TCRLA_Public/060222.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 22, 2006, Vol. 7, Issue 38

                            Headlines

A R G E N T I N A

CLIMA HEIL: Trustee Sets April 17 Deadline to Verify Claims
LION D: End of Claims Validation Set on April 4
RED SISTEMAS: End of Claims Verification Phase on March 20
SANATORIO PROFESOR: Deadline for Claims Verification on April 17
TELEFONICA DE ARGENTINA: Invests US$16.3M in Fiber Optic Network

UNIDAD ASISTENCIAL: Verification of Claims Begins, Ends Apr. 10
WANG S.R.L.: Claims Against Company Undergo Validation
YACIMIENTOS CARBONIFEROS: Inks US$285 Mil. Financing from Gov't
* BUENOS AIRES: IFC Hosts Consultation on Pulp Mills' Draft CIS


B E R M U D A

ENDURANCE SPECIALTY: S&P Assigns BB+ Rating on Preferred Stock
ORN GLOBAL: Creditors Given until March 15 to Submit Claims
PXRE REINSURANCE: A.M. Best Lowers Fin'l Stength Ratings to B++
PXRE REINSURANCE: Fitch Downgrades IFS Ratings to BB+
* AM Best Holds Neg. Outlook on US, Bermuda Reinsurance Markets


B O L I V I A

* BOLIVIA: Accuses Brazil of Using Venezuela to Get Cheaper Gas


B R A Z I L

BRASIL TELECOM: Finds Solution to Collect Unclaimed Revenues
PETROLEO BRASILEIRO: Discloses 2005 Fourth Quarter Results
PETROLEO: Using Venezuela to Get Cheaper Gas, Bolivia Says
COSAN: Issuing Additional US$150 Million in Perpetual Bonds
COSAN: Moody's Assigns Ba2 to US$150 Mil. Additional Note Issue

CVRD: Protesters Heed Court's Order to Halt Strike
ELETROPAULO METROPOLINA: Posts US$87 Million Net Loss in 2005
UNIBANCO: Expects Lending Rate to Grow at Least 20% This Year
VARIG: Extends Leasing Contract with AWAS-Ansett Airline


C A Y M A N   I S L A N D S

BLENTARP INVESTMENTS: Liquidators to Cease Claims Verification
BNC INT'L: Claims Must be Presented to Liquidators by March 15
BROWNSTONE GLOBAL: Creditors Must Prove Claims by February 28
CITIGROUP ALTERNATIVE: Creditors Have 30 Days to Submit Claims
CITIGROUP (MASTER): Creditors Must Submit Claims within 30 Days

EAST GROUP: Liquidator to Stop Verifying Claims on February 28


C O S T A   R I C A

COSTA RICA: New Reserve Rules May Force Banks to Raise Reserves


G U A T E M A L A

GRUPO BANISTMO: Plans to Enter Nation's Banking Industry by 2007


G U Y A N A


DIGICEL: Entering Country's Mobile Telephone Industry


M E X I C O

GRUPO MEXICO: Mine Accident Leaves 65 Miners Trapped, 12 Injured


P U E R T O   R I C O

AOL LATIN: Files Monthly Operating Report for December 2005
MUSICLAND HOLDING: Gets Okay to Pay Warehousing, Shipping Claims
MUSICLAND HOLDING: Panel Balks at Cos.' Request to Return Goods


V E N E Z U E L A

PDVSA: Gets US$400 Million in Dividends from Cerro Negro
* Venezuela's Central Bank May Face Technical Bankruptcy
* Venezuela Inks US$200 Million Joint Fund Accord with Iran

     -  -  -  -  -  -  -  -

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A R G E N T I N A
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CLIMA HEIL: Trustee Sets April 17 Deadline to Verify Claims
-----------------------------------------------------------
Ms. Elida Alicia Victorero, the trustee appointed by Buenos
Aires' Court No. 5 for the bankruptcy case of Clima Heil S.R.L.,
will stop verifying claims on April 17, 2006, reports La Nacion.

Clima Heil started liquidation after the court declared its
bankruptcy in favor of Ms. Lorena Veronica Salina, whom the
company has debts amounting to $6,000.

Clima Heil S.R.L. can be reached at:

         Ituzaingo 915
         Buenos Aires

Ms. Elida Alicia Victorero, the trustee, can be reached at:

         Migueletes 1806
         Buenos Aires


LION D: End of Claims Validation Set on April 4
-----------------------------------------------
The end of the validation of creditors' claims against Lion D Or
S.A.C.I. y F. will be on April 4, 2006, Argentine daily La
Nacion reports.  Validated claims will be presented in court as
individual reports on May 8, 2006.

A general report is expected in court on June 12, 2006.

Lion D Or S.A.C.I. y F. was declared bankrupt by a Buenos Aires
court.

Mr. Ernesto Carlos Borzone, the trustee, can be reached at:

         Cuenca 1464
         Buenos Aires


RED SISTEMAS: End of Claims Verification Phase on March 20
----------------------------------------------------------
The verification phase for creditors' claims against Buenos
Aires-based bankrupt company Red Sistemas S.A. will end on March
20, 2006.  Creditors who fail to submit their claims to the
trustee will be disqualified from receiving any distribution or
payment that the company will make.

Infobae relates that Red Sistemas S.A. was declared bankrupt by
a Buenos Aires court, which appointed Mr. Pedro Mazzola as
trustee.

Mr. Pedro Mazzola, the trustee, can be reached at:

         Cramer 1859
         Buenos Aires


SANATORIO PROFESOR: Deadline for Claims Verification on April 17
----------------------------------------------------------------
The validation of claims against Sanatorio Profesor Itoiz S.A.,
which is under reorganization, will end on April 17, 2006.

La Nacion relates that Sanatorio Profesor Itoiz entered
reorganization after the court approved its petition.

Buenos Aires' Court No. 5 handles the case with the assistance
of Clerk No. 10.

An informative assembly is scheduled on Dec. 19, 2006.

Sanatorio Profesor Itoiz S.A. can be reached at:

         Cramer 1764
         Buenos Aires

Estudio Kullahian, Diaz y Asociados, the trustee, can be reached
at:

         Uruguay 750
         Buenos Aires


TELEFONICA DE ARGENTINA: Invests US$16.3M in Fiber Optic Network
----------------------------------------------------------------
Telefonica de Argentina SA has invested approximately 50 million
pesos (US$16.3 million) in a new 1,500 km fiber optic connection
that links the southern provinces of Chubut, Santa Cruz and
Tierra del Fuego in Argentina, according to Infobae.

The new network, representing 7.5% of Telefonica's entire
network, will allow new telecommunications technologies and
expand transmission capabilities in the area.  It will also
allow 30,000 simultaneous communications, according to general
manager Juan Waehner.

In related news, the company has confirmed its interest in
launching triple play services in Argentina of telephony,
internet and  television, although the idea is still under study
considering the  Argentine regulations.

"It is our objective to launch this system, just as we are
doing in Spain.  We expect this technology to be within the
law," local newspaper La Nacion reports.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina S.A. -- http://www.telefonica.com.ar/-- provides
telecommunication services which include telephony business both
in Spain and Latin America, mobile communications businesses,
directories and guides businesses, Internet, data and corporate
services, audiovisual production and broadcasting, broadband and
Business-to-Business e-commerce activities.

                        *    *    *

Telefonica's $148,200,000 and $134,644,000 notes due Aug. 1,
2011, carry Standard & Poor's B- rating and Fitch's B rating.


UNIDAD ASISTENCIAL: Verification of Claims Begins, Ends Apr. 10
---------------------------------------------------------------
The verification of creditors' claims against Buenos Aires-based
bankrupt company Unidad Asistencial del Oeste S.A. has begun,
reports Argentine daily La Nacion.  It will end on April 10,
2006.

Unidad Asistencial del Oeste was declared bankrupt by the city's
Court No. 8, with the assistance of Clerk No. 15, in favor of
Imat-Comi S.R.L., the company's creditor.  Imat-Comi claimed
debts of $8,840.74.

Unidad Asistencial del Oeste S.A. can be reached at:

         Ramon Falcon 2558
         Buenos Aires

Mr. Jorge Mencia, the trustee, can be reached at:

         Rodriguez Pena 350
         Buenos Aires


WANG S.R.L.: Claims Against Company Undergo Validation
------------------------------------------------------
Claims against Wang S.R.L. will be validated until April 3,
2006.  Creditors are therefore required to submit their claims
by the said date or be disqualified from receiving any payment
that the company will make.

