TCRLA_Public/060117.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, January 17, 2006, Vol. 7, Issue 12

                            Headlines


A R G E N T I N A

ROBERTO PRZYSIEZNY: Enters Bankruptcy on Court Orders
SANCOR: Agrees to Freeze Dairy Prices For Now
TRANSPORTADORA DE GAS: Board Accepts Resignation of 2 Members


B O L I V I A

BOLIVIA: Morales Unwilling to Accept IMF Economic Policies


B R A Z I L

CEMIG: Shares to be Traded Ex-dividend January 17, 2006
KLABIN: Begins Accepting Applications for 2006 Trainee Program
USIMINAS: Wants 7.8Mt Sales for 2006
VARIG S.A.: Brazilian Court Approves Restructuring Plan
VARIG S.A.: Deposits $6.7 Million as Payment to Aircraft Lessors

VARIG S.A.: Nelson Tanure Withdraws Takeover Proposal


C A Y M A N   I S L A N D S

BALESTRA LIMITED: Shareholders Resolve to Liquidate
DRAYTON LTD.: To Wind Up Voluntarily
FEILUNG COMPANY: Appoints Buchanan Limited as Liquidator
GUIAGUVIC INVESTMENTS: Enters Voluntary Liquidation
NICOS ASSET: To be Wound Up Voluntarily


C H I L E

CODELCO: Goldman Sachs Values Company at Up to US$27.5 Billion


M E X I C O

AHMSA: Completes Maintenance Work at Leading Steel Plant
AHMSA: Liquid Steel Production Rises 7.7% in 2005
BALLY TOTAL: Advisor Urges Shareholders to Reject Proposals
LUZ Y FUERZA: Electric Power Theft Results to US$114 Mil Loss
VITRO: Sales Increases to $2.4B


P E R U

VOLCAN: Yauli Miners Demand Better Working Conditions


V E N E Z U E L A

CADAFE: Investing US$1.15 Billion to Add 1,460MW Capacity
CANTV: $45.5 Million Back Taxes Result to Lower Stock Price
EDC: Applies Contingency Measure to Counter Bridge Collapse
PDVSA: Citgo to Deliver Heating Oil at 40% Discount to Maine
VENEZUELA: Proposed Natural Gas Pipeline Will Cost $20 Billion

     -  -  -  -  -  -  -  -

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

ROBERTO PRZYSIEZNY: Enters Bankruptcy on Court Orders
-----------------------------------------------------
Roberto Przysiezny y Compania S.R.L. entered bankruptcy
protection after Rio Cuarto's civil and commercial court ordered
the Company's liquidation. The order effectively transfers
control of the Company's assets to a court-appointed trustee who
will supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Guillermo Carlos
Albarracin as trustee. Mr. Albarracin will be verifying
creditors' proofs of claim until the end of the verification
phase on March 31, 2006.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on May 16, 2006 followed by the general report, which is due on
June 29, 2006.

CONTACT:  Roberto Przysiezny y Compania S.R.L.
          Avda. Sabattini 2441
          Rio Cuarto (Cordoba)

          Mr. Guillermo Carlos Albarracin, Trustee
          Buenos Aires 208
          Rio Cuarto (Cordoba)


SANCOR: Agrees to Freeze Dairy Prices For Now
---------------------------------------------
Dow Jones reports that Argentina's dairy producers -- La
Serenisma SA, a unit of Mastellone Hermanos SA and one of
Argentina's leading dairy brands, and Sancor, a cooperative
representing 2,100 farmers accounting for 15% of the country's
dairy production, have accepted the government's demands to
freeze prices for at least two months and possibly for the rest
of 2006.

Sancor President Oscar Carreras told the press that his company
agreed in principle to a full-year freeze..."in so far and as
much as a variable doesn't appear" that requires it to raise
prices.

La Serenisma President Pascula Mastellone told reporters in a
press conference that extending the freezing of prices depends
on various factors, including labor costs, Reuters reports.  Mr.
Mastelione also said that the government had made commitments
not to introduce certain increases into the factors of
production.

Among the products that won't increase prices this year are
milk, various cheeses and powdered milk.


TRANSPORTADORA DE GAS: Board Accepts Resignation of 2 Members
-------------------------------------------------------------
The Board of Directors of Transportadora de Gas del Sur has
accepted the resignation of Rafael J. G. Fernandez Morande as
President and Cesar Dias Ramos as Regular Director.

The board accepted the resignation in the Board of Directors'
meeting held on January 12, 2006. Jorge Casagrande was appointed
President in place of Morande while Esteban Diez Pena and Luis
Sas, both former Alternate Directors, were included as Regular
Directors.

