TCRLA_Public/060209.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

          Thursday, February 9, 2006, Vol. 7, Issue 29

                            Headlines

A R G E N T I N A

ALL BAG: Creditors Must Present Claims to Trustee by April 18
COMPANIA INDUSTRIAL: Claims Verification to End on May 15
DIAL THRU: Creditors Must Present Claims by April 5
DIRECTV GROUP: Elects Nancy Newcomb to Board of Directors
GER S.A.: Trustee to Authenticate Creditors Claims until May 11

PARMALAT: Can Pursue BofA Legal Suit, Judge Kaplan Says
ROLE PLAY: Creditors' Claims to be Validated until March 31
SUITI S.A.: Claims Verification to End on April 7


B E R M U D A

FOSTER WHEELER: Subsidiary Enters Purchase Agreement
INTELSAT: Appoints D. Sinkfield as Senior VP of Intelsat Global
INTELSAT: Kevin Mulloy Resigns as IGSC Chairman & President


B R A Z I L

AOL LATIN: Will Stop Operating in Brazil on March 17
BANCO BRADESCO: Inks Retail Partnership with Lojas Esplanada
BRASKEM: Launching US$149 Mil. Cargo Transportation Contracts
GLOBO COMUNICACAO: Moody's Withdraws B1 Foreign Currency Rating
PARMALAT BRASIL: Court Approves Plan of Reorganization


C A Y M A N   I S L A N D S

57TH STREET: Liquidators to Cease Claims Verification
CCAVI: Claims to be Verified by Liquidators
COMMERCIAL PLAZA: Claims to be Accepted until February 24
MAIDSTONE LIMITED: Verification of Proofs of Ends on February 24
MILLENNIUM CAPITAL: Liquidators to Cease Verifying Claims


C H I L E

CELLSTAR CORPORATION: Hosts 4Q Earnings Release, Conference Call

C U B A

* CUBA: Tries to Win Over U.S. Oil Firms


E L   S A L V A D O R

INVERSIONES FINANCIERAS: Banistmo Buys 53.6% Stake for US$131MM


J A M A I C A

KAISER ALUMINUM: Bankruptcy Court Confirms Chapter 11 Plan
KAISER ALUMINUM: Extends Chief Restructuring Officer's Term


M E X I C O

HIPOTECARIA MEXICO: Missed Payment Cues S&P to Cut Rating to D
VITRO: Closes US$75 Mil. Secured Short Term Notes Issued by VENA


P A N A M A

GRUPO BANISTMO: Acquires 53.6% Stake of Bancosal for US$131 Mil.


P A R A G U A Y

* PARAGUAY: IMF Completes 6th Review of Stand-By Arrangement
* PARAGUAY: U.S. Wants Free Trade Accord with Mercosur


P U E R T O   R I C O

MUSICLAND HOLDING: Wants to Dispose of 61 Media Play Leases


T R I N I D A D   &   T O B A G O

* Trinidad & Tobago: Deltana Field Talks with Venezuela Stalled


U R U G U A Y

COFAC: In Talks with Bandes for US$18 Million Financing Deal


V E N E Z U E L A

* Venezuela: Talks with Trinidad Over Natural Gas Field Stalled

     -  -  -  -  -  -  -  -

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


ALL BAG: Creditors Must Present Claims to Trustee by April 18
-------------------------------------------------------------
Bankrupt company All Bag s S.R.L.'s creditors are given until
April 18, 2006, to send their claims to Ms. Beatriz Dominguez,
the company's trustee.  Infobae reports that Ms. Dominguez will
prepare individual reports out of the validated claims and
submit them on June 1, 2006.  The trustee will also prepare a
general report on the case and present it in court on July 14,
2006.

All Bag S.R.L. was declared bankrupt by a Buenos Aires court
after it defaulted on its debt payments.

Ms. Beatriz Dominguez, the trustee, can be reached at:

         Avda. Rivadavia 2151
         Buenos Aires


COMPANIA INDUSTRIAL: Claims Verification to End on May 15
---------------------------------------------------------
The verification of claims of creditors of Compania Industrial
de Alimentos S.A., a Buenos Aires-based bankrupt company, will
end on May 15, 2006.  The claims will then be presented in court
as individual reports on June 27, 2006.

A general report on the company's bankruptcy case will also be
submitted in court on Sep. 5, 2006.

The city's court declared Compania Industrial de Alimentos
bankrupt after the company defaulted on its debt payments.   Ms.
Noemi Monica Vivares was appointed as trustee.

Ms. Noemi Monica Vivares, the trustee, can be reached at:

         Avda. Cordoba 2626
         Buenos Aires


DIAL THRU: Creditors Must Present Claims by April 5
---------------------------------------------------
Creditors are given until April 5, 2006, to present their claims
against bankrupt company Dial Thru International de Argentina
S.A. to Mr. Jorge Alfredo Cosoli, the company's trustee.   
Infobae relates that Mr. Cosoli will prepare individual reports
out of the verified claims and have it presented in court by May
22, 2006.

Mr. Cosoli is also expected to submit a general report on the
company's case on July 5, 2006.

A Buenos Aires court ordered the liquidation of Dial Thru
International after the company defaulted on its obligations.

Mr. Jorge Alfredo Cosoli, the trustee, can be reached at:

         Marcelo T. de Alvear 1364
         Buenos Aires


DIRECTV GROUP: Elects Nancy Newcomb to Board of Directors
---------------------------------------------------------
The DIRECTV Group, Inc. (NYSE: DTV) announced the appointment of
Nancy Newcomb to the company's board of directors and to the
Audit Committee of the board.  The election of Ms. Newcomb,
whose appointment is effective immediately, increases the
company's board to 11, seven of whom are independent directors.

Ms. Newcomb, age 60, served in senior management positions at
Citigroup from 1988 until her retirement in 2004.  She was
Senior Corporate Officer, Risk Management from May 1998 until
2004.  Previously, she was Customer Group Executive of Citicorp
from December 1995 to April 1998, Division Executive, Latin
America from September 1993 to December 1995 and Principal
Financial Officer from January 1988 to August 1993.

"Nancy is a welcome addition to our board," said Chase Carey,
president and CEO of The DIRECTV Group.  "Her strong financial
background and wealth of experience will serve our board and
shareholders well."

Commenting on her election to The DIRECTV Group Board, Ms.
Newcomb said, "I am happy to join the board of DIRECTV and I
look forward to sharing my experience and contributing to the
future success of the company."

Ms. Newcomb is a member of the Board of Directors of Moody's
Corporation and serves on its Audit Committee and Governance and
Compensation Committee.  She is also a member of the Governing
Council of the Van Leer Group Foundation, the Netherlands, and
Co-Chair of the Board of the New York Historical Society.
    
DIRECTV (NYSE: DTV) is a world-leading provider of digital
multichannel television entertainment services.  DIRECTV is
approximately 34% owned by News Corporation.  DIRECTV, Inc., is
the nation's leading digital television service provider with
more than 15 million customers. DIRECTV and the Cyclone Design
logo are registered trademarks of DIRECTV, Inc.

