TCRLA_Public/060314.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

          Tuesday, March 14, 2006, Vol. 7, Issue 52

                            Headlines

A R G E N T I N A

CENTRO ESPECIALIZADO: Creditors Must Present Claims by April 19
FERRAPEL S.A.: Claims Verification Ends on March 28
IMPECOR S.A.: Trustee Verifies Creditors' Claims Until April 7
LOS CAMINOS: Claims Verification Deadline Set for May 8
MILENIO CONSTRUCCIONES: Verification of Claims Ends May 5

NMC TRANS: Trustee Stops Verifying Claims After May 11
NOVEL TIME: Verification of Creditors' Claims Ends on April 10
SELECTRADE S.A.: Claims Verification Ends on May 8
SH SALUD: Claims Verification Deadline Is April 21
BUENOS AIRES: Fitch Says New Administration Won't Affect Ratings

B E R M U D A

ASP MANAGEMENT: Proofs of Claim to be Verified Until March 22
CMG ASIA: Creditors Must Present Proofs of Claim by Mar. 24
DIOGENES INVESTMENTS: Creditors Must File Claims by March 22
FIRST VIRGINIA: Creditors Must File Proofs of Claim by April 3
HOLDINGS II: Creditors Given Until March 22 to Submit Claims

PA VENTURES: Creditors Must File Proofs of Claim by Mar. 22
SPHYNX (BERMUDA): Court Set Mar. 24 Wind Up Petition Hearing

B R A Z I L

BANCO PANAMERICANO: S&P Assigns B Rating with Outlook Stable
BNDES: Alloting BRL99 Million to New Usina Santa Project
TELEMAR GROUP: Posts BRL16,747 Million Net Revenue in 2005

C A Y M A N   I S L A N D S

ABN AMRO: Shareholder & Liquidators' Final Meeting on Mar. 31
ADVISORY CONVERTIBLE: Shareholders Final Meeting Set for Mar. 23
ADVISORY LEVERAGED: Final General Meeting Set for Mar. 23
ADVISORY U.S.: Shareholders' Final Meeting Scheduled for Mar. 23
ALBATROSS FINANCIAL: Invites Shareholders for Mar. 21 Meeting

BADANEG LTD: Shareholders' Final Meeting Scheduled for Mar. 21
BGG HOLDINGS: Creditors Must File Proofs of Claim by Mar. 20
BLENTARP INVESTMENTS: Filing of Proofs of Claim Ends Mar. 20
BRAZILIAN FUTURE: Sets Mar. 23 Creditors' Claims Filing Deadline
CANTUS LIMITED: Files for Voluntary Liquidation

M E X I C O

AHMSA: Posts 7.5% Increase in Total Sales in 2005

P U E R T O   R I C O
MUSICLAND HOLDING: Curtis Approved as Debtors' Conflicts Counsel
MUSICLAND HOLDING: Panel Wants to Conduct Rule 2004 Examination

V E N E Z U E L A

PETROBRAS ENERGIA: Begins Cojedes Natural Gas Drilling Project

* LATIN AMERICA: S&P Lists Companies with Low B Ratings


                                                - - - - - - - -


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A R G E N T I N A
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CENTRO ESPECIALIZADO: Creditors Must Present Claims by April 19
---------------------------------------------------------------
Centro Especializado de Rehabilitacion Odontologica S.A. 's
creditors are required to present their claims against the
company to Hector Presta, the company's trustee, on April 19,
2006.

Argentine daily La Nacion relates that Buenos Aires' Court No.
22 declared the company's bankruptcy.

Clerk No. 44 assists the court with the proceedings.

The debtor can be reached at:

        Centro Especializado de Rehabilitacion Odontologica S.A.
        Pueyrredon 676
        Buenos Aires, Argentina

The trustee can be reached at:

        Hector Presta
        Parana 467
        Buenos Aires, Argentina


FERRAPEL S.A.: Claims Verification Ends on March 28
---------------------------------------------------
The verification of claims against bankrupt company Ferrapel
S.A. ends on March 28, 2006, states Infobae.  Mauricio Leon
Zafran, the trustee appointed by the Buenos Aires court, will
submit the validation results as individual reports on May 12,
2006.  He will also present a general report in court on June
29, 2007.

The company can be reached at:

         Ferrapel S.A.
         Alsina 1535  
         Buenos Aires, Argentina

The trustee can be reached at:

         Mauricio Leon Zafran
         Avenida Callao 420
         Buenos Aires, Argentina


IMPECOR S.A.: Trustee Verifies Creditors' Claims Until April 7
--------------------------------------------------------------
Creditors' claims against Impecor S.A. will be verified until
April 7, 2006.  Court-appointed trustee Hector Ricardo Calle is
tasked with the verification.

Infobae relates that validated claims will be presented in court
as individual reports on May 24, 2006.

The submission of a general report will follow on July 7, 2006.

A Buenos Aires court handles the Impecor S.A. bankruptcy case.

The company can be reached at:
         Impecor S.A.  
         Avenida Santa Fe 2402
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Ricardo Calle
         Lavalle 1528
         Buenos Aires, Argentina


LOS CAMINOS: Claims Verification Deadline Set for May 8
-------------------------------------------------------
The verification of creditors' claims for Los Caminos del Vino
S.R.L.'s insolvency case is set to end on May 8, 2006, states
Infobae.  Ms. Carmen Susana Lomoro, the court-appointed trustee,
is tasked with examining the claims.  

The company can be reached at:
  
         Los Caminos del Vino S.R.L.    
         Avenida San Martin 77
         San Rafael
         Mendoza, Argentina

The trustee can be reached at:
          
         Carmen Susana Lomoro
         Las Heras 1687
         San Rafael
         Mendoza, Argentina


MILENIO CONSTRUCCIONES: Verification of Claims Ends May 5
---------------------------------------------------------
The verification phase for the claims submitted by Milenio
Construcciones S.A.'s creditors has started, Argentine daily La
Nacion reports.  The verification will end on May 5, 2006.  
Creditors who are unable to submit claims after the said date
will be excluded from receiving any distribution or payment that
the company will make.

Milenio Construcciones was declared bankrupt by Buenos Aires'
Court No. 8 with the assistance of Clerk No. 16.  The court made
the ruling in favor of the company's creditor, La Caja ART S.A.,
for nonpayment of $6,842.09.  The court selected Ms. Susana
Beatriz Gonzalez Cabrerizo as the company's trustee.

The debtor can be reached at:  

         Milenio Construcciones S.A.
         Carlos Antonio Lopez 357
         Buenos Aires, Argentina

The trustee can be reached at:

         Susana Beatriz Gonzalez  
         Guayaquil 236
         Buenos Aires, Argentina


NMC TRANS: Trustee Stops Verifying Claims After May 11
------------------------------------------------------
Mr. Hector Calle, the court-appointed trustee of NMC Trans Warp
S.R.L., has started verifying claims against the estate.  The
verification phase is set to end on May 11, 2006.

