TCRLA_Public/060223.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, February 23, 2006, Vol. 7, Issue 39

                            Headlines

A N T I G U A   &   B A R B U D A

* Antigua Promotes T-Bills in Trinidad to Raise EC$151 Million


A R G E N T I N A

AIM ASISTENCIA: Verification Phase of Claims Ends on March 1
ALL BAG'S: Acceptance of Creditors' Claims Ends on April 18
ARTE GRAFICO: Issues US$98MM Series D Negotiable Notes Due 2011
CORPORACION ARGENTINA: Claims Verification Ends by April 28
DOUGLAS GROUP: Trustee to Cease Claims Verification on March 31

GRUPO SEGURCITY: Court Approves Reorganization Motion
JUAN JOSE: Files for Bankruptcy After Defaulting on Payments
LOMA NEGRA: US$100 Million Bond Solicitation Ends March 3
LOMA NEGRA: S&P Assigns B Local, Foreign Corp. Credit Ratings
ROHN S.R.L.: Wants to Reorganize Under Court Supervision

TERMIGLASS S.A.: Trustee Ends Claims Verification on March 28
TRANSENER: S&P Raises Corporate Credit Ratings to B-
* ARGENTINA: Moody's Could Lift Bank's 'E' Financial Strength


B A R B A D O S

DIGICEL: Promises Better and Cheaper Mobile Telecom Services


B E R M U D A

NEW WORLD: Chapter 15 Proceeding Hearing Commences Today


B R A Z I L

BANCO BRADESCO: Moody's Assigns Positive Outlook on C- Rating
COSAN: Acquires Acucareira Corona S.A for BRL399 Million
PETROLEO BRASILEIRO: Supports Proposed Natural Gas Pipeline


C A Y M A N   I S L A N D S

BEAR STEARNS: Liquidator Stops Accepting Claims on March 22
FARREL INVESTMENTS: Verification of Claims Stops on March 6
MUSEUM MILE: Verification of Claims Lasts until March 6
NARASFUND LIMITED: Creditors Given until March 6 to Prove Claims
TERRACO INVESTMENTS: Creditors Must Submit Claims by Feb. 27

ZAMBESI LIMITED: Creditors Required to Prove Claims by March 6


C U B A

* Cuba Foreign Bank Inks Accord with Iran's Export Dev't Bank


D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Inco Extends Offer to Acquire Common Shares


E C U A D O R

ECUADOR: Moody's Shifts Outlook on Caa1 Foreign Currency Rating


E L   S A L V A D O R

AES CORP.: S&P Withdraws Units' BB+ Corporate Credit Ratings


J A M A I C A

* JAMAICA: S&P Affirms B Sovereign Credit Ratings


M E X I C O

AOL LATIN: Wants Court OK to Extend Cicerone's Employment
AOL LATIN: Wants Plan Solicitation Period Extended Until May 20
CFE: Fined MXN45,000 for Polluting Laguna del Camaron Lake


P U E R T O   R I C O

MUSICLAND HOLDING: Can Maintain Existing Insurance Policies
MUSICLAND HOLDING: Court Approves Abacus as Advisor & Consultant


T R I N I D A D   &   T O B A G O

* Antigua Promotes T-Bills in Trinidad to Raise EC$151 Million


U R U G U A Y

COOPERATIVA DE AHORRO: Fitch Withdraws B- Currency Ratings
* Uruguay Completes Issuance of US$500 Mil. 8% Bonds Due 2022


V E N E Z U E L A

CITGO PETROLEUM: Says It Will Cooperate on Oil Program Probe
PDVSA: Carenero Port Facilities Awarded INEA Certification
* VENEZUELA: Open to Private Investment in Oil Industry
* Analysts Say Latin America's Steel Industry Set to Consolidate

     -  -  -  -  -  -  -  -

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


* Antigua Promotes T-Bills in Trinidad to Raise EC$151 Million
--------------------------------------------------------------
Representatives of the government of Antigua and Barbuda visited
Monday Trinidad and Tobago in an attempt to raise EC$151 million
through an issue of treasury bills and bonds, the Trinidad
Express reports.

Antigua will be issuing EC$51 million in treasury bills and
EC$100 million in bonds.  The treasury bills will be issued in
three different tranches of EC$17 million each with tenure of up
to 91 days, via a competitive uniform price auction using the
Eastern Caribbean Securities Exchange Primary Market Platform.
The issuance is done in tranches to build investor confidence
and to demonstrate the country's capacity in a short-term
period.

"These are securities that are on the Eastern Caribbean
Securities Market and Government intends to raise these monies
and use the monies to buy out high end debt and use the new
monies for certain infrastructural programmes in Antigua and
Barbuda," according to Antigua and Barbuda's Minister of Finance
and the Economy, Dr. Errol Cord.

The bidding is tentatively set from 9:00 a.m. to 12:00 noon, on
March 15.  The minimum bid amount is EC$5,000 and a maximum
discount rate offered is 6.5% per annum.

The other issues will take place in mid April and May.

The bond issue, which will take place in June, will be for a
period of 10 years.

Antigua's representatives will take their road show to Grenada,
St. Vincent, St. Lucia, Dominica, New York and Toronto within
weeks.

The arranger and dealer of the Bills is ABI Bank Ltd of Antigua,
with the paying agent being the Eastern Caribbean central Bank.


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


AIM ASISTENCIA: Verification Phase of Claims Ends on March 1
------------------------------------------------------------
The verification phase of claims against Aim Asistencia Integral
de Medicamentos S.A. will end on March 1, 2006, Infobae reports.

Individual reports will be prepared out of the verified claims.
The reports will be presented in court for approval on April 17,
2006.

The submission of a general report on the case will follow on
May 30, 2006.

The company started liquidating assets after a Buenos Aires
court declared its bankruptcy and appointed accounting firm
Bosnic, Lopez y Feltrin as trustee.

Aim Asistencia Integral de Medicamentos S.A. can be reached at:

         Piedras 872/4
         Buenos Aires

Bosnic, Lopez y Feltrin, the trustee, can be reached at:

         Suipacha 472
         Buenos Aires


ALL BAG'S: Acceptance of Creditors' Claims Ends on April 18
-----------------------------------------------------------
Creditor's claims against Buenos Aires-based bankrupt company
All Bag's S.R.L. will be accepted until April 18, 2006, La
Nacion reports.  Claims forwarded after the said date will not
be entertained.

The city's Court No. 24 declared the company bankrupt in favor
of Artanco S.A., the company's creditor.  Artanco has claims
totaling $875.71 against the company.

Clerk No. 48 assists the court on this case.

All Bag's S.R.L. can be reached at:

         Castillo 1414
         Buenos Aires

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

         Rivadavia 2151
         Buenos Aires


ARTE GRAFICO: Issues US$98MM Series D Negotiable Notes Due 2011
---------------------------------------------------------------
Arte Gr fico Editorial Argentino, an Argentine media group, has
issued US$98 million Series D negotiable obligations under its
US$450 million global program.  The 25 January issuance was
approved by the Argentine Securities Commission, the Latin
Lawyer reports.

The notes are peso-denominated and will mature in December 2011.
The notes will have a floating rate coupon reflecting the CER
(Coeficiente de Estabilizaci˘n de Referencia) plus a margin of
4.25%.  Interest will be paid in June and December each year.

"This kind of issuance is not very frequent these days in
Argentina, since companies prefer to be financed by financial
trusts," notes Marˇa Gabriela Grigioni of P‚rez Alati, Grondona,
Benites, Arntsen & Martˇnez de Hoz (h), who advised lead dealer
JP Morgan Chase.

"In my opinion, there should be more issuances like AGEA's,
because they enhance and sustain a bond market in Argentina by
providing investors different securities to invest in, and
allowing companies direct access to the capital markets."

