TCRLA_Public/060215.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, February 15, 2006, Vol. 7, Issue 33

                            Headlines

A R G E N T I N A

ADRIAN DECO: Validation of Creditors' Claims Ends May 2
CLINICA PRIVADA: End of Verification of Claims Set on April 17
FARMACIA VALSA: Creditors' Claims to be Validated until March 22
FASHION COMPANY: Authentication of Claims Stops on March 23
GASTRONOMIA LA PLATA: Claims Verification Ends March 14

GELAN S.A.: Verification of Claims Ends on March 22
METROGAS: Increases Gas Supplies to Federal District and Edomex
TRUMPLER S.A.: Deadline for General Report Set on March 17


B O L I V I A

REPSOL YPF: Denies Accusations of Oil Smuggling
* Renegotiates with Petroleo Barasileiro on Gas Ventures


B R A Z I L

BANCO BRADESCO: Names Milton Vargas as Investor Relations Head
BANCO DA AMAZONIA: Fitch Affirms BB- Foreign Currency Ratings
CELPA: Realizes US$50 Million from Bond Sales in Int'l Market
CEMAT: Realizes US$50 Million from Bond Sales in Int'l Market
CVRD: Concludes Acquisition of Canico Common Shares

EMPRESA BRASILEIRA: Posts US$80.9 Million of Net Profits in 2005
PETROLEO BRASILEIRO: Renegotiates with Bolivia on Gas Ventures


C A Y M A N   I S L A N D S

CITADEL HOLDINGS: Liquidator to Present Account on Liquidation
CLIPPER CAPITAL: Liquidator to Present Wind Up Report
COLUMBIA INVESTORS: Liquidator to Present Account on Wind Up
ELITE-ON CORPORATION: Shareholders' Final Meeting on February 24
EURO CANADIAN: Sets Final Meeting on February 27

GREENFIELD HOLDING: Liquidator to Report on Wind Up Process
GULFSTREAM INTERNATIONAL: Holds Final General Meeting on Feb. 28
HARBERT FIXED: Shareholders' Final Meeting Set on February 27
TELEMAR: Investing US$6.9 Million to Train Human Resource Staff


C O L O M B I A

ECOPETROL: Names Four Potential Bidders for Cartagena Project


E C U A D O R

* ECUADOR: Drafting Change in Hydrocarbons Bill


H O N D U R A S

HONDUTEL: Needs US$125 Million to Operate 1900MHZ Band


M E X I C O

ALESTRA: Expects 75% of Ebitda from Value-Added Services
BALLY TOTAL: New Directors Join Strategic Alternatives Committee
CFE: Aims to Save US$5 Million Annually Buying Gas from Altamira
CFE: Monterrey Consumers Turn Protest Against High Power Tariffs


P U E R T O   R I C O

MUSICLAND HOLDING: Sets Feb. 17 for Cash Collateral Hearing


T R I N I D A D   &   T O B A G O

DIGICEL LIMITED: Insists TSTT is Causing Interconnection Delay
* Trinidad LNG Storage & Regasification Facility Faces Delay


V E N E Z U E L A

ANCAP: S&P's 'B' Ratings Unaffected by Sale of Assets
PDVSA: Aims 30% Cost Savings from Technology for Cementing Wells

     -  -  -  -  -  -  -  -

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


ADRIAN DECO: Validation of Creditors' Claims Ends May 2
-------------------------------------------------------
Silvia Gloria Muavero, the trustee appointed in Adrian Deco
S.A.'s bankruptcy case, has started validating claims filed by
creditors, Infobae reports.  Claims that have been validated
will be presented in court as individual reports on May 2, 2006.

The submission of the general report on the company's bankruptcy
has also been set on June 14, 2006.

Adrian Deco S.A. began winding up its operations after a Buenos
Aires court declared it bankrupt and appointed Ms. Silvia Gloria
Muavero as trustee.

Ms. Silvia Gloria Muavero, the trustee, can be reached at:

         Avda. Rivadavia 1615
         Buenos Aires


CLINICA PRIVADA: End of Verification of Claims Set on April 17
--------------------------------------------------------------
The end of the verification phase for the claims forwarded by
bankrupt company Clinica Privada Martinez S.A.'s creditors will
be on April 17, 2006, reports Infobae.

The presentation of individual reports on the validated claims
will follow on May 31, 2006.  A general report containing the
summary of events pertaining the company's case as well as the
company's audited business records is also expected in court on
July 12, 2006.

A Buenos Aires court declared Clinica Privada Martinez S.A.
bankrupt, appointing Mr. Carlos Alberto Perez as trustee.

Mr. Carlos Alberto Perez, the trustee, can be reached at:

         Larrea 785
         Buenos Aires


FARMACIA VALSA: Creditors' Claims to be Validated until March 22
----------------------------------------------------------------
The claims of creditors against Farmacia Valsa S.C.S. -- a
Buenos Aires-based bankrupt company -- will be validated by
court appointed trustee, Mr. Luis Maria Escobar, until March 22,
2006.

Infobae states that Mr. Escobar will use the validated claims as
basis for the individual reports, which the trustee will submit
on May 4, 2006.

Mr. Escobar will also present in court a general report on the
company's bankruptcy case on June 19, 2006.

Mr. Luis Maria Escobar, the trustee, can be reached at:

         Viamonte 1646
         Buenos Aires


FASHION COMPANY: Authentication of Claims Stops on March 23
-----------------------------------------------------------
The authentication of claims of creditors against Buenos Aires-
based Fashion Company S.A. will stop on March 23, 2006, reports
Infobae.

Mr. Alberto Javier Samsolo, the trustee appointed by the court
for the company's bankruptcy, will prepare individual reports
out of the validated claims and present them in court on May 9,
2006.

Mr. Samsolo will also submit a general report on June 22, 2006.

Mr. Samsolo, the trustee, can be reached at:

         Paraguay 1225
         Buenos Aires


GASTRONOMIA LA PLATA: Claims Verification Ends March 14
-------------------------------------------------------
Mr. Luis Hugo Di Cesare, the trustee appointed by the Buenos
Aires court for the bankruptcy of Gastronomia La Plata S.R.L.,
will stop verifying claims forwarded by the company's creditors
on March 14, 2006.

Infobae relates that individual reports will be prepared out of
the verified claims.  The reports will be presented in court on
April 27, 2006.  The submission of a general report on the case
will follow on June 12, 2006.

Gastronomia La Plata S.R.L. can be reached at:

         Avda. La Plata 351
         Buenos Aires

Mr. Luis Hugo Di Cesare, the trustee, can be reached at:

         Viamonte 1336
         Buenos Aires


GELAN S.A.: Verification of Claims Ends on March 22
---------------------------------------------------
The verification of claims of bankrupt company Gelan S.A. will
end on March 22, 2006, reports Infobae.  The claims will serve
as basis for the individual reports, which will due on May 4,
2006.  the general report on the case will also be submitted on
June 19, 2006.

