TCRLA_Public/051004.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

           Tuesday, October 4, 2005, Vol. 6, Issue 196



ADEBALL AMOBLAMIENTOS: General Report Filing Deadline Approaches
AGROIMPULSO CEREALES: General Report to be Submitted Oct. 5
BANCO BISEL: Nacion to Publish Bidding Rules This Week
COMPANIA MEGA: Fitch Withdraws National, International Ratings
HISTA S.A.: Creditor's Involuntary Bankruptcy Motion Approved

PEBIAL S.R.L.: General Report Due for Filing October 5
PETROBRAS ENERGIA: Reaches Provisional Agreements with PDVSA
PIONEER NATURAL: Closes 5-Yr Bank Credit Facility
PIONEER NATURAL: Anticipates Argentine Assets' Sale by Yearend
PROTECTIO S.R.L.: Court Appoints Trustee for Reorganization

STAL GRIFF: Judge Declares Company Bankrupt
TGS: S&P Outlines Risk Concerns, Ratings Review
TORPEDOS S.R.L.: Trustee to Submit General Report Oct. 5
UOL SINECTIS: Claims Filing, Review Deadline Set


AUL REINSURANCE: Members Resolve to Wind Up Company
BELVEDERE INSURANCE: Creditors to Vote on Restructuring Dec. 1
PXRE GROUP: A.M. Best Lowers Ratings Following Hurricane
PXRE GROUP: Comments on Recent Rating Agency Announcements
PXRE GROUP: Plans Public $100M Common Share Offering

PXRE GROUP: Agrees to Sell Perpetual Preferred Shares
TENET OFFSHORE: Creditors to Submit Claims for Validation


BANCO PACTUAL: Goldman Negotiating Purchase of 45% Stake
BEC: Auction Winner to Handle State Accounts Exclusively
BRASKEM: Petroquisa Designates Assets for Ownership Deal
CFLCL: Court Finds Shareholder Action Valid
TELEMAR: No Plans to Buy Brasil Telecom Shares


EDT: ETB in Search of Investment Bank to Value Batelsa
TELECOM: Congress Praises Telmex Deal Delay
* COLOMBIA: World Bank Extends CAS, Increases Funds For Peace


C&W JAMAICA: Introduces Rates Reduction Plan


LFC: High Operating Costs Lead to 1.43B Loss in Jan-July
MERIDIAN AUTOMOTIVE: Posts $6.3 Million Net Loss in August 2005
METROFINANCIERA: Moody's Affirms Ratings, Stable Outlook
UNITED RENTALS: Moody's Confirms Corporate Family Rating at B2

P U E R T O   R I C O

DORAL FINANCIAL: Moody's Continues Ratings Review

T R I N I D A D   &   T O B A G O

MIRANT CORP.: Gets New Management Head for Trinidad Ops


URAGUA: Reaches Friendly Takeover Agreement with OSE


PDVSA: To Form Two Production JVs with Repsol YPF
PDVSA: To Ship 240,000 Barrels of Gasoline to CITGO
SIDOR: Class B Sharehold Dividend Expected Shortly

     - - - - - - - - - -


ADEBALL AMOBLAMIENTOS: General Report Filing Deadline Approaches
The deadline for the submission of the general report on the
Adeball Amoblamientos S.A. bankruptcy will be tomorrow, Oct. 5,
2005. The Company entered bankruptcy protection after Court No.
17 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 33, mandated the Company's liquidation.
The court selected Mr. Horacio Fernando Crespo as trustee.

Mr. Crespo verified creditors' proofs of claim until the end of
the verification phase on Aug. 5, 2005. The trustee then
prepared individual reports, which were based on the verified
claims. The reports were submitted on Sep. 6, 2005.

CONTACT: Adeball Amoblamientos S.A.
         Condarco 5164
         Buenos Aires

         Mr. Horacio Fernando Crespo, Trustee
         Maipu 464
         Buenos Aires

AGROIMPULSO CEREALES: General Report to be Submitted Oct. 5
The general report on the Agroimpulso Cereales S.A. liquidation
will be submitted tomorrow, Oct. 5, 2005. The report will
contain a summary of the Company's financial status as well as
relevant events pertaining to the bankruptcy.

The Company began liquidating its assets following the
bankruptcy pronouncement issued by Court No. 9 of Buenos Aires'
civil and commercial tribunal. Ms. Silvia Monica Tauschek was
appointed as trustee.

Ms. Tauschek verified creditors' proofs of claim until May 26,
2005. The validated claims were presented in court as individual
reports on Aug. 3, 2005.

The bankruptcy process will end with the disposal of the
Company's assets to repay its debts.

CONTACT: Ms. Silvia Monica Tauschek, Trustee
         Viamonte 658
         Buenos Aires

BANCO BISEL: Nacion to Publish Bidding Rules This Week
Federal bank Banco Nacion will initiate this week its second
attempt to sell local bank Banco Bisel with the publication of
the bidding rules, Business News Americas, citing a Nacion

Bisel is one of three banks taken over by the Argentine
government in early 2002 when French banking conglomerate Credit
Agricole SA left Argentina in the middle of the country's
financial crisis.

Nacion's first attempt to sell Bisel in 2003 failed to attract
any bidders.

CONTACT:  Banco Bisel S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Phone: 0341-4200300
          Web Site:

COMPANIA MEGA: Fitch Withdraws National, International Ratings
Fitch Ratings has withdrawn the 'A(arg)' national and 'B+'
international ratings of Compania Mega S.A. (Mega), as the
securities were fully amortized prior maturity. Fitch will no
longer provide analytical service or coverage of this issuer.

Compania Mega, owned by YPF S.A. (YPF, 38%), Brasoil Alliance
Company, a subsidiary of Petroleo Brasileiro S.A. (Petrobras,
34%), and Dow Investment Argentina S.A., a subsidiary of The Dow
Chemical Company (Dow, 28%), is composed of a natural gas
separation plant, a natural gas liquids fractionation plant, a
600-km pipeline, and related storage and loading facilities in
Argentina. The US$728 million project began operations in April
2001, with an annual total capacity to produce 369,000 MT of
propane; 242,000 MT of butane, 562,000 metric tons of ethane;
and 223,000 MT of natural gasoline.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site,
Published ratings, criteria, and methodologies are available
from this site, at all times. Fitch's code of conduct,
confidentiality, conflicts of interest, affiliate firewall,
compliance, and other relevant policies and procedures are also
available from the 'Code of Conduct' section of this site.

CONTACT: Fitch Ratings
         Cecilia Minguillon, +5411-5235-8100 (Buenos Aires)
         Ana Paula Ares, +5411-5235-8100 (Buenos Aires)
         Jason T. Todd, 312-368-3217
         Gersan Zurita, 212-908-0318 (New York)
         Chris Kimble, 212-908-0226 (Media Relations, New York)

HISTA S.A.: Creditor's Involuntary Bankruptcy Motion Approved
Court No. 22 of Buenos Aires' civil and commercial tribunal
declared Hista S.A. bankrupt, says La Nacion. The ruling was in
favor of a petition filed by one of the Company's creditor,
Marcelo Servinsky, for nonpayment of ARS17,365.75 in debt.

Trustee Hector Presta will examine and authenticate creditors'
claims until Feb. 1, 2006. This is done to determine the nature
and amount of the Company's debts. Creditors must have their
claims authenticated by the trustee by the said date in order to
qualify for the payments that will be made after the Company's
assets are liquidated.

Clerk No. 44 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

         Maipu 464
         Buenos Aires

         Mr. Hector Presta
         Parana 467
         Buenos Aires

PEBIAL S.R.L.: General Report Due for Filing October 5
The general report, which contains the business records on
bankrupt company Pebial S.R.L., will be presented in court for
approval tomorrow, Oct. 5, 2005. Court No. 10 of Buenos Aires'
civil and commercial tribunal declared Pebial S.R.L. bankrupt
after the Company defaulted on its debt payments. City
accountant Jorge Osvaldo Stanislavsky was appointed as trustee.

Mr. Stanislavsky verified the authenticity of claims presented
by the Company's creditors. The verification phase ended on June
29, 2005. Following claims verification, the trustee submitted
the individual reports based on the forwarded claims for final
approval by the court on Aug. 24, 2005.

Clerk No. 19 assists the court on this case that will close with
the sale of the Company's assets. Proceeds from the sale will be
used to repay the Company's debts.

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

PETROBRAS ENERGIA: Reaches Provisional Agreements with PDVSA
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE, NYSE:
PZE) announces that the Board of Directors of its controlled
company Petrobras Energia S.A., at a meeting held on September
28, 2005, within the framework of the new laws governing
hydrocarbon production in Venezuela, authorized the execution of
Provisional Agreements with Petroleos de Venezuela S.A. (PDVSA),
as a prior step to the conversion of operating agreements of the
Oritupano Leona, La Concepcion, Acema and Mata areas into a
partially state-owned company modality under which the
Venezuelan State, through PDVSA, will hold a majority interest.

