TCRLA_Public/060203.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

          Friday, February 3, 2006, Vol. 7, Issue 25

                            Headlines

A R G E N T I N A

AEROLINEAS ARGENTINAS: Continues Investments on Fleet Renovation
COFAIN COOPERATIVA: Has Until Feb. 6 to File General Report
COMPANIA DE COMUNICACION: Claims to be Presented on Feb. 6
COPOLYMERS S.R.L.: Individual Reports Due on February 6
CST: Secures US$30 Million Loan from Acindar Industria

DENCER S.R.L.: Trustee Will Present Individual Reports Feb. 6
PROAMAR S.A.: Individual Reports Submission Due February 6


B E R M U D A

ALEA GROUP: Releasing Results for 2005 Financial Year by April 4


B O L I V I A

REPSOL YPF: Lowers Bolivian Oil & Gas Reserves by 25%


B R A Z I L

ABN AMRO: Reports US$202 Million of Profits in Fourth Quarter
ACINDAR INDUSTRIA: Loans US$30 Million to CST
BANCO PANAMERICANO: S&P Assigns 'B' Senior Unsecured Debt Rating
CVRD: Investing US$135 Million in Hydro Generation This Year
FURNAS: Investing $587-Mil in Generation & Transmission Projects

UNIBANCO: Moody's Upgrades Financial Strength Rating to C-
USIMINAS: Congress Panel of Inquiry Wants Financial Documents


C A Y M A N   I S L A N D S

ANGELHAIR INVESTMENTS: Verification of Claims Ends on Feb. 24
BLUE ANCHOR: Liquidator to Stop Verifying Claims on February 24
CITADEL HOLDINGS: Claims Verification Ends on February 24
SOLIS SPLENDOR: Creditors Have until Feb. 24 to Submit Claims


C O L O M B I A

BANCOLOMBIA: Exploring Business Opportunities in Other Nations


E C U A D O R

* Moody's Affirms Caa1 Rating, Debt Outlook Raised to Positive


E L   S A L V A D O R

MILLICOM INTERNATIONAL: Buys Out 3 Minority Partners in Africa


G U Y A N A

* GUYANA: IMF Completes Fifth Review of PRGF Arrangement


J A M A I C A

KAISER ALUMINUM: Welcomes Back Thomas Gannon as VP


M E X I C O

AXTEL: Investing US$25 Million to Expand Network in La Laguna
BANORTE: INB's 70% Acquisition Won't Affect Ratings, S&P Says
CEMEX: Eyeing China and India for Future Expansions


P A N A M A

CORPORACION UBC: S&P Assigns Lower 'BB' Credit Rating


P U E R T O   R I C O

ANGEL BERRIOS: Issues Case Summary, Largest Unsecured Creditors
MUSICLAND HOLDING: Receives Court Approval to Close 341 Stores
MUSICLAND HOLDING: Hires BMC as Claims Agent on Interim Basis


V E N E Z U E L A

COFAC: Bandes Says US$8 Million Financing Deal Not Signed Yet

     -  -  -  -  -  -  -  -

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

AEROLINEAS ARGENTINAS: Continues Investments on Fleet Renovation
----------------------------------------------------------------
Aerolineas Argentinas is continuing the development of its
investments plan on fleet renovation, which will imply a global
amount of 1,625 million pesos for the 2004/2009 period.

To the Boeing 737/500 units planned -- 10 of which will be in
service late February this year -- 5 other airplanes of the same
type will be added.  The 737/500 fleet will add up to 20
airplanes by the end of 2006.  The fleet will be used to serve
domestic and regional destinations.

Meanwhile, the arrival of another Boeing 747/400 is being
negotiated.  The airplane will be added to the other three
already in operation, all of which were used for the main
international routes.

The two Airbus 310/300 airplanes will be incorporated to the
flagship airline.  They will provide more service to regional
destinations, and to Buenos Aires-Miami and Buenos Aires-Mexico
routes.

Aerolineas commands 80% of the domestic market.  It has been
renting airplanes from other companies because the absent
mechanics have made it difficult to carry on operations using
its own craft. The Company had to shut down a maintenance center
in Bahia Blanca.

                        *    *    *

As reported by Troubled Company Reporter on June 15, 2000,
Aerolineas Argentinas needed a $650 million capital injection
and sweeping cost cuts to save it from bankruptcy.  Aerolineas'
biggest shareholder covered a bulk of its losses, which Spanish
sources put at $300 million in 2000.

                        *    *    *

Aerolineas Argentinas defaulted on a US$50 million bonds due
on December 23, 2003.


COFAIN COOPERATIVA: Has Until Feb. 6 to File General Report
-----------------------------------------------------------
The deadline for the submission of the general report on the
insolvency case of Cofain Cooperativa Limitada will be on Feb.
6, 2006.

The verification of creditors' claims for the insolvency case
ended on Sept. 30, 2005.  The validated claims were submitted in
court as individual reports on Oct. 14, 2005.

An informative assembly is yet to be scheduled.

The company's insolvency case started when Court No. 1 of
Salta's civil and commercial tribunal approved the company's
petition to reorganize and appointed Mr. Victorio Manuel Duarte
as trustee.

Cofain Cooperativa Limitada can be reached at:

         Avda. Independencia 910
         Ciudad de Salta (Salta)

Mr. Victorio Manuel Duarte, the trustee, can be reached at:

         Balcarce 472
         Ciudad de Salta (Salta)


COMPANIA DE COMUNICACION: Claims to be Presented on Feb. 6
----------------------------------------------------------
The individual claims of the creditors of bankrupt company
Compania de Comunicacion Digital S.A. will be presented in court
as individual reports on Feb. 6, 2006.  The claims were
validated by the trustee, Ms. Maria Cenatiempo, until Nov. 23,
2005.

The trustee will also prepare a general report on the case and
submit it in court on March 20, 2006.

Ms. Cenatiempo was appointed to supervise the bankruptcy of
Compania de Comunicacion Digital S.A. by Buenos Aires' civil and
commercial court.

Ms. Maria Cenatiempo, the trustee, can be reached at:

         Avda. de Mayo 1365
         Buenos Aires


COPOLYMERS S.R.L.: Individual Reports Due on February 6
-------------------------------------------------------
The deadline for the individual reports on the claims of
Copolymers S.R.L.'s creditors will be on Feb. 6, 2006.  The
claims underwent a verification phase until Nov. 23, 2005.

A general report on the case is expected in court on March 20,
2006.

A Buenos Aires court declared Copolymers S.R.L. bankrupt after
the company defaulted on its debt payments.  The bankruptcy
order effectively placed the company's affairs as well as its
assets under the control of court-appointed trustee, Daniel
Ernesto Altman.

Copolymers S.R.L. can be reached at:

         Estomba 2373
         Buenos Aires

Mr. Daniel Ernesto Altman, the trustee, can be reached at:

         Parana 774
         Buenos Aires


CST: Secures US$30 Million Loan from Acindar Industria
------------------------------------------------------
As previously reported, Brazilian Acindar Industria Argentina de
Aceros SA disclosed its intention to lend US$30 million to
Argentine CST, aka Companhia Siderurgica de Turbarao SA.

Business News Americas reports that Acindar has already made the
US$30 million loan to CST on January 19.  The loan will mature
within 720 days.  CST reported the transaction to the Buenos
Aires stock exchange.

CST did not say on its statement where it will use the fund it
got from Acindar.

                       About Acindar

Headquartered in Buenos Aires, Argentina, Acindar Industria
Argentina de Aceros S.A., manufactures and sells iron and steel
in all forms, mainly rolled steel for construction, wire rod,
galvanised wire (plain, barbed and netting), black wire, black
and galvanised pipes, structural shapes and special steels.

                         About CST

CST, aka Companhia Siderurgica de Turbarao SA, is part of
Brazilian steelmaking group Arcelor Brasil, a subsidiary of
Luxembourg-based steel company Arcelor.

