TCRLA_Public/050919.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, September 19, 2005, Vol. 6, Issue 185

                            Headlines


A R G E N T I N A

FERRELEC CONSTRUCCIONES: Reorganization Plan Set for Creditors
GATIPRINT S.A.: Individual Report to be Presented Sep. 20
JORSIN S.R.L.: Trustee to Submit Report on Company Liquidation
NEOFONE DIGITAL: General Report Due for Submission Sep. 20
TRANSENER: Renegotiates Contract With Government

ZEITEK S.A.: General Report Deadline Approaches


B A H A M A S

KERZNER INTERNATIONAL: Moody's Assigns B2 to Gtd Sr. Sub Notes


B E R M U D A

ANNUITY & LIFE: Enters Purchase Agreement with Overseas Partners


B O L I V I A

AGUAS DEL ILLIMANI: Regulator Prepares Audit Guidelines


B R A Z I L

BANCO DO NORDESTE: S&P Affirms Current Ratings
CELPE: Appeals Court Authorizes Rate Hikes
GENERAL MOTORS: Considers Sending 600 Workers Home
GERDAU S.A.: Issues $600M Guaranteed Perpetual Senior Notes
NET SERVICOS: Upgraded to Overweight by Morgan Stanley


E C U A D O R

* ECUADOR: Reaffirms Intent to Meet Debt Payment Schedule


E L   S A L V A D O R

* EL SALVADOR: Sovereign Credit Ratings Affirmed; Outlook Stable


J A M A I C A

KAISER ALUMINUM: Court OKs Voting Protocol Revision


M E X I C O

ASARCO: Proposal Undermines Bankruptcy Reorganization Effort
CINTRA: Reveals New Timetable on Airlines' Privatization
DESARROLLADORA HOMEX: S&P Rates $200M Notes 'BB-'
SATMEX: Concurso Mercantil Launced
SICARTSA: Workers End Strike After Accepting Revised Offer

TV AZTECA: ADR Exchange Period Expires


V E N E Z U E L A

ALIMENTOS POLAR: Condemns Seizure of Storage Facilities


     - - - - - - - - - -


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

FERRELEC CONSTRUCCIONES: Reorganization Plan Set for Creditors
--------------------------------------------------------------
Ferrelec Construcciones S.A., a company operating in Rio IV,
will propose a settlement plan to its creditors in an
informative assembly on Oct. 13, 2005. The assembly is the last
phase of the reorganization.

Infobae relates that the Company began reorganization
proceedings after the city's civil and commercial Court No. 3
granted its petition for "concurso preventivo".


GATIPRINT S.A.: Individual Report to be Presented Sep. 20
---------------------------------------------------------
The individual claims of creditors against bankrupt company
Gatiprint S.A. will be presented in court tomorrow, Sep. 20,
2005. The claims underwent verification, which ended on June 28,
2005.

Court No. 7 of Buenos Aires' civil and commercial tribunal
declared Gatiprint S.A. bankrupt.

Mr. Jorge Stanislavsky serves as trustee on this case.

The city's Clerk No. 14 assists the court on this case.

CONTACT: Mr. Jorge Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires


JORSIN S.R.L.: Trustee to Submit Report on Company Liquidation
--------------------------------------------------------------
Mr. Pedro Luis Santamaria, the trustee appointed by the court
for the Jorsin S.R.L. liquidation, will submit the general
report in court tomorrow, Sep. 20, 2005. Mr. Santamaria verified
creditors' proofs of claims until June 14, 2005. The validated
claims were presented in court as individual reports on Aug. 9,
2005.

Buenos Aires-based Jorsin S.R.L. began liquidating its
assets following the liquidation pronouncement issued by Court
No. 9 of the city's civil and commercial tribunal.

The bankruptcy process will end with the sale of the Company's
assets. Proceeds from the sale will be used to repay the
Company's debts.

CONTACT: Jorsin S.R.L.
         Escalada 1360
         Buenos Aires

         Mr. Pedro Luis Santamaria, Trustee
         Lavalle 1430
         Buenos Aires


NEOFONE DIGITAL: General Report Due for Submission Sep. 20
----------------------------------------------------------
The submission of the general report on the bankruptcy of Buenos
Aires-based Neofone Digital S.R.L. will be tomorrow, Sep. 20,
2005. The Company began liquidating its assets after Court No.
20 of the city's civil and commercial tribunal declared the
Company bankrupt. The bankruptcy process will commence under the
supervision of court-appointed trustee Roberto L. Sapollnik.

