TCRLA_Public/060306.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

          Monday, March 6, 2006, Vol. 7, Issue 46

                            Headlines

A R G E N T I N A

APROTAX S.A.: Filing of Creditors' Claims Ceases on June 12
DEL MATE: Claims Verification Begins, Ends May 3
ELECTRO - CEMA: Claims Verification Deadline Is April 19
EMPRESA SAN BOSCO: Creditors Must File Proofs of Claim by Apr.17
ENVAPOL S.A.: Submission of Creditors Claims Ends on April 17

FREE DENIM: Trustee Verifies Creditors' Claims Until May 3
MEGAPRESS SRL: Trustee Validates Creditors' Claims Until Apr. 19
METALURGICA SOLUZ: Trustee Starts Verifying Claims Until Apr. 26
ROCCUZZO E HIJOS: End of Claims Verification on March 31
TELECOM ARGENTINA: Fitch Affirms BBB- (arg) Rating on Debts

TELEFONICA DE ARGENTINA: Assesses Shareholding in Telinver S.A.
TRANSPORTE LOS SEIS: Trustee Stops Accepting Claims on April 5
* Argentina Wants Uruguay to Delay Pulp Mills Construction


B O L I V I A

COEUR D'ALENE: Restates Financial Results for First Quarter 2005


B R A Z I L

BANCO BRADESCO: In Talks with AMEX for Possible Purchase
BRASIL TELECOM: Registers R$29.6 Million Net Loss in 2005
CVRD: Makes US$1 Billion Issuance of 10-year Notes
PETROLEO BRASILEIRO: Finds More Oil Reserves in Campos Basin


C A Y M A N   I S L A N D S

BEAR STEARNS: Sets Mar. 22 Deadline for Claims Submission
BIBBY INTERNATIONAL: Shareholders Final Meeting Set for Mar. 5
BRITCAY MANAGEMENT: Shareholders Final Meeting Set for Mar. 8
CABL LIMITED: Sets Final Meeting with the Shareholders
CAPITAL CHOFUGAOKA: Creditors Must Submit Claims by March 9

CHAPMAN ENGINEERS: Shareholders Final Meeting Set for March 7
CITIGROUP ALTERNATIVE: Shareholders Final Meeting Set for Mar. 7
CMEC GE: Shareholders Final Meeting Scheduled for April 7


C O L O M B I A

BANCOLOMBIA: Reports Results for Quarter Ended Dec. 31, 2005


E L   S A L V A D O R

AES CORPORATION: Redeems US$125 Million Notes Due Nov. 1, 2027
* EL SALVADOR: Fitch Affirms BB+ Sovereign Ratings


G U Y A N A

GUYANA: May Import Cement from Venezuela, Awaits Response


J A M A I C A

NCB JAMAICA: Fitch Puts BBB- Rating on US$100M Series 2006-1


M E X I C O

AHMSA: Strike Halts Mine and Steel Mill Operations
EMPRESAS ICA: Could Get 49% Stake in Centro Norte Airport
GRUPO MEXICO: Experiences Walkout Strikes at Refineries
VITRO: Completes Sale of Interest in Quimica M
* Fitch Expects to Rate Mexico's Benchmark Global Bond at BBB


P U E R T O   R I C O

AOL LATIN: Delaware Bankruptcy Court Okays Disclosure Statement
CARIBE INFORMATION: Moody's Assigns B1 Rating on US$165-Mil Loan
CARIBE INFORMATION: S&P Rates Proposed $165 Mil. Facility at B
MUSICLAND HOLDING: Court OKs BMC as Claims Agent on Final Basis
MUSICLAND HOLDING: Court Nods on $368,144 Pay to 94 Employees


U R U G U A Y

* Argentina Wants Uruguay to Delay Pulp Mills Construction


V E N E Z U E L A

CITGO PETROLEUM: Files Notice of Filing Termination with SEC
PDVSA: Citgo to Cease Filing Public Financial Reports in US SEC
* VENEZUELA: Offers Royalty-for-Crude Deal to Oil Firms
* VENEZUELA: Says Firms Can't Declare Orinoco Reserves in Books
*VENEZUELA: S&P Finds Gap in Sovereign and Country Risk Widening

     -  -  -  -  -  -  -  -

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


APROTAX S.A.: Filing of Creditors' Claims Ceases on June 12
-----------------------------------------------------------
The filing of creditors' claims against Aprotax S.A. will end on
June 12, 2006, Argentine daily La Nacion reports.  Claims filed
on a later date will not be entertained.

Aprotax S.A. was declared bankrupt by Buenos Aires' Court No. 3
with the assistance of Clerk No. 5.  The court made the ruling
in favor of the company's creditor, Mr. Benjamin Weisemberg, for
nonpayment of $28,068.36.  The court selected Mr. Jorge Seghezzo
as the company's trustee.

Aprotax S.A. can be reached at:

         Jean Jaures 850
         Buenos Aires, Argentina

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

         Combate de los Pozos 129
         Buenos Aires, Argentina


DEL MATE: Claims Verification Begins, Ends May 3
------------------------------------------------
Ms. Nora Pszemirower, court-appointed trustee, has started
verifying claims against Del Mate S.A.  The verification of the
claims is set to end on May 3, 2006.

La Nacion relates that Buenos Aires' Court No. 14 declared the
company bankrupt in favor of Mr. Horacio Etcheverry, whom the
company has debts amounting to $1,250.

Clerk No. 28 assists the court in this case.

Del Mate S.A. can be reached at:

         Diaz Colodrero 2643
         Buenos Aires, Argentina

Ms. Nora Pszemirower, the trustee, can be reached at:

         Av. Corrientes 1257
         Buenos Aires, Argentina


ELECTRO - CEMA: Claims Verification Deadline Is April 19
--------------------------------------------------------
The verification of creditors' claims for the Electro - Cema
S.R.L. bankruptcy case is set to end on April 19, 2006, states
Infobae.  Mr. Aldo Bassagaisteguy, the court-appointed trustee
tasked with examining the claims, will submit the validation
results as individual reports on June 2, 2006.  He will also
present a general report in court on July 14, 2006.

Infobae adds that a Buenos Aires court handles the case.

Mr. Aldo Bassagaisteguy, the trustee, can be reached at:

         Avda. Roque Saenz Pena 1134
         Buenos Aires, Argentina


EMPRESA SAN BOSCO: Creditors Must File Proofs of Claim by Apr.17
----------------------------------------------------------------
Creditors against Empresa San Bosco S.R.L. are required to
submit proofs of claim by April 17, 2006.  Infobae relates that
the claims will undergo a verification phase.  Claims that are
verified will then be submitted in court as individual reports
on May 31, 2006.

A general report, which will contain the company's audited
business records as well as a summary of events pertaining to
the liquidation, will be presented in court on July 24, 2006.

Empresa San Bosco S.R.L. was declared bankrupt by a Buenos Aires
court.  Accounting firm Estudio Ruggiero, Cordero & Suarez was
appointed as trustee.

Empresa San Bosco S.R.L. can be reached at:

         Larrea 1544
         Lomas del Mirador
         Partido de La Matanza
         Buenos Aires, Argentina

Estudio Ruggiero, Cordero & Suarez, the trustee, can be reached
at:

         San Martin 324
         Moron, Buenos Aires
         Argentina


ENVAPOL S.A.: Submission of Creditors Claims Ends on April 17
-------------------------------------------------------------
Creditors with claims against bankrupt company Envapol S.A. must
present proofs of the company's indebtedness to Marcelo Dborkin,
the court-appointed trustee, on or before April 17, 2006, La
Nacion reports.

Buenos Aires-based Envapol S.A. was declared bankrupt by the
city's Court No. 25, with the assistance of Clerk No. 50.  The
court made the ruling in favor of Muehlstein Argentina S.R.L.,
the company's creditor.

La Nacion relates that Envapol S.A.'s debts amounted to
US$6967.19.

Envapol S.A. can be reached at:

         Viamonte 2506
         Buenos Aires, Argentina

Mr. Marcelo Dborkin, the trustee, can be reached at:

         Callao 295
         Buenos Aires, Buenos Aires


FREE DENIM: Trustee Verifies Creditors' Claims Until May 3
----------------------------------------------------------
Creditors' claims against Free Denim S.A. will be verified until
May 3, 2006.  Court-appointed trustee Pedro Alfredo Valle is
tasked with the verification.

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

The submission of a general report will follow on Aug. 15, 2006.

A Buenos Aires court handles the Free Denim S.A.'s bankruptcy
case.

Mr. Pedro Alfredo Valle, the trustee, can be reached at:

         Avenida de Mayo 1260
         Buenos Aires, Argentina


MEGAPRESS SRL: Trustee Validates Creditors' Claims Until Apr. 19
----------------------------------------------------------------
Mr. Jorge Alvarez, court-appointed trustee, has started
verifying claims against Megapress S.R.L.  Mr. Alvarez will stop
the verification on April 19, 2006.

