TCRLA_Public/060201.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, February 1, 2006, Vol. 7, Issue 23

                            Headlines

A R G E N T I N A

5 DE DICIEMBRE: Authentication of Claims Stops on February 3
BABILONIA S.A.: Creditors' Claims to be Verified until Feb. 3
DIHUEL S.A.: Individual Reports Due February 3
HOSTAL DE ARECO: Trustee to Present General Report on February 3
LOMA NEGRA: Issuing US$100 Million Bond, Loans US$96 Million

PROPLASTIC S.R.L.: Validated Claims to be Presented on Feb. 3
SANATORIO SAN CARLOS: Court Selects Trustee for Reorganization


B E L I Z E

* Belize Produces Electricity with Chalillo Dam


B E R M U D A

NIPPON IRIDIUM: Seeks Liquidation Approval from Court
SEAVI THAILAND: Validation of Creditors' Claims Ends on Feb. 13
SPARX JAPAN: Liquidator to Verify Claims Until February 17
SST AVIATION: Claims Verification Ends February 16
WORLDWIDE AVIATION: Proofs of Claim Due February 21


B R A Z I L

BRASKEM: Announces Conference Calls on February 10
CSN: Merrill Lynch Report Says Company Needs to Buy Slab
CVRD: Optimistic with Mittal's Bid for Arcelor
SADIA: S&P Explains BB Rating's Affirmation
* Brazil Continues Efforts to Sell Aircraft to Venezuela

* Brazil Needs $10 Billion Investment to Meet Ethanol Demand


C A Y M A N   I S L A N D S

CHANDLER INVESTMENT: Submission of Claims Ends on February 24
HOURGLASS FUND: Liquidator Stops Verifying Claims on February 24
MINOT CAPITAL: Creditors Given until Feb. 24 to Submit Claims
RGN LONG/SHORT: Creditors to Present Proofs of Claim by Feb. 24


C H I L E

AMERICAN INTERNATIONAL: Grupo Wants Acquisition Closed by May 2


E C U A D O R

* Peru, Ecuador Endorsements Pave Way for Continued Free Trade
* Moody's Changes Outlook of Caa2 Currency Rating to Positive


E L   S A L V A D O R

AES EL SALVADOR: Fitch Assigns BB+ Rating on Foreign Currency


J A M A I C A

* Jamaica Pushes for a Strong & Independent Telecom Industry


M E X I C O

AXTEL: Starts Operations in La Laguna
CEMEX: Reports Financial Results for the Quarter Ended Dec. 31
ELAMEX: Intends to Voluntarily Delist and Deregister Stock


P E R U

* Peru, Ecuador Endorsements Pave Way for Continued Free Trade


P U E R T O   R I C O

G+G RETAILS: Receives Higher Offer for Assets from BCBG
MUSICLAND HOLDING: Wants Retail Consulting as Real Estate Expert


T R I N I D A D   &   T O B A G O

DIGICEL: TSTT Denies Causing Interconnection Delays
RBTT FINANCIAL: Reports Results for the Quarter Ended Dec. 31


V E N E Z U E L A

CANTV: Loses US$49 Million Suit Against Conatel

     -  -  -  -  -  -  -  -

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


5 DE DICIEMBRE: Authentication of Claims Stops on February 3
------------------------------------------------------------
The authentication of claims of creditors of bankrupt local
company 5 de Diciembre S.A. will stop on Feb. 3, 2006.

Court No. 13 of Buenos Aires' civil and commercial tribunal
declared the company bankrupt, in favor of the petition filed by
the company's creditor, Mr. Orlando Martin Romero.

The Company is undergoing the bankruptcy process with Mr. Daniel
Erdocia as trustee.

Clerk No. 26 assists the court on the case.

5 de Diciembre S.A. can be reached at:

         Maipu 464
         Buenos Aires

Mr. Daniel Erdocia, the trustee, can be reached at:

         Paraguay 610
         Buenos Aires


BABILONIA S.A.: Creditors' Claims to be Verified until Feb. 3
-------------------------------------------------------------
The proofs of claims of bankrupt company Babilonia S.A.'s
creditors will be verified until Feb. 3, 2006.

Babilonia S.A. was declared bankrupt after Court No. 9 of Buenos
Aires' civil and commercial tribunal endorsed the petition of
the company's creditor, Mr. Marcelo Merajver for the company's
liquidation.  Mr. Merajver has claims totaling $4,988.81 against
the company.

The court assigned Mr. Gustavo Pagliere to supervise the
liquidation process as trustee.

The city's Clerk No. 18 assists the court in resolving this
case.

Babilonia S.A. can be reached at:

         Tejedor 247
         Buenos Aires

Mr. Gustavo Pagliere, the trustee, can be reached at:

         Tucuman 1424
         Buenos Aires


DIHUEL S.A.: Individual Reports Due February 3
----------------------------------------------
The individual reports on the validated claims of Dihuel S.A.'s
creditors will be presented in Court No. 20 of Buenos Aires'
civil and commercial tribunal on Feb. 3, 2006.  The claims
underwent verification phase, which ended on Nov. 22, 2005.

Dihuel S.A. started its reorganization after the court approved
its petition.  Mr. Jose Luis Carriquiry was appointed trustee.

Mr. Carriquiry will present a general report for court review on
March 17, 2006.

The company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on Aug. 16, 2006.

Mr. Jose Luis Carriquiry, the trustee, can be reached at:

         Loyola 660
         Buenos Aires


HOSTAL DE ARECO: Trustee to Present General Report on February 3
----------------------------------------------------------------
Court-appointed trustee for the Hostal de Areco S.A.
reorganization, Ms. Liliana Maria Montoro, will present a
general report in court on Feb. 3, 2006.

Ms. Montoro verified claims of the company's creditors until
Oct. 7, 2005 and prepared individual reports out of the
validated claims.  The reports were submitted on Nov. 21, 2005.

Hostal de Areco began reorganization following the approval of
its petition by Court No. 11 of Buenos Aires' civil and
commercial tribunal.

An informative assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on July 4, 2006.

Clerk No. 22 assists the court on this case.

Ms. Liliana Maria Montoro, the trustee, can be reached at:

         Sarmiento 517
         Buenos Aires


LOMA NEGRA: Issuing US$100 Million Bond, Loans US$96 Million
------------------------------------------------------------
Loma Negra will issue US$100 million in bonds as part of a five-
year program to issue US$500 million in paper, La Nacion
reports.  The transaction awaits approval from Argentina's
national securities commission.

The company, controlled by Camargo Correa Cimentos S.A.,
will use the money raised from the offering to pay its debts,
finance its investments and as working capital.

The company has announced that it will invest US$100 million in
Argentina between now and 2008 to increase production capacity,
expand the Ferrosur Roca freight railroad and to carry out works
in Bahia Blanca port to raise the export capacity of this rail
line, Business News Americas relates.

In addition, Loma Negra has 0agreed to a bank loan for 295
million pesos (US$96 million), which it will use to make early
repayments of four series of bonds already on the market and due
to mature in 2008, 2011 and 2013.

                        *    *    *

On Sept. 26, 2005, Standard & Poor's International Ratings, Ltd.
Sucursal Argentina reaffirmed its "raBB+" rating on
US$39,778,828 of corporate bonds issued by Loma Negra Cia.
Industrial Argentina.

An obligation rated "raBB" denotes somewhat weak protection
parameters relative to other Argentine obligations, according to
S&P. The obligor's capacity to meet its financial commitments
upon the obligation is somewhat weak because of major ongoing
uncertainties or exposure to adverse business, financial or
economic conditions.


PROPLASTIC S.R.L.: Validated Claims to be Presented on Feb. 3
-------------------------------------------------------------
The validated claims of creditors of Proplastic S.R.L., which is
undergoing reorganization, will be presented as individual
reports in court on Feb. 3, 2006.  The presentation of the
reports followed the verification phase of the claims, which
lasted until Nov. 17, 2005.

Proplastic began reorganization following the approval of its
petition by Court No. 7 of Buenos Aires' civil and commercial
tribunal.

Ms. Sara Maria Rey de Lavolpe is overseeing the reorganization
proceedings as the court-appointed trustee.

A general report on the company's reorganization is expected in
court on March 17, 2006.

An informative assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is yet to be scheduled.

Clerk No. 14 assists the court on this case.

Ms. Sara Maria Rey de Lavolpe, the trustee, can be reached at:

         Cerrito 1136
         Buenos Aires


SANATORIO SAN CARLOS: Court Selects Trustee for Reorganization
--------------------------------------------------------------
Sanatorio San Carlos S.A., a company operating in San Carlos de
Bariloche, is ready to start its reorganization after the city's
civil and commercial court appointed Ms. Ana Maria Bessone to
supervise the proceedings as trustee.

An Infobae report states that Ms. Bessone will verify creditors
claims until Feb. 28, 2006.

Ms. Ana Maria Bessone, the company's trustee, can be reached at:

         Bartolome Mitre 265
         San Carlos de Bariloche (Rio Negro)


===========
B E L I Z E
===========


* Belize Produces Electricity with Chalillo Dam
-----------------------------------------------
The Chalillo hydroelectric power plant in the Pine Ridge
Mountains in the Cayo District in western Belize, has recently
come on-line.  The dam provides a nine-mile reservoir on the
Macal River and stores water during the rainy season to generate
electricity in the dry season.  The opening of the dam is aimed
at increasing Belize's energy self-sufficiency, the Sun Pedro
Sun relates.