La Nacion relates that Buenos Aires' Court No. 23 approved the
company's petition to reorganize.

Clerk No. 45 assists the court in this case.

The debtor can be reached at:

         NMC Trans Warp S.R.L.
         Uruguay 228
         Buenos Aires, Argentina

The trustee, can be reached at:

         Hector Calle  
         Lavalle 1528
         Buenos Aires, Argentina


NOVEL TIME: Verification of Creditors' Claims Ends on April 10
--------------------------------------------------------------
The verification phase for the claims submitted by creditors
against bankrupt company Novel Time S.A. has started, Argentine
daily La Nacion reports.  The verification will end on April 10,
2006.  

Individual reports will be prepared out of the verified claims.  
These reports are due in court on May 26, 2006.

A general report in the case is also expected in court on July
24, 2006.

Novel Time S.A. was declared bankrupt by a Buenos Aires court.  
Ms. Rosa Isabel Santos was appointed as trustee.

The trustee can be reached at:
          
         Rosa Isabel Santos
         Avenida Corrientes 6031
         Buenos Aires, Argentina


SELECTRADE S.A.: Claims Verification Ends on May 8
--------------------------------------------------
Mr. Pablo Luis Peregal, the court-appointed trustee of
Selectrade S.A., will stop verifying claims against the Debtor  
on May 8, 2006.

La Nacion relates that Buenos Aires' Court No. 8 declared the
company's bankruptcy in favor of Ms. Mirta Nelida Cortes, the
company's creditor.  Ms. Cortes is owed $6,654.90 by the
company.

Clerk No. 15 assists the court in this case.

The debtor can be reached at:
         Selectrade S.A.
         Callao 850
         Buenos Aires, Argentina

The trustee can be reached at:

         Pablo Luis Peregal
         Av. Leandro N. Alem 651
         Buenos Aires, Argentina


SH SALUD: Claims Verification Deadline Is April 21
--------------------------------------------------
The verification of creditors' claims for the SH Salud S.R.L.
bankruptcy case is set to end on April 21, 2006, states
Argentine daily La Nacion.  

Buenos Aires' Court No. 21 declared the company bankrupt in
favor of Diagnostico Tesla S.A., the company's creditor.  Ms.
Maria Rajo was appointed as trustee.

Clerk No. 42 assists the court on this case.

The debtor can be reached at:

         SH Salud S.R.L.
         Velez Sarsfield 67
         Buenos Aires, Argentina

The trustee can be reached at:

         Maria Rajo
         Viamonte 2359
         Buenos Aires, Argentina


BUENOS AIRES: Fitch Says New Administration Won't Affect Ratings
----------------------------------------------------------------
The change in the administration in Buenos Aires, Argentina will
not spill into a credit risk.

On March 7, 2006, the city legislature voted to remove suspended
mayor of the city -- Anibal Ibarra -- as the majority members of
the commission of political judgment found him responsible for
the Crogmanon Case, the fire of a Buenos Aires nightclub in
December 2004.  The vice-mayor Jorge Telerman -- provisionally
in charge of the city's administration since Nov. 14, 2005 --
will become the mayor of the city and complete the mandate until
2007, when the new election of local authorities will take
place.

As Fitch mentioned on the last Buenos Aires's credit analysis,
the rating agency believes that this political fact will not
spill into a credit risk and expects continuity in general
fiscal and financial policies.

However, for Fitch, it is probable to expect some organizational
changes, with the new administration further focusing on the
infrastructure and social areas.  Most of the projects started
under Ibarra's administration should continue, especially the
goal of capital investments for around US$400 million budgeted
for 2006, since the new mayor was involved in the elaboration of
budget 2006.

Consequently, Fitch expects a further increase on expenditures,
mainly on investments in infrastructure, which will reduce the
fiscal result achieved on the last three years.  

Up to Dec. 31, 2005, the primary balance -- excluding interests
payment and amortizations -- recorded US$121.3 million, whereas
the financial balance was US$27.9 million if the interest
payments and amortizations are taken into account.

In 2005 the city continued reporting fiscal stability, and ended
2005 with a cash balance of US$592 million.  In Fitch's opinion,
the current healthy of the city's financial position will allow
the new mayor to execute his plans and meet 2006 debt services
of approximately US$211 million -- US$61 million in interests
and US$150 million of principal -- in a stable scenario of
exchange currency rate.

Fitch Ratings affirmed on Dec. 5, 2005, the 'B-' long-term
rating on the city of Buenos Aires.  The outlook was stable.  
The city's local currency long-term rating was also affirmed at
'B-', with a stable outlook.

The province was assigned a 'D' long-term default rating on Dec.
20, 2005.  Its local currency long term issuer default rating
was 'D'.  The province's US$2,700,00,000 senior unsecured bonds
was assigned a 'CCC+' rating.



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B E R M U D A
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ASP MANAGEMENT: Proofs of Claim to be Verified Until March 22
-------------------------------------------------------------
Proofs of claim from ASP Management Ltd.'s creditors will be
verified by Mr. Robin J. Mayor at Conyers Dill & Pearman -- the
company's liquidator -- until March 22, 2006.  Creditors must
send 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 Mr. Mayor by the said
date.  The liquidator may require the creditors to prove claims
personally or by their lawyers at the time and place that the
liquidator shall specify.  Creditors whose claims are not
verified will be excluded from receiving any distribution or
payment from the company.

A final general meeting is scheduled at 9:30 a.m. on April 12,
2006, at:

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

The meeting will be held 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 will be disposed of; and

    -- by resolution dissolving the company.

The company entered voluntary liquidation on Feb. 27, 2006.


CMG ASIA: Creditors Must Present Proofs of Claim by Mar. 24
-----------------------------------------------------------
Creditors of CMG Asia (Philippines) Holdings Limited are
required on or before March 24, 2006, to send 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 Robin J. Mayor at Conyers Dill & Pearman -- the liquidator of
the company -- or be disqualified from receiving any
distribution or payment from the company.

A final general meeting is scheduled at 9:30 a.m. on April 14,
2006, at:

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

The meeting will be held 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 will be disposed of; and

   -- by resolution dissolving the company.

The company started liquidating assets on March 8, 2006.


DIOGENES INVESTMENTS: Creditors Must File Claims by March 22
------------------------------------------------------------
Diogenes Investments Ltd.'s creditors must file their claims
with Robin J. Mayor at Conyers Dill & Pearman -- the liquidator
of the company -- by March 22, 2006, or be excluded from
receiving any distribution or payment that the company will
make.

Creditors must submit 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 the
liquidator.

A final general meeting is scheduled at 9:30 a.m. on April 13,
2006, at:

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

The meeting will be held 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 will be disposed of; and

   -- by resolution dissolving the company.

The company started winding up operations on March 2, 2006.


