TCRLA_Public/051024.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, October 24, 2005, Vol. 6, Issue 210

                            Headlines


A R G E N T I N A

AMELAC S.A.: Initiates Bankruptcy Proceedings
AOL LATIN AMERICA: Seeks Court OK to Sell Unit to Datco
B.A. CLEAN: Reorganization Finalized
DENCER S.R.L.: Court Orders Liquidation
EDEMSA: S&P's Default Rating on $150M Bonds Remains Unchanged

EQUIPOS INDUSTRIALES: Reorganization Converted to Bankruptcy
FRANCOS CONSTRUCCIONES: Trustee to Oversee Liquidation
FULL COLOR: Court Favors Involuntary Bankruptcy Motion
HIDROELECTRICA PIEDRA: Fitch Reaffirms `B(arg)' Rating on Bonds
MASTELLONE HERMANOS: S&P Reaffirms 'raD' Rating on $7M Bonds

MULTICANAL S.A.: Court Grants Recognition to APE in US
SIDERAR: Usiminas Transfers Stake to Unit
USO OFICIAL: Judge Approves Bankruptcy


B E R M U D A

ANNUITY & LIFE: Extends Mawdsley, Lockwood Employment Contracts
REFCO INC: Updated Case Summary & 50 Largest Unsecured Creditors
REFCO INC: S&P Ratings Tumble to D After Bankruptcy Filing
REFCO INC: Seeks to Appoint Joint Liquidators for Units
SEA CONTAINERS: Suspends Cash Dividends on Common Shares


B R A Z I L

SABESP: Announces Dividend Dividend Payment Terms
UNIBANCO: Board Approves Quarterly Interest Payment


C A Y M A N   I S L A N D S

DOWNTON LIMITED: Shareholder Voluntarily Winds Up Firm
DRESDNER RCM: Liquidation Meeting Set for December 15
DS INTERNATIONAL: Liquidation Accounting Set For Nov. 18
EDS STRATEGIC: Taps Johann Le Roux, Jon Roney as Liquidators
FLAVIUS CDO: Proofs of Claims Due Before Nov. 17

FSL FUNDING: Winding Up Details Due in Nov. 17 Meeting
GENOA SILVER: Gives Creditors Until Nov. 17 to Prove Debt Claims
HK SYNTHETIC: Voluntary Liquidation Initiated
INCOME PARTNERS: Final General Meeting Set for Nov. 17
INFINITY OFFSHORE: Appoints Liquidators for Wind Up

KELLOGG ISL: Shareholders to Hear Liquidation Report Nov. 5
KOREA ASSET: Winding Up Proceedings Started
KYLAR LIMITED: Executive Holdings Limited Selected as Liquidator
MAINSAIL INVESTMENT: Enters Voluntary Liquidation


C O L O M B I A

BANCAFE: Denies Refco Creditor Status
COOPDESARROLLO: Regulator Review Expected Within a Month
GRANAHORRAR: Second Stage of Privatization to Conclude Oct. 31


J A M A I C A

AIR JAMAICA: Adds New Board Members


M E X I C O

ASARCO: Final Cash Collateral Hearing Set for Fri., Oct. 28
HAYES LEMMERZ: Agrees to Sell Businesses
SATMEX: US Court Grants Restructuring Proposal Deadline


V E N E Z U E L A

EDC: El Sitio Project Hinges on Government's Tarrif Decision
PETROZUATA FINANCE: Ratings Remain on CreditWatch, Negative


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

AMELAC S.A.: Initiates Bankruptcy Proceedings
---------------------------------------------
Buenos Aires' civil and commercial court declared Amelac S.A.
"Quiebra," reports Infobae. Estudio Emilio Giacumbo & Rafael
Hernandez, who has been appointed as trustee, will verify
creditors' claims until Nov. 21, 2005 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on Feb.
2, 2006, followed by the general report on March 16, 2006.

CONTACT: Amelac S.A.
         Luis Saenz Pena 1736
         Buenos Aires

         Estudio Emilio Giacumbo & Rafael Hernandez, Trustee
         Avda. Corrientes 1250
         Buenos Aires


AOL LATIN AMERICA: Seeks Court OK to Sell Unit to Datco
-------------------------------------------------------
America Online Latin America Inc. (AOLAQ) has proposed selling
its AOL Argentina unit to Buenos Aires-based Datco SA for
US$377,000 in cash, reports Dow Jones Newswires. Judge Mary F.
Walrath, of the U.S. Bankruptcy Court in Wilmington, Del., has
scheduled a hearing on the proposed sale for Nov. 7. Objections
are due Oct. 31.

Under the deal valued at more than US$1 million, a Datco
affiliate will assume all of AOL Argentina's liabilities
including the US$324,000 the unit owed to AOL Spain, as well as
the US$67,000 it owed to AOL Latin America.

AOL Latin America said it would save at least $700,000 by
selling the unit now rather than liquidating its assets in a
court-supervised wind down.

Under the proposed sale, AOL Latin America will net US$302,000
in cash because the Company is required to pay US$75,000 to
America Online under a services agreement.

AOL Latin America filed for Chapter 11 protection June 24,
listing assets of $28.5 million and debts of $181.8 million.


B.A. CLEAN: Reorganization Finalized
------------------------------------
The reorganization of Buenos Aires-based B.A. Clean S.A. has
ended. Data revealed by Infobae on its Web site indicated that
the process was concluded after the city's civil and commercial
court homologated the debt agreement signed between the Company
and its creditors.

CONTACT: B.A. Clean S.A.
         Irigoyen 820
         Buenos Aires


DENCER S.R.L.: Court Orders Liquidation
---------------------------------------
Dencer S.R.L. prepares to wind-up its operations following the
bankruptcy pronouncement issued by a Buenos Aires court. The
declaration effectively prohibits the company from administering
its assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Mr. Mr. Ricardo
Bataller as trustee. Mr. Bataller will be reviewing creditors'
proofs of claim until Nov. 23, 2005. The verified claims will
serve as basis for the individual reports to be presented for
court approval on Feb. 6, 2006. The trustee will also submit a
general report of the case on March 20, 2006.

CONTACT: Dencer S.R.L.
         Avda. Cordoba 2088
         Buenos Aires

         Mr. Ricardo Bataller, Trustee
         Junin 684
         Buenos Aires


EDEMSA: S&P's Default Rating on $150M Bonds Remains Unchanged
-------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
reaffirmed its `raD' rating on US$150 million bonds issued by
Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA),
the National Securities Commission (CNV) revealed on its Web
site.

The issue, which matured on April 13 this year, is described as
"Programa de emision de Obligaciones Negociables simples."
EDEMSA's financial standing as June 30, 2005 prompted the rating
action, says CNV.

S&P said financial obligations, which carry an 'raD' rating, are
currently in default. The ratings agency said that the same
rating may be issued if interest or principal payments are not
made on the due even if the applicable grace period has not
expired.

Edemsa is the power distributor serving the province of Mendoza.
It has some 310,000 clients over its 110,000 sq. km. concession
area.

CONTACT: Empresa Distribuidora de Electricidad de Mendoza S.A.
         San Martin 322 (5500)
         Mendoza


EQUIPOS INDUSTRIALES: Reorganization Converted to Bankruptcy
-------------------------------------------------------------
The reorganization of Equipos Industriales y de Control
Automatico S.A. has progressed into bankruptcy. Argentine news
source Infobae relates that La Plata's civil and commercial
court ruled that the Company is "Quiebra Decretada".

The report adds that the court assigned Ms. Ema Luisa Boelter as
trustee, who will verify creditors' proofs of claim until Nov.
22, 2005.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Feb. 7, 2006. A general report on the bankruptcy process is
expected on March 22, 2006.

CONTACT: Equipos Industriales y de Control Automatico S.A.
         Montevideo (Calle 167) Nro. 123
         Berisso

         Ms. Ema Luisa Boelter, Trustee
         Calle 48 Nro. 632
         La Plata


FRANCOS CONSTRUCCIONES: Trustee to Oversee Liquidation
------------------------------------------------------
Buenos Aires accountant Nestor Szwarcberg was assigned trustee
for the liquidation of local company Francos Construcciones
S.R.L., relates Infobae.

Mr. Szwarcberg will verify creditors' claims until Nov. 29,
2005, the source adds. After that, he will prepare the
individual reports, which are to be submitted in court. He will
also prepare the general repot on the Company's liquidation. The
dates for the submission of the reports are yet to be disclosed.

CONTACT: Mr. Nestor Szwarcberg, Trustee
         Hipolito Irigoyen 1349
         Buenos Aires


FULL COLOR: Court Favors Involuntary Bankruptcy Motion
------------------------------------------------------
Court No. 4 of Buenos Aires' civil and commercial tribunal
declared Full Color S.A. bankrupt, says La Nacion. The ruling
comes in approval of the petition filed by the Company's
creditor, Obra Social de los Empleados de Comercio y Actividades
Civiles, for nonpayment of $5,537 in debt.

Trustee Maria Posoli will examine and authenticate creditors'
claims until Dec. 28, 2005. 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. 7 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

CONTACT: Full Color S.A.
         Peron 3547/51
         Buenos Aires

         Ms. Maria Posoli, Trustee
         Parana 785
         Buenos Aires


HIDROELECTRICA PIEDRA: Fitch Reaffirms `B(arg)' Rating on Bonds
---------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintained its
B(arg) rating on various bonds issued by Hidroelectrica Piedra
del Aguila S.A. (HPDA), securities regulator, the CNV, reports
on its Web site.