CONTACT: Transportadora de Gas del Sur S.A.
         Don Bosco 3672, 5th Floor
         1206 Capital Federal
         Buenos Aires,
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         E-mail: eduardo_pawluszek@tgs.com.ar
         Web Site: http://www.tgs.com.ar/



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

BOLIVIA: Morales Unwilling to Accept IMF Economic Policies
----------------------------------------------------------
Dow Jones reports that despite The Republic of Bolivia's new
President Evo Morales' willingness to talk with the
International Monetary Fund, he's not willing to accept economic
policy impositions from the agency.


The President talked to the press Friday after he concluded his
10-day round-the-world tour which included Europe, China, South
Africa and Brazil.  He last met with Brazilian President Luiz
Inacio Lula da Silva.

"We have a culture of dialogue, but we're done with this
practice of importing programs, projects, and plans for our
country," Mr. Morales said.  "We won't import programs or plans
that come from abroad; we want to support programs that come
from the people."

                 IMF Debt-Forgiveness Program

In December 2005, Bolivia was among the 19 nations which
received a debt relief plan from the IMF.  Bolivia has
approximately $222 million in debt outstanding with the fund, or
about 4.5% of its total foreign debt.

Bolivia's neighbors, Brazil and Argentina, paid off last year
$15.5 billion and $9.6 billion, respectively, in outstanding
debt to the IMF.

                        *    *    *

On Dec. 21, 2005, Fitch has a speculative B- rating on Bolivia
with a negative outlook.

According to the ratings firm, key factors to watch for include
the interpretation of the May 2005 hydrocarbons law by the
Morales' government, whether the new administration will honor
bilateral investment protection agreements and whether Bolivia
will maintain cordial relations with the United States, which
has been trying to eradicate coca growing in its fight against
drug trafficking.

"A loss of international support or a further deterioration of
the social and political environment that affects debt service
capacity or willingness could trigger a downgrade," warned
Fitch.

"Conversely, more clarity on debt forgiveness and/or an easing
of social tensions, which results in improved governability
could lead to a revision of the Outlook back to Stable," Fitch
added.



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B R A Z I L
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CEMIG: Shares to be Traded Ex-dividend January 17, 2006
-------------------------------------------------------
The Companhia Energetica De Minas Gerais - Cemig's informed that
it will trade shares ex-dividend on January 17, 2006. The
Company wrote:

We hereby advise our stockholders that the Extraordinary General
Meetings of Stockholders held on December 23, 2005 at 10:00 a.m.
and at 5:00 p.m., suspended and rescheduled for January 5, 2006,
by proposal of the representative of the stockholder Estado de
Minas Gerais, with the agreement of the remaining stockholders,
had its works once more suspended due to the need to analyze
suggestions presented by minority stockholders. We inform that
the works of the aforementioned Meetings will be resumed on
January 12, 2006, at 2:00 p.m. and at 2:30 p.m. respectively at
the same place.

The decision of the Board of Directors of December 7, 2005, to
distribute extraordinary dividends in the amount of
BRL897,000,000.00, corresponding to BRL5.534143888 per thousand
shares, is unchanged.

Stockholders whose names are in the company's Nominal Share
Register on January 16, 2006 will have the right to the said
benefit, for the purposes referred to in Article 205 of Law
6404/76.

The shares will be traded ex-dividend on January 17, 2006.

We would like to make clear that the actual payment will take
place on January 27, 2006 and continues to be conditional upon
homologation by the Extraordinary General Meeting of
Stockholders, to be held on January 12, 2006 at 2:00 a.m., of
the Fourth Amendment to the Contract for Assignment of the
Outstanding Balance on the CRC (Results Compensation Account)
between Cemig and the State of Minas Gerais, as well as to the
agreement of the State of Minas Gerais to the assignment, by
Cemig, to the Receivables Investment Fund (FIDC) being
structured by Banco ITAU BBA (the Fund), of the credits made up
of the installments owed by the State of Minas Gerais under the
CRC Contract.

The Extraordinary General Meeting to be held on January 12, 2006
at 2:30 p.m. will decide on proposed changes to the company's
Bylaws.

We remind stockholders of the importance of updating their
registration information. This can be done by visiting any
branch of Banco Itau S.A. (the institution which administers
Cemig's system of registered and nominal shares), taking their
personal documents with them.

On January 5, 2006 the Board of Directors of Cemig, at its
meeting begun at 2.30 p.m. on January 4, 2006, and resumed at
2:30 p.m. on January 5, 2006, authorized the binding offer for
acquisition of stockholdings in other companies.