Gelan S.A. was declared bankrupt by the Buenos Aires court.  Mr.
Rodolfo Fernando Daniel Torella serves as trustee for the case.

Mr. Rodolfo Fernando Daniel Torella, the trustee, can be reached
at:

         Arcos 3726
         Buenos Aires


METROGAS: Increases Gas Supplies to Federal District and Edomex
---------------------------------------------------------------
MetroGAS S.A. and Maxigas Natural expect to raise gas supplies
to the Federal District and Edomex state in Mexico, according to
an article by newspaper Reforma.  The gas suppliers estimate a
15% and 40% increases due to the construction of new gas-fired
power generation plants.

General Electric (NYSE: GE), under a contract in November 2005,
started on February 7 building fourteen 32MW natural gas-fired
power generation projects in the DF and Edomex starting this
year.

MetroGAS, a subsidiary of Spain's Gas Natural, will invest 100
million pesos (US$9.5 million) to expand its pipeline network,
which will supply gas to five of LFC's plants in the DF and one
in Edomex capital Toluca, the Reforma reported.

Headquartered in Buenos Aires, Argentina, MetroGAS S.A. --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires.  The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area.  The concession is renewable for an
additional 10 years.  MetroGAS supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina.

MetroGAS is currently restructuring an outstanding US$437
million debt with its creditors under the APE -- a scheme where
two-thirds creditor agreement allows a company to submit its
offer for legal approval, which then makes the repayment terms
binding on all creditors.




TRUMPLER S.A.: Deadline for General Report Set on March 17
----------------------------------------------------------
The deadline for the submission of the general report on the
reorganization of Trumpler S.A. is on March 17, 2006, reports
Infobae.  The report shall contain the company's business
records as well as the summary of events pertaining to the
reorganization.

Court-appointed trustee Silvia Elena Gonzalez verified
creditors' claims against Trumpler S.A. until Nov. 9, 2005, and
submitted it in court as individual reports on Dec. 23, 2005.

An informative assembly is scheduled on Sep. 1, 2006.  During
the assembly, the creditors will vote on the company's
settlement proposal.

A court in Eldorado handles the company's case.

Trumpler S.A. can be reached at:

         Avda. San Martin 2554
         Eldorado (Misiones)

Ms. Silvia Elena Gonzalez, the trustee, can be reached at:

         Congreso 257
         Eldorado (Misiones)


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


REPSOL YPF: Denies Accusations of Oil Smuggling
-----------------------------------------------
Spanish-Argentine oil firm Repsol YPF has denied accusations it
smuggled oil in Bolivia, the Associated Press reports.

"The company acted at all times with transparency and the
Bolivian state was always informed of shipments as well as
receiving the corresponding taxes," Repsol said.  "All the
shipments were fully documented and approved by custom
officials."

Jorge Alvarado, the new head of Boliva's state-owned oil company
YPFB, told AP that the Bolivian government is probing the
alleged oil smuggling of the company.

Oil has been taken out without authorization, and for that
documentation has been altered, Alvarado told El Mundo
newspaper.  He revealed that there are signs, according to
customs, that Repsol has altered documents to take oil out of
Bolivia without authorization.

However, the company also denied these charges of falsification
of documents, states AP.

Alvarado revealed to AP that Repsol has been asked to present
proof that the allegations are untrue.

Repsol responded, stating that it had already provided the
necessary documents, relates AP.

There was no smuggling and that there was no intent to avoid any
control and evade paying taxes, Repsol said.


                        *    *    *

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.


* Renegotiates with Petroleo Barasileiro on Gas Ventures
--------------------------------------------------------
Petroleo Brasileiro SA, Brazil's state-controlled oil company,
plans to invest US$5 billion in Bolivia's natural gas industry
in joint ventures with Yacimientos Petroliferos Fiscales
Boliviano, Bolivia's state oil company.

The joint venture is in accordance with Bolivian President Evo
Morales' pledge to nationalize the gas industry by making the
nation an equal partner with international energy companies.

According to Bloomberg, Petrobras has already invested more than
US$1.5 billion in Bolivia since 1995.  Petrobras produces all of
Bolivia's gasoline and 60% of its diesel fuel.  The energy
company imports about 27 million cubic meters of natural gas a
day from Bolivia.  Brazil, though, is Bolivia's only major
natural gas client.

"We are working on a programme of investments in association
with YPFB, with the government, of more than $5bn [?4.2bn,
ú2.9bn) over the next five or six years," Nestor Cervero,
Petrobras' director, was quoted by the Financial Times as
saying.

Mr Cervero said Petrobras would sign an initial deal with YPFB
by the end of the month that would include partnership
agreements on gas production, industrialising the sector,
thermoelectric power and biofuels.

Under the proposed agreement, the parties agree:

   * to build a gas-chemical center on the Bolivia-Brazil
     border;

   * for the participation of YPFN in two refineries operated by
     Petrobras; and

   * for the sale of natural gas and a new contract to operate
     in Bolivia.

Other foreign oil firms are under pressure to renegotiate their
operations in Bolivia.  As previously reported, Repsol YPF SA
cut its reserves by 1.25 billion barrels, a quarter of its
total, on Jan. 26 because of higher taxes in Bolivia and falling
Argentine production.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rate Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.

                        *    *    *

Bolivia's foreign currency long-term debt is rated:
B3 by Moody's, B- by S&P and D by Fitch.


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


BANCO BRADESCO: Names Milton Vargas as Investor Relations Head
--------------------------------------------------------------
Brazil's largest private bank Banco Bradesco S.A. (NYSE: BBD)
has appointed executive VP Milton Silva Vargas as the bank's new
investor relations officer.

Mr. Vargas has been working at Bradesco for the past 29 years.
He will be responsible for fiscal auditing, general accounting,
planning and control, legal, procurement and social-
environmental responsibility areas.

Headquartered in Sao Pauol, Brazil, Banco Bradesco S.A. Banco --
http://www.bradesco.com.br/-- prides itself on serving low- and
medium-income individuals in Brazil since the 1960s.  Bradesco
is Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management.  Bradesco has branches throughout Brazil as well as
one in New York, two in the Bahamas, and four in the Cayman
Islands.  Bradesco offers Internet banking, insurance, pension
plans, annuities, credit card services (including football-club
affinity cards for the soccer-mad population), and Internet
access for customers.  The bank also provides personal and
commercial loans, along with leasing services.