The rating action, which is based on the Company's financial
status as of June 30, 2005, affected these issues:

- ARS64,500,000 worth of undated bonds described as
"Obligaciones Negociables Serie A;"

- ARS35,600,000 worth of undated bonds described as
"Obligaciones Negociables Serie B;"

- ARS39,300,000 worth of undated bonds described as
"Obligaciones Negociables Serie C;" and

- ARS22,800,000 worth of undated bonds described as
"Obligaciones Negociables Serie D."

Fitch explains that a `B(arg)' rating indicates significant
credit risk although a limited margin of safety remains.
Financial commitments at this point are still being met.
However, capacity for continued payment depends on a sustained,
favorable business and economic environment.

HPDA is the largest private hydroelectric generator in
Argentina. The Company holds a concession until Dec. 29, 2023
from the Argentine government to operate its hydroelectric
facility and for the generation and sale of electricity. HPDA is
located approximately 1,200 km southwest of Buenos Aires on the
Limay River.


MASTELLONE HERMANOS: S&P Reaffirms 'raD' Rating on $7M Bonds
------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained its 'raD' rating on US$7.091 Million worth of
corporate bonds issued by Mastellone Hermanos S.A., says the
CNV. The undated bond issue carries the description
"Obligaciones Negociables monto original U$S225 millones."

S&P assigns 'raD' to financial obligations that are currently in
default. The ratings agency said that the same rating may be
issued if interest or principal payments are not
made on the due even if the applicable grace period has not
expired.

The ratings given were based on the Company's finances as of
June 30, 2005.

CONTACT:  MASTELLONE HERMANOS S.A.
          Av. Leandro N. Alem 720
          (1001) - Buenos Aires
          Argentina
          Phone: 54 1 318-5000
          Fax: 54 1 313-6822


MULTICANAL S.A.: Court Grants Recognition to APE in US
------------------------------------------------------
On September 28, 2005, the United States District Court for the
Southern District of New York (the "U.S. District Court")
rendered a decision in the appeal arising out of the proceeding
initiated by the board of directors of Multicanal S.A. to obtain
recognition in the United States, pursuant to Section 304 of the
U.S. Bankruptcy Code, of Multicanal's acuerdo preventivo
extrajudicial, or APE, as confirmed on April 14, 2004.

The U.S. District Court's decision affirmed prior rulings of the
United States Bankruptcy Court for the Southern District of New
York (the "Bankruptcy Court") granting recognition to
Multicanal's APE in the United States to the extent such APE has
been confirmed in Argentina and dismissing the involuntary
Chapter 11I petition brought by Huff against Multicanal. The
U.S. District Court, however, remanded the case to the
Bankruptcy Court for further proceedings as to the legality of
the measures proposed by the Company to implement the cures
required by the commercial court of Argentina in its decision
confirming the APE and by the Bankruptcy Court under Section 5
of the U.S. Securities Act of 1933 and the sufficiency of such
measures under Section 304 of the Bankruptcy Code.

To see a copy of the U.S. District Court's decision of September
28, 2005, click: http://bankrupt.com/misc/Multicanal.pdf

CONTACT:  MULTICANAL S.A.
          Avalos 2057
          (1431) Buenos Aires, Argentina


SIDERAR: Usiminas Transfers Stake to Unit
-----------------------------------------
Brazilian steelmaker Usiminas has transferred its entire stock
participation in Argentine steelmaker Siderar to its subsidiary
Usiminas Europa, reports Business News Americas. In a letter to
the Buenos Aires securities regulator, Siderar stated that
Usiminas' decision to transfer 18,489,620 shares, which
represent 5.2% of Siderar, will not alter Usiminas' ownership of
Siderar.

Usiminas deemed the transfer as a "natural operation" designed
to make managing its stake in Siderar easier.


USO OFICIAL: Judge Approves Bankruptcy
--------------------------------------
Uso Oficial S.A. was declared bankrupt after Court No. 11 of
Buenos Aires' civil and commercial tribunal endorsed the
petition of ABN Amro for the Company's liquidation. Argentine
daily La Nacion reports that ABN Amro has claims totaling
$13,058.73 against Uso Oficial S.A.

The court assigned Ms. Silvia Muavero to supervise the
liquidation process as trustee. Ms. Muavero will validate
creditors' proofs of claim until Dec. 14, 2005.

The city's Clerk No. 21 assists the court in resolving this
case.

CONTACT: Uso Oficial S.A.
         Av. Martin Garcia 612
         Buenos Aires

         Ms. Silvia Muavero, Trustee
         Rivadavia 1615
         Buenos Aires



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

ANNUITY & LIFE: Extends Mawdsley, Lockwood Employment Contracts
---------------------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (the "Company") entered on
October 19, 2005 into letter agreements with William H.
Mawdsley, III and John W. Lockwood setting forth the terms of
their continued employment by the Company. The Company had
previously given Messrs. Mawdsley and Lockwood notice that their
current employment agreements would not be renewed upon their
expiration.

Pursuant to the letter agreement with Mr. Mawdsley, he is
entitled to an annual salary of $250,000 and an additional
$10,000 per month as a housing and travel allowance. Effective
with the execution of the letter agreement, Mr. Mawdsley was
named the Company's President and Chief Executive Officer,
subject to the approval of the Bermuda Department of
Immigration, and he was appointed to fill a vacancy on the
Company's board of directors created by the recent resignation
of John F. Burke, the Company's former President and Chief
Executive Officer. Mr. Mawdsley had previously been a Vice
President of the Company and the Chief Actuary of its Bermuda
based operating subsidiary.

Pursuant to the letter agreement with Mr. Lockwood, he is
entitled to an annual salary of $200,000 and an additional
$7,500 per month as a housing and travel allowance. Mr. Lockwood
will continue to serve as the Company's Chief Financial Officer
and President of the Company's United States based subsidiaries.

The Company has also agreed to continue to provide Messrs.
Mawdsley and Lockwood with the same benefits they are currently
receiving from the Company, and they will be eligible for bonus
compensation at the discretion of the Company's board of
directors.

The Company may terminate Mr. Mawdsley and Mr. Lockwood at any
time for any reason, but if such termination is without "cause"
(as defined in the letter agreements), Mr. Mawdsley would be
entitled to receive a severance payment of $620,000 plus
reasonable relocation expenses from Bermuda to the United
States, and Mr. Lockwood would be entitled to receive a
severance payment of $490,000. Both men would also receive the
foregoing severance payments if they resign because of a
reduction in their base salary or housing allowance to which
they did not agree or if they resign for any other reason within
the period commencing 90 days and ending 180 days following the
effective time of (i) the acquisition of all of the outstanding
equity securities of the Company or (ii) the merger of the
Company with another entity, other than one of its direct or
indirect wholly owned subsidiaries.

The letter agreement with Mr. Mawdsley is filed as Exhibit 10.1
to this Form 8-K and is incorporated into this Item 1.01 by
reference. The letter agreement with Mr. Lockwood is filed as
Exhibit 10.2 to this Form 8-K and is incorporated into this Item
1.01 by reference.
Item 1.02. Termination of a Material Definitive Agreement.

On the same date, in connection with their execution of the
letter agreements discussed in Item 1.01 above, Messrs. Mawdsley
and Lockwood agreed to terminate their prior employment
agreements with the Company effective as of October 19, 2005.
The Company had previously given Messrs. Mawdsley and Lockwood
notice of the Company's intent not to renew their employment
agreements at the expiration of their current term.

Mr. Mawdsley's annual salary under his old employment agreement
was $200,000 and he was entitled to receive an additional
$10,000 per month as a housing and travel allowance. Mr.
Lockwood's annual salary under his old employment agreement was
$200,000.

Under the terms of their old employment agreements, if the
employment of Mr. Mawdsley or Mr. Lockwood was terminated by the
Company without serious cause or by the employee with good
reason, the Company would have had to continue to pay such
employee his base salary for a period of one year from such
termination. Additionally, Mr. Mawdsley would have been entitled
to travel and housing allowances for three months after the date
of termination and reasonable relocation expenses from Bermuda
to the United States.

Also under the terms of their old employment agreements, if the
employment of Messrs. Mawdsley or Lockwood with the Company was
terminated without serious cause or if they terminated their
employment for certain specified reasons within, with respect to
Mr. Mawdsley, one year following a change in control, or with
respect to Mr. Lockwood, six months following a change in
control, they would have been entitled to receive a payment
equal to two times their annual salary. In addition, Mr.
Mawdsley would have been entitled to receive twelve months of
his travel and housing allowance and reasonable relocation
expenses from Bermuda to the United States. Mr. Mawdsley would
also have been entitled to receive an amount equal to any income
taxes payable by him by reason of the payments made to him
occurring in connection with a change in control

Mr. Mawdsley's Employment Agreement was previously filed with
the Commission as Exhibit 10.1 to the Company's Form 10-Q filed
on May 15, 2002, and is incorporated herein by reference. Mr.
Lockwood's Employment Agreement was previously filed with the
Commission as Exhibit 10.1 to the Company's Form 10-Q filed on
May 17, 2004, and is incorporated herein by reference.
Item 5.02. Departure of Directors or Principal Officers;
Election of Directors; Appointment of Principal Officers.

In connection with Mr. Mawdsley's letter agreement discussed in
Item 1.01 above, effective on October 19, 2005, Mr. Mawdsley was
appointed as the Company's new Chief Executive Officer, subject
to the approval of the Bermuda Department of Immigration, and
was also appointed to fill a vacancy on the Company's board of
directors created by the recent resignation of John F. Burke,
the Company's former President and Chief Executive Officer.
Please see Item 1.01 above for a description of the terms of Mr.
Mawdsley's letter agreement.