Execution of the above referenced agreements shall be subject to
execution thereof by the remaining partners participating in
such areas and, particularly in the case of the Oritupano Leona
area, to approval by Petrobras Energia S.A.'s Regular
Shareholders' Meeting. To such effect, a Special Shareholders'
Meeting of Petrobras Energia Participaciones S.A. shall be

PIONEER NATURAL: Closes 5-Yr Bank Credit Facility
Pioneer Natural Resources Company (NYSE:PXD) announced Friday
the closing of a $1.5 billion five-year unsecured revolving
senior credit facility, replacing its existing $400 million and
$700 million unsecured facilities that were scheduled to mature
in September of 2005 and December of 2008, respectively. The
credit facility has terms consistent with investment grade rated
companies, and will be utilized to refinance Pioneer's existing
credit facilities and for ongoing working capital and general
corporate purposes.

A banking syndicate Co-Arranged by J.P. Morgan Securities Inc.
and Wachovia Capital Markets, LLC will finance the credit
facility. Other agent titled roles include JPMorgan Chase Bank,
N.A. as Administrative Agent, Wachovia Bank, National
Association as Syndication Agent, and Bank of America, N.A.,
Deutsche Bank Securities Inc. and Wells Fargo Bank, National
Association as Co-Documentation Agents. The facility was
significantly oversubscribed and was syndicated to 26 banks.

Pioneer also announced Friday the final tender results for its
previously announced offer to purchase its 5.875% Senior Notes
due 2012 (CUSIP No. 299900 AD 2) (the "Notes").

As of 12:00 midnight, New York City time, on Thursday, September
29, 2005 (the "Expiration Date"), Pioneer had received tenders
for $188.4 million in principal amount of the Notes (the
"Tendered Notes") representing 96.9% of the outstanding
principal amount of the Notes. Pioneer has accepted tenders of
all Tendered Notes.

All of the Tendered Notes were tendered prior to 5:00 p.m., New
York City time, on Thursday, September 15, 2005 (the "Consent
Date"). Holders of Notes tendered prior to the Consent Date
received a payment on September 20, 2005 of $1,061.15, including
a $30 consent payment, for each $1,000 principal amount of
Notes. No Notes were tendered after the Consent Date.

Pioneer Natural Resources Company is a large independent oil and
gas exploration and production company with operations in the
United States, Argentina, Canada and Africa. Pioneer's
headquarters are in Dallas, Texas. Moody's rates Pioneer
Natural's subordinated debt at Ba1 and preferred stock at Ba2.

CONTACT: Pioneer Natural Resources Company, Dallas
         Investors: Frank Hopkins or Chris Paulsen
         Tel: 972-444-9001


         Media and Public Affairs:
         Susan Spratlen
         Tel: 972-444-9001

PIONEER NATURAL: Anticipates Argentine Assets' Sale by Yearend
US oil company Pioneer Natural Resources is looking to close the
sale of its Tierra del Fuego assets by the end of the year.
According to Business News Americas, the Company is selling two

- 35% interest in the Union Transitoria de Empresas Tierra del
   Fuego (UTE TDF), which is a consortium that produces oil and
   gas from six fields in the northeastern area of Argentina's
   part of Tierra del Fuego. The other stakeholders are Spain's
   Repsol YPF and local firm Pan American Energy, which operates
   the consortium.

- 50% operating interest in the much smaller Lago Fuego field.
   Repsol YPF has the other 50% stake.

The assets, which Pioneer acquired in the late 1990s when it
took over Canadian firm Chauvco, cover a total 715,605 acres
with 20-plus leads. Total production for the offering net to
Pioneer is 13,700 barrels of oil equivalent (boe) a day.

Oil and gas acquisitions and divestitures firm Scotia Waterous
is managing the sale for Pioneer. Pioneer has also retained
Scotia Waterous as a financial advisor alongside TD Securities
to assist in the sale.

Scotia Waterous associate director Byron Bahnsen said Pioneer
wants to offload the assets because they are isolated from its
other assets on the mainland and the Company would rather focus
on its operated assets in the Neuquen basin.

Pioneer will receive proposals for the assets on November 10.
Detailed information will be sent out to interested companies
during the week of October 3, 2005.

PROTECTIO S.R.L.: Court Appoints Trustee for Reorganization
Protectio S.R.L., a company operating in Buenos Aires, is ready
to start its reorganization after the city's civil and
commercial Court No. 18 appointed accounting firm Estudio de los
Doctores Turco y Gola to supervise the proceedings as trustee.
Clerk No. 35 assists the court on this case.

An Infobae report states that Estudio de los Doctores Turco y
Gola will verify creditors claims until Nov. 30, 2005.
Afterwards, the trustee will present these claims as individual
reports for final review by the court on Feb. 10, 2006. The
trustee will also provide the court with a general report
pertaining to the Protectio S.R.L. reorganization on March 24,
2006. The court has scheduled the informative assembly on Aug.
24, 2006.

CONTACT: Protectio S.R.L.
         Avda. Federico Lacroze 2543
         Buenos Aires

         Estudio de los Doctores Turco y Gola, Trustee
         Cochabamba 4272
         Buenos Aires

STAL GRIFF: Judge Declares Company Bankrupt
Stal Griff S.R.L. was declared bankrupt after Court No. 18 of
Buenos Aires' civil and commercial tribunal endorsed the
petition of Mr. Benjamin Fajn for the Company's liquidation,
Argentine daily La Nacion reports.

The court assigned Mr. Javier Espineira to supervise the
liquidation process as trustee. Mr. Espineira will validate
creditors' proofs of claim until Nov. 9, 2005.

The city's Clerk No. 36 assists the court in resolving this

CONTACT: Stal Griff S.R.L.
         Concordia 3650
         Buenos Aires

         Mr. Javier Espineira
         Viamonte 783
         Buenos Aires

TGS: S&P Outlines Risk Concerns, Ratings Review

The ratings on Transportadora de Gas del Sur S.A. (TGS) reflect
the following risks:

    -  High regulatory risk in Argentina and future cash flow
       generation uncertainties, as regulated tariffs have
       remained frozen in Argentine peso terms since January

    -  The timing and final outcome of concession contract
       renegotiations remain uncertain;

    -  Still-high leverage after restructuring;

    -  Partial currency mismatches between revenues (partly in
       Argentine pesos) and debt service (in U.S. dollars);

    -  Exposure to the swings in international prices of liquids
       coming from natural gas processing; and

    -  Limited financial flexibility.

The above-mentioned risks are partially offset by TGS'
unregulated activity having benefited from the devaluation of
the Argentine peso and by a favorable debt maturity schedule
after debt restructuring.

TGS is Argentina's largest natural gas transportation company
and had approximately US$870 million in debt outstanding at June
30, 2005. The ratings do still reflect some government
intervention that could partially affect TGS' unregulated

Debt relief as a result of the conclusion of the restructuring
in late 2004 was significant. Although there was no haircut on
principal, maturities have been pushed out significantly and are
amortizing in line with cash flow generation capacity. Standard
& Poor's Ratings Services expects TGS' funds from operations
(FFO) to represent between 15% and 20% of total debt in the next
two years, assuming a relatively stable foreign exchange rate.
TGS should be able to face the first six years of interest and
principal amortization, assuming EBITDA generation of about $200
million and some flexibility in capital expenditures. In the
longer term, the company will need to increase revenues or
obtain other sources of refinancing to meet the requirements of
a growing debt-service profile. Nevertheless, assuming a
relatively stable evolution of the U.S. dollar exchange rate,
TGS should be able to reduce some additional debt in the first
years through the cash sweep mechanisms included in the
conditions of the restructuring (in June 2005, TGS paid US$28
million of additional amortization due to this cash sweep

Despite the expected more favorable maturity schedule, as long
as TGS does not increase revenues and cash generation, its
repayment capacity could be affected, particularly in a
potential devaluation scenario of the Argentine peso and a high
inflation scenario. Standard & Poor's considers the company's
future cash flow generation to be somewhat unclear as long as
the renegotiation of the concession contracts is not resolved
and until a new tariff adjustment mechanism has been agreed on
to reestablish the company's financial and economic balance. We
also consider potential mandated increases in capital
expenditures to be another form of regulatory risk. Given its
current revenue base and capital structure, TGS' future
financial performance will also depend on the performance of the
international prices of liquids coming from natural gas

About half of TGS' revenues (46% for the first semester of 2005)
are unregulated and derived from the sale of liquids coming from
natural gas processing at the Cerri complex near the city of
Bahˇa Blanca, in the province of Buenos Aires. Although this
U.S. dollar-linked revenue stream became more significant after
the devaluation of the peso, TGS' financial profile severely
weakened as a result of the government's emergency measures in
early 2002.