Mr. Sapollnik reviewed claims forwarded by the Company's
creditors until June 10, 2005. After claims verification, the
trustee submitted the individual reports for court approval on
Aug. 8, 2005.

Clerk No. 40 assists the court on this case.

CONTACT: Mr. Roberto L Sapollnik, Trustee
         Parana 851
         Buenos Aires


TRANSENER: Renegotiates Contract With Government
------------------------------------------------
A renegotiated contract for power transporter Transener passed
through Congress without a vote, obtaining a de-facto
legislative approval permitted by a 2002 economic emergency law,
reports Dow Jones Newswires.

The economic emergency law gives Congress 60 days to vote on re-
negotiated utility contracts or they automatically return to the
executive for final approval.

Opposition legislators called a special session for the
Transener contract in a last-minute bid to avoid the deadline,
but failed to obtain a quorum when lawmakers from President
Nestor Kirchner's wing of the Peronist party didn't show up,
says Dow Jones Newswires.

Under Transener's new contract, the Company is slated to receive
a 31% rate increase and is committed to invest ARS32 million
($1=ARS2.92) this year.

CONTACT:  TRANSENER S.A.
          Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


ZEITEK S.A.: General Report Deadline Approaches
-----------------------------------------------
The deadline for the submission of the general report on the
Zeitek S.A. bankruptcy will be tomorrow, Sep. 20, 2005,
following the presentation of the creditors' individual claims
on Aug. 8, 2005. The claims underwent verification phase, which
lasted until June 8, 2005.

Court No. 25 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Zeitek S.A. after the company
defaulted on its debt obligations. The court assigned city
accountant Bartolome Horacio Barrio to supervise the liquidation
as trustee.

The city's Clerk No. 50 assists the court on this case that will
end with the sale of the Company's assets.

CONTACT: Mr. Bartolome Horacio Barrio, Trustee
         Avda de Mayo 1324
         Buenos Aires



=============
B A H A M A S
=============

KERZNER INTERNATIONAL: Moody's Assigns B2 to Gtd Sr. Sub Notes
---------------------------------------------------------------
Approximately $400 million of debt affected.

Moody's Investors Service assigned a B2 rating to Kerzner
International Limited's ("Kerzner") proposed $400 million
guaranteed senior subordinated notes due 2015, and affirmed the
company's Ba3 Corporate Family Rating and stable rating outlook.
The notes are offered pursuant to Rule 144A of the Securities
Act of 1933. Proceeds of the note offering will be used,
together with cash on hand, to repurchase all of Kerzner's 8
7/8% guaranteed senior subordinated notes tendered for pursuant
to a tender offer launched on August 12, 2005. The B2 rating on
the 8 7/8% notes will be withdrawn once the notes are redeemed.

The B2 rating on the proposed notes considers that they will
have a formal guaranty from Kerzner's operating subsidiaries.
The company will have the ability to raise additional debt as
long as it meets a 2.0 times fixed charge debt incurrence test,
and the indenture includes a $900 million senior secured credit
facility carve-out that will not be subject to the fixed charge
debt incurrence test. The affirmation of the ratings considers
the high quality of the company's assets and significant amount
of customer loyalty attached to the Atlantis brand name and the
stability of cash flows generated by the Mohegun Sun
(Ba1/stable) relinquishment payments and other management
contracts. Key credit concerns include the reliance on the
single upscale destination resort property for a significant
portion of the company's cash flow which makes it highly
vulnerable to uncertain travel and economic trends.

The stable rating outlook reflects adequate liquidity to
supported planned development activity, a manageable debt
maturity profile (including no significant maturities in 2006
when leverage is expected to peak), as well as Moody's
expectation that the company will not aggressively repurchase it
stock. In August 2005, Kerzner's Board of Directors has approved
a share repurchase program authorizing the repurchase of up to
two million ordinary shares.

Ratings upside is limited by Kerzner's significant expansion
activities which will likely result in peak leverage
(debt/EBITDA) during construction of over 5.0x in 2006.
Currently gross debt to EBITDA is around 3.6x and the company
had $375 million cash on hand at June 30, 2005. The company
recently commenced development of a major expansion at Atlantis
that includes a 600-room all-suite luxury hotel and a
significant enhancement of water-based attractions. Certain
elements of this expansion have already opened with the
remaining elements expected to open by early 2007. The company
is also developing other projects as part of joint venture
arrangements, including Atlantis, The Palm, Dubai, and is
expected to pursue other new development opportunities around
the world which increases overall business risk. Ratings could
face downward pressure if the company were to execute material
share repurchases and/or leverage increases significantly beyond
current expectations.