Headquartered in Fort Lauderdale, Florida, DirecTV Latin
America, LLC -- http://www.directvla.com/-- is the leading  
direct-to-home satellite television service in Latin America and
the Caribbean.  Currently the service reaches more than 1.5
million customers in the region, in a total of 28 markets.  
DIRECTV is currently available in: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.  
DIRECTV Latin America, LLC is a multinational company owned by
DIRECTV Latin America Holdings, a subsidiary of Hughes
Electronics Corporation; Darlene Investments, LLC, an affiliate
of the Cisneros Group of Companies, and Grupo Clarin.  DIRECTV
Latin America has offices in Buenos Aires, Argentina; Sao Paulo,
Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto
Rico; Fort Lauderdale, USA and Caracas, Venezuela.  The Company
filed for chapter 11 protection on March 18, 2003 (Bankr. Del.
Case No.: 03-10805 (PJW)).  The Company emerged from bankruptcy
on February 24, 2004.


GER S.A.: Trustee to Authenticate Creditors Claims until May 11
---------------------------------------------------------------
Court-appointed trustee Monica Aquim will be verifying claims
from creditors of bankrupt company Ger S.A. until May 11, 2006.  
Creditors who fail to have their claims validated will be
disqualified from any distribution or payment that the company
would make.

The validated claims will be submitted to court on June 23,
2006, for approval.

Ms. Aquim will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on Sep. 1, 2006.

Buenos Aires-based Ger S.A. entered bankruptcy protection
following the pronouncement of the city's court.  The bankruptcy
process will end with the disposal of the Company's assets in
favor of its creditors.

Ms. Monica Aquim, the trustee, can be reached at:

         Uruguay 662
         Buenos Aires


PARMALAT: Can Pursue BofA Legal Suit, Judge Kaplan Says
-------------------------------------------------------
The Honorable Lewis A. Kaplan of New York Southern District
Court ruled last week that Parmalat SpA may proceed with its
legal action against Bank of America Corp. over the dairy
company's financial collapse in 2003.

Parmalat Chief Executive Enrico Bondi filed a suit against BofA
regarding the bank's alleged failure to disclose the true
interest rate of a December 1996 loan to Parmalat Argentina.  

The Associated Press relates that despite BofA's argument to the
contrary, Judge Lewis found that Mr. Bondi had sufficiently
established its claim against the bank.  Additionally, the judge
found that Mr. Bondi had sufficiently stated his claim against
BofA regarding the bank's real exposure to a December 1997
transaction with Parmalat Venezuela.  In a press release, Bank
of America directed Parmalat to issue allegedly misrepresenting
details of a financial move involving Parmalat's Brazilian unit.

However, Judge Kaplan didn't rule on the merits of those claims,
just that Mr. Bondi argued them sufficiently enough to proceed.  
Mr. Bondi contended that the bank's officials kept quiet about
the true state of Parmalat's affairs and deliberately didn't
tell "innocent insiders" within the company about a scheme to
loot millions from the dairy company by a group of corrupt
Parmalat executives.  He also said the bank structured financial
transactions in a way to conceal and facilitate the looting.

A Bank of America representative in a statement that the bank
was very pleased with the decision, noting that the judge
dismissed all of the civil racketeering claims against it except
for those related to three out of the more than 15 transactions
between Bank of America and Parmalat, the AP relates.

M. Bondi was appointed by the Italian government to run Parmalat
in the wake of its collapse into bankruptcy following an
accounting scandal. Former Parmalat Chairman Calisto Tanzi is on
trial in Milan where he is accused of market rigging and other
charges in the bankruptcy, the AP states.

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six
continents.  The Company filed for chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than $200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy
on April 13, 2005.  


ROLE PLAY: Creditors' Claims to be Validated until March 31
-----------------------------------------------------------
Role Play S.A.'s creditors are to have their proofs of claim
validated by March 31, 2006, Argentine daily La Nacion reports.  
Court-appointed trustee Beatriz Muruaga is tasked in verifying
the claims and prepare individual reports out of those claims.  

Court No. 18 of Buenos Aires' civil and commercial tribunal
declared the company bankrupt.  The ruling was made in approval
of the petition filed by the company's creditor, Ms. Mirta
Alicia Frankrasch, for nonpayment of debt.

Clerk No. 35 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

Role Play S.A. can be reached at:

         Celestino Vidal 4542
         Buenos Aires

Ms. Beatriz Muruaga, the trustee, can be reached at:

         Aguero 1290
         Buenos Aires


SUITI S.A.: Claims Verification to End on April 7
-------------------------------------------------
The creditors' claims against bankrupt company Suiti S.A. will
be verified until April 7, 2006, reports Infobae.  The validated
claims will be presented by Mr. Marcelo Carlos Rodriguez -- the
court-appointed trustee -- in court as individual reports on May
24, 2006.

Suiti S.A. entered bankruptcy protection after a Buenos Aires
court ordered the company's liquidation.

A general report is expected in court on July 7, 2006.

Mr. Marcelo Carlos Rodriguez, the trustee, can be reached at:

         Parana 768
         Buenos Aires


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


FOSTER WHEELER: Subsidiary Enters Purchase Agreement
----------------------------------------------------
The Milan-based subsidiary of Foster Wheeler, Ltd., Foster
Wheeler Italiana S.p.A. (FWI), entered into a binding
preliminary sale and purchase agreement with two companies
belonging to the Merloni Group, which is FWI's joint venture
partners in MF Power S.R.L., a special purpose joint venture
company dedicated to the development, construction and operation
of wind farm projects in Italy.  

According to the purchase agreement, FWI -- owner of a 49%
equity interest in MFP -- will acquire from Merloni the
remaining 51% equity interest in MFP for a purchase price of
EUR18.8 million, or approximately $22.5 million at current
exchange rates, of which EUR15.4 million -- approximately $18.4
million at current exchange rates -- is payable at closing and
EUR3.4 million, approximately $4.1 million at current exchange
rates, is due to Merloni upon start of construction of one of
the three wind farms being developed by MFP.  

The purchase price is subject to various adjustments based on
the net financial position of MFP at the closing date, including
timing of draw down of project debt and distributions of excess
cash of MFP to the shareholders.  Assuming MFP's excess cash is
distributed prior to closing, the adjusted purchase price to be
paid by FWI to Merloni at closing is currently estimated to be
approximately EUR8 to EUR9 million, approximately $9.6 million
to $10.8 million at current exchange rates.  

Finally, FWI expects MFP to have borrowed on or before the
expected closing date approximately EUR26 million, or
approximately $31.2 million at current exchange rates, in non-
recourse debt.  Following the completion of the acquisition, FWI
and the company will fully consolidate the financial results of
MFP, including the non-recourse debt, in Foster Wheeler's
consolidated financial statements.

In addition to the joint venture partnership and to the
transaction described above, FWI and Merloni are also joint
venture partners in two Italian companies which own and operate
gas fired cogeneration power plants with a total installed
capacity of approximately 300 MW.

