TCRLA_Public/060308.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, March 8, 2006, Vol. 7, Issue 48

                            Headlines

A R G E N T I N A

ARYANE S.R.L.: Seeks Reorganization Approval from Court
ANCO BISEL: Nacion Releases Bidding Procedures for Mar. 28 Sale
BANCO BRADESCO: Directors Okay Proposal on Payment of Dividends
BANCO HIPOTECARIO: Issuing American Depositary Receipts
BANCO NACION: Releases Bidding Protocol for Sale of Banco Bisel

ENRIQUE STABILE: Trustee Verifies Creditors' Claims until May 16
INDUSTRIAS PLASTICAS: Claims Verification Begins, Ends May 17
LE PLACE: Trustee Stops Validating Creditors' Claims on March 27
LOS CHORRILLOS: Deadline for Filing of Claims Set for Apr. 25
PUMBA S.A.: Files for Bankruptcy Before Buenos Aires Court

REPSOL YPF: Says It Won't Sell Argentine Unit Stake to CNOOC
SADEPUL S.A.: Validated Claims to be Presented on April 17
TELENOR S.A.: Debt Payments Halted, Set to Reorganize
TGN: Incurs US$15 Million Net Loss in 2005
TYONA S.A.: Claims Verification Deadline Fixed

VADEMARCO: Creditors Must Submit Claims to Trustee by July 3
* ARGENTINA: Gains 27 Percent for February Tax Revenue
* ARGENTINA: Scotiabank Denies Withdrawing US$600 Million Claim


B E R M U D A

FOSTER WHEELER: David M. Sloan Resigns from Board
GREAT ALLIANCE: Liquidator to Stop Accepting Proofs of Claim
MGS DIVERSIFIED (CHF BONDS): Claims to be Verified until Mar. 17
MGS DIVERSIFIED (EUR SHARES): Proofs of Claim Due by March 17
NEW CAP: Court Sanctions Scheme Arrangement

TURBOFAN FINANCE: Creditors Must File Proofs of Claim by Mar. 17


B O L I V I A

* BOLIVIA: Moves to Nationalize Railway Cos. Oriental and Andina


B R A Z I L

AES CORP: Approves US$1.5 Mil. Bonus for Chief Executive Officer
PETROLEO BRASILEIRO: Petroquisa Seeks New Venture Partners
VARIG S.A.: TAP Offers to Purchase Planes in Exchange for Equity
VARIG S.A.: TAP Mulls Asset Sale to Finance Varig Purchase
* BRAZIL: Work Program with Venezuela and Argentina Scheduled


C A Y M A N   I S L A N D S

BAILEY COATES: Shareholders' Final Meeting Set for March 14
BRITCAY MANAGEMENT: Shareholders Final Meeting Set for Today
ENERGY CATALYST: Shareholders' Final Meeting Set for Today


C O L O M B I A

BANCOLOMBIA: Shareholders Will Get 508 Pesos Per Share Dividend
* Fitch Rates Colombia's 2021 Global TES Bond at BB


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Relaunching Madrigal Water Project


E L   S A L V A D O R

* EL SALVADOR: Works with Venezuela to Create New Oil Company


G U A T E M A L A

* GUATEMALA: Government Helps SMEs Cut Energy Costs by 30%


J A M A I C A

* JAMAICA: Country's Experiencing Investment Boom, Gov't Says


M E X I C O

AXTEL: Starts Fixed Line Operations in Chihuahua State
BANCO INDUSTRIAL: Considers Business Expansion in Other Nations
CFE: Will Call for Bids on 750MW La Yesca Hydroelectric Plant


P U E R T O   R I C O

MUSICLAND HOLDING: Panel Wants Information Dissemination Cleared
MUSICLAND HOLDING: Kirkland & Ellis Approved as Counsel


U R U G U A Y

* URUGUAY: Gov't Cancels Cerro Free's Puntas de Sagayo Contract


V E N E Z U E L A

* Venezuela's Central Bank Okays US$4 Bil. Transfer to Gov't
* VENEZUELA: Work Program with Brazil and Argentina Scheduled

     -  -  -  -  -  -  -  -

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


ARYANE S.R.L.: Seeks Reorganization Approval from Court
-------------------------------------------------------
Buenos Aires' Court No. 21 is currently reviewing the merits of
the reorganization petition filed by Aryane S.R.L.  Argentine
daily, La Nacion, reports that the company filed the request
after defaulting on its debt payments.

The reorganization petition, if granted by the court, will allow
Aryane S.R.L. to negotiate a settlement with its creditors in
order to avoid a straight liquidation.  Clerk No. 42 assists the
court on this case.

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

         Parana 123
         Buenos Aires, Argentina


BANCO BISEL: Nacion Releases Bidding Procedures for Mar. 28 Sale
----------------------------------------------------------------
Banco Nacion, Argentina's federal bank, has published the
bidding procedures for the sale of local bank Nuevo Banco Bisel.  
The sale is expected to close by March 28, 2006.

The bidding rules will be available until March 27, Banco Nacion
said in a press release.  Nacion is embarking on its second  
attempt to auction Bisel after its first attempt in 2003 failed
to attract any bidders.

Banco Bisel is one of three banks taken over by the Argentine
government in early 2002 when French banking conglomerate Credit
Agricole SA left Argentina in the middle of the country's
financial crisis.  Banco Suquia and Banco Bersa are the other
banks that the government took over and sold to private
institutions.

In October 2004, Banco Macro Bansud bought Banco Suquia for
US$180 million in the first re-privatization, while Nuevo Banco
de Santa Fe acquired Banco Bersa for US$60 million in June 2005.

Banco Bisel ended the first nine months of 2005 with a loss of
ARS5.29-million (US$1.78mn).

Banco Nacion is Argentina's largest bank with assets and
deposits of 46 billion pesos and 31.1 billion pesos respectively
at November 30, 2005.

                        *    *    *

On Jan. 11, 2006, Fitch Ratings affirmed its long-term deposit
rating of BB+ with a stable outlook and short-term deposit
rating of N-3 on the Chilean unit of Argentine bank Banco
Nacion.

Fitch attributed the ratings to the unit's historical
performance, the reduced size of its operations, adequate
liquidity and debt levels as well as low asset risks.

The unit's assets totaled CLP18.4 billion (US$35 million) at
end-November and deposits amounted to CLP2.34 billion.

                        *    *    *

On Jan. 23, 2006, Credit ratings agency, Humphreys, withdrew its
ratings on the Chilean unit of Argentina's largest bank Banco
Nacion at its request.

Humphreys had rated Banco Nacion's short and long-term deposits
at level 4 and BB respectively with a stable outlook.

The Chilean unit's assets totaled 18.4 billion pesos (US$35
million) at end-November and deposits amounted to 2.34 billion
pesos.

Humphreys is an affiliate of international ratings agency
Moody's.


BANCO BRADESCO: Directors Okay Proposal on Payment of Dividends
---------------------------------------------------------------
The Board of Directors of Banco Bradesco S.A. approved in a
meeting held Monday the Board of Executive Officer's proposal
for the payment of dividends to the company's stockholder.  This
is in addition to the interest on own capital relating to the
fiscal year 2005, in the amount of BRL0.334530926 per common
stock and BRL0.367984019 per preferred stock, which represent
approximately 12 times the monthly interests paid, benefiting
the stockholders registered in the Bank's books on Monday.

The referred dividends will be paid on June 30, 2006, by the
declared amount and, under the terms of the Article 10 of Law
9,249/95, are not subject to withholding income tax nor will
integrate the calculation basis for the stockholder's income tax
in the Annual Adjustment Declaration.

The dividends relating to stocks under custody at CBLC --
Brazilian Company and Depository Corporation -- will be paid to
CBLC, which will transfer them to the stockholders through its
Custody Agents.