Cemig suspended its Extraordinary General Meetings of
Stockholders held on December 23, 2005 at 10:00 a.m. and at 5:00
p.m., suspended and rescheduled for January 5, 2006, by proposal
of the representative of the stockholder Estado de Minas Gerais,
with the agreement of the remaining stockholders, due to the
need to analyze suggestions presented by minority stockholders

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


KLABIN: Begins Accepting Applications for 2006 Trainee Program
--------------------------------------------------------------
Klabin, the largest paper producer and exporter in Brazil, has
just begun accepting applications for its Trainee Program 2006.
The main objective of the program, scheduled to start in March
of 2006, is to identify young talents and offer concrete
opportunities for development and a career within the company.

In order to apply, those interested must meet basic
requirements, such as:

- completion of a degree in Chemical, Electrical, Mechanical,
Production, Forestry or Safety Engineering, Business
Administration, Economics, Accounting or Chemistry between July
of 2002 and December of 2005

- be available to travel and/or move to other states

- be fluent in English

- have good computer skills

The company is looking for young professionals who want to
learn, are dynamic and have an entrepreneurial spirit, with a
vision for the future and a focus on results.

Trainees will be hired as employees, and on entering Klabin will
participate in a development program lasting approximately one
year. Part of this period will include working in the various
areas of the company in order to acquire an overall view of its
business, and the other part will involve project development,
completing specific objectives and modules, receiving continual
orientation (both technical and behavioral), and working towards
a specialization based on their preferences and on
availabilities within the company.

Applications are to be submitted only via Internet.

CONTACT: Klabin S.A.
         Mr. Ronald Seckelmann
         CFO and IR Director

         Mr. Luiz Marciano Candalaft
         IR Manager
         Phone: (5511) 3046-5847
         E-mail: marciano@klabin.com.br

         Mr. Gustavo Vittorazze Schroden
         IR Analyst
         Phone: (5511) 3046-5934
         E-mail: gvschroden@klabin.com.br

         URL: www.acrossrh.com.br/Klabin


USIMINAS: Wants 7.8Mt Sales for 2006
------------------------------------
Brazilian steelmaker Usiminas aims a 7.8Mt sales in 2006,
Business News Americas reports.

Local brokerage Agora Senior stated in a report based on a
meeting with Usimina's investor relations team that the
production would represent a 6.5% increase from the 2005 sales
expectations, adding that the Company could aim for 30% exports
this year.

Agora Senior emphasized in the report the gradual rebound in
demand for steel products in the Brazilian market following a
stock supply decrease toward the end of 2005.

The brokerage said, "When it comes to steel prices, the
steelmaker [Usiminas] believes in the commodity's gradual
increase, and does not see China as a relevant medium-term
exporter due to the steel industry's consolidation in the
country and Chinese demand for the metal."

Agora Senior has not changed its buy recommendation for
Usiminas' preferred shares and has given a target price of
BRL101.68 (US$45) for the stock.

Usiminas shares were trading at BRL54.49 on Sao Paulo's Bovespa
stock exchange Thursday.

Usiminas is Brazil's second largest steelmaker, with plant in
Ipatinga, Minas Gerais State. Together with flat steelmaking
subsidary Cosipa, Usiminas has installed capacity of 9.5Mt/y.


VARIG S.A.: Brazilian Court Approves Restructuring Plan
-------------------------------------------------------
On Dec. 28, 2005, Judge Luiz Roberto Ayoub, of The Eighth
Corporate Court of the District of the State Capital of Rio de
Janeiro, found that the restructuring plan of VARIG, S.A., Rio
Sul Linhas Aereas S.A., and Nordeste Linhas Aereas S.A. met the
legal requirements under the New Bankruptcy and Restructuring
Law of Brazil.  Thus, Judge Ayoub stamps his seal of approval on
the Plan.

As previously reported, VARIG's creditors have approved the
Recovery Plan by an enormous margin of acceptance, with no
opposition from Classes I and II.  Judge Ayoub said that this is
enough to make the entire process legitimate.

According to Judge Ayoub, VARIG's tax debt with the Municipality
of Rio de Janeiro is the object of a petition to pay in
installments, which is not yet examined by the administrative
authority and, therefore, the Debtors cannot be held responsible
for the public bureaucracy's inertia.

In considering the public interest revealed by the principle of
preservation of the company and considering the absence of a law
governing the payment of tax debts in installments by companies
undergoing judicial recovery, Judge Ayoub found that it would
make no sense to prevent the possibility of the Debtors'
reorganization due to the lack of a certificate of good tax
standing.

A full-text copy of Judge Ayoub's decision is available for free
at: http://bankrupt.com/misc/Dec28BrazilCourtDecision.pdf

                          *     *     *

The creditors will hold a general meeting on January 31, 2006,
to present a detailed proposal for the implementation of the
Recovery Plan.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America.

