TCRLA_Public/050922.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

          Thursday, September 22, 2005, Vol. 6, Issue 188

                            Headlines

A R G E N T I N A

AGUAS ARGENTINAS: Creditors Must Take Action Ahead of Suez Exit
ALTO PALERMO: Directors Subject to Sumario Initiated by CNV
BERGIL S.A.: General Report to be Submitted Sept. 23
BLANQUITA S.A.: Deadline for Gen. Report Submission Approaches
DYT COMUNICACIONES: Trustee to Present General Report in Court

IRSA: CNV Initiates Sumario to Company's Shareholders
* BUENOS AIRES: To Unveil Details of $2.9B Debt Plan This Week


B E R M U D A

TYCO INTERNATIONAL: SEC Likely to File Fraud Suit Vs. Company


B R A Z I L

AES CORP.: Appoints New Execs at Brazilian Units
BANCO BRADESCO: Board OKs Proposal on Monthly Payment System
CAMARGO CORREA: Ratings Reflect Fierce Competition
CERVEJARIAS KAISER: Parent Exploring Options for Struggling Unit
* BRAZIL: Fitch Rates Local Currency Global Bond Issue 'BB-'


C O L O M B I A

AVIANCA: Coffee Growers Federation to Divest of 25% Stake
TELECOM: Govt. to Award WiMax License to Boost Attraction


C O S T A   R I C A

ROYAL AHOLD: To Sell Stake in Central American JV to Wal-Mart


M E X I C O

ASARCO: Wants to Employ Ordinary Course Professionals
LUZ Y FUERZA: Four Firms Bid for 14 Gas-Fired Projects
UNITED RENTALS: Completes Consent Solicitations From Bondholders


P E R U

TELEFONICA DEL PERU: Fitch Rates $200M Proposed Sr. Notes 'BB'


V E N E Z U E L A

ALIMENTOS POLAR: President Supports Expropriation of Assets
CADAFE: Subsidiaries Suffer Power Outage
EDC: S&P Affirms 'B' Rating; Assigns Stable Outlook

     -  -  -  -  -  -  -  -

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

AGUAS ARGENTINAS: Creditors Must Take Action Ahead of Suez Exit
---------------------------------------------------------------
Argentina's planning ministry advised creditors of Buenos Aires
water company Aguas Argentinas to take the necessary actions
ahead of the imminent withdrawal of French group Suez, which
owns 39.9% of the concessionaire, reveals Business News
Americas.

There is a possibility that creditors of Aguas Argentinas could
call for the immediate repayment of debts, which would trigger
the automatic cancellation of the concession under the contract.

Some observers, however, have discarded this possibility because
of the unwelcome publicity this would attract for Suez, given
that the Buenos Aires utility is its main international
concession.

In any case, it would be a last resort for creditors assuming
negotiations go badly.


ALTO PALERMO: Directors Subject to Sumario Initiated by CNV
-----------------------------------------------------------
Alto Palermo S.A. (APSA) informs that some of its directors who
are also directors of Banco Hipotecario are subject to two
proceedings (a "sumario") initiated by the CNV to them on July
22 and on August 25, 2005 in connection with certain payments
made in 2005 to the members of Banco Hipotecario executive
committee under their Management Compensation Plan.

The Banco Hipotecario Shareholders' Meeting held last August 31
ratify and approved such payments and all the measures taken by
the directors in connection with the payments.

Notwithstanding the foregoing, the Company believes that such
proceedings would not have a material adverse effect on its
directors or impact in the Company results and operations.

CONTACT: Alto Palermo S.A. (APSA)
         2/F
         476 Hipolito Yrigoyen
         Buenos Aires
         Argentina
         Phone: +54 11 4344 4600
         Web site: http://www.altopalermo.com.ar


BERGIL S.A.: General Report to be Submitted Sept. 23
----------------------------------------------------
The general report on the bankruptcy case of Bergil S.A. will be
submitted tomorrow, Sep. 23, 2005. Ms. Marta Susana Polistina,
the court-appointed trustee, will include in the report an audit
of the Company's accounting and business records.

Ms. Polistina validated creditors' proofs of claims until June
15, 2005 and prepared individual reports out of the verified
claims. The reports were submitted in court on Aug. 11, 2005.

Bergil S.A. entered bankruptcy protection after Court No. 26 of
Buenos' Aires' civil and commercial tribunal, with the
assistance of Clerk No. 52, ordered the Company's liquidation.

CONTACT: Ms. Marta Susana Polistina, Trustee
         Avda Corrientes 745
         Buenos Aires


BLANQUITA S.A.: Deadline for Gen. Report Submission Approaches
--------------------------------------------------------------
The deadline for the submission of the general report on the
Blanquita S.A. bankruptcy case will be tomorrow, Sept. 23, 2005.

On Aug. 12, the individual reports were presented in court for
approval. These reports were based on creditors' claims, which
underwent verification phase until July 1, 2005.

The Company entered bankruptcy protection after Court No. 6 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 12, ordered the Company's liquidation and appointed
Mr. Marcelo Horacio Liderman as trustee.

CONTACT: Mr. Marcelo Horacio Liderman, Trustee
         Pinzon 1555
         Buenos Aires


DYT COMUNICACIONES: Trustee to Present General Report in Court
--------------------------------------------------------------
Mr. Jorge Podhorzer, the trustee appointed by the court for the
DYT Comunicaciones S.R.L. liquidation, will present the general
report on the case tomorrow, Sept. 23, 2005.