The funds raised will be used to refinance the series B
negotiable obligations issued by AGEA in 2004, to invest in
Argentine assets and to make capital contributions to Artes
Graficas Rioplatenses, a subsidiary of AGEA, the Latin Lawyer
relates.

                        *    *    *

As reported on May 6, 2005, Fitch Argentina Calificadora de
Riesgo S.A., the Argentine arm of international ratings agency
Fitch Ratings, assigned below investment grade ratings to
certain corporate bonds issued by Arte Grafico Editorial
Argentino S.A.

The Comision Nacional de Valores, Argentina's securities
regulator, listed these bonds at its website along with their
corresponding ratings:

   -- US$30.6 million worth of bonds described as "Serie C -ON a
      Tasa Fija creciente" were rated `BB(arg)'.

This particular issue, whose final maturity date is not
revealed, is classified as `Series and/or Class';

   -- US$83.72 million worth of bonds described as "Obligaciones
      Negociable SERIE B por hasta U$S 83.72 MM (2011)" were
      Rated 'BB(arg)'.

This particular issue, whose final maturity date is
not revealed, is classified as `Series and/or Class';

   -- US$600 million worth of bonds described as "obligaciones
      negociables" were rated `CCC(arg)'.  These bonds, the
      maturity of which is unknown, were classified `Program'.


CORPORACION ARGENTINA: Claims Verification Ends by April 28
-----------------------------------------------------------
Court-appointed trustee, Jorge Sahade, has started accepting
creditors' claims against bankrupt company Corporacion Argentina
de Productores de Crema S.A., La Nacion reports.  The claims
will be verified until April 28, 2006.  Creditors who are unable
to submit their claims to the trustee after the said date will
be disqualified from any distribution that the company will
make.

Corporacion Argentina de Productores de Crema S.A. was declared
bankrupt by Buenos Aires' Court No. 7, with the assistance of
Clerk No. 13.  The ruling was made in favor of Mr. Luis Di
Muccio, whom the company has debts amounting to $7,378.97.

Corporacion Argentina de Productores de Crema S.A. can be
reached at:

         H. Yrigoyen 3232/6
         Buenos Aires

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

         Av. de Mayo 1324
         Buenos Aires


DOUGLAS GROUP: Trustee to Cease Claims Verification on March 31
---------------------------------------------------------------
Douglas Group S.A.'s trustee, Mr. Jorge Luis Blazquez, will stop
verifying claims forwarded by the company's creditors on March
31, 2006, Infobae reports.

Mr. Blazquez was appointed trustee after the declaration of the
company's bankruptcy by a Buenos Aires court.

Mr. Blazquez will prepare individual reports on the verified
claims and present them in court on May 15, 2006.  The trustee
will also submit a general report on the case on June 27, 2006.

Douglas Group S.A. can be reached at:

         Biarritz 2512
         Buenos Aires

Mr. Jorge Luis Blazquez, the trustee, can be reached at:

         Fray Justo Santa Maria de Oro 2381
         Buenos Aires


GRUPO SEGURCITY: Court Approves Reorganization Motion
-----------------------------------------------------
Buenos Aires' Court No. 2 approved a petition for reorganization
filed by Grupo Segurcity S.A., according to a report from
Argentine daily La Nacion.

Trustee Isabel Ramirez will verify claims from the company's
creditors until April 19, 2006.  After verification period, the
trustee will submit the individual and general reports in court.
Dates for submission of these reports are yet to be disclosed.

The informative assembly will be held on Feb. 22, 2007.
Creditors will vote to ratify the completed settlement plan
during the said assembly.

The city's Clerk No. 3 assists the court on the case.

Grupo Segurcity S.A. can be reached at:

         Acoyte 1360
         Buenos Aires

Ms. Isabel Ramirez, the trustee, can be reached at:

         Teniente General Juan Domingo Peron 2082
         Buenos Aires


JUAN JOSE: Files for Bankruptcy After Defaulting on Payments
------------------------------------------------------------
Buenos Aires-based Juan Jose Gomez y Maria Ocaranza Sociedad de
Hecho filed for bankruptcy before the city's Court No. 19, after
defaulting on its debt payments June 25, 2002, reports Argentine
daily La Nacion.

Clerk No. 37 assists the court on the case.

Juan Jose Gomez y Maria Ocaranza Sociedad de Hecho can be
reached at:

         Flor del Aire 4972
         Buenos Aires


LOMA NEGRA: US$100 Million Bond Solicitation Ends March 3
---------------------------------------------------------
Loma Negra Compania Industrial Argentina S.A. reported
Argentina's National Securities Commission its intention to sell
US$100 million bonds due 2013 as part of a five-year program to
issue US$500 million in paper.

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

General Manager Jose Edison Barros Franco said that the company
has started accepting bids for the bonds on Feb. 21 at 10:00
a.m. through March 3 at 3:00 p.m.

Rafael Ber, a bond analyst, told Bloomberg that the bonds will
probably yield between 9% and 9.25%

Mr. Barros Franco declined to comment on what the bonds may
yield when asked by Bloomberg in a phone interview.  Argentine
government dollar-denominated bonds yield on average 3.73%
points more than U.S. Treasuries, according to JPMorgan Chase &
Co.'s benchmark emerging-market debt index.

According to Bloomberg, the sale is Loma Negra's first in
international credit markets since it was acquired last year by
Sao Paulo-based Camargo Correa, Brazil's No. 4 cement producer.
With the sale, Camargo Correa will pay off the remainder of the
debt that Loma Negra had prior to the takeover.  Loma Negra
defaulted on about US$400 million of debt after the government's
debt default in 2001.

Morgan Stanley & Co.  Incorporated will act as the international
agent and BBVA French Bank Inc. will act like as the agent in
Argentina.

Buenos Aires-based Loma Negra last year had sales of 883 million
pesos ($288 million), a 21.5%increase over the previous year as
Argentina's economy grew 9.1%.

                        *    *    *

As reported on Feb 13, 2006, Moody's Latin America has assigned
a 'Ba3' rating and a 'Aa2.ar' national scale rating to the
US$100 million notes to be issued by Loma Negra, based on a full
and unconditional guaranty by Camargo Correa Cimentos S.A. aka
CCC.  At the same time, Moody's has assigned a 'B2' (global
local currency) corporate family rating to Loma Negra and to its
outstanding notes, and concurrently an 'A2.ar' national scale
rating to the outstanding notes of Loma Negra, which are not
guaranteed.  The rating outlook is stable.

Moody's national scale ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks.  NSRs in Argentina are designated by the ".ar"
suffix.  NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.

The 'B2' global local currency corporate family rating assigned
to Loma Negra reflects the company's operating and financial
improvements following its debt restructuring and improvements
in the Argentine economy.  During the past three years operating
margins, cash flow and debt ratios, have improved due to the
combined impact of increased revenues, cost cuts and cement
price recovery in the domestic market, leading to a strong debt
reduction from internally generated cash flows.  EBIT margin
grew from 22% in FYE 03 to 37% in FYE 05 on an individual basis.
Free cash flow to total debt increased from 28% to 40% in the
same period, EBITDA margin is currently around its historical
45% - 50%, and the debt to EBITDA ratio is lower than 1.5x.

Moody's notes, however, that Loma Negra's cash flows and
revenues have been extremely volatile and strongly affected by
the economic cycles in Argentina and that the peso devaluation
has had a negative impact on the company's balance sheet and
income statement.

The 'B2' global local currency corporate family rating is based
on the stand-alone creditworthiness of Loma Negra and does not
take into account any support from its parent company Camargo
Correa Cimentos.

While the likelihood of an upgrade of Loma Negra's stand-alone
ratings is currently unlikely, any future improvements in the
ratings would be based on evidence of sustainable and stable
growth in operating revenues and cash flow while maintaining
operating margins, and demonstrated ability to balance dividend
payments, investment activities, and acquisitions with financial
flexibility.