Mr. Mawdsley is 54 years old and prior to becoming the Chief
Executive Officer of the Company on October 19, 2005, had been a
Vice President of the Company and the Chief Actuary of its
Bermuda based operating subsidiary since January 2002. Mr.
Mawdsley has over 30 years of experience in the life insurance
and annuity industries, and held multiple positions with
Allmerica Financial from 1973 through October 2001. Mr.
Mawdsley's responsibilities at Allmerica included all actuarial
aspects of individual insurance, and he focused on new
individual product development and pricing. Mr. Mawdsley has
been a Fellow of the Society of Actuaries since 1976, a Member
of the American Academy of Actuaries since 1979, and a Chartered
Life Underwriter since 1982.

Annuity & Life Re (Holdings), Ltd. wrote to Mr. William H.
Maudsley:

As we have previously discussed, in accordance with the notice
dated September 28, 2005 that was provided to you, Annuity and
Life Re (Holdings), Ltd. and Annuity and Life Reassurance, Ltd.
(the "Operating Subsidiary") will not be renewing your
Employment Agreement dated January 2, 2002 ("Employment
Agreement"). While the Company and the Operating Subsidiary are
not in a position to renew your Employment Agreement, we would
very much like you to continue working for the Company on the
terms set forth in this letter. If you choose not to accept
these terms, your employment will continue under the terms of
your existing Employment Agreement until the expiration of its
current term.

1. Commencement. The terms and conditions of this letter
agreement will become effective on October 19, 2005, provided
that you have returned a copy of this letter agreement signed by
you to the Chairman of the Board of Directors of the Company
(the Board) prior to such date. Upon your written acceptance of
this letter agreement, you acknowledge and agree that your
Employment Agreement will be terminated as of October 19, 2005,
and the Company and its subsidiaries will have no further
obligations to you thereunder.

2. Reporting and Duties. You will be employed by the Company as
its Chief Executive Officer, and you will serve as an officer of
the Company's subsidiaries as may be designated by the Board
from time to time. You will perform the duties and will have the
authority consistent with those titles and as may otherwise be
specified from time to time by the Board. You will report
directly to Board. You will devote your full working time,
energy, skill and best efforts to the performance of your
duties, in a manner which will faithfully and diligently further
the business and interests of the Company and its subsidiaries,
and you shall not be employed by or participate or engage in or
be a part of in any respect in the management or operation of
any business enterprise other than the Company and its
subsidiaries without the prior written consent of the Board.

3. Salary. As compensation for your services hereunder, the
Company will pay to you a salary at an annual rate of $250,000.

4. Bonus. As additional compensation and incentive for your
services hereunder, you shall be eligible for bonus compensation
at the discretion of the Board.

5. Employee Benefits. You shall continue to receive the same
benefits as you are currently receiving from the Company.

6. Housing Allowance. The Company will pay you a $10,000 per
month housing allowance to cover the expense of housing in
Bermuda in connection with the performance of your duties
hereunder.

7. At-will Employment. Your employment relationship with the
Company and its subsidiaries will be at-will. This means that at
either your option or the Company's option, your employment may
be terminated at any time and for any reason, with or without
cause or notice.

8. Severance. If you are terminated by the Company at any time
for any reason other than "Cause" (as defined below), you
terminate your employment because of a reduction in your base
salary or housing allowance that you did not agree to or you
terminate your employment for any other reason within the period
commencing 90 days and ending 180 days following the effective
time of (a) the acquisition of all of the outstanding equity
securities of the Company or (b) the merger of the Company with
another entity, other than a direct or indirect wholly owned
subsidiary of the Company, then, in each case, you shall receive
a severance payment of $620,000 plus reasonable relocation
expenses from Bermuda to the United States, provided that, at
that time, you execute and deliver an unconditional release of
all claims, charges, complaints and grievances, whether known or
unknown to you, against the Company or any of its affiliates,
through the date of your termination of employment. If you are
terminated at any time for Cause, you shall not be entitled to
any severance payment. For purposes of this letter agreement,
"Cause" shall include the following:

- fraud, theft or misappropriation or embezzlement of funds;

- willful violation of any express direction or any rule or
regulation established by the Board;

- neglect of, or insubordination, incompetence or misconduct in
the performance of, your duties hereunder;

- conduct contrary to the best interests of Company or its
subsidiaries;

- use of alcohol or other drugs which interferes with the
performance of your duties.

9. Confidential Information. You agree to keep secret and retain
in the strictest confidence all confidential matters which
relate to the Company or any affiliate of the Company, and not
to disclose any such confidential matter to anyone outside the
Company or any of its affiliates, whether during or after your
period of service with the Company, except as may be required in
the course of a legal or governmental proceeding. Upon request
by the Company, you agree to deliver promptly to the Company
upon termination of your services for the Company, or at any
time thereafter as the Company may request, all Company or
affiliate memoranda, notes, records, computer files and other
documents (and all copies thereof) relating to the Company's or
any affiliate's business and all property of the Company or any
affiliate associated therewith, which you may then possess or
have under your control.

10. Entire Agreement. This letter agreement contains the entire
agreement between the Company and you with respect to the terms
of your continued employment and supersedes all prior
communications, agreements and understandings, whether written
or oral, with respect thereto, including your Employment
Agreement. No officer, director, employee or representative of
the Company has made any representation, whether written or
oral, to you with respect to your employment or the subject
matter contained herein.

11. Governing Law. This letter agreement is made pursuant to,
and shall be construed and enforced in accordance with, the laws
of the State of New York and the federal laws of the United
States of America, to the extent applicable, without giving
effect to otherwise applicable principles of conflicts of law.

If the foregoing terms are acceptable to you, please execute
this letter in the space provided below and return it to me as
soon as possible.

Annuity And Life wrote to John W. Lockwood:

As we have previously discussed, in accordance with the notice
dated September 28, 2005 that was provided to you, Annuity and
Life Re (Holdings), Ltd., Annuity and Life Reassurance, Ltd.,
Annuity and Life Re America, Inc. and Annuity and Life
Reassurance America, Inc. will not be renewing your Employment
Agreement dated February 18, 2004 (Employment Agreement). While
the Company and its subsidiaries are not in a position to renew
your Employment Agreement, we would very much like you to
continue working for the Company on the terms set forth in this
letter. If you choose not to accept these terms, your employment
will continue under the terms of your existing Employment
Agreement until the expiration of its current term.

1. Commencement. The terms and conditions of this letter
agreement will become effective on October 19, 2005, provided
that you have returned a copy of this letter agreement signed by
you to the Chairman of the Board of Directors of the Company
(the "Board") prior to such date. Upon your written acceptance
of this letter agreement, you acknowledge and agree that your
Employment Agreement will be terminated as of October 19, 2005,
and the Company and its subsidiaries will have no further
obligations to you thereunder.

2. Reporting and Duties. You will be employed by the Company as
its Chief Financial Officer, and you will serve as an officer of
the Company's subsidiaries as may be designated by the Board
from time to time. You will initially serve as President of
Annuity and Life Re America, Inc. and Annuity and Life
Reassurance America, Inc. You will perform the duties and will
have the authority consistent with those titles and as may
otherwise be specified from time to time by the Board. You will
report directly to the Board and the Chief Executive Officer of
the Company. You will devote your full working time, energy,
skill and best efforts to the performance of your duties, in a
manner which will faithfully and diligently further the business
and interests of the Company and its subsidiaries, and you shall
not be employed by or participate or engage in or be a part of
in any respect in the management or operation of any business
enterprise other than the Company and its subsidiaries without
the prior written consent of the Board.

3. Salary. As compensation for your services hereunder, the
Company will pay to you a salary at an annual rate of $200,000.

4. Bonus. As additional compensation and incentive for your
services hereunder, you shall be eligible for bonus compensation
at the discretion of the Board.

5. Employee Benefits. You shall continue to receive the same
benefits as you are currently receiving from the Company.

6. Housing Allowance. The Company will pay you a $7,500 per
month housing allowance to cover the expense of housing in
Bermuda in connection with the performance of your duties
hereunder.

7. At-will Employment. Your employment relationship with the
Company and its subsidiaries will be at-will. This means that at
either your option or the Company's option, your employment may
be terminated at any time and for any reason, with or without
cause or notice.

8. Severance. If you are terminated by the Company at any time
for any reason other than "Cause" (as defined below), you
terminate your employment because of a reduction in your base
salary or housing allowance that you did not agree to or you
terminate your employment for any other reason within the period
commencing 90 days and ending 180 days following the effective
time of (a) the acquisition of all of the outstanding equity
securities of the Company or (b) the merger of the Company with
another entity, other than a direct or indirect wholly owned
subsidiary of the Company, then, in each case, you shall receive
a severance payment of $490,000, provided that, at that time,
you execute and deliver an unconditional release of all claims,
charges, complaints and grievances, whether known or unknown to
you, against the Company or any of its affiliates, through the
date of your termination of employment. If you are terminated at
any time for Cause, you shall not be entitled to any severance
payment. For purposes of this letter agreement, "Cause" shall
include the following:

- fraud, theft or misappropriation or embezzlement of funds;

- willful violation of any express direction or any rule or
regulation established by the Board or the Chief Executive
Officer of the Company;

- neglect of, or insubordination, incompetence or misconduct in
the performance of, your duties hereunder;

- conduct contrary to the best interests of Company or its
subsidiaries;

- use of alcohol or other drugs which interferes with the
performance of your duties.