The Purchase Agreement contains customary representations and
warranties, with completion of the transaction subject to the
satisfaction of customary closing conditions.  The transaction
is expected to close in March 2006 with the execution of a final
sale and purchase agreement.

Foster Wheeler Ltd. -- http://www.fwc.com/-- is a global  
company offering, through its subsidiaries, a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services.  Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.  The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA.

At Sept. 30, 2005, Foster Wheeler's balance sheet showed a
$375,004,000 equity deficit.

                        *    *    *

On Feb. 7, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to stable from negative.  At the
same time, Standard & Poor's affirmed its 'B-' corporate credit
rating and 'CCC+' senior secured debt rating on the Clinton, New
Jersey-based engineering and construction company.  Standard &
Poor's estimates that as of 2005 year-end, Foster Wheeler had
approximately $315 million of total debt outstanding.
      

INTELSAT: Appoints D. Sinkfield as Senior VP of Intelsat Global
---------------------------------------------------------------
Intelsat Global Service Corporation appointed David Sinkfield as
the unit's acting senior vice president, engineering &
operations, nunc pro tunc to Feb. 3, 2006.  

Mr. Sinkfield has previously served in Intelsat Global as:

   -- senior vice president, business operations from April 2004
      to February 2006,

   -- vice president, business operations from January 2003 to
      April 2004,

   -- vice president, quality assurance and process from April
      2002 to December 2002, and

   -- director, process architecture & engineering from November
      1999 to April 2002.

Mr. Sinkfield served in other roles at Intelsat from 1990 to
1999, and worked as a principal engineer at Contel Business
Networks from 1982 to 1990.  

Headquartered in Pembroke, Bermuda, Intelsat --
http://www.intelsat.com-- is a global communications provider
offering flexible and secure services to customers in over 200
countries and territories.  Intelsat has maintained a leadership
position for over 40 years by distributing video, voice, and
data for television and content providers, government and
military entities, major corporations, telecommunications
carriers, and Internet service providers.

                        *    *    *

As previously reported on Feb. 7, 2006, Fitch Ratings placed the
ratings of Intelsat, Ltd. and its wholly owned subsidiary,
Intelsat (Bermuda), Ltd., on Rating Watch Negative following the
announcement that the company plans to issue $300 million
of senior discount notes to retire recently invested
equity of an equal amount.  Fitch's rating action affected about
$4.6 million of existing debt.

The new notes are going to be issued by a newly formed
intermediate subsidiary placed between Intelsat and Intelsat
Bermuda.  This would rank the new issue as structurally senior
to the Intelsat senior notes and structurally junior to all of
the debt at Intelsat Bermuda.

Fitch currently rates Intelsat and Bermuda as:

Intelsat

    -- Senior unsecured notes 'B-'.

Bermuda

   -- Senior unsecured notes 'B+';
   -- Senior secured credit facilities 'BB' .

The proposed issuance and subsequent use of proceeds to retire
equity increases the estimated pro forma total leverage as of
Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch
estimates.

Fitch expects that if the new senior discount note offering is
successful and $300 million of equity is retired that the
ratings on the existing senior notes at both the Intelsat, Ltd.
and Intelsat Bermuda levels could be affected negatively.
Fitch's 'BB' rating for the Intelsat Bermuda senior secured
credit facilities (the draw is estimated at $350 million with
$300 million unused on a revolver) is also at risk, although
Fitch recognizes the substantial value of the assets securing
the facilities.  A future downgrade upon completion of the
proposed offering of senior discount notes would recognize the
impact of the additional leverage and the future significant
increase in cash interest expense in five years when the
proposed senior discount notes begin cash interest payments.
The five-year period may coincide with a possible need to
increase capital spending at that time to replace aging
satellites.


INTELSAT: Kevin Mulloy Resigns as IGSC Chairman & President
-----------------------------------------------------------
Intelsat Global Service Corporation discloses that Kevin Mulloy
resigned his position as chairman and president effective Jan.
27, 2006.  

Intelsat Holdings, Ltd. (the parent of Intelsat, Ltd.) and
Intelsat Global Service Corporation entered into a separation
agreement with Mr. Mulloy on Jan. 31, 2006.  Under the terms of
the separation agreement, Mr. Mulloy will be entitled to

   i) a severance payment of $1,280,000, payable in 24 equal
      monthly installments commencing February 17, 2006, and

  ii) a lump sum payment equal to 50% of the maximum bonus for
      2005 (including the additional bonus payable in the
      discretion of the Compensation Committee of Intelsat,
      Ltd.'s board).

In addition, on Feb. 15, 2006, Intelsat Holdings, Ltd. will
repurchase all of the 11,420 shares of equity of Intelsat
Holdings, Ltd,. that Mr. Mulloy purchased in January 2005 for a
repurchase price of $2,695,120.  Intelsat Holdings will also
repurchase the remaining 8,034 vested shares of equity held by
Mr. Mulloy for a repurchase price of $1,896,025.  

Headquartered in Pembroke, Bermuda, Intelsat --
http://www.intelsat.com-- is a global communications provider
offering flexible and secure services to customers in over 200
countries and territories.  Intelsat has maintained a leadership
position for over 40 years by distributing video, voice, and
data for television and content providers, government and
military entities, major corporations, telecommunications
carriers, and Internet service providers.

                        *    *    *

As previously reported on Feb. 7, 2006, Fitch Ratings placed the
ratings of Intelsat, Ltd. and its wholly owned subsidiary,
Intelsat (Bermuda), Ltd., on Rating Watch Negative following the
announcement that the company plans to issue $300 million
of senior discount notes to retire recently invested
equity of an equal amount.  Fitch's rating action affected about
$4.6 million of existing debt.

The new notes are going to be issued by a newly formed
intermediate subsidiary placed between Intelsat and Intelsat
Bermuda.  This would rank the new issue as structurally senior
to the Intelsat senior notes and structurally junior to all of
the debt at Intelsat Bermuda.

Fitch currently rates Intelsat and Bermuda as:

Intelsat

    -- Senior unsecured notes 'B-'.

Bermuda

   -- Senior unsecured notes 'B+';
   -- Senior secured credit facilities 'BB' .

The proposed issuance and subsequent use of proceeds to retire
equity increases the estimated pro forma total leverage as of
Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch
estimates.

Fitch expects that if the new senior discount note offering is
successful and $300 million of equity is retired that the
ratings on the existing senior notes at both the Intelsat, Ltd.
and Intelsat Bermuda levels could be affected negatively.
Fitch's 'BB' rating for the Intelsat Bermuda senior secured
credit facilities (the draw is estimated at $350 million with
$300 million unused on a revolver) is also at risk, although
Fitch recognizes the substantial value of the assets securing
the facilities.  A future downgrade upon completion of the
proposed offering of senior discount notes would recognize the
impact of the additional leverage and the future significant
increase in cash interest expense in five years when the
proposed senior discount notes begin cash interest payments.
The five-year period may coincide with a possible need to
increase capital spending at that time to replace aging
satellites.