                        *    *    *

As previously reported on May 12, 2005, Fitch Ratings upgraded
the foreign currency rating of Brazilian steel producer
Companhia Siderurgica de Tubarao to 'BB' from 'BB-' and assigned
a rating of 'BB' to CST Overseas. Fitch also affirmed CST's
local currency rating of 'BBB-' and the company's national scale
rating of 'AA-' (bra).  The Rating Outlook for all the above
mentioned ratings is Stable.

CST's and CST Overseas' (collectively, the company) foreign
currency ratings of 'BB' exceed both Brazil's foreign currency
rating and country ceiling by one notch. These ratings reflect
the company's strong steel exporting business and associated
hard currency generation. Along with these factors, the
company's low leverage and strong liquidity position with
substantial cash balances abroad further help mitigate transfer
and convertibility risks associated with the sovereign.

                        *    *    *

As previously reported on Dec. 23, 2005, Fitch Argentina
Calificadora de Riesgo S.A. maintained the 'D(arg)' rating given
to a total of US$100 million of corporate bonds issued by long
steelmaker Acindar Industria Argentina de Aceros.

Comision Nacional Valores(CNV), the country's securities
regulator, relates that the rating action was based on the
Company's finances as of Sep. 30, 2004.

The bonds, which matured in February 16 last year, are described
as "Obligaciones Negociables simples, no 5.8.96."

The Company is involved in the production of non-flat steel
products such as steel pipe, cable, hot-rolled and cold-drawn
steels for concrete, forged bars and blocks for distributors of
steel products, other steel companies, manufacturers of original
equipment for several industrial sectors including the
automotive and the oil and gas industries and end users, mainly
in the construction and agricultural sectors of the economy. Its
principal market is Argentina, although it exports its products
to Brazil, Chile and the United States, Bolivia and Uruguay
through its sales office, said the Financial Times.


DENCER S.R.L.: Trustee Will Present Individual Reports Feb. 6
-------------------------------------------------------------
Mr. Ricardo Bataller, the trustee appointed by the Buenos Aires
court for the liquidation of Dencer S.R.L., will present the
individual reports on the claims of creditors on Feb. 6, 2006.
The presentation of the reports in court followed the claims
verification, which ended on Nov. 23, 2005.

Mr. Bataller will also submit a general report on the case on
March 20, 2006.

Dencer S.R.L. can be reached at:

         Avda. Cordoba 2088
         Buenos Aires

Mr. Ricardo Bataller, the trustee, can be reached at:

         Junin 684
         Buenos Aires


PROAMAR S.A.: Individual Reports Submission Due February 6
----------------------------------------------------------
The individual reports on the verified claims of creditors of
bankrupt Proamar S.A. will be submitted on Feb. 6, 2006.  Buenos
Aires accountant Leandro Villari, the court-appointed trustee,
is tasked to prepare the reports.

The claims underwent verification phase, which lasted until Dec.
5, 2005.  Creditors who were not able to present their claims to
the trustee will be excluded from any distribution or payments
that the company would make.

The submission of the general report should follow on March 30,
2006.

Mr. Leandro Villari, the trustee, can be reached at:

         Talcahuano 316
         Buenos Aires


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


ALEA GROUP: Releasing Results for 2005 Financial Year by April 4
----------------------------------------------------------------
Alea Group Holdings Ltd. expects to release on April 4, 2006,
its financial results for 2005.

The company disclosed transition into a run-off in the fourth
quarter of 2005.  The revised strategy is expected to preserve
value for shareholders through pro-active management of its
insurance and reinsurance contracts.

The insurer has been moved into run-off as a result of the
inability to attract a suitable volume and quality of business
following a downgrade from A.M. Best rating agency in the third
and fourth quarters of 2005.

The company forecasts a $240 million after-tax loss and may
breach an agreement with its lenders after closing to new
business because of storm losses and U.S. claims.

                        *    *    *

On Jan. 31, 2006, A.M. Best Co. downgraded the financial
strength rating to B from B++ and the issuer credit rating to
"bb" from "bbb" of the insurance and reinsurance operating
subsidiaries of Alea Group Holdings (Bermuda) Ltd. (collectively
referred to as Alea Group or Alea).

The rating applies to Alea London Limited, Alea (Bermuda)
Limited, Alea Europe Limited, Alea North America Insurance
Company, Alea North America Specialty Insurance Company, Alea
Global Risk Limited and Alea Jersey Limited. The outlook for all
ratings remains negative.  Subsequently, A.M. Best has withdrawn
all ratings and has assigned an NR-4 (Company Request) to the
Alea Group companies.

The downgrade follows significant deterioration in the company's
consolidated risk-adjusted capitalisation as a result of worse
than anticipated performance in 2005 due to run-off charges,
catastrophe losses and further adverse reserve development. A.M.
Best believes that the company is likely to continue to be
affected by high expenses related to the transition of Alea
Group into run off and the continuing possibility of adverse
reserve development.


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


REPSOL YPF: Lowers Bolivian Oil & Gas Reserves by 25%
-----------------------------------------------------
Repsol YPF SA lowered its proven reserves by 25% to 1.25 billion
barrels of oil due to alleged political uncertainy in Bolivia
and technical reassessments of gas fields in that region, Keith
Johnson at the Wall Street Journal reports.

Reserves are the estimate of oil and natural gas a company has
in the ground and expects to eventually pump and sell.  They
serve as a crucial metric for oil-company investors trying to
gauge a company's growth prospects.

The company's move underscores how recent moves by several
resource-rich countries to wring out better terms for themselves
have hit the oil industry, Mr. Johnson states.

"It's a tough pill to swallow, but I feel a lot more comfortable
about our position today than I did yesterday," Repsol Chairman
and Chief Executive Antonio Brufau said.  The company said it
created an independent committee to audit its reserves in early
2005 after a management shake-up.  The committee is finalizing
the full audit of all Repsol reserves.

Mr. Johnson relates that big oil companies have struggled
recently to add to their reserves.  At the same time, energy-
rich countries have moved aggressively to alter the terms of
their relationships with oil companies to take better advantage
of today's high oil prices.

According to Repsol, over half of its write-downs came in
Bolivia, where Repsol lowered its proven reserves by 659 million
barrels of oil equivalent.  In 2005, the Bolivian government
there sharply increased royalties, making some projects
"economically unviable," Repsol said.  More recently, newly
installed leftist President Evo Morales has suggested he will
further tighten control of the country's oil industry.

"We want to be a long-term investor in Bolivia, but we need the
rules of the game to be clear," Mr. Brufau told the Journal.

Repsol also said some gas fields in Bolivia are losing pressure
faster than expected, prompting a downward revision.  The
company froze $400 million of capital expenditure earmarked to
boost gas output in Bolivia.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish oil company Repsol YPF's local subsidiary YPF S.A.
Moody's upgraded YPF's senior unsecured rating to Ba3 from B1
and the unit's domestic currency issuer rating to Baa2 from
Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.


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


ABN AMRO: Reports US$202 Million of Profits in Fourth Quarter
-------------------------------------------------------------
ABN Amro Real S.A., the Brazilian unit of Dutch ABN Amro (NYSE:
ABN), reported a 92% increase in fourth quarter net operating
profit, Business News Americas reports.  The bank attributes the
increase to a large fall in taxes.

Net operating profit was 167 million euros (US$202 million)
compared with 87 million euros for the same period the previous
year, ABN Amro said in a statement.  Full year profits more than
doubled to 644 million euros.

Net interest income for the quarter rose 86% to 675 million
euros thanks to a 31% increase in retail banking loans.  Net
non-interest income fell 2% to 166 million euros.

"In Brazil we believe that the inverse yield curve that we have
been confronted with for quite some time will diminish over the
year and with the combination of substantial [loan] growth will
lead to higher net interest income," ABN Amro managing board
member Tom de Swaan was quoted saying during a conference call.

Bad loan provisions jumped 140% to 125 million euros due to
strong loan growth, while taxes dropped 90% to 6 million euros.

Assets grew 69% to 23.7 billion euros as the bank focused on
growing its loan portfolio after dedicating much of 2004 to
improving credit scoring and collection procedures.

ABN Amro Real is Brazil's seventh largest bank, operating
through more than 1,200 branches.