Loma Negra stand-alone ratings could be lowered if its operating
performance weakens or if its dividends payments or potential
acquisition activities result in weaker debt protection
measures.

The Ba3 rating for Loma Negra US$100 million guaranteed notes
has been assigned at the current rating level of the guarantor
company, CCC.  As a consequence, any changes in the rating of
CCC would affect the ratings on Loma Negra's guaranteed bonds

Loma Negra, a subsidiary of Camargo Correa Cimentos, is the
leader cement company in Argentina, with total revenues of ARS
737 millions, and a strong market position reflected by its more
than 45% market share in the Argentinean domestic cement market.

Camargo Correa Cimentos is a Brazilian cement company that is
directly owned by Camargo Correa S.A. -- one of the largest
private sector conglomerates in Brazil with annual net revenues
of about BRL6 billion derived mainly from its engineering &
construction, cement, textiles, footwear, energy, and
transportation businesses.  The Camargo Correa group regards
cement as a core business, which represented approximately 11%
and 25% of the group's 2004 total sales and EBITDA,
respectively.


LOMA NEGRA: S&P Assigns B Local, Foreign Corp. Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' local and
foreign corporate credit rating to Loma Negra C.I.A.S.A. (Loma
Negra), the largest Argentine cement producer.
The outlook is stable.

At the same time, S&P also assigned a 'BB' senior unsecured debt
rating to the forthcoming 144-A notes for $100 million to be
issued by Loma Negra, which will be fully, unconditionally, and
irrevocably guaranteed by its shareholder, Camargo Correa
Cimentos S.A. (Camargo; BB/Stable/-).  Proceeds from the
issuance will be used to refinance part of Loma Negra's debt and
to fund some capital expenditures in Argentina.  The bonds will
have a bullet with maturity in 2013.

"The corporate credit rating on Loma Negra reflects the
company's exposure to the swings in economic activity in
Argentina and the inherent volatility of the cement industry;
limited product and geographic diversification; and currency
mismatch risks," said Standard & Poor's credit analyst Marta
Castelli.  These factors are partially mitigated by the
company's good market position as the largest cement producer in
Argentina, competitive cost position and healthy financial
situation thanks to the significant debt amortizations after the
restructuring taken in 2003, and better economic conditions.  In
addition, the rating incorporates our expectations that the
company's financial health and strategic fit with its
shareholder Camargo create incentives for the latter to support
Loma Negra (if necessary), as shown by Camargo's guarantee on
Loma Negra's upcoming bond issuance.

Since December 2005, Loma Negra is owned by Camargo Correa
Cimentos S.A., the fifth-largest cement producer in Brazil in
terms of volume sales.  Camargo is a wholly owned subsidiary of
Camargo Correa S.A. aka CCSA, a holding company under which
Camargo Correa Group manages all of its business segments,
including cement, engineering and construction, textile and
footwear, energy and concessions, and other smaller operations.

The stable outlook reflects our expectations that Loma Negra
will maintain a moderate capital structure and credit measures
compatible with the current ratings.  The current ratings
incorporate Loma Negra's ability to sustain total debt-to-EBITDA
lower than 2x and a projected FFO-to-total debt ratio of more
than 30%.  The ratings could be revised if Loma Negra's
financial policy becomes too aggressive -- due to higher-than-
expected debt and/or dividend levels -- financial indicators
deteriorate from the levels, and/or there is a change in
business conditions that affects the company's business profile
and operational performance.  Rating upside is relatively
limited given the volatile nature of the cement industry.


ROHN S.R.L.: Wants to Reorganize Under Court Supervision
--------------------------------------------------------
Rohn S.R.L., a company operating in Buenos Aires, has requested
for reorganization after failing to pay its liabilities since
Aug. 18, 2005, La Nacion reports.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Court No. 3.  Clerk No. 6 assists on
this case.

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

         2 de Abril y Av. Gral.
         Paz, Barrio Piedrabuena, Edificio 12
         Buenos Aires, Argentina


TERMIGLASS S.A.: Trustee Ends Claims Verification on March 28
-------------------------------------------------------------
Mr. Eduardo Daniel Gruden, the trustee appointed by the Buenos
Aires court for the Termiglass S.A. bankruptcy case, has began
verifying creditors' claims against the company, Infobae
reports.  The verification will end on March 28, 2006.

Infobae relates that verified claims will be presented in court
as individual reports on May 15, 2006.

A general report on the company's bankruptcy is expected in
court on June 27, 2006.

Mr. Eduardo Daniel Gruden, the trustee, can be reached at:

         Roque Saenz Pena 1219
         Buenos Aires


TRANSENER: S&P Raises Corporate Credit Ratings to B-
----------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it raised
its local and foreign currency ratings on Argentina's largest
electricity transmitter, Compania de Transporte de Energia
Electrica en Alta Tension Transener S.A. aka Transener to 'B-'
from 'CCC+', and removed the ratings from CreditWatch with
positive implications.

The outlook is stable.  The ratings were originally placed on
CreditWatch Dec. 2, 2005.

The rating upgrade reflects expectations of better debt service
coverage ratios for the 2006-2008 period, mainly as a result of
the sizable tariff increase granted by the Argentine government
to Transener and its subsidiary Transba S.A. in December 2005.

"Transener should be able to meet its financial obligations
during the 2006-2008 period, assuming that the Argentine
peso/U.S. dollar exchange rate and the local inflation do not
change significantly," said Standard & Poor's credit analyst
Sergio Fuentes.


* ARGENTINA: Moody's Could Lift Bank's 'E' Financial Strength
-------------------------------------------------------------
Moody's Investors Service could find reasons to lift some of
Argentine banks' financial strength ratings that are now at the
lowest level, averaging 'E'.  This is according to Moody's
latest report on the country's banking system.

According to Gtnews.com, Moody's said, "We believe that the
banking industry's solvency is starting to look healthier,
largely because bank managements have been trimming public-
sector exposure and building up internal gains."

This, as far as Moody's is concerned, suggests that the banks
are starting to recover their time-honored function as financial
intermediaries in the business cycle.


===============
B A R B A D O S
===============


DIGICEL: Promises Better and Cheaper Mobile Telecom Services
------------------------------------------------------------
As previously reported, the Barbados government has given its
stamp of approval in a proposed merger between Digicel Limited
and Cingular Wireless.

In a follow-up report by the Caribbean Broadcasting Corp.,
Digicel's Chief Executive Officer Kevin White says local
consumers can expect improved and cheaper service in coming
months.

While not disclosing how much the company has spent on the
merger in Barbados and other Caribbean territories, Mr. White
told CBC that the company's expansion strategy is working well.

                  About Cingular Wireless

Cingular Wireless -- http://www.cingular.com/-- provides mobile
voice and data communication services. Includes rate plans,
equipment, and area coverage maps.  The company is 60%-owned by
AT&T Inc. (formerly SBC Communications) and 40% by BellSouth.

                  About Digicel Limited

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.


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


NEW WORLD: Chapter 15 Proceeding Hearing Commences Today
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will convene a hearing today, Feb. 23, 2006, at 11:00 a.m., to
consider Mark W.R. Smith, the duly appointed provisional
liquidator for New World Network International, Ltd., request to
recognize New World's pending case before the Bermuda Supreme
Court as a foreign main proceeding.