The Chalillo Dam complements the Mollejon Dam built in 1995.
With the two dams in operations, Belize' consumers will be able
to save over $4 million dollars annually at current prices.

Belize Electric Company Limited owns and operates the Chalillo
Dam.

The project cost US$30 million to build and was constructed by
Sinohydro of Beijing, China.

Belize's foreign currency long-term debt is rated Caa3 by
Moody's and CCC- by Standard & Poor's.


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


NIPPON IRIDIUM: Seeks Liquidation Approval from Court
-----------------------------------------------------
Nippon Iridium (Bermuda) Ltd. filed on Jan. 24, 2006, a petition
for wind up to the Supreme Court of Bermuda.  The petition is
scheduled to be heard before the court at 9:30 a.m. on Feb. 24,
2006.

Any creditor or contributory wanting support or oppose the
making of an order on the petition may appear at the time of
hearing by himself or his counsel.  The interested creditor or
contributory must serve on or send by post in writing the
intention to appear at the hearing to Conyers, Dill & Pearman --
the company's attorneys.  The creditor or contributory must
include his name and address or the name and address of the
firm, and his signature or the signatures of his attorneys (if
any).  The company's attorneys must have the above stated
requirements not than 5:00 p.m. of Feb. 23, 2006.

Conyers, Dill & Pearman, the attorneys of Nippon Iridium, can be
reached at:

         Clarendon House
         Church Street, Hamilton HM 11, Bermuda


SEAVI THAILAND: Validation of Creditors' Claims Ends on Feb. 13
---------------------------------------------------------------
The claims of creditors of Seavi Thailand Venture Management
Ltd., which is under voluntary liquidation, will be verified by
Mr. Robin J Mayor -- the company's liquidator -- until Feb. 13,
2006.  Creditors who fail to have their claims validated after
the date will be excluded the benefit of any distribution or
payments the company would make.

The liquidator requires the creditors to submit their full
Christian names, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their lawyers (if any), and if so required by
notice in writing from the liquidator, to prove their debts or
claims personally or by their lawyers at the time and place
specified by the liquidator.

A final general meeting will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on March 3, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

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

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

   3) by resolution dissolving the company.

Seavi Thailand Venture Management entered voluntary liquidation
on Jan. 20, 2006, and selected Mr. Robin J Mayor to supervise
the company's winding up as liquidator.

Mr. Robin J Mayor, the liquidator, can be reached at:

         Messrs. Conyers Dill & Pearman, Clarendon House
         Church Street, Hamilton, HM DX, Bermuda


SPARX JAPAN: Liquidator to Verify Claims Until February 17
----------------------------------------------------------
SPARX Japan Private Equity Fund I Limited' creditors are
required to send their full Christian names, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Mr. Robin J
Mayor -- the liquidator of the company -- on Feb. 17, 2006.
Creditors may be required to prove debts or claims against the
company personally or by their lawyers at the time and place
that the liquidator will specify.

Creditors who fail to submit their proofs of claim or have them
validated by the liquidator will be excluded from the benefit of
any distribution or payments that the company would make.

A final general meeting is scheduled on March 8, 2006, at the
offices of Messrs. Conyers Dill & Pearman, Clarendon House,
Church Street, Hamilton, Bermuda.  The meeting is set to start
at 9:30 a.m., or as soon as possible thereafter, for the
purposes of:

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

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

   3) by resolution dissolving the Company.

SPARX Japan was liquidated on Jan. 23, 2006.  Mr. Mayor was
appointed as liquidator.

Mr. Robin J Mayor, the company's liquidator, can be reached at:

         Messrs. Conyers Dill & Pearman, Clarendon House
         Church Street, Hamilton, HM DX, Bermuda


SST AVIATION: Claims Verification Ends February 16
--------------------------------------------------
Mr. Robin J. Mayor, the liquidator of SST Aviation Limited, will
stop verifying creditors' claims on Feb. 16, 2006.  Creditors
are therefore required to submit their full Christian names,
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
the liquidator before the date.

Mr. Mayor may require the creditor prove their debts or claims
personally or by their lawyers at the time and place that the
liquidator will specify.

Creditors who fail to have their proofs of claims validated by
the liquidator will not be included in the benefit of any
distribution or payments made by the company.

SST Aviation Limited started winding up voluntarily on Jan. 12,
2006 and appointed Mr. Mayor as its liquidator.

A final general meeting will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on March 9, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

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

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

   3) by resolution dissolving the company.

Mr. Robin J Mayor, the company's liquidator, can be reached at:

         Messrs. Conyers Dill & Pearman, Clarendon House
         Church Street, Hamilton, HM DX, Bermuda


WORLDWIDE AVIATION: Proofs of Claim Due February 21
---------------------------------------------------
Creditors of Worldwide Aviation Ltd., which is being voluntarily
wound up, are required to send their full Christian names,
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their attorneys (if any)
to Mr. Nicholas Hoskins -- voluntary liquidator of the company
-- on or before Feb. 21, 2006.  Mr. Hoskins may require the
creditors to prove their debts or claims personally or by their
attorneys.  Creditors who fail to submit their proofs of claims
will not be included in the benefit of any distribution or
payments the company would make after its assets are liquidated.

A final general meeting will be held at the offices of Wakefield
Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda on March
3, 2006, at 10:00 a.m., or soon as possible thereafter, for the
purposes of:

   1) having an account laid before them showing the manner in
      which the winding-up has been conducted and how the
      property of the company has been disposed of and of
      hearing any explanation that may be given by the
      liquidator;

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

   3) by Resolution dissolving the Company.

Worldwide Aviation began winding up voluntarily on Jan. 26,
2006.  Mr. Hoskins was selected as the company's liquidator.

Mr. Nicholas Hoskins, the liquidator, can be reached at:

         Wakefield Quin, Chancery Hall
         52 Reid Street, Hamilton, Bermuda


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


BRASKEM: Announces Conference Calls on February 10
--------------------------------------------------
Braskem SA's (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK),
executive management has already reviewed the Company's fiscal
year 2005 figures which include net revenue of R$11.6 billion
and net income in line with that registered in 2004, which was
R$691 million.

As previously reported, Braskem is scheduled to publish its
complete fiscal year 2005 financial results on February 8, 2006,
prior to the opening of the market.

Subsequently, Braskem's executive management will participate in
conference calls on February 10, 2006.  The local conference
call is scheduled to begin at 10:00 a.m.  The international
conference call is scheduled to begin at noon (12 p.m.), in each
case Brasília standard time (7:00 a.m. and 9:00 a.m. EST,
respectively).

                        *    *    *

On Oct. 17, 2005, Fitch Ratings revised the Rating Outlook of
the `BB-' long-term foreign currency rating of Braskem S.A. and
Braskem International Ltd. to Positive from Stable.

The action followed the recent change in the Rating Outlook to
Positive from Stable of the 'BB-' foreign currency rating of the
Federative Republic of Brazil. The Brazilian corporate foreign
currency ratings continue to be linked to the 'BB-' foreign
currency rating of the sovereign.

Braskem -- http://www.braskem.com.br/--, a Brazilian
petrochemical company, is a thermoplastic resins producer in
Latin American, and is among the three largest Brazilian-owned
private industrial companies.  The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products.


CSN: Merrill Lynch Report Says Company Needs to Buy Slab
--------------------------------------------------------
CSN aka Cia Siderurgica Nacional (NYSE: SID) may need to buy
slab in order to keep galvanized plus hot and cold rolled steel
operations running at normal rates due to an accident at its
blast furnace in Volta Redonda on Jan. 22.  The accident
affected production of the mill's Blast Furnace #3, which is
accountable for about two-thirds of its pig iron production. The
extent and severity of the damages, as well the extent of
production interruption, have not yet been determined.  A
prolonged furnace production interruption would require CSN to
acquire slabs in the spot market to feed its stripping mills,
reducing profitability somewhat from its current very strong
levels.

"Currently [CSN's] inventories are very low - around 25 days of
sales - so it would likely need to buy slabs in the short term,"
according to a report from Merrill Lynch.  "For each month of
halted production it would need to buy 312t of slabs in the
market."

Arcelor Brasil and Usiminas could be the main suppliers of
slabs, according to Merrill Lynch.

CSN said in a statement the accident damaged the dust collector
system, adding that other equipment such as the blast furnace
and carrying systems are fine.

Companhia Siderurgica Nacional SA manufactures and distributes
hot rolled, cold rolled and galvanized steel products and tin
mill products.  CSN distributes primarily to customers in the
automobile, auto-parts, civil construction, tubes and pipes and
electrical equipment industries.  The Company markets its
products mainly in Latin America, North America, Europe and
Asia.

                        *    *    *

On Jan. 26, 2006, Standard and Poors' Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.

The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position.  These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.

CSN is one of the lowest-cost steel producers in the world,
which is a result of its access to proprietary, high-quality
iron ore (at the Casa de Pedra mine); self-sufficiency in
energy; streamlined facilities; and logistics advantages.  This
is in addition to the group's strong market position in the
fairly concentrated steel industry in Brazil.


CVRD: Optimistic with Mittal's Bid for Arcelor
----------------------------------------------
CVRD aka Companhia Vale do Rio Doce told Bloomberg that the
steel industry will be strengthened should Mittal Steel Co. and
Arcelor SA will combine.