New rating assigned:

$400 million guaranteed senior subordinated notes at B2.

Kerzner International Limited is a developer and operator of
destination resorts, casinos and luxury hotels. The company's
flagship brand is Atlantis, which includes Atlantis, Paradise
Island, a 2,317-room, ocean-themed destination resort located on
Paradise Island, The Bahamas.



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

ANNUITY & LIFE: Enters Purchase Agreement with Overseas Partners
----------------------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (the "Company") entered
into a Purchase Agreement (the "Agreement") with Overseas
Partners, Ltd. ("Overseas Partners"). The Agreement provided for
the purchase by the Company from Overseas Partners of 1,773,050
common shares of the Company (the "Shares") and Class B warrants
to purchasing an additional 133,396 common shares of the Company
(the "Warrants") for a total cash purchase price of $1,453,901.

The Company completed the acquisition of the Shares and Warrants
pursuant to the terms of the Agreement on September 14, 2005.
The Shares represented approximately 6.74% of the Company's
outstanding common shares, and the Warrants had an exercise
price of $14.06 per share. Following the acquisition, the Shares
and the Warrants were cancelled by the Company.

As a consequence of the repurchase of the Shares and Warrants,
Overseas Partners no longer has the right to nominate one person
for election to the Company's Board of Directors.

CONTACT: Annuity & Life Re (Holdings), Ltd.
         John Lockwood
         Phone: 1-441-296-7667



=============
B O L I V I A
=============

AGUAS DEL ILLIMANI: Regulator Prepares Audit Guidelines
-------------------------------------------------------
Bolivia's basic services regulator Sisab has established the
terms of reference for the proposed audit of capital La Paz
waterworks concessionaire Aguas del Illimani (Aisa), a
subsidiary of French energy group Suez.

According to Business News Americas, Sisab is expected to take
on a consultancy that will carry out the audit, which will cover
the eight years since Aisa began the concession.

The audit will cover technical, environmental, financial, legal
and commercial performance to verify the level of compliance
with the concession between July 24, 1997 and August 31, 2005.

The auditors will have three months to present their conclusions
from the date the audit begins.

AISA has been in handover talks with Sisab and basic services
ministry (VSB) officials since the government ordered the
rescission of its 30-year concession in response to residents'
protests over AISA's allegedly poor service.



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

BANCO DO NORDESTE: S&P Affirms Current Ratings
----------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign
currency and 'BB/B' local currency counterparty credit ratings
on Banco do Nordeste do Brasil S.A. (BNB) The outlook is stable.

The ratings on BNB reflect ownership and support by the
Federative Republic of Brazil (LC: BB/Stable/B; FC: BB-
/Stable/B); the public policy role of the bank; and the
favorable liquidity inflow and liability structure. "The ratings
are closely linked to Brazil's sovereign risk," said Standard &
Poor's credit analyst Daniel Araujo.

The government holds 96% of BNB's voting shares and is involved
in management of its operations. Strong sovereign support is
evidenced by the government's funding and capitalization
policies, despite the absence of a timely government guarantee.
BNB plays a key public-policy role as the main provider of
medium- and long-term funding to companies in the northeastern
region of Brazil. The bank is the sole provider of long-term
financing to the industrial and agricultural sectors in many
northeastern states, and accounts for (on average) 76% of
lending in the region.

Despite the improvement in profitability in 2003 and 2004, BNB
still shows an erratic profitability pattern. Some of the main
negative influences on profitability include the high
provisioning requirements and its high cost structure vis--vis
its revenue stream, as indicated by the ratio of noninterest
expenses to revenues.

The stable outlook on the long-term rating on BNB matches that
on Brazil. All things being equal, ratings on BNB should move in
tandem with those on the sovereign. Borrowing from multilateral
organizations is government guaranteed, and sovereign approval
is required for medium- and long-term foreign funding. Given
BNB's key public-policy function in the northeastern region,
continued government support is expected to offset periodic
pressure on its asset quality.

Primary Credit Analyst: Daniel Araujo, Sao Paulo (55) 11-5501-
8939; daniel_araujo@standardandpoors.com

Secondary Credit Analyst: Lisa M Schineller, New York (1) 212-
438-7352; lisa_schineller@standardandpoors.com


CELPE: Appeals Court Authorizes Rate Hikes
------------------------------------------
Electric power distributor Companhia Energetica de Pernambuco SA
(Celpe) can now implement an average rate increase of 32% that
power regulator Aneel authorized in April. According to Business
News Americas, Brazil's top appeals court STJ has reversed a
lower court ruling that had barred Celpe from applying the rates
adjustment.