Section 1517 of the Bankruptcy Code provides that "an order
recognizing a foreign proceeding shall be entered" if three
conditions are met:

   1.  The foreign proceeding for which recognition is sought is
       a foreign main proceeding or foreign non-main proceeding
       within the meaning of Section 1502;

   2.  The foreign representative applying for recognition is a
       person or body; and

   3.  The petition meets the requirements of Section 1515.

Headquartered in Hamilton, Bermuda, New World Network
International, Ltd., is a holding company for the New World
Group of companies, an independent, privately held
telecommunications group.  Through a number of its direct and
indirect subsidiaries, the New World Group owned and operated an
optical fiber submarine cable system called the Americas Region
Cable Ring System or ARCOS, as well as some other assets.  ARCOS
is an 8,600km high capacity undersea digital broadband fiber
optic network that connects the United States with Puerto Rico
and other countries in Central America, South America and the
Caribbean.  New World filed a chapter 15 petition on Jan. 26,
2006 (Bankr. S.D.N.Y. Case No.: 06-10157).  Mark W.R. Smith
serves as the Foreign Debtor's provisional liquidator. Ingrid
Bagby, Esq., at Cadwalader, Wickersham & Taft LLP, represents
the Mr. Smith in the United States.  Robin J. Mayor, Esq., at
Conyers, Dill & Pearman is Mr. Smith's Counsel in Bermuda.  New
World has estimated assets and debts of $50,000.


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


BANCO BRADESCO: Moody's Assigns Positive Outlook on C- Rating
-------------------------------------------------------------
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable,
according to Gtnews.com.

The change in the outlook reflects the improved core
profitability and the positive trend of Bradesco's performance
metrics overall, which have substantially converged to those of
higher rated banks in Latin America, states Gtnews.com.

All Bradesco's other ratings and their outlooks were affirmed,
Gtnews.com reports.  Moody's noted that the company's franchise
has been strengthened after successive acquisitions of banking
and non-bank businesses over a number of years.

While such strategy has enhanced the scale of the bank's
operations and further diversified its customer and product
base, it has also limited the bank's focus on earnings quality
and operating efficiency, thus delaying the maximization of its
financial potential, states Gtnews.com.

Moody's said that the integration process is now largely
completed and this should ensure that earnings and efficiency
gains can now be realized.


COSAN: Acquires Acucareira Corona S.A for BRL399 Million
--------------------------------------------------------
COSAN S.A. Industria e Comercio announced the completion of its
acquisition of Grupo Corona's shares.  Grupo Corona is one of
the most traditional companies in the sugar and alcohol business
in Brazil and owner of both Bonfim and Tamoio Mills.

The acquisition totaled BRL398.6 million and will be primarily
paid with funds raised from COSAN's Initial Public Offering
financial operation in November 2005.  Corona's assets include
mills, with annual crush capacity of 6,000,000 tons of sugar
cane and approximately 6,000 alqueires of land.

With the acquisition, Rubens Ometto Silveira Mello, Chairman and
CEO, said, "COSAN not only becomes the world's largest sugar
exporter, but also reassures its strategy to act as the
consolidating agent of a highly segmented sector.  Hence, our
company will keep on pursuing the highest levels of productivity
and performance to look for continuous growth."

By the end of December, COSAN announced the purchase of a group
of companies, owners of Mundial Mill, located in Mirandopolis,
in Sao Paulo state Mid-West region.  This acquisition was priced
at BRL105.5 million.

In the purchase of Corona, the assumed financial liability as of
Dec. 31, 2005, amounted to BRL507.4 million, out of which
BRL266.5 million will be paid with proceeds from National
Treasury certificates, and by existing lands from the company's
portfolio.

Corona had BRL37.7 million in cash and cash equivalents as of
last December.

Corona's mills are located in Ribeirao Preto area, one of the
best regions for sugar cane culture in Brazil, producing VHP
export sugar as well as anhydrous and hydrous alcohol.

In the fiscal year ended on April 30, 2005, Corona registered
net revenue of BRL345 million and EBITDA of BRL46 million, with
5.8 million tons of cane crushed.  Combined with the other 14
mills of the group, COSAN has an annual crushing capacity of
approximately 39 million tons of sugar cane.

As reported by Troubled Company Reporter on Feb. 13, 2006,
Standard & Poor's Ratings Services said that the acquisition of
the sugar mills that comprise the so-called Corona Group has no
immediate impact on the ratings of Cosan S.A. Industria e
Comercio (foreign and local currency BB/Stable/--).

Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria 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.

                        *    *    *

Moody's Investors Service assigned a Ba2 foreign currency rating
to Cosan S.A. Industria 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. Acścar 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.


PETROLEO BRASILEIRO: Supports Proposed Natural Gas Pipeline
-----------------------------------------------------------
Petroleo Brasileiro SA, Brazil's state-controlled oil company,
has defended the proposed US$23 billion natural gas pipeline
that will run from Venezuela to Argentina, the Financial Times
reports.

Company President Jos‚ Sergio Gabrielli de Azevedo told the FT
that no other oil firm in the region has its capacity for
growth.  He added that Petrobras would continue to expand
production based on existing reserves, without the need for
acquisitions.

Mr. Gabrielli said that despite obstacles to the project, once
completed would have "an enormous impact on the energy matrix in
Latin America," making possible a range of energy-dependent
activities such as production of steel and fertilizers.  "It
would also release more than 1m bpd equivalent of oil for
export.  Gas networks are fundamental [to economic growth].
Look at what is happening in Ukraine, [western] Europe and the
US. The world needs these veins."

Petrobras is preparing to launch a R$37 million advertising
campaign to publicize the achievement of Brazilian self-
sufficiency in oil production, the FT relates.

The project was initiated by President Hugo Chavez to carry
Venezuelan natural gas to South American markets and eventually
tap into supplies in Bolivia, the continent's second-largest
source after Venezuela, in order to make the region self-
sufficient in gas.

Critics of the project said that the project is motivated by
politics. Critics also said that over the distances involved it
would be more economic to liquefy gas for delivery by ship
rather than through the pipeline that would destroy part of the
Amazon.


                        *    *    *

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
===========================


BEAR STEARNS: Liquidator Stops Accepting Claims on March 22
-----------------------------------------------------------
Bear Stearns Global Equity Arbitrage Fund Offshore, Ltd.'s
liquidator, CFS Liquidators Ltd., will stop accepting claims
from the company's creditors on March 22, 2006.  Creditors must
prove their claims and establish any title they may have under
the Companies Law (2003 Revision) by the said date, or be
excluded from receiving any distribution or payment that the
company will make.

The voluntary wind up of Bear Stearns Global Equity Arbitrage
Fund Offshore, Ltd., began on Jan. 26, 2006.

CFS Liquidators, Ltd., the voluntary liquidator, can be reached
at:

         Attention: M. David Makin
         c/o Windward 1, Regatta Office Park
         West Bay Road, P.O. Box 31106 SMB
         Grand Cayman, Cayman Islands
         Telephone: (345) 949 - 3977
         Facsimile: (345) 949 - 3877


FARREL INVESTMENTS: Verification of Claims Stops on March 6
-----------------------------------------------------------
The verification of claims of creditors against Farrel
Investments Limited, company in voluntary liquidation, will stop
on March 6, 2006.  Creditors are required to send to their
names, addresses, the particulars of their debts or claims and
the names and addresses of their attorneys-at-law (if any) to
Buchanan Limited, the company's liquidator.  Claims submitted
after March 6 will not be entertained.  Creditors may be
required to present proofs of claim at the time and place that
the creditor will specify.

Farrel Investments Limited's voluntary wind up started on Jan.
27, 2006.

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

         Attention: Timothy Haddleton
         P.O. Box 1170 GT, Grand Cayman
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


MUSEUM MILE: Verification of Claims Lasts until March 6
-------------------------------------------------------
The verification of claims of Museum Mile Holdings Limited's
creditors will last until March 6, 2006.  Creditors of the
company must therefore submit to Buchanan Limited, the company's
liquidator, their names, addresses, the particulars of their
debts or claims and the names and addresses of their attorneys-
at-law (if any) on or before the said date, or be disqualified
from any distribution or payment that the company will make.
Creditors may prove their claims personally or by their lawyers
at the time and place that the liquidator will specify.

Museum Mile Holdings Limited's voluntary liquidation began on
Jan. 27, 2006.