                        *    *   *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco ABN
Amro Real S.A.'s long-term foreign currency deposit rating to B1
from B2.  Moody's maintained a positive outlook on the rating.

This action followed Moody's upgrade of Brazil's foreign
currency ceiling for deposits to B1, from B2, and the foreign
currency country ceiling for bonds and notes to Ba3, from B1.
The country ceilings have a positive outlook.


ACINDAR INDUSTRIA: Loans US$30 Million to CST
---------------------------------------------
As previously reported, Brazilian Acindar Industria Argentina de
Aceros SA disclosed its intention to lend US$30 million to
Argentine CST aka Companhia Siderurgica de Turbarao SA.

Business News Americas reports that Acindar has already made the
US$30 million loan to CST on January 19.  The loan will mature
within 720 days.  CST reported the transaction to the Buenos
Aires stock exchange.

CST did not say on its statement where it will use the fund it
got from Acindar.

                       About Acindar

Headquartered in Buenos Aires, Argentina, Acindar Industria
Argentina de Aceros S.A., manufactures and sells iron and steel
in all forms, mainly rolled steel for construction, wire rod,
galvanised wire (plain, barbed and netting), black wire, black
and galvanised pipes, structural shapes and special steels.

                         About CST

CST aka Companhia Siderurgica de Turbarao SA is part of
Brazilian steelmaking group Arcelor Brasil, a subsidiary of
Luxembourg-based steel company Arcelor.

                        *    *    *

As previously reported on May 12, 2005, Fitch Ratings upgraded
the foreign currency rating of Brazilian steel producer
Companhia Siderurgica de Tubarao to 'BB' from 'BB-' and assigned
a rating of 'BB' to CST Overseas. Fitch also affirmed CST's
local currency rating of 'BBB-' and the company's national scale
rating of 'AA-' (bra).  The Rating Outlook for all the above
mentioned ratings is Stable.

CST's and CST Overseas' foreign currency ratings of 'BB' exceed
both Brazil's foreign currency rating and country ceiling by one
notch.  These ratings reflect the company's strong steel
exporting business and associated hard currency generation.
Along with these factors, the company's low leverage and strong
liquidity position with substantial cash balances abroad further
help mitigate transfer and convertibility risks associated with
the sovereign.

                        *    *    *

As previously reported on Dec. 23, 2005, Fitch Argentina
Calificadora de Riesgo S.A. maintained the 'D(arg)' rating given
to a total of US$100 million of corporate bonds issued by long
steelmaker Acindar Industria Argentina de Aceros.

Comision Nacional Valores, the country's securities regulator,
relates that the rating action was based on the Company's
finances as of Sep. 30, 2004.

The bonds, which matured in February 16 last year, are described
as "Obligaciones Negociables simples, no 5.8.96."

The Company is involved in the production of non-flat steel
products such as steel pipe, cable, hot-rolled and cold-drawn
steels for concrete, forged bars and blocks for distributors of
steel products, other steel companies, manufacturers of original
equipment for several industrial sectors including the
automotive and the oil and gas industries and end users, mainly
in the construction and agricultural sectors of the economy. Its
principal market is Argentina, although it exports its products
to Brazil, Chile and the United States, Bolivia and Uruguay
through its sales office, said the Financial Times.


BANCO PANAMERICANO: S&P Assigns 'B' Senior Unsecured Debt Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it
assigned its 'B/B' corporate credit rating to Banco PanAmericano
S.A.  The outlook is stable.  At the same time,
Standard & Poor's assigned its 'B' senior unsecured debt rating
to the company's proposed $50 million bonds to be issued under
the $300 million MTN program with three years' tenor.

"The ratings on PanAmericano incorporate the highly leveraged
balance sheet and the bank's tight liquidity; the increasing
credit risk of its loan portfolio; and the bank's exposure to
the fierce competition and the consequent pressure on margins,"
said Standard & Poor's credit analyst Tamara Berenholc.  These
risk factors are tempered by PanAmericano's long track record of
36 years in the consumer finance segment; the bank's capable
management team, which has successfully led the bank's growth
strategy; and PanAmericano's adequate profitability.

With total assets of BRL2,254 million -- equivalent to $960
million; exchange rate of $1 to BRL2,3496 -- as of June 2005,
Banco PanAmericano is a small bank positioned as the 28th-
largest private bank in  Brazil.  The bank's operations are
primarily focused on the retail segment where the bank has
accumulated its experience.  The consolidated credit portfolio
comprises mainly vehicle financing and consumer finance/personal
loans, which together represented around 75% of total loans
originated as of
September 2005.

The stable outlook reflects our expectation that the bank will
be able to successfully implement its growth strategy while
maintaining asset quality indicators in line with the industry
level.  We also expect the proceeds of the MTNs to be used to
improve liquidity measures, and profitability to be maintained
in the 1.5%-2% area.

The outlook could be revised to negative or the ratings could be
lowered if there is a significant deterioration in the bank's
asset quality ratios, vis-a-vis its current levels; if
profitability ratios deteriorate due to higher credit risk; or
if the bank's liquidity and funding are pressured.

Conversely, the outlook could be revised to positive or there
could be an upgrade if PanAmericano is able to consistently
improve its asset quality indicators while increasing its
profitability and efficiency to levels consistent with its risk
profile, and if the bank maintains strong liquidity measures to
support the vulnerability of its industry.


CVRD: Investing US$135 Million in Hydro Generation This Year
------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD said in a prepared statement
that it plans to make a US$135 million investment in 2006 to
generate hydroelectric power.  The company is investing in power
generation to guarantee lower-cost power supply to its mining
and metallurgy operations.

The investment will fund the 240MW Capim Branco I and 210MW
Capim Branco II hydroelectric projects, in which CVRD owns a 48%
stake.
Minas Gerais state power company Cemig has 21% of Capim Branco I
and II, agriculture company Comercial Agricola Paineiras has 18%
and metallurgy firm Cia Mineira de Metais has 13%.

The Capim Branco I project is scheduled to start operations of
all three of its turbines in the first half of 2006, while Capim
Branco II is scheduled to start the first of its three 70MW
turbines in December 2006 and the other two in 2007, according
to Business News Americas.

CVRD also plans to start construction of the 1,087MW Estreito
project this year if federal environmental protection agency
Ibama grants a full license for the plant.

CVRD has a 30% stake in Estreito.  Brazilian power company
Tractebel Energia has 30% in Estreito, US aluminum maker Alcoa
19.1%, Anglo Australian mining company BHP Billiton 16.5% and
Brazilian civil engineering firm Camargo Correa the remaining
4.4%.

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'.


FURNAS: Investing $587-Mil in Generation & Transmission Projects
----------------------------------------------------------------
Business News Americas confirmed reports that Furnas Centrais
Eletricas S.A. plans to invest 1.3 billion reais (US$587
million) in generation and transmission projects in this year.

The 2006 budget still needs to be approved by Brazil's congress,
a company spokesperson told Business News Americas.  In the
first 11 months of 2005, Furnas invested 842 million reais in
transmission and 285 million reais in generation projects.

Furnas is a subsidiary of Eletrobras - Centrais Eletricas
Brasileiras S.A.  The company operates some 19,000km of
transmission lines and has installed capacity of 9,476MW.

In 2006, the company plans to start operations of the 452MW
Peixe Angical hydroelectric power project, in which it has 40%
stake. Energias do Brasil, the local unit of Portuguese state
power company, has the other 60% of the project, which will cost
about 1.6 billion reais, Business News relates.

                        *    *    *

On Nov. 15, 2005, Standard & Poor's Ratings Services assigned
its 'BB-' rating to Eletrobras - Centrais Eletricas Brasileiras
S.A.'s US$300 million unsecured and unsubordinated notes
due in 2015.  The global scale corporate credit ratings at 'BB-'
foreign currency and 'BB' local currency were also affirmed.
S&P said the outlook is positive.

The positive outlook on the local and foreign currency rating
reflected those of the Federative Republic of Brazil.

                        *    *    *

On Jan. 30, 2006, Moody's Investors Service puts a Ba2 issuer
rating on Furnas Centrais Eletricas S.A.