La Nacion relates that Buenos Aires' Court No. 10 declared the
company's bankruptcy in favor of Ms. Daniela Altamiranda, the
company's creditor.

Clerk No. 19 assists the court in this case.

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

         Echeverria 2040
         Buenos Aires, Argentina

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

         Bme. Mitre 1738
         Buenos Aires


METALURGICA SOLUZ: Trustee Starts Verifying Claims Until Apr. 26
----------------------------------------------------------------
Ms. Ana Bravo, trustee appointed by the Buenos Aires court for
the bankruptcy of Metalurgica Soluz S.A., will no longer
entertain claims that are submitted after April 26, 2006, La
Nacion reports.  Creditors whose claims are not validated will
be disqualified from receiving any payment that the company will
make.

Buenos Aires' Court No. 2 declared the company's bankruptcy when
the company failed to pay about $28,288.33 to Pagari S.A., the
company's creditor.

Clerk No. 3 assists the court on this case.

Metalurgica Soluz S.A. can be reached at:

         Avenida Corrientes 1485
         Buenos Aires, Argentina

Ms. Ana Bravo, the trustee, can be reached at:

         25 de Mayo 596
         Buenos Aires, Argentina


ROCCUZZO E HIJOS: End of Claims Verification on March 31
--------------------------------------------------------
The verification of claims against Roccuzzo e Hijos S.A. is set
to end on March 31, 2006, Infobae reports.  The submission of
the individual reports on the claims will follow on May 16,
2006.

A general report on the case is expected in court on June 29,
2006.

A Santa Fe court approved Roccuzzo e Hijos S.A.'s petition to
reorganize after the company defaulted on its debt payments.
Ms. Hilda Amelida Gontin was appointed as trustee.

An informative assembly, which will mark the end of the
company's reorganization, is scheduled on Oct. 31, 2006.

Roccuzzo e Hijos S.A. can be reached at:

         Lavalle 2554
         Rosario, Santa Fe
         Argentina

Ms. Hilda Amelida Gontin, the trustee, can be reached at:

         San Martin 2098
         Rosario, Santa Fe
         Argentina


TELECOM ARGENTINA: Fitch Affirms BBB- (arg) Rating on Debts
-----------------------------------------------------------
Fitch's Argentine arm confirmed Telecom Argentina SA'S BBB-
(arg) rating.  These are included under the restructuring
proceedings.

The rate applies to the following titles:

   -- Obligaciones negociables Serie A for US$885 million; and
   -- Obligaciones negociables Serie B for US$999 million.

The shares of the company have been included in category 2.

The rate given to the bonds emitted under the restructuring
proceedings show the decrease on the debts of the company, an
improvement on its capital structure and the due dates.

The features of Telecom's credits show the company's strong
position as one of the main operators in the telecommunication
services, its experience in operating in the sector and its good
financial feature associated to maneagable levels of post
restructuring debt.  Nevertheless, there still exist factors
that threatens the future paying capacity of the company,
essentially referred to the regulation on the freezing of the
rates and the difference between a debt registered in dollars
and incomes in pesos.

In relation to the mobile sector, it presents a high competition
with other companies and with strong investments to be done in
order to keep its participation in the market.

With the restructuring of the debt, Telecom has extended the
time for its dues, has decreased its annual financial charges
and has been able to reduce the level of its debt.  On August
31, 2005, Telecom exchanged around US$1.9 billions of new titles
for around US$3.0 billions of debt.

Telecom has also done payments agreed in the agreement known as
"Acuerdo Preventivo Extrajudicial (APE)" and has paid capital
before planned which corresponded to new titles until April 2008
for around US$551 million.

After the exchange and the payment in cash, the financial
feature of Telecom shows a significant improvement, having
reduced the debt to US$ 1.6 billion on Sept. 2005 from US$3.4
billion.

Telecom shows strong indicators of protection of debt for the
assignated category, with a relation debt/Ebitda of less than 3x
and a covering of EBITDA/interests for more than 4.0x.

Plans are that Telecom would not make significant payments of
capital until 2008.  On other hand, the company would have to
make annual payments of interests for around US$150 million,
with investments estimated in around US$200 million.  If this is
so, and considering a generation of funds for between US$600/650
million, Telecom would not have problems in making payments and
continue to reduce the level of its debt.

On Sept. 2005, the company continued to show a recovery on the
level of its incomes, registering a growth of a 26%, compared to
the previous period.  As occurred on the last annual exercise,
this increase was the result of the strong expansion within the
mobile sector (+59% vs Sept.  04).  The latter resulted in a
participation of the 47% of the total market on Sept. 2005.  In
relation to the generation of funds, measured as EBITDA, it
reached on Sept 2005 US$1481 million (vs US$1482 million of
Sept. 2004).

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *    *    *

Telecom Argentina's US$64,128,000 and US$54,124,000 notes due
Oct. 15, 2014, carry Standard & Poor's and Fitch's B- ratings.


TELEFONICA DE ARGENTINA: Assesses Shareholding in Telinver S.A.
---------------------------------------------------------------
Telefonica de Argentina S.A. has assessed a result for the
disposition of its shareholding in Telinver S.A. of
approximately 109 million.

In assessing the sale result, the company has considered the
value of its Telinver S.A. investment -- as of Oct. 31, 2005 --
and other additional costs related to the transaction.  The
company also has differed the recognition of the sale income for
an amount of 49 million until the end of the uncertainty derived
from the turnover contingency mentioned in the statements, and
the fulfillment of the condition that the company would be
likely to receive the economic benefits associated with the
disposition for that amount.

The details of the estimates in connection to the sale of
Telinver S.A.:

                                               Amounts
                                               denominated in
                                               Million Pesos

Sale Price at transaction date exchange rate         197
Tax contingency assurances (Income Deferral)         (49)
Differed active tax effect                            18
Tax-loss use                                       (25)
Telinver long-term investment costs               (29)
Others                                              (3)

Telinver sale result                                 109

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *    *    *

Telecom Argentina's $64,128,000 and $54,124,000 notes due Oct.
15, 2014, carry Standard & Poor's and Fitch's B- ratings.


TRANSPORTE LOS SEIS: Trustee Stops Accepting Claims on April 5
--------------------------------------------------------------
Mr. Carlos Erasmo Moreno, the trustee appointed by the Buenos
Aires court for the bankruptcy of Transporte Los Seis Seis
S.R.L., will no longer accept claims after April 5, 2006,
Infobae reports.

Mr. Moreno will present the validated claims in court as
individual reports on May 8, 2006.  The trustee will also submit
a general report on the case on June 6, 2006.

Mr. Carlos Erasmo Moreno, the trustee, can be reached at:

         Tucuman 1658
         Buenos Aires, Argentina


* Argentina Wants Uruguay to Delay Pulp Mills Construction
----------------------------------------------------------
Argentine President Nestor Kirchner asked Uruguay to suspend for
90 days construction of two paper mills on the river bordering
the two countries to allow for an independent environmental
impact report, Bloomberg relates.

According to Bloomberg, President Kirchner said that Uruguay
violated international treaties by allowing the construction of
the mills without Argentina's approval.  The US$1.6 billion pulp
mill project represents the biggest investment in Uruguay's
history.  The plants are financed by Helsinki-based Metsae-
Botnia Oy, which is building a US$1.1 billion mill along the
river, and Madrid-based Grupo Empresarial Ence SA, which plans
to invest another US$500 million in a second factory.

"I only ask for 90 days so that the best environmentalists of
the world can help us solve this problem," President Kirchner
was quoted by Bloomberg as saying during a joint session of
Congress.  He urged Uruguayan President Tabare Vazquez "to help
find a solution."

Critics of the projects say that the mills would kill fresh-
water dorado and catfish and hurt tourism along the nations'
border.

Argentine provincial and federal authorities and
environmentalist groups state that the pulp mills with their
chlorine bleaching process are highly water and air
contaminating, but Uruguay argues both mills comply with the
latest and most stringent European Union regulations regarding
conservation of natural resources.

Bloomberg relates that Uruguay's government expects the project
will employ 4,000 laborers during construction and create more
than 600 permanent and 3,000 indirect jobs.  Botnia's investment
will expand Uruguay's $12.5 billion economy by 1.6%, according
to a statement on the company's web site.