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

         Attention: Timothy Haddleton
         P.O. Box 1170 GT, Grand Cayman
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


NARASFUND LIMITED: Creditors Given until March 6 to Prove Claims
----------------------------------------------------------------
Creditors of Narasfund Limited are given until March 6, 2006, to
have their claims verified by Buchanan Limited, the company's
liquidator, or be excluded from the benefit of any distribution
that the company will make.  Creditors must send their names,
addresses, the particulars of their debts or claims, and the
names and addresses of their attorneys-at-law (if any).
Creditors may be required to prove their claims personally or by
their attorneys-at-law at the time and place that the liquidator
will specify.

Narasfund Limited started winding up operations on Jan. 27,
2006.

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

         Attention: Timothy Haddleton
         P.O. Box 1170 GT, Grand Cayman
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


TERRACO INVESTMENTS: Creditors Must Submit Claims by Feb. 27
------------------------------------------------------------
Creditors of Terraco Investments Ltd., a company in voluntary
liquidation, are to submit claims to the company's liquidator,
Prisma Energy Global Services Ltd., on or before Feb. 27.
Creditors whose claims are unverified after the said date will
be excluded from any distribution that the company will make.

Terraco Investments Ltd. entered voluntary liquidation on Jan.
26, 2006.

Prisma Energy Global Services Ltd., the voluntary liquidator,
can be reached at:

         Attention: Philip Ebanks
         P.O. Box 1350 GT, Clifton House
         75 Fort Street, George Town, Grand Cayman


ZAMBESI LIMITED: Creditors Required to Prove Claims by March 6
--------------------------------------------------------------
Zambesi Limited's creditors are required on or before March 6,
2006, to send in their names, addresses, the particulars of
their debts or claims, as well as the names and addresses of
their attorneys-at-law (if any) to Buchanan Limited, the
liquidator of the company.  Buchanan Limited may require the
liquidator to prove their claims personally or through their
attorneys-at-law at the time and place that the liquidator will
specify.  Creditors who are unable to prove their claims after
March 6 will be excluded from the benefit of any distribution
the company will make.

On Jan. 27, 2006, Zambesi Limited started liquidating assets and
appointed Buchanan Limited as its liquidator.

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

         Attention: Timothy Haddleton
         P.O. Box 1170 GT, Grand Cayman
         Telephone: (345) 949-0355
         Facsimile: (345) 949-0360


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


* Cuba Foreign Bank Inks Accord with Iran's Export Dev't Bank
-------------------------------------------------------------
The Tehran Times reports that Cuba Foreign Bank signed an
agreement with Export Development Bank of Iran in a ceremony
that was attended by speakers of parliaments from Iran and Cuba.

The banking accord facilitates export of Iranian goods as well
as engineering and technical services to Cuba in exchange for a
US$90 million credit, the Tehran Times states.

It is estimated that Tehran-Havana trade will top $50 million
this year, according to the Tehran Times.  Iran has a positive
trade balance with Cuba.

In January, Iran and Cuba signed a comprehensive document
promoting bilateral cooperation between the two countries.


===================================
D O M I N I C A N   R E P U B L I C
===================================


FALCONBRIDGE: Inco Extends Offer to Acquire Common Shares
---------------------------------------------------------
Inco Limited (TSX, NYSE:N) announced Tuesday, that, based upon
the results of recent discussions with competition
authorities in the United States and Europe, it plans to extend
the date that its offer to acquire all of the common shares of
Falconbridge Limited  (TSX:FAL.LV, NYSE:FAL) will remain open
for acceptance from February 28, 2006 to June 30, 2006.  This
extension is intended to provide additional time for the
competition authorities to complete their review of the pending
transaction.

Inco intends to mail a formal notice of extension to
Falconbridge common shareholders by late February 2006.
Receipt of required regulatory clearances is one of the
remaining conditions of Inco's offer to be met in order to
enable Inco to be in a position to take up and pay for
Falconbridge common shares tendered.

Inco and Falconbridge have supplied information and data in
response to requests from the U.S. Department of Justice (DOJ)
and competition authorities in Europe to enable these
authorities to be in a position to determine whether they see
any competition concerns associated with this transaction and,
if they do, whether a remedy will be required to gain their
clearance.  Inco and Falconbridge understand and appreciate the
time and effort that these authorities have devoted to their
required review processes.

The DOJ has indicated to the companies that it is still in the
process of determining whether the pending transaction can be
cleared without the need for any remedy.   Inco and Falconbridge
are also continuing to work with the DOJ on a potential remedy
that Inco indicated in October 2005 it was prepared to accept if
the DOJ ultimately determined that such a remedy was required in
order to resolve any of its competition concerns.

It is currently projected that the DOJ will advise Inco and
Falconbridge on its conclusions with respect to these two areas
sometime in the next two months.  Meetings have also been held
with the European Commission team reviewing the transaction. The
Commission is expected to advise Inco by February 24, 2006,
whether it will clear the transaction or have this transaction
proceed to a second phase review under the applicable rules and
regulations for this phase.  If the Commission were to move into
a second phase review, this phase would involve the continuation
of the Commission's review for a period of up to 90 business
days.   During that period, Inco would continue to work with the
Commission in its evaluation of the transaction.  In the event
that the Commission concludes in this second phase that it has
any competition concerns, Inco intends to work with the
Commission to determine what remedy will be required to address
such concerns and clear the transaction either before or by the
end of this phase.

Inco has agreed with Falconbridge that, pursuant to an amendment
to the October 10, 2005, support agreement entered into covering
the pending acquisition, Inco will extend its offer through one
or more additional extensions to early August 2006 if the
regulatory clearance condition of Inco's offer referred to above
is not met by the time currently provided for under this
agreement.   Falconbridge has agreed that any such extended
expiry date of Inco's offer can be accelerated in the event that
regulatory clearances are obtained earlier.

Inco and Falconbridge continue to believe that, given the
operation of the market dynamics themselves, there are no
significant competitive issues and the transaction should
proceed without a remedy.  If, however, the DOJ and the
Commission, in reaching their final conclusions on this
transaction, ultimately decide that there are competitive
issues, Inco and Falconbridge believe that any unresolved
concerns can be addressed by a mutually acceptable remedy that
would be worked out with these authorities.

"The combination of Inco and Falconbridge continues to represent
a great transaction for Inco and Falconbridge shareholders,"
said Scott Hand, Chairman and CEO of Inco.  "Our two companies
remain fully committed to this deal."

                     About Inco Limited

Headquartered in Toronto, Canada, Inco Limited --
http://www.inco.com/-- is one of the world's premier mining and
metals companies and the world's second largest producer of
nickel.  It says that its world-class mineral reserve and
resource base is among the best in the global nickel industry.
The company also produces copper, cobalt and precious and
platinum-group metals and a major producer of specialty nickel-
based products.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited --
http://www.falconbridge.com/-- produces nickel products.  It
owns nickel mines in Canada and the Dominican Republic; it
operates a refinery and sulfuric acid (used in refining) plant
in Norway.  It is also a major producer of copper (38% of sales)
through its Kidd mine in Canada and its stake in Chile's
Collahuasi mine and Lomas Bayas mine.  Its other products
include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bond
due April 30, 2007, carries Standard & Poor's BB+ rating.


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


ECUADOR: Moody's Shifts Outlook on Caa1 Foreign Currency Rating
---------------------------------------------------------------
Moody's Investors Service has shifted Ecuador's 'Caa1' foreign-
currency government bond rating outlook to positive from stable,
according to Gtnews.com.  This is in light of the country's
improved liquidity position and declining debt ratios.

The outlook on the 'Caa1' foreign-currency country ceiling for
bonds and on the 'Caa2' foreign-currency country ceiling for
bank deposits was then changed to positive, while Ecuador's
local-currency guideline remains at 'Ba2'.