The court refuted arguments by industrial groups and politicians
who wanted to limit the increases to the rate of inflation
measured by the IGP-M index, the same index used in distribution
companies' concession contracts.

The STJ agreed with Aneel's arguments that limiting power rate
increases would be a breach of contracts and could hinder
investments in the country's power sector, leading to a power
shortage crisis, which would be worse for consumers than paying
higher rates.

The STJ's ruling also allows Celpe's sister company, power
distributor Cosern, to apply an average rate increase of 19%
that had been limited to 11%.

Celpe and Cosern are controlled by Neoenergia, the holding
company for Spanish firm Iberdrola's assets in Brazil.


GENERAL MOTORS: Considers Sending 600 Workers Home
--------------------------------------------------
The Brazilian unit of General Motors Corp. has kicked off a
program of voluntary resignations at its unit in Sao Jose dos
Campos city in Sao Paulo state, according to the president of
the metal workers union, which represents GM employees.

Union President Luiz Carlos Prates revealed GM seeks to
eliminate 600 workers as part of the Company's plan to reduce
production at the said unit.

"I think that it will be too difficult for the company to reach
this target under the program. And if GM tries to force
resignations, we are prepared for a strike," said Mr. Prates.

GM is cutting the jobs because of export revenue losses brought
about by the appreciation of the Brazilian real against the U.S.
dollar, Prates said. The real has increased 15% against the U.S.
dollar so far in 2005.

GM produces almost 17,000 cars per month at its plant in Sao
Jose do Camos city, which has 10,500 workers. GM has three
factories in Brazil.


GERDAU S.A.: Issues $600M Guaranteed Perpetual Senior Notes
-----------------------------------------------------------
Gerdau S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) announced
Thursday that it has launched and priced its inaugural issuance
of 144A / Reg S Guaranteed Perpetual Senior Securities (the
"Securities" in the aggregate principal amount of US$600
Million. The Securities will be unconditionally and irrevocably
guaranteed by Gerdau's Brazilian operating companies, namely
Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos
Especiais S.A. and Gerdau Comercial de Acos S.A.

Final terms and conditions as of September 15, 2005:

Issuer Gerdau S.A.

Guarantors Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau
Acos Especiais S.A., Gerdau Comercial de Acos S.A.

Ratings Moody's: Ba1 (Stable) / S&P: BB- (Stable) / Fitch: BB-
(Stable)

Lead managers HSBC / Citigroup

Issue Amount US$600,000,000

Issue type 144A / Reg S

Settlement September 22, 2005 (T+5)

Maturity Perpetual

Optional Redemption Callable at Par on any interest payment date
on or after Sept. 22, 2010

Interest Payment Payable Quarterly on September, December, March
& June 22

Coupon 8.875% (First Coupon Payment Date: December 22, 2005)

Re-offer price 100.000%

Re-offer yield (Quarterly) 8.875%

Interest rate basis US (NASD) 30/360

Interest rate frequency Quarterly

Governing law New York

Clearing DTC / Euroclear / Clearstream

Listing Singapore Stock Exchange

The Offering attracted orders in excess of US$3.5 billion,
allowing Gerdau to upsize the final offering size from an
initially announced US$300 million. Interest on the Securities
will accrue at a rate of 8.875% per annum and will be paid on a
quarterly basis. The Securities will be perpetual securities
with no fixed maturity date or mandatory redemption date, and
may be subject to redemption by Gerdau on September 22, 2010 or
on any interest payment date occurring thereafter. The
Securities received a rating of "Ba1" (Stable Outlook) by
Moody's Investor Service, Inc., of "BB-" (Stable Outlook) by
Standard & Poor's and of "BB-" (Stable Outlook) by Fitch
Ratings.

The geographic distribution of the offering is as follows: 46%
Asian, 32% European, 20% U.S. and 2% Brazilian investors. The
majority of buyers of the Securities were Private Banking and
retail investors. The use of proceeds of the Securities'
offering will general corporate purposes of Gerdau and its
subsidiaries.

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

Gerdau S.A. ("Gerdau", the "Company" or the "Issuer") is the
largest producer of long rolled steel products in Brazil and the
second largest in North America. The Company also operates steel
mills in Chile, Argentina, Uruguay and Colombia. As of June 30,
2005, Gerdau generated approximately 52% of its revenues from
its Brazilian operations, 43% from North American and 5% from
South American operations (excluding Brazil).