The presentation followed the submission of the reports on
creditors' individual claims against the Company on Aug. 11,
2005. The claims were verified until June 16, 2005.

Court No. 12 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of DYT Comunicaciones S.R.L. after the
Company defaulted on its debt obligations.

Clerk No. 24 assists the court on this case that will end with
sale of the Company's assets.

CONTACT: Mr. Jorge Podhorzer, Trustee
         Pasaje del Carmen 716
         Buenos Aires


IRSA: CNV Initiates Sumario to Company's Shareholders
-----------------------------------------------------
IRSA Inversiones Y Representaciones Sociedad Anonima announced
that CNV initiated to some of the Company's directors, who are
also directors of Banco Hipotecario, on July 22 and on August
25, 2005 two proceedings (a "sumario") in connection with
certain payments made in 2005 to the members of Banco
Hipotecario executive committee under their Management
Compensation Plan. The directors are subject to the sumario.

The Banco Hipotecario Shareholders' Meeting held last August 31
ratify and approved such payments and all the measures taken by
the directors in connection with the payments.

The Company believes that such proceedings would not have a
material adverse effect on its directors or impact in the
Company results and operations.

CONTACT: IRSA Inversiones y Representaciones S. A.
         Alejandro Elsztain, Director
         Gabriel Blasi, CFO
         Tel: +011-5411 4323-7449
         E-mail: finanzas@irsa.com.ar


* BUENOS AIRES: To Unveil Details of $2.9B Debt Plan This Week
--------------------------------------------------------------
Argentine province Buenos Aires will reveal details of its
US$2.9 billion debt-restructuring plan this week, Dow Jones
Newswires reports.

A technical presentation is expected in the next few days after
Italian securities regulator Consob approves the documents for
the global offering, said spokesman for provincial economy
ministry, Enrique Velazquez. After that it should take around 20
days for the launch of the offering.

Velazquez gave no details but hinted that a report by local
daily El Cronista earlier Monday, which stated that the proposed
cut or estimated loss to holders of the province's debt will be
between 65% and 70%, was more or less correct.

The report also mentioned that a long-term par bond, a medium-
term par bond and a discount bond of shorter duration would be
offered with each bond dominated in dollars or euros. These
bonds would replace some 16 outstanding defaulted bonds.

Accuracy in the report would mean that the main elements of a
draft document disclosed in July have not changed. The document
would highlight the same structure for the three bonds.

While the draft document gave no sign of maturities or interest
rates, it cited a 65% face value reduction for the discount bond
and limitations on the amount of discount bonds and medium-term
par bonds to be issued.

The draft also said that a portion of the past-due interest
accumulated before and after the January 2002 default would be
capitalized into bondholders' claims.

Velazquez and other ministry officials have been emphasizing
that Buenos Aires' offering will use the debt swap done by the
national government as a standard to follow and that
restructuring carried an estimated slash of 70%, though the
subsequent strong upturn in the value of the bonds has boosted
the return to anyone who participated in it.



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

TYCO INTERNATIONAL: SEC Likely to File Fraud Suit Vs. Company
-------------------------------------------------------------
New York State Prosecutor Owen Heimer revealed Monday that the
U.S. Securities and Exchange Commission may have decided to
bring charges of accounting fraud against Tyco International
Inc., reports Reuters.

Mr. Heimer disclosed the potential suit following the sentencing
hearing for ex-Tyco chief executive L. Dennis Kozlowski, who
along with finance chief Mark Swartz was convicted in June of 22
felonies, including a dozen counts each of grand larceny.
Kozlowski and Swartz were both sentenced to 8.3 to 25 years in
jail for fraud.

Bloomberg said in a report that the prosecutor's comments signal
that Tyco may be close to resolving an SEC investigation of
acquisition accounting that has dogged the Company for at least
three years.

The SEC often files a civil suit spelling out its factual
allegations and legal claims against a company at the same time
that the agency announces a settlement. The SEC also usually
postpones its cases during related criminal prosecutions.



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

AES CORP.: Appoints New Execs at Brazilian Units
------------------------------------------------
US power company AES Corp. (NYSE: AES) has changed personnel at
its Brazilian holding company Brasiliana and distributor
Eletropaulo Metropolitana SA to boost their financial management
and relations with national development bank BNDES.

According to Business News Americas, the Company named Britaldo
Soares as CFO, replacing Adrea Ruschmann, who was named
executive treasury officer and investor relations officer.

Jeff Safford was appointed as executive officer for relations
between AES and Brasiliana. He will answer to AES' Brazil
country manager Eduardo Bernini and mediate relations between
AES and BNDES.

Brasiliana is a joint venture between AES Corp. and BNDES. The
holding company controls AES' assets in Brazil including
Eletropaulo and generators AES Tiete and AES Uruguaiana.

According to an Eletropaulo spokesperson, the new appointments
will not affect the long-term management of Eletropaulo's
finances, which includes an agreement with creditors for
repaying its debt with local cash flow generation.

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


BANCO BRADESCO: Board OKs Proposal on Monthly Payment System
------------------------------------------------------------
The Board of Directors of Banco Bradesco S.A. approved in a
meeting held Tuesday the proposal submitted by the Board of
Executive Officers to set the system for monthly payment to
shareholders of Interest on Own Capital, to be complied with by
the Company.