Chief Executive Officer Roger Agnelli told Bloomberg that the
combination of the two companies won't lower iron-ore prices
because demand and supply will be unaffected by the transaction.
However, a more concentrated industry will allow steelmakers and
miners to produce more quickly to meet rising demand.

"Consolidation is healthy for all," Mr. Agnelli told reporters
in Vitoria, Brazil.  "This is a game of giants.  Those who don't
seek scale and efficiency are going to be out of the market."

Mittal's purchase of Arcelor would join the world's two biggest
steelmakers and create a company that produces about 10 percent
of the world's steel, or 100 million metric tons, a year, Romina
Nicaretta of Bloomberg relates.  Mining companies and the
world's major steelmakers are in negotiations to set iron-ore
prices for 2006. Miners won a 72 percent iron-ore price increase
in 2005 at the same time the price of coal, another raw material
for steelmakers, doubled.

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                        *    *    *

On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016. Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil.  The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD.  The obligation to guarantee the notes rank
pari passu with all of CVRD's other unsecured and unsubordinated
debt obligations.  Fitch expects the proceeds of this issuance
to be used for general corporate purposes and primarily to pay
down US$300 million of Vale Overseas' 9.0% guaranteed notes due
2013.

Fitch also maintains these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:

  -- CVRD foreign currency rating: 'BB', Outlook Positive;
  -- CVRD local currency rating: 'BBB' Outlook Stable;
  -- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
  -- CVRD Finance Ltd.: series 2000-1 and series 2000-3: 'BBB';
  -- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.


SADIA: S&P Explains BB Rating's Affirmation
-------------------------------------------
Rationale

On Dec. 20, 2005, Standard & Poor's Ratings Services affirmed
its 'BB' foreign and local currency corporate credit rating on
Sadia S.A.  The ratings affirmation followed Sadia's
announcement of a Brazilian reais 1.5 billion (about $650
million) capital investment for the construction of a new
production plant in the Brazilian state of Mato Grosso.  The
outlook on the ratings is stable.

While higher capital expenditures and working capital
requirements expected for the next four years should affect
Sadia's free operating cash flow generation, we believe the
company will retain its ability to generate FOCF after the new
investment cycle is concluded.  We expect Sadia to report
minimal FOCF generation in 2005 (if not marginally negative),
and negative FOCF in 2006.  Sadia announced its total capital
expenditures in 2005 will reach BrR600 million (about $240
million).  The company also stated it intends to invest BrR850
million (about $350 million) in 2006, which includes the
construction of three new production units in the state of Mato
Grosso.  Sadia invested an average of BrR140 million in the
2001-2004 period.

The ratings on Sadia reflect its exposure to the highly
competitive meat and food-processing industries and to the risks
of volatile commodity prices on both its cost structure and
sales.  Sadia is also exposed to the volatile Brazilian market
environment, typified by consumers' relatively low purchasing
power, unstable demand pattern, and currency mismatch risks
related to local-currency domestic revenues and a significant
portion of dollar-denominated costs and debt.  In addition, the
company's significant financial arbitrage position presents
risks that are incorporated in the ratings.  These negative
factors are partially mitigated by Sadia's leading market
position in Brazil and strong levels of exports; its
progressively more diversified product and client mix; and
Sadia's rigorous risk control measures, both at operating and
financial levels.

Sadia's strong focus on exports, coupled with an increasing
global demand for meat-based products and the sanitary problems
faced by certain relevant meat-producing countries in Eastern
Europe and Asia, have had a significant positive effect on the
company's results in the past years.  The maintenance of
relevant levels of exports has served as a cushion for the
volatilities inherent to the meat industry and the Brazilian
economy. Nevertheless, Sadia's capacity to convert these
benefits into better operating margins has been limited by the
volatile commodity prices and the impact of the appreciation of
the local currency on its export revenues.  Sadia has
consolidated its presence in external markets, with an
increasing number of countries and clients served, and growing
diversification. Nonetheless, Sadia still faces the challenges
of developing its export product mix toward more value-added
products, with processed products accounting for just about 10%
of its exports in the first nine months of 2005.  The bulk of
Sadia's export volumes is associated with volatile and lower-
margin commodity-type products such as whole poultry, cuts of
poultry, and pork.

Sadia's limited capacity to pass along cost increases to
domestic prices at the same pace that they occur remains a
concern; therefore, the company's margins remain cornered
between a relatively rigid cost structure and the volatile
levels of demand in Brazil.  On a positive note, Sadia's
improving cost efficiency and increasing capacity to adjust its
international prices have enabled the company to post solid
results in 2005, offsetting the negative effect of the local
currency appreciation on its export sales.  Nevertheless, long
periods of inflationary pressure could significantly affect
Sadia's results, with affects its cost structure and domestic
levels of demand.  Foreign currency volatility has a twofold
impact on Sadia's results.  A scenario of significant currency
depreciation would negatively affect the company's results due
to its dollar-denominated cost base (about 50% of the total-
mostly related to grains and packaging) and debt position (75%
of the total), while its export revenues in local currency would
increase (as experienced in 2002).

Sadia has maintained a more active and conservative foreign-
currency debt-hedging policy and prudent and strict investment
guidelines.  As a result, Sadia has been able to mitigate a
great part of the risks inherent to its significant financial
arbitrage position.  The company makes use of swaps and other
derivative instruments, combined with dollar-denominated cash
investments and offshore funds, which currently cover all of its
foreign currency debt exposure.

Sadia's EBITDA margins have hovered in the 10%-12% range, which
compares favorably with its local and international peers.  In
addition, Sadia's FOCF-to-total debt ratio averaged 12% in the
2001-2004 period.  An improvement in EBITDA margins would depend
on Sadia's ability to improve further its product mix,
especially on exports.

The assignment of a foreign currency rating on Sadia that is
above that of the Federative Republic of Brazil reflects our
review of the transfer and convertibility risk affecting
entities in Brazil and other countries announced on Nov. 3,
2005.  The reassessment of T&C risk affecting Sadia has
considered its strong business fundamentals, its export ability,
and its relatively prudent financial policies.

With net sales of BrR7.1 billion (approximately $2.8 billion) in
the 12 months ended September 2005, Sadia holds a leading
position in the poultry, pork, and frozen and refrigerated
processed food segments in Brazil.  Such strong market presence
is supported by Sadia's brand awareness both for the quality and
diversification of its product mix, as well as by its extensive
refrigerated distribution network in the country.

Liquidity

Sadia's liquidity position is strong.  The company has
significantly reduced its exposure to short-term debt during the
past years (still relevant at 48%), whereas its cash position
has become stronger and currently matches its debt maturities
until 2010.  Sadia maintains the strategy of keeping high cash
holdings to optimize its financial cost and cope with its
volatile working capital requirements.  Consequently, the
company carries a significant concentration of debt maturities
in the short term and a leveraged capital structure.

All the company's foreign-currency debt is hedged against
foreign-exchange volatility (by policy).  While refinancing
needs are substantial for the next 12 months, with short-term
maturities amounting to BrR1.43 billion (about $640 million) as
of September 2005, Sadia's significant liquidity (BrR2.38
billion/$1.07 billion) adds to its financial flexibility and
capacity to access debt and substantially mitigates refinancing
risk.  Moreover, the company maintains approximately $700
million of its excess cash offshore (about 90% invested in money
market funds).

Outlook

The stable outlook on the ratings reflects our expectations that
Sadia will maintain its current strong levels of exports and its
leadership in Brazil to mitigate the risks associated with its
operations.

A positive change of the ratings or outlook would depend on
Sadia's ability to reach higher operating margins and a more
diversified and value-added product mix on exports.  The
reduction of its financial arbitrage position would also be
positive for the ratings.

Conversely, the ratings could suffer downward pressure in a
scenario of more negative performance of the local economy
combined with depressed local demand and consumption levels,
when international markets do not offer a profitable sales
alternative.


* Brazil Continues Efforts to Sell Aircraft to Venezuela
--------------------------------------------------------
According to the El Universal newspaper, Brazil has not stopped
trying to sell light fighters and reconnaissance aircrafts to
Venezuela despite a veto from the Unites States.  A move that is
an unacceptable practice in world trade.

The aircrafts were manufactured by Embraer aka Empresa
Brasileira de Aeronautica and comprised of U.S. parts.

"You have to be very careful in the face of this affair. The
relevant steps have to be made, rather than ignoring some
phases. This is not an isolated situation, as a similar problem
emerged with Spain," Marco Aurelio García, foreign affairs
advisor for the Brazilian government told Venezuelan state TV
station Venezolana de Televisión.

"We are going to address this issure carefully, yet firmly," Mr.
Garcia said.

                        *    *    *

Brazil is the biggest debtor among developing nations with
US$440 billion of debt.  S&P rates Brazil's foreign debt at
BB-, while Moody's has it at Ba3.


* Brazil Needs $10 Billion Investment to Meet Ethanol Demand
------------------------------------------------------------
Brazil's sugar-cane industry needs $10 billion of investment by
2012 to meet rising demand for ethanol, Bloomberg relates.
Being the world's largest sugar producer, Brazil must build new
mills to convert sugar cane into ethanol, a motor fuel that is
cheaper than gasoline.

Agriculture minister Roberto Rodrigues said in a press
conference that the sugar cane industry must step up there
produce by 50%.

Because of the rising demand for ethanol, prices of sugar rose
as much as 18.75 cents per pound.

