TCRLA_Public/051228.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

          Wednesday, December 28, 2005, Vol. 6, Issue 257

                            Headlines

A R G E N T I N A

AGUAS PROVINCIALES: Senate Endorses Suez's Stock Transfer
CASA DAMI: Concludes Reorganization
CONSTRU-VAG S.R.L.: Court Rules for Liquidation
CRISOLAC S.R.L.: Liquidating Assets to Pay Debts
DANIEL A. CIPOLLA: Enters Bankruptcy on Court Orders

GASTRONOMIA LA PLATA: Court Favors Involuntary Bankruptcy Motion
HILANDERIA IBERICO: Seeks Out-of-Court Preventive Agreement
TELEFONIA PUBLICA: Judge Approves Creditor's Bankruptcy Request
SIDERAR: Reveals 3.5% Increase in Sales Volume in 2005


B E R M U D A

LASALLE RE: Responds to LaSalle Cover's 2004 Tender Offer


B O L I V I A

AES COMMUNICATIONS: To Offer Dial-Up Non-Users Refund or Time


B R A Z I L

MRS LOGISTICA: Unveils 5-Yr, BRL2-Bln Investment Program


C A Y M A N   I S L A N D S

BROADWAY PARENT: Final Meeting of Shareholder Scheduled Jan. 30
DQE ENERGY: To Lay Wind Up Accounts Before Jan. 13 Meeting
DQE ENERGY TWO: To Authorize Liquidators to Retain Records
EASTGATE INVESTMENTS: To Present to Members Winding Up Account
GAVIOTA INTERNATIONAL: To Explain Liquidation Process Jan. 16

MUSH LIMITED: To Report on Wind Up Process Jan. 16
PERCON CAPITAL: To Lay Accounts on Liquidation Jan. 13
VIMA COMPANY: Sets Final Meeting for Jan. 16


C O L O M B I A

TELECOM: ETB to Finance Partnership With Own Assets


H O N D U R A S

AIG HONDURAS: Attorney General Wants License Revoked


J A M A I C A

KAISER ALUMINUM: Court Approves Fourth Old Republic Stipulation


M E X I C O

CALPINE CORP: Rapid Ratings Assigns Sub Investment Grade Rating
CALPINE CORP: Can Access Up to $500 Million of DIP Financing
CALPINE CORP: Court OKs Joint Administration of Ch. 11 Cases

     -  -  -  -  -  -  -  -

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

AGUAS PROVINCIALES: Senate Endorses Suez's Stock Transfer
---------------------------------------------------------
A bill authorizing the transfer of shares in Santa Fe water
utility Aguas Provinciales de Santa Fe to new shareholders has
secured the backing of the provincial senate, reports Business
News Americas.

The bill will now move on to the lower chamber and could be
debated and voted upon this week. The bill did not pass through
any congressional committees and was not circulated among
senators beforehand.

French services group Suez, the main shareholder in Aguas
Provinciales, recently signed an agreement to transfer 77.5% of
the stock to Alberdi Aguas, with the proposed operator being the
Spanish company Passavant Espana, a subsidiary of German company
Passavant.

If the deal is approved by the provincial government, the
division of stock in Aguas Provinciales de Santa Fe will be the
following: Alberdi Aguas with 77.5%; Banco Galicia with 12.5%
and the property sharing program (Programa de Propiedad
Participada) would control 10%.

Alberdi Aguas is a unit of Santa Fe-based ceramic tile
manufacturer Ceramica Alberdi.


CASA DAMI: Concludes Reorganization
-----------------------------------
The reorganization of Buenos Aires-based Casa Dami S.A. has
ended. Data revealed by Infobae on its Web site indicated that
the process was concluded after Buenos Aires Court No. 18, with
assistance from Clerk No. 35, homologated the debt agreement
signed between the Company and its creditors.


CONSTRU-VAG S.R.L.: Court Rules for Liquidation
-----------------------------------------------
Buenos Aires' civil and commercial Court No. 20 ordered the
liquidation of Constru-Vag 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 Mr. Juan Carlos Herr, the court-
appointed trustee.

Mr. Herr will verify creditors' proofs of claim until March 24,
2006. The verified claims will serve as basis for the individual
reports to be submitted in court on May 10, 2006. The submission
of the general report follows on June 22, 2006.