Wang S.R.L. entered bankruptcy after Buenos Aires' Court No. 10,
with the assistance of Clerk No. 19, made a ruling in favor of
Ms. Sandra Lawrence, whom the company owes $19,350.76.

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

         Salguero 3172
         Buenos Aires

Mr. Isaac Jospe, the trustee, can be reached at:

         Uriburu 1054
         Buenos Aires


YACIMIENTOS CARBONIFEROS: Inks US$285 Mil. Financing from Gov't
---------------------------------------------------------------
The Argentine government intends to invest about ARS875 million
(US$285 million) in state coal miner Yacimientos Carboniferos
Rio Turbio S.A., Business News Americas reports.

An official with the Santa Cruz mining department told Business
News that an agreement has been reached between the government
and the company regarding the matter.

According to local press, the government would invest the money
in equipment, infrastructure as well as safety and rescue gear
from 2006 to 2008.  The investment will also go to mining
operations, ceiling reparations plus repairs to the thermal
plant house and the rail complex.

                        *    *    *

As reported by Troubled Company Reporter on March 21, 2005, the
settlement plan proposed by Yacimientos Carboniferos Rio Turbio
S.A. for its creditors acquired the number of votes necessary
for confirmation.  As such, the plan has been endorsed by the
court and will now be implemented by the company.


* BUENOS AIRES: IFC Hosts Consultation on Pulp Mills' Draft CIS
---------------------------------------------------------------
Officials of the World Bank Group held a public meeting Thursday
in Buenos Aires, Argentina, to discuss the International Finance
Corporation's draft Cumulative Impact Study for the two proposed
pulp mills near Fray Bentos, Uruguay, as part of its ongoing
consultation process.

The meeting offered an additional opportunity for stakeholders
to provide their views and comments on the draft CIS which was
released by IFC on Dec. 19, 2005, opening a 60-day consultation
process.

"We want to have a full review of the facts and an open dialogue
about the combined impact of the two pulp mills," said Yolande
Duhem, IFC's Manager for the Southern Cone.  "We are here today
[Thursday] to listen to stakeholders' concerns about the impact
of the mills in Argentina, and to ensure that our ongoing
consultation process is thorough and comprehensive."

IFC is evaluating whether to provide financing to proposed Orion
and CMB plants.  In addition, the Multilateral Investment
Guarantee Agency, also of an arm of the World Bank Group, is
evaluating whether to provide political risk insurance to
investors in the Orion plant.

Neither IFC nor MIGA will make a decision on whether to proceed
with funding until the consultation period of the draft
Cumulative Impact Study is completed.

The Cumulative Impact Study

The draft CIS addresses more than 30 issues, ranging from social
and economic (such as the effects on traffic, labor supply, and
tourism in the region), to issues such as air quality, water
quality, and biodiversity.

The Consultation Process

The draft CIS was made available for public review on December
19, 2005, allowing a minimum of 60 days for comments prior to
any decisions by the World Bank Group.  Starting in mid-January,
the World Bank Group convened a series of review meetings to
enable stakeholders to provide their comments and concerns on
the draft CIS.

To provide additional third-party verification and review, all
comments received during the consultation process on the draft
CIS will be submitted to an independent expert to assess the
validity of challenges to the analysis provided in the draft
CIS, and then provide the World Bank Group with his opinions and
advice, which will also be made available to the public.  The
expert's report is expected to be ready by February 24, 2006.

Once the expert has submitted his report, IFC and MIGA will
review and respond, indicating any specific actions that have
been agreed to by the companies or other stakeholders.
Subsequently, IFC and MIGA will also decide, based on the full
body of environmental and social work undertaken and input from
stakeholders received, whether or not their respective
managements will seek Board approval to provide financing and/or
guarantees to the mills.


=============
B E R M U D A
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ENDURANCE SPECIALTY: S&P Assigns BB+ Rating on Preferred Stock
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, 'BB+' junior
subordinated, and 'BB+' preferred stock ratings to Endurance
Specialty Holdings Ltd.'s (NYSE:ENH; BBB/Positive/--) recently
filed universal shelf.  The new shelf has an undesignated
notional amount in accordance with the new SEC rules effective
Dec. 1, 2005.

"The ratings reflect the company's strong competitive position,
which is supported by a diversified business platform,"
explained Standard & Poor's credit analyst Damien Magarelli.  In
addition, ENH maintains strong capital adequacy and strong
operating performance.  "Offsetting these positive factors are
concerns about exposure to catastrophes and ENH being a
relatively new operation and management not having been tested
through difficult market cycles while at the company," added Mr.
Magarelli. Also, ENH has expanded its product offering via new
transactions and it remains unclear if these new transactions
will yield strong earnings.

ENH has strong financial flexibility and debt leverage, and
interest coverage levels are well above that required for the
rating.  Also, ENH's diversified platform and strong earnings
support nonstandard notching.  ENH is expected to maintain debt
leverage of less than 20% and interest coverage of more than 10x
in support of nonstandard notching.  ENH had a debt-to-capital
ratio of 17.7% in 2004 and interest coverage significantly more
than the level required for the rating at 35x.

The outlook is based on Standard & Poor's expectation that ENH
will maintain strong earnings in 2006. Standard & Poor's also
expects that the group's capital adequacy ratio will remain
strong at more than 155%.  In addition, the company is expected
to exhibit the risk-management skills and underwriting
discipline to control the volume and profitability of
business.  ENH is expected to maintain debt leverage at less
than 20% and interest coverage of more than 10x in support of
nonstandard notching.

If ENH maintains strong earnings in 2006, the rating could be
raised.  In contrast, if hurricane loss estimates are revised
significantly upward, if capital expectations are not met, or if
strong earnings are not maintained, the outlook could be revised
to stable.


ORN GLOBAL: Creditors Given until March 15 to Submit Claims
-----------------------------------------------------------
ORN Global Credit Fund Ltd.'s creditors have until March 15,
2006, to send their full names, addresses and descriptions, the
full particulars of their debts or claims, and the names and
addresses of their attorneys (if any) to Mr. Nicholas J. Hoskins
-- the liquidator of the company.  Mr. Hoskins may request
creditors to prove their claims personally or through their
attorneys at the time and place the liquidator will specify.
Failure to do so would mean exclusion from receiving any
distribution that the company would make.

A final general meeting on March 20, 2006, at 11:00 a.m. will be
held at the offices of:

           Wakefield Quin
           Chancery Hall, 52 Reid Street
           Hamilton, Bermuda
During the meeting, the liquidator will:

   -- present an account on the company's liquidation,
      showing the manner in which the winding-up has been
      conducted and how the property of the company has been
      disposed of and of hearing any explanation that may be
      given by the liquidator;

   -- determe by resolution the manner in which the books,
      accounts and documents of the company and of the
      liquidator will be disposed; and

   -- dissolve the company by resolution1.

ORN Global Credit Fund Ltd. entered voluntary wind up on Feb.
16, 2006, and appointed Mr. Nicholas Hoskins as liquidator.

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

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


PXRE REINSURANCE: A.M. Best Lowers Fin'l Stength Ratings to B++
---------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to
B++ from A- and the issuer credit ratings to "bbb" from "a-" for
the reinsurance subsidiaries of the PXRE Group Ltd. [NYSE: PXT].
The rating actions apply to PXRE Reinsurance Ltd. (Bermuda) and
PXRE Reinsurance Company (Hartford, CT).  A.M. Best has also
downgraded the ICR to "bb" from "bbb-" and all existing and
indicative debt ratings of PXRE.  All ratings have a negative
outlook.

The downgrades follow PXRE's announcement that it increased its
net loss estimates for hurricanes Katrina, Rita and Wilma by a
pre-tax amount between $281 - $311 million.  As a result of the
magnitude and composition of this most recent loss revision and
with consideration of the company's longer-term track record,
A.M. Best now has greater concern regarding PXRE's risk
management capability.  The most recent range of loss increase
accounts for over 60% of reported actual shareholder's equity on
September 30, 2005, which resulted in a deterioration of PXRE's
risk-adjusted capital position.

As a result of the 2005 storm losses, PXRE has taken actions to
significantly reduce its maximum net exposure for first event,
full limits in its largest zone to a more manageable level.
Nonetheless, the ratings have been assigned a negative outlook
until these new strategies and risk mitigation procedures have
been fully tested.  Going forward, A.M. Best will closely
monitor the effectiveness of the new strategies and procedures
with each catastrophic event.