VARIG's principal business is the transportation of passengers
and cargo by air on domestic routes within Brazil and on
international routes between Brazil and North and South America,
Europe and Asia.  VARIG carries approximately 13 million
passengers annually and employs approximately 11,456 full-time
employees, of which approximately 133 are employed in the United
States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


VARIG S.A.: Deposits $6.7 Million as Payment to Aircraft Lessors
----------------------------------------------------------------
On Dec. 28, 2005, pursuant to a ruling by the Hon. Robert Drain
of the U.S. Bankruptcy Court for the Southern District of New
York, VARIG, S.A., Rio Sul Linhas Aereas S.A., and Nordeste
Linhas Aereas S.A. deposited $6,700,000 as partial payment to
amounts they owed to aircraft lessors in the United States.  The
amount will be divided among 15 lessors.

Agencia Brasil reports that on January 13, 2006, the Foreign
Debtors intend to submit to the U.S. Bankruptcy Court proof of
the payments.

The Foreign Debtors' debt to lessors aggregate $44,000,000.  The
Debtors expect to pay the remaining $19,700,000 by the time of
the next hearing in the U.S. Court.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America.

VARIG's principal business is the transportation of passengers
and cargo by air on domestic routes within Brazil and on
international routes between Brazil and North and South America,
Europe and Asia.  VARIG carries approximately 13 million
passengers annually and employs approximately 11,456 full-time
employees, of which approximately 133 are employed in the United
States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a Chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


VARIG S.A.: Nelson Tanure Withdraws Takeover Proposal
-----------------------------------------------------
Docas Investimentos SA's owner and chairman, Nelson Tanure, will
not push through with his plan to take over VARIG S.A.

Mr. Tanure attributes his decision to withdraw his offer to
negative press, Dow Jones Newswires says.

As previously reported, in December 2005, Mr. Tanure made a
$112,000,000 offer for the control of Fundacao Ruben Berta,
which is VARIG's controlling shareholder.  The deal involved the
purchase of a 25% stake in FRB and a loan of a 42% stake over a
10-year period.

Certain parties expressed concern that Mr. Tanure would take
control of VARIG and not assume its debts. This led to a series
of court actions seeking to block the deal.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America.

VARIG's principal business is the transportation of passengers
and cargo by air on domestic routes within Brazil and on
international routes between Brazil and North and South America,
Europe and Asia. VARIG carries approximately 13 million
passengers annually and employs approximately 11,456 full-time
employees, of which approximately 133 are employed in the United
States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., 215/945-7000)



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

BALESTRA LIMITED: Shareholders Resolve to Liquidate
---------------------------------------------------
                        Balestra Limited
                   (In Voluntary Liquidation)
                The Companies Law (2004 Revision)

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

THAT the Company be voluntarily wound up under the Companies Law
(2004) Revision) and that Buchanan Limited be appointed as
liquidator, and that the liquidator be authorized, if it thinks
fit, to distribute specific assets to members.

Creditors of Balestra Limited, which is being wound up
voluntarily, are required on or before February 9, 2006 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 Company, and
if so required by notice in writing from the liquidator either
by their attorneys-at-law or personally to come in and prove the
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:  Buchanan Limited, Voluntary Liquidator
          Timothy Haddleton
          P.O. Box 1170 GT, Grand Cayman
          Telephone: (345) 949-0355
          Facsimile: (345) 949-0360


DRAYTON LTD.: To Wind Up Voluntarily
------------------------------------
                           Drayton Ltd.
                     (In Voluntary Liquidation)
                  The Companies Law (2004 Revision)

The following special resolution was passed by the shareholders
of Drayton Ltd. at an extraordinary general meeting of the
shareholders held on December 23, 2005:

THAT the Company be voluntarily wound up under the Companies Law
(2004) Revision) and that Buchanan Limited be appointed as
liquidator, and that the liquidator be authorized, if it thinks
fit, to distribute specific assets to members.

Creditors of Drayton Ltd., which is being wound up voluntarily,
are required on or before February 9, 2006 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 Company, and if so
required by notice in writing from the liquidator either by
their attorneys-at-law or personally to come in and prove the
said debts or claims at such time and place as shall be
specified in such notice or, in default thereof, they will be
excluded from the benefit of any distribution made before such
debts are proved.

CONTACT:  Buchanan Limited, Voluntary Liquidator
          Timothy Haddleton
          P.O. Box 1170 GT, Grand Cayman
          Telephone: (345) 949-0355
          Facsimile: (345) 949-0360


FEILUNG COMPANY: Appoints Buchanan Limited as Liquidator
--------------------------------------------------------
                     Feilung Company Limited
                    (In Voluntary Liquidation)
                 The Companies Law (2004 Revision)

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

THAT the Company be voluntarily wound up under the Companies Law
(2004) Revision) and that Buchanan Limited be appointed as
liquidator, and that the liquidator be authorized, if it thinks
fit, to distribute specific assets to members.