Statement of Interests on Own Capital and Dividends Relating to
Fiscal Year 2005

                                                   In BRL  
Monthly Interests                         339,554,458.79
First half - Intermediary Interests       293,706,480.66
Complementary Interests of fiscal year 2005   903,739,060.55
Dividends                                     344,000,000.00
Total                                   1,881,000,000.00

                                            
Type:  Common (ON)
                                               Per stock, in BRL
Total Monthly Interests                          0.332060000  
First Half Intermediary Interests                0.285000000  
Complementary Interests of Fiscal Year 2005      0.877977936  
Dividends                                        0.334530926  
Total                                            1.829568862


Type: Preferred (PN)
                                               Per stock, in BRL
  
Total Monthly Interests                       0.365266000  
First Half Intermediary Interests           0.313500000  
Complementary Interests of Fiscal Year 2005      0.965775730  
Dividends                                   0.367984019
Total                                            2.012525749

The amounts of interests on own capital have been adjusted due
to the stock bonus approved at the Special Stockholders' Meeting
as of Nov. 11, 2005.

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.


BANCO HIPOTECARIO: Issuing American Depositary Receipts
-------------------------------------------------------
Banco Hipotecario will issue American Depositary Receipts in the
first half of this year, chief financial officer Gabriel Saidon
told Business News Americas.

According to Business News, the U.S. Securities and Exchange
Commission granted the bank an exemption to create a Level I ADR
program to begin trading stocks in the over-the-counter market.

Mr. Saidon informed Business News that Banco Hipotecario will
trade ADRs for its class D shares, which currently represent 46%
of the bank's outstanding shares.

"This does not imply the issue of new shares nor a capital
increase. It allows some investors to trade their stocks for
ADRs and for others to buy shares of the bank in Argentina," Mr.
Saidon told Business News.  "All transactions carried out by
foreing investors would be made through the euroclear market,
with settlements and custody of these shares abroad."

Level 1 shares can only be traded on the OTC market and the
company has minimal reporting requirements with the SEC.  The
company is not required to issue quarterly or annual reports.

In November 2005, Banco Hipotecario raised US$150 million in the
first bond issue by an Argentine firm since the federal
government restructured most of its sovereign debt in mid-2004.

Banco Hipotecario, a government-owned bank, offers home
mortgages in Argentina.  The Bank underwrites mortgage insurance
and services its own and third parties' mortgage portfolios.
Banco Hipotecario distributes its products through its own
branch network and through commercial banks.

Banco Hipotecario posted net income of 253 million pesos (US$83
million) in 2005, down 9.3% compared to the previous year due to
higher expenses and lower loan volume.

                        *    *    *

On Jan. 25, 2006, Standard & Poor's Ratings Services assigned
'B-' foreign currency senior unsecured debt rating to Banco
Hipotecario S.A.'s $100 million issuance.  The issuance
constituted the second tranche of BH's Series IV notes due Nov.
16, 2010, issued under the $1.2 billion senior unsecured global
MTN program.  With this issuance, the series (whose first
tranche was rated 'B-' on Nov. 16, 2005) will total US$250
million.   At the same time, Standard & Poor's affirmed its
ratings on the Argentine bank's outstanding debt and its 'B-
/Stable/--' counterparty credit ratings.  S&P said the outlook
is stable.


BANCO NACION: Releases Bidding Protocol for Sale of Banco Bisel
---------------------------------------------------------------
Banco Nacio, Argentina's federal bank, has published the bidding
procedures for the sale of local bank Nuevo Banco Bisel.  The
sale is expected to close by March 28, 2006.

The bidding rules will be available until March 27, Banco Nacion
said in a press release.  Nacion is embarking on its second  
attempt to auction Bisel after its first attempt in 2003 failed
to attract any bidders.

Banco Bisel is one of three banks taken over by the Argentine
government in early 2002 when French banking conglomerate Credit
Agricole SA left Argentina in the middle of the country's
financial crisis.  Banco Suquia and Banco Bersa are the other
banks that the government took over and sold to private
institutions.

In October 2004, Banco Macro Bansud bought Banco Suquia for
US$180 million in the first re-privatization, while Nuevo Banco
de Santa Fe acquired Banco Bersa for US$60 million in June 2005.

Banco Bisel ended the first nine months of 2005 with a loss of
ARS5.29-million (US$1.78mn).

Banco Nacion is Argentina's largest bank with assets and
deposits of 46 billion pesos and 31.1 billion pesos respectively
at November 30, 2005.

                        *    *    *

On Jan. 11, 2006, Fitch Ratings affirmed its long-term deposit
rating of BB+ with a stable outlook and short-term deposit
rating of N-3 on the Chilean unit of Argentine bank Banco
Nacion.

Fitch attributed the ratings to the unit's historical
performance, the reduced size of its operations, adequate
liquidity and debt levels as well as low asset risks.

The unit's assets totaled CLP18.4 billion (US$35 million) at
end-November and deposits amounted to CLP2.34 billion.

                        *    *    *

On Jan. 23, 2006, Credit ratings agency, Humphreys, withdrew its
ratings on the Chilean unit of Argentina's largest bank Banco
Nacion at its request.

Humphreys had rated Banco Nacion's short and long-term deposits
at level 4 and BB respectively with a stable outlook.

The Chilean unit's assets totaled 18.4 billion pesos (US$35
million) at end-November and deposits amounted to 2.34 billion
pesos.

Humphreys is an affiliate of international ratings agency
Moody's.


ENRIQUE STABILE: Trustee Verifies Creditors' Claims until May 16
----------------------------------------------------------------
Creditors' claims against Enrique Stabile y Asociados S.A. will
be verified until May 16, 2006.  Infobae reports that court-
appointed trustee Luis Humberto Chelala is tasked with the
verification.

Infobae relates that validated claims will be presented in court
as individual reports on June 28, 2006.

The submission of a general report will follow on Aug. 23, 2006.

A Buenos Aires court handles the company's bankruptcy case.

Mr. Luis Humberto Chelala, the trustee, can be reached at:

         Avda. Corrientes 2335
         Buenos Aires, Argentina


INDUSTRIAS PLASTICAS: Claims Verification Begins, Ends May 17
-------------------------------------------------------------
Ms. Mirta Andrada, court-appointed trustee, has started
verifying claims against plastic industry Industrias Plasticas
Baires S.R.L., Argentine daily La Nacion reports.  The
verification is set to end on March 17, 2006.

La Nacion relates that Buenos Aires' Court No. 3 declared the
company bankrupt in favor of Union Obreros y Empleados
Plasticos, whom the company has claims amounting to $8,530.42.

Clerk No. 6 assists the court in this case.

Industrias Plasticas Baires S.R.L. can be reached at:

         Gavilan 2813
         Buenos Aires, Argentina

Ms. Mirta Andrada, the trustee, can be reached at:

         Malabia 187
         Buenos Aires, Argentina


LE PLACE: Trustee Stops Validating Creditors' Claims on March 27
----------------------------------------------------------------
Le Place S.R.L.'s trustee, Ms. Elisa Esther Tomattis, will stop
validating claims of creditors on March 27, 2006, reports
Infobae.

Ms. Tomattis will present the validated claims in court as
individual reports on May 9, 2006.  The trustee will also submit
a general report on the case on June 21, 2006.

Le Place S.R.L. can be reached at:

         Mansilla 3802
         Buenos Aires, Argentina

Ms. Elisa Esther Tomattis, the trustee, can be reached at:

         Avda. Callao 215
         Buenos Aires, Argentina


LOS CHORRILLOS: Deadline for Filing of Claims Set for Apr. 25
-------------------------------------------------------------
The deadline for filing claims against Los Chorrillos S.A.,
company under reorganization, is on April 25, 2006.  Infobae
relates that verified claims will be used as basis in creating
individual reports, which will be due in court on June 9, 2006.

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

An informative assembly, the last stage of the company's
reorganization, is scheduled on Feb. 1, 2007.

The company started reorganization after a court based in San
Miguel de Tucuman approved its petition to reorganize.

Los Chorrillos S.A. can be reached at:

         Congreso 729
         San Miguel de Tucuman
         Tucuman, Argentina


PUMBA S.A.: Files for Bankruptcy Before Buenos Aires Court
----------------------------------------------------------
Buenos Aires-based Pumba S.A. filed for bankruptcy before the
city's Court No. 3 after failing to pay debts since November
2004, says La Nacion.

The city's Clerk No. 5 assists the court on this case.