Moody's said that some factors behind Ecuador's improved
liquidity position and declining debt ratios were:

  -- Greater access to multilateral and market financing;

  -- A build-up in public sector and overall banking system
     deposits; and

  -- Continued growth in remittances from abroad.


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


AES CORP.: S&P Withdraws Units' BB+ Corporate Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday it withdrew its
'BB+' corporate credit ratings on The AES Corp.'s units in El
Salvador.

El Salvador-based electric distribution subsidiaries include
Compania de Alumbrado Electrico de San Salvador S.A. de C.V.,
Empresa Electrica de Oriente S.A. de C.V., and Distribuidora
Electrica de Usulutan S.A. de C.V.

S&P's move followed the payment of the outstanding $103 million
initially purchased by Fortis Bank N.V./S.A. and insured by MBIA
Insurance Corp.  Management confirmed that the notes were
refinanced with $300 million senior guaranteed notes.


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


* JAMAICA: S&P Affirms B Sovereign Credit Ratings
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long- and
short-term sovereign credit ratings on Jamaica.  The outlook
remains stable.

The ratings are supported by the government's ongoing commitment
to fiscal discipline and debt reduction amid external shocks.
The ratings also reflect Jamaica's higher growth prospects,
boosted by the strong inflow of foreign direct investment in the
tourism and mining sectors.  The confidence level of domestic
businesses and international investors remains strong despite
2005's worse-than-expected economic and fiscal performances due
to the government's timely and appropriate policy responses to
adverse external developments.  Transparent dialogue between the
government and market participants regarding economic
performance and policy direction are important ingredients of
Jamaica's stable investment and political environment.

While economic growth may pick up in 2006 and beyond, the
government will be challenged to generate the fiscal surpluses
initially planned for fiscal 2006.  The balanced budget targeted
for fiscal 2005 is also out of reach.  Hence, fiscal 2005,
ending March 31, 2006, is now expected to yield a general
government deficit of 1.6% of GDP, below that targeted but a
significant improvement over the 7% deficit in fiscal 2004. A
1.5% of GDP general government deficit is also expected in
fiscal 2006.

The two-year public sector wage freeze expires in March 2006 and
capital expenditure needs remain high.  Nevertheless, the
government remains committed to fiscal prudence and expects to
support it with a better tax administration, simplification of
the tax system, and restrained capital expenditure where
feasible.

Real GDP growth is expected to rise to 2.5% in 2006, up from an
estimated 1.5% in 2005.  Medium-term growth is expected to hover
at about 2.5% of GDP, based upon significant investment in the
tourism and mining sectors.

The ratings on Jamaica continue to be constrained by the
government's very high, albeit slowly declining, debt burden.
Despite a worse-than-expected fiscal performance, government
debt is projected to decline to 127% of GDP at in fiscal 2005
from 133% one year earlier.

However, improvements in the debt structure have slowed, and
interest-rate-sensitive debt continues to account for almost 50%
of domestic debt.  The share of external and domestic foreign-
currency-linked debt continues to stand at a high 50% of total
debt.  On a positive note, the interest cost burden is subsiding
due to the decline in domestic interest rates.  Interest
payments now consume 43% of general government revenue, down
from 53% in 2004.

The stable outlook balances the expectation of prudent fiscal
policies and promising growth prospects with significant risk
stemming from high government debt and rising fiscal pressures.
The expiration of the public sector wage freeze, significant
infrastructure spending needs, further curtailment of which may
not be socially acceptable, and the preelection period will all
place increasing pressure on the fiscal accounts in 2006.

Standard & Poor's expects that higher economic growth, continued
popular support for the government's stabilization program, and
a disciplined fiscal stance will help alleviate some of these
pressures and keep fiscal accounts in check.  However, if this
scenario does not materialize, the missed fiscal targets in 2006
will likely endanger public support for reform, macroeconomic
stability, and foreign-investor sentiment toward the country,
all of which will harm Jamaica's creditworthiness.


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


AOL LATIN: Wants Court OK to Extend Cicerone's Employment
---------------------------------------------------------
America Online Latin America Inc., asks the U.S. Bankruptcy
Court for the District of Delaware for permission to further
extend its employment and retention of Cicerone Capital LLC as
its financial advisors, nunc pro tunc to Dec. 1, 2005.

On Aug. 8, 2005, the Court authorized the Debtor's employment of
Cicerone Capital as its financial advisors, nunc pro tunc to
June 24, 2005.  The Debtor wants to extend the employment of
Cicerone Capital pursuant to the terms of a Second Extension
Letter dated Dec. 1, 2005.

As reported in the Troubled Company Reporter on Aug. 8, 2005,
Cicerone Capital services include:

      a) assisting the Debtors in identifying the target,
         sectors, region and quantity of business entities and
         assets in Latin America with respect to a potential
         sale of the Debtors, the Non-Debtor Foreign
         Subsidiaries or their respective assets;

      b) advising and assisting the Debtors in analyzing and
         evaluating the business, operations, properties,
         financial condition, major liabilities, prospects and
         potential synergies of the Debtors and any potential
         purchaser;

      c) participating in discussions with the Company's
         directors shareholders, suppliers and investment
         bankers and conduct management interviews, site visits,
         data analysis and due diligence of the Company and any
         potential purchaser;

      d) reviewing the documents related to any potential sale
         of the Debtors, the Non-Debtor Foreign Subsidiaries or
         their espective assets, and prepare a valuation
         analysis of the Debtors and any potential purchaser in
         connection with that potential asset sale; and

     e) providing all other financial advisory services to the
        Debtors in connection with their chapter 11 cases.

Zain A. Manekia, a managing principal at Cicerone Capital,
discloses that under the terms of the Second Letter Agreement,
the Firm will be paid:

   1) a $25,000 monthly advisory fee; and

   2) a success fee in connection with a marketing operations
      coordination agreement into between Aol Brasil, Ltda., a
      wholly-owned subsidiary of the Debtor and Terra Networks
      Brasil S.A.

Cicerone Capital assures the Court that it does not represent
any interest materially adverse to the Debtor and is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.

The Court will convene a hearing at 3:00 p.m., on Feb. 23, 2006,
to consider the Debtor's request.

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.


AOL LATIN: Wants Plan Solicitation Period Extended Until May 20
---------------------------------------------------------------
America Online Latin America Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to extend
until May 20, 2006, the period within which only they can
solicit acceptances for their Joint Plan of Reorganization and
Liquidation from their creditors.

The Debtors filed a Disclosure Statement together with their
Joint Plan on Jan. 17, 2006.

On Jan. 19, 2006, the Debtors asked the Court to approve a
timetable for approval of the Disclosure Statement and
confirmation of the Joint Plan; the form of the solicitation
packages; and uniform balloting and voting procedures.  The
hearing to consider that request is scheduled on Feb. 23, 2006.

The Debtors give the Court three reasons an extension of their
solicitation period is warranted:

   a) it will allow the Debtors to complete the Plan
      solicitation process in a reasoned and well-balanced
      manner without being potentially distracted by alternative
      plans of reorganization being filed and solicited by other
      parties-in-interest;

   b) the requested extension will not harm the Debtors'
      creditors but it will maximize the value of their estates
      and it is in the best interest of the Debtors' estates,
      their creditors and other parties-in-interest; and

   c) the principal stockholders of the Debtors have consented
      to the request for an extension of the exclusive
      solicitation period.

The Court will convene a hearing at 4:00 p.m., on Feb. 23, 2006,
to consider the Debtors' request.

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.


CFE: Fined MXN45,000 for Polluting Laguna del Camaron Lake
----------------------------------------------------------
Mexico's state-owned power company CFE, Comision Federal de
Electricidad, has been fined about MXN45,000 (US$4,280) by the
country's federal attorney for environmental protection aka
Profepa and Mazatlan municipality in Sinaloa for the
construction of a substation that is damaging a protected area,
Business News Americas reports.