Clerk No. 40 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT:  Mr. Juan Carlos Herr, Trustee
          Avda. Cordoba 1351
          Buenos Aires


CRISOLAC S.R.L.: Liquidating Assets to Pay Debts
------------------------------------------------
Buenos Aires-based Crisolac S.R.L. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial Court No. 8 that the Company is bankrupt, reports
Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Ms. Laura Garcia. The trustee will
verify creditors' proofs of claim until April 6, 2006. The
validated claims will be presented in court as individual
reports on May 23, 2006.

Ms. Garcia will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on July 6, 2006.

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

Clerk No. 16 assists the court in the proceedings.

CONTACT:  Ms. Laura Garcia, Trustee
          Simbron 3537
          Buenos Aires


DANIEL A. CIPOLLA: Enters Bankruptcy on Court Orders
----------------------------------------------------
Daniel A. Cipolla S.R.L. is entering bankruptcy protection after
Court No. 1 of Buenos Aires' civil and commercial tribunal, with
the assistance of Clerk No. 2, 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 Ms. Sandra Claudia D
Ambrosio as trustee. Ms. Ambrosio will be verifying creditors'
proofs of claim until the end of the verification phase on March
9, 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. Dates for the submission of the reports
are yet to be disclosed.

CONTACT:  Ms. Sandra Claudia D Ambrosio, Trustee
          Sarmiento 1574
          Buenos Aires


GASTRONOMIA LA PLATA: Court Favors Involuntary Bankruptcy Motion
----------------------------------------------------------------
Court No. 23 of Buenos Aires' civil and commercial tribunal
declared Gastronomia La Plata S.R.L. bankrupt, says La Nacion.
The ruling comes in approval of the petition filed by the
Company's creditor, Mr. Jose Maldonado, for nonpayment of
$26,633.12 in debt.

Trustee Luis Di Cesare will examine and authenticate creditors'
claims until March 14, 2006. This is done to determine the
nature and amount of the Company's debts. Creditors must have
their claims authenticated by the trustee by the said date in
order to qualify for the payments that will be made after the
Company's assets are liquidated.

Clerk No. 45 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

CONTACT:  Gastronomia La Plata S.R.L.
          Av. La Plata 351
          Buenos Aires

          Mr. Luis Di Cesare, Trustee
          Sarmiento 2333
          Buenos Aires


HILANDERIA IBERICO: Seeks Out-of-Court Preventive Agreement
-----------------------------------------------------------
Court No. 18 of Buenos Aires' civil and commercial tribunal is
studying the request for an out-of-court preventive agreement
submitted by local company Hilanderia Iberico Argentina S.A.,
says La Nacion.

The report adds that the Company started reorganization after
the court approved its petition.

The city's Clerk No. 36 assists the court on this case.

CONTACT:  Hilanderia Iberico Argentina S.A.
          Chimborazo 2113
          Buenos Aires


TELEFONIA PUBLICA: Judge Approves Creditor's Bankruptcy Request
---------------------------------------------------------------
Telefonia Publica Latinoamericana S.R.L. was declared bankrupt
after Court No. 23 of Buenos Aires' civil and commercial
tribunal endorsed the petition of Mr. Alejandro Nunez for the
Company's liquidation. Argentine daily La Nacion reports that
Mr. Nunez has claims totaling $13,440 against Telefonia Publica
Latinoamericana S.R.L.

The court assigned Mr. Osvaldo Raimundo to supervise the
liquidation process as trustee. Mr. Raimundo will validate
creditors' proofs of claim until March 20, 2006.

The city's Clerk No. 46 assists the court in resolving this
case.

CONTACT:  Telefonia Publica Latinoamericana S.R.L.
          Av. Eva Peron 1145
          Buenos Aires

          Mr. Osvaldo Raimundo, Trustee
          Rodriguez Pena 797
          Buenos Aires


SIDERAR: Reveals 3.5% Increase in Sales Volume in 2005
------------------------------------------------------
Steel company Siderar reported higher steel sales this year
compared to 2004 due to improvements in the automobile and
electrical appliances sectors, Business News Americas reports,
citing a company executive.