This debt rating has been downgraded:

   PXRE Capital Trust I

    -- to "b+" from "bb" on $100 million 8.85% trust preferred
       securities, due 2027.

These indicative debt ratings for securities available under
shelf registration have been downgraded:

   PXRE Group Ltd.

    -- to "bb" from "bbb-" on senior unsecured;
    -- to "bb-" from "bb+" on subordinated; and
    -- to "b+" from "bb" on preferred stock;

   PXRE Capital Trust IV

    -- to "b+" from "bb" on trust preferred securities.


PXRE REINSURANCE: Fitch Downgrades IFS Ratings to BB+
-----------------------------------------------------
Fitch Ratings has downgraded and placed on Rating Watch Negative
its insurer financial strength rating on PXRE Group Ltd.'s lead
operating subsidiaries, PXRE Reinsurance Ltd. and PXRE
Reinsurance Company, to 'BB+' from 'BBB+'.  Additionally, Fitch
has downgraded its long-term rating on PXRE to 'BB-' from 'BB+',
as well as its rating on PXRE Capital Trust I's preferred
securities to 'B+' from 'BB'.

Fitch's rating actions follow PXRE's recent announcement of
updated estimates for hurricane losses and its decision to
'explore strategic alternatives.'  Today's rating actions
reflect Fitch's current view of the catastrophe risk inherent in
PXRE's monoline retrocessional book of business, and resultant
significant capital and earnings volatility, the company's
questionable risk management capabilities and recent management
changes, and its lack of financial flexibility going forward.

On Feb. 16, 2006, PXRE announced that it increased its net loss
estimates for hurricanes Katrina, Rita, and Wilma by a pretax
amount ranging from $281 million-$311 million, relative to
previously announced amounts between $462 million-$477 million.
Due to the material nature of the revised estimates, and the
overall impact of the hurricanes relative to PXRE's existing
capital, Fitch believes that the company's risk management and
underwriting capabilities are questionable.  Fitch views PXRE's
ability to sufficiently manage the high volatility associated
with its large retrocessional book of business (roughly 40% of
net premium) as inadequate and inconsistent with a secure
financial strength rating.

The company's year-to-date hurricane related losses equate to
roughly 100% of PXRE's beginning of the year shareholders'
equity.  Although the company has been able to raise capital to
replenish a portion of the losses, this large percentage of
capital-at-risk is significantly higher than Fitch's
expectations for the rating category, even for a company with
PXRE's business profile which includes an expectation of
periodic high severity losses.

The Negative Rating Watch reflects PXRE's announcement that it
is now 'exploring strategic alternatives.'  Fitch believes this
development often translates to a distressed situation. The
Negative Watch also reflects the potential for shareholder
lawsuits, ratings triggers in various collateral agreements, and
further adverse loss development on the revised hurricane loss
estimates.  Fitch will continue to monitor these events as they
progress.

These ratings have been downgraded and placed on Rating Watch
Negative:

   PXRE Group Ltd.

   -- Long-term rating to 'BB-' from 'BB+'.

   PXRE Capital Trust I

   -- Trust preferred securities $100 million 8.85% due Feb.1,
      2027 to 'B+' from 'BB'.

   PXRE Reinsurance Company
   PXRE Reinsurance Ltd.

   -- Insurer financial strength to 'BB+' from 'BBB+'.


* AM Best Holds Neg. Outlook on US, Bermuda Reinsurance Markets
---------------------------------------------------------------
A.M. Best Co. has completed its assessment of the U.S. and
Bermuda reinsurance markets and is extending its negative
outlook for 2006.  A.M. Best anticipates that there will be few
if any rating upgrades or positive rating outlooks assigned in
2006. Although there were a number of rating downgrades in 2005
and, currently, only a few reinsurers in these sectors hold
ratings with negative outlooks, A.M. Best believes that the
underlying stability of these markets remains tenuous.

A.M. Best believes that the U.S. and Bermuda reinsurance sectors
remain susceptible to pricing competition as investor
expectations for double-digit returns run high.  Should the
currently perceived market opportunities in property not be
significantly realized, the companies that received much of the
new capital that recently flowed into these markets might be
forced to find alternative strategies.  The markets have already
demonstrated that while property rate increases attained for
January 2006 renewals were favorable, they were nonetheless
narrowly focused and limited to those covers affected by recent
losses. Casualty business has seen little if any benefit from
the hurricane losses in 2005.  Should companies seek to
diversify the new capital into casualty, it could trigger
additional softening for the casualty segment as well.

Additionally, A.M. Best believes that another active storm
season in 2006 or further reserve development from the 2005
storms, as some are predicting, would be material and may help
to prolong the hard property market, but at an additional cost
to earnings and capital. The financial flexibility of some
companies is already stretched with debt to capital for the
industry at an all time high.  While common equity has
previously flowed into the market with relatively little
resistance, A.M. Best questions if another year of losses will
dampen investors' appetites for a stake in insurance and
reinsurance holdings.

As a result of the hurricane losses in 2005, A.M. Best has and
will continue to take a more rigorous approach in its due
diligence as regards the evaluation of companies' capitalization
and risk management controls.  Catastrophe models will continue
to be valuable tools for the quantification of risk, but not the
only barometer.  Management will need to demonstrate confidence
in the data and parameters employed throughout the modeling
exercise.  Further, management needs to better demonstrate that
underwriting and risk controls are adequate to ensure that there
is a clear understanding and controlled correlation with un-
modeled exposures.  To that end, A.M. Best will be requiring
more detailed information through its supplementary rating
questionnaire and in company meetings.


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* BOLIVIA: Accuses Brazil of Using Venezuela to Get Cheaper Gas
---------------------------------------------------------------
Jorge Alvarado, Yacimientos Petroleros Fiscales de Bolivia's
president, said that the possibility of Brazil buying cheaper
gas elsewhere is unreal, newspaper Pravda reports.

Venezuela selling gas to Brazil at one-third of the Bolivian
price is not possible, Mr. Alvarado has said.  The tactic is
meant to pressure YPFB as it negotiates new deals with
neighboring countries, Pravda reports.

Ildo Sauer, director of gas and energy for Petróleo Brasileiro
SA, or Petrobras, said recently his country could save US$30
million per day by buying gas from Venezuela rather than
Bolivia, Pravda states.

"I don't find this information very credible and it seeks to
pressure Bolivia while it's trying to negotiate new prices with
Brazil and Argentina," Mr. Alvarado said.  He puts the blame on
Argentine and Brazilian press, saying they were looking to
"damage the negotiations between the governments of Brazil and
Bolivia."

President Evo Morales, who took power last month, has vowed to
increase state control of the country's vast natural gas
reserves as well as get better prices for the gas it sells to
Brazil and Argentina.

Brazil relies on Bolivia for most of its gas supply and
Petrobras has begun talks with the Bolivian government on
renegotiating production and sales contracts.

Venezuelan President Hugo Chavez recently proposed sending
Venezuelan gas to Brazil and Argentina through a 10,000-
kilometer (6,200-mile) pipeline.

Bolivia has the second largest national natural gas reserves in
South America, second only to Venezuela.

                        *    *    *

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


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B R A Z I L
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BRASIL TELECOM: Finds Solution to Collect Unclaimed Revenues
------------------------------------------------------------
Brasil Telecom Participacoes SA has implemented a solution to
help identify and collect unclaimed revenues generated across
networks, Business News Americas reports.

U.S. companies IBM and Narus Inc. made the solution possible for
Brasil Telecom.  Based on IBM BladeCenter and NarusAnalyze
software, the company can now manage revenue streams across
services running on their IP networks such VoIP, IPTV and other
new IP multimedia subsystem architectures.

Narus provides a carrier-class IP platform.  It extends the
platform with IP applications for IP security, IP Analysis, IP
monitoring, and IP mediation.

IBM invents, develops and manufactures advanced information
technologies, including computer systems, software, storage
systems and microelectronics.

"As telecommunications service providers move into the future, a
greater percentage of our business models will rely on our
ability to profitably deliver high-quality IP services such as
VoIP and IPTV," said Ricardo Fernandez, director of business
operations at Brasil Telecom.  "This new revenue sharing
reference platform will allow BrT and the rest of the industry
to address the issue of the hundreds of millions of dollars lost
due to revenue leakage."