FIRST VIRGINIA: Creditors Must File Proofs of Claim by April 3
--------------------------------------------------------------
First Virginia Reinsurance Ltd.'s creditors have until April 3,
2006, to prove their claims to Messrs. Mike Morrison and Malcolm
Butterfield, the company's joint liquidators, or be excluded
from receiving any distribution or payment that the company will
make.

Creditors are required to 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 lawyers
(if any) to the liquidators.

The joint liquidators can be reached at:

        Mike Morrison
        Malcolm Butterfield
        KPMG Financial Advisory Services Limited
        P.O. Box HM 906
        Hamilton HM DX, Bermuda


HOLDINGS II: Creditors Given Until March 22 to Submit Claims
------------------------------------------------------------
Creditors of Holdings II Ltd. are given until March 22, 2006, to
submit claims to Mr. Robin J. Mayor at Conyers Dill & Pearman,
the liquidator of the company.  Creditors are required to send
their full names, their addresses and descriptions, the full
particulars of their debts or claims, and the names and
addresses of their lawyers (if any) to the liquidator.

The liquidator may require the creditors to prove their claims
personally or through their lawyers at the time and place that
the liquidator shall specify.  Failure to prove claims would
mean disqualification from receiving any payment or distribution
that the company will make.

A final general meeting be held at 9:30 a.m. on April 13, 2006,
at:

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

The meeting will be held 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.

Holdings II Ltd. started liquidating assets on March 2, 2006.


PA VENTURES: Creditors Must File Proofs of Claim by Mar. 22
-----------------------------------------------------------
Creditors of PA Ventures Limited are given until March 22, 2006,
to prove their claims to Mr. Robin J. Mayor at Conyers Dill &
Pearman, the company's liquidator, or be excluded from receiving
any distribution or payment that the company will make.

Creditors are required to 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 lawyers
(if any) to Mr. Mayor.

A final general meeting will be held on at 9:30 a.m. on April
12, 2006, at:

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

The meeting will be held 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 will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on March 6, 2006.


SPHYNX (BERMUDA): Court Set Mar. 24 Wind Up Petition Hearing
------------------------------------------------------------
A petition for the wind up of Sphynx (Bermuda) Ltd. was filed
before the Supreme Court of Bermuda on March 3, 2006.  The
petition is scheduled to be heard before the court at 9:30 a.m.
on March 24, 2006.  

Any creditor or contributory who wants to support or oppose the
petition may appear at the hearing by himself or his counsel.  
He must send by post to his intention to do so, as well as his
name and address of the person or the name and address of the
firm along with his signature or signatures of the attorney (if
any) not later than 5:00 p.m. on March 23, 2006.



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B R A Z I L
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BANCO PANAMERICANO: S&P Assigns B Rating with Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services assigned a ' B/Stable/B'
credit rating on Banco PanAmericano S.A.  

Major Rating Factors

Strengths:

    -- Long track record in the consumer finance segment,
    -- Ability to maintain good growth prospects, and
    -- Adequate profitability.

Weaknesses:

    -- Leveraged balance sheet and low liquidity level expected
       to be reinforced through the maintenance of part of the
       proceeds of the MTN program as liquidity,

    -- Higher credit risk of lending portfolio, and

    -- Exposure to fierce competition and margins pressure.

Rationale

The ratings on PanAmericano incorporate the bank's leveraged
balance sheet and its low liquidity levels, the increasing
credit risk of its loan portfolio, and -- like most small and
midsize banks -- PanAmericano's exposure to fierce competition
and the consequent pressure on margins.  These risk factors are
tempered by PanAmericano's long track record of 36 years in the
consumer finance segment, the bank's capable management team --
which has successfully led the bank's growth strategy -- and
PanAmericano's adequate profitability.

With total assets of BRL2,254 million -- equivalent to $960
million; exchange rate of $1 to BRL2,349 -- as of June 2005,
PanAmericano is a small bank positioned as the 28th-largest
private bank in Brazil.  The bank's operations are primarily
focused on the retail segment where the bank has accumulated its
experience.  The consolidated credit portfolio comprises mainly
vehicle financing and consumer finance/personal loans, which
together represented around 75% of total loans originated as of
September 2005.

PanAmericano is indirectly owned by Senor Abravanel -- artistic
name Silvio Santos -- who is a well-known TV anchor in Brazil
and owner of the second-largest TV broadcaster in the country-
Sistema Brasileiro de Televisao.  Silvio Santos built its track
record in the communication area with the creation of the TV
channel in 1975 and commerce and service areas through Lideranca
Capitalizacao and Bau da Felicidade -- companies that offer
saving products with a lottery feature -- in the same period.  
The bank benefits from being part of the Silvio Santos Group,
specifically regarding the group's image, which helps in raising
funds and advertising the bank's products.

The bank's portfolio is primarily retail oriented, which has
reduced concentration risk-the 10 largest clients represented
only 1% of total loans, and the 60 largest a low 1.4%.  

In the two years ended June 2005, the credit portfolio grew 22%
annually, with a focus on consumer finance, payroll discount,
and credit card operations -- when including ceded loans with
full recourse.  A change in the credit portfolio mix toward
riskier operations specifically credit card has increased credit
risk and affected asset quality indicators.  Net charge-offs
adjusted to total loans -- booked portfolio plus loans ceded
with full recourse -- increased to 4.8% based on annualized June
2005 figures from 4.6% in 2003 and 2004.  The ratio of
nonperforming loans -- NPLs; credits classified from 'E' to 'H'
for booked and ceded portfolio with full recourse -- to total
loans, booked and ceded loans with full recourse, rose to 8.4%
in June 2005 from 7.7% in 2004.  As of June 2005, coverage for
the booked and ceded portfolio reached 84%.

Nevertheless, current provisioning levels reflect the
expectations of a continuously buoyant economic environment, and
would not be sufficient to cover credit losses if macroeconomic
conditions were to deteriorate sharply.

Profitability is adequate -- ROA of 1.7% adjusted for ceded
loans results, and total credit portfolio ceded based on June
2005 annualized figures compared to approximately 1.2% in 2004
and 2003.  The improvement in profitability allows the bank to
gain scale and to compensate for margin pressure.  While
pressure on PanAmericano's net interest margin should improve in
the medium term, the bank must balance the risk on the return of
its credit portfolio and control its costs to sustain its
profitability levels.  The personnel and administrative costs
related to its expansion strategy delayed the improvement of its
efficiency ratio-noninterest expenses-to-revenues adjusted for
ceded portfolio reached a relatively high 68% based on
annualized June 2005 figures.

Standard & Poor's Ratings Services believes that management is
conscious of the need to keep costs under control, but due to
its expansion strategy-including the opening of new offices-it
is important for PanAmericano to maintain a sound pace of
business expansion to dilute its cost base.