                        *    *    *

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


BANCO DA AMAZONIA: Fitch Affirms BB- Foreign Currency Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed Monday Banco da Amazonia S.A.'s --
aka Basa -- long-term local and foreign currency ratings at
'BB'.  Fitch has also affirmed the bank's local and foreign
currency short-term ratings of 'B', and the national long- and
short-term ratings of 'A+ (bra)' and 'F1 (bra)', respectively.
The bank's individual rating of 'D' and its Support rating of
'4' were also affirmed.  The outlook for all Long-Term ratings
is Stable.

The foreign and local currency ratings of Basa are derived from
the support it has and which Fitch expects it would continue to
receive from its primary shareholder, Brazil's federal
government.  This support also reflects the bank's importance to
Brazil's north region.  The individual rating considers its high
dependence on fees generated by the Constitutional Financing
Fund of the North aka FNO; its slight deterioration in asset
quality; the fall in its time deposits; and Basa's ambitious
strategy of growth and cultural changes in the bank, which is
positive but may only have concrete effects in the medium to
long term.

Despite the support the federal government showed in 2001
through the Federal Financial Institution Revitalization
Program, the probability of support is limited by the potential
restrictions on its capacity to do so, given Brazil's relatively
low sovereign rating.  Considering Basa's size and number of
clients and the potential impact its failure would have on
Brazilian society, the economy, and the financial system as a
whole, Fitch believes sovereign support for Basa in the event of
systemic risk or turmoil would be forthcoming only after other,
larger government-owned banks have been assisted.

Basa's long-term ratings would suffer from deterioration of
sovereign ratings.  Its individual ratings could benefit from a
diversified revenue stream, and strong economic performance,
while potential downside to the individual rating is limited due
to the bank's strong capital base.

Basa, founded in 1942, is 96.92% controlled by the federal
government.  It acts as the development bank for Brazil's north
region, focusing on rural producers and mainly on micro and
small companies.  It has 108 service points -- 94 branches.

Fitch's national ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk.  They are
signified by the addition of an identifier, for the country
concerned, such as 'AAA (bra)' for national ratings in Brazil.


CELPA: Realizes US$50 Million from Bond Sales in Int'l Market
-------------------------------------------------------------
Celpa aka Centrais Eletricas do Para S.A. and Cemat aka Centrais
Eletricas Matogressenses each sold US$50 million in six-year
bonds on the international market.

The 9.5% bonds will mature in 2012.  U.S. investment group
Merrill Lynch managed the bond issuance.

Both companies are controlled by Brazilian power group Grupo
Rede.  They are also seeking financing from the Inter-American
Development Bank to restructure and expand their operations.

Celpa distributes power in the northern state of Para and Cemat
operates in the center-west state of Mato Grosso.

                        *    *    *

As previously reported on Jan. 23, 2006, Standard and Poor's
gave a corporate credit rating of 'B-' to Centrais Eletricas do
Para S.A. with a stable outlook.

                        *    *    *

As previously reported on Dec. 6, 2005, Standard & Poor's
Ratings Services assigned its 'B-' foreign and local currency
corporate credit ratings to the Brazilian energy distribution
companies Centrais Eletricas Matogrossenses S.A. and Centrais
Eletricas do Para S.A. in its global scale. S&P said the outlook
is stable.

In addition, Standard & Poor's assigned its 'B-' foreign
currency rating to the companies' jointly issued six-year US$100
million unconditional, unsubordinated and unsecured senior note
units.


CEMAT: Realizes US$50 Million from Bond Sales in Int'l Market
-------------------------------------------------------------
Cemat aka Centrais Eletricas Matogressenses and Celpa aka
Centrais Eletricas do Para S.A. each sold US$50 million in six-
year bonds on the international market.

The 9.5% bonds will mature in 2012.  U.S. investment group
Merrill Lynch managed the bond issuance.

Both companies are controlled by Brazilian power group Grupo
Rede.  They are also seeking financing from the Inter-American
Development Bank to restructure and expand their operations.

Celpa distributes power in the northern state of Para and Cemat
operates in the center-west state of Mato Grosso.

                        *    *    *

As previously reported on Jan. 23, 2006, Standard and Poor's
gave a corporate credit rating of 'B-' to Centrais Eletricas do
Para S.A. with a stable outlook.

                        *    *    *

As previously reported on Dec. 6, 2005, Standard & Poor's
Ratings Services assigned its 'B-' foreign and local currency
corporate credit ratings to the Brazilian energy distribution
companies Centrais Eletricas Matogrossenses S.A. and Centrais
Eletricas do Para S.A. in its global scale. S&P said the outlook
is stable.

In addition, Standard & Poor's assigned its 'B-' foreign
currency rating to the companies' jointly issued six-year US$100
million unconditional, unsubordinated and unsecured senior note
units.


CVRD: Concludes Acquisition of Canico Common Shares
---------------------------------------------------
Companhia Vale do Rio Doce aka CVRD has concluded the
acquisition of Canico Resource Corp.'s outstanding common
shares, which were not acquired under the take-over bid that
expired on Dec. 8, 2005, as stated in a statutory compulsory
acquisition.

CVRD acquired the remaining 354,978 common shares of Canico,
0.8% of its total capital, for CAD$20.80 (US$17.99) in cash per
Canico share.  Therefore, CVRD now owns 100% of Canico.

Canico will be delisted from the Toronto Stock Exchange
effective at the close of business today.

Canico owns the Onca Puma nickel laterite project, a ferronickel
deposit located in the Brazilian state of Para.  According to
the feasibility study, the plant will have a nominal capacity to
produce 57,000 tons of nickel per year and its development will
demand investments of US$1.1 billion.

CVRD is reviewing the Canico Onca Puma nickel laterite project
in order to maximize the synergies with its current and future
operations, and, therefore the return to its shareholders.

The acquisition of Canico and the Onca Puma project is an
important step taken by CVRD to become one of the global leading
players in the non-ferrous metals business in the future.  At
the same time, it is consistent with company's strategic goal of
continuous shareholder value creation.

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'.


EMPRESA BRASILEIRA: Posts US$80.9 Million of Net Profits in 2005
----------------------------------------------------------------
Empresa Brasileira de Telecomunicacoes S.A. reported net profits
of 174 million reais (US$80.9 million) in 2005 compared to
losses of 339 million reais in 2004.

However, Empresa Brasileira reported a net loss of 16.9 million
reais in the fourth quarter of 2005, worse than most analysts'
expectations.

The company said that cost was the main factor behind the weak
fourth quarter net income.  Third party expenses increased 42%
year-on-year to 81 million reais and other costs jumped 108% to
65 million reais.

Ebitda was 354 million reais, 32% below the forecast and 27%
below consensus estimates.

In the fourth quarter 2005 Embratel's revenues from long
distance services slumped 4% to 49 million reais, but data
transfer services revenues increased 16% compared to the fourth
quarter in 2004.