UNIBANCO: Moody's Upgrades Financial Strength Rating to C-
----------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Uniao de Bancos Brasileiros S.A. aka Unibanco to 'C-'
from 'D+', with a stable outlook.  Moody's affirmed all other
ratings and outlooks assigned to Unibanco S.A.  This action
concluded the review for possible upgrade that was initiated on
November 3, 2005.

Moody's said the upgrade reflects Unibanco's consistently robust
core earnings and management's ability to steer the bank towards
higher-yielding consumer and commercial banking businesses while
maintaining asset quality and controlling costs.  Also, Unibanco
has diversified its distribution channels and reached a broader
customer base.  This has enabled a more balanced asset and
funding mix and improved the bank's cross-selling capability.
These achievements have contributed to earnings stability and
profitability ratios that are consistent with the C minus rating
category.

Moody's noted that the repositioning of Unibanco's business
model has allowed for improved focus on more profitable and less
risky business segments.  As a result of a less volatile asset
mix, which reflects a larger loan book and reduced government
securities portfolio, financial margins have held up, despite
the inherent volatility of Brazil's operating environment.

Unibanco's leadership in consumer credit in Brazil has granted
it the expertise and the platform to benefit from a fast-growing
business segment ahead of its competition.  The bank's adequate
credit origination disciplines and monitoring controls, as well
as its defined risk appetite, give comfort that management will
be cautious about embarking on a down-market lending strategy to
build volume and retain margins.

However, Moody's voices concerns about the fast-growing and
largely unseasoned consumer portfolio, which may result in
poorer asset quality, particularly if the presently benign
operating environment begins to turn.  Therefore, management is
challenged to retain the bank's franchise and loan quality, and
to defend its well established market share in several consumer
segments in light of increasing competition.  In a scenario of
declining interest rates, margins are expected to be pressured,
thus also requiring close monitoring of costs, Moody's added.

The rating agency noted that material deterioration in
Unibanco's market share, or weakening profitability and
deterioration of its asset quality indicators could put downward
pressure on the ratings.  Unibanco's ratings could benefit from
a stronger core deposit base, and sustainable asset quality and
recurring earnings.

Unibanco is headquartered in Sao Paulo, Brazil.  As of September
2005, it had total assets of BRL88.4 billion -- approximately
US$39.7 billion -- and equity of BRL8.9 billion.

The following ratings were affirmed:

Long- and Short-Term Global Local-Currency Deposit ratings of
A3/ Prime -2, with stable outlook

Long- and Short-Term Foreign- Currency Bond ratings of Ba1 and
Not Prime, with positive outlook

Long- and Short-Term Foreign-Currency Deposit ratings of B1/ Not
Prime, with positive outlook

Long- and Short-term Brazil National Scale Deposit ratings of
Aaa.br and BR-1, with stable outlook


USIMINAS: Congress Panel of Inquiry Wants Financial Documents
-------------------------------------------------------------
According to O Estado de Sao Paulo newspaper, Usiminas aka
Usinas Siderurgicas de Minas Gerais SA has been asked by a
congressional commission of inquiry in Brazil to produce
documents verifying its financial movements.  The commission is
probing allegations of corruption in Brazil's postal service.

"Some congressmen said that they received resources from
Usiminas, which the company denies.  We will crosscheck the data
to see to whom the money was sent and where it ended up," O
Estado de Sao Pauolo quoted lawmaker Osmar Serraglio as saying.

"We have marked the request for documentation as urgent," Mr.
Serraglio told O Estado.  "We want to look at the company's
accounting practices in the last five years."

                        *    *    *

As previously reported on Feb. 2, 2006, Standard and Poors'
Rating Services assigned a 'BB' rating on Brazil's largest flat-
steel maker Usinas Siderurgicas de Minas Gerais S.A. aka
Usiminas.

The ratings on Usiminas reflects its exposure to the cyclical
and volatile global steel sector; some reliance on the equally
volatile economic and operating environment of its home market
Brazil; and increasing competition within the Brazilian steel
industry.  These risks are tempered by Usiminas' sound financial
profile, with total debt levels and liquidity currently at very
conservative levels; a solid business profile, made evident by a
very competitive cost structure; resilient operating
profitability and robust free cash generation through economic
cycles; and a favorable market position in the fairly
concentrated flat carbon steel sector in Brazil, in particular
in the higher-end, quality-products segments.

The ratings on Usiminas reflect the consolidated credit quality
of the so-called Usiminas System, consisting of the combined
operating and financial profiles of Usiminas and its wholly
owned subsidiary Companhia Siderurgica Paulista -- Cosipa and
their respective subsidiaries altogether.  The Usiminas System
comprises the largest flat-steel production complex in Latin
America, with a consolidated capacity for 9.5 million metric
tons per year of crude steel and operations in the states of
Minas Gerais and Sao Paulo.  Usiminas' consolidated revenues and
EBITDA amounted to $4.04 billion and $1.84 billion,
respectively, in the nine months of 2005, equivalent to 5.37
million tons shipped.  About 28% of its consolidated shipments
in the period were destined to export markets.


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


ANGELHAIR INVESTMENTS: Verification of Claims Ends on Feb. 24
-------------------------------------------------------------
The verification phase of the claims of Angelhair Investments
Limited's creditors will end on Feb. 24, 2006.  Creditors are
required to send on or before the date their names, addresses,
the particulars of their debts or claims and the names and
addresses of their attorneys-at-law (if any) to the Buchanan
Limited -- the company's liquidator -- and if so required by the
liquidator, the creditors will prove their claims personally or
by their attorneys-at-law at the time and place the liquidator
will specify.

Creditors who fail to have their claims verified will be
excluded from accepting any distribution or payment that the
company will make.

Angelhair Investments Limited started liquidating its assets on
Jan. 12, 2006.

Buchanan Limited, the voluntary liquidator, can be reached at:

         P.O. Box 1170 GT, Grand Cayman

         Timothy Haddleton
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


BLUE ANCHOR: Liquidator to Stop Verifying Claims on February 24
---------------------------------------------------------------
Buchanan Limited, the liquidator appointed for the Blue Anchor
Holdings Corp. voluntary liquidation, will stop accepting and
verifying proofs of claims from the company's creditors on Feb.
24, 2006.  Creditors must therefore send their names, addresses,
the particulars of their debts or claims and the names and
addresses of their attorneys-at-law (if any) to the liquidator
before the date.

The liquidator may require the creditors to prove their claims
personally or by their attorneys-at-law.

Creditors who fail to have their claims validated by the
liquidator will be excluded from the benefit of any distribution
to be made by the company.

Blue Anchor Holdings Corp. started its wind up process on Jan.
12, 2006.

Buchanan Limited, the voluntary liquidator, can be reached at:

         P.O. Box 1170 GT, Grand Cayman

         Timothy Haddleton
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


CITADEL HOLDINGS: Claims Verification Ends on February 24
---------------------------------------------------------
Citadel Holdings Limited's creditors must present on or before
Feb. 24, 2006, proofs of their claim to Buchanan Limited, the
company's liquidator.  Failure to do so would exclude the
creditors from accepting any distribution or payment that the
company would make.

Creditors are required to send in their names, addresses, the
particulars of their debts or claims and the names and addresses
of their attorneys-at-law (if any) to Buchanan Limited, and if
so required by the liquidator, they will prove their claims
personally or through their attorneys-at-law at the time and
place that the liquidator will specify.

Citadel Holdings Limited started wind up operations on Jan. 12,
2006.

Buchanan Limited, the voluntary liquidator, can be reached at:

         P.O. Box 1170 GT, Grand Cayman
         George Town, Grand Cayman

         Timothy Haddleton
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


SOLIS SPLENDOR: Creditors Have until Feb. 24 to Submit Claims
-------------------------------------------------------------
Creditors of Solis Splendor Investments Ltd., a company in
voluntary liquidation, have until Feb. 24, 2006, to present
proofs of claim to Buchanan Limited, the company's liquidator.

Creditors are required to submit their names, addresses, the
particulars of their debts or claims and the names and addresses
of their attorneys-at-law (if any) to the liquidator.  If the
liquidator requires, the creditors will prove their claims
personally or by their attorneys-at-law at the time and place
that the liquidator shall specify.