                        *    *    *

Brasil Telecom SA is controlled by Brasil Telecom Participacoes
SA which is the publicly-listed holding company for 10 fixed-
line operating companies located in the western, central, and
southern regions of Brazil and in the Federal District region.

Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.


PETROLEO BRASILEIRO: Discloses 2005 Fourth Quarter Results
----------------------------------------------------------
Bloomberg reports Petroleo Brasileiro SA's 2005 fourth quarter
financial results.

Petrobras' fourth-quarter profit jumped 92% as higher fuel
prices increased revenue.

Consolidated net income rose in the quarter to 8.14 billion
reais ($3.85 billion) or 1.86 reais a share, compared with 4.24
billion, or 97 centavos a share, a year earlier, the company
said in a statement to the country's securities regulator.

"They were able to increase their refining margins with the
fuel-price increases in September," said Lucrecia Tam, oil
industry analyst at Deutsche IXE LLC in a phone interview with
Bloomberg.  "That's the main reason for the huge profit
increase."

The company, which doubled revenue since 2001, is counting on
rising sales to finance most of a $56 billion, five-year plan to
almost double output worldwide by 2010 to 3.4 million barrels a
day, about the same as Mexico produces today.  The company,
which is discovering more than 13 barrels of new oil for each
barrel it extracts, aims to become a net exporter of oil by the
end of this year, Bloomberg states.

Petrobras increased production 9.7% in 2005 from the previous
year to 2.22 million barrels a day.

Net sales rose 31% to 38.64 billion reais in the quarter from
29.40 billion a year earlier.  Sales were bolstered by a 10%
gain in the price of wholesale gasoline and 12% increase in the
price of wholesale diesel fuel on Sept. 12.

Higher prices allowed profit to rise even as fuel sales by
volume in Brazil fell 1.7% in the fourth quarter from a year
ago.

Petrobras cut oil imports 20% in the quarter, allowing it to
reduce losses on import-export operations, Bloomberg states.

The company's selling of heavy crude oil abroad resulted to a
loss.

In the quarter, Petrobras processed a record 1.37 million
barrels a day of nationally produced crude oil in its
refineries, 6.5% more than in 2004, Bloomberg relates.
Petrobras plans to invest $8 billion building new refineries or
upgrading existing ones to expand its ability to handle heavy
oil.

Petrobras profit also got a boost from the 14% gain in the real
against the dollar in 2005, the best performance of the 61
currencies tracked against the dollar by Bloomberg.  The real's
gain helped the reduce the company's debt 30% to 24.83 billion
reais at the end of the fourth quarter from 35.82 billion a year
ago, by reducing the value of the company's dollar-denominated
debt in reais.

                        *    *    *

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


PETROLEO: Using Venezuela to Get Cheaper Gas, Bolivia Says
----------------------------------------------------------
Jorge Alvarado, Yacimientos Petroleros Fiscales de Bolivia's
president, said that the possibility of Brazil buying cheaper
gas elsewhere is unreal, newspaper Pravda reports.

Venezuela selling gas to Brazil at one-third of the Bolivian
price is not possible, Mr. Alvarado has said.  The tactic is
meant to pressure YPFB as it negotiates new deals with
neighboring countries, Pravda reports.

Ildo Sauer, director of gas and energy for Petróleo Brasileiro
SA, or Petrobras, said recently his country could save US$30
million per day by buying gas from Venezuela rather than
Bolivia, Pravda states.

"I don't find this information very credible and it seeks to
pressure Bolivia while it's trying to negotiate new prices with
Brazil and Argentina," Mr. Alvarado said.  He puts the blame on
Argentine and Brazilian press, saying they were looking to
"damage the negotiations between the governments of Brazil and
Bolivia."

President Evo Morales, who took power last month, has vowed to
increase state control of the country's vast natural gas
reserves as well as get better prices for the gas it sells to
Brazil and Argentina.

Brazil relies on Bolivia for most of its gas supply and
Petrobras has begun talks with the Bolivian government on
renegotiating production and sales contracts.

Venezuelan President Hugo Chavez recently proposed sending
Venezuelan gas to Brazil and Argentina through a 10,000-
kilometer (6,200-mile) pipeline.

Bolivia has the second largest national natural gas reserves in
South America, second only to Venezuela.

                        *    *    *

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

                        *    *    *

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.


COSAN: Issuing Additional US$150 Million in Perpetual Bonds
-----------------------------------------------------------
Cosan SA Industria e Comercio, one of the largest sugar and
ethanol producers worldwide, will issue additional US$150
million in perpetual bonds.  The new offer respects the same
conditions as announced on Jan. 24, 2006, when the company
issued US$300 million in perpetual bonds.  With this new
operation, COSAN elevates the offer to a total of US$450 million
in perpetual bonds.

Net funds deriving from this operation will be used to refinance
Acucareira Corona S.A. debt, whose purchase was announced by
COSAN on Feb. 8, 2006.

As previously informed by COSAN at the end of January during the
first bond offer, the quarterly paid bond with no expiration
date will be guaranteed by the controlled Usina da Barra S.A.
Acucar e Alcool and FBA Franco Brasileira S.A. Acucar e Alcool.
The bond will pay a coupon of 8.25% p.a. and may be repurchased
by the company as of Feb. 15, 2011, at any interest payment date
COSAN believes that the operation will help the group
consolidate its outstanding position in financial and capital
markets in order to seize sugar and ethanol market opportunities
both in Brazil and abroad.

Rubens Ometto Silveira Mello, the board of director's chairman
and the company's CEO said, "The well-succeeded issuing of
perpetual bonds evidences the international community trust in
COSAN's consolidating strategy on a highly divided segment and
also in the company's continuing search for higher productive
levels."

Credit Suisse and Morgan Stanley were the joint lead managers
for the sale of the 8.25% US$300 bond.

Headquartered in Sao Paulo, Brazil, Cosan S.A. Indústria e
Comercio, is the third largest sugar producer in the world.  In
2004/2005 it crushed more than 26 million tons of sugar cane in
fourteen mills located in the Central South region of Brazil,
with sugar sales of 2.3 million tons and ethanol sales of 825
million liters.



COSAN: Moody's Assigns Ba2 to US$150 Mil. Additional Note Issue
---------------------------------------------------------------
Moody's Investors Service assigned a Ba2 foreign currency rating
to Cosan S.A. Indústria e Comercio's proposed issuance of an
additional US$100 million to US$150 million of senior unsecured
perpetual notes to the US$300 million senior unsecured notes
recently issued.  The new notes will be subject to the exact
same terms and conditions as the US$300 million perpetual notes
including the guarantees from Usina da Barra S.A. and
Franco Brasileira S.A. Acúcar e Alcool.

Concurrently, Moody's affirmed Cosan's Ba2 global local currency
scale corporate family rating and A1.br Brazilian national scale
rating.  The rating outlook is stable.

The proceeds from the additional issuance (US$100 to US$150
million) will be used primarily to refinance a portion of the
debt assumed as a result of Cosan's acquisition of Acucareira
Corona S.A., a sugar company with a crushing capacity of 6
million tons, for a total consideration of approximately BRL 640
million, including approximately BRL 241 million of assumed debt
(excluding self-liquidating PESA debt).

The acquisition of Corona, however, is being funded primarily
from Cosan's BRL 844 million in proceeds raised from its
successful IPO in November 2005.  Moody's regards this
acquisition as strategic given the company's stated plans to
increase capacity and Corona's attractive geographic location in
one of the world's most productive regions for sugar cane
cultivation.  At the same time, Moody's notes the significantly
higher purchase price paid for this acquisition compared to
previous acquisitions.

Cosan's Ba2 rating continues to reflect its solid position as
the largest sugar and ethanol producer in Brazil and the third-
largest sugar producer in the world, the favorable industry
fundamentals for both sugar and ethanol producers in Brazil,
Cosan's position as the lowest cost producer, and its improved
credit profile and corporate governance following the recent IPO
and issuance of the perpetual notes.  However, Cosan's ratings
are constrained due to its exposure to volatile sugar and
ethanol prices, exchange rate variation, the company's lack of
product diversification, and the risks arising from its
acquisitive strategy in the fragmented Brazilian sugar market.
Additionally, the rating also reflects Cosan's history of high
seasonal working capital variations and very significant
investments leading to negative free cash flow generation in
some years, as well as the risks arising from its risk
management exposure policies and practices, which may impact
EBITDA, cash flow and interest expense.