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


AOL LATIN: Will Stop Operating in Brazil on March 17
----------------------------------------------------
According to reports, the Brazilian unit of regional Internet
service provider America Online Latin America Inc. aka AOL Latin
America Inc. has decided to end its activities on March 17,
2006.  The company said in a statement that it will stop
operating its web pages and services on that date.

As previously reported, the U.S. Bankruptcy Court for the
District of Delaware authorized AOL Latin America to transfer
its subscribers to ISP Terra, a move that meant cessation of the
company's operations in Brazil.  

Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded  
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network.  Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.
The Company and its debtor-affiliates filed for Chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed total assets of $28,500,000
and total debts of $181,774,000.


BANCO BRADESCO: Inks Retail Partnership with Lojas Esplanada
------------------------------------------------------------
Banco Bradesco S.A. (NYSE: BBD) disclosed in a prepared
statement that it has signed a partnership with local retailer
Lojas Esplanada/Otoch.

Lojas Esplanada is one of the largest in Brazil's northeastern
region with 2.3 million private label cardholders.

Under the agreement, Bradesco will take charge of the private
label card management and also be able to sell its banking
products and services to cardholders.

Bradesco has been the most active of Brazilian banks in signing
consumer finance partnerships with local retailers.

                        *    *    *

Banco Bradesco's $100 Million notes due Sept. 2, 2006, is rated
Ba3e by Moody's and BB- by Composite.


BRASKEM: Launching US$149 Mil. Cargo Transportation Contracts
-------------------------------------------------------------
Braskem S.A. is ready to launch the second phase of the bidding
process for two-year highway cargo transportation contracts, the
Gazeta Mercantil reports.

The company projects the contract at 330 million reais (US$149
million) per year for the highway transport of thermoplastics
from Braskem's factories to consumer markets.  Braskem requires
400 cargo trucks per day, which means the winning contractors
will make 100,000 trips each year during the two year contract
term, Business News Americas relates.

Braskem has already made a pre-selection process, eliminating 21
of the 58 proposals submitted.  The company will review the
remaining 37 proposals beginning this week, and is expected to
announce the winners by mid February, Business News states.

                        *    *    *

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/-- 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.


GLOBO COMUNICACAO: Moody's Withdraws B1 Foreign Currency Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn the B1 foreign currency
corporate family rating of Globo Comunicacao e Participacoes
S.A.  The ratings have been withdrawn as Moody's no longer
maintains foreign currency corporate family ratings and for
business reasons.


PARMALAT BRASIL: Court Approves Plan of Reorganization
------------------------------------------------------
Justice Alexandre Alves Lazzarini, of the First District Company
Recovery and Bankruptcy Court of Justice of Sao Paulo, approved
the recovery plan filed by Parmalat Brasil Industria de
Alimentos S.A., a unit of cash-strapped Italian dairy producer
Parmalat Finanziaria S.p.A.

The ratification occurred even without the presentation of the
Negative Tax Debt Certification, as provided for in the new
Company Bankruptcy and Recovery Law.  

The plan, drafted with Integra consultants, confirms the unit's
economic viability and presents a schedule for the payment of
its BRL800-million debt to suppliers and banks. The plan
includes the sale of operating assets to help the unit pay off
part of the debt and to reinforce its working capital.

Parmalat Brasil filed for bankruptcy protection on June 24,
2005, under Brazil's new bankruptcy law.  The filing came after
the unit's creditors denied the extension of the BRL800-million
payment deadline for the Company's debt.

Parmalat Brasil first filed for bankruptcy protection in 2004
under the old Brazilian bankruptcy law.  The unit filed for
bankruptcy again to take advantage of the New Bankruptcy and
Restructuring Law of Brazil, which became effective on
June 9, 2005.

Under the NBRL, debtors are permitted to remain in possession
and control of their businesses and properties.  In addition, as
part of the judicial reorganization under the NBRL, most
creditors are effectively prohibited from enforcing claims
against the Debtors.

Parmalat Brasil is represented by:

       Thomaz Benes Felsberg
       Felsberg & Associados
       Avenida Paulista 1294, 2nd Floor
       Sao Paulo, Brazil 01310-915



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


57TH STREET: Liquidators to Cease Claims Verification
-----------------------------------------------------
Ms. Mora Goddard and Mr. Richard Gordon -- liquidators of 57th
Street Holdings I -- are giving creditors until Jan. 4, 2006, to
have their claims validated.  Creditors must send full
particulars of their debts or claims to the liquidators by the
said date.  Failure to do so would exclude them from any
distribution or payment that the company would make.

The liquidation of 57th Street Holdings I started on Jan. 4,
2006.

Ms. Mora Goddard and Mr. Richard Gordon, the joint voluntary
liquidators, can be reached at:

         Maples Finance Limited
         P.O. Box 1093GT
         Grand Cayman, Cayman Islands


CCAVI: Claims to be Verified by Liquidators
-------------------------------------------
The proofs of claim of CCAVI's creditors will undergo a
verification phase until Feb. 24, 2006.  Creditors must send
full particulars of their debts or claims to the joint
liquidators of the company.

Creditors whose claims that are not validated after the said
date will not be included in the benefit of any distribution or
payment that the company would make.

CCAVI was voluntarily wound up on Jan. 12, 2006, and Ms. Morra
Goddard and Mr. Richard Gordon were appointed as joint
liquidators of the company.

Ms. Mora Goddard and Mr. Richard Gordon, the joint voluntary
liquidators, can be reached at:

         Maples Finance Limited
         P.O. Box 1093GT
         Grand Cayman, Cayman Islands


COMMERCIAL PLAZA: Claims to be Accepted until February 24
---------------------------------------------------------
Commercial Plaza Securitisation Limited's creditors are to prove
their debts or claims on or before Feb. 24, 2006.  They are to
send full particulars of their debts or claims to the joint
liquidators -- Suzan Merren and Emile Small.  In default thereof
would mean exclusion from the benefit of any distribution made
before the debts are proved or from objecting to the
distribution.

Commercial Plaza Securitisation Limited began liquidation on
Jan. 12, 2006 and appointed Ms. Suzan Merren and Mr. Emile Small
as joint voluntary liquidators.

Ms. Suzan Merren and Mr. Emile Small may be reached at:

         Maples Finance Limited
         P.O. Box 1093GT
         Grand Cayman, Cayman Islands


MAIDSTONE LIMITED: Verification of Proofs of Ends on February 24
----------------------------------------------------------------
Maidstone Limited's creditors must prove their claims to Ms.
Phillipa White and Mr. Richard Gordon, the joint liquidators of
the company by Feb. 24, 2006.  They must send full particulars
of their debts or claims to the joint liquidators.  Failure to
do so would mean exclusion from receiving any distribution or
payment that the company would make.

Maidstone Limited started liquidating assets on Jan. 11, 2006.

Ms. Phillipa White and Mr. Richard Gordon, the joint voluntary
liquidators, can be reached at:

         Maples Finance Limited
         P.O. Box 1093GT
         Grand Cayman, Cayman Islands


MILLENNIUM CAPITAL: Liquidators to Cease Verifying Claims
---------------------------------------------------------
Ms. Wendy Ebanks and Mr. Richard Gordon -- liquidators of
Millennium Capital Cayman Limited -- will stop accepting and
verifying proofs of claim from the company's creditors after
Feb. 24, 2006.  Creditors must therefore send full particulars
of their debts or claims to the liquidators or be excluded from
the benefit of receiving any distribution or payment the company
would make.