Banco Bradesco S.A. Executive Vice President and Investor
Relations Director Jose Luiz Acar Pedro in a letter sent to the
Securities and Exchange Commission on September 20, 2005
informed:

a) Record Date

- For the purposes provided for by the Article 205 of the Law
6,404/76, the Monthly Interest on Own Capital shall benefit
shareholders who are registered in the Company's records on the
first business day of each month;

b) Payment Date

- The Payments shall be made on the first business day of the
subsequent month, by monthly advance of the mandatory dividend,
by means of credit in the account informed by the shareholder or
made available in the Company;

c) Monthly Amount

- R$0.057000 per common share and R$0.062700 per preferred
share, to be paid by the net amount of R$0.048450 per common
share and R$0.053295 per preferred share, minus Withholding
Income Tax of fifteen percent (15%), except for legal entity
shareholders which are exempt from the referred taxation, which
shall receive by the declared value.

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

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

Following, the Chairman stated that:

1. The system approved will come into force from the Interest on
Own Capital related to the month of October 2005, having as
record date shareholding position as of October 3, 2005, to be
paid on November 1, 2005;

2. The Board of Executive Officers was authorized to take all
the necessary steps in order to credit the respective interest
in an individualized manner, as from this date, to the stock
account of the Company's stockholders; and

3. For the stockholders with inactive accounts, the interest
amount will be maintained available in the Company, the same
occurring in respect to those with no CPF (Individual Taxpayer
Identification Number) or CNPJ (Corporate Taxpayer
Identification Number) registered in the records, until they
satisfy the legal requirement.

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

         Luiz Osorio Leao Filho
         Phone: 55 11 3684.9302

         URL: www.bradesco.com.br/ir


CAMARGO CORREA: Ratings Reflect Fierce Competition
--------------------------------------------------
ISSUER CREDIT RATING
Corporate Credit Rating
   Local currency:  BB/Stable/--
Corporate Credit Rating
   Foreign currency:  BB-/Stable/--

AFFIRMED RATINGS
Camargo Correa Cimentos S.A.
  Sr unsecd debt
     Foreign currency:  BB-

Major Rating Factors

Strengths:

    - Favorable location of CCC's plants in Southeast Brazil
      (close to the largest consumption centers in the country)
    - Competitive cost position in cement production and
      distribution
    - Moderate financial policy
    - Implicit parental support from Camargo Correa Group

Weaknesses:

    - Exposure to the swings in cement demand in Brazil, which
      has been sluggish in the past few years and is only now
      gradually recovering
    - Fierce competitive environment, reducing cement prices in
      the Southeast of the country
    - Relative small size in a competitive industry where larger
      national and international players also participate
    - Potential risks deriving from its expansion strategy,
      which is primarily acquisition driven

Rationale

The ratings on Camargo Correa Cimentos (CCC) reflect the
following risks: exposure to the swings in cement demand in
Brazil, which has been sluggish in the past few years and is
only now gradually recovering; a fierce competitive environment,
reducing cement prices in the Southeast of the country; the
relative small size in a competitive industry where larger
national and international players also participate; and
potential risks deriving from its expansion strategy, which is
primarily acquisition driven. These risks are partially offset
by the following strengths: the favorable location of CCC's
plants in Southeast Brazil (close to the largest consumption
centers in the country); competitive cost position in cement
production and distribution; moderate financial policy; and
implicit parental support from Camargo Correa Group.

CCC is the third-largest Brazilian cement company in terms of
installed capacity and fourth largest in terms of production,
with a total installed capacity of six million tons/year,
producing cement under the Caue brand name in Brazil. The
company has broad portfolio products, such as grey cement, white
cement, concrete, silica, and mortar. Even though CCC has 70% of
the total Brazilian white cement market, gray cement represents
90% of its total revenues. The company produces its products in
five plants located in the states of Sao Paulo, Minas Gerais,
and Mato Grosso do Sul. In first-half 2005, the Camargo Correa
Group acquired control of the holding company that controls Loma
Negra C.I.A.S.A. (Loma Negra), whose operations are expected to
eventually be combined with those of CCC. After this has been
done, CCC will also become a leading cement producer in
Argentina. The further consolidation of Loma Negra, the largest
cement producer in Argentina, producing 3.1 million tons, will
strength CCC's business position in the cement industry,
increasing its geographic diversification and its total
production to about 5.7 million tons per year. Nowadays, the
cement market in Argentina is strong, presenting increasing
demand and steady prices. On the other hand, the acquisition
will add some volatility to CCC's business portfolio due to
economic vulnerabilities in the country.

CCC has reported a moderate financial policy, given the fact
that it is aligned to those of the group, and we expect that CCC
will receive any necessary financial support to help it maintain
financial leverage limited to CCSA's targets (net debt to EBITDA
of less than 3x), as has already happened in the past. Parental
financial support for CCC has already been demonstrated in
August 2004 through a capital increase provided by the group. In
addition, a further capital injection is expected as a result of
Loma Negra's acquisition, as soon as the antitrust body approves
the acquisition. After the consolidation of Loma Negra into CCC,
we expect credit metrics to gradually but consistently improve
within the next several quarters, not only due to the
strengthening cash flow in Brazil but also to possible debt
reductions in Argentina. We also believe that additional capital
investments that could potentially cause leverage limits to be
surpassed will be funded by the rest of CCSA, either in the form
of intercompany loans or capital infusions.