Cosan's Ba2 global local currency corporate family rating could
be raised if the company is able to increase its scale and
product diversification, reducing the level of correlation
between sugar and ethanol.  An improvement in the ratings or
outlook could also result from a significant increase in the
percentage of total world sugar production that trades in the
unregulated markets.  Quantitatively, positive rating momentum
could result if the company was to generate free cash flow to
debt in the range of 9-12% (currently slightly negative) and
EBIT/ Interest in the 4-5x range on a sustainable basis.
At the same time, Cosan's current ratings could come under
negative pressure if the company sees a reduction in its
percentage of sales derived from exports (currently 60%); if the
central south region of Brazil, Cosan's only area of production,
suddenly experiences a material adverse event such as a natural
catastrophe or a prolonged drought; or if Cosan's acquisitive
strategy leads to a large debt-financed acquisition that leads
to a deterioration of current credit metrics.  Quantitatively,
Cosan's ratings could come under negative pressure if free cash
flow remains negative at the end of its FY 2007 and/or if
Debt/EBITDA increases to above 4x (excluding PESA debt).

Ratings assigned:

   -- US$100 to US$150 million of guaranteed senior unsecured
      perpetual notes: Ba2.

Ratings affirmed:

   -- Global local currency scale corporate family rating: Ba2;
   -- Brazilian national scale corporate family rating: A1.br;
   -- Foreign currency senior unsecured rating: Ba2;

Headquartered in Sao Paulo, Brazil, Cosan S.A. Indústria e
Comercio, is the third largest sugar producer in the world.  In
2004/2005 it crushed more than 26 million tons of sugar cane in
fourteen mills located in the Central South region of Brazil,
with sugar sales of 2.3 million tons and ethanol sales of 825
million liters.


CVRD: Protesters Heed Court's Order to Halt Strike
--------------------------------------------------
Protests at Companhia Vale do Rio Doce's Estrada de Ferro
Carajas (EFC) railroad have stopped after a federal court judge
in Maranjo, Brazil, mandated the immediate end to the
disruptions, Business news Americas reports.

EFC is being operated by iron and ore miner CVRD.  It carries
about 1,000 passengers a day and transports iron ore, manganese,
pig iron and soy.

The passenger train has again started operating on Feb. 16,
2006, CVRD revealed to Business News.

Protesters led by the Guajajara tribe blocked the EFC lines last
week, airing demands for better service from Funasa, the
Brazilian government health foundation, relates Business News.

CVRD told Business News that operations at EFC had stopped due
to the incident.  The railroad also suffered damages during the
demonstrations.  Portions of the railway were set on fire and 13
meters of track have been removed.

"CVRD will be able to proceed with a detailed report of the
damage, making necessary repairs to restart traffic," CVRD said.

In an earlier demonstration on Feb. 7, 2006, about 200 members
of the tribes blocked EFC and kidnapped four CVRD employees.
The road was cleared and the captives were released on Feb. 9,
2006.

CVRD had reiterated that it had nothing to do with the health
services, nor does the train run through tribal land.

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'.


ELETROPAULO METROPOLINA: Posts US$87 Million Net Loss in 2005
-------------------------------------------------------------
Eletropaulo Metropolitana Eletricidade de Sao Paulo reported 184
million reais net loss (US$86.9 million) in 2005, compared to a
5.6 million reais profit in 2004, Business News Americas
reports.  The company cited higher operating costs and non-
operating losses as the primary factors for the overall loss.

The company's gross revenues rose to 11.2 billion reais in 2005,
up from 10.0 billion reais in 2004 due to higher consumption by
commercial and residential clients, more non-regulated clients
and a 2.12% power rate adjustment granted by power regulator
Aneel, Business News state.

Operating expenses rose to 1.86 billion reais, up from 1.03
billion reais in 2004, partly due to provisioning for unpaid
bills and debt from the city of Sao Paulo, Business News states.

As a result of higher costs, the company posted operating
profits of 465 million reais, down from 568 million reais in
2004.  Ebitda fell to 1.12 billion reais in 2005, down 15.5%
from a year earlier, Business News states.

Power sales in the regulated market declined to 31,634MWh in
2005, down 3.2% from 32,668GWh in 2004.

A 12% drop in consumption by industrial clients led the decline
as 38 large power consumers opted to buy cheaper power offered
in the non-regulated market, Business News states.  Industrial
clients account for about 24% of Eletropaulo's market.

The decline was offset by an increase in power usage at lower
voltages by smaller clients and the wire usage fee, which is
also charged on power sold to consumers in the non-regulated
market.

Residential consumption rose 5.4%, commercial power consumption
was up 1.7% and the power flows over which TUSD was charged
increased 81.9%.  Power consumption, including TUSD, increased
3.3%.

The company also increased revenues by signing up 71 new clients
in the non-regulated market, bringing the total number of
clients there to 144.

Eletropaulo posted a non-operating loss of 35 million reais in
2005 compared to a 14mn-real loss in 2004.

Eletropaulo is controlled by U.S. power company AES Corp.
through a 51% stake in the Brasiliana holding company in which
Brazil's national development bank BNDES has 49% stake.

Eletropaulo distributes power in Brazil's industrial hub of Sao
Paulo city and 23 surrounding towns. Power consumption in Sao
Paulo state grew 3.8% in 2005 from 2004, according to data from
Sao Paulo state government.

                        *    *    *

As reported by Troubled Company Reporter on Dec. 15, 2005,
Standard & Poor's Ratings Services raised to 'B+' from 'B'
the local and foreign currency corporate credit ratings assigned
to Brazilian electric utility Eletropaulo Metropolitana
Eletricidade de Sao Paulo S.A. and its US$200 million senior
unsecured and unsubordinated euro bonds.  The corporate credit
rating assigned in the Brazil national scale was also raised to
'brBBB' from 'brBB+'.  S&P said the outlook is stable.


UNIBANCO: Expects Lending Rate to Grow at Least 20% This Year
-------------------------------------------------------------
Uniao de Bancos Brasileiros S.A. aka Unibanco said in a
conference call that it expects its combined loan portfolio to
increase by 20% to 25% in 2006.

The loan portfolio rose 25.4% last year to 39.9 billion reais
(US$18.9 billion).  Loans to individuals tallied 15.2 billion
reais for the year, 31.1% above year-end totals from 2004 and
7.9% above the end of third quarter of 2005.  And corporate
loans totaled 24.7 billion reais at the end of last year, 22.1%
over the close of 2004 and 8.3% above the end of third quarter
of 2005, Business News Americas quoted bank officials.

Lending to individuals is set to drive growth in 2006, with
increases of 25%-30%, Unibanco vice president Geraldo Travaglia
was quoted as saying by Business Wire.  Corporate loans are
likely to expand 15%.

Unibanco's credit card business expanded 43.2% in 2005, with a
20.3% increase in the last quarter of last year alone, due in
part to the bank's acquisition in March 2004 of credit card
issuer Hipercard from supermarket chain Bompreco.

With a backdrop of positive economic indicators, Unibanco will
continue to wager on its credit card business, Mr. Travaglia
said.

The bank expects Brazil's GDP to grow 3.5% this year, with an
inflation rate of 4.5%. Brazil's benchmark interest rate, the
Selic, is poised to slip to 14.75% from today's 17.25%, and the
exchange rate should stand around 2.25 reais to the dollar.

"The country has never seen such stability as there is now," Mr.
Travaglia said, comparing this year to the last time Brazil
geared up for presidential elections.  "The turbulence
experienced in 2002 was natural, as the possible changes at the
time weren't known and were  surrounded by mystery.  Today the
country is more mature and serene, and we don't expect
turbulence."

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
S.A. aka Unibanco -- http://www.ir.unibanco.com-- is a
subsidiary of Unibanco Holdings S.A.  It provides financial
products and services to individual and corporate customers in
Brazil.  It operates in four segments: retail banking, wholesale
banking, insurance and pension plans, and wealth management.  As
of Sep. 13, 2005, the company operated 908 branches and 392
corporate site branches.  Unibanco's strategic partners include
Magazine Luiza, Ponto Frio, Sonae Distribuicao Brasil S.A., and
Fiat do Brasil S.A.

                          *     *     *

As reported by Troubled Company Reporter on Feb. 3, 2006,
Moody's Investors Service upgraded the bank financial strength
rating of Uniao de Bancos Brasileiros S.A. aka Unibanco to 'C-'
from 'D+', with a stable outlook.  Moody's affirmed all other
ratings and outlooks assigned to Unibanco S.A.  This action
concluded the review for possible upgrade that was initiated on
Nov. 3, 2005.