Millennium Capital Cayman Limited started winding up operations
on Jan. 6, 2006.

Ms. Wendy Ebanks and Richard Gordon, joint voluntary
liquidators, can be reached at:

         Maples Finance Limited
         P.O. Box 1093GT
         Grand Cayman, Cayman Islands


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


CELLSTAR CORPORATION: Hosts 4Q Earnings Release, Conference Call
----------------------------------------------------------------
In conjunction with CellStar Corporation (OTC Pink Sheets: CLST)
fourth quarter earnings release, the company invites interested
parties to listen to a conference call that will be broadcast
live over http://www.cellstar.comon February 14, 2006 at 10:00  
a.m.

CellStar Corporation -- http://www.cellstar.com-- provides  
value-added logistics services to the wireless communications
industry, with operations in the North American and Latin
American regions.  CellStar facilitates the effective and
efficient distribution of handsets, related accessories and
other wireless products from leading manufacturers to network
operators, agents, resellers, dealers and retailers.  CellStar
also provides activation services in some of its markets that
generate new subscribers for wireless carriers.

                        *     *     *

                     Going Concern Doubt

Grant Thornton LLP expressed substantial doubt about Cellstar's
ability to continue as a going concern after it audited the
Company's financial statements for the period ended Nov. 30,
2004.  The auditors point to the Company's:

   -- $118.1 million net loss for the 2004 fiscal year;

   -- covenant violations on its borrowing arrangements;

   -- exit on its Asian operations  that constituted a large
      percentage of its historical operations; and

   -- experiencing restrictions in its business activities with
      vendors.

The Company reported a consolidated net loss of $21.3 million
for the nine months ended Aug. 31, 2005, compared to a net loss
of $52.4 million in 2004.  The net losses in 2004 and 2005
included losses from discontinued operations of $14.2 million
and $47.7 million, respectively, related primarily to the
Company's operations in the People's Republic of China.  For the
nine months ended Aug. 31, 2005, losses from continuing
operations were $7.2 million, compared to $4.7 million in 2004.  
The Company's continuing operations includes the North American
and the Latin American Regions.


=======
C U B A
=======


* CUBA: Tries to Win Over U.S. Oil Firms
----------------------------------------
Government officials of Cuba have urged U.S. firms to oppose the
U.S. trade restriction while the U.S. government looks for ways
to tighten the sanction, the Associated Press reports.

The officials tried to entice the companies to invest in the
nation's energy sector with plans on doubling their drilling
capacity and plans on exploring for oil in Cuba's 59 deep-water
blocks.  The plans were confirmed by Juan A. Fleitas, general
director of oil monopoly CUPET S.A., has also reported the
plans.

Associated Press relates that executives from U.S. firms
ExxonMobil Corp., Caterpillar, Inc., and Valero Energy, Corp.,
met with the officials in the two countries' first private-
sector oil summit held in Mexico City last week to discuss on
Cuba's potentially lucrative oil reserves.

Raul Perez de Prado, Cuba's vice minister of basic industry,
believed that U.S. executives should work to eliminate the
barriers that limit investment.  The vice minister was referring
to the 5-year-old U.S. trade embargo intended to damage Fidel
Castro's communist government.

While Cuba has inked exploration deals with Canadian, Chinese,
Indian and Norwegian companies, U.S. firms were restricted by
the embargo.

Jonathan Benjamin-Alvarado, a political scientist at the
University of Nebraska who studies the Cuban energy sector, told
Associated Press that the meeting could be the way to usher in a
change in the U.S. policy.
  
In 2000, Cuba was able to sway the U.S. government to pass a law
that allows food and agricultural exports on a cash basis after
Cuban agricultural officials held meetings with their U.S.
counterparts in Mexico in 1999.  Cuba informs that it has since
spent about $1.5 billion buying American food.

Benjamin-Alvarado was positive that working with Cuba would
offer U.S. oil companies opportunities, from building refineries
to storing oil if a hurricane should wipe out supplies in
Houston, for example.

Mike Martinez, president of Mexico-based oil engineering company
Bay-Inelectra, said that Cuba could offer the U.S. a viable oil
source amid instability in the Middle East and elsewhere --
Nigeria and Venezuela included.

However, Judith Bryan, spokesperson for the U.S. embassy in
Mexico City, revealed to Associated Press that the U.S. is
looking for ways to tighten more the embargo against Cuba.

Ms. Bryan said, "Our main goal is to reach out to the Cuban
people and free them from the sanctions imposed on them by their
own regime."

Cuba's first well, which was discovered in 2004 by Spanish
petrochemical company Repsol-YPF, was not considered
commercially viable, but the finding of reserves made the
government more determined in becoming more self-sufficient amid
tightened U.S. sanctions.  Cuba now produces more than 30% of
its own crude.

Cuba has since spent $1.7 billion into its energy sector with
help from Canada, Europe and Latin America.  Foreign firms have
acquiesced to explore 10 blocks while six are under negotiation.

"We would be happy if North American companies also participated
in future projects," Raul Perez de Prado, Cuba's vice minister
of basic industry, told Associated Press.




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


INVERSIONES FINANCIERAS: Banistmo Buys 53.6% Stake for US$131MM
----------------------------------------------------------------
Business News Americas reports that Panama-based financial group
Grupo Banistmo has bought a 53.6% stake at El Salvadorian
banking group Inversiones Financieras Bancosal for US$131
million.  The acquisition was made through a public tender offer
that closed February 4.

Banistmo said in October 2005 that it would acquire 51-60% of
Bancosal through a public tender offer on the El Salvadorian
stock exchange.

Banistmo paid US$2.12 in cash for each Bancosal share, which
values its stake at about US$131 million based on a total float
of 115,504,000 shares.

Bancosal has over US$1.77 billion in assets and its holdings
include the country's third largest bank, Banco Salvadoreno with
62 branches and insurance company Internacional de Seguros.

"Within El Salvador, we will focus on strengthening our
leadership in consumer [lending] by offering and developing
innovative products," Banistmo Executive VP of banking
operations Juan Carlos Fabrega said in a statement. "At the same
time the group's regional presence will strengthen its
remittance, credit card and investment banking businesses."

Through its acquisitions and startup projects, Banistmo has
grown over the last three years to become the region's biggest
financial group with US$6.62 billion in assets at Sept. 30,
2005. Banistmo has banking operations in Panama, Honduras, Costa
Rica, El Salvador, Nicaragua and Colombia.  The bank however, is
still absent from Guatemala, Central America's largest market
with 12.1 million people and a US$30.7 billion economy, Business
News states.