The demand for cement in Brazil remains weak, combined with the
fact that a fierce competitive environment in the past couple of
months has affected cement prices in general, but particularly
in southeast Brazil, directly affecting CCC's and other players'
profitability since last year. Some cost pressures, especially
energy and raw materials, also contributed to the 30.4%
annualized margin in June 2005, compared to 36.5% by fiscal
year-end 2004. Standard & Poor's believes that infrastructure
and housing investments in the country will gradually recover in
the next couple of years, helping CCC to recover and sustain
EBITDA margins at about 40% in the future. On the other hand,
despite the negative impact on operating margins, cash flow
remains relatively adequate. Funds from operations (FFO) and
free operating cash flow (FOCF) over the past three years
averaged $71 million and $39 million, respectively ($20 million
and $17 million in June 2005).

Liquidity

CCC has been reporting low debt vis-…-vis cash generation and
strong financial flexibility through its liquidity position and
its access to the national and international capital markets.
Parental support is also an integral part of the analysis, and
we believe that CCC will count on financial support to finance
acquisitions or to provide support under any difficult
conditions.

In June 2005, CCC's total debt reached about $340 million; a
small portion of 3% of the total is concentrated in the short
term. The remaining debts are spread out over the next several
years, including the semi-annual amortization of its BrR360-
million debentures. Its $150 million MTNs, recently issued to
refinance its US$150 million notes, will mature over the next 10
years. In addition to its comfortable schedule amortization, CCC
counts on a projected low maintenance capital expenditure with a
relatively adequate FOCF, adding comfort to the company's
liquidity position.

Financial ratios by year-end 2005 will continue to be affected
by lower profitability and cost pressures when compared with
2004's results, which is also due to a moderate increase in
additional debt (subordinated debenture issuance in the
Brazilian capital markets of BrR360 million), as a consequence
of Loma Negra's acquisition. While debt is added to CCC's
balance sheet, Loma Negra will also bring approximately $140
million in EBITDA generation to the consolidated results (after
antitrust approval). The acquisition also reduced liquidity as
cash reserves ($62 million in June 2005) were consumed; we
expect the company's liquidity position to gradually build up
again, as free cash flow will also be increased.

Outlook

The stable outlook on CCC's local currency rating reflects our
expectation that the company's financial profile will remain
conservative despite programmed capital expenditures and
potential acquisitions in the future. At present, the company
counts on enough liquidity and low levels of indebtedness to
fund these expenditures. Parental support is also an integral
part of the analysis, and we believe that CCC will not only
remain one of the most important operations for the Camargo
Correa Group, but that it will also count on financial support
to finance acquisitions or to provide support under any
difficult conditions. Therefore, a negative action on the
ratings and outlook may come from an increase in leverage and
deterioration of credit measures under a scenario of relaxed
financial policy targets for the company or the whole group. A
positive action on the ratings would depend on structural and
permanent improvements in Camargo Correa Group's financial and
business profiles, surpassing scale, market, and synergy gains
deriving from its current growth strategy already under
implementation (which includes the improvement in the business
fundamentals not only for its cement operation but also for its
textile and footwear divisions). The stable outlook on the
foreign currency rating reflects that of the sovereign foreign
currency rating on the Federative Republic of Brazil.

Primary Credit Analyst: Juliana Gallo, Sao Paulo
(55) 11-5501-8948; juliana_gallo@standardandpoors.com

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


CERVEJARIAS KAISER: Parent Exploring Options for Struggling Unit
----------------------------------------------------------------
Molson Coors Brewing Company, the world's fifth-largest global
brewer, reiterated Tuesday that it is continuing to explore a
full range of options for its Brazilian business unit,
Cervejarias Kaiser, which includes discussions with third
parties regarding the business.

In May, Molson Coors CEO Leo Kiely said the parent company would
not put additional money into the Brazilian unit until it
stopped losing money.

Many believe Molson Coors would be better off if it sold the
unit.

"The expectation is that they are looking to sell it clearly,"
said analyst Bill Chisholm who tracks Molson Coors for Dundee
Securities.

"They're not putting any more money into it, and it seems to be
at very best stagnant, if not still deteriorating, so it needs
someone who is more committed to it to get it turned around," he
said.

Legg Mason analyst Mark Swartzberg also suggested last week that
a sale of Brazil's third-largest brewer by parent Molson Coors
may be "near at hand." Swartzberg pegged the sale price at
US$150 million.

According to a research report by Merrill Lynch, Cervejarias
Kaiser could make an attractive takeover target for such
international brewing rivals as Femsa, SABMiller and Modelo.


* BRAZIL: Fitch Rates Local Currency Global Bond Issue 'BB-'
------------------------------------------------------------
Fitch Ratings, the international rating agency, assigned Tuesday
a 'BB-' rating to the local currency (Brazilian Real)
denominated global bonds valued at BRL3.4 billion (approximately
US$1.5 billion) issued Monday with a coupon of 12.5% per year.
The Outlook on the rating is Stable.

Brazil's sovereign ratings reflect a balance between the
favorable trends in Brazil's external finances and the risk that
political gridlock could hamper improvements in public debt
dynamics and constrain economic growth.