Liquidity

Liquidity at PanAmericano is weaker than that of its peers; as
of June 2005, liquid assets covered a small 8% of its deposit
base.  Although PanAmericano generates an attractive loan
portfolio -- with strong ability to sell the portfolio to other
banks -- S&P expects liquidity levels to be reinforced and
leverage to reduce to support the vulnerability of the industry
and to sustain the expected business generation.  The ratings
incorporate the expectation that, as the bank intends, part of
the proceeds of the MTNs will reinforce the bank's liquidity,
which should reach a minimum of 30%-35% of the deposit base, as
expected for this rating category.

Outlook

The stable outlook reflects our expectation that the bank will
be able to successfully implement its growth strategy while
maintaining asset quality indicators aka NPLs in line with the
industry level.  S&P also expects the proceeds of the MTNs to be
used to improve liquidity measures, and profitability to be
maintained in the 1.5%-2% range.

The outlook could be revised to negative or the ratings could be
lowered if there is a significant deterioration in the bank's
asset quality ratios -- vis-a-vis its current levels; if
profitability ratios deteriorate due to higher credit risk; or
if the bank's liquidity and funding are pressured.

Conversely, the outlook could be revised to positive or there
could be an upgrade if PanAmericano is able to consistently
improve its asset quality indicators while increasing its
profitability and efficiency to levels consistent with its risk
profile, and if the bank maintains strong liquidity measures to
support the vulnerability of its industry.


BNDES: Alloting BRL99 Million to New Usina Santa Project
--------------------------------------------------------
The Board of Directors of the Brazilian Development Bank aka
BNDES approved a BRL99 million financing for Usina de Acucar
Santa Terezinha Ltda.

Framed within Finem aka Financing and Endeavors, the credit is
destined to the implementation of a new sugar and alcohol
production unit -- in the Parana municipality of Terra Rica --
bearing capacity to process up to 1.5 million tons a year and
will probably begin operations on the first semester of 2007.

The total investment will be of BRL186 million, given that BNDES
will be financing BRL23 million more within the Finame
Agricultural ambit -- Financing for Acquiring Machines and
Equipment -- while the company will invest BRL64 million with
their own resources.  Part of the investments will be used on
the plantation of 17,000 hectares of sugar cane.  With social
compensation, the project includes the municipality's health
system integration, through informatics network.

The company is controlled by Santa Terezinha Participacoes S/A,
a holding of the largest sucroalcooleiro -- involved in sugar
and alcohol fuel production -- group of the South Region.  The
organization already possesses four plants in the State of
Parana -- in Tapejara, Maringa, Paranacity and Ivate.  

With the beginning operations of the new plant in Terra Rica,
the total milling capacity will reach 9.1 million tons a year.

Santa Terezinha group is the largest exporter of type VHP --
Very High Polarization -- sugar that is used as raw material for
the production of other products.  During the harvest phase, it
opens opportunity more than 9.6 thousand direct jobs.  Its four
production units operate under a continuous schedule during the
entire harvest period, which normally goes from April to
December -- when the work system lasts 24 hours per day, divided
up into eight-hour shifts each.

The new unit in Terra Rica will generate approximately 1.2
thousand new job openings, given that 900 will be created within
the agricultural area and 300 within industrial production.  
Therefore, the number of direct job openings of the group will
reach 10.8 thousand.

Besides the five plants, Santa Terezinha group also has
Terminals in Maringa and Paranagua, two important logistics
units.  The Maringua Terminal comprises four warehouses, with
total warehouse capacity of 406 thousand tons of sugar, besides
a calcareous deposit, a fertilizer-mixture for the own use of
the company in its cultivation lands, and tanks for alcohol fuel
and diesel oil, with total capacity of 2.8 thousand cubic
meters.  At present, the Paranagua Terminal with an area built
to warehouse 4.6 thousand cubic meters is used to store
fertilizers to be used in the cultivation lands of the group.

                        *    *    *

As reported by Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.


TELEMAR GROUP: Posts BRL16,747 Million Net Revenue in 2005
----------------------------------------------------------
The Telemar Group customer base increased by 1.4 million during
the fourth quarter of 2005 -- 3.4 million in 2005 -- totaling
26.0 million customers by the end of the year, comprising:

-- Wireline: 14.9 million lines in service
    stable on the third quarter of 2005,

-- Wireless: 10.3 million subscribers
    +15% on the third quarter of 2005, and

-- Velox (ADSL): 0.8 million subscribers
    +10% on the third quarter of 2005.

Net revenues for the quarter was BRL4,385 million -- +3.6% on
third quarter of 2005 and +2.7% on the fourth quarter of 2004.
During the year, net revenue totaled BRL16,747 million -- +5.7%
on 2004.

Average revenue per user -- ARPU -- amounted to BRL85 for
wireline and BRL20 for wireless services.

Consolidated EBITDA totaled BRL1,685 million compared to
BRL1,748 million in the third quarter of 2005, which is -3.6%
and BRL1,721 million in fourth quarter 2004 (-2.1%).  For the
year, EBITDA totaled BRL6.765 million, +3.6% on 2004.

EBITDA margins were:

                     4Q04    3Q05   4Q05   2004   2005
  Tele Norte Leste   40.3%  41.3%  38.4%  41.2%  40.4%
  Telemar            40.0%  41.3%  38.4%  40.7%  39.9%
  Oi                  9.3%  22.6%  12.0%   4.1%  16.1%

Net income for the quarter reached BRL416 million compared to
BRL301 million in the third quarter of 2005, equivalent to
BRL1.09 per share -- US$0.48 per ADR.  For the year, net income
amounted to BRL1,114 million, increasing +48.3% on 2004,
equivalent to BRL2.92 per share -- US$ 1.20 per ADR.

Net Debt reached BRL6,083 million (0.90x EBITDA), down 7.7% from
September 2005.

Capital expenditures totaled BRL910 million in the quarter.  For
the year, capital expenditures totaled BRL2,398 million -- 14.3%
of net revenues -- compared to BRL2,063 million in 2004.

Free Cash Flow after Capex for the quarter was BRL948 million,
and totaled BRL3,460 million in 2005, a decrease of BRL534
million compared to 2004 figures.

The Boards of Directors of TNL and TMAR will submit in their
respective Annual Shareholders' Meetings the payment of
dividends/interest on capital on 2005 fiscal year results
totaling BRL785 million and BRL1,100 million, respectively.  
Considering the amounts already announced as interest on capital
during the year, complementary dividends proposed for TNL and
TMAR amount to BRL573 million and BRL116 million, respectively.

At the end of December 2005, the installed plant comprised
17,035 thousand lines, of which 14,858 thousand were in service
-- utilization rate of 87.2% -- including 11,619 thousand
residential, 2,621 thousand commercial and 618 thousand public
telephones.  

During the fourth quarter of 2005, 504 thousand accesses were
installed and 536 thousand disconnected -- 2,344 thousand /
2,702 thousand in 2005.