                        *    *    *

As previously reported Nov. 9, 2005, Moody's Investors Service
affirmed the D+ financial strength rating and Ba1 foreign
currency deposit rating of Primer Banco del Istmo, S.A.  The
affirmation follows the announcement that Banistmo's
shareholder, Grupo Banistmo, S.A., has agreed to purchase
between 51% and 60% of Inversiones Financieras Bancosal S.A.,
the owner of Banco Salvadoreno, El Salvador's third largest
bank.

                        *    *    *

As previously reported on Oct. 14, 2005, Fitch Ratings has
affirmed its BB+(slv) long-term national scale rating and the
B(slv) short-term rating on financial holding company
Inversiones Financieras Promerica with a stable outlook.

The action reflected the risk exposure of IFP's only subsidiary,
niche bank Banco Promerica, which has a BB+(slv) long-term
rating and B(slv) short-term rating.

IFP's concentration on consumer lending has brought its net
interest income to a near historic high.

Nevertheless, profitability has been limited by the lack of
revenue diversification and the expansion of its geographic
footprint.


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


KAISER ALUMINUM: Bankruptcy Court Confirms Chapter 11 Plan
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware confirmed
Kaiser Aluminum's second amended Plan of Reorganization.  The
confirmation order must now be affirmed by the United States
District Court before the company can emerge, and is also
subject to appeal.

"We are very pleased by the ruling and it means that the finish
line is within sight," Jack Hockema, president and chief
executive officer, Kaiser Aluminum, said.  "We are hopeful that
we can proceed quickly through the steps necessary for us to
emerge before the end of the first quarter of 2006.  We will
continue our present course as a globally competitive company
with world-class products and service, well positioned to best
serve the needs of our customers.  We also plan to emerge with a
strong balance sheet that will provide financial strength to
support the ability to grow in our key transportation and
industrial markets."

In addition to U.S. District Court affirmation of the
confirmation order, there are other conditions that must be
satisfied before the company can emerge.  

The company's restructuring would resolve prepetition claims
that are currently subject to compromise including retiree
medical, pension, asbestos, and other tort, bond, and note
claims.

The POR would result in the cancellation of the equity interests
of current stockholders and the distribution of equity in the
emerging company to creditors or creditor representatives.  The
majority of the new equity would be distributed to two voluntary
employee benefit associations that were created in 2004 to
provide medical benefits or funds to defray the cost of medical
benefits for salaried and hourly retirees.  Retiree medical
plans existing at that time were cancelled.

All personal injury claims relating to both prepetition and
future claims for asbestos, silica and coal tar pitch volatiles,
and existing claims regarding noise-induced hearing loss, would
be permanently resolved by the formation of certain trusts
funded primarily by the company's rights to proceeds from
certain of its insurance policies and the establishment of
channeling injunctions that would permanently channel these
liabilities away from the company and into the trusts.

A full-text copy of the Plan of Reorganization is available at
no charge at: http://ResearchArchives.com/t/s?50a

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 Feb. 12, 2002 (Bankr. Del. Case No. 02-10429),
and has sold off a number of its commodity businesses during
course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts.  On June
30, 2004, the Debtors listed $1.619 billion in assets and $3.396
billion in debts.


KAISER ALUMINUM: Extends Chief Restructuring Officer's Term
-----------------------------------------------------------
Kaiser Aluminum & Chemical Corporation and Edward F. Houff, its
Chief Restructuring Officer entered into an Amended and Restated
Non-Exclusive Consulting Agreement, extending the term of Mr.
Houff's engagement through April 30, 2006, and securing Mr.
Houff's services as Chief Restructuring Officer through the
earlier of KACC's emergence from Chapter 11 and April 30, 2006.

According to the amended and restated non-exclusive consulting
agreement, Mr. Houff will continue to provide services to KACC
in exchange for a monthly base fee, plus an additional hourly
amount for each hour worked in excess of monthly thresholds,
subject to monthly caps, all as more fully set forth in the
agreement.

KACC will also reimburse Mr. Houff for reasonable and customary
expenses incurred while providing consulting services to KACC.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading   
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 89; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


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


HIPOTECARIA MEXICO: Missed Payment Cues S&P to Cut Rating to D
--------------------------------------------------------------
Credit ratings agency Standard & Poor's has cut its ratings on
Mexican home finance company Hipotecaria Mexico to default after
the company failed to pay the principal on 150 million pesos
(US$14.3 million) in notes on February 3.

S&P cut the company's long-term and short-term national scale
ratings to mxD from mxBBB-/mxA-3, while the mxA-3 ratings
assigned to the notes was also cut to mxD.

The company paid the interest on the notes on Friday, S&P said
in a filing with the local stock exchange.

"On repeated occasions Hipotecaria Mexico's management expressed
their intention to pay the [notes] on time.  However, the
company decided not to use those funds despite its ability to
make a partial payment with funds in a trust," S&P said.

Hipotecaria Mexico is in the process of cleaning up its balance
sheet and raising fresh capital through the incorporation of new
shareholders.

The company reported performing loans of 1.49 billion pesos
(US$143 million) and equity of 28.7 million pesos at Sept. 30,
2005.  However, its non-performing loan ratio was a staggering
38%.


VITRO: Closes US$75 Mil. Secured Short Term Notes Issued by VENA
----------------------------------------------------------------
Vitro, S.A. de C.V., announced that its subsidiary Vitro Envases
Norteamerica, S.A. de C.V., aka VENA, Vitro's glass containers
division, successfully closed the issuance of US$75 million
aggregate principal amount of Senior Secured Short Term
Guaranteed Notes.

The facility is secured, on a pari passu basis, with the
existing senior secured indebtedness of VENA.  The notes have a
maturity of 12 months and a yield of 8 percent.  The net
proceeds will be used to refinance debt at VENA's level and for
working capital purposes.

The market reacted very positively to the offering, which
resulted in an oversubscription.

"This lower interest rate, reflects VENA's great performance and
the market's recognition of a clear decoupling between VENA and
the Holding Company risk," commented Alvaro Rodriguez, Vitro's
CFO.

BCP Securities, LLC, arranged and facilitated the Notes' deal.

Vitro, S.A. de C.V. -- http://www.vitro.com-- is a major  
participant in three principal businesses: flat glass, glass
containers and glassware.  Founded in 1909 in Monterrey, Mexico-
based Vitro has joint ventures with major world-class partners
and industry leaders that provide its subsidiaries with access
to international markets, distribution channels and state-of-
the-art technology.  Vitro's subsidiaries have facilities and
distribution centers in eight countries, located in North,
Central and South America, and Europe, and export to more than
70 countries worldwide.

                       *    *    *

As reported by Troubled Company Reporter on Nov. 14, 2005,
Standard & Poor's Ratings Services has revised its outlook on
its 'B' long-term corporate credit rating on Vitro S.A. de C.V.,
and Vitro's glass containers subsidiary Vitro Envases
Norteamerica S.A. de C.V., to negative from stable.  


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


GRUPO BANISTMO: Acquires 53.6% Stake of Bancosal for US$131 Mil.
----------------------------------------------------------------
Business News Americas reports that Panama-based financial group
Grupo Banistmo has bought a 53.6% stake at El Salvadorian
banking group Inversiones Financieras Bancosal for US$131
million.  The acquisition was made through a public tender offer
that closed February 4.

