hondureno (CSA) (Honduras), Banistmo Colombia
(Colombia) and Banistmo Nicaragua (Nicaragua).

CONTACT:  Linda Hammel +1-212-908-0303
          Peter Shaw +1-212-908-0553, New York

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

T R I N I D A D   &   T O B A G O

BWIA: Industry Associations Reiterate Airline's Importance
Three key hotel and travel industry associations are against the
closure of financially ailing airline BWIA and have expressed
full support for the airline to continue functioning, the
Trinidad Express reports.

The associations, which include the Trinidad Hotels, Restaurants
and Tourism Association, the Trinidad and Tobago Incoming Tour
Operators Association and the Travel Agents Association of
Trinidad and Tobago, said Monday that BWIA is critically
important to Trinidad and Tobago and to the wider Caribbean.

They believed that BWIA has the potential to play a major role
in Trinidad and Tobago's economic development.

According to the associations, BWIA's closure could lead to an
automatic loss of slots in Heathrow Airport, London, which is
"pure golf" in the airline industry.

It might also result in a loss of certain route rights as well
as a loss of market share when it comes to major events such as
international conferences, sporting and other events.

The associations, however, recognize the need for total revamp
in BWIA's present system of operations particularly in the
financing, the management, operating philosophy and the
structure of the airline.

"If BWIA is successfully managed and operated, it could provide
a massive boost to Trinidad and Tobago's tourism aspirations and
its potential for new hotel construction, short-term and
permanent job creation and the development of conference
business that would be a natural and very lucrative adjunct of
the ACS and FTAA headquarters in Port of Spain," the
associations said.

The Government is expected to announce its decision shortly
regarding the future of the financially ailing national airline.

         Phone: + 868 627 2942
         Home Page:


PARMALAT VENEZUELA: Counters Reports of Plants' Seizure
Parmalat de Venezuela, a unit of cash-strapped Italian dairy
producer Parmalat Finanziaria S.p.A., denied reports that its
plants have been seized by the National Union of Venezuelan
Workers (UNT - Union Nacional de Trabajadores Venezolanos),
according to a LANS report.

In a communique, Parmalat said: "the announcement made by UNT
coordinator Marcela Maspero, about two of the facilities located
in Machiques and Barquisimeto were illegally occupied by this
organization are false."

Parmalat's communique was issued a few days after Venezuelan
military seized a Heinz Ketchup plant in the Monagas state.
Heinz company representatives complained that the seizure
represented, "a violation of property rights and free trade as
well as due process."

The move comes at a time that the Chavez government is
investigating over 700 closed enterprises, evaluating them for
their suitability for worker takeovers, via expropriation.

Workers at many other factories and businesses have begun taking
matters in their own hands, not waiting for the government to
act in the expropriation of idle factories.

Ms. Maspero said that the UNT is considering the takeover of 800
closed businesses.

"Accompanied by the communities, we will occupy these businesses
because we cannot continue to allow that the reactivation of the
country's productive apparatus is diminished due to the closure
of businesses," said Ms. Maspero.

Ms. Maspero also said that the UNT would ask Venezuela's
National Assembly to declare these businesses of "public
utility," a necessary step prior to the government's
expropriation of privately owned businesses. Ms. Maspero
estimates that up to 20,000 jobs could be rescued via such

According to Ms. Maspero there are currently eight businesses in
Venezuela that workers have occupied, to which belongs the Heinz
plant in Monagas.

Others include Probamasa, a corn processing plant owned by the
food and beverage company Polar; a plant belonging to the dairy
company Parmalat, in Machiques; Parmalat in Barquisimeto;
Sideroca Proacero in Cabimas; the valve factory Inveval in Los
Teques; the paper plant Invepal in MorĒn; and the meat-packing
company Fribarsa in Barinas. Only two of these, Inveval and
Invepal, have completed the full legal procedure for turning the
plants over to the workers.

"First we occupy and then we resolve the issue of ownership, as
there is always a reason for the occupation," Ms. Maspero said.

PDVSA: Contracts with Caribbean, South America to Cost $1.6B
Venezuela's accords to sell crude and products under special
financing conditions to Caribbean and South American countries
will cost state oil firm Petroleos de Venezuela (PDVSA) US$1.6
billion in lost revenues this year, Business News Americas

The Venezuelan government has agreed to sell about 280,000
barrels a day (b/d) of crude and products under the PetroCaribe
and PetroSur regional energy integration agreements, up from the
100,000b/d sold under such agreements in 2004.

President Hugo Chavez signed nine bilateral energy cooperation
contracts with members of PetroCaribe, including the Dominican
Republic, to supply a total 77,300b/d of crude and products last

Under the terms of the PetroCaribe agreements, countries can
finance up to 50% of their oil bills for 25 years.

Venezuela currently exports about 2.5 million barrels of crude a
day, 57% of which goes to the US. The 300,000b/d or so from the
PetroCaribe and PetroSur agreements represent more than 10% of
total exports.

PDVSA had lost, by the end of August, US$859 million through
agreements to sell crude to Argentina, Cuba, Uruguay and
Paraguay. Estimated lost revenues are based on funding up to 25%
of oil bills for 15 years and a grace period of two years.


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.

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