9. Confidential Information. You agree to keep secret and retain
in the strictest confidence all confidential matters which
relate to the Company or any affiliate of the Company, and not
to disclose any such confidential matter to anyone outside the
Company or any of its affiliates, whether during or after your
period of service with the Company, except as may be required in
the course of a legal or governmental proceeding. Upon request
by the Company, you agree to deliver promptly to the Company
upon termination of your services for the Company, or at any
time thereafter as the Company may request, all Company or
affiliate memoranda, notes, records, computer files and other
documents (and all copies thereof) relating to the Company's or
any affiliate's business and all property of the Company or any
affiliate associated therewith, which you may then possess or
have under your control.

10. Entire Agreement. This letter agreement contains the entire
agreement between the Company and you with respect to the terms
of your continued employment and supersedes all prior
communications, agreements and understandings, whether written
or oral, with respect thereto, including your Employment
Agreement. No officer, director, employee or representative of
the Company has made any representation, whether written or
oral, to you with respect to your employment or the subject
matter contained herein.

11. Governing Law. This letter agreement is made pursuant to,
and shall be construed and enforced in accordance with, the laws
of the State of Connecticut and the federal laws of the United
States of America, to the extent applicable, without giving
effect to otherwise applicable principles of conflicts of law.

If the foregoing terms are acceptable to you, please execute
this letter in the space provided below and return it to me as
soon as possible.

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


REFCO INC: Updated Case Summary & 50 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: Refco Inc.
             One World Financial Center
             200 Liberty Street, Tower A
             New York, New York 10281

Bankruptcy Case No.: 05-60006

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Refco Global Finance Ltd.                  05-60007
      Refco Information Services LLC             05-60008
      Bersec International LLC                   05-60009
      Refco Capital Management LLC               05-60010
      Refco Global Capital Management LLC        05-60011
      Marshall Metals LLC                        05-60012
      Refco Financial LLC                        05-60013
      New Refco Group Ltd., LLC                  05-60014
      Refco Regulated Companies LLC              05-60015
      Refco Finance Inc.                         05-60016
      Refco Capital Holdings LLC                 05-60017
      Refco Capital Markets, Ltd.                05-60018
      Kroeck & Associates, LLC                   05-60019
      Refco Administration, LLC                  05-60020
      Refco Mortgage Securities, LLC             05-60021
      Refco Capital LLC                          05-60022
      Refco F/X Associates LLC                   05-60023
      Refco Global Futures LLC                   05-60024
      Summit Management LLC                      05-60025
      Refco Capital Trading LLC                  05-60026
      Refco Group Ltd., LLC                      05-60027
      Refco Global Holdings LLC                  05-60028
      Refco Fixed Assets Management LLC          05-60029

Type of Business: The Debtors constitute a diversified financial
                 services organization with operations in 14
                 countries and a global institutional and retail
                 client base.  Refco Inc.'s worldwide
                 subsidiaries are members of principal U.S. and
                 international exchanges, and are among the most
                 active members of futures exchanges in Chicago,
                 New York, London, Paris and Singapore.  In
                 addition to its futures brokerage activities,
                 Refco Inc. and its affiliates are major brokers
                 of cash market products, including foreign
                 exchange, foreign exchange options, government
                 securities, domestic and international
                 equities, emerging market debt, and OTC
                 financial and commodity products..

Chapter 11 Petition Date: October 17, 2005

Court: Southern District of New York (Manhattan)

Judge: Robert D. Drain

Debtors' Counsel: J. Gregory Milmoe, Esq.
                  Skadden, Arps, Slate, Meagher & Flom LLP
                  Four Times Square
                  New York, New York 10036
                  Tel: (212) 735-3770
                  Fax: (917) 777-3770

Financial Condition as of August 31, 2005:

      Total Assets: $16,500,000,000

      Total Debts:  $16,800,000,000

Debtors' Consolidated List of 50 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
Bawag International Finance                         $451,158,506
BAWAG P.S.K.
Bank fur Arbeit und Wirtschaft und
Osterreichische Postsparkasse
Aktiengesellschaft Sietzergasse 2-4 A-1010
Vienna, Austria
P: +43/1/534 53/3 12 10
F: +43/1/534 53/ 2284

Wells Fargo                                         $390,000,000
Corporate Trust Services
Mac N9303-120
Sixth & Marquette
Minneapolis, MN 55497
P: 612-3 16-47727
Attn: Julie J. Becker

VR Global Partners, LP                              $380,149,056
Avora Business Park
77 Sadovnicheskaya NAB. Building 1
Moscow, Russia 115035

Rogers Raw Materials Fund                           $287,436,182
c/o Beeland Management
141 West Jackson Boulevard, Suite 1340
Chicago, IL 60604
P: (312) 264-4375

Bancafe International Bank Ltd.                     $176,006,738
Carrera 11 82-76
Segundo 2
Bogota, Colombia
P: 636-4349

     - and -

Bancafe International Bank Ltd.
801 Brickell Avenue Ph1
Miami, FL 33131
P: 305-372-9909
F: 305-372-1797

Markwood Investments                                $110,056,725
Via Lovanio
#19 00198
Rome, Italy

Capital Management Select Fund                      $109,009,282
Lynford Manor, Lynford Cay
Nassau, Bahamas

Leuthold Funds Inc                                  $107,264,868
Leuthold Industrial Metals, LP
100 North 6th Street Suite 412A
Minneapolis, MN 55403
P: 612-332-9141
F: 612-332-0797
Attn: David Cragg

Rietumu Banka                                       $100,860,048
JSC Rietumu Banka
Reg. No. 40003074497
VAT No. LV40003074497
54 Brivibas str
Riga, LV-1011 LATVIA
P: +371-7025555
F: +371-7025588

Cosmorex Ltd.                                        $91,393,820
CP 8057 28080
Madrid, Spain
P: +34-607-745-555
F: +34-667-706-622

BCO Hipotecario Inv. Turistic                        $85,807,030
(Fidelicomiso Federal Forex Invest)
Av Venezuela
Torre Cremerca, Piso 2
Ofici B2 El Rosal
Caracas, VENEZUELA

VR Argentina Recovery Fund                           $77,710,311
Avrora Business Park
77 Sadovnicheskayanab BLDG 1
Moscow, 115035 Russia

Rogers International Raw Materials                   $75,213,814
c/o Beeland Management
141 West Jackson Boulevard, Suite 1340
Chicago IL 60604
P: (312) 264-4375

Creative Finance Limited                             $65,111,071
Marcy Building, Purcell Estate
P.O. Box 2416
Road Town, British Virgin Islands

Cargill                                              $67,000,000
PO Box 9300
Minneapolis, MN 55440-9300
P: (952) 742-7575
F: (952) 742-7393

JWH Global Trust                                     $50,576,912
c/o Refco Commodity Management Inc.
One World Financial Center
200 West Liberty St., 22nd Floor
New York, NY 10281

RB Securities Limited                                $50,661,064
54 Brivibas Street
LV-1011 Riga, Lativa
P: + 371 702-52-84
F: + 371 702-52-26

Premier Trust Custody                                $49,365,415
Abraham De Veerstraat 7-A
Curacao, Netherlands Antilles

London & Amsterdam Trust Company                     $47,560,980
P.O. Box 10459 APO
3rd Floor
Century Yard
Cricket Square, Elgin Ave.
Grand Cayman, Cayman Island

Stilton International Holdings
Trident Chambers, Wickhams Cay
P.O. Box 146
Road Town, British Virgin Islands                    $46,820,415

Refco Advantage Multi-Manager Fund Futures Series    $41,713,723
c/o Refco Alternative Investments Group
One World Financial Center
200 West Liberty St., 22nd Floor
New York, NY 10281

Banesco NY Banesco Banco Universal C.A.              $39,596,609
Av Urdaneta, Esquina El Chorre, Torre Untbanca
Caracas Venezuela

Josefina Franco Sillier                              $32,862,419
Carretera Mexico-Toluca No. 4000
Col. Cuajimalpa D.R. 0500 Mexico

Rovida                                               $32,831,461
London & Amsterdam Trust Company
P.O. Box 10459 APO
3rd Floor
Century Yard, Cricket Sq.

Caja S.A.                                            $30,950,115
Sarmiento 299 1 Subsuelo (1353)
Buenos Aires, Argentina
P: (54 11) 4317-8900
F: (54 11) 4317-8909

Global Management Worldwide                          $28,976,612
Trident Corp.
Service Floor 1
Kings Court Bay St.
PO Box 3944
Nassau, Bahamas

Abadi & Co. Securities                               $28,046,904
375 Park Avenue, Suite 3301
New York, NY 10152
P: (212) 319 -4135

Refco Winton Diversified Futures Fund                $27,226,697
c/o Refco Global Finance
One World Financial Center
200 West Liberty Street, 22nd Floor
New York, NY 10281

Pioneer Futures, Inc.                                $25,932,000
One North End Ave., Suite 1251
New York, NY 10282

Daichi Commodities Co., Ltd.                         $24,894,833
10-10 Shinsen Cho, Shibuya-Ku
Tokyo, I5O-0045 JAPAN

GS Jenkins Portfolio LLC.                            $24,631,959
c/o Refco Capital Markets
One World Financial Center
200 West Liberty Street, 22nd Floor
New York, NY 10281

Winchester Preservation                              $23,349,765
c/o Joseph D, Freney
Christiana Bank & Trust Co.
3801 Kennett Pike, Suite 200
Greenville, DE 19807

Banco Agri Banco Agricola (PANAMA) S.A.              $22,314,386
Edificio Global Bank
#17, Local F, Calle 50 PANAMA, PA

     - and -

Banco Agricola, S.A.
1RA. Cakke Pte. Y 67 AV. Norte
Final Blvd Constitucion #100
San Salvador, ES