According to Business News Americas, long distance is a problem
for Embratel, with increased competition from the likes of local
operator Intelig and the fixed line operators, as well as voice
over IP, which creates new competition and increased choice for
customers.

Headquartered in Rio de Janeiro, Brazil, Embratel S.A., is the
incumbent long-distance service provider in Brazil and offers a
wide array of advanced communications services over its own
network.

                        *    *    *

On Nov. 15, 2005, Moody's Investors Service has today placed the
debt ratings of Empresa Brasileira de Telecomunicacoes S.A. on
review for possible upgrade.  The review follows Embratel's
overall improved capital structure following a capital increase
earlier this year of approximately BRL 1.8 billion to repay
existing debt.  Additionally, the rating review for possible
upgrade recognizes Telefonos de Mexico S.A. de C.V.'s, rated A2,
increased ownership of 72.3% of Embratel following the recently
announced organizational restructuring of Telmex's operations in
Brazil.

Ratings placed under review are:

   -- US$180 million senior unsecured global bonds due in 2008:
      B1 (Foreign Currency)

   -- Global Local Currency Issuer Rating -- B1

   -- Brazilian National Scale Issuer Rating -- Baa1.br


PETROLEO BRASILEIRO: Renegotiates with Bolivia on Gas Ventures
-------------------------------------------------------------
Petroleo Brasileiro SA, Brazil's state-controlled oil company,
plans to invest US$5 billion in Bolivia's natural gas industry
in joint ventures with Yacimientos Petroliferos Fiscales
Boliviano, Bolivia's state oil company.

The joint venture is in accordance with Bolivian President Evo
Morales' pledge to nationalize the gas industry by making the
nation an equal partner with international energy companies.

According to Bloomberg, Petrobras has already invested more than
US$1.5 billion in Bolivia since 1995.  Petrobras produces all of
Bolivia's gasoline and 60% of its diesel fuel.  The energy
company imports about 27 million cubic meters of natural gas a
day from Bolivia.  Brazil, though, is Bolivia's only major
natural gas client.

"We are working on a programme of investments in association
with YPFB, with the government, of more than $5bn [?4.2bn,
ú2.9bn) over the next five or six years," Nestor Cervero,
Petrobras' director, was quoted by the Financial Times as
saying.

Mr Cervero said Petrobras would sign an initial deal with YPFB
by the end of the month that would include partnership
agreements on gas production, industrialising the sector,
thermoelectric power and biofuels.

Under the proposed agreement, the parties agree:

   * to build a gas-chemical center on the Bolivia-Brazil
     border;

   * for the participation of YPFN in two refineries operated by
     Petrobras; and

   * for the sale of natural gas and a new contract to operate
     in Bolivia.

Other foreign oil firms are under pressure to renegotiate their
operations in Bolivia.  As previously reported, Repsol YPF SA
cut its reserves by 1.25 billion barrels, a quarter of its
total, on Jan. 26 because of higher taxes in Bolivia and falling
Argentine production.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rate Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.


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


CITADEL HOLDINGS: Liquidator to Present Account on Liquidation
--------------------------------------------------------------
Buchanan Limited, liquidator of Citadel Holdings Limited, will
present an account on the liquidation process of the company on
Feb. 24, 2006, during the extraordinary final general meeting.

The meeting will be held at the offices of Cititrust (Cayman)
Limited, CIBC Financial Centre, George Town, Grand Cayman.

As reported by Troubled Company Reporter on Feb. 3, 2006,
Citadel Holdings Limited's creditors are given until Feb. 24,
2006 to present proofs of their claim to Buchanan Limited.

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

Buchanan Limited, the liquidator, can be reached at:

          P.O. Box 1170, Grand Cayman
          Cayman Islands


CLIPPER CAPITAL: Liquidator to Present Wind Up Report
-----------------------------------------------------
Shareholders of Clipper Capital Offshore Fund Limited will have
a final meeting on Feb. 27, 2006, to hear a report on the wind
up process by the company's liquidator.

The meeting will be held at 10:00 a.m., in the offices of
Trident Trust Company (Cayman) Limited, Fourth Floor, One
Capital Place, P.O. Box 847, George Town, Grand Cayman, Cayman
islands.

Any member entitled to attend and vote is entitled to appoint a
proxy to attend and vote instead of him, and such proxy need not
be a member.

As reported by Troubled Company Reporter on Jan. 31, 2006, the
deadline for the verification of claims of Clipper Capital
Offshore Fund Limited's creditors is Feb. 24, 2006.

Clipper Capital entered voluntary wind up after its shareholders
passed a resolution allowing the liquidation and appointing
Trident Directors (Cayman) Ltd. as liquidator.

Trident Directors (Cayman) Ltd., the voluntary liquidator, can
be reached at:

         P.O. Box 847, George Town
         Grand Cayman

         Donald Spence
         Telephone: (345) 949 0880
         Facsimile: (345) 949 0881


COLUMBIA INVESTORS: Liquidator to Present Account on Wind Up
------------------------------------------------------------
Q&H Nominees Ltd. -- liquidator of Columbia Investors Ltd. --
will present an account on the wind up process of the company
during a final meeting of the company's shareholders on Feb. 27,
2006, at the offices of the liquidator, at 1:00 p.m.

It will also be decided during the final meeting the manner in
which the books, accounts and documentation of the company and
of the liquidator should be maintained and subsequently
disposed.

Anyone qualified to attend the meeting but is unable to make it
may appoint a proxy by completing, signing and returning the
form of proxy before the start of the meeting.  A proxy need not
be a member or creditor of the company.

As reported by Troubled Company Reporter on Feb. 6, 2006,
creditors' proofs of claim will be verified until Feb. 24, 2006.

Columbia Investors Ltd. started liquidating its assets on Jan.
4, 2006.

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

         Third Floor, Harbour Centre
         P.O. Box 1348 GT, Grand Cayman
         Cayman Islands


ELITE-ON CORPORATION: Shareholders' Final Meeting on February 24
----------------------------------------------------------------
The final meeting of shareholders of Elite-On Corporation --
formerly called Eliteondotcom Corp. -- will be on Feb. 24, 2006.
During the meeting, accounts on the company's wind up process
will be presented.  The company will also authorize the
liquidator to retain records of the company for a period of five
years from the dissolution of the company.

The meeting will be held at 8F., No.392, Ruei-guang Rd., Neihu
District, Taipei, Taiwan (R.O.C.), at 2:00 p.m.

Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead.  A proxy
need not be a member or creditor.

As reported by Troubled Company Reporter on Feb. 2, 2006, Mr.
Hsing-Hseng Lin, liquidator of Elite-On Corporation, is giving
creditors until Feb. 10, 2006, to have their claims validated by
him.