VARIG: Extends Leasing Contract with AWAS-Ansett Airline
--------------------------------------------------------
InvestNews reports that Varig aka Viacao Aerea Riograndense has
extended an agreement with Australian AWAS-Ansett company for
the leasing of nine Boeing 737 aircraft.

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.


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


BLENTARP INVESTMENTS: Liquidators to Cease Claims Verification
--------------------------------------------------------------
Messrs. Ian Wight and Stuart Sybersma -- liquidators of Blentarp
Investments Ltd. -- will stop verifying claims from creditors
after March 6, 2006.  Creditors who are unable to prove their
claims after the said date will be excluded from receiving any
distribution that the company will make.

Blentarp Investments Ltd. began voluntary wind up on Dec. 15,
2006.

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

         P.O. Box 1787 George Town
         Grand Cayman, Cayman Islands
         Attn: Joshua Taylor
         Deloitte & Touche LLP
         Telephone: (345) 949 7500
         Facsimile: (345) 949 8258


BNC INT'L: Claims Must be Presented to Liquidators by March 15
--------------------------------------------------------------
Claims against BNC International (Cayman) Limited, a company in
voluntary liquidation, must be presented on or before March 15,
2006, to David A.K. Walker and Lawrence Edwards, the joint
liquidators of the company.

Creditors must prove their debts or claims and establish any
title they may have under the Companies Law (2004 Revision), or
to be excluded from the benefit of any distribution made before
the debts are proved or from objecting to the distribution.

BNC International (Cayman) Limited began liquidating assets on
Dec. 2, 2005.

BNC International (Cayman) Limited can be reached at:

         P.O. Box 219 George Town
         Grand Cayman, Cayman Islands

Lawrence Edwards, one of the joint voluntary liquidators, can be
reached at:

         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands
         Attn: Richard Mottershed
         Telephone: (345) 914 8656
         Facsimile: (345) 949 4590


BROWNSTONE GLOBAL: Creditors Must Prove Claims by February 28
-------------------------------------------------------------
Creditors of Brownstone Global Opportunities Fund Ltd., company
in voluntary liquidation, must prove their debts or claims by
Feb. 28, 2006, and be able to establish any title they may have
under the Companies Law (2004 Revision).  Creditors who fail to
do so will not be included in receiving any distribution or
payment that the company will make.

Brownstone Global Opportunities Fund Ltd. entered voluntary
liquidation on Jan. 16, 2006.  David A.K. Walker and Lawrence
Edwards were appointed as joint voluntary liquidators.

Brownstone Global Opportunities Fund Ltd. can be reached at:

         P.O. Box 219 George Town
         Grand Cayman, Cayman Islands

Mr. Lawrence Edwards, one of the joint voluntary liquidators,
can be reached at:

         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 914 8694
         Facsimile: (345) 949 4590


CITIGROUP ALTERNATIVE: Creditors Have 30 Days to Submit Claims
--------------------------------------------------------------
Creditors of Citigroup Alternative Investments Libra Strategies
Ltd., company in voluntary liquidation, are given 30 days,
starting Jan. 26, to submit their claims against the company to
John Cullinane and Derrie Boggess, the liquidators.

Creditors must be able to send in names, their addresses, the
particulars of their debts and claims, as well as the names and
addresses of their attorneys-at-law (if any).  Failure to do so
would mean disqualification from any distribution that the
company would make.

Citigroup Alternative Investments Libra Strategies Ltd. started
winding up operations on Jan. 26, 2006.

John Cullinane and Derrie Boggess, the joint voluntary
liquidators, can be reached at:

         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 914-6305


CITIGROUP (MASTER): Creditors Must Submit Claims within 30 Days
---------------------------------------------------------------
Claims of Citigroup Alternative Investments Libra Strategies
Master Company Ltd.'s creditors must be submitted within 30
days, starting Jan. 26, to the company's liquidators, John
Cullinane and Derrie Boggess.

Creditors must send their names, their addresses, the
particulars of their debts and claims, and the names and
addresses of their attorneys-at-law (if any) to the liquidators
or be excluded from receiving any payment that the company would
make.

Citigroup Alternative Investments Libra Strategies Master
Company Ltd. started liquidating assets on Jan. 26, 2006.

John Cullinane and Derrie Boggess, the joint liquidators, can be
reached at:

         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 914-6305


EAST GROUP: Liquidator to Stop Verifying Claims on February 28
--------------------------------------------------------------
Panford Limited, liquidator of East Group Inc., which is in
voluntary liquidation, will stop verifying claims from the
company's creditors on Feb. 28, 2006.  Creditors who fail to
prove their claims to the liquidator will be excluded from the
benefit of any distribution that the company would make.

East Group Inc. entered voluntary liquidation on Dec. 31, 2005.

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

         c/o Campbells
         P.O. Box 884 George Town
         Scotia Centre, Grand Cayman
         Cayman Islands
         Attn: Raymond Long Sing Tang
         Telephone: 345 949 2648
         Fax: 345 949 8613


===================
C O S T A   R I C A
===================


COSTA RICA: New Reserve Rules May Force Banks to Raise Reserves
---------------------------------------------------------------
New rules governing bank deposits and repos could force Costa
Rica's banks to hike their reserves and capitalization levels,
Business News Americas reports.

Under the new rule, banks that take deposits in inflation-
indexed UD currency units and euros must now create reserves
equivalent to 15% of deposits as is currently the case for US
dollar and colon-denominated deposits, financial news service
Capital Financiera reports.

State-run banks Banco Nacional de Costa Rica and Banco de Costa
Rico are the only banks allowed to take UD and euro deposits,
respectively.  Banco Nacional had about 21 billion colones
(US$41.8 million) in UD-denominated deposits and commercial
paper at December 31, 2005, Business News relates.

The central bank has also ordered financial institutions to
reserve repo transactions 100%, up from 20% as part of the
migration toward Basel II capital adequacy rules, Business News
relates.

                        *    *    *

Fitch Ratings affirmed on September 1, 2005, Republic of Costa
Rica's long-term foreign and local currency ratings of 'BB' and
'BB+' respectively.  Fitch said the Rating Outlook is Negative.


=================
G U A T E M A L A
=================


GRUPO BANISTMO: Plans to Enter Nation's Banking Industry by 2007
----------------------------------------------------------------
Grupo Banistmo, a Panama-based banking group, affirmed that it
intends to enter Guatemala before the end of 2007 after closing
a major acquisition in El Salvador earlier this month, Business
News Americas reports.

Grupo Banistmo's Executive Vice President of Banking Operations
Juan Carlos Fabrega said to Business News, "We have set the goal
of consolidating our regional leadership, and entering Guatemala
before 2007 forms part of our strategic plan because it is a
large market with very good opportunities."

The group has banking operations in Panama, Honduras, Costa
Rica, El Salvador, Nicaragua and Colombia, but not in Guatemala,
the region's largest market with 12.1 million inhabitants and a
US$30.7 billion economy.

Banistmo Chief Executive Officer Alberto Vallarino revealed to
Business News in September last year that he preferred to make
large acquisitions in El Salvador and Guatemala rather than
smaller transactions or startup projects, as part of the group's
plan to have a presence in every Central American country by
2007.

Business News states that market observers believe Banistmo
could still afford another acquisition, given it was prepared to
pay up to US$146 million for 60% of El Salvador's third largest
banking group Inversiones Financieras Bancosal.  Banistmo paid
in February US$131 million for a 53.7% stake in Bancosal.

The deal was paid with a bridge loan from US-based Wachovia
Corp., which will be replaced through capital increases and
issuing debt, Mr. Fabrega revealed to Business News.

                        *    *    *

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.


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


DIGICEL: Entering Country's Mobile Telephone Industry
-----------------------------------------------------
Bharrat Jagdeo, Digicel Limited's President, confirmed reports
that it is entering Guyana's market this year, the Associated
Press reports.

Guyana will issue a license to let Digicel offer cellular
services in a few weeks, AP reports.

Digicel Limited 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.


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


GRUPO MEXICO: Mine Accident Leaves 65 Miners Trapped, 12 Injured
----------------------------------------------------------------
A gas explosion 600 feet underground at Grupo Mexico SA's coal
mine located at Coahuila state in northern Mexico trapped 65
miners and construction workers, while 12 others were injured.