Peak Partners Offshore Master Fund Limited           $22,205,344
P.O. Box 2199
GT Grand Pavilion Commercial Center
802 West Bay Road
Grand Cayman, Cayman Islands

Arbat Equity Arbitrage Fund                          $19,106,989
Trident Corporate Services
1st Floor Kings Court
Bay Street
P.O. Box N3944
Nassau, Bahamas

Renaissance Securities (Cyprus) Ltd.                 $17,820,709
2-4 Arch Makarios
111 Avenue Capital Center, 9th Floor
1505 Nicosia Cyprus

AQR Absolute Return                                  $17,482,100
c/o Caledonian Bank & Trust Ltd.
P.O. Box 1043
GT Caledonian House
Grand Cayman, Cayman Islands

Geshoa Fund                                          $17,319,494
Corporate Center
West Bay Road
Po Box 31106 Smb
GRAND CAYMAN

RK Consulting                                        $14,074,345
7, Kountouriotou Street
14563 Kifissia
Greece

VR Capital Group Ltd.                                $13,690,549
Avrora Business Park
Calendonian House Mary Street
NAB 77 Building 1
MOSCOW, RUSSIA 115035
P: +358 600 41 902

GTC Bank, INC.                                       $12,971,439
Calle 55 Este
Torre World Trade Center
Piso 7
PANAMA GUATEMALA
P: (507) 265-7371
F: (507) 265-7396

Inversiones Concambi                                 $12,799,137
c/o AEROCAV 1029
P.O. BOX 02-5304
MIAMI, PL 33102

Miura Financial Services                             $12,150,213
AV. Francisco De Miranda
TORRE LA
PRIMERA PISO 3
CARACAS VENEZUELA

NKB Investments Ltd.                                 $11,699,430
199 Arch Makarios Ave
196 Makarios III Avenue
Ariel Corner 3rd Floor
Office 301 3030
Limassol CYPRUS

Tokyo Forex Financial Inc                            $11,689,354
Shinjyuku Oak Tower, 35th Floor
6-8-1 Nishishinjyuku
Shinjyuku-Ku, Tokyo JAPAN

Birmingham Merchant S.A.                             $11,215,413
AV. ARGENTINA 4793
PISO 3
CALLAO PERU

BAC International                                    $10,906,506
Calle 43 Qnquillo De Laguar
PANAMA
P: (507) 265-8289
F: 507-205-4031

Total Bank                                           $10,657,732
Calle Guaicaipuro Entre
Av.Principalde
Ias Mercedes
Torre Alianza Piso 9
EL ROSAL, CAACAS, VENEZUELA
P: (0212) 264.72.54/49.42
F: (0212) 266.58.12

Reserve Invest (Cypress) Limited                     $10,499,733
Maximos Plaza
3301 Block 3
3035 LIMASSOL
CYPRUS

Refco Commodity Futures Fund                         $10,166,045
c/o Refco Alternative Investments Group
One World Financial Center
200 Liberty Street, 22nd Floor
New York, New York 10281
P: 877 538 8820
F: 877 229 0005
(Troubled Company Reporter, Oct. 20, 2005, Vol. 9, No. 249)


REFCO INC: S&P Ratings Tumble to D After Bankruptcy Filing
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its 'CC' long-term
counterparty credit rating, 'CC' senior debt rating, and 'C'
subordinated debt rating on Refco Group Ltd. LLC to 'D'.  All of
the ratings were also removed from CreditWatch Negative where
they had been placed on Oct. 10, 2005.

"The downgrades are in response to the announcement by Refco
Inc. -- the parent of Refco Group -- that it and certain
subsidiaries filed for bankruptcy protection from creditors,"
said Standard & Poor's credit analyst Tom Foley.


REFCO INC: Seeks to Appoint Joint Liquidators for Units
-------------------------------------------------------
Refco Inc. filed applications in the Bermuda Supreme Court
Wednesday to appoint joint provisional liquidators for its two
local units, the Royal Gazette understands. The units in
question are Refco Capital Markets, Ltd. and Refco Global
Finance Ltd..

The Bermuda applications come parallel to Refco's Chapter 11
bankruptcy protection proceedings in the United States for 24 of
its unregulated units.

Law firms Conyers Dill & Pearman and Williams Barristers &
Attorneys are acting in the Bermuda applications.

Refco Capital, which is Refco's main Bermuda subsidiary and
provides prime-brokerage services to hedge funds, was
temporarily shut down on October 13 because of a lack of
liquidity.

Refco Capital is alleged to have been involved in a US$335-
million loan to a company owned by Refco former chief executive
Phillip R. Bennett, through an intermediary company.


SEA CONTAINERS: Suspends Cash Dividends on Common Shares
--------------------------------------------------------
Sea Containers Ltd. (NYSE: SCRA and SCRB, www.seacontainers.com)
announced Thursday suspension of quarterly cash dividends on the
company's Class A and Class B common shares.  Sea Containers is
planning major changes to its ferry operations, as indicated in
the company's second quarter 2005 earnings news release on
August 8, 2005, which will be announced soon.  Suspension of
dividends will be part of the plan, starting with the cash
dividends ordinarily payable in November 2005.

CONTACT: Sea Containers Ltd.
         William W. Galvin
         Phone: 203 / 618-9800



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

SABESP: Announces Dividend Dividend Payment Terms
-------------------------------------------------
SABESP (NYSE: SBS) (Bovespa: SBSP3), the largest water and
sewage utility company in the Americas and the third in the
world (in number of clients) hereby inform the Shareholders
that, in a meeting held on October 20, 2005, the Board of
Directors of Companhia de Saneamento Basico do Estado de Sao
Paulo -- SABESP recommended and the Full Executive Board
approved, after hearing the Fiscal Council, pursuant to
paragraph 2 of Article 38 of its Bylaws, the declaration of
payment of dividends in the form of Interest on Own Capital,
referring to the third quarter of 2005 to the shareholders on
the reference date of November 3, 2005.

The Dividends as Interest on Own Capital, totaling
R$85,153,937.70 corresponding to R$2,99 per thousand common
shares will be paid no later than 60 days after the 2006 Annual
Shareholders' Meeting.

Income tax shall be withheld from payment of dividends as
interest on own capital, pursuant to the laws in force, except
for the immune or exempt shareholders proving such condition
until January 31, 2006, and corresponding documents shall be
sent to the Company's headquarters located at Rua Costa
Carvalho, 300 -- Sala 265 -- Sao Paulo -- SP -- CEP 05429-900,
in attention to the SuperintendAŽncia de Captacao de Recursos e
Relacoes com Investidores -- FI.

Said Interest on Own Capital will be declared and computed in
the calculation of the mandatory minimum dividends, as provided
in Article 38, Paragraph 2 of the Company's Bylaws and in
Paragraph 7 of the Article 9 of the Law 9249/95.

The shares now are traded ex-interest from November 4, 2005.

CONTACT: SABESP
         Investors: Mario Sampaio
         Tel: +011-55-11-3388-8664
         E-mail: maasampaio@sabesp.com.br

         Marisa Guimaraes
         Tel: +011-55-11-3388-9135
         E-mail: marisag@sabesp.com.br


UNIBANCO: Board Approves Quarterly Interest Payment
---------------------------------------------------
The Board of Directors of UNIBANCO - Uniao de Bancos Brasileiros
S.A (Unibanco) and of UNIBANCO HOLDINGS S.A. (Unibanco Holdings)
approved, on the present date, as proposed by the respective
Boards of Officers on October 07, 2005:

The payment of Quarterly Interests, related to the third quarter
of 2005, in the gross total amount of R$56.7 million and R$27.4
million, and net total amount of R$48.2 million and R$23.3
million, respectively to Unibanco and Unibanco Holdings, to be
made on October 31, 2005.

This payment shall be considered as part of the mandatory
dividend corresponding to the fiscal year of 2005, in accordance
with the provisions of paragraph 7th of article 9 of Federal Law
9,249/95, paragraph 8th of article 44 of the by-laws of Unibanco
and the sole paragraph of article 35 of the by-laws of Unibanco
Holdings.

In accordance with the proposals approved by the respective
Boards of Directors, the shareholders of Unibanco and/or
Unibanco Holdings shall have the right to receive the interest
on capital stock in accordance with the gross and net amounts
set forth in the table below. Such values correspond to one (1)
share, one (1) Share Deposit Certificate (Unit)*, or one (1)
"Global Depositary Share" (GDS)**, as the case may be.

To see net values: http://bankrupt.com/misc/UNIBANCO.htm

B. The payment of the due amounts, pursuant to the table above,
shall be made according to the procedures and places set forth
below:

1. GDSs' holders:
The payment shall be made directly to the foreign depositary
bank - Bank of New York - which will forward it to the entitled
shareholders.

2. Other shareholders:

2.1. Shareholders who are Unibanco's registered account holders:
The payment shall be made by means of credit in the respective
bank accounts.

2.2. Shareholders who hold bank accounts in other banks, who
have already provided to Unibanco, the bank, branch and bank
account numbers:

The payment shall be made by means of eletronic transfer (DOC/
TED), according to the respective amounts.

2.3. Shareholders whose shares are deposited in the Sao Paulo
Stock Exhange's custody:

The payment will be made directly to the Sao Paulo Stock
Exchange, which shall forward such amounts to the entitled
shareholders, by means of the depositary brokers.

2.4. Shareholders for whom the above-mentioned situations are
not applicable: The payment shall be made at any Unibanco's
branch at their convenience.

2.5. Shareholders who hold bearer share certificates which still
have not been converted to the book-entry system: The payment
will be made upon delivery of the respective certificates for
mandatory conversion.