Pumba S.A. can be reached at:

         Montevideo 666
         Buenos Aires, Argentina


REPSOL YPF: Says It Won't Sell Argentine Unit Stake to CNOOC
------------------------------------------------------------
Spanish-Argentine oil and energy company Repsol YPF SA told Dow
Jones Newswires that it has no plans to sell a stake in its
Argentine unit to China National Offshore Oil Corp. or CNOOC.

A Repsol spokesman told Dow Jones that the company is only
mulling the possibility of listing a small YPF stake on the
Buenos Aires stock exchange, but they're not looking to sell YPF
shares to any other energy company.

Spanish financial daily Expansion reported that CNOOC is looking
for a partnership with Repsol, to jointly develop oil fields in
Latin America, that might also include the acquisition of YPF
shares by CNOOC.

Repsol YPF's Chairman Antonio Brufau last month was quoted by
Dow Jones as saying that the company would consider reducing its
current 99% stake in YPF, provided the company kept a majority
holding in the Argentine unit.

Repsol acquired YPF in 1999 for about US$15 billion.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.


SADEPUL S.A.: Validated Claims to be Presented on April 17
----------------------------------------------------------
The verification phase for claims against bankrupt company
Sadepul S.A. has ended on Mar. 6, 2006, Infobae reports.  

Individual reports on the validated claims will be presented in
a Buenos Aires court on April 17, 2006.  The submission of a
general report on the case will follow on May 30, 2006.

Rut Noemi Alfici, the trustee, can be reached at:

         Rodriguez Pena 565
         Buenos Aires, Argentina


TELENOR S.A.: Debt Payments Halted, Set to Reorganize
-----------------------------------------------------
Buenos Aires' Court No. 17 is reviewing the merits of Telenor
S.A.'s petition to reorganize.  La Nacion recalls that the
company filed the petition following cessation of debt payments
since Feb. 21, 2006.  Reorganization will allow Telenor S.A. to
avoid bankruptcy by negotiating a settlement with its creditors.

Clerk No. 33 is assisting the court on the company's case.

Telenor S.A. can be reached at:

         Avenida Cordoba 875
         Buenos Aires, Argentina


TGN: Incurs US$15 Million Net Loss in 2005
------------------------------------------
Argentine gas transporter TGN aka Transportadora de Gas del
Norte posted net losses of 46.1 million pesos (US$15 million) in
2005 compared to losses of 32.4 million pesos in 2004, the
company told the Buenos Aires stock exchange.

Net equity at the end of the year was 842 million pesos, down
from 897 million pesos at December 31, 2004.

TGN owns and operates a 5,406 kilometer natural gas transport
network connecting the Loma de la Lata field in the Neuquen
basin and the Campo Duran field in Salta to the industrial belt
around Rosario and Buenos Aires.

                        *    *    *

As reported on Dec. 13, 2005, the Argentine arm of Standard and
Poor's International Ratings, Ltd. maintained an 'raD' rating on
bonds issued by Transportadora de Gas del Norte.

The rating, which was issued to obligations in default and based
on the Company's financial health as of the end of December 31,
2004, affects these bonds:

   -- US$24 million worth of "Serie V, con vencimiento en junio
      de 2003, emitada bajo el programa Global de Ons simples
      (US$300 mil.) vencido en 03.99" that matured June 1, 2004
      and classified as "Simple Issue."

   -- US$60.5 million worth of "Serie Vi emitada bajo el Prorama
      Global de Ons Simples por un monto de US$320 mm" coming
      due on September 1, 2008, and classified under the type
      "Series and/or Class."

   -- US$20 million worth of "Serie VII, con vencimiento en
      marzo de 2003, emitada bajo el Programa Global de Ons
      simples (US$300 Mio)," which came due on March 3, 2003 and
      classified under "Simple Issue."

   -- US$20 million worth of "Serie I emitada bajo el Programa
      Global de Ons Simples por un monto de US$320 million"
      coming due on July 1, 2009 and classified under "Series
      and/or Class."

   -- US$154.5 million worth of "Serie II emitada bajo el
      programa Global de Ons Simples por un monto de US$320
      million" coming due on August 1, 2008 and classified under
      "Series and/or Class."

   -- US$10.7 million worth of "Serie III emitada bajo el
      programa Global de Ons Simples por un monto de US$320
      million" coming due on July 1, 2009 and classified under
      "Series and/or Class."

   -- US$50 million worth of "Serie III, con vencimiento en
      octubre de 2004, emitada bajo el Programa Global de
      Obligaciones simples (USD 300 Mio) vencido en 03.99",
      coming due this October 1, 2004, and classified under
      "Simple Issue."

   -- US$9.3 million worth of "Serie IV emitada bajo el Programa
      Global de Ons Simples por un monto de US$320 mm" due on
      July 1, 2009, and classified under "Series and/or Class."

   -- US$46 million worth of "Serie IV, con vencimiento en junio
      de 2002, emitida bajo el Programa Global de ONs simples
      (USD 300 Mio) vencido en 03.99" which came due on June 3,
      2002, and classified under "Simple Issue."


TYONA S.A.: Claims Verification Deadline Fixed
----------------------------------------------
The verification of creditors' claims for the Tyona S.A.
insolvency case is set to end on April 5, 2006, states Infobae.  
Mr. Roberto Leibovicius, the court-appointed trustee tasked with
examining the claims, will submit the validation results as
individual reports on May 19, 2006.  He will also present a
general report in court on July 4, 2007.
A Buenos Aires court handles the company's case.

Mr. Roberto Leibovicius, the trustees, can be reached at:

         Tucuman 1585
         Buenos Aires, Argentina


VADEMARCO: Creditors Must Submit Claims to Trustee by July 3
------------------------------------------------------------
Vademarco S.A.'s creditors are required to present their claims
against the company to Mr. Oscar Scally, the company's
trustee, on July 3, 2006.

  
An informative assembly is scheduled on April 13, 2007.

Vademarco S.A. can be reached at:

         Valle 1037
         Buenos Aires, Argentina

Argentine daily La Nacion relates that Buenos Aires' Court No. 3
declared the company's bankruptcy.  Clerk No. 5 assists the
court with the proceedings.Mr. Oscar Scally, the trustee, can be
reached at:

         Arenales 875
         Buenos Aires, Argentina


* ARGENTINA: Gains 27 Percent for February Tax Revenue
------------------------------------------------------
Argentina's federal tax revenue rose 27% to 10.48 billion pesos
(US$3.4 billion) in February from, the Economy Ministry was
quoted by Reuters. Analysts forecasted a 10.33 billion revenue.

The government did not immediately give details of the February
tax collection figures, Reuters says.

After restructuring a US$100 billion in defaulted debt in early
2005, Argentina issued about US$4 billion in bonds in private
placements and market auctions last year, according to the
Economy Ministry.  The government has continued selling bonds to
Venezuela this year, Reuters says.

Argentina paid back its entire US$9.5 billion debt to the
International Monetary Funder on Jan. 3, 2006.

President Nestor Kirchner has pledged to sustain a strong
primary budget surplus this year, helped by strong tax revenue,
as the country heads into an expected fourth straight year of
vigorous economic growth, Reuters states.

The government estimates 2006 tax revenue at 133.15 billion
pesos after registering record intake in 2005 of 119.25 billion
pesos, Reuters says.

Argentina's economy grew 9.1% last year, the third straight year
of vigorous expansion following a 1999-2002 recession.  The
central bank forecasts 6.2% growth this year, Reuters says.    

                        *    *    *

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


* ARGENTINA: Scotiabank Denies Withdrawing US$600 Million Claim
---------------------------------------------------------------
Canada's Scotiabank denied reports that it is withdrawing a
US$600 million claim against the Argentine government, Business
News reports.

"We would always seek to resolve any situation amicably through
discussions to the benefit of all our stakeholders. We continue
to have discussions with Argentine authorities about Scotiabank
Quilmes, but our claim has not been withdrawn," the bank's
public affairs senior manager Ann DeRabbie told Business News.

Scotiabank filed in April 2005 a suit before the United Nations
Commission on International Trade Law seeking to recover losses
incurred following the 2002 financial crisis that led to the
bank's exit from Argentina.  The bank alleged "expropriatory and
discriminatory actions taken by Argentine authorities that
violated its rights of fair treatment" including the mandatory
conversion of US dollar denominated deposits and loans into peso
at a devalued rate.

Scotiabank claimed total loss of its investment in its
Scotiabank Quilmes subsidiary in 2002.

Additionally, the bank alleged in its suit that Argentina's
central bank:

     * prevented Scotiabank Quilmes from paying a note which
       came due;

     * provide it -- but not other banks -- with additional
       liquidity during the banking crisis; and

     * obstructed Scotiabank Quilmes' attempts to restructure
       and reopen.

After pulling the Scotiabank Quilmes' license to operate in
August 2002, local banks Banco Comafi and Macro Bansud assumed
responsibility for the customers and operations of Quilmes,
Business News relates.

In December 2005, the bank put that claim on hold in the hope of
reaching an amicable settlement with the Argentine government.

                        *    *    *

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


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

FOSTER WHEELER: David M. Sloan Resigns from Board
-------------------------------------------------
David M. Sloan, a member of the Governance and Nominating
Committee in Foster Wheeler Ltd., notified the Board of
Directors of the company on March 1, 2006, that he will resign
from the board in order to pursue other opportunities.  The
resignation will take effect on the company's annual meeting of
shareholders in 2006, currently scheduled for May 9, 2006.

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

At Dec. 31, 2005, Foster Wheeler's balance sheet showed a
$341,796,000 equity deficit compared to a $525,565 equity
deficit on Dec. 31, 2004.

                        *    *    *

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


GREAT ALLIANCE: Liquidator to Stop Accepting Proofs of Claim
------------------------------------------------------------
Mr. Michael W. Morrison, Great Alliance Insurance Limited's
liquidator, will stop accepting proofs of claim from the
company's creditors after March 24, 2006.  Creditors must
therefore send by the said date their full names, addresses,
descriptions, the full particulars of their debts or claims, and
the names and addresses of their solicitors (if any) to Mr.
Morrison, who may require the creditors to prove their claims
personally or by their solicitors at the time and place that the
liquidator shall specify.  Creditors whose claims are not
validated will be disqualified from the benefit of any
distribution that the company will make.

The company began liquidating assets after a special meeting on
Feb. 23, 2006.  During the meeting these resolutions were
passed:

   -- That the company be wound up voluntarily, pursuant to the
      provisions of the Companies Act 1981;

   -- That Mr. Michael W. Morrison be appointed liquidator for
      the purposes of such winding-up, such appointment to be
      effective forthwith;

   -- That the liquidator be and he is hereby authorize to
      distribute the surplus assets in cash or specie as he may
      determine; and

   -- that the liquidator be and is hereby authorize to appoint
      attorneys-in-fact and to act on his behalf in his absence
      from Bermuda.

Mr. Mike Morrison, the liquidator, can be reached at:

         KPMG Financial Advisory Services Limited
         Crown House, 4 Par-La-Ville Road
         Hamilton, HM 08, Bermuda


MGS DIVERSIFIED (CHF BONDS): Claims to be Verified until Mar. 17
----------------------------------------------------------------
Verification of claims against MGS Diversified Opportunities CHF
Bonds Trading Ltd. will end on March 17, 2006.  Creditors are
therefore required to send their full names, addresses,
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Ms. Beverly
Mathias -- the company's liquidator -- by the said date.

Creditors may be required to prove their debts or claims at the
time and place that Ms. Mathias will specify.  In default
thereof would mean be exclusion from the benefit of any
distribution that the company will make.

A final general meeting is scheduled at 9:30 a.m. on April 7,
2006 at the liquidator's office regarding the:

    -- receiving an account laid before them showing the manner
       in which the winding-up of the Company has been conducted
       and its property disposed of and of hearing any
       explanation that may be given by the Liquidator;

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

    -- by resolution dissolving the company.

The company began voluntary wind up on Feb. 28, 2006.

Ms. Beverly Mathias, the liquidator, can be reached at:

         c/o Argonaut Limited, Argonaut House
         5 Park Road, Hamilton HM O9, Bermuda


MGS DIVERSIFIED (EUR SHARES): Proofs of Claim Due by March 17
-------------------------------------------------------------
MGS Diversified Opportunities EUR Shares Trading Ltd.'s
creditors are required on or before March 17, 2006, to present
proofs of claim to Ms. Beverly Mathias, the company's
liquidator.

Creditors must send by the said date their full names, addresses
and descriptions, the full particulars of their debts or claims,
and the names and addresses of their lawyers (if any) to Ms.
Mathias.  The liquidator may require the creditors to prove
their claims personally or by their lawyers at the time and
place that Ms. Mathias will specify.  Creditors whose claims
will not be verified will be excluded from the benefit of any
distribution that the company will make.

A final general meeting will be held at the office of the
liquidator on April 7, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

    -- receiving an account laid before them showing the manner
       in which the winding-up of the company has been conducted
       and its property disposed of and of hearing any
       explanation that may be given by the liquidator;

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

    -- by resolution dissolving the company.

The company started winding up on Feb. 28, 2006.

Ms. Beverly Mathias, the liquidator, can be reached at:

         c/o Argonaut Limited, Argonaut House
         5 Park Road, Hamilton HM O9, Bermuda


NEW CAP: Court Sanctions Scheme Arrangement
-------------------------------------------
The Supreme Court of Bermuda and the High Court of Justice of
England and Wales sanctioned on Feb. 23, 2006, a Scheme of
Arrangement between New Cap Reinsurance Corporation (Bermuda)
Limited, a company in liquidation, and the scheme creditors of
the company.

Copies of the orders sanctioning the Scheme were delivered to
the registrars of companies in Bermuda and England on the same
day.  The Scheme became effective in both Bermuda and England on
that date.

Any person who believes that he or she may be a Scheme Creditor
of the company and has not received a copy of the Scheme should
contact the joint liquidators.  The final filing deadline is on
May 31, 2006 at 5:00 p.m.  Scheme creditors are required to
submit a completed Notice of Claim form to the joint liquidators
by facsimile transmission, email in pdf format, or by registered
post, hand delivery or courier at the address, facsimile number
or email address on or before the final filing deadline.  Copies
of the Notice of Claim forms may be obtained from the joint
liquidators.

Any Scheme creditor who does not return a completed Notice of
Claim form to the joint liquidators on or before the final
filing deadline will have no right to file a Notice of Claim or
to receive any payment under the Scheme and any liabilities of
the company to that Scheme creditor will be deemed to have been
satisfied in full under the Scheme.

Notice of the effective date and final filing deadline has been
sent by the joint liquidators to all known Scheme creditors at
their last known address.  Any person who believes to be a
Scheme creditor and has not received notice of the effective
date and final filing deadline and a Notice of Claim form should
contact the joint liquidators.

Any questions relating to the Scheme or at the announcement, or
the action Scheme creditors are required to take, should be
directed to the joint liquidators.

Mr. John C McKenna, one of the joint liquidators, can be reached
at:

        c/o Ernst & Young, Reid Hall
        3 Reid Street, Hamilton HM 11, Bermuda
        Phone: 441 295 7000
        Fax: 441 294 5318
        E-mail: john.mckenna@bm.ey.co


TURBOFAN FINANCE: Creditors Must File Proofs of Claim by Mar. 17
----------------------------------------------------------------
Creditors of Turbofan Finance Limited, which is being
voluntarily wound up, are required on or before March 17, 2006,
to present proofs of claim to Mr. Robin J Mayor, the company's
liquidator.

Creditors must send their full names, addresses, descriptions,
the full particulars of their debts or claims and the names and
addresses of their solicitors (if any) to the liquidator.

Mr. Mayor may require creditors to present proofs of claim
personally or through their solicitors at the time and place
that the liquidator will specify.  Failure to present claims
would mean exclusion from the benefit of any distribution that
the company will make.

A final general meeting will be held on April 7, 2006, at 9:30
a.m. or as soon as possible thereafter at the office of the
liquidator.

During the meeting, the members will

   -- receive an account on the manner of the liquidation, the
      property disposed, as well as an explanation that may be  
      given by the liquidator;

   -- determine the manner in which the books, accounts and
      documents of the company and of the liquidator shall be
      disposed of; and

   -- by resolution dissolving the Company.

Turbofan Finance Limited entered voluntary liquidation on March
1, 2006.

Mr. Robin J Mayor, the liquidator, can be reached at:

         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


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


* BOLIVIA: Moves to Nationalize Railway Cos. Oriental and Andina
----------------------------------------------------------------
As part of President Evo Morales' nationalization campaign, the
Bolivian government plans to seize control of the concessioned
railway companies, Ferrovias Oriental and Andina.  

Planning Minister Carlos Villegas was quoted by local press as
saying that the government wishes to regain control over
partially privatized companies in one of two ways.  One of which
is the purchase of shares from the multinational
concessionaires, or if the companies refuse to sell, "We would
like to buy [company shares].  If they don't want [to sell] we
will make decisions of another kind in order that the Bolivian
state may exercise its proprietary right of 51%," minister
Villegas warned.

The state has not contacted Ferrovias Oriental regarding this
issue, the company's communications representative, Angel
Sandoval, told Business News Americas.

"The company has always maintained fluid communication with the
government, but there has not been any official communication
regarding this matter and it has not been discussed," Mr.
Sandoval told Business News.

Ferrovia Oriental is 50% owned by U.S. rail company Genesee &
Wyoming, while the rest is divided between stocks managed by the
pension fund administrators and minor investors.  Ferroviaria
Oriental runs a 1,243km network in eastern Bolivia.  The company
was privatized in 1996.

Spanish-Argentine oil company, Repsol YPF, controls Ferrovia
Andina, which has 31 years remaining of a 40-year concession to
operate Bolivia's western railroad.

                        *    *    *

Fitch Ratings assigns these ratings on Bolivia:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    B-       Jun. 17, 2004
   Long Term IDR      B-       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     B-       Dec. 14, 2005


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


AES CORP: Approves US$1.5 Mil. Bonus for Chief Executive Officer
----------------------------------------------------------------
The AES Corp. disclosed in a regulatory filing that it approved
the grant of a US$1.55 million bonus for company President and
Chief Executive Paul T. Hanrahan for 2005, up from the US$1.5
million bonus he got for 2004.  Mr. Hanrahan's salary has also
been set at US$903,000 for 2006.

AES Corp. also said Executive Vice President John R. Ruggirello
will leave the company on March 31, 2006, and will receive a
US$400,000 severance payment.

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.


PETROLEO BRASILEIRO: Petroquisa Seeks New Venture Partners
----------------------------------------------------------
Petroquisa, the petrochemical arm of Brazil's federal energy
company Petroleo Brasileiro SA aka Petrobras (NYSE: PBR),
continues to seek new partners in a US$500 million acrylic acids
complex project in Minas Gerais, Valor Economico reports.  

Petroquisa has to find a replacement to U.S. chemicals company,
Dow Chemical, after it backed-out from the project, Valor
Economico relates.  Dow Chemical decided to pull out because it
could not agree with other partners over the price of raw
materials it would supply the new plant, according to Petrobras'
supplies director Paulo Costa.

The project, announced in February 2005 and scheduled to operate
in 2009, is co-funded by Brazilian specialty petrochemical
company Elekeiroz.

Petroquisa is eyeing German chemicals company Basf and US
chemicals company Rohm & Haas as potential candidates to form
the partnership, Valor Economico says.  Besides Petrobras and
Elekeiroz, Brazilian textile maker Coteminas could be an
investor in the project.

The complex will have capacity to produce 160,000 tons a year of
acrylic acids and 90,000t/y of acrylates to supply the local
personal hygiene industry.

Petrobras would supply the raw material from its Regap refinery
in Minas Gerais.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

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.

                        *    *    *

Fitch assigns these ratings to Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  _____________           ______        ____       _______
  April 1, 2008        $400,000,000      9%          BB-
  July 2, 2013         $750,000,000    9.125%        BB-
  Sept. 15, 2014       $650,000,000    7.75%         BB-
  Dec. 10, 2018        $750,000,000    8.375%        BB-


VARIG S.A.: TAP Offers to Purchase Planes in Exchange for Equity
----------------------------------------------------------------
TAP SGPS SA and a group of investors want to buy the planes used
by VARIG, S.A., from the lessors and give them to VARIG in
return for a stake in the company, Bloomberg News reports.

TAP Chief Financial Officer Michael Conolly estimates that the
value of the planes would be equal to 80% to 90% of the entire
company, according to Jeffrey T. Lewis and Romina Nicaretta at
Bloomberg News.

"[VARIG] has to be the owner of its own fleet for the
restructuring to work.  The idea is TAP would end up with 20
percent of [VARIG]," Mr. Conolly told Bloomberg.

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


VARIG S.A.: TAP Mulls Asset Sale to Finance Varig Purchase
----------------------------------------------------------
TAP Portugal wants to sell its 20% stake in Air Macau to help
finance the purchase of a similar stake in VARIG, S.A., TMCnet
reports.  Brazil laws limit foreign ownership up to 20%.

TAP may sell its Air Macau stake to Society of Tourism and
Diversions, which operates casinos in Macau and holds a 14%
stake in Air Macau, TMCnet says.

TMCnet says "TAP sees a brighter future for itself in Brazil
than in Macau."

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.  (VARIG Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., 215/945-7000)



* BRAZIL: Work Program with Venezuela and Argentina Scheduled
-------------------------------------------------------------
During its first meeting Thursday, the Coordination and
Decision-Making Ministerial Committee for the development of the
Great Gas Pipeline of the South, made up of Argentina, Brazil
and Venezuela, revised its work program. The program contained
the specific time schedule for the completion of the gas
interconnection project, which was presented after two days of
intense meetings to the Work Multilateral Committee.

This program will be submitted by every high-energy
representative of the participating countries to presidents
Nestor Kichner of Argentina, Luis Inacio Da Silva of Brazil and
Hugo Chavez of Venezuela, respectively.

Argentina's Minister of Federal Planning, Public Investment and
Services Julio De Vido, Brazilian Minister of Energy and Mines
Silas Rondeau and Venezuelan Petroleum and Energy Minister
Rafael Ramirez agreed on making an indicative planning to the
creation of a Southern Gas System, whose backbone will be the
Great Gas Pipeline of the South.

During the meeting, the Coordination and Decision-Making
Ministerial Committee approved resources for the realization of
the project's conceptual engineering and technological
development by distributing costs in 1/3 proportions as well as
the resources allocation for prior environmental studies on the
basis of budgets approved by each nation.  Disbursements in this
first stage amount to 9,200 million dollars.

It was also agreed that PDVSA will contract the specific
consortium responsible for developing the conceptual
engineering.

Ministers decided that the Work Multilateral Committee will move
to the Republic of Bolivia in a short term, with the idea of
keeping Bolivia informed about progressive works of the Great
Gas Pipeline of the South and the Southern Gas Integration.

Ministers also indicated to work subgroups and the High Level
Project's Coordinator encouraging the development of studies and
activities related to the program, in compliance with times and
responsibilities agreed upon for the concretion of the southern
gas interconnection.

The three ministers recalled that the Great Gas Pipeline of the
South could be considered one of the fundamental steps to the
South America's integration, as well as a relevant contribution
to the development of PETROSUR initiative.

They highlighted the three countries' will of gathering efforts
towards the participation of Bolivia, Uruguay and the rest of
sister republics of the South into the project as a way of
increasing the integrationist effect.

Strong and flexible integration

The six work subgroups taking part of the project and discussed
the program during two days:

   -- Business and Financing Model

   -- Patents, Social and Environmental Issues

   -- Markets, Resources and Marketing

   -- Tariff Regime

   -- Engineering and Technology

   -- Regulatory, Legal, Taxing and Institutional Aspects

Among agreed issues, they decided that in cases in which the
three countries joined efforts, they must decide on the
distribution of costs of that particular activity, as provided
for in each case.  When individual studies are carried on, each
state must be directly responsible for.

Likewise, the Work Multilateral Committee ratified that any of
the trading model applied should provide strong and flexible
mechanisms of integration among nations.

The first meeting held by the Coordination and Decision-Making
Ministerial Committee, was framed within efforts made by the
Presidents of Argentina, Brazil and Venezuela who intend to
consolidate energy projects which represent an integrationist
platform for the creation of a center of regional integration
and development of region brother peoples.

It is important to mention that Argentina, Brazil and Venezuela
signed the Montevideo Declaration on Dec. 9, 2005, in Uruguay,
whereby it is provided that the Great Gas Pipeline of the South
will be one of the decisive steps within the integration
process, given the vital importance of energy for the economic
and social development of South America.


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


BAILEY COATES: Shareholders' Final Meeting Set for March 14
-----------------------------------------------------------
Shareholders of Bailey Coates (Cayman) II Limited will convene
for a final meeting on Mar. 14, 2006, at 11:00 a.m. at the
offices of:

         Kroll (Cayman) Limited
         4th Floor, Bermuda House, 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 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 liquidators can be reached at:

                 Gordon I. Macrae
                 Korie Drummond
                 Kroll (Cayman) Limited
                 4th Floor, Bermuda House, Dr. Roy's Drive
                 Grand Cayman, Cayman Islands
                 Tel: (345) 946-0081
                 Fax: (345) 946-0082


BRITCAY MANAGEMENT: Shareholders Final Meeting Set for Today
------------------------------------------------------------
Shareholders of Britcay Management Ltd. will convene a hearing
at 9:00 a.m. today for a final meeting which will be held at 36A
Dr. Roy's Drive in 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 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 liquidators can be reached at:

              Geoffrey W. Moore
              Stuarts Walker Hersant
              P.O. Box 2510 George Town
              Grand Cayman, Cayman Islands
              Tel: (345) 949 3344
              Fax: (345) 949 2888


ENERGY CATALYST: Shareholders' Final Meeting Set for Today
----------------------------------------------------------
Shareholders of Energy Catalyst Fund Ltd. will convene at 9:00
a.m today for a final meeting which will be held 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 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 liquidators can be reached at:

               Russell Burt
               Mr. Chris Humphries
               Stuarts Walker Hersant
               P.O. Box 2510 George Town
               Grand Cayman, Cayman Islands
               Tel: (345) 949 3344
               Fax: (345) 949 2888


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


BANCOLOMBIA: Shareholders Will Get 508 Pesos Per Share Dividend
---------------------------------------------------------------
Business News Americas reports that shareholders of Colombia's
largest bank, Bancolombia, will receive a 508-peso per share
dividend for 2005, up 35.1% compared to the dividend paid for
2004.

To support the bank's growth in 2006, shareholders also agreed
to allocate 286 billion pesos (US$127 million) to boost reserve
requirements, Business News reports.

Bancolombia saw its consolidated net income rise to 947 billion
pesos in 2005, up 18.2% compared to the previous year.

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.


* Fitch Rates Colombia's 2021 Global TES Bond at BB
---------------------------------------------------
Fitch Ratings expects to assign a 'BB' rating to the Republic of
Colombia's expected peso-denominated, U.S. dollar-payable global
bonds maturing in March 2021.  The rating is equal to Fitch's
long-term foreign currency issuer default sovereign rating of
Colombia. Colombia's long-term local currency issuer default
rating is 'BBB-'. The Rating Outlook is Stable.


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


* DOMINICAN REPUBLIC: Relaunching Madrigal Water Project
--------------------------------------------------------
The Dominican Republic's government plans to re-launch the
Madrigal water project, according to a report from local
newspaper Hoy Digital.  

Santo Domingo's aqueduct and sewerage authority head Richard
Martinez .

According to the Hoy Digital, the project, previously known as
Presa de Rio Haina, will solve the lack of water in the
country's capital city, as well as in nearby cities of San
Cristobal, Haina and Villa Altagracia for the next 25-30 years.

The project will require US$400 million investment.  It will
include the construction of a dam on the river Haina as well as
a water treatment plant.

According to Business News Americas, the project was first
conceived in 1983 and estimated to have cost US$150 million.  
The project financing would have been provided by the Inter-
American Development Bank.  The loan was rejected by congress
due to political differences with the executive branch.

The project has been lauded as a solution since 1955.  The
country's governments have made a number of efforts to build the
dam, but the initiative has met several obstacles, Business News
relates.

                        *    *    *

Fitch Ratings assigns these ratings on Dominican Republic:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-       May 11, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B        May 11, 2005


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


* EL SALVADOR: Works with Venezuela to Create New Oil Company
-------------------------------------------------------------
El Salvador's mayors from the leftist party Frente Farabundo
Marti para la Liberacion Nacional, aka FMLN, will sign an accord
with the Venezuelan government for the creation of a joint oil
company, Venezuelan state news agency Agencia Bolivariana de
Noticias told Down Jones Newswires on Monday.  

Dow Jones states that the new company will supply El Salvador's
low-income areas with low priced fuel.  

The company will serve to cut out oil middlemen and speculators
that make fuel more expensive, FMLN politicians and Venezuela
National Assebly President Nicolas Maduro told ABN.

Dow Jones relates that the agreement will be signed on March 20,
2006, without the involvement of El Salvador's President Antonio
Saca.

Lawmakers could not be reached for comments on the deal, Dow
Jones reports.

                        *    *    *

As reported by Troubled Company Reporter on March 6, 2006, 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.


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


* GUATEMALA: Government Helps SMEs Cut Energy Costs by 30%
----------------------------------------------------------
The Guatemalan government together with the industry chamber
(CIG), and the national energy commission and local power
distributor (Eegsa) have announced the implementation of a
program that will reduce costs of electricity services for
small-to-medium enterprises by up to 30%, Business News Americas
reports.

Currently, owners of SMEs pay providers for energy they do not
always utilize in some cases and in others pay penalties for
inefficiency, Business News relates.

Under the new program, SMEs will be given counseling in order to
buy only the energy they consume and make their operations more
efficient, the government said in a statement.  Eegsa will grant
counseling services without cost to the SMEs.  In some cases the
installation of new equipment to improve consumption efficiency
will be necessary, but this will not be covered by the SMEs.

                        *    *    *

Fitch Ratings assigns these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------  
Aug. 3, 2007        $150,000,000     8.5%         BB+
Nov. 8, 2011        $325,000,000    10.25%        BB+
Aug. 1, 2013        $300,000,000     9.25%        BB+
Oct. 6, 2034        $330,000,000     8.125%       BB+


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


* JAMAICA: Country's Experiencing Investment Boom, Gov't Says
-------------------------------------------------------------
Jamaica's Prime Minister P.J Patterson has said the economy is
in an expansion mode, with a plethora of opportunities for local
and foreign investors, the Jamaica Information Service states.

The Prime Minister, during a business forum, noted that the
economy was experiencing record levels of investment flows and a
robust business environment, JIS relates.

"The boom has been made possible by efforts to promote
investment according to a clear strategy of targeting industries
and activities such as tourism and mining and other areas in
which we had a competitive advantage," Mr. Patterson was quoted
by JIS as saying.

The Prime Minister cited Jamaica's:

   * 17th place ranking as a prime destination for foreign
     direct investment and 12th place ranking in terms of
     technology transfer by the World Investment Report,

   * its US$3.5 billion portfolio of projects covering several
     sectors,
   
   * as well as its 10th place rating as a designation for ease
     of doing business by a World Bank report, as indicators of
     the progress being made.

The Prime Minister identified the key sectors contributing to
the country's growth:

   * manufacturing,
   * tourism,
   * infrastructure,
   * bauxite and mining, and
   * information and communication technology.

                        *    *    *

On Feb. 23, 2006, Moody's maintained its B rating on Jamaica.

"The outlook for all ratings is stable, reflecting a balance
between ongoing efforts at fiscal consolidation and the
vulnerability of the country to external shocks," Moody's said.

The agency points to Jamaica's strengths as a commitment to
fiscal discipline, proven ability to face severe shocks and
comparatively low external Government debt ratios.

Among the challenges which Jamaica faces, according to the
rating agency, is a closely managed exchange rate that is
subject to severe recurrent pressures and a large public sector
debt burden with growing exposure to international capital
markets.

The agency notes that the economy as well as the fiscal and
external positions remain sensitive to external and domestic
shocks. It further observes that, "they remain supported by the
Government's commitment to return to a balanced budget position
and by a constitutional provision mandating debt-service
payments as the first expenditure priority."

Moody's, which influences the behaviour of international
institutional investors, says despite Jamaica's recent adverse
external developments and a downturn in the local business
sentiment, "confidence in the medium-term programme and in the
ability of the policymakers has remained somewhat intact, as
evidenced by the relative stability of the foreign exchange
market, notwithstanding some bouts of pressure."


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


AXTEL: Starts Fixed Line Operations in Chihuahua State
------------------------------------------------------
Axtel, S.A. de C.V., launched last week its fixed line
operations in Chihuahua, Mexico.  The company made a US$25
million investment for the project.

In a statement, company president Tomas Milmo Santos said that
the new network will give coverage to 90% of the state's
population with telephony, Internet and data services for the
residential and business segments.

Axtel announced plans at the beginning of the year to launch
operations in five new locations in 2006 with investments of
US$150 million, Business News Americas relates.

In February, Axtel launched operations in Veracruz state.
Launches are also planned for the northern city of Torreon as
well as Irapuato and Celaya in central Mexico.  In January,
Axtel also announced plans to invest US$25 million in expanding
the La Laguna area of Coahuila state, Business News relates.

Axtel posted net profits of 306 million pesos (US$29 million) in
2005 compared to a loss of 79.6 million pesos in 2004 while
revenues from local services increased 26% to 3.6 billion pesos
from 2.8 billion pesos in 2004.  The company has 600,000 lines
installed, Business News relates.

Axtel, S.A. de C.V. provides local and long distance
telecommunications services, data transmission and internet
services in Mexico, to both residential and business customers.
The company has 600,000 installed lines.  Axtel posted net
profits of 306 million pesos (US$29 million) for 2005 compared
to a loss of 79.6 million pesos in 2004.

                        *    *    *

Axtel's 11% $249,870,000 note due Dec. 15, 2013, is rated B1 by
Moody's and B+ by Standard & Poor's.


BANCO INDUSTRIAL: Considers Business Expansion in Other Nations
---------------------------------------------------------------
Guatemala's Banco Industrial eyes expansion opportunities in
Central America and Mexico after announcing in February it would
acquire rival bank Banco de Occidente, a company executive told
Business News Americas.

"The final integration is going to take several months.  
However, we are looking at options in other countries.  Don't be
surprised if this year we announce some sort of operation in
another country," international banking director Luis Prado said
in a telephone interview to Business News.

According to Business News, Banco Industrial has requested
regulatory approval to acquire Guatemala's sixth largest bank
Banco de Occidente for an undisclosed amount.

Banco Industrial will have a 25% market share and more than
22.2bn quetzales (US$2.9 million) in assets after the deal
closes, while parent company Corporacion BI will have over
US$3.7 billion in assets.  The acquisition will also give Banco
Industrial a big lead over its closest rival Banco G&T
Continental, which has a 15% market share by assets, Business
News says.

Banco Occidente is ideal to acquire because of its strong
performance, large market share and as a defensive move to slow
the arrival of large foreign banks, Mr. Prado informed Business
News.

The transaction is expected to close this month.

Central America's largest financial group, Panama-based Grupo
Banistmo, has publicly stated its intention to enter Guatemala
before year-end 2007 and reportedly bid for Occidente.  Regional
banking group Grupo Cuscatlan also held talks with the country's
fourth largest bank Banco de Cafe in 2004 but failed to reach an
agreement on price.

                        *    *    *

On Mar. 1, 2006, Standard & Poor's Ratings Services affirmed its
'BB-/B' counterparty credit rating on Banco Industrial S.A.
following the announcement that Banco Industrial and Banco de
Occidente have entered into an agreement that will likely result
in the sale of Banco de Occidente to Banco Industrial.

"The affirmation reflects our expectations that the acquisition
will be funded with a prudent amount of equity or equity-like
capital so as to maintain capitalization levels adequate for the
rating category," said S&P's credit analyst Leonardo Bravo.

On Feb. 20, 2006, Banco Industrial requested authorization from
Guatemalan authorities to acquire a majority stake in Banco de
Occidente.

After the proposed acquisition, Banco Industrial's market share
will increase to 26% from 20% and will strengthen its leadership
in Guatemala.

The acquisition size is relatively large as it represents more
than 25% of assets and equity of Banco Industrial.  Integration
and execution risks are considered low as Banco de Occidente has
a small branch network and its loan portfolio is composed mainly
of corporate loans.  Excluding integration costs, impact on
profitability is not expected to be material.

The acquisition may benefit the bank in the medium term but it
could have a negative effect on the bank's adjusted
capitalization due to goodwill arising from the transaction.  In
our opinion, management has concrete plans to soften the impact
on capitalization and maintain adjusted capital at current
levels.

S&P will continue to review the conditions of the acquisition
and tangible effects of the transaction once the necessary
regulatory approvals have been confirmed and the acquisition has
been completed.

The stable outlook reflects our opinion that Banco Industrial's
financial profile and strong market presence will be maintained,
and an adequate level of equity capital will be used to fund the
acquisition.  The bank has the challenge to maintain capital and
asset quality levels similar to the ones reported historically.
Should asset quality, profitability, or adjusted capitalization
ratios deteriorate or there are unexpected integration issues,
ratings could be revised negatively.  Upward rating movement is
limited, given that it is unlikely that the bank would be rated
above the Guatemalan foreign currency sovereign credit rating
(BB-/stable/--).


CFE: Will Call for Bids on 750MW La Yesca Hydroelectric Plant
-------------------------------------------------------------
CFE aka Comision Federal de Electricidad plans to release
bidding procedures for the construction of the 750MW La Yesca
hydroelectric plant on the Santiago river in Nayarit State,
Mexico, Business News Americas reports.

The project, according to company president, Vicente Fox in a
statement, will be 65 kilometres upstream from the 750MW El
Cajun hydroelectric generation plant, which is being built by a
consortium led by Mexican construction firm ICA and is expected
to start operations late 2006.

Construction of La Yesca is expected to cost US$850 million and
will be funded under the public financed work scheme.  La Yesca
will promote regional development in Nayarit and Jalisco states
and generate 10,000 new jobs.

The La Yesca dam will be the highest in the world of its type,
reaching 210 meters with a volume of 12 million cubic meters.  
The project will be completed in 2011, the company said in a
statement.

The public financed works scheme, which is a mixed public-
private investment formula for large infrastructure projects,
has allowed the government to free up financial resources for
social works like education and hospitals, Mr. Fox said in the
statement.

CFE's plan to launch a tender for the construction of the 900MW
La Parota hydroelectric generation project in Guerrero state in
mid-February was on standby due to legal disputes with the
affected communities, Business News reports.

                        *    *    *

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

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


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


MUSICLAND HOLDING: Panel Wants Information Dissemination Cleared
----------------------------------------------------------------
Pursuant to Section 1103(c) of the Bankruptcy Code, the Official
Committee of Unsecured Creditors of Musicland Holdings Corp. and
its debtor-affiliates is authorized, among other things, to:

    * consult with the Debtors,
    * investigate the Debtors,
    * participate in the formulation of a plan, and
    * perform other services in the interest of those
      represented.

Under the recent amendments to the Bankruptcy Code, pursuant to
the Bankruptcy Abuse Prevention and Consumer Protection Act of
2005, the Committee is required to provide access to information
for creditors represented by the Committee.

The Committee asks the U.S. Bankruptcy Court for the Southern
District of New York to enter an order, nunc pro tunc to January
20, 2006, the date of the Committee's appointment, clarifying,
until a protocol regarding the dissemination of information can
be established, the requirements of Section 1102(b)(3)(A) of the
Bankruptcy Code.

The Committee finds Section 1102(b)(3)(A) unclear and ambiguous.
According to Mark S. Indelicato, Esq., at Hahn & Hessen LLP, in
New York, the Debtors have specifically raised their concerns
with sharing any confidential, proprietary or material non-
public information with the Committee based on their legitimate
concern that the Committee will be required to provide
unfettered access to that information to its constituency.

Mr. Indelicato notes that a Court order clarifying Section
1102(b)(3)(A) will help ensure that confidential, privileged,
proprietary and material non-public information will not be
disseminated to the detriment of the Debtors' estates and will
aid the Committee in performing its statutory function.

Mr. Indelicato relates that the Committee is developing a
protocol, which will include a Web site to provide for the
dissemination of information to unsecured creditors.  The
Committee will submit that protocol to the Court for approval as
soon as possible.  In the meantime, the Committee will try to
make available as much non-confidential information as possible
to its constituents.

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: Kirkland & Ellis Approved as Counsel
-------------------------------------------------------
The Honorable Stuart M. Bernstein of the U.S. Bankruptcy Court
for the Northern District of Georgia gave Musicland Holding
Corp. and its debtor-affiliates permission to employ Kirkland &
Ellis LLP as their counsel, on a final basis.

As reported in the Trouble Company Reporter on Jan. 23, 2006,
Kirkland & Ellis will:

    (a) advise the Debtors with respect to their powers and
        duties as debtors in possession in the continued
        management and operation of their business and
        properties;

    (b) attend meetings and negotiate with representatives of
        creditors and other parties-in-interest;

    (c) take necessary actions to protect and preserve the
        Debtors' estates;

    (d) prepare all motions, applications, answers, orders,
        reports and papers necessary to the administration of
        the Debtors' estates;

    (e) take necessary actions to obtain approval of a
        disclosure statement and confirmation of the Debtors'
        plan of reorganization;

    (f) represent the Debtors in connection with obtaining
        postpetition financing;

    (g) advise the Debtors in connection with any potential sale
        of assets;

    (h) appear before the Court, any appellate courts and the
        United States Trustee and protect the interests of the
        Debtors' estates before those Courts and the United
        States Trustee;

    (i) consult with the Debtors regarding tax matters; and

    (j) perform all other necessary legal services to the
        Debtors in connection with the Chapter 11 Cases.

Kirkland & Ellis' hourly rates vary with the experience and
seniority of the individuals assigned.  Those hourly rates are
subject to periodic adjustments to reflect economic and other
conditions and are consistent with the rates charged elsewhere:

       Billing Category                           Range
       ----------------                           -----
       Partners                                $520 to $950
       Of Counsel                              $280 to $685
       Associates                              $245 to $520
       Paraprofessionals                        $90 to $240

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


* URUGUAY: Gov't Cancels Cerro Free's Puntas de Sagayo Contract
---------------------------------------------------------------
The Uruguayan government has cancelled the authorization and
concession granted to Cerro Free Port to build, maintain and
operate the US$162 million Puntas de Sayago port in Montevideo,
about 380 kilometres from Buenos Aires, Business News Americas
quoted a government press release.

The concession was cancelled, according to transport minister
Victor Rossi, because Cerro failed to fulfill its obligations
under the contract.

"The company has been unable to carry out the construction of
the port because there have been administrative differences
between the company and the government," Cerro Free Port press
representative Marcelo Inverso informed Business New Americas.

Cerro Free Port was granted permission to build and operate the
port in 2002 and in January 2005 the transport ministry decided
to give the firm another 12 months to begin construction, with
the deadline being March 22 this year.

In December 2005, the government was due to get a notice from
Cerro Free Port of when the construction will begin, but instead
of this, "we received a new proposal to postpone [the works] and
a request to confirm that [the company] had fulfilled its
obligations," Minister Rossi said in the statement.

Negotiations were held with the transport ministry in an effort
to resolve these problems, added Mr. Inverso.

"The government is reporting that there was non-fulfillment on
the part of the company regarding certain phases of works in
terms of the dates. The works have not been completed," Mr.
Inverso explained to Business News.

The problems between the company and the government have become
seriously strained after Cerro Free Port filed a lawsuit against
the authorities on February 10 claiming US$133 million, some
US$109 of which is related to lost earnings, Mr. Inverso told
Business News.

The authorities have until March 13 to respond to the
allegations contained in the suit.

                        *    *    *

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


* Venezuela's Central Bank Okays US$4 Bil. Transfer to Gov't
------------------------------------------------------------
The board of directors of Banco Central de Venezuela approved a
US$4 billion transfer from the bank's official reserves to the
the national development fund, Fonded.

The board agreed to the transfer after determining that BCV law
allows for more funds to go to the government despite the US$6
billion transfer it made last year.

The fund will be used to fund programs for economic development,
healthcare, education and debt amortization.

As previously reported, Banco Central's former officers Jose
Guerra and Jesus Rojas said that a renewed transfer of reserves
to the government will result in losses, weakein its capital and
source of earnings and would be a breach of the BCV law.

Rodrigo Cabezas, president of the National Assembly Finance
Committee, told the El Universal when asked why BCV is to make a
renewed transfer of reserves to President Hugo Chavez'
government, considering that amended BCV law establishes that a
unique transfer would be made --in 2005 -- and that article 75
does not call for delivery of surplus reserves once the optimal
level is estimated, Mr. Cabezas replied:  "Under the BCV law,
the term optimal level of reserves is not a mere decoration. The
decision to make the transfer is in accordance with the law: all
surpluses will be deposited in Fonden."

                        *    *    *

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

                        *    *    *

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

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


* VENEZUELA: Work Program with Brazil and Argentina Scheduled
-------------------------------------------------------------
In its first meeting Thursday the Coordination and Decision-
Making Ministerial Committee for the development of the Great
Gas Pipeline of the South, made up of Argentina, Brazil and
Venezuela, revised its work program. The program contains the
specific time schedule for the co of the gas interconnection
project, which was presented after two days of intense meetings
to the Work Multilateral Committee.

This program will be submitted by every high-energy
representative of the participating countries to presidents
Nestor Kichner of Argentina, Luis Inacio Da Silva of Brazil and
Hugo Chavez of Venezuela, respectively.

Argentina's Minister of Federal Planning, Public Investment and
Services Julio De Vido, Brazilian Minister of Energy and Mines
Silas Rondeau and Venezuelan Petroleum and Energy Minister
Rafael Ramirez agreed on making an indicative planning to the
creation of a Southern Gas System, whose backbone will be the
Great Gas Pipeline of the South.

During the meeting, the Coordination and Decision-Making
Ministerial Committee approved resources for the realization of
the project's conceptual engineering and technological
development by distributing costs in 1/3 proportions as well as
the resources allocation for prior environmental studies on the
basis of budgets approved by each nation.  Disbursements in this
first stage amount to 9,200 million dollars.

It was also agreed that PDVSA will contract the specific
consortium responsible for developing the conceptual
engineering.

Ministers decided that the Work Multilateral Committee will move
to the Republic of Bolivia in a short term, with the idea of
keeping Bolivia informed about progressive works of the Great
Gas Pipeline of the South and the Southern Gas Integration.

Ministers also indicated to work subgroups and the High Level
Project's Coordinator encouraging the development of studies and
activities related to the program, in compliance with times and
responsibilities agreed upon for the concretion of the southern
gas interconnection.

The three ministers recalled that the Great Gas Pipeline of the
South could be considered one of the fundamental steps to the
South America's integration, as well as a relevant contribution
to the development of PETROSUR initiative.

They highlighted the three countries' will of gathering efforts
towards the participation of Bolivia, Uruguay and the rest of
sister republics of the South into the project as a way of
increasing the integrationist effect.

Strong and flexible integration

The six work subgroups taking part of the project and discussed
the program during two days:

   -- Business and Financing Model

   -- Patents, Social and Environmental Issues

   -- Markets, Resources and Marketing

   -- Tariff Regime

   -- Engineering and Technology

   -- Regulatory, Legal, Taxing and Institutional Aspects

Among agreed issues, they decided that in cases in which the
three countries joined efforts, they must decide on the
distribution of costs of that particular activity, as provided
for in each case.  When individual studies are carried on, each
state must be directly responsible for.

Likewise, the Work Multilateral Committee ratified that any of
the trading model applied should provide strong and flexible
mechanisms of integration among nations.

The first meeting held by the Coordination and Decision-Making
Ministerial Committee, was framed within efforts made by the
Presidents of Argentina, Brazil and Venezuela who intend to
consolidate energy projects which represent an integrationist
platform for the creation of a center of regional integration
and development of region brother peoples.

It is important to mention that Argentina, Brazil and Venezuela
signed the Montevideo Declaration on Dec. 9, 2005, in Uruguay,
whereby it is provided that the Great Gas Pipeline of the South
will be one of the decisive steps within the integration
process, given the vital importance of energy for the economic
and social development of South America.

                        *    *    *

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

                        *    *    *

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

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


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Marjorie C. Sabijon and Sheryl
Joy P. Olano, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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