The average plant in service aka ALIS totaled 14,861 thousand
lines in the quarter and 14,986 thousand lines in the year of
2005 (-1.3%).  The decrease in ALIS for the year results mainly
from customer migration to mobile and broadband -- disconnection
of second line, used for dial up access to the internet.

Broadband Internet accesses aka ADSL totaled 805 thousand by the
end of the period, equal to 5.4% of the total wirelines in
service, with availability in 214 cities of Region I.  The ADSL
average plant reached 655 thousand lines in 2005 -- +79.6% on
2004.

At the end of the quarter, Oi had 10,343 thousand customers,
resulting from net additions of 1,362 thousand customers in
fourth quarter of 2005 -- nearly 41% of all net adds in Region I
-- increasing its market share to 26.3% of total subscribers in
Region I.

By year end 2005, the wireless penetration rate in Region I
reached 39.1%, compared to 29.9% in December 2004.

Of the net additions in the quarter, approximately 32% were in
postpaid and 68% in prepaid plans -- while the average mix for
Brazil was 23%/77%.  At the end of the year, the mix of Oi
subscribers was 82% on the prepaid plans and 18% on postpaid
plans.

In the year, Oi's average customer base totaled 8,603 thousand -
- +60.0% on 2004.  The 679 thousand disconnections in the
quarter represented 7.0% of the average base in fourth quarter
of 2005 and reflected primarily the disconnection of users who
joined the base during 2005 attracted by the strong reduction in
the low-end handset prices initiated by the competition.

Oi's annual churn rate in 2005 was 22.7%.  This is an increase
compared to the previous year (20.1%), but still remains below
the national average.

Consolidated gross revenues for the quarter were BRL6,202
million.  The 2.8% increase on third quarter of 2005 was driven
by the growth in mobile and data services.  For the full year
2005, the growth in consolidated gross revenues was 7.1% --
8.3%, ex-Contax.

Consolidated net revenues amounted to BRL4,385 million, up 3.6%
from third quarter of 2005.  In 2005, the consolidated net
revenues reached BRL16,747 million -- +5.7% on 2004.

Gross revenues from wireline services were stable on third
quarter of 2005 and increased by 1.3% in comparison with fourth
quarter of 2004.  For the year, the wireline service revenue
increased by 6.0%.

Local fixed-to-fixed -- monthly subscription, traffic,
installation fee: revenues amounted to BRL2,400 million in the
fourth quarter of 2005 and reached BRL9,478 million in 2005.

Monthly subscription fees were 1.3% lower than in the third
quarter of 2005, mainly as a result of the decreased number of
lines in service.  Compared to the fourth quarter of 2004, the
increase in revenue was 4.8%, chiefly due to tariff adjustments.  
For the year, subscription fees grew 11.4% based on higher
tariffs and represented 28.1% of consolidated revenues.

Revenues from local traffic decreased 1.2% in the quarter, due
to a lower number of business days -- 62 x 65 in 3Q05.  Compared
to 4Q04, revenues fell by 3.8%, due to reduced traffic in the
period.  The slight increase in revenues for 2005 (+0.6%)
reflects basically the adjustment in average tariffs and the
decrease in traffic (-9.3%).

Local fixed-to-mobile calls (VC1):

Revenues amounted to BRL687 million -- +1.3% on the third
quarter of 2005 due to a small increase in traffic.

The 2.0% decline from the fourth quarter of 2004 reflects lower
volumes in the period, mainly due to the migration to mobile-
mobile calls.  For the year, the 3.6% reduction is basically
related to lower traffic, still attributed to the migration to
mobile originated calls.

Domestic and International LD

There was an 8.5% decrease on the previous quarter -- and 3.4%
on the fourth quarter of 2004 -- but the comparable figure for
the third quarter of 2005 includes non-recurring adjustments of
+BRL49 million.

Excluding the adjustments, long distance revenues would have
registered a decrease of 2.9% on the third quarter of 2005,
basically due to a traffic reduction in the period -- caused by
fewer business days -- and to specific promotions.

In 2005, LD revenues were up by 8.1% on 2004 figures, influenced
by tariff adjustments.

Fixed-Mobile LD Calls (VC2/3)

Revenues increased by 93.6% -- +BRL79 million -- compared to the
previous quarter.  In the third quarter of 2005, however, there
was a non-recurring impact of -BRL68 million, which means an
adjusted increase of 7.3% in the fourth quarter of 2005.  
Revenues for the full year 2005 were down 15.6%.

Remuneration for Network Usage

There was a 5.8% reduction compared to the previous quarter
primarily due to the decrease in mobile-to-fixed traffic, driven
by the migration to mobile-mobile calls.

The decrease on fourth quarter of 2004 (-17.3%) is also
attributable to the 20% productivity factor applied over the
tariff for the use of local network (TU-RL).

Data Transmission Services

Revenues grew by 8.0% on the third quarter of 2005, mainly due
to the increased sales of Velox (ADSL) and IP services.  For the
year, the data services revenues increased by 28.2% -- ADSL
+73.8% and other services +13.8%.

Public Telephones

Revenues decreased 2.1% from the third quarter of 2005 -- -BRL6
million -- due to a slight reduction in the amount of cards
sold.  Compared to 4Q04, revenues grew 2.1% while for the year
revenues increased 9.2%, basically due to tariff adjustments.

In the fourth quarter of 2005, consolidated gross revenues from
wireless services were up by 24.2% on the third quarter of 2005,
reflecting the strong additions to Oi customer base in the
quarter.  The increase was driven by handset sales (+46.4%).

Compared to the fourth quarter of 2004, the 33.7% revenue growth
was led by mobile data and value added services (+55.1%) and
outgoing calls (+51.0%).

Revenues for wireless network usage in the fourth quarter of
2005, at BRL69 million after elimination of BRL169 million
related to TMAR, was stable in relation to the third quarter of
2005.

Oi's gross revenues totaled BRL1,175 million in the fourth
quarter of 2005 and net revenues reached BRL887 million --+21.9%
on the third quarter of 2005.

Average revenue per user (ARPU) reached BRL20.20 in the quarter,
down 1.9% from the third quarter of 2005 (BRL20.60).

Revenues from wireless data and value added services totaled
BRL57 million in the fourth quarter of 2005, showing the highest
annual growth among Oi's services -- 55.6% on the fourth quarter
of 2004.  They accounted for 7.5% of total service revenues in
the quarter.

The sale of 1,473 thousand handsets in the quarter resulted in
net revenue of BRL220 million -- +47.7% on the third quarter of
2005.

In 2005, Oi's gross revenues for wireless services -- excluding
long distance, advanced voice and Pegasus -- totaled BRL3,404
million -- +27.3% on 2004.  Services revenues grew 36.8% and
handset sales grew 2.6%.