TGS' capital structure significantly improved due to a reduction
of the debt burden (considering the cash payment made as part of
the restructuring, equal to 11% of the principal amount) and the
positive results reported in the past two years. Consequently,
total debt to total capitalization decreased to 51.5% as of June
30, 2005, from 55.2% in fiscal 2004 and 61.2% in fiscal 2003.
Continuing debt reduction is expected, given the amortization
profile of the restructured debt and the limitations to incur
additional indebtedness. Nevertheless, the foreign exchange rate
will remain critical for TGS because its entire debt is still
dollar denominated. The company will not face interest rate risk
because all the new debt after restructuring is at fixed step-up

As Argentina's largest natural gas transportation company, TGS
delivers approximately 61% of the country's total gas
consumption. It has a 35-year license to operate Argentina's
southern gas transportation system (regulated activity). TGS
also operates a natural gas separation facility near Bahˇa
Blanca. The company separates natural gas into ethane, butane,
propane, and natural gasoline, which are sold to distributors,
refineries, and other third parties (unregulated activity).


TGS' liquidity position is adequate, although limited, for the
rating category, having significantly improved after the
rescheduling of its debt maturities. As of June 30, 2005, TGS
had about $122 million in cash and short-term investments,
abundantly exceeding its short-term debt. In addition, the new
obligations issued contain certain cash sweep mechanisms and
various restrictive covenants, including limitations to issue
additional debt, maximum capital expenditures and investments,
and restrictions on dividend payments, among others.
Nevertheless, these conditions should not jeopardize the
company's current liquidity position. In the medium term, TGS'
deleveraging should help improve financial flexibility.


The stable outlook reflects expectations of strengthening
repayment capacity after the improvement in TGS' debt maturity
schedule, a certain stability in the exchange rate, and a
certain degree of government intervention in the company's
operations. The outlook also reflects our opinion that the debt
restructuring concluded in December 2004 provides TGS with an
adequate window for renegotiating the concession contract
without incurring significant financial pressures. In this
context, the ratings on TGS could benefit from future perceived
important improvements in the country's institutional
environment or a renegotiation of the concession contract
favorable for the company's cash flow generation. Nevertheless,
the ratings could come under pressure if the renegotiation of
the concession contract negatively affects TGS' business or
financial profiles or if further government intervention (i.e.,
as a form of mandatory investments, additional export duties, or
significant natural gas restrictions to be processed at Cerri)
significantly affects the company's cash generation.

Primary Credit Analyst: Luciano Gremone, Buenos Aires (54) 11-

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-

TORPEDOS S.R.L.: Trustee to Submit General Report Oct. 5
Court-appointed trustee Beatriz Susana Stachesky will present
the general report on the bankruptcy of Torpedos S.R.L.
tomorrow, Oct. 5, 2005.

On June 28, 2005, Ms. Stachesky stopped verifying creditors'
claims. Out of those claims, the trustee prepared individual
reports and submitted them to court on Aug. 24, 2005.

The Company was declared bankrupt by Court No. 3 of Buenos
Aires' civil and commercial tribunal, with the assistance of
Clerk No. 6.

CONTACT: Torpedos S.R.L.
         25 de Mayo 597
         Buenos Aires

         Ms. Beatriz Susana Stachesky, Trustee
         Avda Cordoba 817
         Buenos Aires

UOL SINECTIS: Claims Filing, Review Deadline Set
The verification of creditors' claims for the Uol Sinectis S.A.
insolvency case is set to end on Nov. 4, 2005, states Infobae.
Estudio Polito-Lagorio, the court-appointed trustee tasked with
examining the claims, will submit the validation results as
individual reports on Dec. 20, 2005. The trustee will also
present a general report in court on March 2, 2006.

On July 28, 2006, the Company's creditors will vote on the
settlement proposal prepared by the company. Infobae adds that
Court No. 8 of Buenos Aires' civil and commercial tribunal
handles the Company's reorganization case. Clerk No. 16 assists
the court in the proceedings.

CONTACT: Estudio Polito-Lagorio, Trustee
         Avda. Corrientes 1515
         Buenos Aires


AUL REINSURANCE: Members Resolve to Wind Up Company


IN THE MATTER OF AUL Reinsurance Management Services (Bermuda)

The Members of AUL Reinsurance Management Services (Bermuda)
Ltd., acting by written consent without a meeting on September
26, 2005, passed the following resolutions:

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

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

The Liquidator informs that:

- Creditors of AUL Reinsurance Management Services (Bermuda)
Ltd., which is being voluntarily wound up, are required, on or
before October 14, 2005, to send their full Christian and
Surnames, their addresses and descriptions, full particulars of
their debts or claims, and the names and addresses of their
solicitors (if any) to Robin J Mayor, the Liquidator of the
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their solicitors, to come in
and prove their debts or claims at such time and place as shall
be specified in such notice. In default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Member(s) of AUL Reinsurance
Management Services (Bermuda) Ltd. will be held at the offices
of Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, Bermuda on November 4, 2005 at 9:30 a.m., or
as soon as possible thereafter, for the purposes of:

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

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

3) by resolution dissolving the Company.

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

BELVEDERE INSURANCE: Creditors to Vote on Restructuring Dec. 1
2005: NO. 292

IN THE MATTER OF Belvedere Insurance Company Limited (In


NOTICE IS HEREBY GIVEN that, by an order dated September 26,
2005 made in the Supreme Court of Bermuda in the matter of
Belvedere Insurance Company Limited ("the Company"), a meeting
has been ordered to be summoned of Scheme Creditors (as defined
in the scheme of arrangement referred to in this Notice) of the
Company, for the purpose of considering and if thought fit,
approving (with or without modification) a scheme of arrangement
("the Scheme") proposed to be made between the Company and its
Scheme Creditors pursuant to section 99 of the Companies Act

The meeting is to be held on December 1, 2005 at KPMG, Crown
House, 4 Par-la-Ville Road, Hamilton HM08, Bermuda at 10:00 a.m.
(Bermuda time).

The Chairman of the meeting will address Scheme Creditors
generally on the Scheme and on issues relevant to voting at the
commencement of the meeting.

Scheme Creditors may attend and vote in person at the meeting or
they may appoint another person, whether or not such person is a
Scheme Creditor, as their proxy to attend and vote in their
place. Scheme Creditors which are corporations may attend and
vote by a duly authorized representative or by proxy. Scheme
Creditors are requested to complete the Proxy Form and Voting
Claim Form, found at, and return
it to the Liquidators at or at
KPMG, Crown House, 4 Par-la-Ville Road, Hamilton HM08, Bermuda
(marked for the attention of James Makin) or by fax to fax
number +1 441 295 8280. Each Proxy Form should be received by
5:00 p.m. (Bermuda time) on November 30, 2005, although, if not
so returned, it may be handed in between 9:15 a.m. and 9:45 a.m.
on the day of the meeting at the place fixed for the meeting.

Each Scheme Creditor or his proxy will be required to register
his attendance at the meeting prior to its commencement.
Registration will commence at 9:15 a.m.

A copy of the Scheme, the Explanatory Statement to the Scheme, a
Proxy Form for use at this meeting and a Voting Claim Form can
be downloaded from the Liquidation Website, www.belvedere- Additionally, these documents are available
from KPMG in Bermuda at Crown House, 4 Par-la-Ville Road,
Hamilton HM 08, Bermuda (Tel: +1 441 294 2652; fax: +1 441 295
8280) or by request to

By the order, the Supreme Court of Bermuda has appointed Michael
Morrison, or failing him Malcolm Butterfield, to act as chairman
of the meeting and directed the chairman to report the result of
the meeting to the Court.

The Scheme will be subject to the subsequent sanction of the
Supreme Court of Bermuda.