                        *    *    *

Fitch Ratings assigns these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B       Jun.  3, 2005
   Long Term IDR       RD      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B-      Jun.  3, 2005

                        *    *    *

Fitch Ratings assigns these ratings on Uruguay:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB-      Mar. 7, 2005
   Long Term IDR       B+      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB-      Mar. 7, 2005


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


COEUR D'ALENE: Restates Financial Results for First Quarter 2005
----------------------------------------------------------------
Coeur d'Alene Mines Corporation, in advance of the expected
release of 2005 financial results on or before March 16, 2006,
Thursday reported a restatement of its financial results for the
first quarter of 2005.  As a result of that adjustment, the net
loss from continuing operations for the quarter ended March 31,
2005, should be reduced from $1,770,000, or $0.01 per share, to
$1,145,000, or $0.00 per share.

The restatement involves the company's inadvertent under-
reporting of the quantity of ore tons delivered to the
Rochester, Nevada, leach pad during the first quarter of 2005.
In particular, the quarter-ended inventory was understated and
production costs applicable to sales were overstated.  The
restatement has the effect of reducing the company's reported
net loss for that period by approximately $625,000.

Restated financial data for the quarter ended March 31, 2005,
will be included in the appropriate footnote to the company's
financial statements for the year ended Dec. 31, 2005, which
will be filed by the company with the Securities and Exchange
Commission on or before March 16, 2006.

On Feb. 24, 2006, management of Coeur d'Alene determined that a
filing on Form 8-K should be made to disclose that as a result
of the company's inadvertent under-reporting of the quantity of
ore tons delivered to the Rochester Leach Pad for financial
reporting purposes for the quarter ended March 31, 2005, the
quarter-ended inventory was understated, production costs
applicable to sales were overstated and the net loss for the
quarter was overstated by approximately $625,000.

As a result of that adjustment, the net loss from continuing
operations for the quarter ended March 31, 2005, has been
reduced from $1,770,000, or $0.01 per share, to $1,145,000, or
$0.00 per share.

Accordingly, the interim financial statements previously set
forth in the company's quarterly report on Form 10-Q for the
quarter ended March 31, 2005, should no longer be relied upon.

Restated financial data for the quarter ended March 31,2005,
will be included in the appropriate footnote to the company's
financial statements for the year ended Dec. 31, 2005, which is
required to be filed by the company with the commission on or
before March 16, 2006.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer and a growing gold producer.  The Company has
mining interests in Alaska, Argentina, Australia, Bolivia,
Chile, Nevada, and Idaho.

                        *    *    *

Coeur d'Alene Mines Corporation's $180 Million notes due Jan.
15, 2024 carry Standard & Poors' B- rating.


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

BANCO BRADESCO: In Talks with AMEX for Possible Purchase
--------------------------------------------------------
Banco Bradesco S.A. -- Brazil's largest private bank -- is in
talks with US financial services firm American Express aka AMEX
for the purchase of the latter's Brazil credit card operations,
business daily Valor Economico reports.

Valor states that Bradesco has a priority in the possible
purchase, which is being coordinated by Goldman Sachs.  However,
there are other banks also interested.

Dow Jones relates that in Brazil, AMEX has a market share of
only 2% in terms of the number of cards.  In terms of revenues,
however, its market share represents 10%.

Bradesco itself has a total of eight million cards, Dow Jones
reports.

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

                        *    *    *

As reported by Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.


BRASIL TELECOM: Registers R$29.6 Million Net Loss in 2005
---------------------------------------------------------
Brasil Telecom Participacoes SA reported a R$29.6 million net
loss in 2005, compared to a R$252.2 million profit in 2004.

In the fourth quarter of 2005, the company posted a R$118
million loss.

Brasil Telecom said in a prepared statement that the loss was
largely due to extraordinary adjustments made last year and to
mobile carrier Brasil Telecom GSM, which started to operate in
the final quarter of 2004 and "has not achieved full operating
maturity yet."

Ebitda totaled R$2.70 billion in 2005, 24% less than the R$3.56
billion recorded in 2004.  The Ebitda margin was 26.7% in 2005
against 39.3% in 2004.  The company's investments in 2005
totaled R$1.97 billion, 31% less compared to 2004, due to the
construction of a mobile network and to acquisitions made in
2004.

                        *    *    *

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.


CVRD: Makes US$1 Billion Issuance of 10-year Notes
--------------------------------------------------
Brazil's Companhia Vale do Rio Doce aka CVRD made a US$1 billion
issuance of 10-year notes, Latinlawyer Online reports.
Completed on Jan. 10, 2006, the issuance is the largest ever
Brazilian securities offering for a private issuer.

According to Latinlawyer, the notes -- which mature in January
2016 -- bear a 6.25% coupon payable semi-annually at a price of
99.97% of the principal amount.

The issuance was two and a half times oversubscribed, relates
Latinlawyer.  It carries the lowest spread over US treasuries
ever paid for a 10-year Brazilian debt issuance.  This shows a
re-rating of CVRD's risk by the global bond markets.  Standard &
Poor's has assigned a 'BBB' rating on the notes, while Moody's
Ratings Services gave them 'Baa3'.

Latinlawyer states that the notes are unsecured and
unsubordinated obligations of CVRD's wholly owned subsidiary
Vale Overseas, and are fully guaranteed by the company.

The money raised, says Latinlawyer, will be used for general
corporate goals, such as payment for a tender offer on Vale
Overseas' US$300 million 9% guaranteed notes that will due in
2013.  The concurrent tender offer was launched by the company
on Jan. 3, 2006.

Kevin W. Kelley of Gibson, Dunn & Crutcher LLP said to
Latinlawyer, "In conjunction with CVRD's concurrent debt tender
offer, this deal was executed during a very tight time frame
during the first weeks of this year."

Kelly added that the entry into force of the US Securities
Reform Act in December 2005 added to the excitement of the deal.

CVRD was particularly pleased with the investors' appetite for
its offering, states Latinlawyer.

The in-house counsel to CVRD -- Clovis Torres -- found the
issuance a breakthrough for the company in terms of the hig
market demand.  "Our counsel and the underwriter's counsel did a
terrific job reaching a common goal," Torres told Latinlawyer.

Torres also praised the auditors for being well prepared.
Otherwise, the growing market scrutiny over their activities
could have jeopardized matters, Latinlawyer reports.

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'.


PETROLEO BRASILEIRO: Finds More Oil Reserves in Campos Basin
------------------------------------------------------------
Petroleo Brasileiro aka Petrobras found oil reservoirs at
Brazil's Campos Basin, Dow Jones Newswires reports.  The
reserves, the company said, will increase its reserves but it
can't say yet by how much.

"We have achieved some good results, but haven't evaluated the
amount of oil yet," Hugo Repsold, corporate general manager for
exploration and production, said during a conference call.  "But
"we will develop these new reserves in the future."

In December 2005, Petrobras confirmed the discovery of a new oil
accumulation in the Marlim Leste field in the Campos Basin at a
depth of 4,200 meters.  Current production in the basin is at
depths of approximately 3,000 meters, Dow Jones says.

Petrobras plans to drill another well in the area this year, and
one or two next year, to determine the size of reserves, Dow
Jones says.  In 2005, Petrobras drilled a total of 40
exploration wells, with a success factor close to 20%.

                        *    *    *

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: Sets Mar. 22 Deadline for Claims Submission
---------------------------------------------------------
Bear Stearns Global Equity Arbitrage Fund Offshore, Ltd.'s
creditors are required to submit particulars of their debts or
claims on or before March 22, 2006, to the company's appointed
liquidator, Mr. M. David Makin, at CFS Liquidators Ltd.

Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.

Bear Stearns Global Equity Arbitrage Fund Offshore, Ltd.,
started liquidating assets on January 26, 2006.

Mr. Makin can be reached at:

            CFS Liquidators Ltd.
            c/o Windward 1
            Regatta Office Park, West Bay Road
            P.O. Box 31106 SMB
            Grand Cayman, Cayman Islands


BIBBY INTERNATIONAL: Shareholders Final Meeting Set for Mar. 5
--------------------------------------------------------------
Shareholders of Bibby International Services Limited will
convene at the company's registered office on March 5, 2006, for
a final meeting.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.

Mr. Martyn Howard can be reached at:

           10 Mountain View
           Ballaugh, Isle of Man, IM7 5EW


BRITCAY MANAGEMENT: Shareholders Final Meeting Set for Mar. 8
-------------------------------------------------------------
Shareholders of Britcay Management Ltd. will convene for a final
meeting at 9:00 a.m. on Mar. 8 at the company's registered
office at:

         36A Dr. Roy's Drive
         Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.

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

Mr. Moore can be reached at:

         Stuarts Walker Hersant
         P.O. Box 2510 George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 949 3344
         Facsimile: (345) 949 2888


CABL LIMITED: Sets Final Meeting with the Shareholders
---------------------------------------------------------------
Shareholders of CABL Limited will have a final meeting at 10:00
a.m. on Mar. 6, 2006, at the offices of:

       BNP Paribas Private Bank & Trust Cayman Limited
       3rd Floor Royal Bank House
       Shedden Road, George Town
       Grand Cayman, on March 6, 2006

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.