According to a statement by the company, rescue brigades are
already at the Pasta de Conchos mine near the town of San Juan
de Sabinas.

Specialists are trying to reach the miners, who are located as
deep as 1.5 kilometers in the mine.  Volunteer rescue workers
haven't been given access to the mine to prevent further
accidents and to protect against the area around the mine from
caving in, officials said.

Grupo Mexico SA de CV -- http://www.grupomexico.com/-- through
its ownership of Asarco and the Southern Peru Copper Company,
Grupo Mexico is the world's thrid largest copper producer,
fourth largest silver producer and fifth largest producer of
zinc and molybdenum.

                        *    *     *

Fitch Ratings assigned these ratings to Grupo Mexico SA de CV:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


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


AOL LATIN: Files Monthly Operating Report for December 2005
-----------------------------------------------------------
On Feb. 6, 2006, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
month ended December 2005, with the United States Bankruptcy
Court for the District of Delaware.

For the month ending Dec. 31, 2005, the Company's Income
Statement shows:
                                                  Net Income/
                                      Revenue     (Net Loss)
                                      -------     -----------
America Online Latin                       $0           ($499)
America, Inc.

AOL Latin America Management,         $99,167      $1,519,130
LLC

AOL Puerto Rico Management             $3,062       ($212,120)
Services, Inc.

America Online Caribbean Basin,       $43,745       ($154,537)
Inc.

At Dec. 31, 2005, the Company's balance sheet shows:

                America Online Latin America, Inc.
                __________________________________

      Current Assets                        $17,404,086
      Total Assets                          611,241,895
      Current Liabilities                     6,130,621
      Total Liabilities                     166,130,621
      Total Stockholders' Equity          [$445,111,274]


                AOL Latin America Management, LLC
                _________________________________

      Current Assets                        $14,928,239
      Total Assets                           15,000,954
      Current Liabilities                    27,114,329
      Total Liabilities                      27,114,329
      Total Stockholders' Deficit          ($12,113,375)


             AOL Puerto Rico Management Services, Inc.
             _________________________________________

      Current Assets                              ($272)
      Total Assets                              126,425
      Current Liabilities                     6,338,689
      Total Liabilities                       6,355,137
      Total Stockholders' Deficit          [($6,228,712)]


               America Online Caribbean Basin, Inc.
               ____________________________________

      Current Assets                        $20,519,801
      Total Assets                           20,540,126
      Current Liabilities                       199,489
      Total Liabilities                         199,489
      Total Stockholders' Equity            $20,340,637

A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the month ended
December 2005, is available at no charge at:

                http://ResearchArchives.com/t/s?58f

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.


MUSICLAND HOLDING: Gets Okay to Pay Warehousing, Shipping Claims
----------------------------------------------------------------
As reported in the Troubled Company Reporter on Feb. 3, 2006,
Musicland Holding Corp. and its debtor-affiliates sought the
U.S. Bankruptcy Court for the Southern District of New York's
permission to make non-disputed prepetition payments to the
Shippers and Warehousemen relating to the $10 million Shipping
Charges to:

   (a) obtain release of critical or valuable goods or equipment
       that may be subject to liens;

   (b) maintain a reliable, efficient and smooth distribution
       system; and

   (c) induce critical shippers, warehousemen and other
       creditors with potential liens to continue to carry goods
       and equipment and make timely delivery.

                   Shippers and Warehousemen

According to James H.M. Sprayregen, Esq., at Kirkland & Ellis
LLP, the Debtors hire shippers and warehousemen to assure the
timely shipping and delivery of goods sold in the ordinary
course of the Debtors' businesses.  The Debtors believe that,
unless paid, Shippers and Warehousemen may withhold delivery of,
or access to, the goods in their possession, which have a value
well in excess of the amount of Warehousing Claims. Moreover,
under the laws of many states, Shippers and Warehousemen may
have a possessory lien on goods in their possession.

Mr. Sprayregen says that in connection with the normal operation
of their businesses, the Debtors purchase music, movies and
entertainment-related products from numerous vendors and
suppliers.  The Debtors' ability to timely receive, distribute
and return those Retail Goods depends on the maintenance of a
successful and efficient supply and delivery network.

Thus, Mr. Sprayregen notes that the Debtors' business operations
and their reorganization's success depends on the maintenance of
reliable and efficient transportation and sale processing
systems for Retail Goods.  Those systems involve the use of the
Shippers and Warehousemen.

                        Lien Claimants

In addition, the Debtors routinely transact business with a
number of other third parties who have the potential to assert
mechanics' or artisans' liens against the Debtors and their
property if the Debtors fail to pay for the goods or services
rendered.  Those Lien Claimants perform various services for the
Debtors, including new store build-outs, store remodeling and
repairs.

Mr. Sprayregen explains that although the Debtors have generally
made timely payments to the Lien Claimants as of the Petition
Date, a substantial number of the Lien Claimants may have been
unpaid for certain prepetition goods and services.

Mr. Sprayregen argues that the existence and perfection of the
Mechanics' Liens could possibly place the Debtors out of
compliance under their various leases.  Moreover, certain Lien
Claimants may refuse to perform their ongoing obligations under
those agreements with the Debtors, including installation,
servicing and warranty obligations.

To avoid undue delay and to facilitate the continued operation
of the Debtors' businesses, the Debtors seek the Court's
immediate authority to pay the claims of Lien Claimants that
have given or could give rise to a lien against the Debtors'
assets, provided that the Debtors will not be authorized to pay
a Lien Claimant unless the Lien Claimant has perfected or is
capable of perfecting one or more liens in respect of that
claim.

                            Objections

(1) Creditors Committee

The Official Committee of Unsecured Creditors contends it is
necessary to review:

    * the Debtors' underlying agreements with the Shippers and
      Lien Claimants;

    * the salient documents delineating the potential liens; and

    * the list of the specific goods held by the Shippers and
      Lien Claimants.

The Committee has asked the Debtors to provide the necessary
information.  However, as of January 25, 2006, the Committee has
not received sufficient information to enable them to fully
evaluate the merits of the Debtors' request.

Thus, the Committee asks the Court to adjourn the hearing until
they receive and get to review the necessary documents.

(2) Deluxe Media

As of the Petition Date, Deluxe Media Services, Inc., had
$70,000,000 of the Debtors' inventory stored at a warehouse in
11500 80th Avenue, Pleasant Prairie, Wisconsin.

Deluxe Media Services has a lien on the charges and expenses
related to the warehousing.

Thomas R. Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP,
in New York City, tells the Court that the Debtors owe Deluxe
$27,000,000, a portion of which is secured by Deluxe's statutory
lien.  However, the Debtors have failed make any provision for
Deluxe's lien.

(3) LVI

Licensing Ventures, Inc., estimates that the Debtors owe it
$210,000 for prepetition services.  In addition, postpetition
obligations presently total $135,000.

Mark Frankel, Esq., at Backenroth Frankel & Krinsky LLP, in New
York City, argues that the Debtors' request should not be
granted unless and until the Debtors identify the vendors that
they deem critical and establish that they have exercised sound
discretion in deciding who is entitled to critical vendor
status.

                           *     *     *

Judge Stuart M. Bernstein authorizes the Debtors to pay
prepetition Shipping Charges totaling $10,000,000, subject to
having the ability to do so under the proposed debtor-in-
possession financing.

Judge Bernstein also permits the Debtors to pay prepetition Lien
Claimant Claims totaling $2,000,000.

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)


MUSICLAND HOLDING: Panel Balks at Cos.' Request to Return Goods
---------------------------------------------------------------
As reported in the Troubled Company Reporter on Feb. 3, 2006,
Musicland Holding Corp. and its debtor-affiliates strive to
ensure that their stores are well-stocked with the most popular
and recently released movies, music and other entertainment
products.  However, the demand for a particular movie or album
is difficult to predict.

Return rights permit a retailer to return inventory at any time
to its vendors for credit against the amounts owed for past
purchases or for credit against future purchases.  Those return
rights enable a retailer to ensure a sufficient supply of new
products as they are released and before the demand can be fully
ascertained, shift the risk of obsolete and undesired product
from the retailer to the vendor, and enable the Debtors to
maintain a broader selection of inventory without significant
risk of loss if the products cannot be sold.