NET SERVICOS: Upgraded to Overweight by Morgan Stanley
------------------------------------------------------
Investment house Morgan Stanley upgraded cable TV provider Net
Servicos de Comunicacao (NETC) to overweight from underweight
and raised the Company's price target to US$5.00 from $2.80,
reports Dow Jones Newswires. The move came on expectation that
the Company's paid TV subscribers will grow 5% in the medium
term, while broadband revenue will double, to 20% of total
revenue within three years.

Moreover, Morgan Stanley expects Net Servicos' earnings before
interest, taxation, depreciation and amortization in dollar
terms to grow 18% next year and more than 20% in 2007.

Morgan Stanley, however, believes Net Servicos' margins are
likely to be lower in the second half of 2005 than in the first
half of the year, due to greater growth, the investment house
said.

"Investors' reception of these lower margins is a significant
short-term risk, in our view," Morgan Stanley said.

CONTACT: Net Servicos de Comunicacao S.A.
         Investor Relations
         Marcio Minoru
         Phone: 011-5511-2111-2811
                    or
         E-mail: minoru@netservicos.com.br
                    or
         Sandro Pina
         Phone: 011-5511-2111-2721
                    or
         E-mail: sandro.pina@netservicos.com.br
         URL: http://www.ir.netservicos.com.br



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

* ECUADOR: Reaffirms Intent to Meet Debt Payment Schedule
---------------------------------------------------------
President Alfredo Palacio assured creditors Thursday that his
country will pay all its external debt obligations, Dow Jones
Newswires relates. On his first visit to New York as Ecuador's
head, Palacio spoke before representatives of several investment
houses and oil and other companies at a luncheon sponsored by
the Ecuadorean American Association to assure the payment of the
country's debts by attracting investors.

Mr. Palacio admitted that Ecuador's government lacks money to
invest in the country's economy and that it needs the aid of the
private sector.

The Palacio administration therefore aims to create a favorable
climate for the investors, starting with the proposal of
electoral reforms.

Reforms include the conversion of Congress into a bicameral
institution as well as the election of a portion of
representatives by district.

President Palacio has also requested that the Congress appoint
new judges to Ecuador's Supreme Court, which was dissolved in
April by Mr. Palacio's predecessor, ousted President Lucio
Gutierrez.

Palacio saw a need for a revision of Ecuador's oil exploration
and production contracts with private companies.

Many of the contracts were signed when the economic scenario was
different and oil prices were lower, he reasoned. He assured
that his administration will be transparent and will abide by
international laws.

Energy Minister Ivan Rodriguez said that the government will
spend the next 10 days visiting consulting firms that could be
hired to help in the reviews for the oil contract revision.

According to Mr. Rodriguez, Ecuador should hire a consultant
next month. The goal is to finalize all the revisions early next
year.

"We want to do it in a professional and short way," Mr.
Rodriguez said. "It will be short to avoid wearing down any of
the parts involved."

Economy Minister Magdalena Barreiro, who was also present at the
event, said that the country is ready to make the $75 million
interest payment on the debt in October.

Regarding the issuing of $500 million in bonds, Mr. Barreiro
said that Ecuador is currently going through some technical
delays but the issue should take place Dec. 1.

Mr. Barreiro informed that Venezuela is eager to buy $300
million of the issue and that she wasn't worried that
Venezuela's involvement could strain Ecuador's relations with
the U.S.

Venezuela is merely willing to lend a part of the money Ecuador
needs, she added.

On the $100 million loan the World Bank recently suspended, Mr.
Barreiro said she expects to reopen talks with the bank's
officials next week in Washington, where she will participate in
the annual International Monetary Fund meeting.


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

* EL SALVADOR: Sovereign Credit Ratings Affirmed; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
and 'B' short-term sovereign credit ratings on the Republic of
El Salvador. The outlook on the long-term ratings remains
stable.

According to Standard & Poor's credit analyst Roberto Sifon
Arevalo, the ratings reflect a stable monetary environment
created by the 2001 adoption of the U.S. dollar as the local
currency; a strong flow of workers' remittances that totaled
16.0% of GDP in 2004; and improved economic prospects as a
result of the Central America Free Trade Agreement (CAFTA),
which the U.S. Congress ratified in July 2005.

"Given El Salvador's stable political and macroeconomic
scenario, if the government manages to capitalize from CAFTA by
increasing its economic integration with the U.S. and other
Central American countries growth prospects could improve over
the medium term," said Mr. Sifon Arevalo. "While El Salvador
implemented a wide range of structural reform over the last
decade economic growth has been disappointing, with GDP
increasing at an average annual 1.9% rate and annual per capita
income declining by an average 0.16% from 2000-2004," he added.