Dated September 26, 2005
Attride-Stirling & Woloniecki
Crawford House
50 Cedar Avenue
Hamilton HM11
Attorneys to Anthony McMahon and Malcolm Butterfield

PXRE GROUP: A.M. Best Lowers Ratings Following Hurricane
A.M. Best Co. has downgraded the financial strength rating to A-
(Excellent) from A (Excellent) and issuer credit ratings to "a-"
from "a" for the reinsurance subsidiaries of the PXRE Group Ltd.
(PXRE) [NYSE: PXT] (Bermuda). The rating action applies to PXRE
Reinsurance Ltd. (Bermuda) and PXRE Reinsurance Company
(Hartford, CT). Concurrently, A.M. Best has downgraded the
issuer credit rating to "bbb-" from "bbb" of PXRE and downgraded
all existing debt ratings. All ratings remain under review with
negative implications. (See below for detailed listing of the

The downgrades reflect the deterioration in PXRE's risk-adjusted
capital position due to the group sustaining net losses from
hurricanes Katrina and Rita in the $265 million to $340 million
range. The group's reported shareholders' equity at June 30,
2005 was $763 million. While PXRE has publicly announced its
plan to raise approximately $450 million in capital through a
common share public offering and preferred share private
placement, A.M. Best does not believe that the successful
execution of its current plan will be sufficient to support the
volatility of the group's monoline property catastrophe focus at
its former A (Excellent) financial strength rating level.
Additionally, the group's A- (Excellent) rating will remain
under review with negative implications pending PXRE's
successful completion of its capital plan. If the plan is
executed in accordance with A.M. Best's expectations, which
include the exchange of preferred shares to common shares, the
financial strength ratings of A- (Excellent) will likely be

As a global property catastrophe reinsurer, PXRE is exposed to
high severity losses associated with catastrophic events on a
worldwide basis. As a result of these events in 2005, property
catastrophe pricing is expected to increase, which should
benefit returns, barring any other catastrophic events. A.M.
Best expects PXRE to manage its risk-adjusted capital and
financial leverage ratios within acceptable ranges to support
its new financial strength and debt ratings.

The financial strength rating has been downgraded to A-
(Excellent) from A (Excellent) for the PXRE Group Ltd. and its
following reinsurance subsidiaries.

-- PXRE Reinsurance Company
-- PXRE Reinsurance Ltd.

The issuer credit rating has been downgraded to "bbb-"from "bbb"
for PXRE Group Ltd.

The issuer credit ratings have been downgraded to "a-" from "a"
for PXRE Reinsurance Company and PXRE Reinsurance Ltd.

The following debt rating has been downgraded:

PXRE Capital Trust I--
-- to "bb" from "bb+" on $100 million 8.85% trust preferred
securities, due 2027

The following indicative debt ratings have been downgraded for
securities available under shelf registration:

PXRE Group Ltd.--
-- to "bbb-" from "bbb" on senior unsecured
-- to "bb+" from "bbb-"on subordinated
-- to "bb" from "bb+" on preferred stock

PXRE Capital Trust IV--
-- to "bb" from "bb+" on trust preferred securities

CONTACTS: Public Relations
          Jim Peavy
          Tel: (908) 439-2200, ext. 5644

          Rachelle Striegel
          Tel: (908) 439-2200, ext. 5378

          Robert DeRose
          Tel: (908) 439-2200, ext. 5453

          John Laubach
          Tel: (908) 439-2200, ext. 5144

PXRE GROUP: Comments on Recent Rating Agency Announcements
PXRE Group Ltd. (NYSE: PXT) provided the following comment on
recent decisions by Standard & Poor's and A. M. Best Co. to
downgrade certain ratings on the Company and its subsidiaries,
including Standard & Poor's lowering its counterparty credit and
financial strength ratings on PXRE from "A" (Strong) to "A-"
(Strong) and A. M. Best lowering is financial strength rating
from "A" (Excellent) to "A-" (Excellent).

Jeffrey L. Radke, President & Chief Executive Office of PXRE
stated: "We are disappointed with the rating agency decisions.
The strong market position we have earned through our dedication
to customer service and strong claims paying record over the
past 23 years gives us confidence in our ability to thrive in
the wake of Hurricanes Katrina and Rita and recent feedback from
communications with brokers validates that confidence. We remain
committed to the focused strategy that is the core of our
franchise, superior historical operating performance and proven
record of prompt and certain claims payments."

"We have also taken steps that will further improve our
financial position and allow us to benefit from favorable market
conditions following Katrina and Rita. Specifically, we are
executing a capital raising plan, the first step of which was
announced yesterday [Thursday] concerning our agreement to sell
approximately $375 million in perpetual preferred shares that
will be mandatorily exchanged for common shares upon shareholder
approval. We have also announced our intention to make a public
offering of approximately $100 million of our common shares,
which will be offered by the Company and sold under the
Company's registration statement on Form S-3 that has been
declared effective by the Securities and Exchange Commission.
Upon completion of our capital raising plan, we expect to enter
the key January 1, 2006 renewal period with our strongest
balance sheet ever."

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

         Jamie Tully of Citigate Sard Verbinnen,
         Tel: +1-212-687-8080

PXRE GROUP: Plans Public $100M Common Share Offering
PXRE Group Ltd. (NYSE: PXT) today announced that it intends to
make a public offering of approximately $100 million of its
common shares. PXRE expects to contribute the net proceeds of
the offering to PXRE Reinsurance Ltd., its Bermuda reinsurance
subsidiary, to support the underwriting of reinsurance business
during the January 1, 2006 renewal period and throughout the
balance of 2006. All shares that are being offered by the
Company are being sold under the Company's registration
statement on Form S-3 that has been declared effective by the
Securities and Exchange Commission.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of PXRE's common shares, nor
shall there be any sale of the common shares in any state in
which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of
any such state.

A preliminary prospectus supplement relating to the offering
will be filed with the Securities and Exchange Commission. When
available, copies of the prospectus supplement and accompanying
base prospectus relating to the offering may be obtained from
the Company's underwriters for the offering.

PXRE GROUP: Agrees to Sell Perpetual Preferred Shares
PXRE Group Ltd. (NYSE: PXT) announced Thursday that it has
agreed to sell 375,000 of its series D perpetual preferred
shares in a private placement pursuant to Section 4(2) of the
Securities Act of 1933. The series D perpetual preferred shares
have an initial liquidation preference, subject to adjustment,
of $1,000 and an $11.00 per common share exchange price. At the
initial liquidation price, the Company would raise $375 million
($360.5 million of proceeds net of agents' fees) in the private
placement and, at the exchange price of $11.00 per common share,
each series D perpetual preferred share will be mandatorily
exchangeable for approximately 90.9 of the Company's common
shares immediately upon an affirmative vote of the Company's
shareholders (i) authorizing an additional 300 million common
shares; and (ii) approving the exchange of the series D
perpetual preferred shares into common shares.

The final liquidation preference, purchase price, and net
proceeds will be subject to adjustment based on the price of
PXRE's upcoming public offering of common shares. The final
price per share of the series D perpetual preferred shares will
be the lesser of (i) the liquidation preference of $1,000 per
share and (ii) the price of the public offering of PXRE's common
shares multiplied by the exchange ratio of 90.9 common shares
for each series D perpetual preferred share. The closing of the
private placement will be simultaneous with, and dependent on,
the closing of the public offering.

PXRE expects to contribute the net proceeds of this private
placement to PXRE Reinsurance Ltd., its Bermuda reinsurance
subsidiary, to support the underwriting of reinsurance business
during the January 1, 2006 renewal period and throughout the
balance of 2006.

The offering of the series D perpetual preferred shares has not
been, and will not be, registered with the Securities and
Exchange Commission under the Securities Act. Such shares may
not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements
under the Securities Act.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the series D perpetual
preferred shares, nor shall there be any sale of the series D
perpetual preferred shares in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

TENET OFFSHORE: Creditors to Submit Claims for Validation
Tenet Offshore Capital Partners, Ltd. (In Voluntary Liquidation)
The Companies Law (2004 Revision)

Notice is hereby given that the creditors of Tenet Offshore
Capital Partners, Ltd., which is being wound up voluntarily, are
required on or before November 3, 2005 to send in their names
and addresses and particulars of their debts or claims and the
names and addresses of their attorneys-at-law (if any) to S.L.C.
Whicker, the joint voluntary liquidator of the Company, and if
so required by notice in writing from the liquidator, either by
their attorneys-at-law or personally, to come in and prove the
said debts or claims at such time and place as shall be
specified in such notice. In default thereof, they will be
excluded from the benefit of any distribution made before such
debts are proved.

CONTACT: S.L.C. Whicker, Joint Voluntary Liquidator
         P.O. Box 493 GT
         Grand Cayman
         Grand Cayman
         Cayman Islands
         Phone: 345-914-4362
         Facsimile: 345-949-7164


BANCO PACTUAL: Goldman Negotiating Purchase of 45% Stake
Goldman Sachs Group Inc., the second-largest U.S. securities
firm, is in talks to buy a 45% stake in Brazilian investment
bank Banco Pactual SA, Bloomberg reports, citing a Friday
edition of newspaper Valor Economico. The paper suggested that
New York-based Goldman, led by Chief Executive Henry Paulson,
will pay about US$475 million for the stake in Pactual, half of
which will be paid with shares.

Andre Esteves, a partner at Pactual, likely will head the new
investment bank, Valor reported. Pactual is controlled by a
group of about 30 partners, with main holders including Esteves
and Gilberto Sayao.

Rio de Janeiro-based Pactual was founded in 1983 by Luiz Cezar
Fernandes, Andre Jakurski and Paulo Guedes as a brokerage house.
The bank, which has 470 employees, worked on 11 of the 15 share
sales in Brazil in 2004, including the initial public offerings
of cosmetics company Natura Cosmeticos SA, shoemaker Grendene SA
and utility CPFL Energia SA.

