TCRLA_Public/050930.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

          Friday, September 30, 2005, Vol. 6, Issue 194



CLINICA LOS CEDROS: Claims Filing Deadline Set
DUQUE SEGURIDAD: General Report Due Monday
GIAC GAS: Individual Claims Report Expected October 3
KEY ENERGY: Filing Delay Prompts Senior Note Acceleration
NORVEGA S.A.: Trustee to Present Individual Reports Monday

SERVI TRA: Claims, Accounting Audit to be Submitted Oct. 3


FOSTER WHEELER: Awarded Major Refinery Project in Bahrain
PXRE GROUP: Issues Preliminary Estimate of Hurricane Rita Impact


BANCO SANTOS: Selling Off Credit Portfolios
BEC: Privatization Auction Set for October 13
ELETROPAULO METROPOLITANA: Struggles to Curb Power Theft


FIBRATOLIMA: Vicunha Aspires to Acquire Company
TELECOM: Favors Auction Over Stake Sale to Telmex


* GRENADA: S&P Assigns 'B-' Rating to Proposed Bonds


C&W JAMAICA: Attempts to Lure Back Customers By Reducing Rates


AEROMEXICO: Pilots Get 3% Raise
ASARCO: Court Authorizes Smithco Agreement Assumption
GRUPO ELEKTRA: GDSs for Common Shares Exchange Period Expires
DESARROLLADORA HOMEX: Places $250M Senior Guaranteed Notes
METALFORMING TECHNOLOGIES: Court Sets Claims Filing Deadline

TFM: S&P Assigns 'BB+' to KCS Credit Facility; Outlook Negative

T R I N I D A D   &   T O B A G O

BWIA: Government to Create New Entity from Restructured Airline


* URUGUAY: IMF Completes First Stand-By Arrangement Review


ALIMENTOS POLAR: Plans Court Battle Over Silo Takeovers
H.J. HEINZ: Government to Pay $255,814 for Plant Seizure

     - - - - - - - - - -


CLINICA LOS CEDROS: Claims Filing Deadline Set
The verification of creditors' claims for the Clinica Los Cedros
de Tapiales S.A. insolvency case is set to end on Nov. 21, 2005,
states Infobae. Accounting firm Estudio Abigador, Collia y
Vighenzoni was appointed trustee, tasked with examining the
claims. The trustee will submit the validation results as
individual reports on Feb. 2, 2006, followed by the presentation
of the general report in court on March 16, 2006.

On Aug. 25, 2006 next year, the company's creditors will vote on
the settlement proposal prepared by the company. Infobae adds
that Court No. 15 of Buenos Aires' civil and commercial tribunal
handles the Company's reorganization case. Clerk No. 30 assists
the court in the proceedings.

CONTACT: Estudio Abigador, Collia y Vighenzoni
         Uruguay 856
         Buenos Aires

DUQUE SEGURIDAD: General Report Due Monday
The general report on the bankruptcy of Duque Seguridad S.A.
will be submitted on Monday, Oct. 3, 2005. Court No. 5 of Buenos
Aires' civil and commercial tribunal declared Duque Seguridad
S.A. bankrupt after the Company defaulted on its debt payments.
Mr. Guillermo Alejandro Torres was appointed trustee.

Mr. Torres verified the authenticity of claims presented by the
Company's creditors. The verification phase ended on June 23,

Following claims verification, the trustee submitted the
individual reports based on the forwarded claims for final
approval by the court on Aug. 22, 2005.

Clerk No. 9 assists the court on this case.

CONTACT: Mr. Guillermo Alejandro Torres, Trustee
         Avda Corrientes 922
         Buenos Aires

GIAC GAS: Individual Claims Report Expected October 3
The individual claims of creditors against Giac Gas S.A., a
company operating in Buenos Aires, will be presented in court on
Monday, Oct. 3, 2005. The claims underwent verification until
July 8, 2005.

The Company began reorganization proceedings after Court No. 16
of the city's civil and commercial tribunal, with assistance
from Clerk No. 32, granted its motion for "concurso preventivo".

The reorganization is being conducted under the direction of
accounting firms "Estudio Martinez Angelini y Asociados",
"Chiaia, Sotlzing y Asociados" and "Disanto, Fazio, Fr", who
serve as co-trustees.

The trustee will present an audit of the Company's accounting
and business records through a general report due on Dec. 14,

An informational assembly for the Company's creditors is
scheduled on Aug. 2 next year.

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

         "Chiaia, Sotlzing y Asociados"
          Suipacha 190
          Buenos Aires

KEY ENERGY: Filing Delay Prompts Senior Note Acceleration
Key Energy Services, Inc. (OTC Pink Sheets: KEGS) announced
Wednesday that it has received valid acceleration notices from
Cede & Co., acting at the request of holders ("Noteholders") of
$51.6 million in principal amount of the Company's $150 million
6.375% Senior Notes due 2013 (the "Notes").  As previously
disclosed, holders of 25% or more of the outstanding principal
balance of the Notes have the right to accelerate the Notes as a
result of the Company's failure to file its Annual Report on
Form 10-K for the year ended December 31, 2003 within the
periods permitted under the indenture, as amended.  The
Company previously received notices from Noteholders that were
defective in certain respects; the most recent notices cure
these defects.  The Company expects to receive a formal demand
for repayment of the Notes from the indenture trustee, following
which the Company will repay the Notes.

Also as previously disclosed, in July 2005 the Company obtained
a $547.25 million Senior Credit Facility, which includes a $400
million seven-year Delayed Draw Term Loan B Facility.  The
Delayed Draw Term Loan B Facility is available to repay the
6.375% Notes.  The Company anticipates that it will borrow $150
million under this Facility to repay the outstanding principal
of the Notes promptly after demand is received from the trustee.
The Company will also pay accrued interest on the Notes and the
indenture trustee's fees and expenses, which it will fund from
cash on hand.  At September 26, 2005, cash and short term
investments totaled approximately $102 million.