2.5.1. Assistance to the conversion will be provided by our
Shareholders Assistance department in the addresses set forth
below, where relevant shareholders shall attend and present the
respective certificates.
Sao Paulo - SP: Av. Eusebio Matoso, 1375 - 6th floor
Rio de Janeiro - RJ: Rua Sete de Setembro, 111 mezzanine.

2.5.2. For all other locations, such assistance shall be made at
Unibanco's branches.

C. As per the approved proposals:

In Brazil, the date hereof, October 20, 2005, will be considered
as "Record Date" for the purpose of determining the right to
receive the payment of interest on capital stock, on October 31,
2005. Unibanco's and Unibanco Holdings' shares and Units will be
traded ex-interest on capital stock from October 21, 2005 on.

In the United States of America, October 25, 2005 will be
considered as "Record Date" for the purpose of attending the
obligations assumed by the GDS program maintained by the
Companies. The GDSs will be traded ex-interest on capital stock
from October 21, 2005 on.

Sao Paulo, October 20, 2005.

CONTACT: Unibanco - Uniao de Bancos Brasileiros S.A.
         Investor Relations Area
         Av. Eusebio Matoso, 891 - 15th floor - Sao Paulo
         SP 05423-901 - Brazil
         Phone: (55 11) 3097-1980
         Fax: (55 11) 3813-6182
         E-mail: investor.relations@unibanco.com

         URL: www.ir.unibanco.com



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

DOWNTON LIMITED: Shareholder Voluntarily Winds Up Firm
------------------------------------------------------
                    DOWNTON LIMITED
              (In Voluntary Liquidation)
          The Companies Law (2004 Revision)

TAKE NOTICE that the following special written resolution
(resolution 1) and ordinary resolution (resolution 2) were
passed by the shareholder of the above-mentioned company at an
extraordinary general meeting on the 7th October 2005:

"THAT the company be placed in voluntary winding up;

"THAT Commerce Corporate Services Limited be appointed as
liquidator of the company."

CONTACT:  COMMERCE CORPORATE SERVICES LIMITED
          Voluntary Liquidator
          Commerce Corporate Services Limited
          P.O. Box 694, Grand Cayman
          Cayman Islands
          Telephone: 949 8666
          Facsimile: 949 0626



DRESDNER RCM: Liquidation Meeting Set for December 15
-----------------------------------------------------
          DRESDNER RCM TAIWAN FUND LIMITED
            (In Voluntary Liquidation)
                (The "Company")
         The Companies Law (2004 Revision)

Pursuant to section 145 of the Companies Law (2004 Revision),
the final general meeting of the shareholders of this Company
will be held at the offices of Deloitte, Fourth Floor, Citrus
Grove, P.O. Box 1787, George Town, Grand Cayman, on 15th
December 2005 at 10:00a.m.

Business:

1. To lay accounts before the meeting showing how the winding up
has been conducted and how the property has been disposed of to
the date of the final winding up on 15th December 2005.

2. To authorize the liquidators to retain the records of the
Company for a period of five years from the dissolution of the
Company, after which they may be destroyed.

Proxies: Any person who is entitled to attend and vote at this
meeting may appoint a proxy to attend and vote in his stead. A
proxy need not be a member or creditor.

CONTACT:  STUART SYBERSMA
          Joint Voluntary Liquidator
          For enquiries: Nicole Ebanks, Deloitte
          P.O. Box 1787 GT, Grand Cayman
          Cayman Islands
          Telephone: (345) 949-7500
          Facsimile: (345) 949-8258


DS INTERNATIONAL: Liquidation Accounting Set For Nov. 18
--------------------------------------------------------
                     DS International, LTD.
                   (In Voluntary Liquidation)
                The Companies Law (2003 Revision)

Pursuant to section 145 of the Companies Law (2003 Revision),
the final general meeting of the sole shareholder of the Company
will be held at the registered office of the company on November
18, 2005.

Business:

1. To lay accounts before the meeting, showing how the winding
up has been conducted and how the property has been disposed of,
as at final winding up on November 18, 2005.

2. To authorize the liquidators to retain the records of the
company for a period of five years from the dissolution of the
company after which they may be destroyed.

Proxies: Any person who is entitled to attend and vote at this
meeting may appoint a proxy to attend and vote in his stead. A
proxy need not be a member or a creditor.

CONTACT: CFS Liquidators LTD., Liquidator
         c/o Windward 1, Regatta Office Park
         West Bay Road, P.O. Box 31106 SMB
         Grand Cayman, Cayman Islands
         For Inquiries: Victor Murray
         Telephone: (345) 949 - 3977
         Facsimile: (345) 949 - 3877


EDS STRATEGIC: Taps Johann Le Roux, Jon Roney as Liquidators
------------------------------------------------------------
             EDS STRATEGIC FUNDING LTD.
            (In Voluntary Liquidation)
         The Companies Law (2004 Revision)
                     Section 135

TAKE NOTICE that the following special resolution was passed by
the shareholder(s) of the above-mentioned Company at an
extraordinary general meeting of the shareholder(s) held on 30th
September 2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Johann Le Roux and Jon Roney be appointed, jointly and
severally, as liquidators of the Company.

Creditors of the above-named company are to prove their debts or
claims on or before 17th November 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:  JOHANN LE ROUX and JON RONEY
          Joint Voluntary Liquidators
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


FLAVIUS CDO: Proofs of Claims Due Before Nov. 17
------------------------------------------------
                  FLAVIUS CDO 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 the above-mentioned Company at an
extraordinary general meeting of the shareholder(s) held on 5th
October 2005:

THAT the Company be placed into voluntary liquidation forthwith.

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

Creditors of the above-named company are to prove their debts or
claims on or before 17th November 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:  HELEN ALLEN and JON RONEY
          Joint Voluntary Liquidators
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


FSL FUNDING: Winding Up Details Due in Nov. 17 Meeting
------------------------------------------------------
                   FSL FUNDING, LTD.
              (In Voluntary Liquidation)
           The Companies Law (2004 Revision)
                      Section 145

NOTICE is hereby given pursuant to Section 145 of the Companies
Law that the final general meeting of the above-named company
will be held at the offices of Maples Finance Limited,
Queensgate House, George Town, Grand Cayman, Cayman Islands, on
17th November 2005 for the purpose of presenting to the members
an account of the winding up of the company and giving any
explanation thereof.

CONTACT: JOHANN LE ROUX
         Joint Voluntary Liquidator
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands.


GENOA SILVER: Gives Creditors Until Nov. 17 to Prove Debt Claims
----------------------------------------------------------------
                  GENOA SILVER THATCH LTD.
                 (In Voluntary Liquidation)
             The Companies Law (2004 Revision)

The following special resolution was passed by the sole
shareholder of the above-named company at an extraordinary
general meeting of the shareholders held on 22nd September,
2005:

"That the company be voluntarily wound up and that Linburgh
Martin and John Sutlic, of P.O. Box 1034GT, Grand Cayman, be and
are hereby appointed Joint Liquidators, to act jointly and
severally, for the purposes of such winding up."

Creditors of this company are to prove their debts or claims on
or before the 17th day of 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:  LINBURGH MARTIN
          Joint Voluntary Liquidator
          For enquiries: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034GT, Grand Cayman
          Telephone: (345) 949 8455
          Facsimile: (345) 949 8499


HK SYNTHETIC: Voluntary Liquidation Initiated
---------------------------------------------
                  HK Synthetic MBS Co. 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 HK Synthetic MBS Co. Limited at an
extraordinary general meeting of the shareholder(s) held on
September 29, 2005:

THAT the Company be placed into voluntary liquidation forthwith.

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

Creditors of HK Synthetic MBS Co. Limited are to prove their
debts or claims on or before November 17, 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 Mr. Jon Roney
         Joint Voluntary Liquidators
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands


INCOME PARTNERS: Final General Meeting Set for Nov. 17
------------------------------------------------------
        Income Partners Asian Collateralized Assets I Ltd.
                     (In Voluntary Liquidation)
                  The Companies Law (2004 Revision)
                            Section 145

NOTICE is hereby given pursuant to Section 145 of the Companies
Law that the final general meeting of Income Partners Asian
Collateralized Assets I Ltd. will be held at the offices of
Maples Finance Limited, Queensgate House, George Town, Grand
Cayman, Cayman Islands, on November 17, 2005 for the purpose of
presenting to the members an account of the winding up of the
company and giving any explanation thereof.

CONTACT: Messrs. Guy Major and Jon Roney
         Joint Voluntary Liquidator
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands.


INFINITY OFFSHORE: Appoints Liquidators for Wind Up
---------------------------------------------------
                  Infinity Offshore Series Fund
                    (In Voluntary Liquidation)
                 The Companies Law (2004 Revision)

The following special resolution was passed by the sole
shareholder of Infinity Offshore Series Fund at an extraordinary
general meeting of the shareholders held on August 19, 2005:

"That the Company be voluntarily wound up and that Linburgh
Martin and John Sutlic, of P.O. Box 1034GT, Grand Cayman, be and
are hereby appointed Joint Liquidators, to act jointly and
severally, for the purposes of such winding up."