Creditors who fail to have their claims validated will be
excluded from the benefit of any distribution or payments that
the company would make.

The company entered voluntary wind up on Jan. 12, 2006 and
appointed Buchanan Limited liquidator.

Buchanan Limited, the voluntary liquidator, can be reached at:

         P.O. Box 1170 GT, Grand Cayman

         Timothy Haddleton
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


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


BANCOLOMBIA: Exploring Business Opportunities in Other Nations
--------------------------------------------------------------
Colombia's largest bank --Bancolombia (NYSE: CIB) -- wants to
explore purchase opportunities to grow abroad as it already has
a considerable share of the home market, Chief Executive Officer
Jorge Londono told Business News Americas.

According to Mr. Londono, the bank intends to explore growth
opportunities in Latin America as long as they create value for
stockholders, Business News relates.

"From Rio Grande down south, this region is extraordinarily
attractive, but everything depends on prices.  Bancolombia
already has a significant market share of the Colombian market
and growing through acquisitions does not form part of our
priorities in Colombia today," Mr. Londono said.

Bancolombia holds a 20% market share in terms of assets in
Colombia.  Its international presence consists of two
representative offices in Panama and the Cayman Islands and a
leasing firm operating in Brazil.  The bank's international
leasing unit Suleasing entered the Brazilian leasing industry in
December last year.

"We are only just getting started there. We have moderate growth
expectations as the Brazilian market is enormous, but our know-
how of the business and good international partners make us
optimistic," Mr. Londono said.

Mr. Londono disclosed that the bank expects fully to close the
merger with home-loan provider Conavi and investment bank
Corfinsura by year-end, Business News relates.

"The legal merger is already completed and we believe the final
step of integrating operating and technological platforms will
be finished by year-end. We have already seen cross-selling
between the bank's new mortgage and investment banking units,"
Mr. Londono said.

The merger left Bancolombia with more than 4.68 million clients
compared to 1.83 million beforehand.  In addition the number of
bank branches grew to 665 from 388, ATM's to 1,191 from 594,
employees to 12,000 from 8,609 and outstanding shares to 727
million from 576 million.

                        *    *    *

On Dec. 22, 2005, Fitch Ratings affirmed the ratings
assigned to Bancolombia, as:


  -- Long-term/short-term foreign currency at 'BB/B';
  -- Long-term/short-term local currency at 'BBB-/F3';
  -- Individual at 'C';
  -- Support at '3'.

The ratings assigned to Bancolombia and subsidiaries reflect its
dominant Colombian franchise, sound asset quality, and solid
performance, which should be further strengthened by the recent
merger with Conavi and Corfinsura and, in turn, boost capital,
which weakened with the merger.  The ratings also factor in the
challenges posed by operational integration, its high exposure
to the Colombian government, and the risks inherent in its
operating environment.


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


* Moody's Affirms Caa1 Rating, Debt Outlook Raised to Positive
--------------------------------------------------------------
Ecuador's foreign bond rating outlook was raised to positive
from stable by Moody's Investment Services, citing the
government's success in cutting debt.

Moody's affirmed Ecuador's rating of Caa1, which is seven levels
below investment grade and in line with Cuba, Nicaragua and
Moldova. An improved outlook means Moody's is more likely to
raise Ecuador's rating the next time it conducts a full review
of the country's credit worthiness.

"Key debt indicators have continued to improve," Moody's said in
a statement.

Investors such as Jonathan Binder at INTL Consilium LLC said
they were surprised that Moody's would signal it's considering a
rating increase for the South American country ahead of
presidential elections in October.  Binder said that while a
surge in oil, Ecuador's biggest export, has boosted tax revenue,
the government may keep pushing up spending ahead of elections.

"Given the political history of Ecuador, putting them on
positive watch eight months before an election might prove to be
a little generous, even with high oil prices," Binder, who helps
manage $220 million in emerging-market assets at INTL in Fort
Lauderdale, Florida, said in a telephone interview.

Remain Concerned

Ecuador, which has had three economy ministers since April, was
downgraded in June by Standard & Poor's to CCC+, the lowest
grade among South American countries, on concern increased
government spending would hurt its ability to pay debt.

The yield on Ecuador's benchmark 2012 bond fell to 11.28 today.
It reached as high as 14.14 percent two days after President
Lucio Gutierrez was ousted from office in April on corruption
charges and replaced by Alfredo Palacio, his vice president,
according to JPMorgan Chase & Co.

"We remain concerned about the fiscal accounts and political
noise," said Pablo Goldberg, co-head of Latin America economics
and fixed income strategy at Merrill Lynch & Co. in New York in
a report.  "While oil prices allow for a significant surplus,
there is little savings for rainy days."

Merrill Lynch raised its recommendation on Jan. 27 on Ecuador
sovereign debt to overweight from market weight, citing bonds
that "are cheap at current oil prices."  Goldberg said a decline
in oil prices and an economic recession could put in jeopardy
the nation's use of the U.S. dollar as its currency, a system it
adopted in 2000 after defaulting on $6.5 billion in debt the
year before.


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


MILLICOM INTERNATIONAL: Buys Out 3 Minority Partners in Africa
--------------------------------------------------------------
Millicom International Cellular S.A. announced Wednesday that it
has completed the buyout of its minority partners in MIC
Tanzania Limited and Millicom Sierra Leone Limited.  Millicom
has also reached agreement to cancel a call option on an equity
interest in Millicom Ghana Limited.  Following these
transactions, the company now has 100% ownership in all three
operations.

These transactions will strengthen Millicom's presence in
Africa, where cellular operators continue to see very strong
growth.

Millicom President and Chief Executive Officer, Marc Beuls,
said, "These three transactions are consistent with our stated
strategy of delivering value to shareholders through increasing
our shareholding in our existing operations by buying out
minority partners.  Africa has once again seen particularly
strong growth, and given the relatively low mobile penetration
rates in these markets compared to other regions of the world,
we have every reason to expect that this will continue in the
future."

Millicom currently operates in 7 African countries, and also has
a significant presence in Latin America and Asia.

Millicom has a total population under license of 146 million in
Africa, with a weighted average cellular penetration of just 7
per cent in the African countries in which it operates.

In December 2005, the company had 2 million subscribers in
Africa and this was the fastest growing region for Millicom in
2005, with subscriber growth of 80%.

Millicom will disclose details of its operating and financial
performance for 2005 when it reports full-year results on
February 14th, 2006.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa.  It currently has cellular operations
and licenses in 16 countries.  The Group's cellular operations
have a combined population under license of approximately 391
million people.

Millicom has assets amounting to USD1,522,900,000 and
liabilities reaching USD1,608,200,000.

                        *    *    *

As reported by Troubled Company Reporter on Jan. 24, 2006,
Standard & Poor's Ratings Services placed its 'B+' long-term
corporate credit rating and 'B-' senior unsecured debt ratings
on telecommunications operator Millicom International Cellular
S.A. on CreditWatch with developing implications.


===========
G U Y A N A
===========


* GUYANA: IMF Completes Fifth Review of PRGF Arrangement
--------------------------------------------------------
The Executive Board of the International Monetary Fund has
completed the fifth review of Guyana's economic performance
under its SDR54.55 million -- about US$78.7 million -- Poverty
Reduction and Growth Facility arrangement.  Completion of the
review makes a disbursement in an amount equivalent to SDR9.27
million -- about US$13.4 million -- immediately available to
Guyana.

The Executive Board also approved Guyana's request for waivers
of non-observance of three performance criteria.

Following the Executive Board's discussion of Guyana, Mr.
Takatoshi Kato, Deputy Managing Director and Acting Chair, said,
"Guyana has continued to make progress under the PRGF
arrangement.  The exchange rate remained stable, the external
current account position was better than anticipated, and the
structural reform agenda moved ahead.  However, economic
activity declined sharply in 2005, owing largely to adverse
shocks, and inflation was higher, reflecting the pass-through of
world oil prices."