CEO Daniel Novegil revealed Siderar sold an average 133,000t/m
of steel in 2005, 3.9% higher than the 128,000t monthly average
in 2004.

Novegil said Siderar, which is now part of steelmaking group
Ternium, will maintain output expansion plans of US$560 million
through 2008. The official said this year's investment came to
US$120 million out of US$680 million the Company had earmarked
for a four-year period.

Siderar is Argentina's largest steel company and manufactures
coke, pig iron and steel for the production of hot, cold and
coated sheets, with a turnover of close to US$1.25bn/y.

CONTACT: Siderar S.A.I.C.
         Roberto Philipps
         Responsable Relaciones con el Mercado
         Sebastian Marti (IR)
         Guillermo Etchepareborda (IR)
         Phone: 54 (11) 4018-2581 / 2389 / 2752
         URL: www.siderar.com



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

LASALLE RE: Responds to LaSalle Cover's 2004 Tender Offer
---------------------------------------------------------
LaSalle Re Holdings Limited has responded to the Tender Offer
made on December 23, 2004 by LaSalle Cover Company, LLC to
purchase up to 1,500,000 Series A Preferred Shares, par value
$1.00 per share of LaSalle Re Holdings Limited at a purchase
price of $1.00 per share.

LaSalle Re Holdings Limited is subject to winding-up
(liquidation) proceedings in the Supreme Court of Bermuda in
which joint provisional liquidators have been appointed.

Accordingly, the Company is acting by, and under the control of,
its joint provisional liquidators, Michael Morrison, a managing
director of KPMG Financial Advisory Services Ltd in Bermuda, and
John Wardrop, a partner of KPMG LLP in England.

The Joint Provisional Liquidators, on behalf of LaSalle Re
Holdings Limited, made their response to LaSalle Cover Company,
LLC as follows:

"The Joint Provisional Liquidators, on behalf of the Company,
are unable to take a position with respect to the tender offer
by the Offeror." The Joint Provisional Liquidators are unable to
take a position regarding the Tender Offer for the following
reasons:

The specific powers of the Joint Provisional Liquidators are set
forth in an order of the Bermuda Court dated November 19, 2004.
The Joint Provisional Liquidators are charged with ascertaining,
collecting, and maintaining the assets of the Company. The Joint
Provisional Liquidators are not charged under the November Order
or otherwise under Bermuda Law with taking a position on any
given third party tender offer, by the Offeror or otherwise, for
equity securities issued by the Company.

In addition, the Company does not possess sufficient assets for
the Joint Provisional Liquidators to fund an adequate
investigation of the financial underpinnings of, or rationale
for, the Offer.

Given those constraints, although the Joint Provisional
Liquidators have no information to disagree with the statement
in the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2003 that "it is unlikely that any of the holders
of (Shares) will receive any return on their investment in the
near term, if at all," the Joint Provisional Liquidators have
not conducted an analysis to determine if that statement remains
accurate.



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

AES COMMUNICATIONS: To Offer Dial-Up Non-Users Refund or Time
-------------------------------------------------------------
Telecoms operator AES Communications (AXS) said it will
compensate dial-up Internet users who did not use the service
through December 3, reports Business News Americas.

The Company is offering two options: refund money paid by dial-
up users or compensate them by doubling the number of minutes
they receive at no cost. So far, 2% of AXS dial-up users have
requested their money be returned, AXS spokesperson Maria
Fernanda Benitez said Wednesday.

"This measure was taken as part of our policy of institutional
responsibility after Comteco blocked our dial-up Internet access
lines, which saturated our service and prevented us from
providing the quality of service we're committed to," said
Benitez.

In mid-October, telecoms regulator Sittel placed AXS under
government intervention to ensure continuity of service. The
intervention was supposed to run for 90 days.

Recently, however, Sittel Director Jose Morales suspended the
measure after government-appointed receiver Federico Yanez
presented AXS with a plan to normalize its economic situation.

In spite of the new financial plan, the Bolivian government has
not extended the January 11 deadline for AXS's liquidation.

Sittel also ordered AXS to pay a 1.3mn-boliviano (US$163,000)
fine for its repeated refusal to pay interconnection fees to
Cochabamba-based local telephony cooperative Comteco.