BEC: Auction Winner to Handle State Accounts Exclusively
The Central Bank will grant the winning bidder of state-owned
bank Banco do Estado do Ceara (BEC) exclusivity to make payments
to the states' suppliers and employees, as well as to handle old
state deposits, reports Business News Americas. New state
deposits, tax payments and fines imposed by the state will be
tendered among other banks at a later stage.

The Central Bank's decision came in the wake of the Supreme
Court's ruling that challenged the exclusive right to handle
state accounts that the winner would enjoy during a five-year

The Central Bank will proceed with the auction of BEC on October
13. 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.

BRASKEM: Petroquisa Designates Assets for Ownership Deal
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), leader in
the thermoplastic resins segment in Latin America and one of the
three largest Brazilian privately-owned industrial companies,
announced Friday that Petroquisa has designated the assets to be
contributed to Braskem in the event that Petroquisa exercises
its option to increase its ownership interest in the voting
share capital of Braskem to up to 30%, in accordance with the
terms of the Second Amendment to the Memorandum of Understanding
regarding Shareholders Agreement, entered into on April 29,

To exercise this option, Petroquisa is required to contribute
its ownership interests in Copesul - Companhia Petroquimica do
Sul, Petroquimica Triunfo S.A. and Petroquimica Paulinia S.A.

By agreement of the parties, the final deadline for the exercise
of the option has been extended to March 31, 2006, from December
31, 2005, which will allow adequate time for the asset appraisal
process to be completed. If effected, the contribution of these
assets is expected to generate potential economies of scale,
cost gains and other synergies.

"Petroquisa's decision potentially will have a positive impact
on the petrochemical sector and for the country, opening the way
for new opportunities for the consolidation of strong and
competitive companies that are capable of competing in the
international market," said Jose Carlos Grubisich, chief
executive officer of Braskem. If effected, the contribution of
these assets is expected to generate potential economies of
scale and cost gains, as well as other synergies.

The consolidation and integration of petrochemical companies is
a global trend that increases their economies of scale and
competitiveness by creating value for their shareholders and the
entire petrochemical and plastics chain. Petroquisa's strategic
planning foresees substantial participation in the development
of the Brazilian petrochemical sector, which includes an active
role in managing the companies in which it has invested.

Petroquisa will decide whether to exercise the option and
increase its ownership interest in the total voting share
capital of Braskem to up to 30% after the conclusion of ongoing
negotiations concerning a shareholders agreement, in accordance
with the results of a review of its strategic planning. In
addition, Petroquisa will maintain its autonomy to develop new
projects, to continue existing investments in businesses or to
form new partnerships with other companies, in each case with
the purpose of meeting increased market demand.

The parties have until October 14, 2005 to retain investment
banks to perform independent valuations of the assets,
calculated using the discounted cash flow method, without giving
effect to any control premium. If the value of the assets
contributed by Petroquisa exceeds the value of 30% of the voting
share capital of Braskem, Petroquisa will be required to
subscribe for class "A" preferred shares of Braskem with the
excess value of these assets. The total value of the newly
issued shares - common and, if necessary, class "A" preferred -
will increase the capital of Braskem.

If the value of the assets contributed by Petroquisa is
insufficient for Petroquisa to attain 30% of Braskem's voting
share capital, Odebrecht, ODBPAR and Norquisa have agreed to
sell to Petroquisa the number of voting common shares of Braskem
necessary for Petroquisa to reach the 30% level, for the same
price per share as the newly issued Braskem shares.

Petroquimica Paulinia S.A., one of the assets included in the
list, is a joint venture that the two companies established on
September 16, 2005 to construct and operate a polypropylene
plant in the City of Paulinia, in the interior of the State of
Sao Paulo. The establishment of this company, 60% of the total
share capital of which is owned by Braskem and the remaining 40%
is owned by Petroquisa, demonstrates the confidence that Braskem
and Petroquisa have in the economic development of Brazil and
the Brazilian petrochemical sector, a process which may be
accelerated with a more prominent role for Petroquisa in the

Braskem, a world-class Brazilian petrochemical company, is the
leader in the thermoplastic resins segment in Latin American,
and is among the three largest Brazilian-owned private
industrial companies. The company operates 13 manufacturing
plants located throughout Brazil, and has an annual production
capacity of 5.8 million tons of resins and other petrochemical

CONTACT: Braskem S.A.
         Jose Marcos Treiger
         Investor Relations Oficcer
         Phone: 5511 3443-9529

         Luiz Henrique Valverde
         IR Manager
         Phone: 5511 3443-9744

         Luciana Paulo Ferreira
         IR Manager
         Phone: 5511 3443-9178


CFLCL: Court Finds Shareholder Action Valid
The Court of Arbitration of the International Chamber of
Commerce acknowledged the legitimacy of measures taken by
Itacatu and Gipar, controlling shareholders of Cataguazes-
Leopoldina, in the Extraordinary General Meeting in December
2003. The court clarified that "there is no doubt" regarding the
fact that all deliberations at issue were lawful and in
accordance with Brazilian Statutory Law. The award, released on
September 26, established the termination of the shareholders'
agreement and stated that all rights and obligations of Alliant
Energy (NYSE: LNT), established in said agreement, would end by
the payment of R$ 14.8 million, adjusted as of the Extraordinary
General Meeting date. The amount was well below the R$ 908
million originally requested by Alliant Energy.

The Court stated that the course of action followed by the
controlling shareholders of the group did not constitute an
abuse of rights. Intended to favor Alliant, the matter,
furthermore, motivated controlling shareholders to take action
and avoid a hostile takeover.

Thus, the strategy adopted by Alliant Energy in its press
release published in the U.S., once again, falsely claiming
abuse on the part of the administration or the company's
controlling shareholders, served only to publicly justify the
fact that, after years of claiming illegality and abuse of
power, Alliant Energy witnessed its arguments rejected by the
court, the shareholders' agreement terminated, all of its rights
set forth in it extinguished, and an indemnification established
equivalent to about 1.5% of the value initially requested.

Alliant Energy attempted to impede the reduction of capital and
sale of plants in order to force the closing of the third year
without a dividend payout. "The objective of the shareholder
veto in these operations was a hostile takeover, maximizing
profits from the future sale of their stake and conflicting with
the interests of the remaining minority shareholders. We could
not allow Alliant Energy, having already declared intentions to
leave Brazil, to assume the group's administration with this
kind of interest," said Ricardo Botelho, spokesman for the
controlling shareholders.

Botelho says that the Court of Arbitration's decision was
favorable for the controlling shareholders of Cataguazes-
Leopoldina since Alliant Energy will no longer have influence
over the company's administration after the conclusion of the
shareholders' agreement.

Ricardo Botelho considers that the end of the arbitration
concludes the legal discourse with the American partner over the
lawsuit. "CVM, Aneel and now the Court of Arbitration
acknowledged the legitimacy of the measures taken in the
Extraordinary General Meeting. Now, the Court of Arbitration
confirms that, besides being lawful, there was no abuse in the
strategy followed. We implemented those measures to protect the
minority shareholders, paying the dividends, at the company's
interest, and avoiding a hostile takeover of the company," he

"We regret," concluded Ricardo Botelho, "that Alliant Energy,
perhaps to impress its shareholders or to embarrass the
Cataguazes-Leopoldina administration, continues to pursue a
strategy of hollow threats explicitly meant to 'realize a return
on its investments' in Brazil through an agreement, as recently
confirmed many times over, in spite of their emphatic and, as
usual, untrue negative statements."

CONTACT: Itacatu for Cataguazes-Leopoldina
         Roberto Gonzales
         Tel: +011-55-21-3206-5071

TELEMAR: No Plans to Buy Brasil Telecom Shares
Telecoms operator Telemar, Brazil's largest telecoms operator,
emphatically said it is not interested in acquiring shares in
Brasil Telecom (BrT). Business News Americas said Telemar's
declaration came after a Telecom Italia consultant alleged that
the government and pension funds wanted a merger between Telemar
and BrT in the future.

"The sale of BrT to Telecom Italia is stalled because the
pension funds and Brazilian government didn't give up their
intention, in the future, to merge the company [BrT] with
Telemar," Telecom Italia consultant Naji Nahas told Brazilian
newspaper Folha de Sao Paulo.

Talks between US financial giant Citigroup (NYSE: C), three
pension funds - Previ, Petros and Funcef - and Telecom Italia
stalled when an offer by the Italians was rejected.