According to James H.M. Sprayregen, Esq., at Kirkland & Ellis
LLP, the Debtors customarily purchase movies, music and
entertainment products from vendors with return rights.  The
Debtors rely on return rights in purchasing Inventory and
establishing Inventory levels.  On a monthly basis, the Debtors
designate some of their unsalable or slow-moving Inventory for
return to vendors.

Mr. Sprayregen disclosed that the Debtors, excluding MediaPlay
stores, had $297 million of Inventory held for sale as of
January 4, 2006.

Mr. Sprayregen noted that to manage the Debtors' inventory
effectively and efficiently, the Debtors must have the ability

   (i) to return Inventory existing on the Petition Date; and

  (ii) to order entertainment products postpetition on credit
       with the ability to return unsold Inventory.

The Debtors entered into security agreements with a number of
the Debtors' major music and video suppliers in November 2003.
In those Trade Lien Agreements, the Debtors granted those
vendors second liens on all the Debtors' inventory held for
sale, junior in priority to the liens securing the Debtors'
obligations to Wachovia Bank, National Association, the Debtors'
prepetition lender.  Mr. Sprayregen relates that the Debtors'
books showed that the Trade Lien Creditors were owed more than
$180 million as of the Petition Date.

Mr. Sprayregen told the U.S. Bankruptcy Court for the Southern
District of New York that the Debtors have worked closely with
an Informal Committee of Trade Lien Vendors to develop an
acceptable returns program for the Trade Lien Creditors during
the Chapter 11 Cases.  Subsequently, the parties agreed to two
standard forms of agreements that will serve as basis for the
Debtors' negotiations with the Trade Lien Creditors and with the
unsecured vendors.

Pursuant to Sections 364 and 546(h), the Debtors sought the
Court's authority to return prepetition inventory of prepackaged
media including CDs, DVDs and games to the Debtors' vendors, and
to incur and obtain from those vendors an open Postpetition line
of credit equal to one dollar for every dollar of prepetition
Inventory returned.

                   Creditor Committee Responds

Mark T. Power, Esq., at Hahn & Hessen LLP, in New York City,
states that initially the Debtors' counsel and financial
advisors failed to provide the Official Committee of Unsecured
Creditors with copies of vendors' return policies, an
explanation of how they intend to implement the Return Program
or a list of the planned beneficiaries of the Return Program.
"Under the circumstances, it is difficult for the Committee to
evaluate whether the Return Program is in the best interest of
the Debtors' estates."

According to Mr. Power, the Committee has also been informed
that:

    -- a significant amount of the Inventory is outdated and
       therefore, has little, if any, resale value; and

    -- the vast majority of the Inventory is to be returned to
       the alleged Trade Lien Creditors, not the Unsecured Trade
       Creditors.

"While the Debtors' request purports to involve all prepetition
creditors, it fails to note that it is primarily just the Trade
Lien Creditors that will receive the bulk of the returned
Inventory," Mr. Power points out.

The Committee is also concerned that:

    a. The potential size of the Return Program, $40,000,000 in
       Inventory, appears excessive and could quickly result in
       the Debtors' estates being burdened with significant
       unpaid superpriority administrative claims;

    b. The Return Program appears to unreasonably and
       inappropriately favor the Trade Lien Creditors to the
       detriment of the Unsecured Creditors;

    c. The Return Program fails to address and may seriously
       impair the Committee's ability to bring potential Chap. 5
       claims against the Trade Lien Creditors; and

    d. The Return Program improperly permits certain
       participating vendors to receive a larger recovery than
       they would otherwise be entitled to under a plan of
       reorganization or liquidation to the detriment of other
       creditors' estates.

The Debtors' request treats similarly situated creditors
differently in contravention of the goal of equality treatment
under the Bankruptcy Code, Mr. Power contends.

Accordingly, the Committee asks the Court to deny the Debtors'
request.

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)


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


PDVSA: Gets US$400 Million in Dividends from Cerro Negro
--------------------------------------------------------
State-owned oil firm Petroleos de Venezuela aka PDVSA will
receive from Cerro Negro about US$400 million in dividends
corresponding to 2005, reports Business News Americas.

According to Business News, PDVSA Deputy President for Finances,
Eudomario Carruyo, revealed in January that about US$1 billion
in dividends from four Orinoco projects was to be paid as soon
as PDVSA files its 2004 and 2005 financial results with the US
Securities Exchange Commission.  U.S. partners in the four
projects operated by foreign oil firms, on the other hand, are
prevented from paying dividends until PDVSA presents its
balances to the SEC.

PDVSA President and Energy and Oil Minister Rafael Ramirez told
Business News that Venezuela had received some dividends from
its share in the other three projects, Sincor, Petrozuata and
Ameriven.  He, however, declined to reveal the amount.

PDVSA and U.S. oil giant ExxonMobil each have 41.67% in Cerro
Negro, a joint venture on the upgrade of extra-heavy crude from
Venezuela's vast Orinoco oil belt deposits, while the UK's BP
owns the rest.

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.


* Venezuela's Central Bank May Face Technical Bankruptcy
--------------------------------------------------------
The Venezuelan Central Bank's former economic research manager
Jose Guerra said that a renewed transfer of reserves to the
government will result in losses, according to an English
translation by Conchita Delgado, at El Universal newspaper.

Mr. Guerra emphasized that should the government continue asking
money from the bank, the international reserves will be depleted
gradually and monetary steadiness will be undermined, El
Universal relates.  He said that the only alternative is to
reform the central bank's laws.

The bank's law established a single delivery of US$6 billion in
reserves to the National Development Fund with the second half
of 2005.  However, the law providers setting a cap on the
reserves, El Universal relates.

"Delivery of US$6 billion in reserves last year, along with
large indebtedness eroded the bank assets, and weakened its
capital and source of earnings, i.e. international reserves,"
Mr. Guerra said.

President Hugo Chavez has requested the bank to deliver US$4
billion of reserves considered as excess.

"Additional apportionment of US$4 billion would be a breach of
the law.  The legal framework sets forth contribution on one
single occasion.  There is no reference to successive deliveries
to Fonden.  It is established that following this funding, the
Fund will get remaining foreign currency from oil exports.
Therefore, BCV is free from making a new contribution of
reserves," Mr. Guerra explained.

The Central Bank's Finance ex manager Jesús Rojas added that
Venezuela's foreign reserves are about US$1,077 per inhabitant,
as compared to US$1,075 in Chile.  "The government in that
country does not speak about excess," El Universal relates.

                        *    *    *

On Nov. 29, 2005, Fitch Ratings assigned expected 'BB-' ratings
to the pending issues of Venezuelan government bonds maturing
Feb. 26, 2016, and Dec. 9, 2020.  The 2016 bond has a 5.75%
fixed coupon and the 2020 bond has a 6% fixed coupon.  The bonds
are being marketed in Venezuela to be purchased in local
currency at the official exchange rate but under New York law,
with all coupon and principal payments in U.S. dollars.

Venezuela's sovereign ratings are supported by superior
international liquidity and low external financing
requirements relative to similarly rated sovereigns.  The
ratings are constrained by vulnerability to external shocks
because of oil dependency; diminished capacity of the private
sector to absorb shocks because of heavy government
intervention in the productive sector; recent spending
increases that reduce fiscal flexibility; and concerns about
the rule of law and potential political instability.  Fitch said
the Rating Outlook is Stable.


* Venezuela Inks US$200 Million Joint Fund Accord with Iran
-----------------------------------------------------------
The Associated Press reports that Venezuela and Iran agreed to
establish a joint fund of US$200 million to finance economic
development for the two oil-rich countries.

"With the creation of the Bi-National Venezuela-Iran Fund for
Development, we have taken a fundamental step for the
consolidation of relations between Iran and Venezuela,"
Venezuelan Foreign Trade Minister Gustavo Marquez was quoted by
the Bolivarian News Agency as saying.

The deal, signed by Minister Marquez and the chairman of the
Export Development Bank of Iran, Nowrouz Kohzadi, was the latest
sign of improving relations between two governments that are
outspoken critics of the United States.

Each country will provide equal portions to the fund in a
project designed to bolster exports and bilateral trade.  Among
the projects discussed include construction of cement, tractor
and auto parts plants.

Venezuela's President Hugo Chavez also supports Iran's nuclear
program, giving rise to increasing concern from the United
States.  President Chavez also has reportedly expressed interest
in building a peaceful nuclear program to produce electricity,
AP 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
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Marjorie C. Sabijon and Sheryl
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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