Additionally, Sittel authorized Comteco to suspend AXS's
interconnection access.



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

MRS LOGISTICA: Unveils 5-Yr, BRL2-Bln Investment Program
--------------------------------------------------------
Brazilian logistics company MRS Logistica has unveiled a five-
year capital investment program estimated at approximately BRL2
billion (approximately US$890 million).

The five-year investment program includes permanent way
expansion, track reconfigurations, signaling improvements, and
additional rolling stock acquisitions and upgrades.

The project is intended to increase the capacity of the
Company's network while also improving its efficiency,
productivity, and safety.

The expansion is expected to increase MRS' freight handling
capacity from around 100 million tons p.a. at present to up to
160-180 million tons by 2009.

MRS intends to finance its expansion program with a combination
of internal cash generation and new debt, including proposed
financing from International Finance Corporation ("IFC").

The IFC is considering a US$100-million corporate loan package
to support MRS' capital investment program comprised of an IFC
"A" Loan of US$50 million for the Corporation's own account and
a syndicated IFC "B" Loan of US$50 million for the account of
participant banks.

MRS is headquartered in Rio de Janeiro, Brazil, with its
principal operational offices located in Juiz de Fora in the
State of Minas Gerais. It operates a 1,674 km freight rail
network connecting Brazil's three largest industrial regions --
Sao Paulo, Minas Gerais, and Rio de Janeiro -- under a 30-year
concession granted by the Brazilian federal government in 1996.



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

BROADWAY PARENT: Final Meeting of Shareholder Scheduled Jan. 30
---------------------------------------------------------------
                    BROADWAY PARENT INC
                (In Voluntary Liquidation)
             The Companies Law (2004 Revision)

Pursuant to Section 145 of the Companies Law (2004 Revision),
the extraordinary final meeting of the shareholder of this
Company will be held at the offices of HSBC Financial Services
(Cayman) Limited, P.O. Box 1109, George Town, Grand Cayman,
Cayman Islands, on 30th January 2006 at 10:00 am.

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 the final winding up on 30th January 2006.

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:  CEREITA LAWRENCE and SCOTT AITKEN
          Joint Voluntary Liquidators
          Contact for enquiries: Cereita Lawrence
          Telephone: (345) 949-7755
          Facsimile: (345) 949-7634
          P.O. Box 1109GT, Grand Cayman


DQE ENERGY: To Lay Wind Up Accounts Before Jan. 13 Meeting
----------------------------------------------------------
                     DQE ENERGY LIMITED
                       (The "Company")
                (In Voluntary Liquidation)
              The Companies Law (As Amended)

Pursuant to Section 145 of the Companies Law (as amended), the
final meeting of the shareholders of the Company will be held at
the registered office of the Company on 13th January 2006 at
10:00 am.

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 13th January 2006.

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:  JOHN CULLINANE and DERRIE BOGGESS
          Joint Voluntary Liquidators
          c/o Walkers SPV Limited
          Walker House, P.O. Box 908
          George Town, Grand Cayman


DQE ENERGY TWO: To Authorize Liquidators to Retain Records
----------------------------------------------------------
                   DQE ENERGY TWO LIMITED
                       (The "Company")
                  (In Voluntary Liquidation)
                The Companies Law (As Amended)

Pursuant to Section 145 of the Companies Law (as amended), the
final meeting of the shareholders of the Company will be held at
the registered office of the Company on 13th January 2006 at
11:00 am.

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 13th January 2006.

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:  JOHN CULLINANE and DERRIE BOGGESS
          Joint Voluntary Liquidators
          c/o Walkers SPV Limited
          Walker House, P.O. Box 908
          George Town, Grand Cayman


EASTGATE INVESTMENTS: To Present to Members Winding Up Account
-------------------------------------------------------------
                 EASTGATE INVESTMENTS LTD.
                (In Voluntary Liquidation)
                      ("The Company")
            The Companies Law (2004 Revision)
                        Section 145

NOTICE IS HEREBY GIVEN pursuant to Section 145 of the Companies
Law (2004 Revision) that the final meeting of the abovenamed
Company will be held at Citco Trustees (Cayman) Limited,
Windward One, Regatta Office Park, West Bay Road, Grand Cayman,
Cayman Islands, on the 16th January 2006, for the purpose of
presenting to the members an account of the winding up of the
Company and giving an explanation thereof.