Ms. Ellen J. Christian can be reached at:

Piccadilly Cayman Limited
3rd Floor Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
Telephone: 345 945 9208
Fax: 345 945 9210


CAPITAL CHOFUGAOKA: Creditors Must Submit Claims by March 9
-----------------------------------------------------------
Creditors of Capital Chofugaoka Co., Ltd., are given until March
9, 2006, to submit claims to Ms. Wendy Ebanks and Mr. Jon Roney,
the company liquidators.  Creditors must send full particulars
of their debts or claims by the said date or be excluded from
the benefit of any distribution that the company will make.

Capital Chofugaoka Co., Ltd., started liquidating assets on Jan.
16, 2006.

Ms. Wendy Ebanks and Mr. Jon Roney, the joint voluntary

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


CHAPMAN ENGINEERS: Shareholders Final Meeting Set for March 7
-------------------------------------------------------------
Shareholders of Chapman Engineers International, Inc., are
invited to attend an extraordinary final meeting at the
registered office of the company on March 7, 2006.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.

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

The company's liquidator can be reached at:

           Commerce Corporate Services Limited
           P.O. Box 694 George Town
           Grand Cayman, Cayman Islands
           Telephone: 949 8666
           Facsimile: 949 7904


CITIGROUP ALTERNATIVE: Shareholders Final Meeting Set for Mar. 7
----------------------------------------------------------------
Shareholders of Citigroup Alternative Investments Libra
Strategies Ltd. will convene at the company's registered office
on March 7, 2006 at 12:00 p.m. for a final meeting.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.

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

John Cullinane and Derrie Boggess, the company's liquidators can
be reached at:

           c/o Walkers SPV Limited
           Walker House, P.O. Box 908 George Town
           Grand Cayman, Cayman Islands


CMEC GE: Shareholders Final Meeting Scheduled for April 7
---------------------------------------------------------
CMEC GE Capital China Industrial Holdings Limited will convene
at the company's registered office on April 7, 2006, at 10:00
a.m. (Hong Kong time) for a final meeting.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.

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

Mr. John R. Lees, the company's voluntary liquidator can be
reached at:

            John Lees & Associates Limited
            1904 Hong Kong Club Building
            3A Chater Road Central, Hong Kong
            Telephone: + 852 2842 5009
            Facsimile: + 852 2526 0771


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


BANCOLOMBIA: Reports Results for Quarter Ended Dec. 31, 2005
------------------------------------------------------------
Bancolombia S.A. (NYSE: CIB) announced financial results for the
quarter ended December 31, 2005.

The report contains pro forma figures for the fourth quarter of
2004 and for the period ended December 31, 2004, as if the spin-
off of Corfinsura and the merger with Conavi and Corfinsura
(after the spin-off) had taken place on those dates, for the
purpose of comparison.

Net income for the year totaled Ps 946.9 billion, increasing
18.2% as compared to Ps 801.1 billion pro forma for 2004.
During the fourth quarter, net income amounted to Ps 256.6
billion, which represents a 1.9% increase compared to the same
period of 2004 pro forma.

As of December 31, 2005, Bancolombia's net loans totaled Ps
17,920 billion, increasing 3.9% compared to Ps 17,246 billion in
the previous quarter.  On a year-to-year basis, this represents
an increase of 14.8% from Ps 15,611 billion pro forma at
December 31, 2004. On the other hand, investment debt securities
amounted to Ps 8,265 billion, increasing 7.8% over the year
compared to pro forma figures.

During 2005, net interest income amounted to Ps 2,049.8 billion,
increasing 13.7% compared to 2004 pro forma. However, net
interest income for the fourth quarter 2005 was stable compared
to the same period of 2004.  Similarly, net interest margin was
very stable resulting in a margin of 7.89% during 2005, compared
to 7.86% during 2004 pro forma.

Net fees and income from services for 2005 totaled Ps 768.3
billion, which represents an increase of 22.1% compared to the
pro forma figure for 2004.  During the fourth quarter of 2005,
they amounted to Ps 212.8 billion, up 26.7% compared to the
fourth quarter of 2004 pro forma.

Bancolombia's ratio of past due loans to total loans at December
31, 2005, was 2.4% and the ratio of allowances to past due loans
was 158%.

As the Bank announced on January 2, 2006, its subsidiary Colcorp
sold its position in Abonos Colombianos S.A. -- Abocol S.A, to
V. International Ventures Inc.  As a result of the transaction,
there are non-recurrent changes in income and expenses
throughout the fourth quarter results.

Bancolombia experienced non-recurrent provisions due to changes
in the provisioning regulation.

Bancolombia is part of Grupo Empresarial Antioqueno, a Medellin-
based industrial group of more than 100 companies.

                        *    *    *

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


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

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


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


AES CORPORATION: Redeems US$125 Million Notes Due Nov. 1, 2027
--------------------------------------------------------------
AES Corporation redeems its 8.875% US$125 million notes due Nov.
1, 2027, via the company's call option, Bloomberg News reports.

The notes' redemption price has been lowered to 131.77% to
130.83%.

AES Corporation -- http://www.aes.com/-- is a leading global
power company, with 2004 revenues of $9.5 billion.  The Company
operates in South America, Europe, Africa, Asia and the
Caribbean countries.  AES generating 44,000 megawatts of
electricity through 124 power facilities and delivers
electricity through 15 distribution companies.  AES Corp.'s
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 11, 2006,
Moody's affirmed the ratings of The AES Corporation, including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  The rating outlook remains stable.

As reported in the Troubled Company Reporter on June 23, 2005,
Fitch Ratings upgraded and removed the ratings of AES
Corporation from Rating Watch Positive, where it was initially
placed on Jan. 18, 2005, pending review of the company's year-
end financial results.  Fitch said the Rating Outlook is Stable.


* EL SALVADOR: Fitch Affirms BB+ Sovereign Ratings
--------------------------------------------------
Fitch Ratings affirmed El Salvador's Foreign and Local Currency
Default Issuer Ratings at 'BB+'.  The Rating Outlook is Stable.
El Salvador's ratings are supported by its macroeconomic
stability, its relatively low public sector debt burden, and its
good record for structural reforms.  El Salvador's ratings are
constrained by the country's weak social indicators, its fiscal
deficits, which are relatively high for a dollarized economy,
and the slow growth rate of recent years.

President Saca remains highly popular and has made use of this
to pass a tax-enhancing package and a modest pension reform.
Public finances have remained stable thanks to the
administration's commitment to reducing fiscal imbalances. Last
year's tax package increased revenues by 1% of GDP (in line with
expectations) even though tax rates were not increased.  In
2005, the non-financial public sector deficit reached 3% of GDP,
of which 2% of GDP corresponded to pension reform costs.  In
Fitch's view, the country needs to lower its fiscal deficit to
increase the scope for counter-cyclical fiscal policies because,
as a dollarized economy, fiscal policy is its only means of
making adjustments to cope with external or domestic shocks.
Similarly, El Salvador's government debt-to-GDP ratio, at 40%,
is not unduly large compared with those of its peers, and is
lower than the 'BB' median of 45%.  However, Fitch believes the
government's debt burden needs to be on a solid downward
trajectory in order to increase its fiscal flexibility.  An
increase in the government's primary surplus and higher GDP
growth would secure such an outcome.  Currently, the Saca
administration appears reluctant to raise tax rates further and
is more inclined to increase revenue collection by fighting tax
evasion.  Fitch believes the authorities should be prepared to
take additional action on taxes if administrative measures fail
to yield the desired results.  This is underscored by the fact
that the tax base is still quite low, at 13% of GDP, while
development needs are large.

On the positive side, the government's financing needs continue
to decline and are now in line with those of its rating peers.
In 2005, they fell to 6.5% of GDP, and we estimate that they
will decline to 5.6% in 2006.  The government has reduced its
reliance on short-term instruments (Letes) to finance its
deficits, further reducing refinancing risks.  The government
has also started to diminish its reliance on the international
capital markets by diversifying its sources of funding,
including accessing the local markets and borrowing from the
multilaterals.

Fitch's concerns regarding El Salvador include its relatively
poor rate of both GDP and export growth.  Moreover, the agency
believes the Salvadoran banking system needs to become stronger
because of the dollarization of the economy, as there is no
lender of last resort. Finally, in contrast to the situation a
few years ago, El Salvador's external debt ratios are now above
the 'BB' median.  El Salvador's debt ratios have increased
because current external receipts have grown only moderately, in
part because of the decline in maquila exports, and both public
and private sector external debt has increased.