Officials of the PT party have been accused of bribing
congressman for key votes and of campaign finance irregularities
stemming from President Lula's 2002 election campaign.
Corruption investigations could prevent the passage of reforms
and stymie the budgetary process, though Fitch does not expect
any major fiscal or monetary policy slippage as a result. Of
note was the passage in August (albeit late) of the budget
guidelines law (the LDO), with its spending and tax ceilings
intact. A downside political scenario cannot be ruled out,
however, in which key economic policy officials are implicated
and forced to resign, policy slippage ensues, and even
impeachment proceedings against President Lula are initiated.
Uncertainty about the outcome of the October 2006 national
elections has increased as well.

Brazilian balance of payments performance continues to be
favorable, with exports expanding 22.7% in the year to the
second week of September to total US$79 billion, versus an
increase of 19.4% in imports to US$49 billion over the same
period. Performance on one of Fitch's key external solvency
indicators has improved as a result, with net external debt
(NXD) to current external receipts (CXR) expected to fall to
below 100% by year-end from 233% in 2002. It is true that import
growth has accelerated in recent months, buoyed by a strong
Real, and export volume growth has begun to explain somewhat
less of Brazil's export performance in recent weeks.
Furthermore, with the cycle of monetary easing under way since
mid-September and global growth expected to slow, improvements
in balance of payments and external debt indicators should begin
to taper off.

On public finances, last year the Lula government outperformed
its original primary budget surplus target of 4.25% of GDP,
achieving 4.6% on strong tax revenue growth. Nevertheless, given
how robust 2004 GDP growth was (4.9%) and how high 2004 general
government debt was (75% of GDP), perhaps more of the windfall
could have been saved. Public finance performance this year is
on target to producing a primary surplus of at least 4.4% of
GDP, also in excess of the target.

CONTACT: Roger M. Scher +1-212-908-0240, New York
         Morgan Harting +1-212-908-0820, New York

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



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

AVIANCA: Coffee Growers Federation to Divest of 25% Stake
---------------------------------------------------------
Colombia's Coffee Growers Federation revealed Monday it has
reached an understanding with Brazil's Synergy group to sell its
25% percent stake in Avianca for about US$23 million, reports
Reuters.

"We have not signed any documents but we are in conversations
and we have a pre-agreement," Federation chief Gabriel Silva
told local radio.

Synergy, a group of companies owned by Brazilian businessman
German Efromovich, acquired 75% of Avianca late last year. A
source close to Synergy said a deal to buy the remaining 25% of
Avianca could be reached in October.

Avianca exited bankruptcy earlier this year after having filed
for bankruptcy protection in March 2003.

Founded in 1919, Avianca is considered the second oldest airline
in the world. The Company has 35 planes, more than 5,000
employees and operates 290 daily flights to 18 Colombian and 17
international destinations.


TELECOM: Govt. to Award WiMax License to Boost Attraction
---------------------------------------------------------
The communications ministry plans to sign a resolution to award
nationwide WiMax licenses for free to three national long
distance operators, including state-run Colombia
Telecomunicaciones (Telecom).

The move, according to Business News Americas, is seen by some
analysts as the government's way of adding value to Telecom in
order to proceed with its partial privatization.

"This is a government move to raise the stakes in the middle of
Telecom's negotiations [for a strategic partner]. The government
is giving Telecom something that adds value such as the license,
which is obviously going to raise the strategic attractiveness
of Telecom," Business News Americas quoted Yankee Group senior
analyst Wally Swain as saying.

Telecom has been in talks with Mexico's Telmex (NYSE: TMX) and
Spain's Telefonica (NYSE: TEF) to sell part of its operations.
The government has not made any final decision on the matter,
although Telmex has presented the best offer so far.



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

ROYAL AHOLD: To Sell Stake in Central American JV to Wal-Mart
-------------------------------------------------------------
Royal Ahold announced Tuesday that it has agreed to sell its
indirectly owned 33.3% stake in CARHCO NV, its Central American
joint venture, to U.S. retail giant Wal-Mart Stores Inc..

The move is part of the Company's strategy to optimize its
portfolio and to strengthen its financial position by reducing
net debt.

Royal Ahold will book a " substantial book gain" on the sale of
the stake, a spokesman said, adding that the Dutch retailer will
book the gain immediately after the deal is signed.

CARHCO owns an 85.6% stake in La Fragua S.A. ("La Fragua"), a
discount store, supermarket and hypermarket company in
Guatemala, with a presence in El Salvador and Honduras.

CARHCO also fully owns Corporacion de Supermercados Unidos S.A.
("CSU"), a discount store, supermarket and hypermarket operator
in Costa Rica, Nicaragua and Honduras.

In addition, CSU fully owns Corporaci˘n de Compa¤ias
Agroindustriales, S.A., a company that sources all of the fresh
products for CSU and La Fragua and which also develops private
label articles.

As of August 2005, CARHCO operated in total 363 stores in
Guatemala (120), El Salvador (57), Honduras (32), Costa Rica
(124) and Nicaragua (30).



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

ASARCO: Wants to Employ Ordinary Course Professionals
-----------------------------------------------------
Before the Petition Date, ASARCO LLC and its debtor-affiliates
employed various professionals in the ordinary course of
business to render services relating to the numerous issues that
arose in their normal business affairs unrelated to the
Reorganization Cases.  The Debtors continue to require the
services of the Ordinary Course Professionals after the Petition
Date.

Accordingly, the Debtors seek authority from the U.S. Bankruptcy
Court for the Southern District of Texas to employ the Ordinary
Course Professionals to provide services on terms substantially
similar to those in effect before the Debtors' bankruptcy
filings, without the need to file individual retention
applications for each professional.