Standard & Poor's said that El Salvador's general government
deficit, which totaled 2.7% of GDP in 2004, is projected to
increase to 3.0% of GDP in 2005. This is attributable to an
increase in government investment resulting from an almost
nonexistent 2004 public investment plan (caused by delays in the
2004 budget approval process). In addition, the cost of
switching to a private pension system, which accounts for two
thirds of the deficit, is expected to peak at just above 2.0% of
GDP in 2006.

Despite efforts to rationalize government operations, El
Salvador's narrow tax base has resulted in relatively high
deficits for a fully dollarized economy. President Antonio
Saca's Administration managed to pass a tax package in early
2005 that will increase tax revenue by about 1.2% of GDP.
However, this increase will be more than offset by increases in
pension payments and public investment.

"Nevertheless, this is a step in the right direction and
demonstrates a commitment to augment the tax revenue base in
response to El Salvador's high social needs," noted Mr. Sifon
Arevalo. "Failure to generate a pick-up in economic growth,
combined with El Salvador's high deficits, could eventually lead
to diminished creditworthiness. If, on the other hand, there is
a significant increase in economic growth and the debt and
interest burdens begin to decline, the government's credit
standing could improve," he concluded.

Primary Credit Analyst: Roberto Sifon Arevalo, New York (1) 212-
438-7358; roberto_sifon-arevalo@standardandpoors.com

Secondary Credit Analyst: Richard Francis, New York (1) 212-438-
7348; richard_francis@standardandpoors.com



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

KAISER ALUMINUM: Court OKs Voting Protocol Revision
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approves
the Remaining Kaiser Aluminum Corporation and its debtor-
affiliates' amendments to the procedures for the solicitation
and tabulation of votes to accept or reject their proposed joint
plan of reorganization. The Court will convene hearings at 9:00
a.m. on January 9 and 10, 2006, to consider confirmation of the
Plan.  Parties may file confirmation objections by November 14,
2005.

The Reorganizing Debtors, the Committees and the Legal
Representatives are authorized to file a consolidated reply to
any objections to the Plan no later than December 16, 2005.

August 29, 2005, is fixed as the record date to determine which
creditors are entitled to receive Solicitation packages and,
where applicable, vote on the Plan.

The Court also approves the Ballots, including the instructions
and the appropriate distribution to claimholders in each class
entitled to accept or reject the Plan.  All Ballots must be
properly executed, completed and delivered to Logan & Company no
later than 5:00 p.m., on November 14, 2005.

Judge Fitzgerald also directs the P.I. Attorneys to submit their
Directives to Logan & Company, Inc., as the Reorganizing
Debtors' solicitation and tabulation agent, on or before October
3, 2005, or on October 17, 2005, if the P.I. Attorney elects to
serve the Solicitation Packages on certain clients.

Form B Debt Securities Individual Ballots must be delivered to
the appropriate Master Ballot agent on November 12, 2005.

The Court rules that each claim entitled to vote on the Plan
will be temporarily allowed in accordance with the Solicitation
and Tabulation Procedures.

A claim transferee will be entitled to receive a Solicitation
Package and cast a ballot on account of that claim only if, by
the Voting Record Date, all claim transfer requirements have
been completed.

The deadline for filing Rule 3018 Motions is set to November 1,
2005, or other date established by the Reorganizing Debtors that
is 14 days before the Voting Deadline.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- 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. 78; Bankruptcy Creditors'
Service, Inc., 215/945-7000)



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

ASARCO: Proposal Undermines Bankruptcy Reorganization Effort
------------------------------------------------------------
The United Steelworkers (USW) accused ASARCO officials of
shamelessly misrepresenting the circumstances around the
collapse of negotiations earlier this week and undermining the
Union's good faith effort to negotiate fair agreements for
workers at the company's mining, refining and smelting
operations.

"These lavishly compensated executives at ASARCO and its parent,
Grupo Mexico, are simply trying to deflect attention from their
own failings that led to the current financial problems," said
USW District 12 Director Terry Bonds, "and their mean-spirited
insistence on hiring scab replacement workers has further
alienated our members and set back the effort to put Asarco's
house in order through the bankruptcy process."

ASARCO managers have claimed that the USW is somehow responsible
for the lack of progress in contract talks.

Bonds reiterated the Union's willingness to bargain and
challenged ASARCO's statement that contract language requiring a
potential buyer to recognize the Unions that represent ASARCO
employees would inhibit a sale.