Even though El Salvador has one of the best records for
structural reforms in Central America -- including trade
liberalization, privatization and pension reform -- the
country's GDP growth rate averaged less than 2% in the last five
years.  Although GDP growth increased to 2.8% last year, it is
quite low compared to El Salvador's rating peers.  Growth
remains weak for numerous reasons, including low savings and
investment rates, relatively weak business climate indicators
due especially to high crime rates, which reduce the
attractiveness of the country to foreign direct investment while
increasing business costs.  However, since the Saca
administration has devised strategies to address the challenge
of sluggish growth, Fitch expects the Salvadoran economy to grow
at an average rate of just over 3% in the coming two years.  The
drivers for this growth should be the implementation of CAFTA,
together with greater private and public investment in
infrastructure, and the tourism and maquila sectors.


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


GUYANA: May Import Cement from Venezuela, Awaits Response
---------------------------------------------------------
The government of Guyana is awaiting a response from Venezuela
regarding the import of the cement from the latter, the Guyana
Chronicle Online reports.

Due to shortage, Guyana is considering the possibility of
getting cement from Venezuela after announcing that it was
looking for an alternative cement supplier to ease the shortage
in construction industry and other areas, relates the Guyana
Chronicle.

Manzoor Nadir, Tourism, Industry and Commerce Minister, told
Government Information Agency aka GINA that President Bharrat
Jagdeo has been in consultation with Venezuela to satisfy the
demand for cement.  Nadir revealed that the government is now
awaiting a response.

Nadir also told GINA the government's decision to open the
market to extra-regional cement by waiving the Common External
Tariff aka CET.

Nadir revealed to GINA that there was a high demand for cement
after January's inclement weather that delayed many construction
projects.

GINA relates that the minister said the regional supplier --
Trinidad Cement Limited aka TCL -- has not been supplying cement
in regular quantities, noting that importers of the TCL product
only had 20 to 30% of their orders filled.

Nadir believed the supply is necessary for the stabilization of
the market and elimination of price scraping which is being
experienced in certain parts of the country, states GINA.

Small shipments of cement, according to Nadir, began trickling
back into the country, which has a shortage of 30,000 tonnes,
representing a backlog of about two months, compounded by a
number of factors.

Nadir said, "We know for the entire week about 8,000 tonnes
should be coming in the country but everyone I suspect would
have a backup of orders.  Eight thousand tonnes would only
satisfy a quarter of the current demand for the critical
building material."

The Guyana Chronicle states that Nadir said Guyana's demand for
cement will remain high due to the recent boom in the
construction industry.  He revealed that there is a very strong
demand for the Skeldon project, the Cricket World Cup stadium,
hotels, housing construction, roads and other infrastructural
development.

According to the Guyana Chronicle, Nadir said that it is hoped
that cement importers would take advantage of the waiver on
extra regional cement.  He told GINA that cement importers who
have been looking up extra regional sources of cement are being
encourages to find a way on bringing in cement to ensure that
consumers in the country can have a regular supply at a decent
price.

Nadir said the situation is being closely monitored, the Guyana
Chronicle reports.


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


NCB JAMAICA: Fitch Puts BBB- Rating on US$100M Series 2006-1
------------------------------------------------------------
Fitch Ratings has assigned a preliminary 'BBB-' issuer default
rating to the Jamaican Diversified Payment Rights Company and a
'BBB-' Issue Rating specific to the $100 million series 2006-1
notes.

The issuance is a securitization of existing and future U.S.
dollar-denominated diversified payment rights (DPRs) originated
by National Commercial Bank Jamaica Limited in Jamaica.  The IDR
reflects the structural mitigants to several sovereign and bank
risks associated with Jamaica and NCB, allowing the rating of
the securitization to reach 'BBB-'.  The rating also reflects
the strength of NCB's DPR flows and the legal structure of the
transaction.

The timely payment of interest and principal on the series 2006-
1 notes will be supported by the bank's international remittance
operations. The transfer of these DPRs will be structured as a
'true sale' pursuant to an origination agreement and deed of
transfer between the bank and the special purpose company
covering existing and future U.S. dollar denominated DPRs
originated or acquired by NCB.  Under an indenture, the SPCs
primary assets will include all of the DPRs and the various
collection accounts created for the transaction.

The transaction will be supported by a true sale structure and
should have cash flow coverage levels of more than 30 times,
based on the recent volume of flows.  The collateral is broadly
defined to capture all dollar flows received by the bank from
the United States.  More than 90% of DPRs flow through five
correspondent banks that at closing will have signed notice and
acknowledgement agreements irrevocably obligating them to pay
remittances through the offshore accounts controlled by the
indenture trustee.

In February 2006, Fitch assigned these ratings to NCB:

   -- Long-term foreign currency 'B+ (Stable Outlook);
   -- Short-term foreign currency 'B';
   -- Long-term local currency 'B+' (Stable Outlook);
   -- Short-term local currency 'B';
   -- Individual 'D';
   -- Support '4'.

NCB's ratings are based on its prominent position within
Jamaica's banking system, its strong domestic franchise,
adequate profitability, and capital levels and improving asset
quality.  The ratings are constrained by the operating
environment in Jamaica, high exposure to the sovereign, a lack
of diversified revenue sources, and its large government debt
holdings.  NCB is the second largest Jamaican bank, with market
shares of loans and deposits of 29.1% and 35.1% respectively, at
end-Sept 2005.  For a more detailed analysis of NCB, please
refer to the full-rating report dated Feb. 10, 2006, and
available on the Fitch Ratings web site at
http://www.fitchratings.com/


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


AHMSA: Strike Halts Mine and Steel Mill Operations
--------------------------------------------------
Work in the AHMSA's mines and steel mills ceased due to strikes
launched by Mexican miners and metalworkers, reports EFE.

Members of a union claiming to represent about 270,000 of the
country's miners and metalworkers have launched strikes against
several major firms, including AHMSA, to protest violations of
the collective-bargaining agreement, states EFE.

A union official told EFE that workers have walked off the job
at the Sonora, Coahuila, San Luis Potosi and Zacatecas
facilities.

The strikes are directed against AHMSA, Grupo Mexico and
Industrias Penoles, according to the official.

EFE relates that the strikes followed the Coahuila coal mine
explosion -- which caused the death of 65 miners -- and the
federal Labor Ministry's decision not to recognize the union's
leader -- Napoleon Gomez Urrutia -- as the representative of
workers in the mining and steel sector.

Nestor de Buen -- the union's legal adviser -- told EFE that the
government had no business designating Elias Morales over Gomez,
the fact that only the workers can choose their representatives.

The union said that the chief demand of about 1,500 workers
taking part in the strikes is for an improvement in mine safety,
states EFE.

EFE recalls that the miners union made earlier demonstrations at
two mines owned by a Grupo Mexico subsidiary before embarking on
the broader job action.

AHMSA warned that the company's results will be hurt to the
extent that the stoppage continues, states EFE.

Labor Minister Francisco Salazar told reporters the strike is
illegal.

Altos Hornos de Mexico, S.A. de C.V. or AHMSA is an integrated
steel producer in Mexico.  The Company manufactures and markets
flat steel products such as hot and cold rolled coil and
tinplate.  AHMSA also produces heavy and light structural
sections, wire rods, and reinforcing bars.  The Company serves
the manufacturing, construction, petroleum, packaging and home
appliance industries.


EMPRESAS ICA: Could Get 49% Stake in Centro Norte Airport
---------------------------------------------------------
The Mexican government is studying an offer by Mexican
construction company Empresas ICA for the 49% stake in airport
operator Grupo Aeroportuario Centro Norte, Reuters reports.

Senior official Rodolfo Salgado told Reuters that the government
will sell the stake before December.

Reuters states that ICA, which already controls the other 51% in
Centro Norte, has the right to bid first for the rest of Centro
Norte, the operator of 13 airports in Monterrey as well as in
the resort of Acapulco.

According to Reuters, Salgado said the government can however
reject the offer if it is seen as too low or has technical
problems.

"The other option that exists is to sell the remaining shares,
the 49%, on stock markets," Salgado told Reuters.

Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.

Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 14, 2005,
the ratings (B/Stable/) assigned to ICA took into consideration
the company's position as the largest engineering, construction,
and procurement concern in Mexico.


GRUPO MEXICO: Experiences Walkout Strikes at Refineries
-------------------------------------------------------
Grupo Mexico S.A. de C.V. experienced walkouts at a zinc
refinery in San Luis Potosi and a zinc mine in Zacatecas, EFE
reports.  The company and other major firms are facing strikes
launched by members of a union claiming to represent 270,000
Mexican miners and metalworkers to protest violations of the
collective-bargaining agreement.

The strikes are directed against Grupo Mexico, AHMSA and
Industrias Penoles, a union official informed EFE.