Banistmo said in October 2005 that it would acquire 51-60% of
Bancosal through a public tender offer on the El Salvadorian
stock exchange.

Banistmo paid US$2.12 in cash for each Bancosal share, which
values its stake at about US$131 million based on a total float
of 115,504,000 shares.

Bancosal has over US$1.77 billion in assets and its holdings
include the country's third largest bank, Banco Salvadoreno with
62 branches and insurance company Internacional de Seguros.

"Within El Salvador, we will focus on strengthening our
leadership in consumer [lending] by offering and developing
innovative products," Banistmo Executive VP of banking
operations Juan Carlos Fabrega said in a statement. "At the same
time the group's regional presence will strengthen its
remittance, credit card and investment banking businesses."

Through its acquisitions and startup projects, Banistmo has
grown over the last three years to become the region's biggest
financial group with US$6.62 billion in assets at Sept. 30,
2005. Banistmo has banking operations in Panama, Honduras, Costa
Rica, El Salvador, Nicaragua and Colombia.  The bank however, is
still absent from Guatemala, Central America's largest market
with 12.1 million people and a US$30.7 billion economy, Business
News states.

                        *    *    *

As previously reported Nov. 9, 2005, Moody's Investors Service
affirmed the D+ financial strength rating and Ba1 foreign
currency deposit rating of Primer Banco del Istmo, S.A.  The
affirmation follows the announcement that Banistmo's
shareholder, Grupo Banistmo, S.A., has agreed to purchase
between 51% and 60% of Inversiones Financieras Bancosal S.A.,
the owner of Banco Salvadoreno, El Salvador's third largest
bank.

                        *    *    *

As previously reported on Oct. 14, 2005, Fitch Ratings has
affirmed its BB+(slv) long-term national scale rating and the
B(slv) short-term rating on financial holding company
Inversiones Financieras Promerica with a stable outlook.

The action reflected the risk exposure of IFP's only subsidiary,
niche bank Banco Promerica, which has a BB+(slv) long-term
rating and B(slv) short-term rating.

IFP's concentration on consumer lending has brought its net
interest income to a near historic high.

Nevertheless, profitability has been limited by the lack of
revenue diversification and the expansion of its geographic
footprint.


===============
P A R A G U A Y
===============


* PARAGUAY: IMF Completes 6th Review of Stand-By Arrangement
-----------------------------------------------------------
The International Monetary Fund announced Tuesday that its
executive board completed on Nov. 30, 2005, the sixth review of
Paraguay's economic performance under an SDR50 million, about
US$73.3 million, Stand-By Arrangement for Paraguay, originally
approved on Dec. 15, 2003 for 15 months.  The arrangement was
subsequently extended through September 30, 2005 on Dec. 20,
2004 and through Nov. 30, 2005, on Sep. 30, 2005.  Both the
later extension and the review were completed by the Executive
Board on a lapse of time basis.

The completion of the sixth review made a cumulative amount
equivalent to SDR50 million, about US$71.2 million, immediately
available to Paraguay.  However, Paraguay did not make any
drawings under the arrangement.


* PARAGUAY: U.S. Wants Free Trade Accord with Mercosur
------------------------------------------------------
The United States seeks a free trade agreement with the Common
Market of the South, Mercosur, Latin America's largest trading
bloc.

Argentina's ABC Color newspaper quoted Ambassador Cason, as
saying that his country is seeking a deal either with Paraguay
or with Mercosur.

Mercosur's member states are Argentina, Uruguay, Paraguay,
Brazil, and Chile and Bolivia as associated countries.

"The deal would bring many benefits to both sides," Ambassador
Cason said. "I have the impression that Paraguay wants to sign a
deal alongside the Mercosur countries and it has a right to do
so."

The United States has free trade deals with Chile, Mexico and
Panama. The ambassador stated that his country's interest in not
only in forging deals with individual countries, but also with
regional groupings like Mercosur.


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


MUSICLAND HOLDING: Wants to Dispose of 61 Media Play Leases
-----------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates proposed to
notify each lessor of a proposed assumption and assignment of
the 61 Media Play leases.  The Debtors will also provide a
schedule of all their outstanding obligations under the Leases
through the Petition Date.

On January 19, 2006, the Debtors presented to the Court a notice
of cure schedules.  The Notice contained:

   (a) a list of unexpired real property Leases at each of the
       Media Play stores which the Debtors sought to assume; and

   (b) the proposed cure amounts due and owing for the unexpired
       real property leases which are based on the Debtors'
       books and records

A full-text copy of the 61 Media Play Leases and the proposed
Cure Amounts is available for free at:

     http://bankrupt.com/misc/Musicland_61mediaplayleases.pdf

                Landlords Object to Proposed Cure

Some of the landlords of the Media Play Leases object to the
Debtors' Cure Schedules.  According to the Landlords, the Cure
Amounts in the Debtors' Notice do not reflect all charges owing
to Landlords under the Leases.

Certain of the Landlords presented their calculated cure
amounts:

                                      Debtors'     Landlords'
                                    Cure Amount   Cure Amount
                                    -----------   -----------
   100 Oaks LP                          $47,484       $87,376
   Barrett Pavilion                      59,498       187,191
   Cincinnati Mills                      46,714        93,195
   Citadel Crossing Shopping Center      14,962       111,470
   Family Center at Fort Union           17,925        46,258
   Family Center at Midvalley            18,185        46,739
   Family Center at Orem                 16,872        51,135
   Family Center at Riverdale            14,635        37,122
   Greenwood Point                       58,793        77,508
   Harrisburg                            27,151        54,486
   Houston Lakes                         15,775        35,165
   Keystone Plaza                        51,921        71,937
   Lafayette Place                       87,862       102,969
   Largo Plaza                           29,683         7,871
   Meyer Park Center                    170,028       201,772
   Great Mall of the Bay                 25,178        77,628
   North Point Market Center             18,814        53,013
   Ridgemont Plaza                       68,241        98,171
   Rivergate Mall                        89,690       260,001
   Robinson Court                             0       107,158
   Southlake Pavilion                    53,681        85,858
   Southtown Plaza Associates, LLC       11,502       153,877
   Spring Meadows Place Shopping Mall    62,005        93,384
   Stateline Plaza                       82,367       101,790
   The Market at Chapel Hills West      130,882       152,122
   Walden Place                          15,995        34,167
   Western Hills                         54,519        63,286
   Westgate Shopping Center              35,456        46,508
   Woodlawn Market                       50,854        50,151

The Landlords allege that the amounts in the Debtors' Cure
Schedule do not reflect the unbilled year-end adjustments to
real estate taxes, insurance, common area maintenance, legal
costs and attorneys fees.  Further, the Debtors' administrative
rent and rent-related charges continue to accrue daily.

The Proposed Cure Schedule also did not provide a break down of
the Cure.  Thus, the Debtors cannot be assured that the cure was
accurately calculated.