James R. Prince, Esq., at Baker Botts, LLP, Dallas, Texas, tells
the Court that it would severely hinder the administration of
the Debtors' estates if they were required to:

  (1) submit to the Court an application, affidavit and proposed
      retention order for each Ordinary Course Professional;

  (2) wait until the order is approved before the Ordinary
      Course Professional continues to render services; and

  (3) withhold payment of the normal fees and expenses of the
      Ordinary Course Professionals until the Professionals
      comply with the compensation and reimbursement procedures
      applicable to Chapter 11 professionals.

Mr. Prince further informs the Court that requiring the Ordinary
Course Professionals to file employment pleadings and
participate in the fee application process would unnecessarily
burden the Clerk's office, the Court, and the U.S. Trustee,
while adding to the administrative costs of the case.

Moreover, the Debtors seek authorization to supplement their
list of professionals from time to time as necessary.  The
Debtors propose to file the supplemental lists with the Court
and to serve the lists on the Office of the U.S. Trustee and to
counsel for any statutory creditors' committee appointed in the
Debtors' cases.

If no objections are filed to a supplemental list within 10 days
after service of the list, then the retention of the
professionals set forth thereon will be deemed approved.

The filing of the Debtors' voluntary petitions stayed the
commencement or continuation of any action or proceeding against
the Debtors.  Many of the Ordinary Course Professionals include
attorneys previously retained to represent the Debtors in the
stayed litigation.  In the event that the automatic stay is
lifted with regard to any or all of these actions, the Debtors
seek authority to employ these professionals in the ordinary
course of business.

The Debtors also propose to pay the Ordinary Course
Professionals without the need for formal application to the
Court, provided that the fees and disbursements do not exceed an
average of $20,000, per month per professional.  The Debtors
propose to pay each professional 100% of its interim fees and
disbursements upon the submission of an appropriate invoice
detailing the services rendered.

The Debtors further propose that the monthly allowances for fees
be done on a "rolling" basis.  Specifically, when any fees are
less than the monthly allowance in any month, the remainder of
the monthly allowance will be made available for compensation in
the following month, in addition to the $20,000 allowance for
that month.

Conversely, if any professional's fees exceed the monthly
allowance, the remaining balance will be added to the fees for
the following month.  Thus, if a professional's fees in the
first month total $15,000, the professional would be paid 100%
of its fees, and the additional $5,000 would be "rolled over" to
the second month, for a potential payment of $25,000, in the
second month.  If, during the second month, the fees total
$30,000, the professional would be paid $25,000, and the
remaining $5,000 balance would be "rolled over" and added to the
professional's fees tier the third month.

To become entitled to receive compensation and reimbursement
amounts in excess of such monthly allowance, the Ordinary Course
Professionals need to submit monthly statements and file interim
and final fee applications, although no additional retention
applications will be needed to obtain compensation and
reimbursement.  The statements and applications would apply to
the entire amount of fees and expenses, not simply to the amount
that exceeds the dollar limitations.

The Debtors also ask the Court to authorize the Ordinary Course
Professionals that have prepetition retainers to apply the
retainer to their outstanding prepetition fees and expenses,
upon the Debtors' approval.

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

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-
20521 through 05-20525).  They are Lac d'Amiante Du Quebec Ltee,
CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304),
Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex.
Case No. 05-21346) also filed for chapter 11 protection, and
ASARCO has asked that the three subsidiary cases be jointly
administered with its chapter 11 case.  (ASARCO Bankruptcy News,
Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000).


LUZ Y FUERZA: Four Firms Bid for 14 Gas-Fired Projects
------------------------------------------------------
Four companies have submitted bids for Mexican state-owned
electric power company Luz y Fuerza del Centro's (LFC) fourteen
32MW natural gas-fired power generation projects in the Federal
District (DF) and Mexico state (Edomex), reports Business News
Americas.

The companies that submitted bids by the September 7 deadline
were Grupo Sentir (Rolls Royce Energy), Pratt and Whitney Power
Systems, GE International Mexico and Turbinas Solar.

LFC could award contracts to more than one company in October.
Winning bidders must submit an environmental impact study (EIS)
for each project.

Total investment in the project is estimated at US$500 million.
The projects will help ease LFC's distribution bottlenecks and
reduce its dependence on state power firm CFE for generation.


UNITED RENTALS: Completes Consent Solicitations From Bondholders
----------------------------------------------------------------
United Rentals, Inc. (NYSE: URI) announced Tuesday the
successful completion of its previously announced consent
solicitations from bondholders. As of 5:00 p.m. EST, on
September 19, 2005, the required majority of holders of each
issue of the outstanding bonds and QUIPs securities had
consented to the amendments and waivers that the company was
seeking pursuant to the consent solicitations.

Wayland Hicks, chief executive officer, said, "We are pleased to
have obtained amendments that are reasonable for all parties
involved. We remain focused on addressing outstanding issues
with the SEC inquiry as we work toward finalizing our results
for 2004 and subsequent periods."

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.