According to Mr. Kato, the 2005 macroeconomic program was on
track, seen in particular in a solid fiscal performance.  Strong
revenues and delayed spending for the Skeldon sugar
modernization project more than offset an increase in current
and other capital spending and a shortfall in grant
disbursements.

"However, there have been slight delays in completing the tax
exemption study and the five-year rolling Public Sector
Investment Program (PSIP), and in adopting implementing
regulations for the VAT and the excise tax.  Progress has now
been made in all these areas," he stated.

He mentioned that a key focus of the 2006 program is fiscal
retrenchment.  This will require maintaining the revenue effort,
keeping a tight rein on current and capital spending, and
improving the balance sheets of the public enterprises.  It will
be critical for the authorities to resist pressures for
additional spending-especially related to the Cricket World Cup-
and to monitor fiscal developments closely.

Monetary and exchange rate policies, Mr. Kato said, will
continue to be geared to meeting the program's inflation
objectives and maintaining competitiveness.  The recent increase
in inflation underscores the importance of careful adherence to
the program's monetary targets.  The authorities are encouraged
to develop an action plan to strengthen the financial sector, on
the basis of the FSAP recommendations.

Mr. Kato explained that the 2006 program maintains the momentum
of structural reforms.  Preparatory work for the introduction of
the VAT will be intensified to ensure its smooth implementation
after the elections.  Wide-ranging reforms planned in other key
areas will lay the basis for private sector-led growth.

"Sustained fiscal adjustment and a restructuring of the sugar
sector will be critical to cope with pressures on the balance of
payments coming from high world oil prices and the reform of EU
sugar import policies.  While Guyana's debt indicators have
improved-reflecting a better revenue and growth outlook, as well
as the delivery of debt relief under the Multilateral Debt
Relief Initiative, prudent fiscal policies will be needed to
maintain debt sustainability into the future, and to enable the
resources set free under the MDRI to be used effectively in
support of poverty reduction," Mr. Kato said.


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

KAISER ALUMINUM: Welcomes Back Thomas Gannon as VP
--------------------------------------------------
Kaiser Aluminum announced Wednesday the return of Thomas P.
Gannon to the company as vice president of Marketing, Aerospace
and Distribution Products.  Gannon worked previously with Kaiser
Aluminum from 1977 to 1999.

"Tom brings a great deal of knowledge and experience to the
commercial team at Kaiser Aluminum," said Keith Harvey, vice
president, Sales & Marketing, Aerospace & Distribution.  "His
addition will make our organization stronger as we pursue new
growth opportunities and solidify our position in the
marketplace."

Based out of Cleveland, Ohio, Mr. Gannon will report to Mr.
Harvey and help lead the commercial efforts in the marketing of
Kaiser Aluminum's sheet & plate, rod, bar, tube and soft alloy
extrusion products globally.

Mr. Gannon first joined Kaiser Aluminum in 1977 and assumed
progressively higher-level positions in sales and marketing
management, primarily in the company's forgings and extrusions
business.  From 1999 to 2005, he worked at Alcan Corporation,
first as automotive market director and then as vice president,
managing the industrial products and automotive commercial
effort for Alcan's North American rolled products division.

With the subsequent spin-off of the majority of Alcan's rolling
assets into Novelis, Gannon continued as vice president and
maintained the commercial responsibility for over 450 million
pounds annually of rolled product sales.

Mr. Gannon is a recognized leader in the automotive aluminum
industry, serving as chairman of the Aluminum Association's
Automotive Executive Council.  In this position, he leads the
industry efforts to advance aluminum's penetration in the light
vehicle segment.

Mr. Gannon earned a B.Sc. in Educational Communications from
Ithaca College and an MBA from Gannon University.  He brings to
Kaiser Aluminum over 28 years of industry experience.

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


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


AXTEL: Investing US$25 Million to Expand Network in La Laguna
-------------------------------------------------------------
AXTEL, S.A. de C.V., a Mexican telecommunications company, said
in a prepared statement that it will be investing US$25 million
over a five year period to expand its network in the La Laguna
area of Coahuila state.  The company started operating in La
Laguna on Jan. 30.

Axtel's network already covers 85% of La Laguna, which comprises
the cities of Torreo, Lerdo and Gomez Palacio.

As previously reported, Axtel said it plans to invest US$150
million in 2006 to launch services in northern cities of
Chihuahua and Torreon, the port of Veracruz as well as Irapuato
and Celaya in central Mexico.

As previously reported, the company has decided to exercise an
option to buy back 35% of bonds issued in 2003 and 2005 using
resources obtained in a recent IPO on the Mexico City stock
exchange.  The resources would enable the company to cut its
debt load by US$87.5mn to US$162.5mn from US$250mn.

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.
The company has 600,000 installed lines.  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.


BANORTE: INB's 70% Acquisition Won't Affect Ratings, S&P Says
-------------------------------------------------------------
Credit ratings agency Standard & Poor's said in a report its
BB+/positive/B ratings on Mexican bank Banorte will not be
affected by its acquisition of 70% of Texas-based Inter National
Bank for US$259mn.

The S&P does not expect the acquisition materially to change the
financial profile of Banorte due to INB's small size.  The
negative impact on Banorte's capital ratios will not be
significant due to the bank's profitability and accumulation of
capital.


CEMEX: Eyeing China and India for Future Expansions
---------------------------------------------------
John Lyons, writing for the Wall Street Journal, relates that
Cemex SA de CV of Mexico has its eyes on India and China for
potential acquisitions.

Cemex has only recently acquired Britain's RMC Group for $5.8
billion, doubling the company's size and making it the world's
biggest ready-mix concrete maker.

"China and India are very interesting because they are large,
fast-growing economies," Chief Executive Lorenzo Zambrano told
Mr. Lyons in an interview in Monterrey, Mexico.

Mr. Zambrano disclosed during his interview that the company has
a full-time analyst researching the Chinese market for potential
acquisitions -- on top of a regular market-intelligence team
that flies in and out of the country as needed. "Right now, we
have terabytes of information on China," he said.  Mr. Zambrano
also said he has no intention of rushing into an acquisition in
either India or China, which he described as highly complex
markets that would be expensive to enter, with their sheer size
demanding an initial investment of at least $1 billion.

"The problem is, so far, everyone who has gone into China or
India has had difficulty," Mr. Zambrano said. "You need to
figure out how to do it first."

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 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.


===========
P A N A M A
===========


CORPORACION UBC: S&P Assigns Lower 'BB' Credit Rating
-----------------------------------------------------
Standard and Poor's Ratings Services assigned a lower 'BB'
credit rating with a stable outlook to Corporacion UBC
Internacional S.A. y Subsidiarias, a holding company
incorporated in Panama.

Major Rating Factors

Strengths:

    -- Important position in Central America
    -- Adequate integration of acquisitions
    -- Increasing regional diversification

Weaknesses:

    -- Some profitability measures follow a downward trend
    -- Low capitalization level compared to rated peers
    -- Low economic growth prospects for the region

Rationale

S&P's ratings on UBCI are constrained by its increased presence
in markets that have a lower risk rating than El Salvador's,
such as Guatemala and Costa Rica, and by strong banking
competition in Panama.  The ratings are underpinned by Banco
Cuscatlan S.A.'s brand expansion in Central America and the good
earnings generation capacity of UBCI's subsidiaries.  The
ratings incorporate the holding company's structural
subordination to its subsidiaries.

Although UBCI and its subsidiaries have adequate standards in
loan origination and prudent management of provisions, the large
portion of foreclosed and nonperforming assets from Cuscatlan
negatively affect UBCI's asset quality indicators.

In addition, UBCI is entering banking markets -- in Costa Rica
and Guatemala -- that we view as economically more volatile than
El Salvador's market.  Risks in those countries include high
foreign exchange exposure for the banking industry on the loan
book, as most loans in the banking system are granted in US
dollars to borrowers with limited or nonexistent dollar income.
Nevertheless, UBCI's dollar exposure in those countries is
currently lower than the industry average and is not a
significant risk in the group's total asset portfolio.

UBCI has investments in banking and other financial subsidiaries
in El Salvador, Panama, Guatemala, Costa Rica, and Honduras.
These subsidiaries operate under the Cuscatlan brand name, of
which the largest operations are in El Salvador, where the group
originated.