According to local press, CFE's permits for the construction has
also been cancelled.  Construction works can restart after the
affected area, Laguna del Camaron, is cleaned up and if the
company would agree not to pollute the lake again.

Business News relates that CFE has allegedly been disposing of
construction materials in the lake, which is near the Mazatlan
aquarium.

Local papers reported that environmental activists have
protested the substation's construction in Laguna del Camaron,
but local authorities had allowed construction because it will
guarantee electricity supply for new housing developments in the
area.

                        *    *    *

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: Can Maintain Existing Insurance Policies
-----------------------------------------------------------
As reported in the Troubled Company Reporter on Feb. 6, 2006,
Musicland Holding Corp. and its debtor-affiliates asked the U.S.
Bankruptcy Court for the Southern District of New York's
permission to pay the financed premiums for the Policies and
make loan payments to AFCO Credit Corporation on account of the
AFCO Premium Financing Agreements.

Further, the Debtors seek the Court's authority to enter into
new PFAs under Section 364(c)(2) of the Bankruptcy Code and the
collateral be the unearned premiums that will be created.

The Debtors maintain numerous insurance policies that provide
coverage for general liability, workers' compensation, directors
and officers liability, umbrella liability, automotive
liability, crime, special risk, fiduciary liability and
property.

Those policies are essential to the preservation of the Debtors'
business, property and assets.  In many cases, coverage is
required by various regulations, laws and contracts that govern
the Debtors' business conduct.

James H.M. Sprayregen, Esq., at Kirkland & Ellis LLP, tells the
Court that the Debtors finance the premiums on some of their
policies pursuant to premium financing agreements.  Accordingly,
the total annual premium for the policies currently financed by
the Debtors is $1,772,964.

The Debtors have four unpaid Premium Financing Agreements with
AFCO Credit Corporation and one with St. Paul Travelers.  AFCO
alleges that it is a secured creditor with regard to the AFCO
PFAs.

Mr. Sprayregen discloses that the total annual premium for the
Policies is $1,772,966.  In June 2005, November 2005, December
2005 and January 2006, the Debtors made down payments totaling
$444,887 and have financed the remaining $1,328,077 pursuant to
the Existing PFAs.

The Existing PFAs presently require monthly installments
totaling $141,074 and bear total finance charges of $20,413 on
the $905,970 total financed amount.

                            *    *    *

At the Debtors' request, the Court approved the motion.

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.  Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  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: Court Approves Abacus as Advisor & Consultant
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved Musicland Holding Corp. and its debtor-affiliates'
request on an interim basis, to employ Abacus Advisors Group LLC
as their advisors and consultants in the sale of certain assets
of the Debtors, nunc pro tunc to the bankruptcy filing.

As reported in the Troubled Company Reporter on Feb. 10, 2006,
Craig G. Wassenaar, Chief Financial Officer of Musicland Holding
Corp., related that the Debtors have selected Abacus Advisors
Group LLC as their consultants in part because of the expertise
of Alan Cohen, the Chairman of Abacus.  Mr. Cohen has extensive
experience and knowledge in retail chain reorganization.  He has
been associated with numerous Chapter 11 reorganizations of
large retailers.

Abacus will:

   -- assist in the preparation of an appropriate information
      package regarding closing stores for distribution to
      potential bidders;

   -- review bid proposals and assistance in negotiations with
      the various parties and, if appropriate, orchestration of
      an auction to ensure recoveries are maximized;

   -- provide observance, if necessary, of physical inventories
      that may be taken; and

   -- monitor the conduct and results of any third party
      selected to liquidate the inventory.

For its services, Musicland will pay Abacus a $250,000 base fee.
In addition, Abacus will be paid a value added fee to be
determined in conjunction with the Company, its lenders and the
creditors committee.  Abacus will also be entitled reimbursement
of its reasonable expenses including attorney's fees.

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.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  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
=================================


* Antigua Promotes T-Bills in Trinidad to Raise EC$151 Million
--------------------------------------------------------------
Representatives of the government of Antigua and Barbuda visited
Monday Trinidad and Tobago in an attempt to raise EC$151 million
through an issue of treasury bills and bonds, the Trinidad
Express reports.

Antigua will be issuing EC$51 million in treasury bills and
EC$100 million in bonds.  The treasury bills will be issued in
three different tranches of EC$17 million each with tenure of up
to 91 days, via a competitive uniform price auction using the
Eastern Caribbean Securities Exchange Primary Market Platform.
The issuance is done in tranches to build investor confidence
and to demonstrate the country's capacity in a short-term
period.

"These are securities that are on the Eastern Caribbean
Securities Market and Government intends to raise these monies
and use the monies to buy out high end debt and use the new
monies for certain infrastructural programmes in Antigua and
Barbuda," according to Antigua and Barbuda's Minister of Finance
and the Economy, Dr. Errol Cord.

The bidding is tentatively set from 9:00 a.m. to 12:00 noon, on
March 15.  The minimum bid amount is EC$5,000 and a maximum
discount rate offered is 6.5% per annum.

The other issues will take place in mid April and May.

The bond issue, which will take place in June, will be for a
period of 10 years.

Antigua's representatives will take their road show to Grenada,
St. Vincent, St. Lucia, Dominica, New York and Toronto within
weeks.

The arranger and dealer of the Bills is ABI Bank Ltd of Antigua,
with the paying agent being the Eastern Caribbean central Bank.


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


COOPERATIVA DE AHORRO: Fitch Withdraws B- Currency Ratings
----------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the 'B-'/Stable long-
term foreign currency ratings assigned to Cooperativa de Ahorro
y Credito FAE aka FAE along with these other ratings:

   -- Support: '5';

   -- National long-term rating: 'BB+(uy)'

Established as a credit cooperative in Uruguay in 1977, FAE
offers financial services, including credit and pension fund
administration, to its members.  FAE reported assets and equity
of US$1.4 million and US$1.1 million, respectively, at end-2004.
Due to its small size, FAE failed to meet higher nominal capital
requirements recently imposed on financial institutions by the
Central Bank of Uruguay aka BCU.  As such, the institution has
requested permission from the BCU to withdraw from the financial
system, which will prevent it from capturing deposits from the
public in the future.


* Uruguay Completes Issuance of US$500 Mil. 8% Bonds Due 2022
-------------------------------------------------------------
Uruguay has completed its US$500 million sovereign debt issue,
the Latin Lawyer reports.  The bonds carry interest rates of 8%
and will mature in 2022.  The offer is an extension of the 2022
global bond issue in November 2005, increasing the total amount
outstanding of the bonds to US$700 million.

According to reports, demand for the bonds reached US$1.64
billion, five times more than the planned issue of US$300
million, prompting the government to increase the size of the
offering.  This increase was listed on the London Stock Exchange
and confirmed on 7 February.

Deutsche Bank Securities and UBS Securities acted as
underwriters for the Republic.  The Bank of New York acted as
trustee, principal paying agent and registrar.

                        *    *    *

Uruguay's foreign currency long-term debt carries Moody's B3
rating, Standard & Poor's B rating and Fitch's B+ rating.


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


CITGO PETROLEUM: Says It Will Cooperate on Oil Program Probe
------------------------------------------------------------
The Associated Press reports that Citgo Petroleum Corporation
pledges cooperation with the U.S. House Energy chairman's
request for documents relating to Venezuela's program that
provides heating oil to poor Americans.

Felix M. Rodriguez, Citgo's president and chief executive
officer, assured in a letter to the committee chairman,
Representative Joe Barton, of the company's compliance, AP
relates.  Mr. Rodriguez said he thinks the requested documents
can be delivered within 30 days.

According to reports, U.S. lawmakers are concerned that the oil
deals are "part of an unfriendly government's increasingly
belligerent and hostile foreign policy" toward the United
States.

Diplomatic relations between Venezuela and the United States
have been strained lately.  Some of President Hugo Chavez's
critics have charged that the oil program is an attempt to
embarrass President George Bush, the AP relates.