EFE relates that the strikes followed the Coahuila coal mine
explosion, which caused the death of 65 miners, and the federal
Labor Ministry's decision not to recognize the union's leader --
Napoleon Gomez Urrutia -- as the representative of workers in
the mining and steel sector.

Nestor de Buen, the union's legal adviser, told EFE that the
government had no business designating Elias Morales over Gomez,
the fact that only the workers can choose their representatives.

The union said that the chief demand of about 1,500 workers
taking part in the strikes is for an improvement in mine safety,
states EFE.

EFE recalls that the miners union made earlier demonstrations at
two mines owned by a Grupo Mexico subsidiary before embarking on
the broader job action.

Labor Minister Francisco Salazar, however, told reporters that
the strike is illegal.

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 third 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.


VITRO: Completes Sale of Interest in Quimica M
----------------------------------------------
Vitro, S.A. de C.V., announced Thursday that its subsidiary
Vitro Plan, S.A. de C.V., has completed the sale of its 51%
interest in Quimica M, S.A. de C.V., to Solutia, Inc., for US$20
million in cash.  Solutia is now the sole owner of this Mexican
operation, which was formed in 1995.

Quimica M was a joint venture between these two companies
located in the vicinity of the city of Puebla in Mexico, with
Solutia previously currently owning 49 percent of the shares.

With annual sales in 2005 of US$54 million, Quimica M is
dedicated to producing PVB interlayer, which is used by major
glass producers such as Vitro to make laminated glass for use in
automobiles and buildings.

"We are very pleased to complete this transaction with Solutia
our long standing partner since 1995. This sale meets two
important corporate goals: first, it allows us to devote the
company's resources and energy to maintain and develop our flat
glass and containers businesses throughout the world, and
secondly, it provides us with the capital to strengthen our
financial position," said Federico Sada, Vitro's Chief Executive
Officer.


* Fitch Expects to Rate Mexico's Benchmark Global Bond at BBB
-------------------------------------------------------------
Fitch Ratings expects to assign a 'BBB' rating to Mexico's soon
to be issued benchmark global bond denominated in U.S. dollars.
The issue size is not to exceed US$5 billion and the funds will
be used to buyback a similar amount of outstanding bonds that
are eligible for buyback by the Mexican government.  Mexico has
offered to repurchase bonds from 25 separate issues with
maturities ranging from 2007 to 2033.  The operation is in line
with the steady liability management that the Mexican government
has pursued over the past few years.  This transaction is
designed to improve the efficiency of the government's yield
curve and diversify its investor base.  The new bond will serve
as an important benchmark for Mexico and will also enjoy a
higher liquidity.

In December 2005, Fitch upgraded Mexico's foreign currency
issuer default rating to 'BBB'.  Mexico's rating reflects the
consolidation of macroeconomic stability in the country, the
continued improvement in its external accounts and international
liquidity, and a further decline in its external debt burden.
These factors make Mexico more resilient to external shocks.
The country's current account deficit is lower than the 'BBB'
median and is fully covered by foreign direct investment.
Thanks to the government's prudent liability management, the
refinancing of external debt in local markets by the private
sector, as well as strong growth in current external receipts
over the past two years, Mexico's external debt ratios have
improved and are in line with that of the 'BBB' median.  Fitch
also expects net public sector external debt to decline steadily
in 2006 and 2007 on the back of prudent liability management
efforts of the federal government and greater local financing of
Pemex's PIDIREGAS projects.

Overall economic policy management remains a relative strength
for Mexico.  The central bank's credibility has improved further
as it was able to meet its inflation target last year after
missing it in 2004. Mexico's consistent compliance with fiscal
targets, combined with its lower inflation rate has reinforced
investor confidence in the country. Consequently, the government
has been able to fully finance its fiscal deficit in the
domestic markets and extend the average maturity of its domestic
debt.  Owing to asset and liability management efforts, Fitch
believes that the federal government's foreign currency
denominated debt is likely to decline further over the next two
years, thereby reducing the vulnerability of its debt to foreign
exchange movements.

Mexico's ratings are constrained by structural weaknesses in
public finances, such as a heavy dependence on oil revenue and a
low tax intake.  While the government has built some resources
in the Oil Stabilization Fund, the build-up has been less than
that of some of Mexico's rating peers.  A revenue-enhancing
reform will be required to cope with medium-term pressures
emanating from higher pension costs and PIDIREGAS debt service
and lower non-recurrent revenues.  However, the current high oil
price environment accords some additional flexibility to the
Mexican government.  Finally, Mexico needs to implement
structural reforms in the areas of energy and labor sectors to
improve its competitiveness, growth potential, and the
flexibility of its factor markets.


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


AOL LATIN: Delaware Bankruptcy Court Okays Disclosure Statement
---------------------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware approved America Online Latin America,
Inc., and its debtor-affiliates' Disclosure Statement explaining
their Joint Plan of Reorganization and Liquidation.

Judge Walrath determined that the Disclosure Statement contained
adequate information -- the right amount of the right kind of
information for the creditors to make an informed decision about
the Plan -- as required under Section 1125 of the Bankruptcy
Code

The Debtors can now solicit acceptances for the Plan.

                      Overview of the Plan

The proposed Plan pays in full all unaffiliated general
unsecured creditors who vote to accept the Plan and do not opt
out of a general release.  The Plan provides no distribution for
equity interests.

Other salient terms of the Plan include:

    (i) America Online Latin will be converted to a limited
        liability company and continue to exist as America
        Online Latin America, Inc., LLC;

   (ii) AOL Latin America Management LLC, AOL Puerto Rico
        Management Services, Inc., and America Online Caribbean
        Basin, Inc., will be dissolved on the effective date of
        the Plan; and

  (iii) a Liquidating LLC will be established and will hold
        Reorganized America Online Latin America, Inc., LLC, and
        certain of the Debtors' remaining assets.

                       Treatment of Claims

Under the Plan, priority claims will be paid in full and in
cash.

Holders of secured claims will receive either:

    (1) the assets on which the holder has a lien on, or
    (2) proceeds from the sale of those assets.

Holders of TW Party claims will receive:

    (a) certain assets related to AOL Puerto Rico valued at
        $15 million, and

    (b) either of these two treatments at the election of the
        Debtors:

         * LLC Option: The TW Parties will receive all the
           membership interests in the Liquidating LLC other
           than the interests that will go to general unsecured
           creditors, or

         * Cash Option: The TW Parties will receive all the
           membership interests in the Liquidating LLC. Cash
           will be set aside in a separate fund for general
           unsecured creditors.

Time Warner will turn over to the Cisneros Group Parties 40% of
their membership interest in the Liquidating LLC, subject to an
adjustment based on:

    (a) the value of AOL Puerto Rico assets transferred to the
        TW parties,

    (b) the value of certain general unsecured claims of AOL,
        and

    (c) payment of all general unsecured creditors.

General Unsecured Creditors will receive one of the two
treatments at the election of the Debtors:

    (1) LLC Option: General Unsecured Creditors will receive
        interest in the Liquidating LLC on the effective date
        entitling them to receive their ratable share of
        available cash in future distributions, or

    (2) Cash Option: Cash will be set aside in a separate fund
        on the effective date and general unsecured creditors
        will receive their ratable share of cash from the fund.

The Debtors tell the Court that their election of either option
will have no impact on the recovery of general unsecured
creditors.

Series C Redeemable Convertible Preferred Stock of America
Online Latin America, Inc., will be cancelled.  On the Effective
Date, Time Warner or the LLC Agents turn over to each of the
Cisnero Group parties on an equal basis, the Series C Beneficial
Interests.

Subordinated Claims will be discharged and holders of those
claims will receive nothing under the plan.

A full-text copy of the Disclosure Statement is available at no
charge at http://ResearchArchives.com/t/s?606

A copy of the Disclosure Statement Order is available at no
extra charge at http://ResearchArchives.com/t/s?608

Hearing to consider plan confirmation will start on April 25,
2006.  Creditors have until April 3, 2006, 4:00 p.m. Eastern
Time to vote on the Plan.  Objections should also be in by that
time.

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.


CARIBE INFORMATION: Moody's Assigns B1 Rating on US$165-Mil Loan
----------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
to Caribe Information Investment Incorporated's based on its
small size, limited growth prospects and high leverage with debt
to adjusted EBITDA of over 7 times after the leverage buyout
transaction.  The ratings are supported, however, by Moody's
expectations of stable revenues and EBITDA due to Caribe's
subsidiaries dominant market share in Puerto Rico and Dominican
Republic as well as Moody's estimates of an adjusted EBITDA to
interest of approximately 1.5 times for 2006.  In addition, a B1
rating was assigned to the proposed US$165 million in loan
facilities based on the assignment of contractual right to the
publishing rights, equivalent to 35% of the advertising revenues
related to yellow pages directories published by Verizon
Information Services Puerto Rico.  The sponsor financial support
from Welsh, Carson, Anderson & Stowe in the form of a
subordinated loan and equity also sustain the rating.  Moody's
adjusted ratios do not consider the cash flows from the
Dominican Republic operating company.  This is the first time
Moody's rates Caribe.  The rating outlook is stable.