Creditors of the Company are to prove their debts or claims on
or before November 17, 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: Mr. Linburgh Martin, Joint Voluntary Liquidator
         Thiry Gordon
         Close Brothers (Cayman) Limited
         Fourth Floor, Harbour Place
         P.O. Box 1034GT, Grand Cayman
         Telephone: (345) 949 8455
         Facsimile: (345) 949 8499


KELLOGG ISL: Shareholders to Hear Liquidation Report Nov. 5
-----------------------------------------------------------
                     Kellogg ISL Limited
                  (In Voluntary Liquidation)
               The Companies Law (2004 Revision)

TAKE NOTICE THAT pursuant to Section 145 of the Companies Law
(2004 Revision) that the final meeting of the shareholders of
Kellogg ISL Limited will be held at Walkers, Walker House, P.O.
Box 265 GT, Mary Street, George Town, Grand Cayman, Cayman
Islands, on November 5 for the purpose of having an account laid
before them and to receive the report of the Liquidator showing
how the winding-up of the company has been conducted and its
property disposed of, and for hearing any explanation that may
be given by the Liquidator.

Any member entitled to attend and vote is permitted to appoint a
proxy to attend and vote instead of him and such proxy need not
be a member.

CONTACT: Art Weigand, Voluntary Liquidator
         c/o Walkers
         Walker House, P.O. Box 265 GT
         Mary Street, George Town
         Grand Cayman, Cayman Islands


KOREA ASSET: Winding Up Proceedings Started
-------------------------------------------
               Korea Asset Funding 2000-1 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 Korea Asset Funding 2000-1 Limited at an
extraordinary general meeting of the shareholder(s) held on
October 5, 2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Chris Watler and Johann Le Roux be appointed, jointly and
severally, as liquidators of the Company.

Creditors of Korea Asset Funding 2000-1 Limited are to prove
their debts or claims on or before November 17, 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: Messrs. Chris Watler and Johann Le Roux
         Joint Voluntary Liquidators
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands


KYLAR LIMITED: Executive Holdings Limited Selected as Liquidator
----------------------------------------------------------------
                          Kylar Limited
                   (In Voluntary Liquidation)
                The Companies Law (2004 Revision)
                           Section 135

TAKE NOTICE that the following Special Resolutions were passed
by the Company on September 9, 2005:

THAT the Company be placed into voluntary liquidation forthwith.

THAT Executive Holdings Limited be appointed as Liquidator of
the Company.

NOTICE IS HEREBY GIVEN that the creditors of the Company which
is being wound up voluntarily are required on or before November
17, 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 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 or
in default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

CONTACT: Executive Holdings Limited, Liquidator
         James Coyle, President
         c/o Guaranty Trust Bank Limited
         Lyford Manor, Lyford Cay
         West Bay Street, Nassau, Bahamas


MAINSAIL INVESTMENT: Enters Voluntary Liquidation
-------------------------------------------------
                     Mainsail Investment Ltd.
                    (In Voluntary Liquidation)
             THE COMPANIES LAW (2001 Second Revision)

The following special resolution was passed by the shareholders
of the Company at an extraordinary general meeting held on
September 23, 2005:

"RESOLVED THAT the company be voluntarily wound-up and that
Paolo Giacomelli of MBT Trustees Ltd., Grand Cayman be appointed
as liquidator of the company for that purpose."

Creditors of the company are to prove their debts or claims on
or before November 18, 2005 and to establish any title they may
have under the Companies Law (2001 Second Revision), or to be
excluded from the benefit of any distribution made before such
debts are proved or from objecting to the distribution.

CONTACT: Mr. Paolo Giacomelli, Voluntary Liquidator
         P.O. Box 30622 S.M.B., Grand Cayman
         Cayman Islands
         Telephone: 945-8859
         Facsimile: 949-9793/4



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

BANCAFE: Denies Refco Creditor Status
-------------------------------------
Colombian state-owned bank Bancafe is not a creditor of Refco,
the largest U.S. independent commodities and futures brokerage
that filed for Chapter 11 early last week, reports Reuters.

"Bancafe has already asked Refco's representatives to correct
this information," Bancafe said in a statement, referring to
Refco court documents, which list Bancafe as the fifth-largest
creditor, with a claim of US$176 million.


COOPDESARROLLO: Regulator Review Expected Within a Month
--------------------------------------------------------
The regulator for banking cooperatives, as well as the deposit
insurance fund Fogafin, are likely to wrap up their review on
the books of local cooperative bank Central Cooperativa
Coopdesarrollo within a month, reports Business News Americas.

Coopdesarrollo, the largest shareholder in liquidated bank
Megabanco, was intervened earlier this month due to liability
payments default, inconsistencies in accounting and financial
information, and a reduction in its net equity below 50% of its
subscribed capital.

Regulator Enrique Valderrama believes that although
Coopdesarrollo is the majority shareholder in Megabanco, its
liquidation is unlikely to have an effect on Megabanco's
operations.

Meanwhile, local daily La Republica suggests regulators are
likely to sell Megabanco early next year 2006.

"This is a segment that the Colombian banking sector has not
explored thoroughly yet, and it is seen as a good business. I do
not doubt for a moment the success of Megabanco's sale,"
Coopdesarrollo's liquidator Alejandro Rebollo reportedly said.

At the end of August, Megabanco reportedly has assets totalling
COP2.1 trillion (US$913 million) at end-August. Its equity stood
at COP132 billion.


GRANAHORRAR: Second Stage of Privatization to Conclude Oct. 31
--------------------------------------------------------------
Deposit insurance fund Fogafin anticipates concluding its second
phase of the privatization of Granahorrar on October 31 by
announcing the winning bid for 98.8% of the state-owned mortgage
lender. According to Business News Americas, there are five
bidders for the stake, namely Banco de Bogota, Davivienda,
Colpatria, as well the local units of Spanish groups Santander
(NYSE: STD) and BBVA (NYSE: BBV).

Fogafin recently completed the first phase of the privatization
of Granahorrar by some 497.446 billion shares, or 1.2% of the
bank's capital, worth COP5.1 billion (US$2.2mn) to the Company's
workers, cooperatives and pension funds.

Fogafin director Juan Ortega expects the sale of Granahorrar to
bring in as much as COP438 billion (US$189mn).

Granahorrar was intervened by the government during the
country's financial crisis in the late 1990s to save it from
bankruptcy.



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

AIR JAMAICA: Adds New Board Members
-----------------------------------
New members have been added to the board of directors of the
newly restructured national airline Air Jamaica, The Jamaica
Observer reports. Businessman and past chairman of Jamaica
Tourist Board O.K Melhado has been appointed chairman of the
airline's board of directors.

American Michael Conway, former Vice President and Controller at
Continental Airlines and co-founder of National Airlines and
America West, will be Air Jamaica's new Chief Executive Officer
starting November 1.

Conway is credited with financially and strategically
restructuring America West within two years after it filed for
bankruptcy during the 1990-91 Gulf War.

He comes to Air Jamaica from his most recent job as senior
advisor in an unnamed investment and restructuring bank.

Fresh faces who will join the board and who will serve for the
next three years include Dr. Jeffery Meeks, businessman Horace
Reid, Vice Chancellor Emeritus of the University of the West
Indies, Professor Rex Nettleford and University of the West
Indies student, Sophia Lowe.

Outgoing board chairman Dr. Vincent Lawrence will remain on the
board until December 31 as Interim Executive Chairman.

Other appointees from the interim board include Port Authority
boss Noel Hylton, Central Bank governor Derick Latibeaudiere,
businessman Senator Noel Sloley, tourism director Paul
Pennicook, and Millicent Hughes.

Finance Minister Dr. Omar Davies said that he wanted the
restructure team to build on what he sees as the successes of
the Vin Lawrence-led interim team in the financial restructuring
of the carrier.

Davis was pleased with the work of the interim board so some
members have been retained, but he also wanted to bring young
persons on board as well as those with interest and minor
success in this type of business to make the board
representative of all interest groups.

Davies believed the combination of persons who comprise the new
Board would bring the airline forward and continue the
rebuilding work started under Lawrence.

"Of special significance to us is that Mr. Conway has explicitly
indicated that he will be a full time resident of Jamaica,"
Davies said.

A twelfth member called the workers' representative will be
named soon, Davies announced.

According to Davies, the new board composition marked the
beginning of a new chapter in the life of Air Jamaica though
majority of the directors are from the old board.

He said that the ultimate goal was to make Air Jamaica viable
and profitable, of which the nation could be proud.

The new board's main focus would continue to be on the airline's
cost structure to slim expenditure, Melhado said.

Melhado stated that assessments include already announced plans
to cut the fleet from 20 to 15 aircrafts, rationalize the routes
the carrier flies, and strengthen the Air Jamaica brand.

The financial support to the airline is capped at US$30 million
(J$1.9 billion) per annum in order to minimize Air Jamaica's
burden on the budget.

Operationally, the airline is still evaluating strategies,
Davies said.

The government resumed control of the flagging airline in
December last year from majority private owners Air Jamaica
Acquisition Group led by Gordon 'Butch' Stewart.

Since the takeover, the government has committed an annual US$30
million to the airline to keep it flying, until it becomes self-
sufficient.

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



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

ASARCO: Final Cash Collateral Hearing Set for Fri., Oct. 28
-----------------------------------------------------------
As reported in the Troubled Company Reporter on Aug. 15, 2005,
Judge Schmidt of the U.S. Bankruptcy Court for the Southern
District of Texas granted ASARCO LLC authority to use its cash
collateral on an interim basis.

The Court directs ASARCO to deposit $1,280,000 of proceeds of
Mitsui & Co. (U.S.A.), Inc.'s collateral in a newly established
separate segregated bank account.

As ASARCO sells its copper inventory, the Debtor is directed to
continue allocating the proceeds to silver inventory in the same
manner that it has done previously.

As proceeds of Mitsui's collateral are received, the Debtor will
promptly deposit into the Mitsui Cash Collateral Account that
portion of the proceeds that the Debtor has allocated to silver
inventory.