"The USW is ready and willing to sit down and negotiate a fair
and equitable agreement with ASARCO at any time," Bonds said,
"but what does the company hope to accomplish by negotiating a
contract that would be worthless if one or more of the
facilities are sold?"

"Instead of discussing the issue further, ASARCO took the
ultimate step in disrespecting its workforce and brought in
scabs."

The USW has filed charges with Region 28 of the National Labor
Relations Board and blames Grupo Mexico for deliberately and
illegally instigating the current strike at ASARCO's operations
in Arizona and Texas.

"We believe that cooperating with management is the only way to
save our mines, our plants and our jobs," Bonds said. "As the
current labor dispute drags on, however, I have become less
confident that ASARCO and Grupo share this goal."

CONTACT: United Steelworkers
         Terry Bonds
         Tel: +1-505-878-9756

         Manny Armenta
         Tel: +1-520-465-3617


CINTRA: Reveals New Timetable on Airlines' Privatization
--------------------------------------------------------
Airline holding company Cintra SA is giving investors interested
to participate in the privatization of the country's two biggest
airlines - Aeromexico and Mexicana - until Oct. 7 to form into
groups, reports Dow Jones Newswires. Those groups also have
until Nov. 21 to present financial offers. Aeromexico and
Mexicana are being sold separately, although investors are
allowed to submit bids for both. Cintra hopes to complete the
privatization process by yearend. Credit Suisse First Boston
(CSR) is managing the sale.

The government acquired control of the two airlines along with
other assets seized in the bank bailout of the mid-1990s, and
created Cintra to manage them.

Individuals or institutions involved in the bailout, or that
benefited from the bailout, have been barred from participating
in the privatization. Foreigners are limited to minority stakes
in the carriers.

CONTACT: Cintra S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle Mexico
         Phone: (5)448 - 8000
         E-mail: infocintra@cintra.com.mx
         Web site: http://www.cintra.com.mx


DESARROLLADORA HOMEX: S&P Rates $200M Notes 'BB-'
-------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Desarrolladora Homex S.A. de C.V. (Homex). At
the same time, Standard & Poor's assigned its 'BB-' rating to
Homex's $200 million notes due 2015. The outlook is stable.
Proceeds of the proposed bond will be used to repay indebtedness
of about $165 million and the remainder for working capital
purposes.

"The ratings assigned to Homex and its proposed issue are
constrained by the company's aggressive growth plans, our
expectation that the aforementioned plans could demand
additional indebtedness, and high working capital requirements
that have not allowed free operating cash flow generation up to
now," said Standard & Poor's credit analyst Raul Marquez.
"Homex's ratings also reflect the concentration of mortgage
origination in the public housing agencies and increased
competition, which are inherent risk factors to the Mexican
homebuilding industry."

Positive factors supporting the rating include Homex's position
as one of the leading homebuilders in Mexico, an improved
geographical diversification, a manageable maturity schedule
following the refinancing, and the favorable trend in Homex's
financial performance over the past couple of years. The rating
assigned to the proposed notes also considers the guarantee of
its restricted subsidiaries avoiding structural subordination
between parent-subsidiary creditors. Furthermore, with the
payment of all guaranteed debt the company is eliminating
subordination between unsecured and secured debt. However future
issuance of secured debt could lead to structural subordination.

Homex is a vertically integrated homebuilder focused on the
affordable and middle-income housing segments. Headquartered in
Culiacan, Sinaloa, Homex is one of the largest homebuilders in
Mexico, with operations in 25 cities in 17 states across the
country. During 2004, Homex sold 21,053 houses and reported
revenues of US$476 million.

The stable outlook on Homex reflects Standard & Poor's
expectations that the company should report satisfactory
financial ratios, which would generate free operating cash flow
in the medium term; that a prudent operating and financial
strategy will be sustained (especially if a slowdown in the
collections occurs); and that Homex will continue to maintain an
adequate liquidity position. A positive rating action is not
foreseen in the medium term. A weakening in the company's
liquidity and/or its key financial ratios, or an increase in
management's tolerance for risk, could lead to a negative rating
action.

Primary Credit Analyst: Raul Marquez, Mexico City (52) 55-5081-
4437; raul_marquez@standardandpoors.com

Secondary Credit Analyst: Santiago Carniado, Mexico City (52)
55-5081-4413; santiago_carniado@standardandpoors.com


SATMEX: Concurso Mercantil Launced
----------------------------------
Satellite operator Satmex began bankruptcy proceedings under
Mexican law, known as concurso mercantil, on September 9,
reports Business News Americas. Mexico's transport and
communications minister Jorge Alvarez Hoth is expected to
appoint the case supervisor for Satmex's bankruptcy case on or
before September 20.