          Roberto Terziani - 55 (21) 3131-1208
          Carlos Lacerda - 55 (21) 3131-1314
          Fax: 55 (21) 3131-1155


EDT: ETB in Search of Investment Bank to Value Batelsa
The board of Colombian fixed line operator ETB has authorized
its management team to hire an investment bank to value
Barranquilla-based operator Batelsa, whose assets are up for
sale. Business News Americas recalls that Batelsa came into
existence as a result of the liquidation of EDT in May 2004.

Superservicios decided to liquidate EDT due to the Company's
poor financial state and transferred its operations to Batelsa.

EDT's assets, which are to be publicly auctioned anytime soon,
are worth at least COP205 billion (US$88.7 million). The price
was set by Giszella Arino, in charge of liquidating EDT.

Already, the government has received expressions of interest
from six firms for the assets. Superservicios head Evamaria
Uribe Tobon earlier revealed that these expressions of interest
came from state-run fixed line operator Colombia
Telecomunicaciones (Telecom), Medellin-based municipal telco EPM
and four foreign firms.

The auction will be a simple case of awarding the assets to the
company that bids most, Uribe said, adding, the proceeds would
go towards a fund to help payoff EDT's pension liability, which
was last (mid-2003) calculated at COP250 billion (US$108mn).

The auction will be managed by local investment bank Corporacion
Financiera del Valle.

TELECOM: Congress Praises Telmex Deal Delay
Colombia's congress applauded the indefinite suspension of the
tentative agreement to sell a controlling stake in fixed line
operator Colombia Telecomunicaciones (Telecom) to Mexico's
Telmex, says Business News Americas. Telmex and Telecom agreed
in August that the Mexican company would invest US$350 million
in Telecom for a stake of 50% plus one share. Telmex also said
it would assume pension and other liabilities at the carrier
valued at US$3.3 billion.

But Telecom, which is 99.99%-owned by the Colombian government,
said Wednesday it won't sign a memorandum of understanding with
Telmex and will instead open a bidding process for the state-
owned carrier.

"This was inevitable. I think it's normal, and for the first
time the government has acted sensibly. Without a doubt, so many
mistakes were made that they had to reorganize things in order
to have true competition," said Colombian congressman Wilson

Representative Rafael Amador also praised the indefinite
suspension, deeming it "positive and very convenient for the
country. This is a wonderful opportunity to choose the best
strategic partner and establish clear and transparent rules to
guarantee the protection of public assets."

Senator Jorge Enrique Robledo went even further, opposing any
sort of privatization of the Company and accusing international
institutions of acting against Colombian interests.

"Telecom should not be privatized and no one has demonstrated
with numbers that it needs a strategic partner. Everything going
on here is a result of orders from the International Monetary
Fund and the World Bank, which have decided to benefit private
monopolies and trans-nationals, and I think that's negative for
the country," said Mr. Robledo.

Meanwhile, Mexican businessman Carlos Slim said Thursday he
doesn't know yet whether Telmex, his flagship communications
company, will continue bidding for Telecom.

Speaking to reporters at an event in which Mexican business
leaders signed a "National Agreement for Unity," Mr. Slim denied
that Colombia had pulled out of the deal.

He said what Telmex had in Colombia was a "pre-agreement" which
included a period for other offers to be heard, but that now the
Colombian government has decided to proceed differently.

Asked whether Telmex would stick with its original offer, Mr.
Slim said, "I don't know."

Telmex spokesman Arturo Elias Ayub said Wednesday in a
conference call with reporters that the company would have to
take a look at the new process before making a decision whether
or not to enter.

* COLOMBIA: World Bank Extends CAS, Increases Funds For Peace
The World Bank sent on September 30, 2005 to the Board of
Directors the Progress Report on the Country Assistance Strategy
(CAS) for Colombia, which will be extended by one year -- though
June 2007 -- and include a new specific area of support for

The CAS Progress Report is a document that examines the progress
achieved in implementing the Bank's current CAS for Colombia,
begun in 2003, and proposes a strategy for consolidating the
institution's partnership with the country through June 2007.
The one-year extension is intended to allow enough time for the
administration resulting from the elections of 2006 to prepare a
new assistance strategy with the Bank.

"The general outlook in Colombia is positive," said Isabel
Guerrero, World Bank Country Director for Colombia and Mexico.
"The fiscal situation remains a challenge, but the economy has
been growing strongly since 2002, with private investment
rebounding, unemployment falling, and improved security
conditions. We will continue to support Colombia in its quest
for peace and development."

The Bank has been supporting Colombia to build the foundations
for peace since the mid-1990s, by assisting the displaced and
violence-affected rural poor, and promoting conflict prevention
and restoration of trust among communities. Now, under the
Government's request, the Bank will deepen this kind of
assistance and has added peace as a specific fourth priority
area of support. The other areas supported by the CAS are
achieving rapid and sustainable growth; ensuring that all
Colombians share in that growth, particularly those living in
poverty; and building an efficient, accountable and transparent
government administration.

Under the "Peace Pillar," the World Bank will support the second
phase of the Peace and Development Adaptable Program Loan, with
$150 million, the second phase of the Protection of Patrimonial
Assets Grant, with   $1 million, and a Global Environment
Facility (GEF) $9 million grant related to Cultural Diversity
and Peace.

In addition, the Bank will conduct specific studies related to
peace and development, such as an analysis of national and
global experience in the demobilization and socioeconomic
reintegration of ex-combatants, and an assessment of the
situation of other vulnerable groups such as children/orphans,
youth, women and particular ethnic groups affected by violence.

Since the beginning of 2003, the Bank has approved lending for
$2.3 billion to support sustainable development, mass transit,
reduction of disaster vulnerability, agriculture, and peace and
development. The Bank will maintain the high case lending
program of up to $1 billion per year during the remainder of the
CAS period through June 2007.

CONTACT: World Bank
         Gabriela Aguilar
         Phone: (5255) 5480-4200

         Alejandra Viveros
         Phone: (202) 473-4306


C&W JAMAICA: Introduces Rates Reduction Plan
Cable & Wireless Jamaica (C&WJ) unveiled a new mobile plan that
reduces cross-network call charges by 45%, reports Business News
Americas. Under the plan called "Anyone plan," calls from a C&WJ
cellphone to other cellular networks or landline phones will be
reduced to J$10 (US$0.16) per minute during peak hours and J$8
during off-peak hours.

Previously, calls from a C&WJ cellphone to other networks like
Digicel or Miphone cost J$17.50.

The initiative, according to C&WJ CEO Rodney Davis, would be
backed by a J$100-million marketing campaign and that there was
an additional J$500-million slate for network upgrades. DMr.
avis added that C&WJ had invested more than J$3 billion over the
past 18 months in adding 150 new sites to the Company's network

Reacting to C&WJ's new plan, Digicel's commercial director,
Harry Smith, said that while C&WJ has reduced rates on cross-
network calls, they have actually increased their rates to their
own customers by 14%.

By comparison, Digicel customers have always been able to call
each other at lower rates, Mr. Smith said.

Mr. Smith added that, although C&WJ had announced they would be
spending J$100 million on marketing, Digicel spends over J$130
million per month on handset discounts for customers through
their loyalty plan.

"Digicel has further enhanced their loyalty scheme to include
Digicel points and starting October 1, customers will be able to
redeem their points to get discounts on new handsets," said Mr.
Smith. "We are firmly committed to rewarding our loyal


LFC: High Operating Costs Lead to 1.43B Loss in Jan-July
State-owned power distributor Luz y Fuerza del Centro (LFC)
finished the first seven months of 2005 with a loss of MXN15.4
billion (US$1.43bn), Business News Americas reports, citing
newspaper Milenio. LFC attributes its enormous loss to high
operating costs, which include wholesale energy purchases from
state power company CFE and labor costs related to workers
payroll and pensions. The Company's revenues reached US$2.26
billion during the period but operating costs were US$3.7

The federal government paid LFC subsidies totaling US$1.56
billion in the seven-month lapse to offset the higher costs, but
these are still too high compared to the prices the Company
charges its customers.

MERIDIAN AUTOMOTIVE: Posts $6.3 Million Net Loss in August 2005
               Meridian Automotive Systems - Composite
                  Operations, Inc. and Subsidiaries
                Unaudited Consolidated Balance Sheets
                      As of August 31, 2005
                           (In Thousands)

    Cash                                                      -
    Accounts receivable, net                           $129,232
    Intercompany receivable                              16,086
    Inventories                                          74,941
    Tooling costs in excess of billings and others       23,269
       TOTAL CURRENT ASSETS                             243,528

    Property, plant and equipment, net                  237,463
    Intangible assets                                    15,603
    Investment in subsidiaries                           23,863
    Other assets                                         19,042
       TOTAL ASSETS                                    $539,499

    Current portion of long term debt                  $286,952
    Accounts payable                                     36,373
    Accrued expenses                                     48,774
    Tooling billings in excess of costs                  10,535
       TOTAL CURENT LIABILITIES                         382,634

    Liabilities subject to comprise                     458,716
    Non-Current Liabilities Not Subject to Compromise:
       Long-term debt, less current portion              31,822
       Other long-term liabilities                       16,366
       Accumulated post-retirement benefit obligation    16,138
       TOTAL LIABILITIES                                905,676
       STOCKHOLDERS' EQUITY                            (366,177)

               Meridian Automotive Systems - Composite
                  Operations, Inc. and Subsidiaries
                  Unaudited Statement of Operations
                       August 1 to 31, 2005
                          (In Thousands)

Net sales                                               $82,803
Cost of sales                                            75,510
Gross profit                                              7,293
Selling, general and administrative expenses              2,378
Restructuring charges                                       248
Operating income                                          4,667
Interest expense, net                                     7,492
Other income (expense)                                       21
Chapter 11 and related reorganization items               3,462
Loss before provision for income taxes                   (6,266)
Provision for income taxes                                   29
NET LOSS                                                ($6,295)

               Meridian Automotive Systems - Composite
                  Operations, Inc. and Subsidiaries
                  Unaudited Statement of Cash Flows
                       August 1 to 31, 2005
                          (In Thousands)

    Net loss                                            ($6,295)
    Adjustments required to reconcile net loss to net
       cash provided by (used in) operating activities:
       Depreciation, amortization, and impairment         3,893
       Change in working capital and other operating
          items                                         (14,027)
       Net cash provided by operating activities
          before reorganization items                   (16,429)
    Operating cash flows from reorganization items:
       Chapter 11 and related reorganization items        3,462
       Payments on Chapter 11 and related reorg items      (100)
       Net cash provided by Chapter 11 and related
          reorg items                                     3,362

       Net cash used for operating  activities          (13,067)

    Additions to property and equipment                  (5,090)
    Proceeds from sale or property and equipment              -
       Net cash used for investing activities            (5,090)

    Proceeds from prepetition borrowings                      -
    Repayments of prepetition borrowings                      -
    Proceeds from DIP credit facility                    46,400
    Repayments of DIP credit facility                   (28,200)
    Repayments on prepetition long-term debt                  -
    Deferred financing costs capitalized                    (43)
       Net cash provided by financing activities         18,157
Net increase (decrease) in cash                               -
Cash and Cash Equivalents, beginning of period                -

Cash and Cash Equivalents, end of period                      -

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., EdmonL. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks,Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  When
the Debtors filed for protection from their creditors, they
listed $530 million in total assets and approximately $815
million in total liabilities. (Meridian Bankruptcy News, Issue
No. 15; Bankruptcy Creditors' Service, Inc., 215/945-7000).

METROFINANCIERA: Moody's Affirms Ratings, Stable Outlook
Moody's affirmed Friday the national scale and global
scale B1 ratings of Mexican home finance company
Metrofinanciera. According to Business News Americas, the
ratings reflect the Company's size in the home finance market,
technological leadership, efficiency and good asset quality.

The stable outlook assigned to the ratings takes into account
the Company's success in diversifying its funding base through
the sale of mortgage-backed securities.

The outlook also considers Moody's expectation that the Company
will reposition its loan book, which is heavily weighted toward
riskier bridge loans, to include more individual mortgages.

UNITED RENTALS: Moody's Confirms Corporate Family Rating at B2
Moody's Investors Service confirmed the ratings of United
Rentals (North America) Inc. and its related entities; Corporate
Family Rating at B2 and Speculative Grade Liquidity Rating at
SGL-3.  The rating outlook is negative. T he confirmation
concludes a review for possible downgrade that was initiated on
July 14, 2005 related to risks associated with ongoing
accounting investigations at the company.

Subsequently, United Rentals has announced the completion of a
consent solicitation with bondholders that allows the company
until March 31, 2006 to resolve its internal accounting
investigations and bring all financial reporting with the
Securities and Exchange Commission current.  The rating
confirmation recognizes that near term risk of acceleration of
the company's debt structure has been eliminated by the waivers
provided by bondholders under the consent solicitations.

However, in maintaining the negative outlook, Moody's
acknowledges that absent further waivers from lenders or
ultimate resolution of the accounting investigation and filing
of financial statements, the company could face renewed risk of
debt acceleration within the next six months.

The B2 rating is positioned to reflect Moody's belief that
despite risks to the company's capital structure and liquidity
profile posed by issues related to the accounting
investigations, United Rentals' overall business profile remains
sound.  The market for equipment rental has benefited from
favorable economic trends, and United Rentals' broad market
presence enables it to benefit from these trends.  Summary
financial information disclosed by the company, while subject to
revision under the accounting investigation, indicates that
revenue, earnings and cash flow performance remains sound.

Nevertheless, the company's inability to file financial
statements could have permitted bondholders to declare technical
defaults and potentially accelerate the debt.  Moody's believes
that the consent solicitation brings important stability to the
company's capital structure and liquidity profile as it works to
resolve the internal accounting matters.  It is also noted that
until the company's regulatory financial reporting requirements
are brought current, some additional transparency into the
company's performance will be provided under a condition in the
agreement with bondholders that requires the company to file
monthly Form 8K disclosing certain information about the status
of its operations.

The SGL-3 Speculative Grade Liquidity rating reflects Moody's
belief that despite the indication of favorable operating
performance, the company's ability to maintain an adequate
liquidity profile over the next 12 months is contingent on its
ability to resolve its current financial reporting
delinquencies. Financial information published by the company
indicates that cash flow from operations should be adequate to
fund near term operating requirements and that the company
remains in compliance with financial covenants in its bank

Moreover, the company continues to maintain considerable balance
sheet liquidity with approximately $250 of reported cash as of
June 30, 2005.  The company currently maintains access to its
bank credit facility (approximately $450 million available under
a $650 million facility) by virtue of financial reporting
waivers granted through December 31, 2005 and a $200 million
accounts receivable securitization facility maturing September
2009.  Nevertheless, absent the company's ability to bring its
financial reporting current, further bank waivers would be
required to maintain availability of the facility.

The negative rating outlook recognizes that the waivers granted
under the consent solicitation last through March 31, 2006 and
that similar waivers granted by the company's bank lenders only
last through December 31, 2005.  Unless United Rentals makes
significant near term progress in resolving its accounting
investigation and bringing its financial reporting current, the
company could face renewed financial risks and the rating could
be further downgraded.  The negative outlook also considers
other associated factors, including:

   * the company's need to resolve a pending SEC inquiry;

   * potential material weaknesses in internal controls and
     accounting practices based on Section 404 of the
     Sarbanes Oxley Act;

   * pending shareholder litigation; and

   * the need to complete a search for a permanent Chief
      Financial Officer.

Factors which could contribute to a stabilization of United
Rentals' outlook include:

   * bringing all financial statements current;

   * demonstrating continued favorable operating trends once the
     accounting investigations are completed;

   * preserving a sound liquidity profile;

   * clearing the SEC inquiry and any pending shareholder
     litigation; and

   * demonstrating progress in implementing adequate internal
     accounting and control procedures.

Factors which might result in further downgrading of the
company's ratings include:

   * further delays in filing its financial statements
     particularly if further waivers from lenders or bondholders
     were likely to be needed;

   * any erosion of the company's liquidity profile;

   * any restatements that demonstrated a material weakening of
     the company's financial metrics;

   * any broadening or extension of the SEC inquiry; or

   * any evidence of erosion in the company's financial

United Rentals, headquartered in Greenwich, Connecticut, is the
world's largest equipment rental company.  The company also
sells new and used equipment and contractor supplies. (Troubled
Company Reporter, Oct, 3, 2005, Vol. 9, No. 234)

P U E R T O   R I C O

DORAL FINANCIAL: Moody's Continues Ratings Review
The ratings of Doral Financial Corp., Puerto Rico's largest
mortgage lender, are still under review for possible downgrade
by Moody's Investors Service, reports Business News Americas. On
September 6, Moody's cut Doral's senior debt to Ba1 from Baa3
following the Company's decision to restate several years of
financial statements and delay filing first and second quarter
results. At the time, Moody's kept the ratings under review for
further possible downgrade.

At the time, Moody's also said it expected to conclude the
review by September 30. However, Moody's decided to extend its
review taking into consideration these factors: Doral's
announcement that it expects to file the restatements by
November 10, the Company's liquidity position is sufficient to
meet its obligations through mid-2007, and Doral's mortgage
franchise has managed to weather the corporate turmoil.

Moody's said it will most likely confirm Doral's rating if it
files on time and there is no deterioration in its franchise or
liquidity position. If the Company files as anticipated, but
financial fundamentals weaken or Doral loses market standing,
Moody's could lower the ratings further.