CONTACT:  United Rentals, Inc.
          Chuck Wessendorf
          Tel: 203-618-7318
          E-mail: cwessendorf@ur.com

          Alfred Colangelo
          Tel: 203-618-7141
          E-mail: acolangelo@ur.com
          URL: http://unitedrentals.com



=======
P E R U
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TELEFONICA DEL PERU: Fitch Rates $200M Proposed Sr. Notes 'BB'
--------------------------------------------------------------
Fitch Ratings has affirmed Telefonica del Peru S.A.A.'s (TDP)
international scale local currency unsecured debt rating at
'BBB+' and foreign currency unsecured debt rating at 'BB', and
has assigned a 'BB' rating to its proposed US$200 million senior
unsecured notes to be issued in PEN currency and paid in USD
currency. The Rating Outlook is Stable.

Fitch also maintains an international scale rating of 'BBB' for
TDP's Grantor Trust, a securitization of international
settlement rates receivables. Fitch's Peruvian affiliate Apoyo &
Asociados has a national rating of 'AAA(pe)' for TDP. Use of
proceeds for the proposed notes is expected to be for general
corporate purposes, including working capital and capital
expenditures.

The ratings reflect TDP's solid business position as the largest
Peruvian telecommunications company, the diversified revenue
stream from its various business segments, healthy cash flow
generation, relatively low capital expenditure needs and a
strong financial profile. The ratings incorporate regulatory
risks, continued pressure on local service tariffs, heightened
competition, as well as moderately higher financial leverage
following the completion of the debt offering and over the
medium term. Fitch expects that TDP will continue to maintain a
financial profile consistent with the rating category. The 'BB'
rating of the proposed notes incorporates transfer and
convertibility risks associated to the settlement of the notes,
as they will be issued in PEN but paid in USD at market exchange
rates; however, the new issuance will not add foreign exchange
risk to the company's financial risk profile.

TDP's local-service business, which accounts for about 37% of
consolidated revenues as of June 30, 2005, provides the company
with a relatively stable source of cash flow. TDP currently has
a 97% market share in the local service business. Going forward,
the company should maintain a leading market position due to its
economies of scale, extensive network and established brand
name. TDP also benefits from a diversified revenue stream that
helps reduce cash flow volatility. Over the past year and
despite the appreciation of the local currency, growth in the
cable television and broadband segments partially offset revenue
declines in more mature segments such as local service, long
distance and public telephony. The broadband segment holds
significant future growth opportunities due to the low
penetration of these services. For the next few years,
consolidated revenues are expected to remain relatively stable
as revenue growth from broadband services, and to a lesser
extent cable television, are expected to fully compensate for
declining revenues in other business segments such as local,
public telephony and long distance.

The ratings incorporate regulatory risk and heightened
competition in the Peruvian telecom market that have driven
rates downward, particularly in the local and long distance
segments. Local-service tariffs have declined due to the
establishment in September 2001 of a productivity factor that
reduced real tariffs every three months by an annual rate of 6%.
The productivity factor is revised and adjusted every three
years. The new productivity factors, which became effective
September 2004, further reduce tariffs by an annual rate of
10.07% less inflation for connection fees, monthly fees, and
local measured service, and 7.8% less inflation for long
distance. Tariff pressures and increased competition have
pressured TDP's profitability, with revenues and EBITDA
declining both on average by 4% in local currency per year over
the past three years. However, EBITDA for first-half 2005 has
increased 10.5% due to the cost and expense controls implemented
by the company.

The company, as in the past few years, may be able to partially
offset the impact of the new tariffs if it can successfully grow
its other businesses and reduce its cost structure.
Notwithstanding the potential impact of the local service
tariffs, TDP's financial profile is expected to remain
consistent with the rating category considering an expected
annual free cash flow generation before capex of around US$400
million, which provides the company with financial flexibility
for a potential leverage increase over levels of June 30, 2005
of debt/EBITDA of around 1.1x.

TDP's credit metrics are expected to remain consistent with the
rating category. Despite an expected moderate increase in
leverage, the company's financial profile should remain strong.
Debt refinancing risk is low due to TDP's annual EBITDA
generation of US$550-$600 million combined with access to
capital markets financing. TDP has put in place an authorized
capital reduction program up to PEN$1.3 billion, of which
PEN$775 million has been used. The rating incorporates the
possibility that additional capital reductions may occur under
the outstanding program.

TDP is the leading telecommunications provider in Peru through
its leading shares of the fixed local and long-distance sectors,
as well as public telephone, Internet, broadband services,
company communications, and cable television services with
revenues and EBITDA of US$1.1 billion and US$561 million,
respectively, during 2004. The company participates in several
segments, including fixed local services (43% of 2004 revenues),
public and rural phone services (20%), cable television (10%),
broadband and business communications (9%), and long distance
(9%). For year-end 2004, the company had approximately 2.1
million lines in service, 129 thousand public phones, 389
thousand cable television subscribers, and 205 thousand
broadband customers. The company is 98% owned by Telefonica S.A
of Spain (TEF), which controls various fixed line and wireless
operations throughout Latin America.

CONTACT: Sergio Rodriguez, CFA +52(81) 8335-7179, Monterrey
         Dan Kastholm, CFA +1-312-368-2070, Chicago

MEDIA RELATIONS: Chris Kimble +1-212-908-0226, New York



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

ALIMENTOS POLAR: President Supports Expropriation of Assets
-----------------------------------------------------------
Venezuelan President Hugo Chavez has signaled his support to the
expropriation of the recently seized grain storage facilities of
Alimentos Polar, Venezuela's largest food company, reports Dow
Jones Newswires.