The Court directs the Debtor to provide Mitsui with reports of
the amount of silver inventory on a bi-weekly basis and of the
amount of the Cash Collateral that is segregated in the Mitsui
Cash Collateral Account on a weekly basis pending a final
hearing.


                       Court Ruling

Judge Schmidt authorizes ASARCO, LLC, on an interim basis, to
continue to maintain the proceeds of Mitsui & Co. (USA), Inc.'s
collateral in the separate segregated bank account.

As ASARCO sells its copper inventory, the Debtor must continue
to allocate the proceeds to silver inventory in the same manner
that it has done previously, Judge Schmidt says.

As proceeds of Mitsui's collateral are received, Judge Schmidt
continues, ASARCO must promptly deposit in the Mitsui Cash
Collateral Account that portion of the proceeds that the Debtor
has allocated to silver inventory.

ASARCO is directed to provide Mitsui with reports of the amounts
of silver inventory on a bi-weekly basis and of the amount of
the Mitsui Cash Collateral that is segregated in the Mitsui Cash
Collateral Account on a weekly basis, pending a final hearing.

The Court will convene a final hearing to consider ASARCO's
request on Oct. 28, 2005, at 10:00 a.m. in Corpus Christi.

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

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

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304),
Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex.
Case No. 05-21346) also filed for chapter 11 protection, and
ASARCO has asked that the three subsidiary cases be jointly
administered with its chapter 11 case.  (ASARCO Bankruptcy News,
Issue No. 8; Bankruptcy Creditors' Service, Inc., 215/945-7000).


HAYES LEMMERZ: Agrees to Sell Businesses
----------------------------------------
Hayes Lemmerz International, Inc. (Nasdaq: HAYZ) announced
Thursday that it has entered into a stock purchase agreement for
the sale of its Commercial Highway Hub and Brake Drum business
to Precision Partners Holding Company, a multi-national supplier
of complex precision machined components, tooling, and
assemblies. This transaction does not include the Company's
Automotive Brake Business that manufactures brake components for
the passenger car and light truck market.

Under the terms of the stock purchase agreement, Hayes Lemmerz
agreed to sell all of the issued and outstanding shares of
capital stock of certain subsidiaries which operate the
Company's Commercial Highway Hub and Drum business for
approximately $51 million. The Hub and Drum business includes
the Company's operations in Berea, Kentucky, Chattanooga,
Tennessee and in Mexico City, Mexico. Annual sales for these
operations are approximately $110 million and they employ
approximately 545 people.

Hayes Lemmerz intends to use a portion of the net proceeds from
the sale to reduce the principal amount of its Term B loan and a
portion to provide additional liquidity as permitted by the
Company's Amended and Restated Credit Agreement.

The transaction is subject to certain closing conditions and is
expected to close on or before November 30, 2005. However, there
can be no assurance that the conditions to closing will be
satisfied or that the closing will occur on or before November
30, 2005, or at all.

"The Commercial Highway Hub and Drum business is performing well
financially. With a solid customer base, excellent brand and
great people, it has significant growth opportunities in its
target markets," said Curtis Clawson, President, CEO and
Chairman of the Board. "This transaction, however, will enhance
liquidity and will help focus the Company on core products in
select geographic areas."

Hayes Lemmerz International, Inc. is a leading global supplier
of automotive and commercial highway wheels, brakes, powertrain,
suspension, structural and other lightweight components. The
Company has 39 facilities and approximately 11,000 employees
worldwide.

CONTACT: Hayes Lemmerz International, Inc.
         Marika P. Diamond
         Tel: +1-734-737-5162


SATMEX: US Court Grants Restructuring Proposal Deadline
-------------------------------------------------------
Mexican satellite operator Satmex secured approval from a US
court to extend until January 10, 2006 the deadline for the
Company to come up with a financial restructuring proposal to
its creditors, reports Business News Americas.

Originally, Satmex had until October 31 to make the proposal as
part of an agreement reached with creditors in August. Under the
accord, creditors agreed to withdraw their Chapter 11
involuntary bankruptcy filing with a US court in exchange for
Satmex agreeing to make a financial proposal by October 31 and
to ensure that the Satmex 6 satellite is launched by June 30,
2006.

According to Jack Deino, an analyst with APS Financial
Corporation, the extension of the time limit for putting the
proposal together will not affect the launch date for Satmex 6.
Satmex, Deino said, has declared that it has the US$50 million
in funding necessary to insure the satellite.

The launch is seen as essential for the future survival of the
company.



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

EDC: El Sitio Project Hinges on Government's Tarrif Decision
------------------------------------------------------------
C.A. La Electricidad de Caracas (EDC) plans to start
construction of a US$150-million, 300MW El Sitio thermoelectric
project in the Tuy river valley in 2008, reports Business News
Americas. But according to EDC President Julian Nebreda, the
move would still depend on the demand as well as the
government's decision about the rates issue.

Rates have been frozen since 2003. Nebreda reiterated that the
issue of service rates is a very serious one for his company.

"We told the government that in relation to the accepted formula
for the calculation of rates, there is a lag," he said.

The rates formula "should take inflation and the currency
exchange rate into consideration but that has not been the case
lately. Changes are needed in order to reactivate investment,"
Mr. Nebreda said.

"We are looking at a 6% increase in demand this year, we need
new investments. In 2006, we will invest about US$100mn as it
is. We have kept on investing regardless of the problem with the
rates," said Mr Nebrada.

Nebreda said EDC will be issuing new debt on the local market as
well as seek assistance from multilateral organizations to
finance the construction of the El Sitio thermoelectric project.

EDC, which is owned by US power company AES (NYSE: AES), has
about 1 million clients in the Greater Caracas area.


PETROZUATA FINANCE: Ratings Remain on CreditWatch, Negative
-----------------------------------------------------------
Rationale

The ratings on Petrozuata Finance Inc.'s $274 million bonds due
2009, $625 million bonds due 2017, and $75 million bonds due
2022 remain on CreditWatch with negative implications, where
they were placed on July 19, 2005.

Petrozuata Finance's bonds are guaranteed by Petrolera Zuata,
Petrozuata C.A. (Petrozuata). Petrozuata is a heavy oil-
production and upgrading project located in Venezuela owned by
Conoco Orinoco (50.1%), a subsidiary of ConocoPhillips (A-
/Stable/A-2), and PDVSA Petroleo Y Gas (49.9%), a subsidiary of
Petroleos de Venezuela S.A. (PDVSA; B+/Stable/--).

The CreditWatch reflects the potential for the government to
increase tax and royalty payments due from the project,
especially in regard to back payments on what it may view as
Petrozuata's overproduction of heavy oil from contractual limits
and Petrozuata's unauthorized use of natural gas associated with
heavy oil production. Because Petrozuata does not retain much
cash at the project level--as with almost all projects--its
limited liquidity could make it difficult to pay a large
obligation in a timely manner.

The 'B+' rating reflects the following risks:

    - Petrozuata is located in Venezuela, a country that remains
      highly politically polarized and economically challenged,
      which exposes the project to the risk of government
      intervention that could negatively affect operations and
      financial performance. The government's unilateral
      increase in the project's royalty rate to 16.6% from 1% in
      October 2004 and potential rise in tax rates and
      obligations clearly illustrates this risk.

    - Upgrader operations rely on feedstocks from third parties
      and PDVSA. During the early 2003 strike that shut down
      PDVSA's operations, Petrozuata was not able to obtain
      natural gas from PDVSA or hydrogen supplied by third
      parties and had to shut down operations for about two
      months.

    - Conoco's obligation to purchase the output can be
      suspended when either of the designated refineries, Lake
      Charles on the U.S. Gulf Coast and Cardon in Venezuela,
      shut down for maintenance or when force majeure events
      occur.

    - Senior lenders (including bondholders) may be unable to
      enforce fixed-asset collateral security in Venezuela.

    - The project is exposed to commodity price risk because,
      while it does have long-term contracts for offtake, prices
      are indexed to market.

Offsetting these risks at the 'B+' level are the following
strengths:

    - Petrozuata has strong economics due to a low break-even
      Maya crude oil price per barrel that ranges from about $9
      to $13, although the break-even price would rise somewhat
      if tax rates are increased.

    - Operations continue to be good, with average heavy oil and
      syncrude production rates above pro forma levels. A
      recently completed environmental capital program for the
      upgrader should lead to improved operational and financial
      performance.

    - The project is not exposed to marketing risk because
      ConocoPhillips and PDVSA have agreed to purchase 104,000
      barrels per day of syncrude production in the absence of
      third-party sales through a contract that expires well
      beyond the debt tenor.

    - There is low risk that the reserves supplying the
      Petrozuata project will not be sufficient to maintain
      production rates over the debt tenor.

    - The project has important strategic and economic value to
      Venezuela by way of monetizing the heavy oil reserves in
      hard currencies and through the payment of royalties and
      taxes.

    - Petrozuata continues to generate strong cash flow in a
      high oil price environment. The debt service coverage
      ratio was very solid at 4.8x for year ended June 30, 2005.

ConocoPhillips' Lake Charles refinery was offline from Sept. 21,
2005 to Oct. 14, 2005, due to effects from Hurricane Rita. As it
has done in the past when Lake Charles is offline, Petrozuata
continues to produce oil, but stores it offshore to be processed
when Lake Charles returns to service.

Petrozuata plans an upgrader shutdown from Oct. 28, 2005, to
Nov. 25, 2005 for scheduled maintenance. The project will
continue to produce heavy oil, but will blend it with lighter
crude oil to develop an export product while the upgrader is
offline.

Primary Credit Analyst: Terry A Pratt, New York (1) 212-438-
2080; terry_pratt@standardandpoors.com




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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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