Creditors of Feilung Company Limited, which is being wound up
voluntarily, are required on or before February 9, 2006 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 Company, and
if so required by notice in writing from the liquidator either
by their attorneys-at-law or personally to come in and prove the
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:  Buchanan Limited, Voluntary Liquidator
          Timothy Haddleton
          P.O. Box 1170 GT, Grand Cayman
          Telephone: (345) 949-0355
          Facsimile: (345) 949-0360


GUIAGUVIC INVESTMENTS: Enters Voluntary Liquidation
---------------------------------------------------
                    Guiaguvic Investments Ltd.
                    (In Voluntary Liquidation)
                 The Companies Law (2004 Revision)

The following special resolution was passed, by the shareholders
of Guiaguvic Investments Ltd. at an extraordinary general
meeting of the shareholders held on December 23, 2005:

THAT the Company be voluntarily wound up under the Companies Law
(2004) Revision) and that Buchanan Limited be appointed as
liquidator, and that the liquidator be authorized, if it thinks
fit, to distribute specific assets to members.

Creditors of Guiaguvic Investments Ltd., which is being wound up
voluntarily, are required on or before February 9, 2006 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 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:  Buchanan Limited, Voluntary Liquidator
          Timothy Haddleton
          P.O. Box 1170 GT, Grand Cayman
          Telephone: (345) 949-0355
          Facsimile: (345) 949-0360


NICOS ASSET: To be Wound Up Voluntarily
---------------------------------------
                 Nicos Asset Holding Corporation
                   (In Voluntary Liquidation)
                The Companies Law (2004 Revision)

The following special resolution was passed by the shareholder
of Nicos Asset Holding Corporation at an Extraordinary General
Meeting held on December 22, 2005.

THAT the Company be voluntarily wound up and that Kareen Watler
and Jamal Young be and are hereby appointed as liquidators of
the Company for the purpose of winding up the Company.

Creditors of Nicos Asset Holding Corporation are to prove their
debts or claims on or before February 13, 2006 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.

Date of Liquidation: December 22, 2005

CONTACT:  Ms. Kareen Watler and Mr. Jamal Young
          Joint Voluntary Liquidators
          Marguerite Britton
          P.O. Box 1109GT, Grand Cayman
          Cayman Islands
          Telephone: (345) 949-7755
          Facsimile: (345) 949-7634



=========
C H I L E
=========

CODELCO: Goldman Sachs Values Company at Up to US$27.5 Billion
--------------------------------------------------------------
Codelco, Chile's state copper company, is valued between US$24.5
billion to US$27.5 billion by US investment bank Goldman Sachs,
the Business News Americas reports.  Codelco requested for the
valuation to discover the company's growth since 2000.  The
company was worth US$13 billion that time.  The company's goal
was to double the 2000 figure.

Goldman Sachs took into account the company's copper price and
EBITDA, cash costs and investment plan, all reflected in
Codelco's 2005-2010 business plan.

Codelco's projected 2005 and 2006 financial results with
information from interviews with company executives were
included in Goldman's analysis, a statement from Codelco said.

Codelco is the world's largest copper producer, with 2005 output
estimated at 1.7Mt.



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

AHMSA: Completes Maintenance Work at Leading Steel Plant
--------------------------------------------------------
Mexican steelmaker Ahmsa has finished maintenance work at its
leading steel plant, Business News Americas reports.

Maintenance in the plant, which is located in Monclova,
Coahuila, cost about MXN70 million (US$6.6 million).

Ahmsa spokesperson Francisco OrduAņa said that the maintenance
plan included repairing equipment such as reheating ovens, mills
and rollers. He added that this will ensure that Ahmsa reaches
its 2006 production goals. The work also involved reinforcing
environmental controls.

The mill's output reached 2.38Mt of hot-rolled coil, which is a
new annual record in 2005.

Ahmsa is based in Monclova and is Mexico's largest integrated
steelmaker with production of 3Mt of liquid steel a year.


AHMSA: Liquid Steel Production Rises 7.7% in 2005
-------------------------------------------------
Mexican steelmaker Ahmsa saw a 7.7% increase in its liquid steel
output in 2005, Business News Americas reports.

According to Company, production rose to 3.24Mt from the 3.13Mt
in 2004.

The increased liquid steel production, plus better efficiency in
converting this into finished products, boosted the production
of slabs - an intermediate product used in flat steel making -
to 3.1Mt during the year.

Ahmsa churned out 2.85Mt of finished steel products, according
to preliminary calculations. This shows a 267,000t or 10% year-
on-year increase.