                        *    *    *

Brazil is the biggest debtor among developing nations with
US$440 billion of debt.  S&P rates Brazil's foreign debt at
BB-, while Moody's has it at Ba3.


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


CHANDLER INVESTMENT: Submission of Claims Ends on February 24
-------------------------------------------------------------
Creditors of Chandler Investment Corp. -- company in voluntary
liquidation -- are to present proofs of claim to the liquidator
on or before Feb. 24, 2006, and establish any title they may
have under the Companies Law (2004 Revision).  Failure to do so
would result to exclusion from the benefit of any distribution
made before the debts are proved or from objecting to the
distribution.

Chandler Investment Corp. started voluntary liquidation on Dec.
30, 2006.  Messrs. Wight and Stuart Sybersma of Deloitte were
appointed as joint voluntary liquidators.

Mr. Stuart Sybersma, one of the joint voluntary liquidators, can
be reached at:

         Deloitte
         P.O. Box 1787 GT
         Grand Cayman, Cayman Islands

         Joshua Taylor
         Telephone: (345) 949 7500
         Facsimile: (345) 949 8258


HOURGLASS FUND: Liquidator Stops Verifying Claims on February 24
----------------------------------------------------------------
Q&H Nominees Ltd., the liquidator of Hourglass Fund (Cayman),
Ltd., will stop accepting and verifying claims of the company's
creditors on Feb. 24, 2006.  Creditors must prove their debts or
claims on or before the date and establish any title they may
have under the Companies Law (Revised), or to be excluded from
the benefit of any distribution made before the debts are proved
or from objecting to the distribution.

Hourglass Fund started liquidating its assets on Dec. 27, 2006
and selected Q&H Nominees as its voluntary liquidator.

Q&H Nominees Ltd. can be reached at:

          P.O. Box 1348, George Town
          Grand Cayman, Cayman Islands

          Greg Link
          Telephone: 949 4123
          Facsimile: 949 4647


MINOT CAPITAL: Creditors Given until Feb. 24 to Submit Claims
-------------------------------------------------------------
Creditors have until Feb. 24, 2006, to present proofs of claims
against Minot Capital Fund (Offshore) Ltd., a company in
voluntary liquidation, and establish any title they may have
under the Companies Law (Revised), or they will be excluded from
the benefit of any distribution made before the debts are proved
or from objecting to the distribution.

Minot Capital Fund began liquidating assets on Dec. 12, 2005,
and appointed Q&H Nominees Ltd. as liquidator.

Q&H Nominees Ltd. can be reached at:

         P.O. Box 1348, George Town
         Grand Cayman, Cayman Islands

         Greg Link
         Telephone: 949 4123
         Facsimile: 949 4647


RGN LONG/SHORT: Creditors to Present Proofs of Claim by Feb. 24
---------------------------------------------------------------
Creditors of RGN Long/Short Equity Program, Ltd., a company in
voluntary liquidation, are required to prove their claims
against the company on or before Feb. 24, 2006.

Creditors must submit 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 attorneys-at-law for
Q&H Nominees Ltd., the liquidator.  If required by Q&H Nominees,
creditors -- personally or by their attorneys -- will prove the
debts or claims at the time and place specified by the
liquidator.  Failure to do so would mean exclusion from the
benefit of any distribution made before such debts are proved.

RGN Long/Short Equity Program entered voluntary liquidation on
Dec. 20, 2006.

Q&H Nominees Ltd., the voluntary liquidator, can be reached at:

         P.O. Box 1348, George Town
         Grand Cayman, Cayman Islands

         Telephone: (+1) 345 949 4123
         Facsimile: (+1) 345 949 4647


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


AMERICAN INTERNATIONAL: Grupo Wants Acquisition Closed by May 2
---------------------------------------------------------------
Chilean financial services group, Grupo Security, expects to
close on May 2 the acquisition of Interamericana Rentas Seguros
de Vida S.A., also known as Interrentas, the annuity arm of
Seguros Interamericana which is a subsidiary of U.S. insurance
giant American International Group (NYSE: AIG).

On January 11 Grupo Security offered 67 billion pesos (US$128
million) to acquire 100% of Interamericana Rentas Seguros de
Vida.  On January 27 both parties agreed to the sale.

Grupo Security, which owns a bank, life insurance business and
investment management outfit, said the acquisition would boost
its 2006 earnings by 20%.

Grupo Security said Interrentas' technical reserves as of the
end of September 2005 were $916 million, which means that the
acquisition value was 13.9% of reserves, similar to other recent
transactions.  Security said it would pay for the acquisition
with cash on hand, dividends from its affiliates, and through
issuing new shares and long-term bonds.

J. P. Morgan was the financial advisor for the acquisition deal.

                        *    *    *

On Jan. 20, 2006, Fitch Ratings has downgraded its outlook on
the Chilean annuity subsidiary of U.S. insurance giant American
International Group Inc. (NYSE: AIG) to negative from stable
after local Grupo Security's recent takeover announcement.

The outlook downgrade acknowledges the company's lower financial
support after the takeover, Fitch said in a report.


=============
E C U A D O R
=============


* Peru, Ecuador Endorsements Pave Way for Continued Free Trade
--------------------------------------------------------------
Recent trade developments in the Americas continue to renew
prospects for a hemisphere-wide trade agreement in some fashion,
even as observers point to the possibility this year that
leftist political movements may come to power in a handful of
Latin American nations.

Enthusiasm for stronger trading partnerships was evident last
week when Gov. Jeb Bush secured endorsements from Peru and
Ecuador that Miami would be their preferred site for the
Permanent Secretariat of a Free Trade Area of the Americas.

Miami "is the best placed location geographically," said Peru's
President Alejandro Toledo. "Our decision is to support the FTAA
there, where it makes the most sense, and even though there are
other candidates, like Panama, Mexico and others, we believe
that Miami can be the headquarters."

President Toledo's continued emphasis on opening Peru's economy
is evident with the just-completed bilateral agreement with the
United States. This, coupled with the exemplary leadership of
Prime Minister Pedro Pablo Kuczynski, who has led Peru to an
impressive 52 consecutive months of economic growth, has set the
stage for a continued strong economy. Elections to succeed
Toledo will be held this April and it will be difficult for the
next leader -- whoever emerges -- to turn Peru's back on the
tremendous progress already made through trading partnerships.
For instance, in 2004, two-way trade between Florida and Peru
alone equaled about $1.2 billion.

In Ecuador, Minister of Foreign Trade Jorge Illingworth Guerrero
said after a meeting with Gov. Bush and Ecuadorian President
Alfredo Palacio that "Ecuador would be in favor of Miami's
candidacy when the FTAA advances."

Support for the FTAA headquarters in Miami from Peru and Ecuador
will help pave the way for additional endorsements in the future
and will clearly assist in the free trade negotiations in the
Andean region and beyond, even though political change may be
forthcoming this year.

Ten nations in the hemisphere, including Haiti, have
presidential or legislative elections scheduled for the
remainder of the year, and leftist movements in some countries
may come to power or gain support.  But it is mistaken to
interpret leftist gains -- however few they may be -- as a sign
that the FTAA or something like it cannot move forward.

One newly elected leader this year, President-elect Michelle
Bachelet of Chile, has shown that even left-leaning candidates
can be pragmatists about trade.

Since her election, President Bachelet has stated that she would
support the FTAA and would work to ensure that it "takes into
account the diversity and differences among the various
countries in the region."

President Bachelet is not an anomaly.  In Brazil, the populist
President Lula da Silva has embraced open trade -- albeit a
"wait and see" attitude toward FTAA -- and in Uruguay, the
nation's top economic official has announced that a trade
agreement would be negotiated with the U.S. outside the current
Mercosur bloc of key South American nations, causing Paraguay to
also begin to look at free trade rather differently.

Certainly, there are exceptions to the pragmatists from the
left, namely Hugo Chavez of Venezuela, who relies on his
nation's oil riches, but the anti- FTAA cabal is weak compared
to those nations that see the value of a hemisphere-wide
community of trade.

During last fall's Summit of the Americas in Argentina, 29 of 34
nations renewed their commitment to moving forward with the FTAA
"of the willing," a resounding defeat for Chavez who failed to
live up to his own pre-summit boasting that he would bury the
FTAA.

And even four of the five countries that did not favor FTAA at
the time -- Brazil, Argentina, Paraguay and Uruguay -- were not
outrightly opposed to an agreement; they wanted more time to see
how the Doha Round of multilateral talks on global trade pans
out.

A greater urgency is emerging to pull together in a hemisphere-
wide agreement because of the influence of China. An FTAA of the
willing would allow nations to form an integrated front to
compete with China in world markets.

Regardless of the political circumstances this year, the reality
and promise of free trade make it all the more critical for
Miami to continue its aggressive pursuit of the FTAA
headquarters, however an alliance is formed. After all, the
European Union was not created overnight and the expectations
that an FTAA in whatever fashion could not evolve -- just as the
EU has done - - is unrealistic.

Whether the trade block is composed of fewer nations, those
interested and willing to be a part of the inevitable
integration, or whether the FTAA is repackaged with a new name,
the results will be the same.  For this reason Miami and Florida
must remain on course and continue to be at the forefront of
this new economy.

In the meantime, free-trade agreements -- such as DR-CAFTA,
U.S.-Peru, the ongoing U.S.-Andean negotiations, the U.S. Panama
bilateral and possible talks with Uruguay -- can serve as
stepping stones to a broader FTAA pact.