CONTACT:  CDL COMPANY LTD.
          Voluntary Liquidator
          P.O. Box 31106SMB, Grand Cayman


GAVIOTA INTERNATIONAL: To Explain Liquidation Process Jan. 16
-------------------------------------------------------------
                   Gaviota International Ltd.
                   (In Voluntary Liquidation)
                The Companies Law (2004 Revision)
                          Section 145

NOTICE IS HEREBY GIVEN pursuant to Section 145 of the Companies
Law (2004 Revision) that the final meeting of Gaviota
International Ltd. will be held at Citco Trustees (Cayman)
Limited, Windward One, Regatta Office Park, West Bay Road, Grand
Cayman, Cayman Islands, on January 16, 2006, for the purpose of
presenting to the members an account of the winding up of the
Company and giving an explanation thereof.

CONTACT:  CDL Company Ltd., Voluntary Liquidator
          P.O. Box 31106SMB, Grand Cayman


MUSH LIMITED: To Report on Wind Up Process Jan. 16
--------------------------------------------------
                           Mush Limited
                    (In Voluntary Liquidation)
                 The Companies Law (2004 Revision)
                           Section 145

NOTICE IS HEREBY GIVEN pursuant to Section 145 of the Companies
Law (2004 Revision) that the final meeting of Mush Limited will
be held at Citco Trustees (Cayman) Limited, Regatta Office Park,
West Bay Road, Windward One, Grand Cayman, Cayman Islands, on
January 16, 2006, for the purpose of presenting to the members
an account of the winding up of the Company and giving an
explanation thereof.

CONTACT:  CDL Company Ltd., Voluntary Liquidator
          P.O. Box 31106SMB, Grand Cayman


PERCON CAPITAL: To Lay Accounts on Liquidation Jan. 13
------------------------------------------------------
               Percon Capital International Limited
                    (In Voluntary Liquidation)
                  The Companies Law (As Amended)

Pursuant to Section 145 of the Companies Law (as amended), the
final meeting of the shareholders of the Company will be held at
the registered office of the Company on January 13, 2006 at 9:30
a.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,
as at final winding up on January 13, 2006.

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:  John Cullinane and Derrie Boggess
          Joint Voluntary Liquidators
          c/o Walkers SPV Limited
          Walker House, P.O. Box 908
          George Town, Grand Cayman


VIMA COMPANY: Sets Final Meeting for Jan. 16
--------------------------------------------
                          Vima Company
                   (In Voluntary Liquidation)
                The Companies Law (2004 Revision)
                          Section 145

NOTICE IS HEREBY GIVEN pursuant to Section 145 of the Companies
Law (2004 Revision) that the final meeting of Vima Company will
be held at Citco Trustees (Cayman) Limited, Windward One,
Regatta Office Park, West Bay Road, Grand Cayman, Cayman
Islands, on January 16, 2006, for the purpose of presenting to
the members an account of the winding up of the Company and
giving an explanation thereof.

CONTACT:  CDL Company Ltd., Voluntary Liquidator
          P.O. Box 31106SMB, Grand Cayman
          Buenos Aires



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

TELECOM: ETB to Finance Partnership With Own Assets
---------------------------------------------------
Colombian municipal telco Empresa de Telecomunicaciones de
Bogota (ETB) is confident its currently held assets will be
enough to finance a possible strategic partnership with state-
run fixed line operator Colombia Telecomunicaciones (Telecom),
Business News Americas reports, citing a highly-placed source
within ETB.

"[ETB] would not have to take out any kind of international
loan, it wouldn't have to obtain any type of credit, it wouldn't
have to get any external financing" in the event that it wins
Telecom's bidding process aimed at finding a new strategic
partner, the source said.

Already, ETB has complied with the two requirements to
participate in the bidding: sign a confidentiality agreement and
purchase the right to access confidential Telecom information in
the Company's data room. The cost for participating in the
process is COP40 million (US$17,500).

The Colombian government had agreed earlier this year to grant
Telecom's control to Telmex, owned by Latin America's wealthiest
man, Carlos Slim. Telmex had agreed to invest US$350 million in
the state-run company for a stake of 50% plus one share and also
assume pension and other liabilities worth US$3.3 billion from
Telecomunicaciones' liquidated predecessor.