As a result of the failure to file the 2003 Form 10-K report,
the holders of the Company's 8.375% Senior Notes due 2008 also
have the right to accelerate the notes and demand repayment in
full.  To date, the Company has not received any notice of
acceleration with respect to these notes.  The balance of the
Delayed Draw Term Loan B Facility is available to repay these
notes, if necessary.

Key Energy Services, Inc. is the world's largest rig-based well
service company.  The Company provides oilfield services
including well servicing, contract drilling, pressure pumping,
fishing and rental tools and other oilfield services.  The
Company has operations in essentially all major onshore oil and
gas producing regions of the continental United States and
internationally in Argentina.

CONTACT:  John Daniel
          (713) 651-4300

NORVEGA S.A.: Trustee to Present Individual Reports Monday
"Estudio Martinez Angelini y Asociados", "Chiaia, Sotlzing y
Asociados" and "Disanto, Fazio, Fr", the court-appointed
trustees, will submit the individual reports on creditors'
claims against Norvega S.A. on Monday, Oct. 3, 2005.

The verification of creditors' claims for the Company insolvency
case ended on July 8, 2005.

The trustees will also present a general report in court on
Dec. 14, 2005. On Aug. 2 next year, the Company's creditors will
vote on the settlement proposal prepared by the Company.

Court No. 16 of Buenos Aires' civil and commercial tribunal
handles the Company's reorganization. Clerk No. 32 assists the
court with the proceedings.

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

         "Chiaia, Sotlzing y Asociados"
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Tucuman 1367
          Buenos Aires

SERVI TRA: Claims, Accounting Audit to be Submitted Oct. 3
The deadline for the submission of the individual reports on
creditors' claims against Servi Tra S.A. will be on Monday, Oct.
3, 2005. The claims were verified until July 8, 2005.

After the submission of individual reports, the general report
on the Company's insolvency case will be presented on Dec. 14,
2005. The Company began reorganization following the approval of
its petition by Court No. 16 of Buenos Aires' civil and
commercial tribunal.

Local accounting firms "Estudio Martinez Angelini y Asociados",
"Chiaia, Sotlzing y Asociados", "Disanto, Fazio, Fr" will
oversee the reorganization proceedings as the court-appointed

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on Aug. 2 next year.

Clerk No. 32 assists the court on this case.

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

         "Chiaia, Sotlzing y Asociados"
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Tucuman 1367
          Buenos Aires


FOSTER WHEELER: Awarded Major Refinery Project in Bahrain
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Wednesday that its
Milan-based subsidiary Foster Wheeler Italiana S.p.A. has been
awarded an engineering, procurement and construction (EPC)
contract by The Bahrain Petroleum Company B.S.C. (BAPCO) for a
refinery gas desulfurization (RGD) project at its refinery
located near Sitra, on the east coast of the Kingdom of Bahrain.
BAPCO is wholly owned by the Government of the Kingdom of
Bahrain. The value of the lump-sum turnkey contract is
approximately $112 million and it will be included in Foster
Wheeler's third-quarter 2005 bookings.

The RGD project is one of a number of projects which form part
of BAPCO's planned $1 billion refinery upgrading program. The
purpose of the RGD project is to remove sulfur from the refinery
gas streams, treat all sour water to meet government
environmental legislation and meet hydrogen sulfide
specifications for selected streams where required, to allow
export of the LPG-rich streams.

"We are very pleased that BAPCO has demonstrated confidence in
our ability to deliver a successful project," said Umberto della
Sala, chief executive officer of Foster Wheeler's Global
Engineering and Construction Group. "In addition, this award
represents an opportunity for Foster Wheeler to further expand
its presence in the Middle East countries and demonstrates our
ability to compete on a lump-sum turnkey basis in the region."

The project includes the installation of several new grassroots
process plants, including a 220 tonnes per day sulfur recovery
unit, a tail gas treating unit, two sour water stripping units,
an olefinic gas treatment unit and low flow-off gas streams
treatment. Foster Wheeler will also revamp the existing
Diethanolamine unit and provide interconnections between other
process and utilities units and the new facilities. Completion
of the RGD project is scheduled for the fourth quarter of 2007.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

         Media: United States - Maureen Bingert
         Tel: 908-730-4444

         Italy - Cristiana Monti
         Tel: +39 02 4486 2135

         Other Inquiries: 908-730-4000

PXRE GROUP: Issues Preliminary Estimate of Hurricane Rita Impact
PXRE Group Ltd. (NYSE: PXT) announced Wednesday that its
preliminary estimate of the net impact from Hurricane Rita is
between $30 million and $40 million, after tax, reinsurance
recoveries on its outwards reinsurance program and the impact of
reinstatement premiums.