Along the way, Florida's economy will continue to benefit as the
number- one trading partner of every country in Latin America
and the Caribbean, except for Mexico. Taken as a whole, the
region represents nearly 60% of Florida's total international
trade and the state handles over 50% of the nation's trade
activity with Latin America and the Caribbean.

Drawing nations together behind a common commitment for a
hemispheric community of trade will be no small feat. But any
effort must rely on the expectation that most leaders --
wherever their placement along the political spectrum -- are
sensible enough to recognize that for their economies to grow
and for millions to move out of poverty, their doors cannot be
closed to trading partnerships throughout the Americas.

Jorge L. Arrizurieta is President of Florida FTAA, Inc., and
former United States Alternate Executive Director of the Inter-
American Development Bank.


* Moody's Changes Outlook of Caa2 Currency Rating to Positive
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on Ecuador's
Caa1 foreign-currency government bond rating to positive from
stable in light of the country's improved liquidity position and
declining debt ratios.  As a result, the outlook on the Caa1
foreign-currency country ceiling for bonds and on the Caa2
foreign-currency country ceiling for bank deposits was changed
to positive.  Ecuador's local-currency guideline remains at Ba2.

Some of the factors behind Ecuador's improved liquidity position
and declining debt ratios include greater access to multilateral
and market financing, a build-up in public sector and overall
banking system deposits, and continued growth in remittances
from abroad, Moody's said.

In addition, despite periods of intense political turmoil and
policy uncertainty, the government has maintained fiscal
surpluses at the non-financial-public sector level.

The imbalances at the central government level have been
contained despite times of expenditure pressure, said the
ratings agency.  Key debt indicators have continued to improve,
leaving the government with a lower level of indebtedness
relative to the years before its 1999 default.

Ecuador's ratings continue to be constrained by important
structural weaknesses, said Moody's.  These include increasingly
limited fiscal flexibility in the event of a downturn in oil
prices, limited policy adjustment tools due to dollarization, an
unstable institutional framework aggravated by a high degree of
political volatility, and uncertainty over the development of
the oil industry.  Potential difficulties in the electricity
sector pose a threat to both economic growth and future fiscal
performance, said Moody's.


=====================
E L   S A L V A D O R
=====================

AES EL SALVADOR: Fitch Assigns BB+ Rating on Foreign Currency
-------------------------------------------------------------
Fitch Ratings has assigned a 'BBB-' rating to AES El Salvador
Trust's proposed 10-year, US$290 million Political Risk
Protected bond issuance.  Fitch has also assigned a 'BBB-' local
currency rating and 'BB+' foreign currency rating to AES El
Salvador, S.A. de C.V. reflecting the combined credit quality of
AES El Salvador's four operating companies, Compania de
Alumbrado Electrico de San Salvador S.A. de C.V., AES CLESA y
Compania, S. en C. de C.V., Empresa Electrica de Oriente, S.A.
de C.V. and Distribuidora Electrica de Usulutan, S.A. de C.V.
The proceeds of the issuance by the trust will be used to repay
existing debt at CAESS, CLESA and EEO.  After repayment of the
existing debt, remaining proceeds are expected to be used to pay
dividends to the shareholders of CAESS and CLESA, and for
general corporate purposes.  The payment of principal and
interest on the new notes will be fully and unconditionally
guaranteed on a senior unsecured, joint and several basis by
CAESS, CLESA, EEO and DEUSEM.

The local currency and issue ratings are based on the combined
credit strength of its operating assets and reflect the group's
relatively large size compared to the market, low business risk
profile, its geographical diversification, its operating
efficiency, and its adequate financial profile.  The rating also
reflects the nonexclusive nature of the service territories and
the electricity sector's exposure to potential social, political
and regulatory changes.  The ratings of AES El Salvador also
incorporate the economic, political and other sovereign risks
inherent in investments in El Salvador.  Fitch currently rates
the sovereign at 'BB+' with a Stable Rating Outlook.

The notes are rated above the 'BB+' foreign currency rating of
the company and country because they benefit from external
liquidity facilities totaling 12 months of interest payments.  A
six month debt service reserve account coupled with a six month
letter of credit (LOC) provided by Credit Suisse (CS, acting
through its Cayman Islands branch) help protect against a
potential currency inconvertibility/non transfer event and allow
for the rating of the notes to breach the sovereign ceiling.
The facilities will remain available for the life of the notes
as long as certain criteria are met.  While the stated maturity
of the notes is 2016, the notes can be extended by 12 months
during an event of transfer and convertibility restrictions.

AES El Salvador's credit rating is based on the underlying
credit quality of the four operating assets.  AES El Salvador is
the largest electric distributor utility group in El Salvador
with a market share of 78.2% reaching a total of approximately
one million customers.  The group is somewhat geographically
diversified as it covers more than three quarters of the country
but remains entirely exposed to Salvadoran sovereign risk.
During 2004, AES Corp. integrated into AES El Salvador several
administrative and operational functions of its Salvadoran
distribution companies to improve customer service, increase
operational efficiency and to strengthen purchasing and market
power. The administrative changes illustrate how closely aligned
and operated these assets are despite being legally separate
entities.

The Salvadoran electricity distribution companies are, for
practical purposes, operated as natural monopolies and are
stable, low-risk businesses.  However, distribution service
territories are not exclusive, and distributors are free to
compete for customers under the rules established by the
Electricity Law.  The risk of new competition is minimal given
that distribution companies possess significant economies of
scale that make it inefficient and impractical for more than one
company to operate in a particular geographic area.  Any
switching of suppliers should not materially affect the
company's cash flow, as distribution tariffs would continue to
be collected if the distribution grid is used.  Management's
strategy is to continue focusing on improving quality of service
standards and lowering costs to further strengthen the company's
business position and maintain its relationships with customers.

AES El Salvador's operations are relatively efficient.  The
group, on a consolidated basis, has been able to reduce energy
losses to 8.8% for the third quarter of 2005 from approximately
10% at the beginning of 2004, compared with the regulated
allowance for energy losses of 7.9% and 8.7% for urban and rural
areas, respectively.  However, the energy loss formula is
applied individually to each company and cannot be compensated
by lower energy losses of another company.  CAESS losses are
lower primarily due to its higher density service territory.
Losses at CLESA, EEO and DEUSEM are higher, but generally are
reasonable for non-urban electric distributors in Latin America.
Based on AES's technical expertise and its proven ability to
reduce energy losses, further modest improvements to the
companies' efficiency measures over the coming years should
benefit margins and earnings.

The Salvadoran regulatory framework, like those in many other
emerging markets, is vulnerable to social and political
interference, but has generally been constructive for
distribution companies.  Distribution tariffs are reset every
five years, based on expected cost structure and capital
expenditures of the distribution company.  Semi-annual tariff
adjustments are made to reflect changes in the cost of energy,
and annually to reflect changes in inflation or more frequently
if quarterly movements in the CPI exceed 10%.  Energy prices are
designed to be a pass-through based on the spot market albeit
with a six month lag.  However, in December 2005, the tariff
adjustment resulted in an increase of 0.5% versus the
approximate 5.0% calculated by the tariff adjustment formula to
reflect higher spot prices during the previous semester.  The
lower than expected adjustment seems to be somewhat political as
it comes in advance of the March 2006 congressional, mayoral and
municipality elections.

The difference between the relatively higher spot price and the
final tariff to customers has resulted in a deficit of a
compensatory fund, which was created by the government in 2003
to track fluctuations in energy prices and to lower the
volatility for end users.  This deficit is expected to be
financed by the government through its energy generation company
Comision Ejecutiva Hidroelectrica del Rio Lempa by giving the
distribution companies credit notes to be used for future energy
purchases. The lower than expected tariff adjustment should not
materially affect the credit quality of AES El Salvador's
distribution companies.

AES El Salvador's financial profile is adequate for the rating
category.  The group, on a combined basis, has a stable cash
flow generation with an average EBITDA margin of 21% for the
past five years.  AES El Salvador presented strong interest
coverage, measured as EBITDA-to-interest expense of 3.8 times
and 3.5x for year-end 2004 and through the third quarter 2005,
respectively. Leverage has been stable and modest.  Through the
third quarter of 2005 the group had a total debt-to-EBITDA ratio
of 2.9x.  The proposed transaction is expected to temporarily
increase the leverage of the company with debt-to-EBITDA
increasing to an estimated 3.5x at year-end 2006.  AES El
Salvador's post-transaction financial profile and expected
improvements are consistent with the assigned rating category.
Once the refinancing is completed, AES El Salvador should have
an improved financial profile compared to the existing debt
structure at the individual operating companies, characterized
by an extended debt maturity and lower annual debt service,
reflecting the bullet amortization of the proposed issuance.
Further, the joint and several guarantees of the operating
companies provide broader cash flow availability to meet debt
obligations.


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


* Jamaica Pushes for a Strong & Independent Telecom Industry
------------------------------------------------------------
According to the Trinidad & Tobago Express, the Jamaican
government sold its stake in the country's telecommunications
industry, a move that is designed to liberalize Jamaica's
telecom industry.

Jamaica's Minister of Technology and Commerce Phillip Paulwell
told reporters that the road to liberalizing the telecom
industry was difficult.  Mr. Paulwell mediated between Digicel
and Cable & Wireless to reach an interconnection rate agreement.
The Minister believes in an industry that is governed by a
strong regulatory framework.