Elite-On Corporation -- formerly called as Eliteondotcom Corp. -
- entered voluntary liquidation on Jan. 6, 2006.

Mr. Hsing-Hseng Lin, the voluntary liquidator, can be reached
at:

         c/o P.O. Box 2804GT, Grand Cayman
         Cayman Islands

         Campbells
         Telephone: (345) 949-2648
         Facsimile: (345) 949-8613


EURO CANADIAN: Sets Final Meeting on February 27
------------------------------------------------
A final general meeting of Euro Canadian International Fund
Limited -- company in voluntary liquidation -- has been
scheduled for Feb. 27, 2006.  The meeting will be held at the
registered office of the company at 11:00 a.m.

During the meeting, the liquidator -- Mr. Christopher D. Johnson
-- will report on the winding up of the company.  Mr. Johnson
will also be authorized to retain company records for a period
of six years from the dissolution of the company.

Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead.  A proxy
need not be a member or creditor.

Mr. Christopher D. Johnson, the voluntary liquidator, can be
reached at:

         P.O. Box 2499GT
         Grand Cayman, Cayman Islands

         Shaun Gerard
         Telephone: (345) 946-0820
         Facsimile: (345) 946-0864


GREENFIELD HOLDING: Liquidator to Report on Wind Up Process
-----------------------------------------------------------
Greenfield Holding Company Limited's liquidator will present a
report on the wind up process of the company during the final
meeting of the shareholders on Feb. 24, 2006.  The meeting was
formerly scheduled on Jan. 26, 2005, at 10:00 a.m.

The meeting will be held at Shizuo Takahashi, of Mitsui O.S.K.
Lines, Ltd., of 1-1, Toranomon 2-Chome, Minato-ku, Tokyo 105-
8688, Japan at 10:00 a.m.

The liquidator will also be authorized to retain the records of
the company for a period of three years from the dissolution of
the company, after which they may be destroyed.

Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead.  A proxy
need not be a member or creditor.

As reported by Troubled Company Reporter on Dec. 15, 2005,
Greenfield Holding entered voluntary liquidation on Nov. 24,
2006, and appointed Shizuo Takahashi as liquidator.

Creditors' claims were verified until Jan. 26 2005.

Shizuo Takahashi, the voluntary liquidator, can be reached at:

         Mitsui O.S.K. Lines, Ltd.
         1-1, Toranomon 2-Chome, Minato-ku
         Tokyo 105-8688, Japan


GULFSTREAM INTERNATIONAL: Holds Final General Meeting on Feb. 28
----------------------------------------------------------------
The final general meeting of the shareholders of Gulfstream
International -- company in voluntary liquidation -- is
scheduled on Feb. 28, 2006, at 10:00 a.m., at the offices of
Bessemer Trust Company (Cayman) Limited, P.O. Box 694, Edward
Street, George Town, Cayman Islands.

Shareholders will hear a report on the wind up process by the
company's liquidator.

Any member entitled to attend and vote is entitled to appoint a
proxy to attend and vote in his stead, and such proxy need not
be a member or a creditor.

As reported by Troubled Company Reporter on Jan. 30, 2006,
Gulfstream International filed for voluntary liquidation on Dec.
29, 2005, at the Grand Court of the Cayman Islands.

All creditors are given until Feb. 28, 2006, to file for proofs
of claim.


HARBERT FIXED: Shareholders' Final Meeting Set on February 27
-------------------------------------------------------------
Shareholders of Harbert Fixed Income Spread Opportunities Master
Fund, Ltd. and Harbert Fixed Income Spread Opportunities
Offshore Fund, Ltd. -- companies in voluntary liquidation --
will hold a final meeting on Feb. 27, 2006, at the offices of
Ogier, Attorneys, Queensgate House, South Church Street, Grand
Cayman, at 10:00 a.m.

During the meeting the liquidator will lay accounts on the wind
up process.  The liquidator will also be authorized to retain
the records of the company for a period of five years from the
dissolution of the company.

Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead.  A proxy
need not be a member or a creditor.

As reported by Troubled Company Reporter on Feb. 7, 2006,
creditors of Harbert Fixed Income Spread Opportunities Master
Fund, Ltd., and Harbert Fixed Income Spread Opportunities
Offshore Fund, Ltd. -- companies in voluntary liquidation -- are
required to submit proofs of claim to Mr. Joel B. Piassick, the
company's liquidator, on or before Feb. 24, 2006.

Harbert Fixed Income Spread Opportunities Master Fund, Ltd., and
Harbert Fixed Income Spread Opportunities Offshore Fund, Ltd.,
started liquidating assets on Jan. 12, 2006.

Mr. Joel B. Piassick, the liquidator, can be reached at:

         P.O. Box 1234GT, Grand Cayman
         Cayman Islands


         Julie O'Hara
         Telephone: (345) 949 9876
         Facsimile: (345) 949 1986


TELEMAR: Investing US$6.9 Million to Train Human Resource Staff
---------------------------------------------------------------
According to Valor Economico, Telemar aka Tele Norte Leste
Participacoes SA will invest 15 million reais (US$6.9 million)
in a human resource training program for two years.

The program, called Telemar Generation, will train high
potential employees to fill key strategic roles within the
company in the coming years.

"We live in a highly competitive environment where products and
technologies change every day, and because of this we need
people who stand out," HR director Julio Fonseca said.

This week 2,300 candidates aged up to 36 years with a degree and
fluent in English will compete in exams for 150 places, Business
News Americas relates.  Twenty people will also be selected for
courses in supplying services at prestigious U.S. business
schools such as Wharton, Stanford and Harvard University.

Telemar has 7,536 employees in its fixed line business, as well
as Oi mobile and internet operations in Brazil.

Tele Norte Leste is one of three regional fixed-line phone
companies created in the 1998 breakup of former monopoly
Telebr s.  In 2001, the holding company combined its 16 wireline
operating subsidiaries into one unit, which was renamed Telemar
Norte Leste and now provides local access, intraregional and
international long-distance, and data transmission over 15
million lines in eastern and northern Brazil, from Rio de
Janeiro to the Amazon.  It also offers wireless phone service to
about 8 million subscribers through the "Oi" brand (Portuguese
for "hello").  Holding company Telemar Participacoes, made up of
regional investment groups, controls 54% of TNL.

                        *    *    *

On Nov. 9, 2005, Fitch Ratings assigned a 'BB-', Positive
Outlook to Telemar Overseas proposed offering of US$150 million
notes to be issued in Brazilian Reais and paid in U.S. currency.
Telemar Norte Leste S.A will unconditionally and irrevocably
guarantee the proposed notes.