"Now the state governor has the ability to expropriate" those
assets, Chavez said. "Polar bought (the silos)...they stripped
the plant and took the equipment to another country," he said.

Polar's assets include grain-storage silos and two buildings
that housed former flour and cooking oil processing plants. The
Company reportedly shut those operations, but continues to
operate the grain-storage facilities.

"Owners usually close down companies, they take the money and
leave behind debts. That's an abuse of the law and of the
Venezuelan people," Chavez said.

Chavez's comments contradict earlier reports that suggested
Alimentos Polar has reached an agreement with the government in
a deal that would see an end to the expropriation of the
Company's grain storage facilities.

According to these reports, the Company signed the agreement
with Agriculture and Land Minister Antonio Albarran, who ordered
the military on Aug. 28 to seize Polar's silos in the
southwestern state of Barinas, saying that the installations
were practically inactive.


CADAFE: Subsidiaries Suffer Power Outage
----------------------------------------
A transmission line fault caused power outage to subsidiaries of
Venezuelan state power company Cadafe on Monday afternoon,
Business News Americas reports.

The malfunction in the 400kV transmission line that links
Cadafe's Centro thermoelectric plant to the city of Yaracuy
affected Cadafe subsidiaries Enelven, Enelco, Enelbar and
Eleoccidente and caused a blackout in the western part of the
country.

According to a Cadafe source, only one out of the two
transformers is in service in the Yaracuy substation. One was
disabled by a fire a few days ago. The replacement unit is still
on its way.

The country's national grid suffered 62 major failures of over
100MW this year compared to the 31 incidents recorded for the
same period last year, grid operator Opsis noted in its latest
daily report.

Cadafe is the country's largest transmission and distribution
company with over 15,000km of lines and more than 100
substations in operation.


EDC: S&P Affirms 'B' Rating; Assigns Stable Outlook
---------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on C.A. La Electricidad de Caracas
(EDC), and its 'B' rating on Electricidad de Caracas Finance
B.V.'s $260 million senior unsecured notes. The outlook is
stable.

Entities in the Bolivarian Republic of Venezuela (B+/Stable/B)
continue to face high risk, even as the credit quality of the
sovereign itself has improved. Pervasive country risk factors
endemic to Venezuela heighten the operating and financial risk
facing industrial and financial corporations. Country risk is a
significant credit rating factor for industrial companies rated
by Standard & Poor's.

On Aug. 12, 2005, we raised our long-term local and foreign
currency sovereign credit ratings on Venezuela to 'B+' from 'B'.
Our decision to raise our ratings on Venezuela was supported by
the continued sharp improvements in Venezuela's external
indicators, which are attributable to a large current account
surplus, a high level of international reserves, and lower
external debt.

Country risk is responsible for the growing differential between
the sovereign rating and the ratings on industrial corporations.
The key elements of Venezuelan country risk (i.e., the risk
faced by companies operating in the country, as opposed to the
default risk of the Bolivarian Republic of Venezuela) include
high political risk, politically motivated application of
foreign exchange controls (through the Comision de dministracion
de Divisas; CADIVI), domestic price controls, and currency
devaluation risk. Combined with Venezuela's huge government
bureaucracies, these key elements result in heavy administrative
burdens on business. The lack of an independent judiciary,
apparently widespread corruption, a concentrated economic
structure that is highly dependent on the oil and gas sector,
and a weak domestic banking system are other problematic
features of the Venezuelan landscape. With the sharp
improvements in Venezuela's external indicators boosting its
credit quality, the gap between sovereign and corporate credit
ratings in Venezuela has increased in recent times.

"Additionally, the ratings on EDC and its related entities are
constrained by a still incomplete and untested regulatory regime
with historical resistance to rate adjustments, as well as EDC's
reliance on a single natural gas and fuel oil supplier,
government-owned Petroleos de Venezuela S.A., to meet the fuel
needs of its generation assets," said Standard & Poor's credit
analyst Federico Mora. These factors are partially mitigated by
EDC's strong operations in its service area, with a customer mix
basically composed of residential and commercial clients
(together representing about 70% of sales); high coverage ratios
and low leverage for its rating category; EDC's operations being
the most efficient among electric utilities in Venezuela; recent
efforts by the government to reduce its accounts payable to EDC;
and the group's integration and synergy among distribution,
generation, and commercialization. Additionally, since CADIVI's
inception, EDC has not faced any serious delay in accessing
resources, as it as effectively managed the formal procedures
required by CADIVI to have access to foreign currency.

EDC is a vertically integrated utility in Venezuela, operating
in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area. It is the
largest private electric utility in the country and is owned by
U.S.-based AES Corp. (B+/Positive/--). We do not expect support
from the parent company to be a meaningful credit factor for
EDC.

The stable outlook reflects our expectation that EDC will
continue to avoid delays in the CADIVI's formal procedures to
have timely access to foreign currency and perform scheduled
debt repayments. The ratings could be pressured downward if the
company's financial profile considerably deteriorates and if its
current business strength suffers from potential changes in the
economic and political situation of Venezuela. In contrast, a
sharp improvement in the political and regulatory environment
would be needed for an upgrade.

Primary Credit Analyst: Federico Mora, Mexico City
(52) 55-5081-4436; federico_mora@standardandpoors.com

Secondary Credit Analyst: Fabiola Ortiz, Mexico City
(52) 55-5081-4449; fabiola_ortiz@standardandpoors.com




                            ***********


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
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