The proceeds of the transaction will be used to pay for the
acquisition of 60% of Verizon Information Services Puerto Rico
and 100% of Verizon Servicios de Informacion Dominican Republic,
both of which are yellow pages directory publishing companies.
The assigned ratings assume there will be no material variations
to the draft legal documentation reviewed by Moody's and assume
that these agreements are legally valid, binding and
enforceable.

Moody's assigned these ratings:

   (i) Corporate Family Rating -- B2;
  (ii) US$10 million Revolving Credit Facility due 2012 -- B1;
(iii) US$155 million Term Loan Facility due 2013 -- B1.

The rating outlook is stable.

The B2 Corporate Family rating reflects Caribe's small size of
revenues (from publishing rights and dividends received from
operating subsidiaries) of approximately US$25 million and its
high leverage as per total debt to EBITDA ratio projected to be
over 7 times by the end of 2006.  In addition, the ratings are
restrained by limited revenue growth, in Moody's opinion, given
the small size and mature markets in which the Caribe's
subsidiaries operate as well as their respective dominant market
positions.  The credit facilities were notched up to B1 from the
Corporate Family B2 rating because of the fact that these will
be secured by the assignment of the contractual right to Puerto
Rico publishing rights royalties received from
Telecomunicaciones de Puerto Rico, Inc. (Baa1, stable outlook),
which amounted to over US$19 million in 2005, net of bad debt
charges, as well as because of the support in distress provided
by the subordinated debt and equity put in by the sponsors.
This offsets the fact that the security package includes neither
the shares nor direct access to the cash flows or assets of the
larger Puerto Rican operating company, although it does include
a full guarantee package from the smaller Dominican Republic
operating company.

The ratings are sustained by predictable cash flows to service
debt as per historical and projected stable revenue generation.
The risk of other media channels, such as the Internet,
threatening the yellow pages directories business is mitigated
by the sponsor's strategy to grow Internet-based product
offerings and to seek additional distribution channels and other
new media opportunities.  Also supporting the ratings is
Caribe's reasonable interest coverage, which Moody's projects
will be 1.5 times Adjusted EBITDA/interest in 2006, which
factors in some increase in interest rates; in addition, Moody's
considered the fact that Caribe will most probably generate
excess cash, which the company will use to decrease debt,
reducing leverage to over six times EBITDA by the end of 2008
from over seven times in December 2006, as per Moody's
estimates.

At closing, Welsh, Carson, Anderson and Stowe, one of the
largest private equity investments firms in the U.S., will
acquire 100% of Caribe which, in turn, will be levered up to
provide for the funding for the acquisition of the operating
companies.  WCAS will lend US$45 million to Caribe in the form
of 10% subordinated notes (not rated), which will mature one
year after the US$165 million proposed credit facilities mature.
WCAS will also inject US$72.5 million in equity in Caribe.  The
Puerto Rican operating company is expected to remain debt free
while the Dominican Republic operating company is likely to keep
a moderate level of debt.

The main assets of Caribe are Verizon Information Services
Puerto Rico and Verizon Servicios de Informacion Dominican
Republic; the former is the incumbent directory publisher in
Puerto Rico with a 99% market share and exclusive rights to
publish under the Telecomunicaciones Puerto Rico brand; the
latter is the incumbent and only directory publisher in
Dominican Republic.  Both operating subsidiaries enjoy
predictable and stable EBITDA margins, although below industry
averages.

The stable outlook is supported by the long-term publishing
rights agreement with Telecomunicaciones de Puerto Rico, to
expire in 2019 (with 15 automatic renewal terms of 5 years
each), and reflects the commitment from Welsh, Carson, Anderson
and Stowe's to not use the operating subsidiaries' balance sheet
to increase consolidated indebtedness.

A dramatic reduction in consolidated leverage at Caribe to
levels below 5 times debt/Adjusted EBITDA could trigger an
upgrade momentum.  Conversely, a material revenue or margin
deterioration in the operating subsidiaries driven by increase
in operating costs and/or termination of any significant
publishing agreement would negatively impact the ratings.

Caribe Information Investment Inc., based in Puerto Rico, is a
holding company with two Caribbean directory publishing
operating subsidiaries, Verizon Information Services-Puerto
Rico, 60% owned, and Verizon Information Services-Dominican
Republic, 100% owned.  Moody's notes that the remaining 40%
ownership in Verizon Information Services-Puerto Rico belongs to
World Directories, which has 50% of the Board of Directors.


CARIBE INFORMATION: S&P Rates Proposed $165 Mil. Facility at B
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to San Juan, Puerto Rico-based Caribe Information
Investment Inc.

At the same time, Standard & Poor's assigned its 'B' bank loan
rating and a '3' recovery rating to the company's proposed $165
million senior secured credit facility, reflecting the
expectation for meaningful recovery in a simulated payment
default scenario.  The credit facility is comprised of a $155
million term loan due 2013 and a $10 million revolver due 2012.
The outlook is stable.

Proceeds from the credit facility will be used to partially fund
the acquisition of Caribe for about $260 million by Welsh,
Carson, Anderson & Stowe (WCAS) from Verizon Information
Services.  In addition, WCAS is
contributing $72 million in equity and will be the holder of $45
million in unrated subordinated notes, issued by Caribe, to fund
the acquisition.  Caribe is a holding company that owns:

   * 60% of the incumbent directory publisher in Puerto Rico;

   * 100% of the incumbent directory publisher in the
     Dominican Republic; and

   * rights to receive a directory publishing rights royalty
     payment from incumbent Puerto Rico Telephone Company Inc.


MUSICLAND HOLDING: Court OKs BMC as Claims Agent on Final Basis
---------------------------------------------------------------
As reported in the Troubled Company Reporter on Feb. 1, 2006,
Musicland Holding Corp. and its debtor-affiliates sought the
U.S. Bankruptcy Court for the Southern District of New York's
authority to appoint BMC Group, Inc., as their claims, noticing,
and balloting agent to assist the Debtors in distributing
notices and to process information pertaining to the Chapter 11
Cases.

BMC's fees as notice and claims agent are:

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

                        *    *    *

Judge Stuart M. Bernstein grants the Motion on a final basis.

Judge Bernstein orders that 30 days before the closing of the
Debtors' cases, an order dismissing BMC will be submitted
terminating the services of BMC upon completion of its duties
and responsibilities.

In addition, the Court authorizes BMC to box and transport all
original documents, in proper format, to the Federal Archives.

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


MUSICLAND HOLDING: Court Nods on $368,144 Pay to 94 Employees
-------------------------------------------------------------
As reported in the Troubled Company Reporter on Jan. 27, 2006,
Musicland Holding Corp. and its debtor-affiliates paid corporate
Employees under the Management Incentive Program for performance
meeting various profitability or operational goals.

For fiscal year 2006, the Debtors have not, to date, made any
Corporate MIP payments.  The Debtors also did not make any
Corporate MIP payouts for fiscal year 2005.

Thus, the Debtors sought authority to continue and honor any
prepetition obligations owed under the Corporate MIP.

The Debtors also sought to enhance the Corporate MIP solely for
fiscal year 2006, to properly reward certain regular, full-time
officers, directors, managers, and specifically identified
individual contributors that have and will continue to play a
critical role in the Debtors' restructuring.

Under the modified Corporate MIP, the Debtors propose to pay 25%
of the current Corporate MIP fiscal year 2006 Target Bonuses to
the Eligible Employees.  In addition, the Modified Corporate MIP
will reward the Eligible Employees for their efforts in the
Debtors' restructuring.

The Debtors believe that Modified Corporate MIP is critical to
their postpetition compensation structure to properly
incentivize the Eligible Employees that will be formulating and
implementing the initiatives necessary for the Debtors to
accomplish their financial and operational goals during their
Chapter 11 Cases.

                        *    *    *

Judge Stuart M. Bernstein authorizes the Debtors, on a full and
final basis, to pay $368,144 of the Modified Corporate MIP to 94
Eligible Employees.  The remaining $171,138 of the Modified
Corporate MIP, payable to five Eligible Employees, will be heard
at a later date.

Other than the Official Committee of Unsecured Creditors, no
other party is allowed to object to the Modified Corporate MIP.

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


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


* Argentina Wants Uruguay to Delay Pulp Mills Construction
----------------------------------------------------------
Argentine President Nestor Kirchner asked Uruguay to suspend for
90 days construction of two paper mills on the river bordering
the two countries to allow for an independent environmental
impact report, Bloomberg relates.