In addition, some of the Debtors maintain that they received an
extremely limited and late notice of the Cure Amounts and the
auction of the Media Play Leases.  Consequently those Debtors
have not yet had an opportunity to complete their review of the
Cure Schedule and an analyze their own records relative to the
Cure Schedules.

                        More Objections

(1) Kmart Corp.

According to Richard M. Meth, Esq., at Pitney Hardin LLP, in
Florham Park, New Jersey, many of the documents pertinent to the
Media Play Leases are not made immediately available to Kmart
Corp.

Mr. Meth says that Kmart has already arranged for the various
records to be retrieved, and is currently seeking to verify
independently the Debtors' Cure Amounts.  However, as of the
present, all those relevant information and documents have not
yet been received by Kmart.  Thus, Kmart has not have sufficient
time to complete its review of the documents related to the
Media Play Leases.

Kmart believes that it may have rights and claims relative to
six of the Media Play Leases.

Kmart objects to the Cure Schedule and the Cure Amounts due to
the limited notice provided to it relative to the Assumed
Contracts, the Cure Amounts and the Auction.

(2) National Amusements

Richard L. Levine, Esq., attorney for National Amusements, Inc.,
in Boston, Massachusetts, tells the Court that the relevant date
for determining the cure amount is not the date of filing, as
was stated in the Cure Notice, but the date the lease is assumed
and assigned.

On behalf of National Amusements, Mr. Levine objects to the Cure
Amount proposed by the Debtors unless the Debtors affirm that
the Cure Amount only represents the amounts due as of the
Petition Date, and do not represent the total amount due on the
Lease's assumption.

(3) Merchant's Walk

Robert L. LeHane, Esq., at Kelley Drye & Warren LLP, in New York
City, asserts that the Merchant's Walk (E&A) LLC lease was
terminated prior to the filing of the Debtors' bankruptcy cases
and the Debtors have no interest in the Lease to sell.  Thus,
the Debtors have no legal right to cure any defaults under the
Lease.  Mr. LeHane notes that Merchant's Walk is not waiving its
position.

Further, Mr. LeHane says that the proposed Cure Amount with
respect to the Lease is incorrect.  According to Mr. LeHane, as
of January 20, 2006, $132,799 plus attorney's fees was due to
Merchant's Walk under the Lease.

(4) New Market Acquisitions

New Market Acquisitions Ltd., contends that it has not received
and cannot locate a Cure Schedule as of January 20, 2006.  
Accordingly, New Market states that its cure amount is $68,094.

New Market Acquisitions leases to Media Play a real property
known as 7690 New Market Center Way, in Columbus, Ohio, under a
lease dated June 22, 1993.

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. 4; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


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


* Trinidad & Tobago: Deltana Field Talks with Venezuela Stalled
---------------------------------------------------------------
Peter Wilson at Bloomberg reports that talks between Venezuela
and Trinidad and Tobago on how to divide South America's largest
natural-gas field in the Deltana Platform have stalled, delaying
plans to spend billions of dollars in developing the reserves.  
Further talks are currently not scheduled.

"Our goal has to be to stimulate exploration in our areas where
we have gas, and that is going to be our first priority,"
Trinidad and Tobago Energy Minister Lenny Saith told Mr. Wilson
in an interview.  "Some (of our reserves), not all are in the
Deltana Platform."  Talks began in 2003 on how to divide the
field, and a steering committee was created in 2004.  An
agreement between the two nations was expected last year.

Venezuelan Oil Minister Rafael Ramirez has said that an
agreement is essential for the countries to start work on
developing the Deltana Platform, a project that may produce 40
trillion cubic feet of gas.

According to Bloomberg, talks have lagged since Trinidad and
Tobago, which is the United States' largest supplier of
liquefied natural gas, refused to join Venezuelan President Hugo
Chavez's PetroCaribe initiative.   Minister Saith declined to
say whether the issues were related.

The two countries' representatives last met in Caracas,
Venezuela, in November 2005, four months after Trinidad and
Tobago didn't sign the PetroCaribe charter.  Thirteen countries,
including Cuba, Jamaica and the Dominican Republic have signed
the accord, which offers them Venezuelan petroleum products on
preferential terms, Bloomberg relates.


=============
U R U G U A Y
=============


COFAC: In Talks with Bandes for US$18 Million Financing Deal
------------------------------------------------------------
Uruguayan banking cooperative COFAC aka Cooperativa Nacional de
Ahorro Credito and Venezuelan development bank Bandes are
currently in talks for a US$18 million recapitalization from the
bank, the Business News Americas reports.

As previously reported, COFAC was suspended by the central bank
as a result of liquidity issues.  The suspension came after the
cooperative failed to seal an US$8 million recapitalization deal
with Bandes.  However, after the suspension was announced, a
Bandes source disclosed that the bank will come to rescue with a
US$10 million financing.

"Cofac might reopen but under a different structure or even go
into liquidation.  Nevertheless, other business partners have
also expressed interest in entering the ownership structure of
Cofac.  The next two or three days will be crucial to sort this
out," an unidentified source told Business News.

Cofac provides retail and commercial banking services and is one
of Uruguay's leading financial institutions in the microcredit
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.

                        *    *    *

As previously reported on Feb. 7, 2006, Fitch Ratings downgraded
the long-term foreign currency debt ratings of Uruguay's
Cooperativa Nacional de Ahorro y Credito aka COFAC to 'D' from
'CC'.  At the same time, Fitch also downgraded COFAC's national
long-term rating to 'D(uy)' from 'B-(uy)'.  The Negative Rating
Watch on the bank's national ratings has been removed.


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


* Venezuela: Talks with Trinidad Over Natural Gas Field Stalled
--------------------------------------------------------------
Peter Wilson at Bloomberg reports that talks between Venezuela
and Trinidad and Tobago on how to divide South America's largest
natural-gas field in the Deltana Platform have stalled, delaying
plans to spend billions of dollars in developing the reserves.  
Further talks are currently not scheduled.

"Our goal has to be to stimulate exploration in our areas where
we have gas, and that is going to be our first priority,"
Trinidad and Tobago Energy Minister Lenny Saith told Mr. Wilson
in an interview.  "Some (of our reserves), not all are in the
Deltana Platform."  Talks began in 2003 on how to divide the
field, and a steering committee was created in 2004.  An
agreement between the two nations was expected last year.

Venezuelan Oil Minister Rafael Ramirez has said that an
agreement is essential for the countries to start work on
developing the Deltana Platform, a project that may produce 40
trillion cubic feet of gas.

According to Bloomberg, talks have lagged since Trinidad and
Tobago, which is the United States' largest supplier of
liquefied natural gas, refused to join Venezuelan President Hugo
Chavez's PetroCaribe initiative.   Minister Saith declined to
say whether the issues were related.

The two countries' representatives last met in Caracas,
Venezuela, in November 2005, four months after Trinidad and
Tobago didn't sign the PetroCaribe charter.  Thirteen countries,
including Cuba, Jamaica and the Dominican Republic have signed
the accord, which offers them Venezuelan petroleum products on
preferential terms, Bloomberg relates.


                            ***********


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

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