The 'BB-' rating of the proposed notes incorporates transfer
and convertibility risks associated with the settlement of the
notes, as they will be issued in Brazilian reais and paid in
U.S. dollars at market exchange rates; the new issuance will
not add foreign exchange risk to the company's financial risk
profile. The Positive Outlook reflects the recent change in the
Rating Outlook to Positive from Stable of several Brazilian
corporates, including Telemar Norte Leste S.A., as a
consequence of the revision of the Outlook to Positive to the
'BB-' foreign currency rating of the Federative Republic of
Brazil.


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


ECOPETROL: Names Four Potential Bidders for Cartagena Project
-------------------------------------------------------------
Ecopetrol S.A., Colombia's state oil company, has prequalified
four potential bidders for an EPC contract to modernize and
expand its Cartagena refinery.  The submission deadline ended on
January 30.

The pre-selected companies are:

    * Swiss mining and trading company Glencore,
    * UK oil company BP's (NYSE: BP) North American subsidiary,
    * Japanese engineering company Marubeni, and
    * Brazil's federal energy company Petrobras (NYSE: PBR).

Ecopetrol will call for bids soon from these companies,
including economic bids for the project.  Bids will be received
by June 2006 and the contract awarded by July, according to
Ecopetrol's timetable.  Construction is scheduled to wrap up in
2010.

The Cartagena project, in the Mamonal industrial zone, is
designed to increase the processing capacity of the refinery to
140,000 barrels a day (b/d) of crude from 75,000b/d
currently.  At present the refinery exports about
42,800b/d, representing 18% of Ecopetrol's total exports.

The increased production from the refinery will be distributed
mainly on the domestic market and on international markets such
as the Caribbean and the US.

Ecopetrol is an integrated oil Company majority-owned by the
Colombian government.  The Company's activities include
exploration for and production of crude oil and natural gas and
refining, transportation, distribution, and marketing of refined
products. Ecopetrol is Latin America's fourth-largest integrated
oil concern.

                        *    *    *

Fitch assigns a BB rating on Ecopetrol's foreign currency long-
term debt.


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


* ECUADOR: Drafting Change in Hydrocarbons Bill
-----------------------------------------------
Ecuador is working on a legislation that would reform the
hydrocarbons bill, Economy Minister Diego Borja made the
announcement to foreign correspondents Thursday.  This is to
compel foreign oil corporations extracting crude in the Amazon
region to share 50% of the windfall gained as a result of high
global oil prices.

According to Merco Press, Borja insisted that foreign firms
should not take all the extra profits from surging oil prices
and share it the government -- the owner of the natural resource
that these corporations are investing on.

Borja told the press that other countries have also made
modifications in their tax and royalty regimes due to the boost
in prices.

Merco Press relates that Mr. Borja had no intentions of making
changes to the original contracts.

"This is not a contract-renegotiation measure" he said.  "It's a
measure of legal re-codifying and, in that sense, is a
unilateral move by the state."

The modifications will be implemented once the congress approves
it, states Merco Press.

The move could bring in an extra US$400 million a year to the
government, and even more if it is applied retroactively to
2000, when the country adopted the US dollar as national
currency, Borja revealed to the press, pointing out that accords
with oil firms were the only ones not to undergo a formal review
since the shifting of currency to the US dollar.

Borja stated that global crude prices are now as much as four
times higher than they were 10 or 15 years ago -- when Quito was
having talks with foreign firms on concessions for a drilling
project in Amazon.

                        *    *    *

As reported by Troubled Company Reporter on Oct. 28, 2005,
Standard & Poor's Ratings Services affirmed on Oct. 4, 2005, its
'CCC+' long-term sovereign credit rating on the Republic of
Ecuador and removed it from CreditWatch with negative
implications, where it was placed on Aug. 23, 2005.  Standard
& Poor's also said that the outlook on Ecuador is stable.


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


HONDUTEL: Needs US$125 Million to Operate 1900MHZ Band
------------------------------------------------------
Hondutel's Chief Executive Officer Jacobo Regalado was quoted by
the La Tribuna saying that the state's telecommunications
company will need approximately US$125 million to set up a
mobile license in the 1900MHz band.

Mr. Regalado's estimations are much greater than the 600 million
lempiras (US$32 million) budget Hondutel's former CEO Alonso
Valenzuela had speculated was necessary to start using the
mobile license.  He added that Hondutel is currently analyzing
the legal framework with which it could start offering mobile
services.

Hondutel has said in previous reports that mobile telephony may
be one of the ways the company can compensate for the loss of
approximately US$75 million in revenue a year it expects to see
as a result of the ending of its monopoly of the long distance
telephony market on December 25, 2005.

Business News Americas relates that Hondutel was granted the
mobile license in part as compensation for it losing its
monopoly of the long distance market.  As well as mobile
telephony, Hondutel is looking at a restructuring process to cut
operational costs which amount to some 63 million lempiras a
month.

Regalado said the company could operate with less than half of
the 3,000 employees it currently has but would not give details
of potential layoffs before having evaluated every operational
area, Business News relates.  The CEO ruled out the option of
selling the company, adding that his job was to strengthen it.

Hondutel is the state-owned fixed-line telecommunications
monopoly of Honduras.  It is currently seeking ways of fending
off competition since it lost its monopoly on long distance
telephony on Dec. 25, 2005.

                        *    *    *

As reported in Troubled Company Reporter on Jan. 11, 2006,
analysts stated that Hondutel will have to find a strategic
partner in order to survive the competition in the Internet and
mobile telephony segments, as it faces an uncertain future after
its monopoly of the international long distance market, opening
up the market to greater competition.


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


ALESTRA: Expects 75% of Ebitda from Value-Added Services
--------------------------------------------------------
Alestra SA's chief executive officer Rolando Zubiran told
Business News Americas that the company expects value-added
Internet, voice and data services to represent 75% of its Ebitda
in a short term period with the remainder coming from long
distance telephony services.  The company operates under the
AT&T brand.

The company started focusing on value-added services after it
confronted a drop in national and international calling rates in
2001.

Based on numbers from mid-2005, Mr. Zubiran estimated that
Ebitda was split 60% from value-added services and 40% from long
distance.

"[Our plans are to] continue designing and providing value-added
services with an emphasis on security, managed services and
virtual private network services given that those areas
represent greater value for our clients and provide greater
profit margins for Alestra," Mr. Zubirin told Business News.

Alestra posted Ebitda of US$27 million in the fourth quarter of
2005 compared to US$26 million in both 3Q05 and 4Q04.  Total
Ebitda for the year was US$101 million.  Net profit for 2005 was
48 million pesos (US$4.6 million).

Alestra, which is jointly owned by AT&T, Alfa and BBVA Bancomer
bank, extended in September last year an agreement to offer
products under the AT&T brand for two years and services of AT&T
Global Network until 2010, Business News relates.