But the Colombian comptroller's office opposed the agreement,
prompting the government to open the opportunity to other
possible bidders, such as Telefonica, ETB and EPM.



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

AIG HONDURAS: Attorney General Wants License Revoked
----------------------------------------------------
The Honduran attorney general has asked the financial system
regulator, CNBS, to revoke the license of US insurance giant
AIG's (NYSE: AIG) local unit.

According to Business News Americas, the request follows the
local AIG unit's alleged refusal to pay a US$10-million
guarantee when airport concessionaire Interairports failed to
carry out a US$125-million investment plan to modernize four
airports.

In September, local consortium Aeropuertos de Honduras acquired
Interairports' 90% stake in the concession to operate the four
airports.

The CNBS is expected to make a decision on the matter soon.



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

KAISER ALUMINUM: Court Approves Fourth Old Republic Stipulation
---------------------------------------------------------------
As previously reported in the Troubled Company Reporter on
December 2, 2005, Old Republic Insurance Company has issued new
workers' compensation, automobile liability and general
liability insurance coverage to Kaiser Aluminum Corporation and
its debtor-affiliates, which will be effective until October 14,
2006, and has essentially the same terms and conditions as the
policies Old Republic issued through October 2005.

Old Republic did not require that any additional collateral be
posted in connection with the issuance of the New Policies but
required the Debtors to enter into another stipulation.

The principal terms of the parties' Fourth Stipulation are:

  (a) Old Republic will be entitled to an unliquidated
      administrative claim against the Debtors -- other than
      Debtors Alpart Jamaica, Inc., Kaiser Jamaica Corporation,
      Kaiser Alumina Australia Corporation, Kaiser Finance
      Corporation and Kaiser Bauxite Company -- on account of
      the possibility that the Debtors fail to make:

      -- premium payments or pay any other amounts due with
         respect to the Policies;

      -- payments within the deductible layer of the Policies
         with respect to claims covered by the Policies; or

      -- payments to the third-party administrator that is
         administering the covered claims;

  (b) The administrative claims will (i) survive confirmation of
      the applicable Debtors' plan or plans of reorganization,
      (ii) not be liquidated or adjudicated by the U.S.
      Bankruptcy Court for the District of Delaware, and
      (iii) not be payable upon the effective date of the plan,
      unless the confirmed plan or plans for the applicable
      Debtors provides for a complete liquidation of the
      Debtors, in which event Old Republic's administrative
      claim against the applicable Debtors is to be estimated
      or adjudicated by the Court, as appropriate, and paid when
      allowed by the Court.  In addition, in the event these
      cases are converted to Chapter 7 cases, Old Republic's
      administrative claim against the applicable Debtors is
      to be estimated or adjudicated by the Court, as
      appropriate, and paid when allowed by the Court;

  (c) To the extent that Old Republic draws down on the
      $9,644,219 Amended Letter of Credit pursuant to the terms
      of the parties' Program Agreement, the Debtors will not
      seek before October 14, 2009, to exercise their rights
      under the Program Agreement, if any, to recover from Old
      Republic any portion of the draws on the Amended Letter of
      Credit, unless otherwise agreed to by the parties;

  (d) If the Debtors do not make all required premium payments
      or do not make all required deductible payments on account
      of the claims covered by the Policies or fail to pay all
      amounts owed to the TPA, Old Republic will be entitled,
      but only after providing the Debtors, the Creditors'
      Committee, the Asbestos Committee, the Retirees'
      Committee, the Asbestos Representative and the Silica
      Representative with no less than 20 business days' prior
      written notice, to exercise its state law rights to cancel
      the new policies; and

  (e) The terms of the Fourth Stipulation will not prejudice any
      rights of Old Republic to pursue other claims that might
      arise under various workers' compensation, excess workers'
      compensation, general liability and automobile insurance
      policies that were issued prior to the parties' entry into
      the Program Agreement against any of the Debtors other
      than Kaiser Bauxite, Kaiser Jamaica, Alpart Jamaica,
      Kaiser Finance and Kaiser Australia.  Additionally, the
      terms of the Fourth Stipulation will not prejudice any
      rights of Old Republic to draw upon the Amended Letter of
      Credit.