On a consolidated basis, UBCI had total assets of $4.8 billion
at September 2005, making it the second-largest financial
conglomerate in Central America and in Panama.  The ratings
assigned on the holding company, one notch below those of its
main subsidiary, Banco Cuscatlan S.A. (BB/Stable/B) in El
Salvador, reflect the structural subordination of the holding
company to its largest operating subsidiary.

Banco Cuscatlan and its intermediate holding company --
Inversiones Financieras Cuscatlan -- represent most of the loans
and profits at UBCI, at 53% and 45%, respectively, as of
September 2005.  The group's future strategy is to enhance its
presence in Central America.  We expect the holding company's
reliance on its Salvadorian operation to be further reduced
eventually as operations in other countries grow, but this
reliance on El Salvador will remain predominant.

The group's growth is expected to come from additional
acquisitions and organic expansion.  If another significant
acquisition takes place in the short term, we expect UBCI's
shareholders to inject capital to meet additional capital needs.
The net resources that UBCI will receive as a consequence of the
future acquisition of 19.99% of Banco Popular de Puerto Rico (A-
/Stable/A-2) and the adequate earnings generation capacity of
UBCI's subsidiaries should contribute to future growth.

Since its inception, UBCI has exhibited ROAs between 1% and
1.7%, which are increasingly comparable levels to those of other
financial institutions.  In our view, UBCI's financial standing
is improving and increasingly diverging from that of Banco
Cuscatlan de El Salvador as a result of diversification.  The
mix of revenues has improved significantly as fee income from
banking, and other financial services have increased its
participation.  Geographic expansion has also helped mitigate
the reduction in margins in El Salvador; branches in other
countries have higher margins.  As of September 2005, more than
45% of total profits was generated outside El Salvador, compared
with 26% in 2002.

Until now, UBCI had followed an adequate approach to integrate
its subsidiaries, incorporating the Cuscatlan culture and
policies.  The group has established operating limits that shape
and manage these risks well.  Nevertheless, challenges remain to
fully integrate all operations under the same credit risk
policies and technological platform.

As of September 2005, total capital was $596 million.  This
capital shaped a 10.6% adjusted-equity-to-adjusted-assets ratio
that is similar to those of other Latin American financial
institutions.  UBCI is expected to generate sufficient capital
from earnings to maintain ratios at current levels before
considering further acquisitions.  UBCI has been successful in
raising capital by increasing its shareholder base outside El
Salvador, and additional capital needs should be met if UBCI
makes another acquisition.

Outlook

The stable outlook reflects our expectation that the group will
be successful in strengthening its position in Central America
and that its increasing diversification will mitigate country-
specific risks.  We expect the group to maintain adequate
earnings and not allow asset quality to deteriorate.  The
ratings could be pressured, however, if the regional economy
deteriorates, hurting the banking environment, or if ratings on
its largest core operating subsidiary are modified.  Although
its reliance on its El Salvador subsidiary's operations will be
reduced further as a result of risk diversification by country,
the group to date continues to generate significant earnings
there, and the El Salvador unit therefore remains a key element
in the ratings on the holding company.


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

ANGEL BERRIOS: Issues Case Summary, Largest Unsecured Creditors
---------------------------------------------------------------

Debtors: Angel Manuel Santiago Berrios &
         Carmen Ivette Melendez Padilla
         dba Comerio Ambulance Service
         dba Flamingo Gift Center
         P.O. Box 4265
         Bayamon Gardens Station
         Bayamon, Puerto Rico 00956

Bankruptcy Case No.: 06-00234
Chapter 11 Petition Date: January 31, 2006
Court: District of Puerto Rico (Old San Juan)
Judge: Enrique S. Lamoutte

Debtors' Counsel: Luis A. Medina Torres, Esq.
Medina Torres Law Office
P.O. Box 191191
San Juan, Puerto Rico 00919-1191
Tel: (787) 765-3795
Fax: (787) 758-6000

Estimated Assets: $1 Million to $10 Million
Estimated Debts: $1 Million to $10 Million

Debtors' 13 Largest Unsecured Creditors:

      Entity          Nature of Claim        Claim Amount
---------------      ----------------       ------------

US Department of Health Ed. Claim of U.S.     $2,817,753
c/o AUSA Jos‚ Pizarro Government
United States Attorney
Torre Chard¢n, Suite 1201
350 Carlos Chard¢n Street
San Juan, Puerto Rico 00918

Samuel Reyes de Jes£s  Claim on tort          $1,137,000
Virginia R¡os Cruz KDP 02 02-0530
c/o Ra£l Aponte S nchez Superior Court
P.O. Box 8179 of Bayam¢n
Bayam¢n, PR 00960

Ford Motor            Credit Liability from     $240,000
                       returned vehicles
c/o Jaime Ru¡z Salda¤a
PMB 450, 400 Calaf Street
San Juan, PR 00918

Municipio de Bayam¢n     Business Taxes         $50,000

US Department of Health Ed. Student Loan        $32,000

BBVA Visa                                       $15,743

R-G Premier Bank Visa     Credit Card           $14,795

Banco Popular             Personal Loan         $13,000

Mercedes Benz Credit      Residual Loan         $13,000

PR Department of Labor     Judgment on           $6,300

Case No. KPE
2005-0737, Superior
Court of San Juan

Banco Santander Visa       Credit Card           $5,494

American Express           Credit Card           $4,193

Sucn. de Dora Padr¢ Siragusa Claim on tort       $2,000

KDP 02 02-033
Superior Court
of Bayam¢n


MUSICLAND HOLDING: Receives Court Approval to Close 341 Stores
--------------------------------------------------------------
Musicland Holding Corp. intends to close 341 of its
underperforming and unprofitable stores as part of its Chapter
11 financial review.

"Closing these stores was a difficult, but necessary decision to
protect the future of this company," said Musicland President &
CEO Michael J. Madden.  "The store closing list is based on a
number of factors, including store profits and the terms of the
leases at each location.  As we move forward in the
restructuring process, this action will allow us to focus our
resources on those four hundred stores that have stronger
prospects for future growth."

In many cases, Musicland customers who are affected by the store
closings will have the option of shopping at a nearby Sam Goody
or Suncoast store.  In addition, customers can continue to shop
online at http://www.samgoody.com/http://www.suncoast.com/or
http://www.mediaplay.com/

A full-text copy of the list of the individual stores that have
been approved by the Court for closing is available at no charge
at http://ResearchArchives.com/t/s?4d0

Most listed stores will be closed through a liquidation process,
which begins Feb. 1.  Following the liquidation process,
Musicland plans to operate 400 stores in 49 states -- 191 Sam
Goody stores and 209 Suncoast stores.

Musicland has selected a joint venture led by Hilco Merchant
Resources, LLC of Northbrook, Illinois, and including Gordon
Brothers Group, LLC of Boston, Massachusetts, to manage the
store closings.  Michael Keefe, CEO of Hilco Merchant Resources,
stated, "Extremely compelling discounts of up to 40 percent are
being offered to the consumer on more than $140 million worth of
music, movies, video games and more.  These stores have the
merchandise that customers want, at discounts rarely seen on
current releases.  This is so much more than just a sale event
and we anticipate a tremendous response."

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 HOLDING: Hires BMC as Claims Agent on Interim Basis
-------------------------------------------------------------
The thousands of creditors and other parties-in-interest
involved in Musicland Holding Corp. and its debtor-affiliates'
chapter 11 cases may impose heavy burdens upon the U.S.
Bankruptcy Court for the Southern District of New York and the
Office of the Clerk.

To relieve the Court and the Clerk's Office of those burdens,
the Debtors seek the Court's authority to appoint BMC Group,
Inc., as their claims, noticing, and balloting agent to assist
the Debtors in distributing notices and to process information
pertaining to the Chapter 11 Cases.

Before the Debtors filed for bankruptcy, BMC performed certain
professional services for the Debtors in preparation for a
potential filing.  For those services performed or expenses
incurred, the Debtors do not owe BMC any amount.  BMC received a
$125,000 prepetition retainer from the Debtors.