According to Bloomberg, President Kirchner said that Uruguay
violated international treaties by allowing the construction of
the mills without Argentina's approval.  The US$1.6 billion pulp
mill project represents the biggest investment in Uruguay's
history.  The plants are financed by Helsinki-based Metsae-
Botnia Oy, which is building a US$1.1 billion mill along the
river, and Madrid-based Grupo Empresarial Ence SA, which plans
to invest another US$500 million in a second factory.

"I only ask for 90 days so that the best environmentalists of
the world can help us solve this problem," President Kirchner
was quoted by Bloomberg as saying during a joint session of
Congress.  He urged Uruguayan President Tabare Vazquez "to help
find a solution."

Critics of the projects say that the mills would kill fresh-
water dorado and catfish and hurt tourism along the nations'
border.

Argentine provincial and federal authorities and
environmentalist groups state that the pulp mills with their
chlorine bleaching process are highly water and air
contaminating, but Uruguay argues both mills comply with the
latest and most stringent European Union regulations regarding
conservation of natural resources.

Bloomberg relates that Uruguay's government expects the project
will employ 4,000 laborers during construction and create more
than 600 permanent and 3,000 indirect jobs.  Botnia's investment
will expand Uruguay's $12.5 billion economy by 1.6%, according
to a statement on the company's web site.

                        *    *    *

Fitch Ratings assigns these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B       Jun.  3, 2005
   Long Term IDR       RD      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B-      Jun.  3, 2005

                        *    *    *

Fitch Ratings assigns these ratings on Uruguay:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB-      Mar. 7, 2005
   Long Term IDR       B+      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB-      Mar. 7, 2005


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


CITGO PETROLEUM: Files Notice of Filing Termination with SEC
------------------------------------------------------------
Citgo Petroleum Corp. filed Form 15-12B with the U.S. Securities
and Exchange Commission.

Form 15 serves as a notice of termination of registration under
Section 12(g) of the SEC Act of 1934 or suspension of duty to
file reports under Sections 13 and 15(d).

Being based in the U.S., Citgo is obliged to file reports with
the SEC. Having filed Form 15, questions have emerged whether
the firm is still obliged to deliver financial statements for
the fourth quarter of 2005 as well as the 2005 annual report by
March 31.

Citgo's has issued these bonds:

        * 11-3/8% senior notes due 2011;
        * 7-7/8% senior notes due May 15, 2006; and
        * 6% senior notes due 2011

Citgo's 7-7/8% senior notes, with 32 holders, remain
outstanding, while the rest have been paid off in a debt buyback
plan the company launched last year.

Petroleo de Venezuela SA, Citgo's parent, declared in February
its intention to pay off its debts traded in U.S. markets to
avoid filing detailed financial reports with the SEC.

Headquartered in Houston, Texas, 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.

                        *    *    *

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.

                        *    *    *

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: Citgo to Cease Filing Public Financial Reports in US SEC
---------------------------------------------------------------
State oil firm Petroleos de Venezuela's U.S. subsidiary Citgo
Petroleum Corp. will no longer file public financial reports
with the US Securities and Exchange Commission, oil minister
Rafael Ramirez told the Associated Press.  Citgo's 2004
financial results, which were due last June but are now expected
later this month, would be the last filing.

"We will still publish [the reports] but we just won't have to
surrender our accounts to the SEC," Ramirez was quoted as saying
recently by the state-run Bolivarian News Agency.

SEC filings disclose to investors key details about how the
company operates, such as income from exports, refining,
production and reserves.

Venezuela announced in February that PDVSA would buy back $83
million in bonds traded in US markets, to avoid the need to
report its performance to the US regulatory agency.  The
government, according to Ramirez, is working to have private
banks buy off Citgo debt held by individual bondholders.

"With this repurchase operation, PDVSA will be able to withdraw
from the SEC once its audited financial results for 2004 have
been submitted," PDVSA said.

Ramirez revealed to AP that some of the outstanding debt has oil
supply contracts as collateral but that would no longer be the
case when the debt is held by private banks.

"As a state company we cannot be subject to the legal
obligations of foreign countries used to protect bondholders,"
Ramirez told reporters.

Laws to protect investors were good, Ramirez said to AP.
However, he argued that Citgo and PDVSA had come under the
control of individual investors.

According to the minister, the government expects to inform
Venezuelans and others of the company's results at an annual
public event.

PDVSA is nearly a year behind on filing its 2004 results with
the SEC, AP reports.  President Hugo Chavez's government has
said the delays in the reports came after the government was
forced to fire thousands of workers in 2003 after an anti-Chavez
strike that nearly paralyzed the country's key oil industry.

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: Offers Royalty-for-Crude Deal to Oil Firms
-------------------------------------------------------
The Venezuelan government is offering a royalty-for-crude deal
with American company, Chevron Corp., in order to increase heavy
oil production by 16.6%.

According to reports, Venezuela asked Chevron to hike heavy oil
production in lieu of paying for royalties with cash.

"What the minister has signaled is increased capacity and paying
royalty from incremental production," said Ali Moshiri,
Chevron's  head of exploration and production operations in
Latin America.

Chevron holds a 40% stake in the Hamaca heavy crude project in
Venezuela.

Mr. Moshiri was quoted by the Associated Press as saying that in
order to increase heavy crude production, drilling acreage must
be increased at the Hamaca region.  "We have to create an
environment to increase from 197,000 barrels a day to 230,000
b/d," Mr. Moshiri said.

In 2004, Venezuela increased royalty on heavy oil operations
from 1% to 16.6%.

Chevron's in partnership in the Hamaca project with
ConocoPhillips and state-run Petroleos de Venezuela S.A., who
each hold a 30% stake.

Chevron is preparing a proposal to increase production, Mr.
Moshiri had said, but it does not involve adding capacity at the
project's upgrader.  The Orinoco crudes, too heavy for
conventional refineries, must be mixed with lighter grades of
oil to become marketable if they are not processed at the
upgraders.

PDVSA has teamed up with foreign companies from Iran, Spain,
Russia and other countries to calculate the Orinoco's crude
reserves, the first step toward launching new projects.
Venezuela says it holds over 230 billion barrels of recoverable
reserves in the area.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B2 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


* VENEZUELA: Says Firms Can't Declare Orinoco Reserves in Books
---------------------------------------------------------------
The El Universal reports that Minister of Energy and Petroleum,
Rafael Ramirez, declared that oil companies operating in the
Orinoco Oil Belt can't record reserves in their accounting
books.

Venezuela has a partnership in four projects, Cerro Negro,
Hamaca, Petrozuata and Sincor, with Norwegian Statoil, French
Total, and US ExxonMobil, ConocoPhillips and Chevron, to enhance
extra-heavy oil, El Universal relates.

"Nobody, nobody" can record as own the reserves of Venezuelan
oil, El Universal quoted Minister Ramírez during a ceremony at
the National Assembly.

Oil companies include in their balances the reserves of the
fields developed by them as a final pointer of financial good
conditions.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B2 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


*VENEZUELA: S&P Finds Gap in Sovereign and Country Risk Widening
----------------------------------------------------------------
Standard & Poor's Rating Services Thursday issued a report that
finds that pervasive country risk factors endemic to The
Bolivarian Republic of Venezuela -- BB-/Stable/B sovereign
credit ratings -- heighten operating and financial risk to the
country's business community, even as the credit quality of the
sovereign itself has improved.

The article, entitled "Minding The Gap As Sovereign And Country
Risk Diverge In Venezuela," reveals that while the ratings on
some government-owned entities could benefit from the higher
credit quality of their sole shareholder, the likelihood of any
upgrades is tempered by governance risk and by the potential for
the entities to be burdened by policy objectives of the central
government (e.g., social expenditures on health and education).

"Unpredictable policy initiatives and regulatory actions depress
domestic and foreign direct investment (FDI), which is needed to
support stronger and more diversified growth," said S&P's credit
analyst Richard Francis.  "In the gradual shift toward a more
authoritarian bureaucracy, decisions and actions affecting
businesses have become less predictable and resulted in
increased bureaucratic interference."

Mr. Francis explained that the mid- to long-term outlook for
Venezuela's private sector -- and, ultimately, the economic
underpinnings of the country -- will be determined by indirect
sovereign factors.

"This includes the country's progress -- or lack thereof -- in
establishing robust and independent legal and regulatory
institutions, developing healthy corporate governance practices,
making the relationships between the government and the
corporate sector more predictable, and reducing the bureaucratic
burden on business," Mr. Francis noted.  "These indirect factors
will be more important for the corporate sector in Venezuela
than the sovereign's fiscal performance, and no less significant
for the country's overall macroeconomic environment," he
concluded.


                            ***********


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