Operating costs and expenses -- ex-depreciation and amortization
-- increased by 8.6% on the third quarter of 2005 -- +BRL214
million.  It should be noted that in the fourth quarter of 2005
there were non-recurring items, totaling BRL68 million.  They
refer to handset inventory write-offs -- handset costs, BRL47
million -- and to a provision for regulatory obligations --
other operating expenses, BRL79 million -- partly offset by a
reduction in interconnection costs -- -BRL58 million.

Excluding the non-recurring items, the increase (+5.9%) was
mainly driven by higher costs of goods sold related to the
growth in handset sales in the quarter.

With respect to the fourth quarter of 2004, expenses were up
5.9%.  The most significant variations in the expense lines
arose from the Contax spin-off, which mainly impacted third
party services -- up 39.2% -- and personnel expenses (-49.5%).

Interconnection

Costs decreased 2.5% from the third quarter of 2005 mainly due
to the settlement of claims with other operators -- a non-
recurring effect of BRL58 million.  The recurring increase of
7.1% is due to higher mobile interconnection charges.

For the year, interconnection costs fell 4.9%, mainly influenced
by the reduction of TU-RL -- 20% productivity factor -- and the
increase in Oi's market share.

Personnel

Personnel increased 9.3% on the third quarter of 2005,
reflecting a general revision of wages.  There were also higher
expenses for meal allowances that arose from the labor agreement
for 2006, which was executed in December 2005.

Compared to the fourth quarter of 2004, the decrease was
primarily due to the headcount reduction derived from the spin
off of Contax.

SMP Handset Costs and others

In the fourth quarter of 2005, a write-off for obsolete handsets
generated a non-recurring cost of BRL47 million.  It should be
noted that in the third quarter of 2005, there was a non-
recurring gain of BRL43 million.  Excluding these impacts, the
handset costs would have increased by 15.0% in the quarter --
BRL263 million in the fourth quarter of 2005 and BRL229 million
in the third quarter of 2005.  The recurring reduction over the
fourth quarter of 2004 was 15.2%.

During the year 2005, handsets costs were 10.4% lower than in
the previous year.  The lower costs for the handsets in dollars
and the average appreciation of the Real -- 16.8% in the year --
contributed to the decrease, despite the increase in sales
(20.0%).

Third Party Services

These services were up 9.3% (+BRL84 million) from the third
quarter of 2005 chiefly due to the increase in plant maintenance
(+BRL30 million), call center expenses (+BRL13 million), sales
commissions and logistics (+BRL10 million), consultancy and
legal support (+BRL9 million), and others -- +BRL22 million,
mainly building maintenance and electricity.

Related to the fourth quarter of 2004 and full year 2004, the
increases to the third party services line were mainly due to
call center expenses, plant maintenance, sales commissions and
logistics.

Marketing

Marketing increased by 39.1% on the third quarter of 2005 and
+45.9% on the fourth quarter of 2004, due to higher expenses to
consolidate the brands - Telemar, Oi, Velox and Oi Internet -
and sales promotions.  For the year, marketing expenses totaled
BRL292 million, representing 1.7% of the consolidated net
revenues -- 1.6% in 2004.

Provisions for Doubtful Accounts -- PDA

It represented 1.7% of consolidated gross revenues for the
quarter -- 2.1% on the third quarter of 2005 -- and 2.1% in the
year, 2.6% in 2004.

Other Operating Expenses (Revenues)

During this quarter, the company adopted a more conservative
position regarding the fulfillment of the targets established
under the concession agreement.  The impact of this charge --
relating to 2000/2005 -- was BRL54 million.

In light of a Resolution from Anatel in December 2005 --
inclusion of interconnection payments in FUST contributions --
the company reversed a revenue provision related to the FUST fee
from previous periods, which resulted in a non-recurring
additional charge of BRL25 million.  There was an additional
impact of BRL2.6 million for the quarter.

Excluding the two non-recurring charges, other expenses totaled
BRL164 million, down 23.4% quarter over quarter, due to a lower
provision for employee profit sharing.

Consolidated EBITDA reached BRL1,685 million, a 3.6% decrease
over the previous quarter and representing a margin of 38.4% on
net revenues -- 41.3% in the third quarter of 2005 and 40.3% in
the fourth quarter of 2004.

Adjusted for the BRL68 million non-recurring expenses in the
quarter, EBITDA would have been BRL1,753 million -- 40.0%
margin.

In 2005, consolidated EBITDA added to BRL6,765 million -- 40.4%
margin -- a 3.6% rise on the BRL6,531 million registered for the
previous year.

Oi recorded EBITDA of BRL107 million in the quarter with a
margin of 12.0% -- 22.6% on the third quarter of 2005 and 9.3%
on the fourth quarter of 2004.  Adjusted for the non-recurring
expenses in the quarter -- handset inventory write-off -- Oi's
EBITDA in the fourth quarter of 2005 would have reached BRL153
million -- 17.3% adjusted margin.

For the year 2005, EBITDA at Oi was BRL460 million -- 16.1%
margin.

Depreciation and amortization expenses totaled BRL836 million in
the fourth quarter of 2005, slightly below the third quarter of
2005 (-0.2%) and an increase of 0.8% on the fourth quarter of
2004.

Financial Results

Net financial expenses amounted to BRL429 million in the fourth
quarter of 2005, with these highlights:

  -- Exchange results on loans and financing, represented
     expenses of BRL199 million, BRL7 million increase in the
     quarter, arising from:

      * Foreign exchange and monetary variation expenses were
        BRL212 million, due to the impact of exchange variations
        of BRL194 million, on the debt, resulting from the
        devaluation in the real in the period (5.3%), and
        expenses with monetary variations amounting to BRL18
        million;

      * Currency swap revenues of BRL13 million arising from
        BRL236 million revenues with exchange variations and
        interest expenses- base CDI -- of BRL223 million.

-- Other financial expenses, of BRL261 million, showed an
    increase of BRL26 million on the third quarter of 2005
    due mainly to higher expenses from monetary restatements and
    tax provisioning -- BRL13 million -- as well as a foreign
    exchange restatement for international roaming expenses --
    BRL7 million.

Regarding the full year 2005, net financial expenses were 1.5%
lower than in 2004 due mainly to the combined effect of the
decrease in net debt for the period (-10.5%) and the increase in
the average interest rate for the year -- +2.8 p.p., from 16.2%
p.a. to 19.0% p.a.

Net Income

Consolidated net income for the quarter amounted to BRL416
million, equivalent to BRL1.09 per share -- US$0.48 per ADR.  In
2005, net income was BRL1.114 million, equivalent to BRL2.92 per
share -- US$ 1.20 per ADR.

Net income in the quarter benefited from the variation on the
equity accounting -- BRL62 million -- related to fiscal
incentives at TMAR, as well as from the reversal of income tax
and social contribution at Oi resulting from the incorporation
of Pegasus -- BRL172 million -- with a consolidated reduction to
income tax of BRL54 million.  Besides that, in the quarter, TNL
and TMAR declared IOC in the amounts of BRL30 million and BRL289
million, respectively.