Rep. Miller told the AP that the committee was eager to resolve
the oil records inquiry "before President Chavez starts hiding
Citgo's records under his obnoxious, 'don't-mess-with-me-girl'
policy toward the United States."

Former Rep. Joe Kennedy, defended the program, saying Reps.
Barton and Whitfield should acknowledge Venezuela's efforts to
help needy Americans rather than question the political motives
of President Chavez, the AP relates.  Mr. Kennedy heads Boston-
based Citizens Energy Corp., a nonprofit energy agency helping
to deliver the discounted oil in several states.

Citgo has delivered discounted heating oil in Massachusetts, New
York, Maine, Rhode Island, Vermont, Connecticut, Delaware and
the Philadelphia area.

CITGO is owned by PDV America, an indirect, wholly owned
subsidiary of Petroleos de Venezuela S.A., the state-owned oil
company of Venezuela.

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.

                        *    *    *

As reported on Feb. 16, 2006, Standard and Poor's Ratings
Services assigned a 'BB' rating on CITGO Petroleum Corp.

The ratings on CITGO Petroleum Corp. reflect a satisfactory
business risk profile and an aggressive financial risk profile,
limited by the ratings of the company's parent, Petroleos de
Venezuela S.A. aka PDVSA.

CITGO's credit strength as a stand-alone entity is based on the
scale and complexity of its refining operations, which have net
crude processing capacity of 970,000 barrels per day through
three wholly owned fuel refineries, two asphalt refineries, and,
in a nonoperating position, a 41% interest in the Lyondell-CITGO
Refining L.P. joint venture.

The company's throughput places it among the largest refiners in
the U.S.  CITGO gains substantial competitive advantage from its
ability to process large volumes of heavy, sour crude oils,
which trade at sharp discounts to better-quality crude oil, into
high-margin products, and large average unit sizes that
translate into economies of scale.

The refiner's profitability is limited by the concentration of
its operations in the highly competitive Gulf Coast market,
which usually has the lowest margins in the US Geographic
concentration also exposes the company to the risk of regional
disruption, as demonstrated by recent hurricanes.  The credit
effect of interrupted operations at the Lake Charles refinery
was offset somewhat by strong refining margins realized at
CITGO's other facilities.

Standard & Poor's 'BB' rating on CITGO is higher than the 'B+'
corporate credit rating on PDVSA, because of the relative
strength of the refiner's financial profile and the asset
protection afforded to CITGO creditors, if CITGO defaults for
PDVSA-specific reasons, for example, a Venezuela sovereign
default.  Nevertheless, CITGO could be challenged by events
surrounding PDVSA.


PDVSA: Carenero Port Facilities Awarded INEA Certification
----------------------------------------------------------
The National Institute of Aquatic and Insular Spaces has
certified Carenero Port facilities, in accordance with that set
forth in the International Ship and Port Facility Security Code
issued by the International Maritime Organization.  Carenero
Port facilities are owned by Petroleos de Venezuela S.A. aka
PDVSA and used as internal transportation port--coastal sailing,
by the Carenero distribution plant in Miranda.

Jose Luis Hidalgo, the INAE head for vessels protection and port
facilities and lead auditor highlighted works performed by PDVSA
taking as a basis the historical industry background related to
protection and safety, which allowed the corporation to play a
leading role in the ISPS Code implementation at a domestic
level.

"Once more we can evidence the efficiency and quality of the
staff working for PDVSA, which is really admirable and highly
satisfactory for the state.  When auditing port facilities of a
leading company as Petroleos de Venezuela we can verify that it
complies with all requirements and even exceeds standards
regarding maritime security and safety," emphasized Hidalgo.

That is why PDVSA Corporate Management for Loss Control and
Prevention aka PCP makes all necessary efforts through
industrial protection in order to fully comply with IMO
requirements, and obtain the certification backing those
protection and safety procedures the oil industry has in place
both in its vessels and port facilities.

Miguel Gomez, PDVSA Corporate Industrial Protection Manager,
highlighted the attainment meant by obtaining an international
certification and by the fact that PDVSA is the first industry
that has certified its port facilities in Latin America. "This
gives us a view of the significant efforts made to keep
continuity in our operations," stated Gomez.

Likewise, PDVSA goes on in leading the way when certifying its
three coastal sailing ports, Catia La Mar in Vargas, Carenero in
Miranda, and El Guamache in Nueva Esparta, whose certification
has been scheduled for April.

"In this second phase we are certifying coastal sailing ports,
anticipating their inclusion in the ISPS Code, because they
could be receiving ships in international traffic.  Likewise we
are increasing maritime safety and security measures in order to
comply with this Code," stated Osman Gonzalez, corporate lead
for the ISPS Code in PCP.

The oil industry will move towards the ISO-9000 certification in
order to standardize all procedures, guides, and manuals that
will be enabling updating maritime operations on an ongoing
basis and meet stringent regulations set by the International
Maritime Organization, and the Venezuelan National Institute of
Aquatic and Insular Spaces.


* VENEZUELA: Open to Private Investment in Oil Industry
-------------------------------------------------------
President Hugo Chavez is open to the idea of creating a private
Venezuelan oil firm, reports Dow Jones Newswires.  The president
sees the idea as an opportunity to bring more capital to the
country's petroleum industry.

Pres. Chavez revealed to Dow Jones after a meeting with some of
the country's top business leaders late Thursday that he had
informed them that his government is looking for private
investment in the oil industry.

He also stated that he would welcome the participation of more
local businessmen, having worked with major foreign oil
companies in state-owned oil company Petroleos de Venezuela aka
PDVSA.  Foreign firms include Chevron Corp., Russia's Gazprom,
Brazil's Petrobras and China National Petroleum Corp.

Pres. Chavez told Dow Jones that if Venezuelan entrepreneurs
were to form a private oil company, PDVSA would be interested in
forming alliances for projects such as exploring heavy crude
deposits in the Orinoco Belt or extracting natural gas from the
Mariscal Sucre or Rafael Urdaneta gas fields, projects in which
Venezuela has long sought the expertise of foreign companies.

                        *    *    *

As reported by Troubled Company Reporter on Nov. 29, 2005, Fitch
Ratings has 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.


* Analysts Say Latin America's Steel Industry Set to Consolidate
----------------------------------------------------------------
According to Peter Blackburn at Reuters, analysts believe that
Latin America's top three steelmakers, Arcelor SA, Techint and
Gerdau SA, are expected to step up their own acquisitions as a
result of Mittal Steel's aggressive take-over campaign.

Mittal Steel's US$22 billion bid for Arcelor can further
encourage acquisitions in Latin America's fragmented steel,
Reuters states.

"There will be consolidation whether the bid succeeds or fails,"
Catarina Pedrosa, steel analyst at Banif Investment Banking in
Sao Paulo, told Reuters.

Mittal owns a major Mexican steel slabmaking mill at Lazaro
Cardenas and the Point Lisas mini-mill in Trinidad and Tobago,
but is generally seen as underweight in South America, Reuters
relates.

Cristiane Viana, metals analyst at BES Securities in Rio de
Janeiro told Reuters that consolidation will give the global
steel industry greater leverage over iron ore and coal purchase
prices as well as steel selling prices.

Brazil's Companhia Siderurgica Nacional aka CSN, the country's
largest independent steelmaker, is seen as a potential prize,
offering steel making and iron ore assets.  As previously
reported, CSN admitted having talks with Mittal and Arcelor but
no offer has been made yet.

Mittal's interest in CSN would be to increase its market share,
especially in Brazil, Latin America's largest steel producer.
Mittal's other interest in the country includes the available
cheaper labor and high concentration of raw materials,
especially iron ore.  Arcelor, on the other hand, may be keen on
CSN because the acquisition could stop Mittal's growth in the
Brazilian steel market.


                            ***********


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.

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