Five people are under consideration for the position. They are
Maru Sidaoui, Rafael Buerba, Tomas Heather, Ruben Goldberg and
Dionisio Ramos.

The concurso mercantil will serve as a forum for restructuring
Satmex's financial situation by securing new shareholders,
performing a capital increase and launching a new satellite -
Satmex 6 - by June 30, 2006.

Business News Americas reports that the operator is thought to
have defaulted on US$523 million of debt since 2003. As of May
31, 2005, Satmex has US$900 million in total assets and US$688
million in total debts.


SICARTSA: Workers End Strike After Accepting Revised Offer
----------------------------------------------------------
The September 15 assembly saw union workers at Grupo Villacero's
Sicartsa steel plant vote to end their 46-day strike. An
official at the Mexican Mining and Metallurgical Workers Union
revealed workers had agreed to a revised offer from Villacero,
which provides for an 8% salary increase and a 34% hike in
benefits such as health and productivity bonus, in addition to a
one-time cash bonus of US$672 per worker.

Workers were scheduled to resume operations September 17 at the
Sicartsa plant, the biggest such steel plant in Latin America,
which has been shut since Aug. 1 when the strike took effect.

During the strike, Villacero feared Sicartsa would have to close
permanently if the furnace stopped running as the US$400-million
price of restarting it would not have been profitable.

Sicartsa was losing 5,000t/d of production during the strike,
which started over alleged contract violations. At US$3 million
a day, total losses reached some US$138 million.


TV AZTECA: ADR Exchange Period Expires
--------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; Latibex: XTZA), one of
the two largest producers of Spanish-language television
programming in the world announced Thursday that, as it was
previously announced, the period throughout which holders of TV
Azteca American Depositary Receipts (ADRs) can exchange their
ADRs for TV Azteca Certificados de Participacion Ordinaria
(CPOs), which are currently traded on the Mexican Stock Market
(BMV), expired on September 16, 2005.

As has been detailed in the Company's prior press releases, ADR
holders have had a 60-day period, which started on July 18,
2005, to exchange their ADRs for CPOs traded on the BMV. On
September 16, 2005, date of the expiration of such period, The
Bank of New York (BoNY) would be allowed to sell the CPOs
underlying the ADRs that were not surrendered and distribute the
proceeds of such sale to holders of the remaining ADRs. The
Company understands from BoNY that BoNY is expected to sell the
CPOs on the BMV in a strategic manner within an undefined
timeframe.

The Company had previously announced that at an Extraordinary
Shareholders' Meeting held on June 1, 2005, 99.85% of TV
Azteca's shareholders approved the termination of the ADR
program, after an analysis and discussion of the costs and
benefits of a continued listing on a U.S. national securities
exchange.

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT:  Investor Relations:
          Bruno Rangel
          Tel: 5255 1720 9167
          E-mail: jrangelk@tvazteca.com.mx

          Rolando Villarreal
          Tel: 5255 1720 0041
          E-mail: rvillarreal@gruposalinas.com.mx

          Media Relations:
          Tristan Canales
          Tel: 5255 1720 5786
          E-mail: tcanales@tvazteca.com.mx

          Daniel McCosh
          Tel: 5255 1720 0059
          E-mail: dmccosh@tvazteca.com.mx



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

ALIMENTOS POLAR: Condemns Seizure of Storage Facilities
-------------------------------------------------------
The government seized grain-storage silos belonging to food
company Alimentos Polar after a number of workers organized a
protest. The Company and other private-sector leaders condemned
the seizure because Congress didn't declare the silos "of public
interest" as the government does before attempting a takeover of
privately owned assets.

The seizure, Alimentos Polar argues, violates the laws and the
constitution passed by the government of President Hugo Chavez.

But Agriculture Ministry officials have declined repeated
requests to explain the legal backing of the silo seizure.

Instead, Agriculture Minister Antonio Albarran told company
representatives they have to sell corn flour at cheap prices to
the poor in order to resolve the seizure.

Albarran said local producers must be given fair prices for
their production and market abuses must be stopped.

The seizure comes as the government is also renewing efforts to
seize agriculture-ready land that is deemed "idle" or has an
unclear ownership status.

The government's move has thrown into doubt the future of
privately owned assets in Venezuela. So far, the government has
initiated expropriation proceedings involving some land holdings
and has successfully expropriated the assets of two failed
companies.



                            ***********


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
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Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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