Debt

Consolidated gross debt, including swap contract results,
decreased by 5.5% compared to September 2005, totaling BRL9,854
million, being 65% denominated in foreign currency -- 70% in
December 2004.  The decrease in total debt for the year 2005
reached BRL2,160 million (-18.0%).  The cash position in
December 2005 amounted to BRL3,771 million, representing 93% of
the short term debt.  Of note is the strong concentration in
short-term maturities -- BRL4.1 billion -- which shall be
amortized on the respective due dates.  In 2006, the company
shall continue to obtain new loans in its effort to reach the
best balance between cost and maturity, thus assuring strong
cash position.

Consolidated net debt of BRL6,083 million was down BRL509
million from the previous quarter (-7.7%), and BRL459 million
from December 2004.

Local currency loans totaled BRL3,412 million at the end of the
period, consisting mainly of a BRL2,015 million loan due to
BNDES at an average cost of TJLP + 4.2% p.a. and BRL1,225
million nonconvertible debentures at a cost of CDI + 0.7% p.a.,
maturing in June 2006.

Foreign currency loans in the amount of BRL4,490 million -
excluding BRL1,952 million relating to swap adjustment - bear
interest at contractual average rates of 6.1% p.a. for
transactions in US dollars, 1.5% p.a. for transactions in
Japanese yen and 10.2% p.a. for a basket of currencies (BNDES).
Approximately 70% of the foreign currency loans were subject to
floating interest rates.

From total foreign currency debt, nearly 97% had some kind of
hedge, of which approximately 76% were in foreign currency swap
transactions.  The average cost of swap transactions at the end
of the quarter was equal to 100.5% of the CDI -- which was 18.7%
p.a. on average in the fourth quarter of 2005.

During the quarter, TMAR obtained funds totaling BRL128 million,
partly from ABN AMRO -- BRL101 million -- and partly from the
BNDES -- BRL27 million.  At the end of the quarter, funds owed
by TMAR to TNL amounted to BRL334 million.

Amortizations in the fourth quarter of 2005 were approximately
BRL1,143 million, of which BRL728 million was principal and
BRL415 million were financial charges.

Capital Expenditures

During the quarter, capital expenditures amounted to BRL910
million, totaling BRL2,397 million for the year -- 14.3% of net
revenues.

Cash Flow

Consolidated cash flow from operations in the quarter reached
BRL1,905 million, totaling BRL5,916 million in 2005.  The free
cash flow, after investing activities, amounted to BRL948
million in the fourth quarter of 2005 -- +3.2% on the third
quarter of 2005.

For the year, the free cash flow after investing activities
totaled BRL3,460 million, a BRL558 million reduction from 2004
due, mainly, to the increase in investment activities for the
period -- BRL365 million -- and to changes in working capital,
BRL468 million.

The higher working capital needs for the year related basically
to the increase in taxes paid, resulting mainly from the growth
in taxable income at TMAR and the termination of the stock of
tax losses and negative social contribution basis.

                        *    *    *

As reported on Mar. 2, 2006, Standard & Poor's Ratings Services
said it placed the 'BB' ratings of Telemar Norte Leste S.A. on
CreditWatch with positive implications following the raising of
the foreign and local currency sovereign credit ratings on
Brazil.

Earlier on Tuesday, Standard & Poor's raised its foreign
currency rating on Brazil to 'BB' from 'BB-' and its local
currency rating to 'BB+' from 'BB'.  The outlook on the
sovereign rating is stable.

The transfer and convertibility aka T&C risk assessment for
Brazil was raised to 'BBB-', remaining two notches higher than
Brazil's foreign currency rating.

These actions reflect upward rating potential as a result of
lower perception of country risk associated with the economic
and working environment in which these entities operate.  S&P
expects to resolve the CreditWatch listings within the next few
weeks following a detailed analysis of how the improved
macroeconomic and financial environment affects these companies'
credit quality.

The revision in the T&C assessment on Brazil was made in
conjunction with the upward revision of the sovereign rating and
remains two notches above the sovereign foreign currency rating
on Brazil.  This assessment reflects the view that the
probability of the sovereign restricting access to foreign
exchange needed for non-sovereign debt service is lower than the
probability of the sovereign's defaulting on its foreign
currency obligations.  Ratings placed on CreditWatch include:

                                    To             From
-- Foreign currency
    corporate credit rating   BB/Watch Pos/    BB/Stable/

-- Local currency
    corporate credit rating   BB/Watch Pos/    BB/Stable/



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


ABN AMRO: Shareholder & Liquidators' Final Meeting on Mar. 31
-------------------------------------------------------------
The sole shareholder of ABN AMRO Structured Alternative
Strategies Fund will convene for a Final Meeting at the
company's registered office on March 31, 2006 at 11:00 a.m.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholder 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.

The liquidators can be reached at:

          Lawrence Edwards
          Jodi Jones
          P.O. Box 219 George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8694
          Fax: (345) 949 4590


ADVISORY CONVERTIBLE: Shareholders Final Meeting Set for Mar. 23
----------------------------------------------------------------
The shareholders of Advisory Convertible Arbitrage Fund (I) Inc.
will convene for a final general meeting on March 23, 2006, at
the registered offices of:

              Maples Finance Limited
              Queensgate House, George Town
              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:

              Jon Roney
              Johann Leroux
              Maples Finance Limited
              P.O. Box 1093 George Town
              Grand Cayman, Cayman Islands


ADVISORY LEVERAGED: Final General Meeting Set for Mar. 23
---------------------------------------------------------
The sole shareholder of Advisory Leveraged U.S. Equity Market
Neutral Fund Inc. will meet the company's liquidator for a final
general meeting on March 23, 2006, at the registered offices of:

            Maples Finance Limited
            Queensgate House, George Town
            Grand Cayman, Cayman Islands

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

The company's liquidators can be reached at:

            Jon Roney
            Johann Le Roux
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


ADVISORY U.S.: Shareholders' Final Meeting Scheduled for Mar. 23
----------------------------------------------------------------
Shareholders of Advisory U.S. Equity Market Neutral Fund
Overseas Fund, Ltd., will convene for a final general meeting on
March 23, 2006, at the registered offices of:

             Maples Finance Limited
             Queensgate House, George Town
             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:

            Jon Roney
            Johann Le Roux
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


ALBATROSS FINANCIAL: Invites Shareholders for Mar. 21 Meeting
-------------------------------------------------------------
Shareholders of Albatross Financial Services, Ltd., are invited
to attend an extraordinary final general meeting on March 21,
2006, at the registered offices of:

            Deutsche Bank (Cayman) Limited
            Elizabethan Square, George Town
            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 trustee can be reached at:

             David Dyer
             P.O. Box 1984 George Town
             Grand Cayman, Cayman Islands
             Tel: (345) 949 8244
             Fax: (345) 949 5223


BADANEG LTD: Shareholders' Final Meeting Scheduled for Mar. 21
--------------------------------------------------------------
Shareholders of Badaneg Ltd. will convene on Mar. 21, 2006, for
an extraordinary final general meeting at the registered offices
of:

            Deutsche Bank (Cayman) Limited
            Elizabethan Square, George Town
            Grand Cayman, Cayman

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 trustee can be reached at:

             David Dyer
             P.O. Box 1984 George Town
             Grand Cayman, Cayman Islands
             Tel: (345) 949 8244
             Fax: (345) 949 5223


BGG HOLDINGS: Creditors Must File Proofs of Claim by Mar. 20
------------------------------------------------------------
Creditors of BGG Holdings, Ltd., are required to submit
particulars of their debts or claims on or before March 20,
2006, to the company's appointed liquidators -- Robert W. Burke,
Jr. Failure to do so will exclude them from receiving the
benefit of any distribution that the company will make.