Based on the Company's preliminary estimate of loss from
Hurricane Rita and its previously announced preliminary range of
loss from Hurricane Katrina, the Company now expects to report a
net loss of $125 to $220 million for 2005, assuming no
additional material catastrophes occur during the rest of 2005.
For the quarter ending September 30, 2005, PXRE expects to
report a net loss of between $230 to $320 million, which is
expected to result in a diluted book value range of
approximately $13.10 to $15.75 per share as of September 30,

The Company's preliminary estimates of its net losses from
Hurricane Rita and Hurricane Katrina are primarily based on
modeling and a review of all exposed reinsurance contracts. The
Company has received a very limited number of loss notices from
clients with respect to Hurricane Rita. The Company has begun to
receive loss notices with respect to Hurricane Katrina, but most
of these notices are precautionary in nature with no supporting
loss information. It is difficult to accurately estimate losses
in the immediate aftermath of any major catastrophe. Moreover,
the unique circumstances of Hurricane Katrina, including the
unprecedented level of flooding and limited access by claims
adjustors, make our estimates subject to a higher level of
uncertainty than normal. In addition, further uncertainty is
created by potential legal and regulatory issues, including
potential extra contractual liability for flooding and extremely
complex and unique causation and coverage issues associated with
the attribution of losses to wind or flood damage or other
perils such as fire, business interruption or civil commotion.
The ultimate impact of losses from Hurricane Katrina and
Hurricane Rita on the Company's results of operations might
therefore differ substantially from the Company's current

PXRE -- with operations in Bermuda, Europe and the United States
-- provides reinsurance products and services to a worldwide
marketplace. The Company's primary focus is providing property
catastrophe reinsurance and retrocessional coverage. The Company
also provides marine, aviation and aerospace products and
services. The Company's shares trade on the New York Stock
Exchange under the symbol "PXT."

          John Modin, Chief Financial Officer
          Tel: +1-441-296-5858

          Citigate Sard Verbinnen for PRXE Group Ltd.
          Investors: Jamie Tully
          Tel: +1-212-687-8080


BANCO SANTOS: Selling Off Credit Portfolios
The government-appointed administrator of Banco Santos intends
to auction off the failed bank's credit portfolios through a
public auction. Vanio Aguiar, the government-appointed manager
of the bank, said he plans to sell consumer credit portfolios
worth BRL5 million ($1= BRL2.25), serving 15,000 clients, and
corporate portfolios worth BRL50 million, serving 750 clients.
Aguiar, however, did not set a date for the possible auctions.

Banco Santos and its brokerage were intervened in November last
year due to financial problems and alleged irregularities.
Earlier this month, a local court ordered the liquidation of
Banco Santos, a process that could result in losses for the
bank's 1,500 creditors of most of the outstanding BRL2.9 billion
in debts.

The plan to auction the loan portfolio forms part of a bigger
plan to recover assets and pay creditors that will be presented
to a judge at the end of November.

Banco Santos is a wholesale bank that was geared mainly towards
corporate banking and chiefly focused on the medium-sized
enterprise segment. Santos was ranked as Brazil's 21st largest
bank in January in terms of assets.

BEC: Privatization Auction Set for October 13
The Brazilian Central Bank announced Wednesday that the
privatization auction of state-owned bank Banco do Estado do
Ceara (BEC) will be held on Oct. 13 at the Sao Paulo Stock
Exchange (Bovespa). The auction was originally planned for
September 15, but was suspended by the central bank after the
Supreme Court ruled that the buyer of BEC will not be entitled
to maintain the bank's traditional monopoly over state
government accounts, including state employee salary accounts.

The central bank suspended the BEC auction in order to evaluate
the effects of the ruling. One of the main attractions of BEC
was that the winner would have an exclusive right to handle the
government's deposits for a five-year period.

The central bank said it was going ahead with the privatization,
on the new date, despite the ruling. The bank did not alter the
minimum price in the auction.

The minimum price for BEC had been set at BRL542 million
(US$242mn). Brazil's federal government owns 99% of BEC, and the
bank's employees will have a chance to buy 10% of the government
shares at a discount.

Four bidders are in the running to buy BEC. They include
Brazil's three largest private banks, Banco Bradesco (BBD),
Banco Itau (ITU) and Uniao de Banco Brasileiros (UBB). The
fourth bidder is GE Capital.

BEC operates 70 branches and has 278,000 clients. The
institution administers assets of about BRL1.6 billion and
posted a profit of BRL65.8 million in 2004, according to the
latest financial figures provided by the bank.

ELETROPAULO METROPOLITANA: Struggles to Curb Power Theft
Power distribution outfit Eletropaulo Metropolitana has outlined
plans to boost spending on its anti-power theft program to BRL61
million (US$27mn) in 2005 and BRL84 million in 2006 from BRL43
million in 2004, Business News Americas reports.

The measure is part of the Company's two-year program to reduce
commercial losses amid growing power theft in poor regions and
shantytowns in the Sao Paulo city area, said program coordinator
Arnaldo da Silva Neto.

"We realized we had been concentrating on fighting fraud and had
forgotten about the power theft, which was just as bad and
growing," he said.

The Company managed to slash commercial losses slightly to 7.3%
of total revenue in September 2005 from 8% at the end of 2003
and 7.8% at the end of 2004. Of these losses, one third comes
from fraud and two-thirds from power theft said Neto.

According to Neto's estimates, this represents some 3,000GWh a
year stolen from the Company, or a loss of some BRL900 million a
year, Mr. Neto said.

"We managed to reduce our losses by BRL300 million so far but
now we need to reduce them further," he said.

Eletropaulo hopes to cut losses to some BRL400 million, or 3% of
total power sales by 2009.

"This is an optimum level. Any further reduction would cost too
much for too little return," he said, pointing out that from
2007 the Company would have to constantly invest BRL70 million a
year to maintain losses at around 3%.

The upcoming sale of Electricite de France's (EdF) share in
electric power company Light Servicos de Eletricidade SA has
attracted the interest of electric power utility Companhia
Energetica de Minas Gerais SA (CEMIG). CEMIG is one of 37
companies that have confirmed their interest in buying a stake
in Light to US investment bank Goldman Sachs, which is managing
the sale. CEMIG is now awaiting a package of financial
information about Light from Goldman Sachs.

EdF, which owns 94.8% of Light, revealed in June it was
interested in bringing new investors into Light as part of the
restructuring of the unit's BRL1.77 billion ($1=BRL2.25) in

Earlier this year, Light completed lengthy debt and
restructuring talks. As part of the restructuring, Light shifted
some of its shares to the Novo Mercado mechanism of Sao Paulo's
Bovespa stock exchange.

The Novo Mercado has more demanding corporate governance
requirements than regular listings. For instance, it requires
Light to raise its free float above 25%, from the current 5.2%,
within three years.

The move to Novo Mercado was required by Brazil's National
Development Bank, or BNDES, which will now subscribe to BRL727
million in debentures to be issued by Light, using funds from
its special financing program for electric power utilities.

As part of the restructuring, EdF converted credits worth some
US$400 million into shares in Light. Light also renegotiated
US$660 million of debt owed to eight banks and seven hedge
funds, lengthening maturities and reducing costs.

          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


FIBRATOLIMA: Vicunha Aspires to Acquire Company
Representatives of Brazilian firm Vicunha Textil met with
Colombian President Alvaro Uribe Tuesday to discuss about the
possibility of acquiring local firm Fibratolima. According to
Reuters, the discussions focused on concerns that the Brazilians
had about Colombian business standards.

Fibratolima is based in the central Colombian city of Ibague. It
has capacity to produce 700 tonnes of yarn per month and 1.4
million meters of woven fabric.

The Troubled Company Reporter - Latin America reported in June
this year that the Company has debts totaling COP70 million,
most of which are owed to state entities. Since its creation in
1988, the Company had consistent working capital problems due to
the high level of debt it incurred with the purchase of
equipment. These problems eventually caused a lack of resources
for the purchase of raw materials and inventory.

In March 2002, Fibratolima closed its plants and entered into
bankruptcy restructuring proceedings.

Last year, the Superintendencia de Sociedades, the government
agency in charge of liquidations, ordered its liquidation after
the Company failed to reach an accord with its creditors over
some changes in the conditions of its debt-restructuring plan
under Colombia's bankruptcy laws.

Standard & Poor's Ratings Services affirmed its 'BBB' local
currency and 'BB' foreign currency long-term corporate credit
ratings on Interconexion Electrica S.A. E.S.P. (ISA). The
outlook is stable.

"The ratings on ISA reflect its dominant position in Colombia's
National Transmission System, the company's strategic importance
for the Republic of Colombia, the company's natural monopoly,
the government's ownership, and the expectations of stable
financial performance during the next years," said Standard &
Poor's credit analyst Fabiola Ortiz. These strengths are
mitigated by the risks of operating in the economic and
political environment of Colombia and the risk of foreign
exchange, along with the increased exposure to more volatile

ISA is an important participant in the Colombian power and
telecommunications sectors, where it operates 80% of the
country's transmission grid, 79% of the transmission network in
Peru (LC: BB+/Positive/--; FC: BB/Positive/--), and 53% in
Bolivia (B-/Negative/--). It also operates and administers the
Colombian power market and coordinates the short-term
international electricity transactions between Colombia (LC:
BBB/Stable/--; FC: BB/Stable/--) and Ecuador (CCC+/Watch Neg/--

The existing system in Colombia is a natural monopoly. The
government has tried to introduce more competition into the
system by putting out new transmission lines for bid.
Nevertheless, ISA's technical and financial capabilities have
allowed it to win most of the bids for the projects.

The Republic of Colombia remains ISA's main shareholder with 59%
of the shares, while the general public is the second largest
with 28%, followed by Empresas Publicas de Medellin and Empresa
de Energia de Bogota, with participations of 11% and 2%,
respectively. The interest of the Colombian government to sell
some participation continues, which is expected to take place
during the next couple of years. We view government ownership as
an important factor for maintaining a close link between the
sovereign rating and the rating on ISA, specially regarding the
debt issued by the holding company. Nevertheless, ISA's
international operations aren't seen by Standard & Poor's as
strategic for the Colombian government; thus, the close link
between the ratings could change.

ISA has been focusing on gaining presence in the region through
full transmission networks. We view this increased exposure to
riskier economies as a potential source of additional pressure
for the company. Notwithstanding the above, we see the
interconnection lines as positive for the country. Moreover,
ISA's diversification efforts are also focused on building a
presence in the country's telecommunications industry through
its companies Flycom and Internexa.

ISA created a new subsidiary called XM Compa¤Ħa de Expertos en
Mercados to manage financial transactions in the electricity and
gas wholesale markets internal and externally. XM will perform
the functions currently carried out by the national dispatch
center (CND), the commercial exchange system administrator
(ASIC), and the national transmission system's bill payment
administrator (LAC). This subsidiary started operations at the
beginning of this month. In our opinion, this new subsidiary
will contribute to the integration of the operation and
administration of the market and its transparency, and does not
represent a source of additional cash flow, nor is it expected
to imply additional leverage for the company.

The stable outlook reflects ISA's dominance of the transmission
market in Colombia, being majority owned by the Republic of
Colombia, and its operation in a proven and stable regulatory
framework. We expect the company to be able to continue
presenting satisfactory financial and operational performance.
Nevertheless, any underdevelopment in Colombia, a government-
ownership decrease of more than 51%, or an aggressive investment
plan in other countries without generating free cash flow could
pressure the local currency rating downward.

Primary Credit Analyst: Fabiola Ortiz, Mexico City (52) 55-5081-

Secondary Credit Analyst: Federico Mora, Mexico City (52) 55-

TELECOM: Favors Auction Over Stake Sale to Telmex
State-controlled Colombia Telecomunicaciones (Telecom) decided
against signing a tentative agreement to sell a stake to
Mexico's Telmex (NYSE: TMX). Instead, the Company will hold an
auction so other potential buyers can bid for the carrier.

"We will always seek the best offer," Telecom President Alfonso
Gomez said Wednesday, adding that he "hopes" Telmex's owner,
billionaire Carlos Slim, will take part in the bidding.

Telmex had offered to invest US$350 million in Telecom for a
stake of 50% plus one share of the Colombian company and also
assume pension and other liabilities worth US$3.3 billion from
Telecom's liquidated predecessor.

Telecom's decision to cancel the sale to Telmex was made after
the country's Comptroller-General Antonio Hernandez questioned
the legality of the agreement and the failure to allow open
competition for the purchase.

Telecom agreed to follow Hernandez's suggestions for a third-
party valuation of the Company and to make the deal transparent.

The Colombian government owns 99.99% of Telecom. The remainder
is held by state companies like oil producer Ecopetrol.


* GRENADA: S&P Assigns 'B-' Rating to Proposed Bonds
Standard & Poor's Ratings Services assigned its 'B-' rating to
Grenada's proposed step-up U.S. dollar and Eastern Caribbean
(EC) dollar bonds due Sept. 15, 2025. (The size of the issue
will be determined by the participation rate in the proposed
debt exchange, which has an Oct. 7, 2005, participation
deadline.) The rated bonds will be tendered in exchange for the
following rated defaulted securities: US$100 million 9.375% bond
due 2012, and US$41.5 million 7.15% bond due 2014; and for
approximately US$47 million and EC$238 million (or US$88
million) of unrated securities.

Upon completion of the exchange offer, Standard & Poor's expects
to raise its long-term foreign currency sovereign credit rating
on Grenada to 'B-' from 'SD', its long-term local currency
sovereign credit rating to 'B-' from 'CCC', and its short-term
foreign currency rating to 'C' from 'SD'. The new ratings will
incorporate Standard & Poor's expectation that the successfully
completed debt restructuring, combined with the ongoing strong
donors' support and necessary fiscal adjustment, will alleviate
fiscal pressure and the government's debt service.

According to Standard & Poor's credit analyst Olga Kalinina, all
of Grenada's external bonds, domestic and external commercial
loans, all but one domestic bond, and five of the sovereign's 17
guaranteed claims are included in the exchange offer. The offer
excludes bilateral and multilateral debt and the government's
Treasury bills.

"The principal amount of the new bonds will equal that of the
exchanged obligations (US$277 million) plus the interest accrued
but unpaid on them through Sept. 15, 2005," said Mrs. Kalinina.
"At the same time, the new bonds will have longer maturities and
a lower average coupon than the sovereign's original debt
obligations; specifically, the offered step-up schedule
envisages an interest rate on new bonds of 0.85% payable during
the first three years (2005-2008) and then rising to 8% by
2015," she added.

The ratings on the new bonds are contingent upon the successful
completion of Grenada's debt exchange, with the tender of at
least 85% of the total principal amount of eligible claims
required for the closure of the offer.

"Grenada's new bond rating is constrained by a high government
debt burden and large fiscal deficits, as well as by the
continuing challenge of restructuring the island's economy,
which was devastated by Hurricane Ivan," Mrs. Kalinina noted.
"However, Grenada's economy is expected to enter a recovery
phase in 2006, reflecting the rebound of tourism and
agriculture. The rating is also supported by the government's
expected commitment to prudent fiscal management," she

Primary Credit Analyst: Olga Kalinina, CFA, New York (1) 212-

Secondary Credit Analyst: Helena Hessel, New York (1) 212-438-


C&W JAMAICA: Attempts to Lure Back Customers By Reducing Rates
Cable and Wireless Jamaica will slash the rates charged to its
mobile customers, Radio Jamaica reports. After enduring a loss
of market share to other cellular service providers, Cable and
Wireless came up with a new plan to increase the number of its

According to the Company's CEO Rodney Davis, the plan will allow
customers to pay up to 45% less to call other cellular networks.

The new plan will also allow persons to trade in their handsets
from other networks for new Cable and Wireless equipment at
reduced prices, Davis said.

The Company's customers were paying $10 per minute during peak
time, $7 during off peak hours to call other customers on the
Company's network and $17.50 per minute for cellular calls to
other networks.

Under the new system, customers will pay $8 up from $7 to call
other Cable and Wireless cellular phones during the off peak
period and pay the same to call other networks.

The $10 a minute during peak will remain for calling within the
CW network. It will become the new charge for calling other
networks, having shaved off $7.50.

Davis stated that some $100 million will be spent on advertising
and marketing its new campaign and some millions to ensure that
its network can accommodate the additional customers it is
expecting to attract.


AEROMEXICO: Pilots Get 3% Raise
Some 800 unionized pilots of Mexican airline Aeromexico are to
receive a 3% salary increase, reports Dow Jones Newswires. The
increase is part of an agreement that was reached between the
Company and pilots ahead of Friday's deadline.

Aeromexico is one of two carriers that the government is in the
process of privatizing. The airline, along with Mexicana, is
controlled by Cintra SA (CINTRA.MX). Bids for the two airlines,
which are being sold separately, are due Nov. 21.

ASARCO: Court Authorizes Smithco Agreement Assumption
The Honorable Judge Schmidt of the U.S. Bankruptcy Court for the
Southern District of Texas gave ASARCO LLC authority to assume
the Smithco Agreement and to cure a $41,480 outstanding default.
As previously reported in the Troubled Company Reporter on Sept.
7, 2005, ASARCO, Inc., entered into an executory contract with
Smithco Enterprises, Inc., on Dec. 15, 2004.

Under the Agreement, Smithco Enterprises provides field
engineering, labor, materials, transportation, tools, equipment,
and other facilities for the production and delivery of flash
furnace flux and converter flux.

ASARCO asserts that the Smithco Agreement provides ongoing value
to its estates.  Smithco Enterprises has an ongoing favorable
business relationship with ASARCO, providing services under
other contracts.  In addition, Smithco's siliceous flux
production facility is located near ASARCO's Ray Complex at
Hayden, Arizona, which makes Smithco Enterprises a particularly
convenient and cost-effective business partner.

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

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-
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. 6; Bankruptcy Creditors' Service, Inc., 215/945-7000).

GRUPO ELEKTRA: GDSs for Common Shares Exchange Period Expires
Grupo Elektra S.A. de C.V. (BMV: ELEKTRA*; Latibex: XEKT), Latin
America's leading specialty retailer, consumer finance and
banking and financial services company, announced Wednesday that
as it was previously informed, the period throughout which
holders of Grupo Elektra Global Depositary Shares (GDSs) can
exchange their GDSs for Grupo Elektra common shares, which are
currently traded on the Mexican Stock Market (BMV), will expire
on September 29, 2005.

As has been detailed in the Company's prior press releases, GDS
holders have had a 60-day period, which started on August 1,
2005, to exchange their GDSs for common shares traded on the
BMV. Since September 30, 2005, The Bank of New York (BoNY) will
be allowed to sell the common shares underlying the GDSs that
were not surrendered and distribute the proceeds of such sale to
holders of the remaining GDSs. The Company understands from BoNY
that BoNY is expected to sell the common shares 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, 91.23% of Grupo
Elektra's shareholders approved the termination of the GDS
program, after an analysis and discussion of the costs and
benefits of a continued listing on a U.S. national securities

Grupo Elektra is Latin America's leading specialty retailer,
consumer finance and banking services company. Grupo Elektra
sells retail goods and services through its Elektra, Salinas y
Rocha, Bodega de Remates and Elektricity stores and over the
Internet. The Group operates more than 1,000 stores in Mexico,
Guatemala, Honduras and Peru. Grupo Elektra also sells and
markets its consumer finance, banking and financial products and
services through approximately 1,400 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama. Banking and financial services
include loans, electronic money transfer services, extended
warranties, demand deposits, pension-fund management, insurance,
and credit information services.

CONTACT: Grupo Elektra S.A. de C.V.
         Dinorah Macias
         Investor Relations
         Phone: 52 (55) 1720-7821
         Fax: 52 (55) 1720-7822

         Rolando Villarreal
         Investor Relations
         Phone: 52 (55) 1720-7819
         Fax: 52 (55) 1720-7822

         Bruno Rangel
         Director of Investor Relations
         Grupo Salinas
         Phone: 52 (55) 1720 9167
         Fax: 52 (55) 1720 0831

DESARROLLADORA HOMEX: Places $250M Senior Guaranteed Notes
Desarrolladora Homex, S.A. de C.V. (Homex or the Company) (NYSE:
HXM) (BMV: HOMEX) has settled US$250 million of 7.55% Senior
Guaranteed Notes due 2015 in an offering to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act of 1933 and to non-U.S. buyers in reliance to Regulation S
under the Securities Act of 1933. The Company hedged the
principal of the Notes with an instrument that brings the fixed
interest rate to approximately 10.4%, the lowest interest rates
in the Mexican housing sector.

The securities are first of their kind in size, rate and
maturity for a homebuilding company in Mexico, which reaffirms
Homex's leadership in the sector, as well as structuring equity
and debt transactions.  The spread for these instruments is the
lowest among peers in Mexico and the U.S. Upon issuance of the
Notes the Company will not face debt principal payments in the
next three years, strengthening its financial position.

"The completion of this placement is another important step for
Homex, strengthening our balance sheet as we continue to grow
our operations and consolidate our position in the market after
the acquisition of Casa Beta," said Gerardo de Nicolas, Homex's
Chief Executive Officer.  "Our NYSE listing and strong corporate
governance structure were critical to achieving favorable terms
and structuring this offering."

The Company intends to use the proceeds of the offering to repay
approximately US$215 million of existing indebtedness, or
approximately 81% of its total outstanding debt.

The Company intends to repay US$164 million short-term
indebtedness, including commercial paper instruments of US$69
million, bank debt of US$38 million, bridge loans of US$32
million, and structured local bonds of US$25 million. Homex also
intends to repay approximately US$50 million of its existing
US$100 million five-year banking facility.  As part of the
repayment, the more-expensive short-term bridge loans from the
recently acquired Casas Beta will be replaced by the Notes which
bear better financial terms and conditions.  The Company intends
to use the remaining net proceeds from the sale of the notes for
working capital and general corporate purposes.

The issuance of the Notes is intended to strengthen the
Company's balance sheet by extending the average maturity of its
debt obligations from an average of three years to an average of
more than eight years.  The total outstanding unsecured debt of
the Company after the repayments will remain at the US$300
million level, although net debt levels will be lower,
consistent with Homex management's strategy to maintain a
conservative financial posture.

About Homex

Desarrolladora Homex, S.A. de C.V. is a leading, vertically-
integrated home development company focused on affordable-entry
level and middle-income housing in Mexico. It is one of the most
geographically diverse home builders in the country. Homex is
the largest homebuilder of the publicly listed home builders in
Mexico, based on the increase in number of homes sold, revenues
and net income.

Web site:

METALFORMING TECHNOLOGIES: Court Sets Claims Filing Deadline
The U.S. Bankruptcy Court for the District of Delaware set Oct.
20, 2005 at 4:00 p.m., as the deadline for all creditors owed
money by Metalforming Technologies, Inc., and its debtor-
affiliates on account of claims arising prior to June 16, 2005,
to file formal written proofs of claim.

Governmental Units have until Dec. 13, 2005 to file formal
written proofs of claim.

Original proofs of claims must be delivered to:

      Metalforming Technologies, Inc.
      Claims Processing Center
      P.O. Box 5115, FRD Station
      New York, New York 10150-5115

or to the Debtors' claims agent at:

      Metalforming Technologies, Inc.
      Claims Processing Center
      c/o Bankruptcy Services LLC
      757 Third Avenue, 3rd Floor
      New York, New York 10017

Creditors wishing to receive confirmation of the claims agents'
receipt of their proof of claim must submit, along with their
original proof of claim:

     a) a copy of the submitted proof of claim; and
     b) self-addressed, stamped, return envelope.

Headquartered in Chicago, Illinois, Metalforming Technologies,
Inc., and its debtor-affiliates manufacture seating components,
stamped and welded powertrain components, closure systems,
airbag housings and charge air tubing assemblies for automobiles
and light trucks.  The Company and eight of its affiliates,
filed for chapter 11 protection on June 16, 2005 (Bankr. D. Del.
Case Nos. 05-11697 through 05-11705).  Joel A. Waite, Esq.,
Robert S. Brady, Esq., and Sean Matthew Beach, Esq., at Young
Conaway Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  As of May 1, 2005, the Debtors reported
$108 million in total assets and $111 million in total debts.
(Troubled Company Reporter, Sep. 28, 2005, Vol. 9, No. 230)

TFM: S&P Assigns 'BB+' to KCS Credit Facility; Outlook Negative
Standard & Poor's Ratings Services assigned its 'BB+' rating to
Kansas City Southern's revolving credit facility maturing in
2007, which is being increased from $100 million to $125
million. At the same time, Standard & Poor's affirmed its
ratings on Kansas City Southern, including the 'BB+' rating on
the term loan facility maturing in 2008 and 'BB-' corporate
credit rating, and revised the outlook to stable from negative.
The Kansas City, Mo.-based freight railroad has about $1.8
billion of lease-adjusted debt.

"The ratings reflect Kansas City Southern's leveraged capital
structure and challenges associated with the integration of
Mexican railroad TFM S.A. de C.V., offset by the favorable
characteristics of the U.S. freight railroad industry and the
company's strategically located rail network, said Standard &
Poor's credit analyst Lisa Jenkins. "The outlook revision
reflects the resolution of two outstanding issues between TFM
and the Mexican government and our expectation that favorable
industry conditions will enable Kansas City Southern to generate
improved financial results over the near to intermediate term."

Kansas City Southern is a Class 1 (large) U.S. freight railroad.
It is significantly smaller and less diversified than its peers
but operates a very strategically located rail network in the
central U.S. With its acquisition of TFM in April 2005, Kansas
City Southern should be better able to take advantage of its
north-south route orientation and NAFTA trade opportunities.
TFM serves the three largest cities in Mexico, representing a
majority of the Mexican population and GDP. Its rail lines
connect with the principal border gateway and largest freight
exchange point between the U.S. and Mexico at Nuevo
Laredo/Laredo and serves three of the four principal seaports in

Kansas City Southern had previously maintained a 49% voting
interest in Grupo TFM (TFM's parent company). Now that it owns
100% of TFM, Kansas City Southern should be able to more fully
integrate its operations with those of TFM, thereby achieving
marketing and cost synergies over time. Although Kansas City
Southern now influences the management of day-to-day operations
at TFM, the two companies have retained separate legal
identities and are continuing to finance their operations

Two TFM-related issues were recently resolved: the long-running
value-added-tax (VAT) dispute with the Mexican government and
the put option that the Mexican government could exercise to
sell its remaining ownership interest in Grupo TFM. The matters
were resolved in a VAT for put swap agreement in September 2005.
No cash payments were made by any party under the agreement.

Ratings are based on the expectation that credit protection
measures will improve at Kansas City Southern over the next two
years as a result of benefits from the integration of TFM and
from continuing healthy market fundamentals. If the improvement
exceeds the levels factored into current ratings, the outlook
could be revised to positive.

Primary Credit Analyst: Lisa Jenkins, New York (1) 212-438-7697;

T R I N I D A D   &   T O B A G O

BWIA: Government to Create New Entity from Restructured Airline
The government intends to turn beleaguered national airline BWIA
into a new company, The Trinidad Express reports. The
announcement was made by Finance Minister Patrick Manning during
the 2005-2006 budget presentation in Parliament yesterday.

After careful deliberations on the proposals submitted by
government-appointed Task Force for the future of the airline,
the Cabinet decided to create a new national entity using as a
basis a restructured BWIA, Mr. Manning said.

Prominent businessman Arthur Lok Jack was chosen to assume the
chairmanship of the new BWIA board of directors and will be
given the mandate to undertake this exercise of the transition

The Finance Minister noted that there have been numerous efforts
at restructuring the airline over the past 45 years, but these
efforts must be put into the context of the dynamics of the
airline industry and especially state-owned airlines across the

"We believe strongly that we are now in a position to complete a
seamless transition from the existing BWIA to this new entity.
But, this will involve a substantial investment of taxpayers'
dollars by the Government and some major departures from the
status quo," Mr. Manning stated.

He predicted that the approach would bring a new airline
designed initially as a regional carrier and open, in due
course, to participation from regional governments and the
regional private sector.

The new proposal would require recapitalization of approximately
US$250 million to ensure the new entity's operations. The new
airline would still be majority-owned by the Government with a
plan for further divestment to the private sector.

The proposal also requires significant change in the Company's
management and improvement of corporate governance, assurance
that the airline is not put to a disadvantage to charter
flights, restoration of the Company's maintenance capability and
fundamental changes in the work rules and culture of the


* URUGUAY: IMF Completes First Stand-By Arrangement Review
The Executive Board of the International Monetary Fund (IMF)
completed Wednesday the first review under the SDR 766.3 million
(US$1.11 billion) Stand-By Arrangement for Uruguay. Completion
of this first review makes SDR 30.7 million (about US$44.4
million) immediately available to Uruguay.

In completing the review, the Board also approved the
modification of the structural performance criterion on the
timeframe for submission of a comprehensive tax reform, of the
net domestic assets of the central bank for end-September and
end-December 2005, and of the adjustors for the net
international reserves and nonfinancial public sector debt
performance criteria. The Stand-By Arrangement was approved on
June 8, 2005 for a three-year period, under the Fund's
exceptional access policy.

In commenting on the Executive Board decision, Mr. Agustin
Carstens, Deputy Managing Director and Acting Chair, said:

"Uruguay's economic program, supported by a new Stand-By
Arrangement, is off to a good start. The authorities' strong
macroeconomic policies, together with generally favorable
external conditions, have resulted in rapid growth, low
inflation, and renewed access to international capital markets.
As a result, economic vulnerabilities have been reduced
significantly, although important risks remain. In particular,
the still high public debt, weaknesses in the banking system,
and pressures to raise fiscal spending continue to pose
important challenges to the government's reform program.

"The five-year budget submitted to Congress in August reaffirms
the government's commitment to strong macroeconomic policies
through its term in office. It is now important to implement the
budget and associated fiscal reforms. In particular, the
authorities' plans for comprehensive tax reform, improving
revenue administration, and reforms of specialized pension funds
are well placed.

"Uruguay's progressive return to international capital markets
is an important achievement that, together with continued sound
macroeconomic policies, underpins prospects for a lasting exit
from Fund financial support. Uruguay has taken advantage of
favorable external conditions to improve the structure of public
debt. Debt management will be further improved through the
establishment of a specialized unit at the Ministry of Finance.

"Monetary policy has been successful in bringing down inflation.
However, potential inflationary pressures need to be monitored
carefully, to make sure monetary policy can react if necessary
to safeguard the inflation objective.

"The restructuring of the banking system has progressed well,
but risks remain. The ongoing divestment of NBC, the bank
created out of the good assets of the failed banks, is welcome,
as is the progress made in strengthening the largest state bank
and its asset resolution efforts. Key remaining challenges
include stepping up reforms at the state mortgage bank and
reducing high financial dollarization, which remains a major
vulnerability. The authorities' plans for strengthening the
central bank, the supervisory authority of banks, and the
deposit insurance framework are important milestones ahead.

"Continued success of the program depends on sustaining rapid
growth and social progress. The authorities' strategy for
achieving these goals rightly focuses on raising private sector
investment, while supporting vulnerable groups through well-
targeted social assistance. Developing a clear action plan to
improve the investment climate and effective implementation of
the two-year Social Emergency Program are important planks of
this strategy, complementing the authorities' commitment to
sustained fiscal consolidation and financial stability. The good
start made in implementing the government's program harbors
favorable prospects for achieving the overarching goals of
sustained growth, debt sustainability, and social progress," Mr.
Cartsens said.

CONTACT: International Monetary Fund - IMF
         External Relations Department
         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278

         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772


ALIMENTOS POLAR: Plans Court Battle Over Silo Takeovers
Alimentos Polar, one of Venezuela's biggest food companies, will
fight in court the government's decision to take over its grain
storage facilities.

Hugo de los Reyes Chavez, father of Venezuelan President Hugo
Chavez and governor of the southwestern state of Barinas,
recently decreed an order to assume control of silos belonging
to Alimentos Polar. He said the order was justified because
productive activities had ceased in 2002.

But Mr. Lorenzo Mendoza, president of Alimentos Polar, rejected
such claims.

"These silos are operational... this is a plant that is being
used and which guarantees food security," Mr. Mendoza said,
adding, "We consider this decision unjust, disconcerting and in
our opinion unconstitutional.

"We turn to the only recourse we have always used, the law, one
that which will in the end bring justice, and have this ruling
annulled by the competent legal bodies," said Mr. Mendoza.

Mr. Mendoza has ruled out negotiating with the Venezuelan
government. Meanwhile, President Hugo Chavez said Wednesday his
government has no plans to violate Polar's rights and will pay
for the expropriation of its grain storage facilities.

"The government won't step on the rights (of Polar) at all...the
expropriation includes the payment for what (the silos) cost,"
president Hugo Chavez said in televised remarks.

If the courts find the government has made a mistake "we will
give back your facilities," Mr. Chavez said in direct comments
to Mr. Mendoza, a well-known business leader.

Mr. Chavez called on Mr. Mendoza to keep an open line of
communication and to consider joint projects with the government
in the future.

H.J. HEINZ: Government to Pay $255,814 for Plant Seizure
Alimentos Heinz, a unit of H.J. Heinz Co., agreed to receive
from the government VEB550 million (US$255,814) as payment for
an inactive tomato processing plant seized a few weeks ago by
government troops. Dow Jones Newswires suggests the Company
originally demanded as much as VEB1.1 billion for the plant
located in the Northeastern state of Monagas.

Earlier this month, Monagas governor Jose Gregorio Briceno
ordered the military to seize the plant to protect the plant
from looting.

Heinz officials have said they understand the government's
social plans but pointed out that its "social objectives cannot
stand above the law."

Venezuelan President Hugo Chavez has vowed to fight for the
rights of workers left jobless by company shutdowns. Idle land
and company assets, Mr. Chavez has warned, could be declared as
"public interest" and expropriated.

Heinz explained earlier that the Monagas plant hasn't been
operating because market demand and low prices make it
impossible to keep the unit producing.


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

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

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

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

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

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

* * * End of Transmission * * *