Mr. Zubiran was complementary of the merger of AT&T with
Southwestern Bell Communications (NYSE: SBC) currently underway.

                        *    *    *

As previously reported on Nov. 14, 2005, Fitch Ratings affirmed
Alestra's, S. de R.L. de C.V. foreign and local currency ratings
at 'B-' and revised the Rating Outlook to Negative from Stable.
The rating action applied to approximately $387 million of debt,
including $304 million senior notes due 2010, $46 million senior
notes due 2009, and $37 million senior notes due 2006.


BALLY TOTAL: New Directors Join Strategic Alternatives Committee
----------------------------------------------------------------
Bally Total Fitness announced Friday that Charles J. Burdick,
Barry R. Elson and Don R. Kornstein were elected to Bally's
board of directors at the company's annual meeting of
stockholders on Jan. 26, 2006.  The results of the meeting were
certified by the independent inspectors of election, IVS
Associates, Inc.

The company also announced that Messrs. Kornstein and Elson will
join the board's Strategic Alternatives Committee.  Their
appointment expands the committee, which will be co-chaired by
Mr. Kornstein and John W. Rogers, Jr., lead independent director
of Bally's board, to five independent directors.

The Strategic Alternative Committee was established in January
to lead a strategic process -- alongside financial advisors J.P.
Morgan Securities, Inc., and The Blackstone Group -- in
evaluating various alternatives to address the company's long-
term capital structure, which may include recapitalization,
strategic transaction or the sale of the company.

The company stated that newly elected independent directors have
been appointed to its compensation, audit, and nominating and
corporate governance committees.

Bally also said its board of directors has re-appointed Eric
Langshur to the board, replacing Adam Metz, who resigned to
permit Mr. Langshur to rejoin the board.  Mr. Langshur was re-
appointed by unanimous vote of the board, including the new
directors.  Mr. Langshur has been a board member since Dec.
2004, and served as chairman of its Audit Committee for the past
several months, a position he will continue to hold.

"We are pleased that Eric Langshur will continue in his role as
Chairman of the Audit Committee, and want to thank Adam Metz for
his service to the company," said Bally's Chairman and CEO, Paul
A. Toback.

"We also welcome the new independent directors to the board and
look forward to working with them constructively as we continue
to take important steps to build Bally for the future,"
continued Toback.  "We will continue to execute our operating
plan that is driving results, while at the same time focusing on
enhancing value for our shareholders."

The company also announced that it has agreed with Pardus
Capital Management and Liberation Investments that the parties
will dismiss all pending litigation, including the lawsuit in
Delaware Chancery Court regarding Bally's Stockholder Rights
Plan.

Additionally, the company noted that in the vote count certified
by IVS Associates, shareholders rejected Bally's proposed 2006
Omnibus Equity Compensation Plan, and the proposals by
Liberation Investments did not receive sufficient votes for
passage.

Bally Total Fitness is the largest and only US commercial
operator of fitness centers, with approximately four million
members and 440 facilities located in 29 states, Mexico, Canada,
Korea, China and the Caribbean under the Bally Total Fitness(R),
Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R),
Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands.
With an estimated 150 million annual visits to its clubs, Bally
offers a unique platform for distribution of a wide range of
products and services targeted to active, fitness-conscious
adult consumers.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 6, 2005,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Bally Total Fitness Holding Corp. to developing
from negative.  The corporate credit rating remains at 'CCC'.

Bally's ratings were originally placed on CreditWatch on
Aug. 8, 2005, following the commencement of a 10-day period
after which an event of default would have occurred under the
Company's $275 million secured credit agreement's cross-default
provision and the debt would have become immediately due and
payable.  Subsequently, Bally entered into an agreement with
lenders to extend the 10-day period until Aug. 31, 2005.  Prior
to Aug. 31, the company received consent from its bondholders
extending its waiver of default to Nov. 30, 2005.


CFE: Aims to Save US$5 Million Annually Buying Gas from Altamira
----------------------------------------------------------------
CFE aka Comision Federal de Electricidad will save US$5 million
a year by buying gas from Anglo-Dutch oil firm Shell's Altamira
liquefied natural gas regasification terminal rather than from
state oil firm Pemex, local press quoted CFE finance investment
projects director Eugenio Laris as saying.

The CFE will pay Shell (NYSE: RDS-B) the Henry Hub LNG index
price plus US$0.36 per million British Thermal Units for the
gas, Business News Americas relates.

In 2005, the average Henry Hub LNG index price was US$8.61/MBTU.

Shell will start to supply LNG to the Altamira terminal in
Tamaulipas state from September 30, 2006, a Shell spokesperson
told Business News.

CFE signed a 15-year LNG supply contract with Shell to be the
sole offtaker from Altamira in October 2003, allowing CFE to
supply 500 million cubic feet a day of gas to its Altamira,
Tuxpan and Tamazunchale power plants on the Gulf of Mexico
coast, Business News states.

                        *    *    *

CFE is a state-owned integrated power company that dominates
generation, transmission and distribution in Mexico.  It has
20.6 million clients, 39,182km of transmission infrastructure,
156,647MVA transformation capacity and 163 generation plants
that at end-March 2003 had 40,350MW combined capacity.  Seventy
five per cent of sales are direct to the client, 24.5% are to
Mexico City distributor Luz y Fuerza del Centro and the
remaining 0.5% are exports.  The industrial sector accounts for
61% of direct sales, followed by residential (23%), commercial
(7%), agriculture (5%) and services (4%).

The company suffered increasing losses for 2003 and 2004.  CFE
incurred MXN6.2 billion loss in 2003, and MXN119 billion loss in
2004.


CFE: Monterrey Consumers Turn Protest Against High Power Tariffs
----------------------------------------------------------------
According to a report from newspaper Milenio, about 8,000
customers of Mexico's state power company CFE aka Comision
Federal de Electricidad in Monterrey, Nuevo Leon, turned off
their lights on February 8 at 10:00 p.m. for 10 minutes to
protest against the electric company's high winter power service
tariffs.

The Alianza de Usuarios de Servicios Publicos organized the
protests.  Some people in Monterrey have already stopped paying
their CFE bills due to the high prices, according to Business
News Americas.

                        *    *    *

CFE is a state-owned integrated power company that dominates
generation, transmission and distribution in Mexico.  It has
20.6 million clients, 39,182km of transmission infrastructure,
156,647MVA transformation capacity and 163 generation plants
that at end-March 2003 had 40,350MW combined capacity.  Seventy
five per cent of sales are direct to the client, 24.5% are to
Mexico City distributor Luz y Fuerza del Centro and the
remaining 0.5% are exports.  The industrial sector accounts for
61% of direct sales, followed by residential (23%), commercial
(7%), agriculture (5%) and services (4%).