BMC specializes in noticing, claims processing, balloting, and
other administrative tasks in chapter 11 cases.  It is an
approved claims agent for the U.S. Bankruptcy Court of the
Southern District of New York.

The Debtors chose BMC based on its experience and the
competitiveness of its fees.  BMC has provided identical or
substantially similar services in many other chapter 11 cases in
a variety of jurisdictions.

Sean Allen, president of BMC Group, assures Judge Bernstein that
the officers and employees of BMC:

    (a) do not have any adverse connection with the Debtors, the
        Debtors' creditors or any other party-in-interest or
        their attorneys and accountants, the United States
        Trustee or any person employed in the office of the
        United States Trustee; and

    (b) do not hold or represent an interest adverse to the
        Debtors' estates.

To the best of the Debtors' knowledge, BMC is a disinterested
person, as defined in Section 101(14) and as modified by Section
1107(b) of the Bankruptcy Code.  To ensure that no conflict or
disqualifying circumstances exist, BMC assured the Debtors that
it would conduct an ongoing review of its files.

At the Debtors' or the Clerk's Office's request, BMC will:

    (a) assist the Debtors in the preparation and filing of
        their schedules of assets and liabilities and statements
        of financial affairs;

    (b) prepare and serve required notices of:

        * the commencement of the Chapter 11 Cases and the
          initial meeting of creditors under section 341(a) of
          the Bankruptcy Code;

        * the claims bar date;

        * objections to claims;

        * hearings on a disclosure statement and plan
          confirmation or plans of reorganization; and

        * other miscellaneous notices as the Debtors or Court
          may deem necessary or appropriate;

    (c) within three business days after the service of a
        notice, prepare for filing with the Clerk's Office a
        certificate or affidavit of service that includes an
        alphabetical list of persons on whom the notice was
        served, along with their addresses and the dates and
        manner of service;

    (d) maintain copies of all proofs of claim and proofs of
        interest filed in the Chapter 11 Cases;

    (e) maintain official claims registers in the Chapter 11
        Cases by docketing all proofs of claim and proofs of
        interest in a claims database that includes information
        for each claim or interest asserted:

        * if filed by an agent, the name and address of the
          claimant, interest holder or agent;

        * the date the proof of claim or interest was received
          by BMC or the Court;

        * the claim number assigned to the proof of claim or
          proof of interest; and

        * the asserted amount and classification of the claim;

    (f) implement necessary security measures to ensure the
        completeness and integrity of the claims registers;

    (g) transmit to the Clerk's Office a copy of the claims
        registers;

    (h) maintain an up-to-date mailing list for all entities
        that have filed proofs of claim or proofs of interest
        and make that list available upon request to the Clerk's
        Office or any party-in-interest;

    (i) provide access to the public for examination of copies
        of the proofs of claim or proofs of interest filed in
        the Chapter 11 Cases without charge;

    (j) create and maintain a public access Web site for public
        documents filed;

    (k) record all transfers of claims pursuant to Bankruptcy
        Rule 3001(e)and, if directed to do so by the Court,
        provide notice of those transfers;

    (l) comply with applicable federal, state, municipal, and
        local statutes, ordinances, rules, regulations, orders,
        and other requirements;

    (m) provide temporary employees to process, reconcile and
        resolve claims as necessary;

    (n) promptly comply with further conditions and requirements
        as the Clerk's Office or the Court may at any time
        prescribe;

    (o) provide other claims processing, noticing, balloting,
        and related administrative services as may be requested
        by the Debtors; and

    (p) act as balloting agent, which may include:

        * printing of ballots, printing of creditor and
          shareholder specific ballots;

        * preparing voting reports by plan class, creditor, or
          shareholder and amount for review and approval by the
          client and its counsel;

        * coordinating the mailing of ballots, disclosure
          statement, and plan of reorganization to all voting
          and non-voting parties and provide affidavit of
          service;

        * establishing a toll-free "800" number to receive
          questions regarding voting on the plan; and

        * receiving ballots at a post office box, inspecting
          ballots for conformity to voting procedures, date
          stamping and numbering ballots consecutively, and
          tabulating and certifying the results.

In addition, BMC will assist the Debtors with:

    (a) preparing and mailing customized Proofs of Claim to the
        creditors listed on the Debtors' Schedules of
        Liabilities;

    (b) preparing, mailing, and tabulating ballots of certain
        creditors for the purpose of voting to accept or reject
        the plan or plans of reorganization; and

    (c) any other additional services requested by the Debtors.

The Debtors believe that the notice, claims, and balloting
services provided by BMC will not duplicate the services that
other professionals would provide to the Debtors.

BMC's fees as notice and claims agent are:

      Consulting                            Hourly Rate
      ----------                            -----------
      Typical Blended Rate                  $135
      Seniors/Principals                    $180 - $275
      Consultants                           $100 - $175
      Case Support                           $65 - $95
      Data Entry/Administrative Support      $45

The Debtors and BMC had a retention agreement which provides
that the Debtors will indemnify and hold BMC harmless against
any losses, claims, damages, judgments, liabilities and expense
resulting from action taken by BMC in good faith and without
negligence in reliance upon instructions received from the
Debtors as to anything arising in connection with its
performance under the Agreement.

The Retention Agreement also provides that:

    (a) BMC will be without liability to the Debtors with
        respect to any performance or non-performance, if done
        in good faith and without negligence or misconduct;

    (b) BMC's liability to the Debtors for any losses or
        damages, will not exceed the total amount billed or
        billable to the Debtors for the portion of the
        particular work, which gave rise to the loss or damage;
        and

    (c) BMC will not be liable for any indirect, special or
        consequential damages including loss of anticipated
        profits or other economic loss.

The Debtors also ask the Court to approve the indemnification
provisions of the Retention Agreement and release all filed
claims directly to BMC.

Judge Bernstein approves the Application on an interim basis.

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)


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


COFAC: Bandes Says US$8 Million Financing Deal Not Signed Yet
-------------------------------------------------------------
Venezuelan development bank, Bandes, denies reports that it
signed an US$8 million capitalization deal with Uruguayan
banking cooperative, Cofac aka Cooperativa Nacional de Ahorro
Credito.

According to the El Pais daily, local press quoted Uruguayan
government sources as saying last week that the Bandes-Cofac
deal had been closed.

Cofac CEO Jose Luis Blanco told the El Pais that he knew nothing
about the agreement.

"The government said they would make the announcements," Mr.
Blanco told El Pais.

Cofac was intervened in March 2005 due to insufficient equity,
Business News relates.  Uruguay's central bank gave Cofac more
time to submit a restructuring plan that was supposedly
submitted last week.

Cofac provides retail and commercial banking services and is one
of Uruguay's leading financial institutions in the micro-credit
segment with 200,000 clients.  The cooperative posted a 324
million-peso (US$13.5 million) loss in 2005 and had assets of
4.54 billion pesos at year-end, Business News states.

                        *    *    *

On Jan. 27, 2006, Fitch Ratings placed Uruguayan banking
cooperative Cofac's B- long-term national scale rating on rating
watch negative due to fears the cooperative might fail to
achieve a capitalization program before month-end.

Cofac is fine-tuning a three-year business plan aimed at
securing a minimum US$5mn capitalization and regaining the
business volume it had before it was suspended in March 2005 due
to insufficient equity.  Fitch believes Cofac will fail to
present the plan before Uruguay's central bank by the end of the
month as stipulated.

Fitch Ratings said it would consider withdrawing the rating
watch negative if the central bank extends the deadline.

Cofac has said it hopes to attract investments from three or
four banks through an upcoming capital increase and is already
in talks to give Venezuelan development bank Banco de Desarrollo
Economico y Social a 25% stake in exchange for fresh capital.

Fitch also affirmed Cofac's international rating at CC with a
stable outlook and its support rating at 5.

Cofac provides retail and commercial banking services and is one
of Uruguay's leading financial institutions in the micro-credit
segment with 200,000 clients.  The cooperative posted a 324
million-peso (US$13.5 million) loss in 2005 and had assets of
4.54 billion pesos at year-end.

                            ***********


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