T R I N I D A D   &   T O B A G O

MIRANT CORP.: Gets New Management Head for Trinidad Ops
The responsibility of heading Atlanta-based electricity company
Mirant Corp.'s operations in the Trinidad & Tobago has been
assigned to Charles Matthews, The Jamaica Observer reports. Mr.
Matthews is currently the President and CEO of the Jamaica
Public Service Company (JPSCo), a unit of Mirant. His new
Trinidad assignment will not change his position at JPSCo, but
he will have a CEO in Trinidad report directly to him.

"I will be the chairman of PowerGen (Mirant's Trinidadian
subsidiary) management committee with that company's CEO
reporting directly to me," Mr. Matthews said.

Matthews will also report directly to Curt Morgan, the executive
vice-president and chief operating officer at Mirant, who has
been appointed chairman of JPSCo's board of directors effective
September 29, 2005.

Mirant has had a presence in Trinidad & Tobago for approximately
10 years, making it a mature market, and so does not require
Matthews' day-to-day presence. It has operating responsibility
for the Power Generation Company of Trinidad and Tobago
(PowerGen) and holds a 39% stake, with the energy giant BP
holding 10%, leaving the government as the majority holder with


URAGUA: Reaches Friendly Takeover Agreement with OSE
After several months of squabbling, state water utility OSE has
finally come to a friendly deal with private water operator
Uragua, reports Business News Americas. Under the deal, OSE will
take over the water and sewerage services of Uragua before
November. The idea is for OSE to be in control of the services
before the start of the southern hemisphere summer, given that
Uragua is responsible for services on the Atlantic coast of

The takeover will be done gradually and although most employees
will now be taken on by OSE, the management will be replaced by
state officials, says Business News Americas.

The conflict between OSE and Uragua erupted last October
following a constitutional reform that called for the state to
take control of all water and sewerage services.

Thinking the reform would mean it could no longer legally
continue providing its services, Uragua demanded that the
authorities take over.

However, the state was adamant that contracts signed prior to
the reform would not be affected and it accused the Company of
not fulfilling its contract obligations.

Consequently, relations became rather tense and the Company
filed various lawsuits, including a US$24 million claim for

But since an agreement has been reached, sources expect Uragua
to drop the lawsuit.

Meanwhile, Carlos Colacce, CEO of OSE, was reported to have said
that the aim was to have an agreement signed between September
29 and October 3.


PDVSA: To Form Two Production JVs with Repsol YPF
Repsol YPF chairman and chief executive officer, Antonio Brufau,
signed a wide reaching regional Memorandum of Understanding at
the oil summit held in Brasilia with the chiefs of state from
Brazil, Luiz Inacio Lula da Silva; Argentina, Nestor Kirchner;
and Venezuela, Hugo Chavez. The Spanish-Argentine company will
obtain new oil concessions in Venezuela and will participate in
the oil activity that country has with Argentina.

As a result of this agreement, Repsol YPF and PDVSA will form
two production joint ventures in Venezuelan basins that are
considered to have a high potential for oil. The first joint
venture will operate in Venezuela at Barua-Motatan, as well as
in other possible areas.

Concurrently, a joint venture will be formed between the two oil
companies to operate the Junin 7 and or other blocks in the
Orinoco oil belt in the southeast of Venezuela and which is
considered to be one of the principle reserves of heavy and
extra heavy crude oil in the world.

Furthermore, this regional Memorandum of Understanding
contemplates the association of Repsol YPF and PDVSA, where the
Spanish company will make a portion of its crude oil originating
from the Argentine State concessions available for Petroleos de
Venezuela. The percentage of the crude oil that will be made
available to PDVSA will not surpass 10% of the production of the
said concessions. This agreement will not affect the ownership
of the concessions, which will remain Repsol YPF's.

At the same time, Repsol YPF could make the commitment to sell
crude oil and derivative products to PDVSA to meet its supply
needs in the Argentine market.

This Memorandum Of Understanding for Repsol YPF is an important
step forward in its growth strategy, which contemplates a
strengthening of its relations with national oil companies in
countries where it operate. In the case of Venezuela, this
agreement will allow Repsol YPF to consolidate its alliance with
the state oil company, PDVSA, and which is the first agreement
of its kind in that country.

Following the signing of the Memorandum Of Understanding, Repsol
YPF chairman and chief executive officer Antonio Brufau said
"this is the result of the good relationship that exists between
the two companies," and added that "this confirms the strategic
interest that Repsol YPF has in this region where it is the
leading publicly traded oil company."

For his part, Rafael Ramirez, the chairman of Petroleos de
Venezuela expressed his satisfaction with the Memorandum Of
Understanding "that demonstrates the high level of understanding
achieved with Repsol YPF and which will facilitate the
development of PDVSA's activities in Argentina."

Hydrocarbon Production in Argentina

In 2004, the total net production of Repsol YPF in Argentina was
276.2 million barrels of oil equivalent, with proved net
reserves of oil and gas estimated at the end of the year to be
2,364 million beop, equivalent to 8.6 years of production, based
on the rate of production for 2004.

At the end of 2004, Repsol YPF had in Argentina mining rights to
113 blocks: 27 exploration blocks, with a total net area of
62,981 km2, and 86 exploitation blocks with a total net area of
24,834 km2, in the Neuquina, San Jorge, Austral, Cuyana and
northwest basins.

Hydrocarbon Production In Venezuela

Repsol YPF is the leading publicly traded company in hydrocarbon
production in Venezuela and the leader in gas production. Net
production was 15.7 million barrels of oil and liquids separated
from natural gas and 110.8 BCF of gas, with a total equivalent
of 35.5 million BEOP (96,888 BEPD), coming primarily from the
Mene Grande, Quiriquire, Quiamare-La Ceiba, and Guarico
Occidental blocks, which are all operated by Repsol YPF. The
proved net reserves for liquids and natural gas at the end of
the year were estimated at 261.6 millions BEOP.

As of 31 December 2004, Repsol YPF had in Venezuela mining
rights to 7 blocks: one exploration block, with a total net area
of 1,970 km2 and 6 exploitation blocks, with a total net area of
5,902 km2. Venezuela is the fifth producer of oil in the world
and the number one provider to the market in the United States.

PDVSA: To Ship 240,000 Barrels of Gasoline to CITGO
CITGO Petroleum Corporation is scheduled to receive a shipment
of 240,000 barrels of gasoline at the Port of Houston from
Venezuela on Monday.  Parent company Petroleos de Venezuela,
S.A. (PDVSA) is sending the shipment as part of its pledge of
one million barrels of gasoline to help alleviate fuel shortages
in the aftermath of hurricanes Katrina and Rita.

"We are doing our utmost to keep supplies to the market and
fight any price speculation," said Felix Rodriguez, CITGO
President and C.E.O.

"Our Lake Charles Manufacturing Complex suffered some damage
from Hurricane Rita. The extent of that damage is still being
assessed, but that makes the contributions of our Corpus
Christi, Texas and Lemont, Illinois refineries all the more
important as we do everything we can to prevent product
shortages from becoming any more acute," he added.

The gasoline will be distributed through the Eagle and Colonial
Pipeline Systems, which serve Texas and the Southeast region of
the United States.

PDVSA will continue to offer its support to CITGO in order to
maintain supplies to the U.S. marketplace and avoid an
escalation in prices.

CITGO, based in Houston, is a refiner, transporter and marketer
of transportation fuels, lubricants, petrochemicals, refined
waxes, asphalt and other industrial products.  The company is
owned by PDV America, Inc., an indirect wholly owned subsidiary
of Petroleos de Venezuela, S.A., the national oil company of the
Bolivarian Republic of Venezuela.

CONTACT: CITGO Petroleum Corporation
         Investor Relations
         Ms. Kate Robbins
         Public Affairs Manager
         Phone: (832) 486-5764

SIDOR: Class B Sharehold Dividend Expected Shortly
Basic industry and mining (Mibam) minister Victor Alvarez said
that the official announcement of the payment of cash flow
surplus to class B shareholders of steelmaker Sidor will be made
shortly, relates Business News Americas.

"It's only a few days for the comptroller's definitive
announcement that will allow the payment to become official," he

The payment "has not been used for other purposes," the official
said in response to concerns from workers that state heavy
industry holding company CVG had earmarked the money for other

CVG and Sidor shareholders reached agreements in May this year,
whereby CVG recognized the rights of series B shareholders to a
US$94 million dividend payment.

In the first payment, CVG distributed US$35.8 million of cash
surplus among Sidor workers.

Out of the US$94 million, 20% will go to pay down debt resulting
from when workers bought shares. Future dividend payments will
include 20% for debt and 80% cash, changing later on to 50% debt
and 50% cash, and then again 20% and 80% and so on. This plan
will be implemented for CVG's future revenues from Sidor cash
surplus until debt has been written off.

"From then on series B shareholders will receive 100% of their
respective surplus portion," Mr. Alvarez said.


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

Troubled Company Reporter - Latin America is a daily newsletter
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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