Minister Paulwell noted that competition prompted economic,
investment and development growth across the nation.  He
revealed that taxes collected from the telecom industry is
second only to that of the energy sector.

Mr. Paulwell refused to comment when asked whether Trinidad and
Tobago should relinquish its 51% stake in Telecommunications
Services of Trinidad and Tobago.


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


AXTEL: Starts Operations in La Laguna
-------------------------------------
AXTEL, S.A. de C.V., a Mexican telecommunications company,
announced on Monday the official start of its operations in La
Laguna -- a region that is comprised of the cities of Torreon,
Lerdo, and Gomez Palacio -- before the presence of Humberto
Moreira Valdes, Governor of Coahuila.

During the event, Tomas Milmo Santos, AXTEL CEO and chairman of
the board of directors, delivered a brief speech and then made
the first telephone call over an AXTEL line.

The event was attended by Jorge Arredondo Martinez, President of
Federal Telecommunications Commission, and by state and
municipal authorities, businessmen, and outstanding members of
the La Laguna society.

The company informed that the direct investment they expect to
make in La Laguna over the next five years is in the amount of
25 million dollars.

They also reported that, during the first stage of its
development, their network is already covering 85% of the
population, offering telephone, internet, and advanced data
services to users in the home and business sectors.

AXTEL, which will invest 150 million dollars nationwide this
year, has installed over 600 thousand lines so far.

Axtel, S.A. de C.V. provides local and long distance
telecommunications services, data transmission and internet
services in Mexico, to both residential and business customers.
Axtel posted net profits of 306 million pesos (US$29 million)
for 2005 compared to a loss of 79.6 million pesos in 2004.

                        *    *    *

Axtel's 11% $249,870,000 note due Dec. 15, 2013, is rated B1 by
Moody's and B+ by Standard & Poor's.


CEMEX: Reports Financial Results for the Quarter Ended Dec. 31
--------------------------------------------------------------
CEMEX, S.A. de C.V. (NYSE: CX) announced that consolidated net
sales for the fourth quarter of 2005 grew 98% to US$3.96 billion
compared to the same quarter of 2004, mainly as a result of the
acquisition of RMC.  Majority net income for the year ended
December 31, 2005 increased 62% compared to 2004.

CEMEX Consolidated Fourth-Quarter and Full-Year Financial and
Operational Highlights

    * Sales increased in the majority of CEMEX's markets due to
      higher cement, ready-mix and aggregates volumes. Robust
      activity in infrastructure and residential sectors
      continue to be the primary drivers of cement and ready-mix
      sales in most markets.

    * Operating income in the fourth quarter increased 22% to
      US$507 million, over the comparable period in 2004 and
      increased 34% for the full-year 2005 versus 2004 reaching
      US$2.5 billion.

    * Free cash flow for the quarter was US$325 million, up 63%
      from US$200 million in the same quarter of 2004. For the
      full-year 2005, free cash flow increased 36% to $2.0
      billion, from $1.5 billion in 2004.

    * EBITDA (operating income plus depreciation and
      amortization) increased 55% during the fourth quarter of
      2005 compared to the same quarter in 2004, reaching US$901
      million, and grew 40% to US$3.6 billion for the full-year
      2005, primarily due to the acquisition of RMC.

    * CEMEX's consolidated cement volume increased 27% to 20.7
      million metric tons during the fourth quarter of 2005
      versus 16.3 million metric tons in the fourth quarter of
      2004.  Consolidated ready-mix volume grew 210% to 18.6
      million cubic meters also in the fourth quarter.  The
      company's consolidated aggregates volume reached 42.3
      million metric tons in the fourth quarter of 2005, an
      increase of 293% over the fourth quarter of 2004. For the
      full year 2005, CEMEX's consolidated cement volume
      increased 23% to 80.6 million metric tons and consolidated
      ready-mix volumes were up 191% reaching 69.5 million of
      cubic meters.  Consolidated aggregates volume for the
      full-year 2005 was 160 million metric tons, 257% higher
      than in 2004.

Hector Medina, Executive Vice President of Planning and Finance,
said: "We are very pleased with our results for the year. We
achieved important financial goals for the year, driving
significant increases in sales and earnings growth, and we
strengthened our position in our key operational and regional
markets, enhancing our growth platform. The integration of RMC
progressed smoothly and ahead of schedule and we were able to
realize additional synergies from the transaction. Looking ahead
into 2006, we are very well positioned to continue to build on
our record of sustained revenue growth, while maintaining strong
profitability, free cash flow expansion and a low cost of
capital."

Consolidated Corporate Results

During the fourth quarter of 2005, majority net income decreased
27%, from US$334 million in the fourth quarter of 2004 to US$244
million. For the full-year 2005, majority net income increased
62%, reaching US$2.1 billion.

Cost of goods sold and selling, general, and administrative
expenses (SG&A) increased 128% and 91%, respectively, during the
fourth quarter of 2005 versus the comparable quarter in 2004,
due primarily to the acquisition of RMC.

In the fourth quarter, free cash flow of US$325 million plus
US$200 million in proceeds from the termination of equity
forwards in September were used to reduce net debt by US$235
million, US$145 million, for a new prepaid equity forward to
cover some outstanding stock options and the balance to fund
several investments and for liability management initiatives.

During the fourth quarter, CEMEX reduced net debt by US$235
million and by US$1.77 billion since the end of the first
quarter 2005. The net-debt-to-EBITDA ratio improved in the
fourth quarter to 2.4 times from 2.6 times at the end of the
third quarter 2005. Interest coverage reached 6.8 times during
the quarter, unchanged from the fourth quarter of 2004, and up
from 6.5 times at the end of the third quarter 2005.

Major Markets Fourth-Quarter Highlights

Net sales in CEMEX's Mexican operations increased 13% during the
fourth quarter to US$817 million, from US$721 million in the
same quarter of 2004. EBITDA grew 13% US$319 million from fourth
quarter 2004 to fourth quarter 2005. Cement volumes in Mexico
increased 5% during the quarter versus the fourth quarter of
2004, while ready-mix and aggregates volumes increased 15% and
12%, respectively, over the same period in 2004. Cement demand
during the year was driven largely by government infrastructure
spending, fueled in part by oil revenue surplus and residential
construction supported by increased credit availability from
commercial banks and other sources.

CEMEX's operations in the United States reported net sales of
US$1.0 billion in the fourth quarter of 2005, up 107% from the
same period in 2004. EBITDA increased 109% to US$270 million
also compared to the fourth quarter of 2004. U.S. cement volumes
increased 8% in the fourth quarter 2005 versus the same period a
year ago, and 6% for the full year 2005. On a like-to-like basis
for the ongoing operations, cement volumes increased 11% for the
quarter and 8% for the full year versus the comparable periods
in 2004.

In Spain, net sales for the quarter were US$370 million, up 10%
over the fourth quarter of 2004, while EBITDA increased 7% to
US$107 million. Spanish domestic cement and ready-mix volume
increased 2% and 61%, respectively, during the fourth quarter
2005, compared to the same period in 2004. Infrastructure
spending and residential construction continued to drive demand
for cement and ready-mix, with housing starts up 5% for the
first ten months of the year. Growth in the residential sector
continues to be strong, but is beginning to moderate.

Net sales and EBITDA of CEMEX's operations in the United Kingdom
were US$416 million and US$27 million, respectively, for the
fourth quarter. Cement sales volume in the UK decreased 4% for
the fourth quarter and ready-mix volumes decreased 3% for the
quarter versus the same period in 2004.

Other European Markets

During the fourth quarter of 2005, net sales in the Rest of
Europe region were US$749 million and EBITDA was US$88 million.

South/Central America and the Caribbean

CEMEX operations in South/Central America and the Caribbean
reported net sales of US$327 million during the fourth quarter
of 2005, representing an increase of 12% over the same period of
2004. EBITDA decreased 10% for the quarter to US$93 million.

Africa and Middle East

Fourth-quarter net sales in Africa and the Middle East were
US$145, up 213% from the same quarter of 2004. EBITDA increased
97% to US$37 million for the quarter, versus the comparable
period in 2004.

Asia

Operations in Asia reported an increase in net sales of 63% over
the fourth quarter of 2004, to US$78 million, while EBITDA was
US$14 million, up 13% from the same period in the previous year.

CEMEX SA -- http://www.CEMEX.com/ -- is a growing global
building solutions company that provides high quality products
and reliable service to customers and communities in more than
50 countries throughout the world. Commemorating its 100th
anniversary in 2006, CEMEX has a rich history of improving the
well-being of those it serves through its efforts to pursue
innovative industry solutions and efficiency advancements and to
promote a sustainable future.

                        *    *    *

On May 30, 2005, Moody's Investors Service has revised the
ratings outlook on Cemex S.A. de C.V.'s Ba1 ratings to positive
from stable.  Ratings affected include the company's Ba1 ratings
on approximately $110 million in senior unsecured Euro notes and
its senior implied rating.


ELAMEX: Intends to Voluntarily Delist and Deregister Stock
----------------------------------------------------------
Elamex, S.A. de C.V., a diversified manufacturing services
company with food and real estate holdings in Mexico and the
United States, announced that it intends to voluntarily delist
its common stock from NASDAQ at the opening of business on
January 30, 2006.