The Court approved the Fourth Stipulation.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading  
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 85; Bankruptcy Creditors'
Service, Inc., 215/945-7000)



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

CALPINE CORP: Rapid Ratings Assigns Sub Investment Grade Rating
---------------------------------------------------------------
Calpine, the power company, has been rated by global rating
agency Rapid Ratings as E1 (19). Rapid Ratings said the rating
is sub investment grade and infers high risk, unlikely to
improve with better market conditions, and assets of
exceptionally poor quality. The rating is down one notch from
the previous rating of D4 (20).

Last week, Calpine, which has 3,000 staff and runs power plants
in the US, Canada and Mexico, filed for Chapter 11 bankruptcy
protection, one of the ten biggest bankruptcy filings in US
history.

The Company filed bankruptcy papers in the Southern District of
New York, listing debts of more than US$22 billion and assets of
US$26.6 billion. A number of its subsidiaries have also filed
for bankruptcy protection.

Rapid Ratings has rated the Company in the high risk "D" and "E"
categories since 2002. Rapid Ratings has not rated Calpine as
investment grade - B3 (65) or above - since 1998 when it was
rated at B3 (67). From 1999 to 2001, the Company was rated at
borderline investment grade.

For the last four quarters, Calpine has reported net income
losses of between US$150 million and US$300 million, despite
seeing its revenues grow from US$2.33 billion, for the quarter
ending 31 December 2004, to US$3.23 billion, for the quarter
ending 30 September 2005.

For the last financial year, Calpine had revenues of US$9.22
billion, but made a net loss of US$242 million. On the balance
sheet, its US$22 billion worth of debt includes more than US$11
billion in long-term debts.


CALPINE CORP: Can Access Up to $500 Million of DIP Financing
------------------------------------------------------------
Calpine Corporation (OTC: CPNLQ) received approval of first day
motions from the U.S. Bankruptcy Court for the Southern District
of New York.

During a hearing held on Dec. 21, 2005, before the Honorable
Burton R. Lifland, Calpine submitted a number of motions
requesting approvals and received, among other things:

    * interim authorization to continue to perform under power
      trading contracts and

    * the immediate use of $500 million of its $2 billion
      debtor-in-possession financing facility.

The company also received authorization to continue paying
employee wages and salaries and providing benefits.

Robert P. May, Calpine's Chief Executive Officer, stated, "We
are very pleased with the Court's prompt approval of these first
day motions, which will help Calpine continue its normal
business operations without interruption.  In particular, the
Court's authorization to continue to perform under existing and
new power and gas trading contracts and pledge collateral in
support of transactions should provide additional assurance that
Calpine power plants will continue to provide reliable supplies
of electric power to the markets that depend on us."

                     DIP Financing

Calpine received interim Court approval for the immediate use of
up to $500 million of its $2 billion DIP financing facility.  
The company has received commitments for the DIP facility from
Deutsche Bank and Credit Suisse First Boston.  The Court has
scheduled a hearing for Jan. 25, 2006, to consider final
approval of the entire $2 billion DIP financing facility.

"The DIP financing provides us with the much needed liquidity
and flexibility to run our business, and should give assurance
to our natural gas suppliers, gas transportation companies, and
other vendors and suppliers that they will be paid going forward
on a current basis," said Mr. May.  "In turn, our customers can
continue to rely on our power plants for the electricity and
other energy services they depend on Calpine to provide."

Calpine also received authorization from the Court to pay pre-
petition and post-petition employee wages and salaries, and
provide benefits, including healthcare, disability, life
insurance and certain vacation benefits, during its
restructuring under Chapter 11.

Headquartered in San Jose, California, Calpine Corporation --
http://www.calpine.com/-- supplies customers and communities  
with electricity from clean, efficient, natural gas-fired and
geothermal power plants.  Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states and in three
Canadian provinces.  Its customized products and services
include wholesale and retail electricity, gas turbine components
and services, energy management and a wide range of power plant
engineering, construction and maintenance, and operational
services.  Calpine was founded in 1984.