The Company said it follows a flexible operational plan,
adjusting production to meet demand. The plan has led the
Company to focus on flat steel products and structural profiles
used in industry and construction last year.

Constant maintenance work on Ahmsa plants and equipment led to
the increase in production volumes. The fact that Ahmsa has its
own sources of raw materials in the form of iron ore and coal
mines helped the Company maintain profitability despite
increased energy and input costs, Company said.

The Company said that sales to both Mexican and international
markets reached 2.9Mt, an 11% growth from 2004's 2.62 Mt.

Ahmsa's third quarter consolidated net profits slid down 30%
from the same quarter in 2004, amounting to MXN890 million
(US$84 million). The Company's Q4 financial results have not yet
been published.

Monclova-based Ahmsa is controlled by the GAN group. It produces
hot and cold-rolled coil and steel plate.


BALLY TOTAL: Advisor Urges Shareholders to Reject Proposals
-----------------------------------------------------------
Bally Total Fitness (NYSE:BFT), the nation's leader in health
and fitness, announced Friday that Institutional Shareholder
Services has recommended that Bally shareholders reject all the
stockholder proposals put forth by Liberation Investment Group.
ISS also rejected Pardus' request for discretionary authority to
vote on the Liberation proposals.

ISS noted in its report, "While we support the context of
providing shareholders with rights to affect change, it is
important to balance this with the need for companies to operate
without constantly 'looking over their shoulder' for daily
approval from shareholders. A well-structured and functioning
board should be able to provide this necessary balance --
keeping management focused on shareholder value, while providing
a buffer against freewheeling attacks that may be made against
management...Therefore, we recommend that shareholders do not
vote on the proposals presented by Liberation."

Commenting on the ISS recommendations, John W. Rogers, Jr., Lead
Director of Bally's Board, said, "We are very pleased that ISS
has asked shareholders not to vote for Liberation's proposals
and rejected Pardus' attempt to gain blanket discretion to vote
on these proposals. Our Board remains confident that Bally's
turnaround is working and that the current management team led
by Paul Toback is responsible for returning the Company to
profitability and setting it on the right path."

ISS also urged shareholders to vote in favor of the Company's
proposed new Omnibus Stock plan, noting that based on ISS
analysis, the total cost of the company's plan is less than half
the allowable cap for the company. The Company was pleased that
ISS rejected Pardus and Liberation's contrary recommendations on
this proposal.

Bally also responded to ISS's recommendation regarding the
election of directors to be voted on at Bally's annual meeting
of shareholders on January 26, 2006. Rogers noted, "Regarding
the election of directors, we urge that shareholders support the
Board's proposal which includes two candidates nominated by
Pardus, along with Eric Langshur, Bally's Head of the Audit
Committee. Eric is the individual who successfully led our
finance team through the arduous financial restatement process
and helped restore integrity to the financial reporting process
at Bally. Mr. Kornstein, Pardus' remaining candidate, in our
view, is too closely aligned with Mr. Pearlman and Liberation."

Bally urges shareholders to vote for the Bally nominees by
signing, dating and returning the WHITE proxy card. Shareholders
with questions or in need of assistance in voting their shares
should contact Bally's proxy solicitor, MacKenzie Partners,
toll-free at 800-322-2885 or collect at 212-929-5500.

Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers in the U.S., with nearly
440 facilities located in 29 states, Mexico, Canada, Korea,
China and the Caribbean under the Bally Total Fitness(R), Crunch
Fitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally
offers a unique platform for distribution of a wide range of
products and services targeted to active, fitness-conscious
adult consumers.

ISS is the world's leading provider of proxy voting and
corporate governance services with over 20 years of experience.
ISS serves more than 1,600 institutional and corporate clients
worldwide with its core business -- analyzing proxies and
issuing informed research and objective vote recommendations for
more than 33,000 companies across 115 markets worldwide.

CONTACT:  Bally Total Fitness
          Investors
          Janine Warell
          Phone: 773-864-6897

          Media
          Matt Messinger
          Phone: 773-864-6850

          URL: www.ballyfitness.com

                     Or

          MacKenzie Partners
          Additional Investor Contacts
          Jeanne Carr
          Phone: 212-929-5916

                     Or
          Dan Burch
          Phone: 212-929-5748

                         *     *     *

Standard & Poor's Rating Services lowered on Feb. 15, 2005, its
ratings on Bally Total Fitness Holding Corporation, including
lowering the corporate credit rating to 'CCC+' from 'B-'.

At the same time, Standard & Poor's changed its outlook on
the ratings to negative from developing.  Total debt outstanding
at Sept. 30, 2004, was $747.7 million.

"The rating actions are based on the potential for further
delays in the filing of financial statements and on related
uncertainties, in light of Bally's Audit Committee's recent
findings," said Standard & Poor's credit analyst Andy Liu.