Simultaneously with delisting, the Company will file a Form 15
with the Securities and Exchange Commission to voluntarily
deregister its common stock under the Securities Exchange Act of
1934, as amended and to suspend its obligation to file reports
under the Exchange Act.  Elamex is eligible to deregister by
filing a Form 15 because it has fewer than 300 holders of record
of its common stock.

Upon the filing of the Form 15, Elamex's obligation to file
certain reports with the SEC, including Forms 10-K, 10-Q, and 8-
K, will immediately cease.

Elamex anticipates that the deregistration of its common stock
will become effective 90 days after the date of filing of the
Form 15 with the SEC.

The Company's shares may be quoted on the Pink Sheets --
www.pinksheets.com -- after it delists from NASDAQ, but the
Company can give no assurances that any broker will continue to
make a market in the Company's common stock.  The Pink Sheets is
a provider of pricing and financial information for the over-
the-counter securities markets.

Richard R. Harshman, Elamex's President and CEO commented, "The
Company's Board of Directors approved the delisting and
deregistration of its common stock after carefully considering
the advantages and disadvantages of continuing registration and
listing.  The costs and administrative burdens associated with
being a public company have significantly increased,
particularly in light of SEC, Sarbanes-Oxley and NASDAQ
requirements.  Our Board has determined that the rising costs of
compliance, as well as the substantial demands on management
time and resources, outweigh the benefits the Company and its
shareholders receive from maintaining its registered and listed
status.  We believe that deregistering will result in
significantly reducing expenses, avoiding even higher future
expenses and will enable our management to focus more of its
time and resources on operating the Company and enhancing
shareholder value."

Elamex, S.A. de C.V. and its subsidiaries are a group of
Companies in Mexico and the United States that provide
manufacturing, packaging and distribution services.  The Company
provides customized manufacturing services in the candy and nut
industry.  The Company's manufacturing machinery and equipment
are located in facilities in Ciudad Juarez, in Mexico, and in El
Paso, Texas in the United States.   The Company is a subsidiary
of Accel, S.A. de C.V., which owns approximately 57.7% of the
Company's issued and outstanding common shares at December 31,
2004.

                    Substantial Doubt

Jorge Jaramillo Elías at Galaz, Yamazaki, Ruiz Urquiza, S.C.,
expressed substantial doubt about the company's ability to
continue as a going concern after auditing the company's Form
10-K filed on Jan. 13, 2006.  The auditor points to the
company's accumulated deficits and net losses for 2003 and 2004.

As of December 31, 2004 and 2003, the Joint Venture has an
accumulated deficit in excess of 100% of its total paid-in
capital.  Under Mexican law, this condition allows the Joint
Venture's partners, creditors or other interested parties to
force the Joint Venture into dissolution.

Initially, the Company had decided upon the sale of its stock.
However, as of September 2005, the Joint Venture's operations
were suspended, which resulted in the termination of a majority
of the Joint Venture's employees and the sale of the majority of
the Joint Venture's machinery and equipment.


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


* Peru, Ecuador Endorsements Pave Way for Continued Free Trade
--------------------------------------------------------------
Recent trade developments in the Americas continue to renew
prospects for a hemisphere-wide trade agreement in some fashion,
even as observers point to the possibility this year that
leftist political movements may come to power in a handful of
Latin American nations.

Enthusiasm for stronger trading partnerships was evident last
week when Gov. Jeb Bush secured endorsements from Peru and
Ecuador that Miami would be their preferred site for the
Permanent Secretariat of a Free Trade Area of the Americas.

Miami "is the best placed location geographically," said Peru's
President Alejandro Toledo. "Our decision is to support the FTAA
there, where it makes the most sense, and even though there are
other candidates, like Panama, Mexico and others, we believe
that Miami can be the headquarters."

President Toledo's continued emphasis on opening Peru's economy
is evident with the just-completed bilateral agreement with the
United States. This, coupled with the exemplary leadership of
Prime Minister Pedro Pablo Kuczynski, who has led Peru to an
impressive 52 consecutive months of economic growth, has set the
stage for a continued strong economy. Elections to succeed
Toledo will be held this April and it will be difficult for the
next leader -- whoever emerges -- to turn Peru's back on the
tremendous progress already made through trading partnerships.
For instance, in 2004, two-way trade between Florida and Peru
alone equaled about $1.2 billion.

In Ecuador, Minister of Foreign Trade Jorge Illingworth Guerrero
said after a meeting with Gov. Bush and Ecuadorian President
Alfredo Palacio that "Ecuador would be in favor of Miami's
candidacy when the FTAA advances."

Support for the FTAA headquarters in Miami from Peru and Ecuador
will help pave the way for additional endorsements in the future
and will clearly assist in the free trade negotiations in the
Andean region and beyond, even though political change may be
forthcoming this year.

Ten nations in the hemisphere, including Haiti, have
presidential or legislative elections scheduled for the
remainder of the year, and leftist movements in some countries
may come to power or gain support.  But it is mistaken to
interpret leftist gains -- however few they may be -- as a sign
that the FTAA or something like it cannot move forward.

One newly elected leader this year, President-elect Michelle
Bachelet of Chile, has shown that even left-leaning candidates
can be pragmatists about trade.

Since her election, President Bachelet has stated that she would
support the FTAA and would work to ensure that it "takes into
account the diversity and differences among the various
countries in the region."

President Bachelet is not an anomaly.  In Brazil, the populist
President Lula da Silva has embraced open trade -- albeit a
"wait and see" attitude toward FTAA -- and in Uruguay, the
nation's top economic official has announced that a trade
agreement would be negotiated with the U.S. outside the current
Mercosur bloc of key South American nations, causing Paraguay to
also begin to look at free trade rather differently.

Certainly, there are exceptions to the pragmatists from the
left, namely Hugo Chavez of Venezuela, who relies on his
nation's oil riches, but the anti- FTAA cabal is weak compared
to those nations that see the value of a hemisphere-wide
community of trade.

During last fall's Summit of the Americas in Argentina, 29 of 34
nations renewed their commitment to moving forward with the FTAA
"of the willing," a resounding defeat for Chavez who failed to
live up to his own pre-summit boasting that he would bury the
FTAA.

And even four of the five countries that did not favor FTAA at
the time -- Brazil, Argentina, Paraguay and Uruguay -- were not
outrightly opposed to an agreement; they wanted more time to see
how the Doha Round of multilateral talks on global trade pans
out.

A greater urgency is emerging to pull together in a hemisphere-
wide agreement because of the influence of China. An FTAA of the
willing would allow nations to form an integrated front to
compete with China in world markets.

Regardless of the political circumstances this year, the reality
and promise of free trade make it all the more critical for
Miami to continue its aggressive pursuit of the FTAA
headquarters, however an alliance is formed. After all, the
European Union was not created overnight and the expectations
that an FTAA in whatever fashion could not evolve -- just as the
EU has done - - is unrealistic.

Whether the trade block is composed of fewer nations, those
interested and willing to be a part of the inevitable
integration, or whether the FTAA is repackaged with a new name,
the results will be the same.  For this reason Miami and Florida
must remain on course and continue to be at the forefront of
this new economy.

In the meantime, free-trade agreements -- such as DR-CAFTA,
U.S.-Peru, the ongoing U.S.-Andean negotiations, the U.S. Panama
bilateral and possible talks with Uruguay -- can serve as
stepping stones to a broader FTAA pact.

Along the way, Florida's economy will continue to benefit as the
number- one trading partner of every country in Latin America
and the Caribbean, except for Mexico. Taken as a whole, the
region represents nearly 60% of Florida's total international
trade and the state handles over 50% of the nation's trade
activity with Latin America and the Caribbean.

Drawing nations together behind a common commitment for a
hemispheric community of trade will be no small feat. But any
effort must rely on the expectation that most leaders --
wherever their placement along the political spectrum -- are
sensible enough to recognize that for their economies to grow
and for millions to move out of poverty, their doors cannot be
closed to trading partnerships throughout the Americas.

Jorge L. Arrizurieta is President of Florida FTAA, Inc., and
former United States Alternate Executive Director of the Inter-
American Development Bank.


=====================
P U E R T O   R I C O
=====================


G+G RETAILS: Receives Higher Offer for Assets from BCBG
-------------------------------------------------------
BCBG Max Azria Group Inc. submitted to the U.S. Bankruptcy Court
for the Southern District of New York an offer to buy
substantially all of the assets of bankrupt company, G+G Retail
Inc.

BCBG also asked the Court to reject an asset purchase agreement
the Debtor has with Wet Seal Inc.  As previously reported, G+G
filed for chapter 11 protection to effectuate the sale of its
assets to Wet Seal for $15.2 million.

Part of BCBG's offer is the payment of $22 million of the
Debtor's unsecured debt over a five-year period.  Additionally,
BCBG says it will provide $20 million worth of fresh inventory
and rehire more than half of the retailer's terminated
employees.

Headquartered in New York, G+G Retail, Inc., aka G+G Retail of
Puerto Rico -- http://gorave.com/and http://www.goravegirl.com
-- sells ladies wear and operates 566 stores in the United
States and Puerto Rico under the names Rave, Rave Girl and G+G.
The Company filed for chapter 11 protection on Jan. 25, 2006
(Bankr. S.D.N.Y. Case No. 06-10152).  William P. Weintraub, Esq.
Laura Davis Jones, Esq., David M. Bertenthal, Esq., and Curtis
A. Hehn, Esq., at Pachulski, Stang, Ziehl, Young & Jones
P.C.When the company filed for protection from its creditors, it
estimated more than $100 million in assets and estimated $10
million to $50 million in debts.