The Debtor and its affiliates filed for chapter 11 protection on
Dec. 20, 2005 (Bankr. S.D.N.Y. Case No. 05-60200).   Richard M.
Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and
Robert G. Burns, Esq., at Kirkland & Ellis LLP represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed $26,628,755,663
in total assets and $22,535,577,121 in total debts.
(TROUBLED COMPANY REPORTER, Friday, Dec. 23, 2005, Vol. 9, No.
304)


CALPINE CORP: Court OKs Joint Administration of Ch. 11 Cases
------------------------------------------------------------          
Rule 1015(b) of the Federal Rules of Bankruptcy Procedure
provides, in relevant part, that "[i]f two or more petitions are
pending in the same court by or against a debtor and an  
affiliate, the court may order joint administration of the
estates."

Calpine Corporation and its 77 debtor-affiliates are
"affiliates" as that term is defined under Section 101(2) of the
Bankruptcy Code, Eric N. Pryor, the Company's executive vice
president, interim and deputy chief financial officer and
corporate risk officer, tells the U.S. Bankruptcy Court for the
Southern District of New York.

Many of the motions, hearings and orders that will arise in
Calpine's Chapter 11 cases will jointly affect each and every
Debtor.  If their cases are jointly administered, Calpine
Corporation and its debtor-affiliates will be able to reduce
fees and costs resulting from the administration of their cases
and ease the onerous administrative burden of having to file
multiple and duplicative documents.

Although the Debtors operate together, on an integrated basis,
the assets and liabilities of each Debtor are separately
maintained.  To the extent specific information is needed as to
a particular Debtor entity, Mr. Pryor says, the Debtors are able
to access this information and reassemble it as may be required.

The Debtors will continue to operate as separate and distinct
legal entities, and propose to continue to maintain their books
and records consistent with their prepetition practices.

Joint administration, Mr. Pryor asserts, will avoid duplicative
notices, applications, and orders, thereby saving the Debtors
considerable time and expense.  The rights of creditors will not
be adversely affected because the Debtors seek only
administrative, and not substantive, consolidation of their
estates.  The rights of all creditors will be enhanced by the
reduced costs that will result from the joint administration of
Calpine's chapter 11 cases.  The Court also will be relieved of
the burden of entering duplicative orders and maintaining
duplicative files.  Supervision of the administrative aspects of
the Debtors' chapter 11 cases by the United States Trustee for
the Southern District of New York will be simplified.

The Debtors will consult with the U.S. Trustee for authority to
file the monthly operating reports required by the U.S.
Trustee's Operating Guidelines on a consolidated basis.  The
Debtors believe that consolidated reports would further
administrative economy and efficiency without prejudice to any
party-in-interest and that those reports would accurately
reflect the Debtors' consolidated business operations and
financial affairs.

Accordingly, the Court orders that the Debtors' chapter 11 cases
will be consolidated for procedural purposes only and will be
administered jointly under Case No. 05-60200.

The Honorable Burton R. Lifland of the Bankruptcy Court for the
Southern District of New York rules that all pleadings and
papers filed in the Debtors' cases will be captioned:

   UNITED STATES BANKRUPTCY COURT
   SOUTHERN DISTRICT OF NEW YORK
   _______________________________
                                  )
   In re:                         )
                                  ) Chapter 11
   Calpine Corporation., et al.,  )
                                  ) Case No. 05-60200 (BRL)
                  Debtors.        ) Jointly Administered
   _______________________________)

Headquartered in San Jose, California, Calpine Corporation --
http://www.calpine.com/-- supplies customers and communities  
with electricity from clean, efficient, natural gas-fired and
geothermal power plants.  Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states and in three
Canadian provinces.  Its customized products and services
include wholesale and retail electricity, gas turbine components
and services, energy management and a wide range of power plant
engineering, construction and maintenance and operational  
services.  The Company filed for chapter 11 protection on Dec.
20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M.
Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and
Robert G. Burns, Esq., at Kirkland & Ellis LLP, represent the
Debtors in their restructuring efforts.  As of Dec. 19, 2005,
the Debtors listed $26,628,755,663 in total assets and
$22,535,577,121 in total liabilities. (Calpine Bankruptcy News,
Issue No. 1; Bankruptcy Creditors' Service, Inc., 215/945-7000)




                            ***********


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

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