LUZ Y FUERZA: Electric Power Theft Results to US$114 Mil Loss
-------------------------------------------------------------
Mexican state power company Luz y Fuerza del Centro lost, due to
power theft, approximately 1.22 billion pesos (US$114 million)
in 2005, 27% of its annual sales income in the three largest
municipalities of Edomex state, a company spokesperson told
BNamericas.

The company said that the main areas of electric power theft
are:

   -- Iztapalapa in the Federal District,
   -- Ecatepec in Edomex,
   -- Nezahualcoyotl in Edomex, and
   -- Texcoco in Edomex.

As a precaution, the company representative said that about
100km plastic-coated transmission cables will be replaced by
steel-coated ones to reduce illegal connections and power cuts
in these areas, BNamericas relates.

Luz y Fuerza got about 33 billion pesos in 2005 for general
infrastructure investments.


VITRO: Sales Increases to $2.4B
-------------------------------
Mexican glassmaker Vitro's consolidated sales rose to $2.4
billion, Reuters reports.

The Company said in a preliminary earnings report Friday that
the sales were about 6% higher than that of last year.

Vitro has debt of around $1.5 billion and has suffered since the
mid-1990s from increased competition both in Mexico and abroad.

In August, the Company put its corporate headquarters in
Monterrey up for sale as part of a bid to pay down debt.

Vitro exports flat glass, containers and glassware to more than
70 countries worldwide.



=======
P E R U
=======

VOLCAN: Yauli Miners Demand Better Working Conditions
-----------------------------------------------------
Volcan Compania Minera S.A.'s zinc miners are on strike,
demanding better working conditions, the Diario Correo reported.
The strikers are from the Andaychagua and San Cristobal mines
and Mahr Tanel refinery at the company's Yauli unit near Lima.

Javier Ramos Cabrera, the Federacion de Trabajadores Minero
Metalurgicos de Yauli y Cerro de Pasco's secretary-general, told
the Diario Correo that Volcan failed to fulfill under the
collective bargaining agreement with its labor union.  The union
demands Volcan to respect the workers' positions and not
substitute them with subcontracted workers.

In addition, the union has also rejected Volcan's reduction of
personnel, establishment of shifts longer than 12 hours and
alleged hostility of supervisors, the Diario Correo reported.

The workers intend to end the strike on January 18, but will
continue indefinitely until the union's 13 conditions in its
petition are met, the Diario Correo said.

Last year, the company's miners at its Cerro de Pasco and Yauli
units went on strike demanding for bonuses tied to profits from
the company.

CONTACT:  Volcan Compania Minera S.A.A.
          Av Gregorio Escobedo 710 Jesus Maria
          Lima, Peru
          Phone: (51-1) 219-4000
          Fax: (51-1)261-9716
          E-mail: contact@volcan.com.pe



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

CADAFE: Investing US$1.15 Billion to Add 1,460MW Capacity
---------------------------------------------------------
Cadafe disclosed in a prepared statement that it intends to
invest US$1.15 billion in 12 power generation and transmission
projects this year to improve its capacity by 1,460 megawatts,
Business News Americas reports. At present, Cadafe's total
installed capacity is 3,755 megawatts, with actual generation to
be slightly above 2,000 megawatts, according to figures from
national grid operator Opsis.

The company's investments for 2006 will be funded by the
government's Fondespa and Fonden funds, which gets money from
PDVSA Gas-- the state's oil firm.

Last year, Cadafe's US$1 billion investment was focused on
transmission and distribution due to major power failures
triggered by an 8.6% increase in demand.

Cadafe's 300 megawatts Pedro Camejo plant in Carabobo State is
already in the testing stage.  After a US$107 million revamp,
the plant will have two Siemens 150-megawatt turbines that can
burn either natural gas or liquid fuels, with a slot for a third
engine also ready.

Cadafe also plans to start up the 160 megawatts Ezequiel Zamora
thermal plant in Guarico state, at a cost of US$160mn.  The
plant will be powered by natural gas from the Yucal-Placer
fields operated by PDVSA.

In Falcan State, Cadafe will start operations of the US$300
million 450-megawatt Josefa Camejo plant.  The plant will either
run on natural gas or fuel oil.  It will be connected to the
national grid but its main aim is to reinforce power generation
operations at PDVSA's CRP refining complex.

Venezuelan state electricity firm Cadafe, generates, distributes
and transmits hydro and thermal energy.

Cadafe is Venezuela's largest transmission and distribution
Company with over 15,000 km of lines and more than 100
substations in operation.


CANTV: $45.5 Million Back Taxes Result to Lower Stock Price
-----------------------------------------------------------
CANTV's shares fell 6% on Jan. 12, 2006, after Venezuela's
telecommunications regulators demanded a $45.5 million payment
in back taxes, fines and interest, Reuters reports.  A company
representative said that CANTV has not been notified of the
decision.