The company suffered increasing losses for 2003 and 2004.  CFE
incurred MXN6.2 billion loss in 2003, and MXN119 billion loss in
2004.


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


MUSICLAND HOLDING: Sets Feb. 17 for Cash Collateral Hearing
-----------------------------------------------------------
As previously reported in the Troubled Company Reporter on
Jan. 23, 2006, Judge Stuart M. Bernstein of the U.S. Bankruptcy
Court for the Northern District of Georgia approved the
Musicland Group Inc. and its debtor-affiliates' request to use
the Cash Collateral on an interim basis.

According to Craig Wassenaar, chief financial officer of
Musicland Holding Corp., the Debtors require the use of the Cash
Collateral to, among other things, pay present operating
expenses, including payroll, and to pay vendors on a going-
forward basis to ensure a continued supply of materials
essential to the Debtors' continued viability.

The Debtors will limit their use of cash collateral to amounts
specified in a 12-Week Budget.  A full-text copy of Musicland's
week-by-week Cash Flow Forecast through March 31, 2006, is
available at no charge at http://ResearchArchives.com/t/s?476

                            *    *    *

The Court has rescheduled the Final Cash Collateral Hearing to
February 17, 2006, at 10:00 a.m.

The Debtors can continue to use the Cash Collateral up to the
conclusion of that hearing.

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


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


DIGICEL LIMITED: Insists TSTT is Causing Interconnection Delay
--------------------------------------------------------------
In a statement released last week, Digicel Limited said that the
Telecommunication Services of Trinidad and Tobago -- TSTT -- is
continuing to dictate the interconnection timetable and is
intentionally impeding the process, the Trinidad Express
relates.

"It continues to be all very mysterious that TSTT has not
confirmed the whereabouts of this equipment for which Digicel
was made to pay over $9 million," Stephen Brewer, Digicel's CEO
said in the statement.  "This is yet another ploy in the long
list of tactics that TSTT has used to frustrate and delay the
liberalisation process and deny choice to the citizens of this
country.

"Digicel is ready to launch. We have installed a nationwide
network with state-of-the-art equipment and assembled and
trained the finest team of professionals to deliver world class
mobile telecommunications services to the people of Trinidad and
Tobago, as soon as TSTT agrees to a date for interconnection,"
Mr. Brewer added. "We will be the standard against which all
other mobile operators will be judged-we implore the
Telecommunications Authority to urgently call upon TSTT to stop
obstructing the process, get on with the interconnection and
ensure that it is completed before Carnival."

The release disclosed that TATT chairman Khalid Hassanali
announced on Jan. 31, 2006, that the TSTT interconnection
equipment had arrived in Trinidad.

"Although the equipment has been in the country for ten days
prior, Digicel awaits confirmation by TSTT as to the whereabouts
of this equipment and firm dates for testing and
interconnection."  However, TSTT last week said that there were
remaining pieces of interconnection equipment still to come into
the country, the Trinidad Express relates.

                        *    *    *

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

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


* Trinidad LNG Storage & Regasification Facility Faces Delay
------------------------------------------------------------
The completion of the US$240 million (J$15.5 billion) liquefied
natural gas storage and regasification facility of Trinidad and
Tobago will be delayed for two years, the Jamaica Observer
Relates.

The delay, the Observer states, is caused by a financing deal
that has yet to be completed.  Before the financing could be put
in place, the front end engineering design should have been
completed.  The study is set for release in June.

The facility was set to operate in time for a memorandum of
understanding between Trinidad and Jamaica.  Trinidad is to
supply 1.15 million tons per annum of LNG to Jamaica at
"competitive prices" for 20 years.  The plant will allow storage
of LNG in its cold form at Port Esquivel and then distributed
through pipelines to end users.

Jamaica currently uses 26 million barrels of oil a year -- with
bauxite, power and transport accounting for well over 90% --
which would be equivalent to approximately four million tonnes
of LNG.


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


ANCAP: S&P's 'B' Ratings Unaffected by Sale of Assets
-----------------------------------------------------
Administracion Nacional de Combustibles Alcohol y Portland S.A.
(ANCAP; B/Positive/--) recently announced that it has reached an
agreement to sell a 46.15% equity stake in Argentina-based fuel
distribution company Petrolera del Conosur S.A. (PCSA; N.R.) to
a Petroleos de Venezuela S.A. (PDVSA; B+/Watch Dev/--)
subsidiary for about $15 million.  Since ANCAP's fuel
distribution activities in Argentina do not represent a
significant source of cash generation for the company, it is
believed that ANCAP's credit quality is not affected by the
sale.  Consequently, the sale will not affect ANCAP's ratings.

ANCAP's core business and main cash generation are expected to
continue coming from its Refining & Marketing division in
Uruguay.  However, the pesification under the Argentine law of a
loan at PCSA -- and a guarantee provided by ANCAP as accessory -
- is being disputed in the Argentine courts.  In case of an
unfavorable ruling overturning the obligation's pesification,
further assistance to PCSA might pressure ANCAP's liquidity.
Nevertheless, it is believed that ANCAP's ability to refinance
part of that obligation coupled with its strong cash position in
the current pricing environment significantly offset these
risks.


PDVSA: Aims 30% Cost Savings from Technology for Cementing Wells
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In a prepared statement, Petroleos de Venezuela S.A. aka PDVSA
has started applying a proprietary technology for the cementing
of oil and gas wells that could translate into cost savings of
up to 30%.

PDVSA says the new technology, known as SOLSURF, can save the
company up to 30 million bolivares (US$14,000) per well.  The
company's savings have totaled around 230 million bolivares.
The company drilled over 1,000 new wells last year.

PDVSA said it is moving to apply the new technology "at a
national level" after 14 pilot tests with different cementing
companies, Business News Americas relates.

SOLSURF was first tried in the Ceuta field of the Tomoporo
district in western Venezuela and afterwards in three fields in
Monagas, eastern Venezuela: El Furrial, Pirital and Santa
BA≠rbara.  In 2006 it will be tried in the Borburata field in
Barinas state and the La Victoria field in Apure state, Business
News relates.

SOLSURF is a trademark technology developed by the well
construction and maintenance area of PDVSA research and
technology arm, Intevep's E&P department.

PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and
foreign currency ratings of Petroleos de Venezuela S.A. aka
PDVSA to 'BB-' from 'B+'.  The rating of PDVSA's export
receivable future flow securitization, PDVSA Finance Ltd, was
also upgraded to 'BB+' from 'BB'.  In addition, Fitch has
assigned PDVSA a 'AAA(ven)' national scale rating.  The Rating
Outlook is Stable.  Both rating actions follow Fitch's November
2005 upgrade of Venezuela's sovereign rating.


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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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