MUSICLAND HOLDING: Wants Retail Consulting as Real Estate Expert
----------------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates seek the U.S.
Bankruptcy Court for the Southern District of New York's
permission to employ Retail Consulting Services, Inc., as their
exclusive real estate consultant to provide an expedited
analysis of their leasehold interests.

It is essential for the Debtors to be able to confirm their
internal analysis as to the value and liability for ongoing
leaseholds.  In addition, the Debtors need assistance with
regard to lease renegotiations, marketing, and the disposition
of certain real estate leases.

The Debtors selected RCS because of its considerable expertise
and experience as real estate consultants.  The Debtors believe
that the services to be provided by RCS is essential to their
efforts as debtors-in-possession and to maximize the value of
their assets for the benefit of their creditors.

As real estate advisor, RCS will:

    (a) prepare a Lease Portfolio Book organized by landlord and
        by store, showing:

        * current lease terms,
        * sales,
        * profits, and
        * occupancy cost and store contribution percentages
          relative to sales;

    (b) assist in the analysis of rejection claims;

    (c) contact landlords to negotiate items like rent cutback,
        term modifications, lease extensions and other necessary
        modification for the Debtors' leasehold properties;

    (d) work with landlords, the Debtors and the Debtors'
        advisors to document accurately all lease modification
        proposals and provide timely status reports that will
        reflect current progress;

    (e) attend and participate in all Court hearings and
        meetings when requested by the Debtors;

    (f) perform desktop leasehold valuations for leases
        identified by the Debtors;

    (g) negotiate waivers, reductions or payout terms for
        prepetition cure amounts;

    (h) conduct negotiations with respect to mitigating
        landlords' rejection damage claims;

    (i) provide marketing and disposition functions, including:

        * reviewing all pertinent documents and consulting with
          Debtors' counsel;

        * creating a marketing program and budget which may
          include newspaper, magazine or journal advertising,
          letter or flyer solicitation, placement of signs,
          direct telemarketing, e-mail, fax blasts and other
          marketing methods;

        * utilizing all professional contacts, mailing lists and
          other resources available to market the Debtors'
          disposition properties;

        * creating an active market and auction process for the
          disposition properties and working on behalf of the
          Debtors to negotiate and get the best terms and prices
          for the disposition properties;

        * preparing and disseminating marketing materials;

        * communicating with parties who have expressed an
          interest in a disposition property, endeavoring to
          locate additional parties who may have an interest in
          the purchase of a disposition property and providing
          the Debtors an updated list of parties which have
          expressed interest;

        * responding to and providing information necessary to
          negotiate with and solicit offers from prospective
          purchasers or settlements from landlords and making
          recommendations to the Debtors as to the advisability
          of accepting particular offers or settlements;

        * meeting periodically with Debtors, its advisors and
          attorneys, in connection with the status of its
          efforts, and providing guidance to the Debtors in
          resolving issues and problems pertaining to the
          disposition of Disposition Properties;

        * coordinating and organizing the public bankruptcy
          hearing or auction and obtaining the attendance of all
          interested parties through direct communications;

        * working with the attorneys responsible for the
          implementation of the proposed transaction, reviewing
          documents, negotiating and assisting in resolving
          problems;

        * appearing in Bankruptcy Court to testify or consult
          with Debtors in connection with the marketing or
          disposition of a Disposition Property; and

    (j) provide advice regarding other real estate matters.

The Debtors believe that RCS' services will not duplicate the
services other professionals may provide.

Prior to the Petition Date, the Debtors paid RCS a $125,000
non-refundable retainer fee as full payment for all analysis and
consulting services.

RCS will be paid $125,000 per month for lease renegotiations,
rejection claim analysis, and waiver or reduction of prepetition
cure amounts, starting January 1, 2006 until the termination of
the agreement, or unless ordered by the Court.

Upon closing of a transaction that disposes of any or all of the
Disposition Properties, a Consultant will receive:

    * 4% of the total amount of money paid to the Debtors, if no
      broker is used; or

    * 5% of gross proceeds if a co-broker is used.

Ivan L. Friedman, president of RCS, assures the Court that RCS
is a disinterested person within the meaning of Section 101(14)
of the Bankruptcy Code and as required by Section 327(a) of the
Bankruptcy Code.  Mr. Friedman asserts that RCS holds no adverse
interest to the Debtors or their estates.

Furthermore, RCS has no connection with the Debtors, their
creditors or their related parties except as disclosed, Mr.
Friedman says.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they
estimated more than $100 million in assets and debts.
(Musicland Bankruptcy News, Issue No. 3; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


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


DIGICEL: TSTT Denies Causing Interconnection Delays
---------------------------------------------------
As previously reported, Digicel Limited said in reports that the
company has incurred million of losses due to interconnection
delays with the Telecommunications Services of Trinidad and
Tobago.

Digicel invested approximately US$1 billion in the Caribbean,
with about US$200 million spent in Trinidad and Tobago.

According to Digicel, its infrastructure network is ready to
start operating as soon as the interconnection delay will be
hammered out.

In a separate interview, TSTT denied any responsibility for
Digicel's losses.

"Digicel took a business risk in its strategy to position
themselves as ready to enter the Trinidad and Tobago market
ahead of receiving a concession," said TSTT's Vice-President,
Legal, Regulatory and Carrier Services Lisa Agard in a prepared
statement.  "Most operators entering a market usually wait until
they have a concession before they make financial commitments
because until a concession has actually been issued, anything
can happen to jeopardise your investment."

Ms. Agard added that Digicel should take a closer look at its
strategy instead of blaming TSTT.

Digicel is the largest provider of wireless telecommunications
in the Caribbean with over 1.7 million subscribers and LTM
revenues of $477 million.

Digicel's $300 million 9-1/4% senior notes due Sept. 1, 2012, is
rated B3 by Moody's and B by Fitch.


RBTT FINANCIAL: Reports Results for the Quarter Ended Dec. 31
-------------------------------------------------------------
Peter J. July, Group Chairman, RBTT Financial Holdings Ltd.,
announced pre-tax earnings of $804 million and profit
attributable to shareholders for the nine months ended December
31, 2005, of $652 million.  The latter represents an increase of
$63 million or 11 per cent over the comparable period in 2004.
Fully diluted earnings per share also increased by 10 per cent
from $1.72 to $1.90.

Total assets increased by $4.9 billion or 13% to $43.5 billion
during the nine month period, with loans and advances to
customers growing by $2.0 billion or 12% to $18.9 billion as
RBTT continued to increase market share in its larger markets.
Investment securities also increased by $2.2 billion or 18% to
$14.6 billion.  Asset growth was attained through strong organic
growth in all the jurisdictions in which the Group operates.

These results include a number of factors which impacted the
second and third quarters.  The most significant of these were:

   (a) an impairment charge of $39 million arising from the
       restructuring of the Government of Grenada debt,

   (b) losses of $46 million on structured products and other
       securities in investment portfolios,

   (c) reversal of accrued interest of $19 million on a
       nonperforming account, and (d) the Group's adoption of
       IFRS 2 - Share-Based Payment which resulted in a charge
       of $12 million.

Shareholders' Equity was also impacted by unrealised mark to
market losses as a result of changes in the fair value of RBTT's
investment portfolio.  The Retail and Commercial Banking and
Trust and Asset Management Business segments performed very well
and achieved strong year on year growth in pre-tax earnings of
19 per cent and 37 per cent respectively.  The investment
banking business, on the other hand, registered a decline in
business volumes and profits over the prior year, as a result of
changes in regional market conditions and narrowing spreads as
new entrants competed in the market.

Mr. July said there is a positive outlook for the fourth
quarter. He added that steps are being taken to solidify RBTT's
position in the investment banking market, which are expected to
bring good results.  It is also expected that the strong profit
trend in the Retail and Commercial Banking and Asset Management
segments will continue as the Organisation upgrades its systems
and enhances the customers' experience.

RBTT Financial Holdings Limited is a financial services
conglomerate consisting of 35 subsidiaries and associated
companies located in 12 legal jurisdictions in the Caribbean
region, including 10 licensed commercial banks with 84 branches.
The group's major subsidiaries include RBTT Bank Limited and
RBTT Merchant Bank Limited, a leading regional merchant bank.

                        *    *    *

Fitch assigns its BB+ rating on RBTT Financial Holdings
Limited's foreign currency long-term debt.  Fitch also places a
B rating on the company's foreign currency short-term debt.


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


CANTV: Loses US$49 Million Suit Against Conatel
-----------------------------------------------
The US$49 million lawsuit that Venezuela's Compania Anonima
Nacional Telefonos de Venezuela aka CANTV filed against telecoms
regulator Conatel was dismissed by the Supreme Court on Friday,
Business News reports.

Cantv had sued Conatel, claiming that the regulator did not
adjust basic residential telephony rates in 2003, Business News
relates.

The country's Supreme Court, however, said that the regulator
was prevented from adjusting the rates because telephony
services had been declared a basic necessity, and argued that
setting the maximum telephony rates telecommunications companies
are permitted to charge falls under the jurisdiction of the
ministry of light industry and commerce, which is the office of
production and commerce.

Compania Anonima Nacional Telefonos de Venezuela, CANTV, offers
telecommunications services.  The Company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.

                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon and Sheryl Joy P. Olano,
Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *