TCRLA_Public/051011.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 11, 2005, Vol. 6, Issue 201

                            Headlines

A R G E N T I N A

ARBOL ALTO: Enters Bankruptcy on Court Orders
ARCANGEL GABRIEL: Court Approves Reorganization Request
BELCAR S.R.L.: Court Rules for Liquidation
FEHU S.R.L.: Enters Bankruptcy on Court Orders
HIPOLITO DADONE: Informative Assembly Set

INDUSTRIAS WALTER: Liquidates Assets to Pay Debts
IRSA: Board, Shareholders to Decide on Merger
JINARG S.A.: Court Converts Bankruptcy to Reorganization
M.P. EDICIONES: Gears for Reorganization
MECAFER CONSTRUCTORA: Seeks Reorganization Approval from Court

PERSPECTIVA S.A.: Court Appoints Trustee for Reorganization
POLERO Y HENDI: Begins Liquidation
SANATORIO MODELO: Debt Payments Halted, Set To Reorganize
TRANSPORTE 4H: Seeks Court Approval to Commence Reorganization


B E R M U D A

PORTUS ALTERNATIVE: OSC Commences Proceedings Against Company
PXRE GROUP: Completes Common Stock Offering
PXRE GROUP: Completes Perpetual Preferred Shares Offering


B O L I V I A

GRAVETAL BOLIVIA: Moody's Assigns B3 Rating on Bonds


B R A Z I L

BRASKEM: Proposals for Isoprene Revamp, Tanking Approved
CEMIG: Board Proposes Second Remuneration Period
CESP: Rio Bravo, Citibank to Manage CTEEP Privatization
ELETROPAULO METROPOLITANA: S&P Assigns `B' Ratings
ROYAL SHELL: Lawmaker Seeks Probe on Oil Production Operations


C A Y M A N   I S L A N D S

A.V.E. NORTH AMERICA: Shareholders Resolve to Wind Up Company
FULLBACK CORPORATION: Le Roux, Goddard Appointed as Liquidators
JAPAN REVIVAL: Appoints Mark Wanless, Tun Win as Liquidators
INS CAYMAN: Mark Wanless, Tun Win Appointed as Liquidators
LIVES XXX: Submission of Debt Claims to End Nov. 3

LMCG MEDSCIENCE: Creditors to Send Debt Details Before Oct. 16
PREDRILL STRESSES: Shareholders Decide on Voluntary Wind-Up
ROXIO CI: Creditors to Send Debt Details Before Oct. 16


C O L O M B I A

WEST CARIBBEAN: Must Present Plan Next Week to Avoid Liquidation
* COLOMBIA: Ratings Reflect Improving Liquidity, Debt Position


H O N D U R A S

HONDUTEL: Earmarks Up to $7M For IP Technology Upgrade


J A M A I C A

AIR JAMAICA: Profits Likely in 4 Years Says Outgoing Chairman


M E X I C O

AEROMEXICO/MEXICANA: To Get Stake in Privatized Airlines
AOL LATIN AMERICA: Enters Termination Agreement with Stockholder
LUZ Y FUERZA: No Merger with CFE Says Energy Secretary


P A R A G U A Y

ACEPAR: Authorities to Intervene in Dispute with Scrap Producers
* PARAGUAY: Ratings Reflect Improving Political Environment


T R I N I D A D   &   T O B A G O

CARIB BREWERY: 147 Workers Face Layoffs


V E N E Z U E L A

PDVSA: Reveals $2.1B Investment for Refining in LatAm Region
SIDOR: To Open Final Round of Share Sale

     -  -  -  -  -  -  -  -

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

ARBOL ALTO: Enters Bankruptcy on Court Orders
---------------------------------------------
Arbol Alto Grupo Editorial S.R.L. enters bankruptcy protection
after the court ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to a
court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Mr. Carlos Daniel
Brezinski as trustee. Mr. Brezinski will be verifying creditors'
proofs of claim until the end of the verification phase on Feb.
20, 2006.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on April 3, 2006 followed by the general report, which is due on
May 16, 2006.

CONTACT: Arbol Alto Grupo Editorial S.R.L.
         Lambare 1140
         Buenos Aires

         Mr. Carlos Daniel Brezinski, Trustee
         Lambare 1140
         Buenos Aires


ARCANGEL GABRIEL: Court Approves Reorganization Request
-------------------------------------------------------
Arcangel Gabriel Vezzano S.A. will begin reorganization
following the approval of its petition by the Buenos Aires'
civil and commercial court. The opening of the reorganization
will allow the Company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Mr. Luis Pedro Pereyra will oversee the reorganization
proceedings as the court-appointed trustee. He will verify
creditors' claims until Nov. 18, 2005. The validated claims will
be presented in court as individual reports on Feb. 1, 2006.

Mr. Pereyra is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on March 15, 2006.

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. 29, 2006.

CONTACT: Mr. Luis Pedro Pereyra, Trustee
         Roque Saenz Pena 651
         Buenos Aires


BELCAR S.R.L.: Court Rules for Liquidation
------------------------------------------
Rosario's civil and commercial court ordered the liquidation of
Belcar S.R.L. after the Company defaulted on its obligations,
Infobae reveals. The liquidation pronouncement will effectively
place the Company's affairs as well as its assets under the
control of Ms. Silvia Alcira Ganem, the court-appointed trustee.

Ms. Ganem will verify creditors' proofs of claim until Nov. 22,
2005. The verified claims will serve as basis for the individual
reports to be submitted in court on Feb. 7, 2006. The submission
of the general report follows on March 21, 2006.

The case will end with the disposal of the Company's assets in
favor of its creditors.

CONTACT: Ms. Silvia Alcira Ganem, Trustee
         Santa Fe 1261
         Santa Fe


FEHU S.R.L.: Enters Bankruptcy on Court Orders
----------------------------------------------
Buenos Aires' civil and commercial court declared Fehu S.R.L.
bankrupt after the Company defaulted on its debt payments. The
bankruptcy order effectively places the Company's affairs as
well as its assets under the control of court-appointed trustee,
Mr. Pedro Mazzola.

As the trustee, Mr. Mazzola is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Dec. 5, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court. A general report will also be submitted.
The dates for the submissions of these reports are yet to be
disclosed.

Infobae reports that the case will end with the disposal of the
Company's assets in favor of its creditors.

CONTACT: Mr. Pedro Mazzola, Trustee
         Cramer 1859
         Buenos Aires


HIPOLITO DADONE: Informative Assembly Set
-----------------------------------------
Hipolito Dadone e Hijos S.R.L. will endorse the settlement
proposal, drafted from the submitted claims, for approval by the
creditors during the informative assembly scheduled on Oct. 24,
2005.

The Company successfully petitioned for reorganization after
Villa Maria's civil and commercial court issued a resolution
opening the Company's insolvency proceedings.

CONTACT: Hipolito Dadone e Hijos S.R.L.
         Villa Maria (Cordoba)


INDUSTRIAS WALTER: Liquidates Assets to Pay Debts
-------------------------------------------------
Santa Fe-based Industrias Walter S.A. will begin liquidating its
assets following the pronouncement of the court that the Company
is bankrupt, reports Infobae.

The bankruptcy ruling places the Company under the supervision
of a court-appointed trustee. The trustee will verify creditors'
proofs of claim. The validated claims will be presented in court
as individual reports.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy.

The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.

CONTACT: Industrias Walter S.A.
         Calle 10 (Ruta NA 178) y calle 11
         Las Parejas, Depto. Belgrano (Santa Fe)


IRSA: Board, Shareholders to Decide on Merger
---------------------------------------------
The Board of Directors and shareholders of IRSA Inversiones Y
Representaciones Sociedad Anonima will decide on the merger of
the Company with Buenos Aires, Trade & Finance Center S.A.

In addition to the merger, the Board of Directors will propose
for shareholders approval:

- The payment of the Directors' remuneration for the amount of
Argentinean pesos $7,400,000;

- The analysis of the last period, which result in a profit of
Argentinean pesos $103,245,000;

By virtue of its assumed financial covenants, the Company is not
planning to distribute dividends in cash.

The decision will be made during an Ordinary and Extraordinary
Shareholder's Meeting to be held on November 1, 2005 in the
Company's premises at 4:00 p.m., Buenos Aires time.

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


JINARG S.A.: Court Converts Bankruptcy to Reorganization
--------------------------------------------------------
Jinarg S.A. will meet creditors in an informative assembly on
Dec. 14, 2005 to propose the completed settlement plan, states
Infobae.

The Company underwent reorganization after a Reconquista's civil
and commercial court converted the Company's ongoing bankruptcy
case into a "concurso preventivo".

Ms. Teresa Zulema Marin, the court-appointed trustee, will
verify creditors' proofs of claim until June 24, 2005. Creditors
with unverified claims cannot participate in the Company's
settlement plan.

Out of the verified claims, Ms. Marin prepared individual
reports and submit them on Aug. 29, 2005. The trustee then
submitted the general report on the Company's case on Oct. 11,
2005.

CONTACT: Jinarg S.A.
         San Martin 1675
         Avellaneda (Santa Fe)

         Ms. Teresa Zulema Marin, Trustee
         San Martin 1001
         Reconquista (Santa Fe)


M.P. EDICIONES: Gears for Reorganization
----------------------------------------
Buenos Aires' civil and commercial court issued a resolution
opening the reorganization of M.P. Ediciones S.A. This
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. The reorganization allows accounting firm Estudio
Chiaia, Stoltzing y Asociados to retain control of its assets
subject to certain conditions imposed by Argentine law and the
oversight of the court appointed trustee.

Estudio Chiaia, Stoltzing y Asociados will serve as trustee
during the course of the reorganization. The trustee will be
validating creditors' proofs of claim until Nov. 25, 2005. The
results of the verification will be presented in court as
individual reports on Feb. 9, 2006. The trustee is also
obligated to give the court a general report of the case on
March 23, 2006. The general report summarizes events relevant to
the reorganization and provides an audit of the Company's
accounting and business records.

The trustee will present the completed settlement proposal to
its creditors during the informative assembly scheduled on Sep.
13, 2006.

CONTACT: M.P. Ediciones S.A.
         Moreno 2062/64
         Buenos Aires

         Estudio Chiaia, Stoltzing y Asociados
         Suipacha 190
         Buenos Aires


MECAFER CONSTRUCTORA: Seeks Reorganization Approval from Court
--------------------------------------------------------------
The court is currently reviewing the merits of the
reorganization petition filed by Mecafer Constructora Integrada
S.A. Infobae reports that the Company filed the request after
defaulting on its debt payments.

The reorganization petition, if granted by the court, will allow
Mecafer Constructora Integrada S.A. to negotiate a settlement
with its creditors in order to avoid a straight liquidation.

CONTACT: Mecafer Constructora Integrada S.A.
         Montevideo 251 Piso 3A


PERSPECTIVA S.A.: Court Appoints Trustee for Reorganization
-----------------------------------------------------------
Perspectiva S.A., a company operating in La Plata, is ready to
start its reorganization after the court appointed Mr. Marcelo
Oscar Maffe to supervise the proceedings as trustee.

An Infobae report states that Mr. Maffe will verify creditors
claims until Nov. 14, 2005. Afterwards, he will present these
claims as individual reports for final review by the court on
Feb. 20, 2006. The trustee will also provide the court with a
general report pertaining to Perspectiva's reorganization on
April 10, 2006. The court has scheduled the informative assembly
on May 23, 2006.

CONTACT: Perspectiva S.A.
         Calle 14 Nro. 628
         La Plata

         Mr. Marcelo Oscar Maffe, Trustee
         Calle 12 Nro. 883
         La Plata


POLERO Y HENDI: Begins Liquidation
----------------------------------
Polero y Hendi S.R.L. of Buenos Aires will begin liquidating its
assets after the court declared the Company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee, Ms. Patricia Sandra
Ferrari.

The trustee will review claims forwarded by the Company's
creditors until Nov. 25, 2005. After claims verification, will
submit the individual reports for court approval on Feb. 9,
2006. The general report will follow on March 23, 2006.

CONTACT: Ms. Patricia Sandra Ferrari, Trustee
         Viamonte 1653
         Buenos Aires


SANATORIO MODELO: Debt Payments Halted, Set To Reorganize
---------------------------------------------------------
Buenos Aires' civil and commercial court is reviewing the merits
of Sanatorio Modelo Quilmes S.A. petition to reorganize. Infobae
recalls that the Company filed the petition following cessation
of debt payments. Reorganization will allow Sanatorio Modelo
Quilmes S.A. to avoid bankruptcy by negotiating a settlement
with its creditors.

CONTACT: Sanatorio Modelo Quilmes S.A.
         Avda. de Mayo 1260
         Piso 5A ""H"""



TRANSPORTE 4H: Seeks Court Approval to Commence Reorganization
--------------------------------------------------------------
Transporte 4H S.R.L., a company operating in Buenos Aires, has
requested permission to reorganize after failing to pay its
liabilities, Infobae reports.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

CONTACT: Transporte 4H S.R.L.
         Cordoba 836
         Piso 2A Oficina 210



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

PORTUS ALTERNATIVE: OSC Commences Proceedings Against Company
-------------------------------------------------------------
A Notice of Hearing has been issued by the Ontario Securities
Commission (the "Commission") and a Statement of Allegations
delivered to commence a public interest hearing before the
Commission with respect to Portus Alternative Asset Management
Inc. ("PAAM"), Portus Asset Management Inc. ("PAM"), Boaz Manor,
Michael Mendelson, Michael Labanowich and John Ogg.

Commission staff ("staff") also filed charges with the Ontario
Court of Justice against Manor under section 122 of the
Securities Act.

The staff allege that between approximately January of 2003 and
August of 2005, PAAM, PAM and a shell company incorporated in
the British Virgin Islands, PAAM BVI (collectively "Portus"),
engaged in an illegal distribution of securities. Portus did so
by offering units of non-prospectus qualified mutual funds
directly to retail investors. In addition, retail investors were
not given adequate disclosure as to the investments being made
and the fees associated with those investments. Staff allege
that investors were misled into believing that the investment
structures offered by Portus would provide them with principal
protection, favourable tax treatment and 100% Canadian content
for registered accounts.

In total, approximately 26,000 Canadian investors, the majority
of whom reside in Ontario, invested approximately $750 million
(Cdn) in the domestic structures offered by Portus and $52
million (US) in the offshore structure offered by Portus. With
respect to the domestic structure, staff alleges that
approximately $95.4 million was improperly diverted by Portus to
pay fees (including referral and trailer fees), to fund Portus'
ongoing administrative costs, and to fund redemptions. Staff
also alleges that Portus' use of these funds shows that its
operations could not be sustained without the continual infusion
of new investor money.

In addition, staff alleges that none of the funds collected by
Portus for investment in the purported offshore structure was
actually invested. Instead, Manor, the directing mind and chief
architect of all of the investments offered by Portus,
personally withdrew approximately EURO $1.6 million in cash,
used approximately USD $2.7 million for the payment of his legal
fees in connection with the matters at issue, and used
approximately USD $11 million for the purchase of gems and
precious metals. Manor has failed or refused to return these
funds and assets to investors.

At the request of the Commission, on March 4, 2005, KPMG was
appointed Receiver over the assets, undertakings and property of
the Portus group of companies and other related entities. KPMG
is continuing its efforts to locate and secure assets for
ultimate distribution to investors. The results of KPMG's
efforts to date are set out in its Ninth Report to the Court
dated September 19, 2005, a copy of which can be found on KPMG's
website (www.kpmg.ca).

Staff also alleges that Manor intentionally and irreparably
frustrated their investigation of this matter by deleting and
destroying all data associated with the offshore structure and
numerous client and other records relating to the domestic
investment structures. Staff alleges that Manor created numerous
false documents in an effort to hide the true use of investors'
funds.

Manor's conduct as the chief architect and directing mind of the
illegal distributions and his conduct in directing the
destruction and falsification of documents is the subject of the
charges filed in the Ontario Court of Justice. Specifically,
Manor is charged under subsection 122(1)(a) of the Act with
destroying material documents and submitting misleading
information to the Commission. Manor is also charged under
subsection 122(1)(c) of the Act with: (i) directing the trading
of non-prospectus qualified mutual funds without proper
registration, contrary to section 25 of the Act and; (ii)
directing the distribution of units in such funds without having
filed a preliminary prospectus and prospectus and obtaining
receipts therefor, contrary to section 53 of the Act.

Manor fled to Israel in early April during Staff's investigation
of these matters and has not returned to Canada.

As set out in the Statement of Allegations, the staff alleges
that the remaining individual respondents knew or ought to have
known, by virtue of their positions of seniority, of the
improper conduct engaged in by Portus. Staff alleges that
Michael Mendelson was a directing mind of all of the entities in
the Portus group. Mendelson was officially designated as
President and/or CEO of PAM. Michael Labanowich was Portus'
registered Investment Counsel and Portfolio Manager and was
designated as Portus' Chief Compliance Officer until May of
2004, at which time John Ogg assumed the designation of Chief
Compliance Officer.

The charges filed against Boaz Manor (Information) and the
Notice of Hearing and Statement of Allegations can be accessed
at these URLs:

http://bankrupt.com/misc/Notice_of_Hearing.htm
http://bankrupt.com/misc/Statement_of_Allegations.htm

For Media Inquiries: Wendy Dey
                     Director, Communications and Public Affairs
                     416-593-8120

For Investor Inquiries: OSC Contact Centre
                        416-593-8314
                        1-877-785-1555 (Toll Free)


PXRE GROUP: Completes Common Stock Offering
-------------------------------------------
PXRE Group Ltd. (NYSE: PXT) announced Friday that it has
completed the public offering of 8,843,500 of its common shares
to Credit Suisse First Boston LLC, which acted as sole
underwriter in the offering, including 1,153,500 shares sold
upon exercise of the underwriter's over-allotment option in
full, at a public offering price of $13.25 per share.  Net
proceeds to the Company from the common stock offering, after
deducting estimated expenses, will be approximately $114.7
million.  PXRE intends to contribute the net proceeds to
PXRE Reinsurance Ltd., its Bermuda reinsurance subsidiary, to
support the underwriting of reinsurance business during upcoming
renewal periods.

All shares were offered by the Company and were sold under the
Company's Form S-3 shelf registration statement, which was
declared effective by the Securities and Exchange Commission on
September 22, 2005.

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

A prospectus supplement relating to the offering was filed with
the Securities and Exchange Commission on October 5, 2005.
Copies of the prospectus supplement and accompanying base
prospectus relating to the offering may be obtained by
contacting Credit Suisse First Boston LLC, Prospectus
Department, Eleven Madison Avenue, New York, NY 10010
(212-325-2580).

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 common shares trade on the New
York Stock Exchange under the symbol "PXT."


PXRE GROUP: Completes Perpetual Preferred Shares Offering
---------------------------------------------------------
PXRE Group Ltd. (NYSE: PXT) announced Friday that it has
completed the sale of 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 gross proceeds from the
private placement were $375 million, and proceeds net of agents'
fees and offering expenses were $359.3 million. 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 upcoming renewal
periods.

The series D perpetual preferred shares have a liquidation
preference of $1,000 and an $11.00 per common share exchange
price. 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. A Special General
Meeting of the Company's shareholders has been called for
November 18, 2005, to consider and approve these matters.

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.



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

GRAVETAL BOLIVIA: Moody's Assigns B3 Rating on Bonds
----------------------------------------------------
Moody's assigned a B3 rating on the global scale on Gravetal
Bolivia S.A. UFV 195 m and on its US$10m bonds; Aa3.bo in the
national scale. The rating action reflects the deterioration in
the company's margins and coverage in the context of leverage
that is considered high, as well as the expectation that the
company has adequate liquidity over the near to intermediate
term to meet its obligations as they fall due. The outlook is
stable.

Gravetal's ratings reflect its significant leverage, weak
profitability and deteriorating coverage measures as a result of
the lack of protection from tariffs due to higher commodity
prices and Gravetal's own expansion which caused higher working
capital needs. Debt to EBITDA has been over 8.0x, and fell only
slightly below this level as of the end of the 2005 fiscal year.
The ratio of free cash flow after working capital to debt showed
strongly negative values and is expected to remain negative.
EBIT to interest declined to 1.3 times at the end of the last
fiscal year.

Gravetal's ratings are also based on its position in the highly
volatile, commodity-related soybean processing business. It has
the competitive advantage of its unique location near the
Hidrovia Parana-Paraguay in a region where soybean is widely
available. The company also benefits from the tariff protection
mechanism that is in place in the Andean Community for Andean
member countries. The ratings also reflect the cost
inefficiencies arising from Gravetal's small scale of
operations, steadily declining margins, and increased need for
cash to fund permanent negative working capital changes. Higher
financial charges from higher debt and higher interest rates
have also eroded Gravetal's profitability.

In addition, the ratings reflect Gravetal's strong position in
the local economy and its solid and established commercial
relationships with clients and suppliers, and its relative
importance to the local economy. Gravetal is one of Bolivia's
stronger exporters in the country, especially relevant given the
country's weak generation of foreign currency. Gravetal exports
100% of its production, representing around 6% of the Bolivian
total exports and 12 % of the exports of Santa Cruz.

Moody's said Gravetal needs to consistently reduce its debt,
reaching a debt to EBITDA ratio consistently below 6..0x,
improve its margins such that EBIT to gross profit exceeds 70%,
and generate greater levels of cash in relation to debt in order
to improve its ratings.

On the other hand, if profitability continues to deteriorate
leading to an EBIT to gross profit ratio below 70% and if debt
to EBITDA rises above 8.0x, Moody's said the ratings could come
under downward pressure. Although elimination or a substantial
reduction in the tariff protection mechanism is not expected in
the short term, additional downward pressure could also arise if
it were to occur.

Gravetal Bolivia is located in Santa Cruz, Bolivia. It exports
100% of its production, soybean oil and soybean meal (pellets)
to the Andean Community markets, mostly to Venezuela and
Colombia.



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

BRASKEM: Proposals for Isoprene Revamp, Tanking Approved
--------------------------------------------------------
The Board of Directors of BRASKEM S.A approved in a meeting held
on October 4, 2005 the proposals for the Isoprene Revamp Project
as well as the Tanking Project.

MINUTES OF THE 507th MEETING OF THE BOARD OF DIRECTORS
HELD OCTOBER 4, 2005

On the 4th (fourth) calendar day of October, two thousand and
five, at 2:00 (two) p.m., in the Company's office located at
Avenida das Nacoes Unidas, No. 4777, ZIP Code 05477-000, Sao
Paulo-SP, the 507th (five hundred and seventh) Meeting of the
Board of Directors of BRASKEM S.A was held.

The Board members Alvaro Fernandes da Cunha Filho and Alvaro
Pereira Novis were absent, as well as their alternates, being
replaced by the Board members Newton Sergio de Souza and Jose de
Freitas Mascarenhas, respectively, pursuant to the letters of
representation previously sent, in accordance with the procedure
defined in the Company by-laws. The Chief Executive Officer Jose
Carlos Grubisich Filho, the Executive Officers Mauricio Ferro
and Paul Altit, the representant of the Fiscal Council, Mr.
Ismael Abreu, the Secretary of the Board of Directors, Mr.
Nelson Raso, and Mrs. Ana Patricia Soares Nogueira were also
present.

The Board member Pedro Augusto Ribeiro Novis directed the
meeting, and Mrs. Ana Patricia Soares Nogueira acted as
secretary.

AGENDA:

I) Subjects for deliberation: The Board of Directors unanimously
approved the following deliberations:

1) PROPOSALS FOR DELIBERATION (PD) - approved, after the due
analysis of its terms and connected documentation, the following
Proposals for Deliberation, previously delivered by the Board of
Executive Officers to the members of the Board of Directors for
acknowledgement, as provided in the Company's by-laws, copies of
which has been duly filed at the Company's headquarters:

a) PD.CA/BAK-23/2005 - Amendment to the Code of Conduct - for
the purpose of: (i) approve the amendment to the Code of Conduct
of the Company, pursuant to the proposal contained in the
Annexes I and II of the respective PD;

b) PD.CA/BAK-24/2005 - Isoprene Revamp Project - for the purpose
of implement Investment at the Basic Petrochemicals Unit in
Camacari, aiming the increase of the capacity of Isoprene
production, pursuant to the Executive Summary contained in the
Annex I of the respective PD;

c) PD.CA/BAK-25/2005 -Tanking Project - for the purpose of
implement Investment to the construction of two new raw material
stocking tanks, and implementation of new alignments between the
existing tanks and the industrial plants of Basic Petrochemicals
of Camacari, pursuant to the Executive Summary contained in the
Annex I of the respective PD;

d) PD.CA/BAK-26/2005 -Social Responsibility Policy - for the
purpose of approving the Social Resposibility Policy of the
Company, pursuant to the proposal of the Chief Executive Officer
to the Board of Directors contained in the Annex of the
respective PD;

e) PD.CA/BAK-27/2005 - 2005 Long Term Incentive Program - for
the purpose of approve the 2005 Long Term Incentive Program,
according to the general rules established by the Long Term
Incentive Plan of the Company, pursuant to the characteristics
and limits described on the respective PD;

f) PD.CA/BAK-28/2005 - Financing for Acquisition of Raw Material
- for the purpose of authorizing the Board of Executive Officers
to (i) contract financing program with banks, pursuant to the
Indicative Summary of Terms and Conditions contained in the
Annex I of the respective PD; and (ii) practice every necessary
acts for the execution of such program.

II) Subjects for Acknowledge: Presentations had been made by the
respective Executive Officers responsible for the subjects
contained in this item II, which are:

1) Results of the Company related to the month of August 2005;

2) Update on the Financial Transactions; and

3) Follow-up of the Investments approved by the Company Board of
Directors.

III) Subjects of Company Interest: The Board members have been
informed by the Chief Executive Officer about the items
contained in this item III of the agenda.

IV) CLOSING OF MINUTES - No further subject existing to be dealt
with, these minutes have been prepared, read, discussed and
approved, being signed by all attending Board members, by the
President and the Secretary of the meeting. Sao Paulo, October
4, 2005.

CONTACT: Braskem S.A.
         Jose Marcos Treiger
         Investor Relations Oficcer
         Phone: 5511 3443-9529 jm.treiger@braskem.com.br

         Luiz Henrique Valverde
         IR Manager
         Phone: 5511 3443-9744 luiz.valverde@braskem.com.br

         Luciana Paulo Ferreira
         IR Manager
         Phone: 5511 3443-9178 luciana.ferreira@braskem.com.br

         URL: www.braskem.com.br


CEMIG: Board Proposes Second Remuneration Period
------------------------------------------------
The Board of Directors of Companhia Energetica De Minas Gerais -
Cemig decided to propose during the 360th meeting held on
September 29, 2005 the Second Remuneration Period.

NOTICE TO HOLDERS OF THE FIRST ISSUE OF THE FIRST SERIES OF
CEMIG DEBENTURES

We hereby advise holders of the First Series of the First Issue
of debentures issued by CEMIG (Companhia Energetica de Minas
Gerais -"the Company") that, in accordance with item 4.2 of
Clause IV of the "Deed of the First Public Issue of
Nonconvertible Debentures, Divided into Two Series, Without
Guarantee nor Preference, of Companhia Energetica de Minas
Gerais
- CEMIG", the Board of Directors of the Company, in its 360th
meeting, held on September 29, 2005, decided to propose the
following terms for renegotiation of the Debentures of the First
Series of the First Issue (the Debentures):

1) The Second Remuneration Period, the period of time during
which the conditions of remuneration of the Debentures of the
First Series shall remain unchanged, shall begin on November 1,
2005 and end on November 1, 2009, the date of final maturity of
the Debentures of the First Series;

2) The Debentures of the First Series shall earn interest
corresponding to the accumulated variation of 100% of the
average daily rates for DIs - One-day Interbank Deposits,
"extra-grupo" (DI rates), calculated and published by CETIP (the
Custody and Settlement Chamber - Camara de Custodia e
Liquidacao), capitalized by a spread of 1.20% per year, on the
252-business-day basis, applicable to the balance of the nominal
value of the debenture for each Capitalization Period, that is
to say from Remuneration Interest Maturity Date immediately
prior to the date of its effective payment.

3) In the event of the DI rate being temporarily unavailable at
the time of payment of any pecuniary obligation resulting from
the setting of the Remuneration Interest, there shall be used,
to substitute it, the same daily rate produced by the last known
DI rate, up to the date of the calculation, and no financial
compensation shall be payable either by the company or by the
debenture holders, when the respective DI rate is subsequently
published.

4) In the absence of calculation and/or publication of the DI
rate for a period more than 15 (fifteen) consecutive business
days after the Issue Date or, in the event of its abolition, or
non-applicability by force of law, to replace the DI rate there
shall be used the average rate of daily financings backed by
federal securities calculated in the Special Settlement and
Custody System (the Selic Rate), or, in its absence, the
reference rate of the National Financial System which may from
time-to-time substitute the Selic Rate (Replacement Rate).

5) In the event of there not being any Replacement Rate, the
Fiduciary Agent shall, within a maximum period of 30 (thirty)
days from either (i) the 15th consecutive business day of
absence of calculation and/or publication of the DI rate, or
(ii) the abolition, or nonapplicability by force of law, of the
DI rate, carry out a General Meeting of Debenture Holders, to
decide, by agreement with the Issuer, subject to the applicable
regulations, the parameter to be used for the remuneration of
the Debentures, which shall be proposed by the Issuer. Until the
decision on this parameter, the same daily rate produced by the
last known DI rate shall be used for the calculation of the
value of any obligations under this Clause, up to the date of
the decision of the General Assembly of Debenture Holders.

6) If the Replacement Rate is published before the holding of
the General Assembly of Debenture Holders, the said Assembly
shall not be held, and the Replacement Rate, as from its
publication, shall thereafter be used for the calculation of the
Remuneration Interest on the Debentures.

7) If the General Assembly of Debenture Holders does not decide,
by common agreement between the Issuer and the Debenture
Holders, the parameter to be used for the remuneration of the
Debentures, the Issuer, in common agreement with the Debenture
Holders, shall choose one of the 5 (five) largest first-line
banks in Brazil to calculate the new parameter for the
Remuneration Interest. The bank that is chosen shall adopt a new
parameter for the purposes of calculation of the Remuneration
Interest in such a way as to preserve the original remuneration
of the Debentures, taking into account, including for this
purpose, the last 15 (fifteen) previous public debenture issue
transactions in the Brazilian market.

8) The remuneration of the debentures of the First Series in the
second period of incidence of remuneration shall be paid
annually, on November 1 of the years 2006, 2007, 2008 and 2009.
The Fiduciary Agent of the Debenture Holder is Planner Corretora
de Valores S.A.

Any Debenture Holders who do not agree with the conditions set
by the Board of Directors of the Company herein published may,
between the 15th and the 5th business day (inclusive) prior to
the date of the renegotiation, that is to say, from October 10
to 25, 2005, state, through the CETIP or the CBLC or, in the
event of the Debentures not being in custody at CETIP or CBLC,
through Banco Itau S.A., their option to exercise the right of
sale of the Debentures to the Company.

The Company undertakes to acquire the totality of the Debentures
from those Debenture Holders who do not accept the conditions
specified herein, for the nominal value, updated in monetary
terms, augmented by the remuneration calculated pro rata
temporis. The acquisition by the Company of the Debentures shall
take place on November 1, 2005, and the payment to the Debenture
Holders shall be made in accordance with the terms of the Issue
Deed. No premium shall be payable by reason of the acquisition
to which this present notice refers.

CONTACT: Companhia Energetica De Minas Gerais - CEMIG
         Investor Relations:
         Phone: 31 3299-3930
                31 3299-4015
         URL: www.cemig.com.br
         E-Mail: ri@cemig.com.br
         Fax: 31 3299-3934
              31 3299-3933


CESP: Rio Bravo, Citibank to Manage CTEEP Privatization
-------------------------------------------------------
Brazilian investment bank Rio Bravo and US-based Citibank have
won a contract to manage the privatization of Sao Paulo state
transmission power company CTEEP.

The state government is yet to announce the winner in the tender
for a contract to appraise the value of CTEEP shares.

The Sao Paulo government plans to privatize CTEEP on February 8,
2006, in a move that would bring the state some BRL1 billion.

The state government and its subsidiaries own 64.4% of CTEEP's
common stock and 16.2% of its preferred shares, equivalent to
26% of total capital.

Proceeds from the operation will be used to capitalize CTEEP's
sister company, Companhia Energetica de Sao Paulo (CESP), paving
the way for the restructuring of over BRL10 billion in debt.

Sao Paulo Water Resources and Energy Secretary Mauro Arce
recently revealed that the government is also planning to sell
control of CESP next year.

CONTACT:    Companhia Energetica De Sao Paulo
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


ELETROPAULO METROPOLITANA: S&P Assigns `B' Ratings
--------------------------------------------------
Rationale

The 'B' ratings assigned to Brazilian electric utility
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. reflect
the following weaknesses:

    - A still leveraged capital structure. Although funds from
      operations (FFO) to total debt has improved since 2004,
      total gross debt to total capital should remain above 50%
      during the next two to three years, even though falling
      from the 71.7% ratio in June 2005;

    - A significant volume of past due accounts receivable,
      mostly related to state government and municipalities. In
      June 2005, Eletropaulo reported Brazilian real (BrR) 1.1
      billion of renegotiations with delinquent consumers,
      although about BrR280 million is already provisioned as a
      loss;

    - Pressure to upstream dividends from 2007 on, together with
      AES Tiete S.A. and AES Uruguaiana to holding company
      Brasiliana Energia S.A. to support payment of US$510
      million debt at the holding company level. Brasiliana
      holds an 11-year debt that starts to amortize in December
      2007; and

    - A regulatory framework that is still evolving and being
      implemented, although the new model has already brought
      more stability to the sector.

The following strengths partially mitigate these weaknesses:

    - Improving operating performance since the second half of
2004, posting a fairly strong and resilient cash flow
generation. EBITDA margins are in the 18% to 20% area, and FFO
of BrR950 million is expected for fiscal year-end 2005.
Therefore, cash flow credit metrics are also improving,
presenting FFO to total gross debt (including pension fund
liabilities) of 21% in June 2005;

    - Lower exposure to currency mismatches because only 12% of
      total debt was denominated in foreign currency as of June
      2005, even though 100% is protected by hedging
      instruments;

    - Eletropaulo's financial flexibility and credit access show
      improvement after the US$200 million real-linked bonds
      were placed and the BrR800 million debentures recently
      placed since the company's financial flexibility was
      hampered due to the significant debt restructuring that
      began in 2003 and concluded in March 2004. Barring any
      unforeseen circumstances, both issuances should allow
      Eletropaulo to deal with its debt amortization schedule in
      the next 12 months;

    - A favorable customer mix, with 71% of revenues coming from
      residential and commercial consumers, which presents a
      more stable consumption pattern; and

    - A 30-year monopoly to distribute electricity in Brazil's
      most developed and densely populated region, and its
      adequate operating efficiency indicators measured by
      outage duration (9.14 hours per customer per year) and
      outage frequency (6.9 occurrences per year).

Eletropaulo's operating results continue to improve. For first-
half 2005, Eletropaulo registered EBITDA of BrR865 million, an
improvement of 51.7% over the same period in 2004, basically as
a result of 29% revenue increase fueled by the 18.6% average
tariff increase in July 2004 and market growth. Internal cash
generation (FFO) reached BrR575 million, up 37% from the BrR418
million achieved in first-half 2004. The strong improvement in
FFO is a direct result of increased EBITDA, plus the reduction
of interest burden resulting from the completed debt
restructuring in March 2004. This performance resulted in FFO to
interest coverage to pick up, hitting 8.4x in first-half 2005
(compared with 3.3x in first-half 2004).

However, although FFO to total debt also improved, hitting 21%
in first-half 2005 (from 15% in first-half 2004), Eletropaulo
continues to present a leveraged capital structure with ratios
of total debt to total capitalization of 71.7%, although total
debt to EBITDA is about 3.12x (considering BrR1.9 billion of
accounted pension fund liabilities and not considering the cash
income from Reajuste Tarif rio Extraordin rio (RTE) in the
EBITDA calculation).

In 1998, Eletropaulo was granted a 30-year concession to
distribute energy in the metropolitan region of Sao Paulo.
Eletropaulo supplies electricity to more than 15 million people
spread out in 5.1 million consumption units, with a consumption
of 32,668 gigawatt-hours in 2004. Together with AES Tiete and
AES Uruguaiana, Eletropaulo is part of the Brasiliana group
controlled by the nonoperating holding company, Brasiliana.
Brasiliana shareholders are BNDES (foreign currency BB-/Stable/-
-; local currency BB/Stable/--; 53.6% of total capital) and The
AES Corp. (B+/Positive/--; 46.4% of total capital). U.S.-based
AES manages the group.

Liquidity

Standard & Poor's considers Eletropaulo's liquidity and
financial flexibility as improving since the company came out
from a wide debt renegotiation last year and was able to place a
US$200 million international bond in June 2005, and more
recently, a BrR800 million debenture. Liquidity and financial
flexibility are the key rating factors for this company.
Eletropaulo reported total debt of BrR5.4 billion as of June
2005; including the BrR142 million of negative hedge result plus
a total of BrR1.9 billion of the pension fund liability
(Funda‡ao CESP). Out of the total debt as of June 2005, short-
term maturities are BrR1.6 billion (including pension fund
short-term portion of BrR164 million plus BrR142 million of a
negative hedge position) and represent about 29% of total debt.
Amortization requirements for 2005 (between July and December
2005) are about BrR700 million and should be resolved through
Eletropaulo's projected internal free cash generation of BrR600
million (including RTE receivables) at fiscal year-end 2005,
BrR428 million of cash position, and part of the proceeds
stemming from the debenture issue.

As of June 2005, the company reduced foreign currency exposure
to 12% of the total debt compared with 40% in 2003, and has
already swapped 100% of the total to local currency until their
maturities. Standard & Poor's expects that Eletropaulo will keep
the level of foreign currency exposure around 12% or even lower.

Forecasts for 2007 onward are more difficult to project because
from 2007 on Brasiliana will start to amortize its debt with
BNDES, which will require Eletropaulo to increase the amount of
dividends upstream (together with AES Tiete and AES Uruguaiana).
As a result, Standard & Poor's views dividends sent to
Brasiliana as a mandatory requirement for Eletropaulo, since
Brasiliana holds in its books an 11-year, US$510 million debt
with BNDES, which starts to mature in 2007 and whose sole
repayment source is cash from its subsidiaries Eletropaulo AES
Tiete, and AES Uruguaiana.

Outlook

The stable outlook on Eletropaulo's ratings reflects Standard &
Poor's expectation that the company will continue to present
adequate performance that results in fairly favorable credit
metrics for the rating category (minimum EBITDA margin of 18%,
minimum FFO to interest coverage of 3.0x, FFO to total debt in
the area of 15%), necessary to mitigate the still limited
financial flexibility. As Eletropaulo's operating performance
has been improving since 2004, its creditworthiness should
improve as the company shows better financial flexibility and
market perception, after completing the programmed issues for
this year, and continues to deliver sustainable cash flow
protection ratios. A rating upward trend is likely to
materialize if it reduces its annual volume of debt amortization
requirements and reduces leverage indicators. Conversely, the
ratings would come under downward pressure if the level of past
due accounts continues to increase, or the company faces soaring
deferred regulatory costs, which would affect free cash flow
and, ultimately, the total debt.

Primary Credit Analyst: Marcelo Costa, Sao Paulo
(55) 11-5501-8955; marcelo_costa@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo
(55) 11-5501-8945; milena_zaniboni@standardandpoors.com


ROYAL SHELL: Lawmaker Seeks Probe on Oil Production Operations
--------------------------------------------------------------
A congressman from the governing Workers Party is calling for an
investigation into the local oil production operations of Anglo-
Dutch oil company Royal Shell, reports Business News Americas.

During a seminar at the Federal University of Rio de Janeiro on
Thursday, Rep. Luciano Zica said Shell may export more oil from
its Brazilian offshore operation than it declares to Brazilian
authorities.

"Shell could be dodging taxes and royalties," Zica said. "I'm
not saying, they're doing it, but they could. We can't control
it. Their operations are at high seas."

While Shell declares to export some 70,000 barrels of oil a day
from the Bijupira and Salema oil fields in the Campos basin, the
Company may be exporting as much as 100,000 b/d, Zica said.

The congressman said his suspicion was based on observations by
oil workers at Brazil's state oil company Petrobras SA (PBR) of
movements of oil shipments at the field above those necessary
for the smaller, declared production.

Zica said he is preparing a request to Brazil's National
Petroleum Agency, or ANP, to verify which degree of control the
agency has over what volumes of oil are shipped from the field.

Meanwhile, newspaper Valor Economico quoted Petrobras E&P
director Guilherme Estrella as saying it is unlikely that Shell
is withholding information because electric measuring devices
monitor output automatically at the wells.



===========================
C A Y M A N   I S L A N D S
===========================

A.V.E. NORTH AMERICA: Shareholders Resolve to Wind Up Company
-------------------------------------------------------------
         A.V.E. NORTH AMERICA LIMITED
          (In Voluntary Liquidation)
       The Companies Law (2004 Revision)

The following written resolution was passed by the shareholders
of this company on 13th September 2005:

THAT the Company be wound-up voluntarily and that Christopher D.
Johnson and Russell Smith, both of Chris Johnson Associates Ltd,
P.O. Box 2499 GT, Strathvale House, George Town, Grand Cayman,
Cayman Islands, be and hereby are appointed as Joint Liquidators
for the purposes of winding-up the Company. Creditors of the
Company are to prove their debts or claims on or before 3rd
November 2005 and to establish any title they may have under the
Companies Law (2004 Revision), or to be excluded from the
benefit of any distribution made before the debts are proved or
from objecting to the distribution.

CONTACT:  CHRISTOPHER D. JOHNSON and RUSSELL SMITH
          Joint Voluntary Liquidators
          Michelle Cullen
          Telephone: (345) 946-0820
          Facsimile: (345) 946-0864
          P.O. Box 2499 GT, Grand Cayman
          Cayman Islands


FULLBACK CORPORATION: Le Roux, Goddard Appointed as Liquidators
---------------------------------------------------------------
                      FULLBACK CORPORATION
                   (In Voluntary Liquidation)
                The Companies Law (2004 revision)
                           Section 135

TAKE NOTICE that the following special resolution was passed by
the shareholder(s) of Fullback Corporation at an extraordinary
general meeting of the shareholder(s) held on September 19,
2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Johann Le Roux and Mora Goddard be appointed as liquidators
of the Company.

Creditors of Fullback Corporation are to prove their debts or
claims on or before November 3, 2005, and to send full
particulars of their debts or claims to the joint liquidators of
the said company. In default thereof, they will be excluded from
the benefit of any distribution made before the debts are proved
or from objecting to the distribution.

CONTACT: Mr. Johann Le Roux and Ms. Mora Goddard
         Joint Voluntary Liquidators
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands


JAPAN REVIVAL: Appoints Mark Wanless, Tun Win as Liquidators
------------------------------------------------------------
          JAPAN REVIVAL INVESTMENTS I CAYMAN LIMITED
                  (In Voluntary Liquidation)
               The Companies Law (2004 Revision)
                          Section 135

TAKE NOTICE that the following special resolution was passed by
the shareholder(s) of Japan Revival Investments I Cayman Limited
at an extraordinary general meeting of the shareholder(s) held
on
September 22, 2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Mark Wanless and Tun Win be appointed as liquidators of the
Company.

Creditors of Japan Revival Investments I Cayman Limited are to
prove their debts or claims on or before November 3, 2005, and
to send full particulars of their debts or claims to the joint
liquidators of the Company. In default thereof, they will be
excluded from the benefit of any distribution made before the
debts are proved.

CONTACT: Mr. Mark Wanless, Joint Voluntary Liquidators
         Maples Finance Jersey Limited, 2nd Floor
         Le Masurier House, La Rue Le Masurier
         St. Helier, Jersey JE2 4YE


INS CAYMAN: Mark Wanless, Tun Win Appointed as Liquidators
----------------------------------------------------------
                  INS CAYMAN COMPANY LIMITED
                  (In Voluntary Liquidation)
               The Companies Law (2004 Revision)
                         Section 135

TAKE NOTICE that the following special resolution was passed by
the shareholder(s) of INS Cayman Company Limited at an
extraordinary general meeting of the shareholder(s) held on
September 22, 2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Mark Wanless and Tun Win be appointed as liquidators of the
Company.

Creditors of INS Cayman Company Limited are to prove their debts
or claims on or before November 3, 2005, and to send full
particulars of their debts or claims to the joint liquidators of
the Company. In default thereof, they will be excluded from the
benefit of any distribution made before the debts are proved.

CONTACT: Mr. Mark Wanless, Joint Voluntary Liquidator
         Maples Finance Jersey Limited, 2nd Floor
         Le Masurier House, La Rue Le Masurier
         St. Helier, Jersey JE2 4YE


LIVES XXX: Submission of Debt Claims to End Nov. 3
--------------------------------------------------
                        LIVES XXX LIMITED
                   (In Voluntary Liquidation)
                The Companies Law (2004 revision)
                           Section 135

TAKE NOTICE that the following special resolution was passed by
the shareholder(s) of Lives XXX Limited at an extraordinary
general meeting of the shareholder(s) held on September 13,
2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Helen Allen and Jon Roney be appointed as liquidators of
the Company.

Creditors of Lives XXX Limited are to prove their debts or
claims on or before November 3, 2005, and to send full
particulars of their debts or claims to the joint liquidators of
the Company. In default thereof, they will be excluded from the
benefit of any distribution made before the debts are proved or
from objecting to the distribution.

CONTACT: Ms. Helen Allen and Jon Roney
         Joint Voluntary Liquidators
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands


LMCG MEDSCIENCE: Creditors to Send Debt Details Before Oct. 16
--------------------------------------------------------------
               LMCG MEDSCIENCE PARTNERS, LTD
                    (The "Company")
               (In Voluntary Liquidation)
               Companies Law (As Amended)

TAKE NOTICE THAT the following resolution was passed by the
Shareholders of the Company by written resolution dated 16th
September 2005:

"RESOLVED that the Company be voluntarily wound up and John
Cullinane and Derrie Boggess, c/o Walkers SPV Limited, P.O. Box
908, George Town, Grand Cayman, Cayman Islands, be appointed as
Joint Liquidators to act for the purposes of such winding up."

NOTICE IS HEREBY GIVEN that the creditors of the Company which
is being wound up voluntarily are required within 30 days of the
publication of this notice, to send in their names and addresses
and the particulars of their debts and claims and the names and
addresses of their attorneys-at-law (if any) to the undersigned.
In default thereof, they will be excluded from the benefit of
any distribution made before such debts are proved.

Dated this 16th September 2005

CONTACT:  JOHN CULLINANE and DERRIE BOGGESS
          Joint Voluntary Liquidators
          Telephone: (345) 914-6305
          c/o Walkers SPV Limited, Walker House
          P.O. Box 908, George Town, Grand Cayman


PREDRILL STRESSES: Shareholders Decide on Voluntary Wind-Up
-----------------------------------------------------------
        PREDRILL STRESSES INTERNATIONAL
          (In Voluntary Winding Up)
       The Companies Law (2004 Revision)
                 Section 135

The following written resolutions were passed by the
shareholders of the above-mentioned Company on 9th September
2005:

- AS A SPECIAL RESOLUTION THAT the Company be placed in
voluntary winding up.

THAT Robert Paul Whitehouse be appointed as liquidator of the
Company.

NOTICE IS HEREBY GIVEN that the creditors of the above-named
Company which is being wound up voluntarily are required on or
before 3rd November 2005 to send in their names and addresses
and the particulars of their debts or claims and the names and
addresses of their attorneys-at-law (if any), to the
undersigned, the liquidator of the said Company, and if so
required by notice in writing from the said liquidator to come
in and prove the said debts or claims at such time and place as
shall be specified in such notice or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.

CONTACT:  ROBERT PAUL WHITEHOUSE
          Voluntary Liquidator
          Maples and Calder, Attorneys-at-law
          P.O. Box 309 GT, Ugland House
          South Church Street, George Town
          Grand Cayman, Cayman Islands


ROXIO CI: Creditors to Send Debt Details Before Oct. 16
-------------------------------------------------------
                   ROXIO CI LTD.
                  (The "Company")
            (In Voluntary Liquidation)
             Companies Law (As Amended)

TAKE NOTICE THAT the following resolution was passed by the
Shareholders of the Company by written resolution dated 23rd
June 2005:

"RESOLVED that the Company be voluntarily wound up and John
Cullinane and Derrie Boggess, c/o Walkers SPV Limited, P.O. Box
908, George Town, Grand Cayman, Cayman Islands, be appointed as
Joint Liquidators to act for the purposes of such winding up."

NOTICE IS HEREBY GIVEN that the creditors of the Company which
is being wound up voluntarily are required within 30 days of the
publication of this notice, to send in their names and addresses
and the particulars of their debts and claims and the names and
addresses of their attorneys-at-law (if any) to the undersigned.
In default thereof, they will be excluded from the benefit of
any distribution made before such debts are proved.

Dated this 16th September 2005.

CONTACT:  JOHN CULLINANE and DERRIE BOGGESS
          Joint Voluntary Liquidators
          Telephone: (345) 914-6305
          c/o Walkers SPV Limited, Walker House
          P.O. Box 908, George Town, Grand Cayman



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

WEST CARIBBEAN: Must Present Plan Next Week to Avoid Liquidation
----------------------------------------------------------------
The Colombian Port and Transportation Superintendent Alvaro
Cardona, on October 5, gave West Caribbean 10 working days to
present a plan to improve its financial situation, according to
a LANS article.

If the carrier fails to present the said plan by the deadline,
the national government will take actions towards the
liquidation of the Company.

The Superintendent made the announcement during the 30th Meeting
of Freight Transportation companies, organized by the Colombian
Federation of Road Transportation (Colfecar).


* COLOMBIA: Ratings Reflect Improving Liquidity, Debt Position
--------------------------------------------------------------
Rationale

The ratings on the Republic of Colombia reflect:

    - An improving external liquidity and debt position.

The ratings are constrained by:

    - Continued fiscal limitation; and
    - Colombia's ongoing internal conflict.

Colombia's 2004-2005 gross financing gap (current account
deficit plus amortization of long-term external debt plus stock
of short-term external debt) has fallen to less than 80% of
reserves from about 100% in 2003. The ratio of net external
debt-both private and public-to current account receipts (CAR)
has improved because of an increase in international reserves
and due to a substantial increase in exports and remittances
that boosted CAR.

The government faces significant challenges because of its high
interest burden (nearly 16% of revenue), the need to increase
military expenditure, and greater-than-expected deterioration in
pension costs.

The Administration of President Alvaro Uribe has implemented a
plan to contain and defeat the guerrilla and paramilitary groups
that engage in drug trafficking, acts of terrorism, extortion,
and kidnapping. However, domestic confidence and investment
could falter as long as the guerrilla conflict continues.

Outlook

Improved economic prospects-coupled with stronger external
indicators-will underpin the ratings on Colombia over the next
two years. However, the government's underlying fiscal position
remains highly inflexible because of large, legally mandated
transfers to local governments and public pension systems in
addition to the interest on its debt. Therefore, further reform
in taxes, transfers, and pensions will be needed over the next
three years to maintain fiscal discipline. If fiscal prospects
decline, the ratings could improve. On the other hand,
significant fiscal slippage or a sharp deterioration in national
security could result in renewed downward pressure on the
government's creditworthiness.

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



===============
H O N D U R A S
===============

HONDUTEL: Earmarks Up to $7M For IP Technology Upgrade
------------------------------------------------------
State telecoms monopoly Hondutel will invest US$5 million - US$7
million to upgrade to IP technology next year, reports Business
News Americas.

According to Hondutel assistant manager David River, the
Company's board has already approved the budget, deeming it
necessary to boost revenue.

Calls using IP telephony cost a fraction of calls using
traditional telephony, Rivera said.

"If companies like Hondutel do not enter this business, they
will be severely affected in the short term."

If the schedule goes according to plan, Hondutel could sign a
contract by the end of the year and see the project operating by
mid-2006.



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

AIR JAMAICA: Profits Likely in 4 Years Says Outgoing Chairman
-------------------------------------------------------------
Air Jamaica, having undergone a nine-month period of
restructuring, should begin to return a profit to its
shareholders in four years, the Jamaica Observer reports, citing
the national carrier's outgoing chairman, Dr. Vincent Lawrence.

Addressing the press for the last time on Thursday in his
capacity as chairman of Air Jamaica, Lawrence said that many of
the goals set have been accomplished and that Air Jamaica today
is far healthier financially and operationally than the Air
Jamaica the board took control of back in December 2004.

"The issues facing the airline cannot be fixed overnight and it
still has a far way to go. Over the next two to three years it
must continue to improve its cost structure and optimize its
operational efficiencies."

"If the airline is to achieve sustained financial viability, the
best model to follow is that of a niche carrier and as a base
capitalizing on the strength of the Jamaican market both here
and abroad and the tourist market of the Eastern section of
North America."

Lawrence refuted reports that the airline had lost US$100
million for the first nine months of the year and is expected to
record a loss by year's end in excess of US$150 million.

Rather, he said, Air Jamaica made a loss of US$79 million and is
expected to lose no more than US$100 million for the year. He
declared that costs are now more in line with revenues.

"Ideally, if this were not a state-run airline then perhaps it
would have to declare Chapter 11. But the conversion of debt
into equity has given us much-needed breathing space. Aer Lingus
sent down three top executives of which one is now the new
chairman of British Airways. They expressed doubts that we would
be able to raise the required finance but we raised US$325
million at competitive interest rates and now the airline has
now been placed on a sound footing to return to profitability."

Meanwhile, the Jamaica Labor Party is calling on the Government
to provide data to support its forecast for Air Jamaica to
return to profitability by 2009.

Opposition Spokesman on Transport Pearnel Charles says it's
difficult to forecast whether the target can be achieved based
on the uncertain state of the airline industry.

He's calling on the Government to outline the contents of Air
Jamaica's business plan.

CONTACT: AIR JAMAICA
         Corporate Communications
         Tel: 876-922-3460 ext 4060-5
         URL: www.airjamaica.com



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

AEROMEXICO/MEXICANA: To Get Stake in Privatized Airlines
--------------------------------------------------------
Mexico's pilots' union has canceled plans to participate in the
privatization of Aeromexico and Mexicana after securing an
agreement that they will receive shares in the privatized
airlines.

According to Dow Jones Newswires, the union, which has more than
2,000 members, has contracts with Aeromexico, Mexicana and the
smaller carriers controlled by holding company Cintra SA
(CINTRA.MX).

In a press release, the union said the agreement links the stake
to productivity commitments by pilots. It gave no details of the
accord, although a Cintra official had said in August that the
pilots' stake would be no more than 10%.

The government hopes to sell 51% of the airlines by the end of
this year.


AOL LATIN AMERICA: Enters Termination Agreement with Stockholder
----------------------------------------------------------------
AOLA and America Online, one of AOLA's principal stockholders,
entered on October 4, 2005 into a Termination Agreement (the
"Termination Agreement") which terminated the Localization
Services, Licensing and Content Programming Agreement dated as
of September 2, 2004 by and between AOLA and America Online, as
amended, (the "Agreement"). Under the Agreement, AOLA had
provided America Online with programmers for its Latino content
area in the United States in exchange for an annual payment of
$400,000. Neither AOLA nor America Online was required to make
any payment to the other in connection with the Termination
Agreement. The Termination Agreement is effective as of
September 30, 2005 and is subject to approval of the United
States Bankruptcy Court for the District of Delaware.

On October 3, 2005, America Online Latin America, Inc. ("AOLA"),
America Online, Inc. ("America Online"), Time Warner Inc., Aspen
Investments LLC and Atlantis Investments LLC entered into an
amendment (the "Amendment") to the Plan Support Agreement dated
as of June 23, 2005 (the "Support Agreement"). The purpose of
the Amendment is to modify certain dates contained in the
Support Agreement. Specifically, the Amendment amended the
Support Agreement in the following respects: (i) "November 30,
2005" shall be substituted for "September 30, 2005" in paragraph
7(i) of the Support Agreement; and (ii) "March 31, 2006" shall
be substituted for "January 31, 2006" in paragraph 7(ii) of the
Support Agreement.

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


LUZ Y FUERZA: No Merger with CFE Says Energy Secretary
------------------------------------------------------
State-owned electricity companies Luz y Fuerza del Centro's
(LFC) and CFE will not be merged, Business News Americas
reports, citing Energy Secretary Fernando Canales.

Secretary Canales' comments contradict CFE General Director
Alfredo Elias Ayub's disclosure to congress in late September
that the federal government was studying a possible merger
between the companies to solve LFC's generation needs as demand
and black losses have risen sharply in its concession area in
recent years.

However, Elias Ayub made those comments just a few days before
Fernando Elizondo resigned as secretary of energy to run for
senate in 2006 and Canales, then Fox's economy minister,
replaced him.

Secretary Canales said there are no plans for such a merger in
the final year of President Vicente Fox's administration, which
ends on December 1, 2006.



===============
P A R A G U A Y
===============

ACEPAR: Authorities to Intervene in Dispute with Scrap Producers
----------------------------------------------------------------
The worsening conflict between local steelmaker Aceros del
Paraguay (Acepar) and scrap utilizers, who live off Acepar's
waste metal, has prompted authorities to intervene.

Business News Americas reports that Isidro Rousillon, governor
of Paraguay's Presidente Hayes department, and other authorities
will mediate to set the border between land regarded as public
and Acepar property.

Scrap producers have been insisting that they have an agreement
with Acepar to take scrap and waste to produce iron and sell it.
Last week, however, company President Sergio Taselli banned them
from entering the plant, saying they are taking pig iron and
iron and not scrap.

As a result, a group of scrap producers blocked the entrance to
Acepar and started disturbances.

Acepar produces rods for metallic structures, construction, art
ironworks plus wire rod and billets for rolling.


* PARAGUAY: Ratings Reflect Improving Political Environment
-----------------------------------------------------------
Rationale

The ratings on the Republic of Paraguay reflect:

    - Improving political and economic environments;

    - Relatively low indebtedness, both domestically and
      externally; and

    - A strong export-based agricultural sector.

The ratings are constrained by:

    - A long track record of political instability, which
      resulted in underdeveloped democratic and political
      institutions;

    - Limited fiscal flexibility despite relatively balanced
      budgets, which led to a recent default; and

    - A dual economy, characterized by significant levels of
      informality, low GDP per capita, and high poverty rates.

Paraguay's credit rating reflects primarily underdeveloped
democratic and political institutions. A long history of
political instability continues to constrain the government's
creditworthiness and the country's ability to increase economic
growth rates. Very limited fiscal flexibility, despite current
balanced budgets, and insufficient access to credit led the
government to default on US$138 million in domestically issued
bonds when it failed to honor their put clause in February 2003.
The government cured this default by restructuring that debt by
July 2004.

Paraguay's economy is characterized by relatively low GDP per
capita, estimated at US$1,150 for 2005, and a highly fragmented
economic structure. Paraguay's economy is divided into a highly
dynamic and efficient soybean sector and the rest of the
economy, which is characterized by high informality and low
productivity. However, after several years of political
instability, the Administration's strategy of pursuing alliances
to reform Paraguay's public sector gained momentum and several
initiatives were passed by Congress; this progress is supported
by a stand-by agreement signed with the International Monetary
Fund.

Relatively low debt compared with that of the 'B' median also
supports Paraguay's creditworthiness. Net general government
debt, estimated at US$1.6 billion for 2005 (or 23% of GDP), is
less than one-third that of the 'B' median.

Outlook

The stable outlook reflects Standard & Poor's Ratings Services'
expectation that the government of President Nicanor Duarte
Frutos will maintain recently achieved macroeconomic stability.
However, political pressure will continue to limit the
government's ability to move ahead on the reform agenda.
Reinforced political support for the economic team's reform
agenda and more rapid implementation of reform aimed at
modernizing the public sector and enhancing transparency might
lead to improvement in the country's credit rating. In contrast,
renewed political pressure that erodes the support of the
economic team, or fiscal slippage that could jeopardize
compliance with government financial obligations, could lead to
a downgrade.

Primary Credit Analyst: Sebastian Briozzo, New York
(1) 212-438-7342; sebastian_briozzo@standardandpoors.com



=================================
T R I N I D A D   &   T O B A G O
=================================

CARIB BREWERY: 147 Workers Face Layoffs
---------------------------------------
Carib Brewery will lay off 147 of its workers, The Trinidad
Express reports.

The Company's management has notified the National Union of
Government and Federated Workers (NUGFW) about the planned
layoffs, which industry sources said could come as early as
Monday.

Some workers with extensive years of service will be on the
breadline when separation letters are handed out, the sources
said.

Carib's parent company Ansa McAl Group Chairman A. Norman Sabga
said that talks were ongoing between Carib's management, its
workers and NUGFW. Sabga had hinted about the layoffs in March,
saying that it was due in large part to a $160 million upgrade
at the beverage plant.

"I said to him, understand that Trinidad joining the FTAA means
that you have to become world competitive and for a small plant
and a small economy to do that, every single investment we make
takes people out of the manufacturing process. That's a fact of
life," Mr. Sabga recounted, referring to a conversation he had
with a Government Minister.

This latest move by Carib comes when NUGFW president Robert
Giuseppi is out of the country.

NUGFW representative Carl St. Rose, also an employee at the
brewery, said the union was trying to initiate talks with
Carib's management since the union executive believes that even
with the plant upgrade, it will not accomodate the layoff of 147
staffers.

Ansa Mc Al Group executive Allan Herrera gave no comment.



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

PDVSA: Reveals $2.1B Investment for Refining in LatAm Region
------------------------------------------------------------
State oil company Petroleos de Venezuela (Pdvsa) has earmarked
US$2.1 billion for refining in Latin America, Eluniversal.com
reports, citing Refining VP Alejandro Granados.

PDVSA will spend about 69% of the budget, or US$1.5 billion, in
building a refinery in Brazil along with Brazilian oil company
Petrobras. This project comes along with drilling of heavy and
extra-heavy oil from Orinoco belt, southern Venezuela,
containing about 235,000 million barrels of unproven reserves.
Pernambuco refinery will process 100,000 b/d from the belt
combined with Brazilian oil. An additional amount of 100,000 b/d
will go to the Brazilian market.

PDVSA's second major investment, about 25% out of the total
amount, or US$544 million, includes La Teja refinery in
Montevideo. There, refining capacity will be two-fold for a
total of 100,000 b/d.

Approximately 4% of the total investment, or US$87 million, will
go to a refinery property of Jamaican Petrojam, with a
processing capacity of 36,000 b/d.

The remaining 2% will be used in Cienfuegos, a Cuban refinery
made by Soviets.

The Venezuelan share in refining accounts for 13% out of the
investment scheduled by Pdvsa by 2012, as part of a strategic
plan submitted last August.


SIDOR: To Open Final Round of Share Sale
----------------------------------------
Steelmaker Sidor is about to open the final sales round of
nearly 2.85 million shares to be granted to employees eligible
to buy the stock, reports Business News Americas.

A commission consisting of workers and directors of Sidor has
already started working on the issue and a timetable is set for
this week.

The issue is part of Sidor's workers participation program
aiming to sell off 10.4% of Sidor to give workers a 20% total
stake in the Company.

In June, Sidor offered 3.5 million shares under the program, but
some 125,000 were not acquired.

"Now these 125,000 shares will be included in the second round,"
Sutiss workers union general secretary Jose Rodriguez said.

Shares will be offered under equal conditions for all eligible
workers. The union's representatives met with basic industry and
mining (Mibam) minister Victor Alvarez and both agreed to
include in the deal 1,500 new Sidor workers who started working
at the Company after privatization and were not eligible for
shares.

"With the sale of these 3 million shares, the workers' 20% stake
in the company would be completed," he said. "Later on the
nearly 14,000 workers owning shares will name four
representatives in the Company's board of directors."





                            ***********


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 * * *