Industry analyst Conatel said that CANTV, CANTV NET and MOVILNET
had 25 days to challenge the agency's demand.

In October last year, CANTV was forced to increase its reserves
to $333 million as a result of a ruling from Venezuela's Supreme
Court ordering the company to pay retired workers pension
increases.

American Depositary Shares of CANTV (VNT.N: Quote, Profile,
Research) closed at $14.22 on the New York Stock Exchange,
Reuters reports.

CANTV is a subsidiary of American telecommunication giant,
Verizon Communications.


EDC: Applies Contingency Measure to Counter Bridge Collapse
-----------------------------------------------------------
EDC aka Electricidad de Caracas has implemented a contingency
plan to ensure the operation of its plants and the continued
supply of electricity in all of the areas it services after a
bridge linking Caracas and La Guaira collapsed, BNamericas
reports.

Majority of EDC's thermal power comes from the 1,371-megawatt
Ricardo Zuloaga plan in Vargas state.  EDC generates a 1,800-
megawatt total capacity, BNamericas reports.

The bridge's collapse will force the transport of people and
goods through dangerous secondary routes, BNamericas relates.

EDC's plant is located on one of the secondary roads that leads
to Caracas -- the Carayaca-El Junquito two-lane backtop.

EDC, founded in 1895, serves 1.05 million clients in and around
Caracas.  The fully integrated company is owned by US power
company AES (NYSE: AES).


PDVSA: Citgo to Deliver Heating Oil at 40% Discount to Maine
------------------------------------------------------------
Petroleos de Venezuela's (PDVSA) US refining and marketing
subsidiary Citgo has entered an agreement with authorities in
the state of Maine to deliver discounted fuel to the state,
Business News Americas reports.

Citgo officials signed the agreement on Thursday with Maine
governor John Baldacci, who was accompanied by representatives
from the state's heating oil assistance program.

Under the agreement, Citgo will deliver about 30 million liters
of heating fuel at a 40% discount to low-income residents and
native American communities.

The subsidy in Maine will result to US$5.5 million total savings
to homeless shelters and indigenous nations such as Penobscots,
Passamaquiddy, Micmacs and the Maliseets.

Major US companies that partner Citgo can expect to pay more for
the Venezuelan crude they use as feedstock at some point this
year.

Venezuela's state oil firm PDVSA has reiterated that it will
review some of the crude supply agreements with certain
refineries of the Citgo chain to dismantle a system of discounts
on the price of the crude it supplies.

PDVSA is using more of its own crude for refining at Citgo and
buying less of the more expensive Canadian and Mexican crude to
be used as feedstock in the process.

Citgo also has heating oil assistance programs in certain areas
of Massachussets and New York.

According to Venezuela's government news service ABN on Friday,
the sale of subsidized fuel could be expanded to other states
such as Delaware, Vermont, Connecticut and Pennsylvania.


VENEZUELA: Proposed Natural Gas Pipeline Will Cost $20 Billion
--------------------------------------------------------------
The Venezuelan government Energy Minister Rafael Ramirez
estimates that the proposed 3,100 square mile South American
natural gas pipeline to be built with Brazil and Argentina could
cost up to $20 billion, or double previous estimates, Dow Jones
reports.

The proposed pipeline will run from Caracas to Buenos Aires and
is expected to be completed in seven years, Mr. Ramirez told Dow
Jones.

The project was initiated by President Hugo Chavez to carry
Venezuelan natural gas to South American markets and eventually
tap into supplies in Bolivia, the continent's second-largest
source after Venezuela, in order to make the region self-
sufficient in gas, Dow Jones relates.

Costs and environmental concerns affecting Brazil's Amazon rain
forest were raised against the project's feasibility.

"We are advancing with a lot of political will to make this
project a reality," Mr. Ramirez said after President Chavez met
with Argentine and Brazilian executives.

A meeting in early March will be held among the countries'
ministers before presenting the project to their respective
heads of state.

                        *    *    *

Fitch Ratings upgraded on Nov. 14, 2005, the long-term foreign
currency and long-term local currency ratings of the Bolivarian
Republic of Venezuela to 'BB-' from 'B+'.  At the same time,
Fitch upgraded the country ceiling to 'BB-'. The short-term
foreign currency rating is affirmed at 'B', and the Outlook is
Stable.

"The upgrade reflects significant improvements in external debt
and liquidity ratios because of windfall oil export receipts,
leaving them significantly better than peer 'BB' levels," said
Morgan Harting, Senior Director and lead sovereign Fitch analyst
for Venezuela.



                            ***********


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