BGG Holdings started liquidating assets on December 12, 2005.

The company's liquidator can be reached at:

            Robert W. Burke, Jr.
835 Hamilton Street, 2nd Floor
Allentown, PA 18102
Tel: 610-774-2081
Fax: 610-774-2083


BLENTARP INVESTMENTS: Filing of Proofs of Claim Ends Mar. 20
------------------------------------------------------------
Creditors of Blentarp Investments Ltd. are required to submit
particulars of their debts or claims on or before March 20,
2006, to the company's appointed liquidators -- Ian Wight and
Stuart Sybersma of Deloitte & Touche.  Failure to do so will
exclude them from receiving the benefit of any distribution that
the company will make.

Blentarp Investments started liquidating assets on December 15,
2005.

The company's liquidators can be reached at:

             Ian Wight
             Stuart Sybersma
             Deloitte & Touche
             P.O. Box 1787 George Town
             Grand Cayman, Cayman Islands
             Tel: (345) 949 7500
             Fax: (345) 949 8258


BRAZILIAN FUTURE: Sets Mar. 23 Creditors' Claims Filing Deadline
----------------------------------------------------------------
Creditors of Brazilian Future Flows Ltd. are required to submit
particulars of their debts or claims on or before March 23,
2006, to Johann Le Roux and Richard Gordon, the company's
appointed liquidators.  Failure to do so will exclude them from
receiving the benefit of any distribution that the company will
make.

Brazilian Future Flows Ltd. started liquidating assets on
February 2, 2006.

The company's trustees can be reached at:

                  Johann Le Roux
                  Richard Gordon
                  Maples Finance Limited
                  P.O. Box 1093 George Town
                  Grand Cayman, Cayman Islands


CANTUS LIMITED: Files for Voluntary Liquidation
-----------------------------------------------
Cantus Limited started liquidating assets after the company's
sole shareholder passed on Feb. 3, 2006, a special written
resolution and an ordinary resolution for the company's
voluntary wind up.  Ms. Josephine Price was appointed as
liquidator.

The liquidator can be reached at:

         Josephine Price
    c/o M&C Corporate Services Limited
         P.O. Box 309 George Town
         Grand Cayman, Cayman Islands


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


AHMSA: Posts 7.5% Increase in Total Sales in 2005
-------------------------------------------------
Altos Hornos de Mexico, S.A. de C.V., posted an EBITDA of US$538
million in 2005, an amount higher than the obtained in 2004.  In
the same period, the company had total sales for MXN22,718
million -- an increase of 7.5% compared to 2004 -- and in
volume, it had sales for 2,807,000 metric tons of steel
products.

It had an operating income of MXN3 thousand 645 million with an
operating margin of 16.0%.  The net income was MXN2,738 million,
less than the obtained in 2004 for the effect caused by deferred
taxes.

In 2005, the production level of liquid steel had an increase on
7.7% compared to 2004.  As a result, the annual production was
3,244,000 metric tons.  In the same way, there was an increase
in the production of iron ore and coal.

Alonso Ancira -- Chairman of the Board -- said even that
international steel prices had a reduction of more than 20%
during 2005 AHMSA had positive results in production, sales and
income.

Ancira also informed that by virtue of an order issued by the
High Superior Court of Justice of the Common Pleas of the State
of Coahuila, the company Cerro de Mercado, S.A. de C.V., ended
the suspension of payments.  In the same way and according to an
agreement between the company and its creditors, the Court First
of the Common Pleas in Monclova issued the order for the lifting
of the suspension of payments of Minera Carbonifera Rio
Escondido aka MICARE, the main subsidiary of Altos Hornos de
Mexico.

The Chairman of the Board said that at the same time the
negotiations between AHMSA and its creditors have been advancing
in a positive way, and that the firm UBS Investment Bank has
been hired to work in the restructure of AHMSA's debt.  It is
expected to reach an agreement in a short term in order to end
the suspension of payments.

AHMSA and Subsidiaries is working to strengthen the self-supply
of its main raw materials such as iron ore and especially coal,
because these inputs represent a significant competitive
advantage for the company to reduce its dependence of external
fuel suppliers and reduce the impact for variations in raw
materials prices.

With this strategy, AHMSA advances in its plan to increase
operative and production efficiency with its current assets in
order to take advantage of its installed capacity of 4 million
metric tons of liquid steel per year and reduce proportionally
the fixed costs.

During 2006 AHMSA will invest US$400 million in its steel plants
and mines for the renewal of equipments, open new ore deposits
and modernize facilities such as the Continuous Casting
department and the Plate mill.

In the same direction, with the support of the government of the
state of Oaxaca and the Federal authorities, AHMSA has continued
with international negotiations to concrete the exploitation of
the iron ore deposit located in Santa Maria Zaniza, Oaxaca, a
zone that has been visited by investors from Europe, China and
other Asian countries.

Finally, the Board made an evaluation of the investments in
safety, mainly in the coalmines, that made possible the
participation of the volunteer rescue teams of MICARE and MIMOSA
that had a heroic and decisive contribution in the rescue labors
in the accident occurred in the coalmine of Pasta de Conchos,
property of Grupo Mexico.

Intensive training and the right equipment allowed the rescuers
to act quickly and safely in order to determine with technical
precision the existing conditions inside the damaged mine.  In
those terms, the Board decided to give a special recognition and
a bonus to all members of the rescue teams.

The following tables show the main results for the years 2004
and 2005:

  Concept        Jan-Dec 2005     Jan-Dec 2004       Variation
   
  Metric
  Tons of
  Steel Sold      2,806,938        2,531,101      +275,837  +10.9%
   
  Sales
  (millions
  of pesos)          22,718           21,128        +1,590   +7.5%
   
  Profit (Loss)
  from Operations
  (millions of
  pesos)              3,645            3,835          -190   -5.0%
   
  Net Income (Loss)
  for the Year
  (millions of
  pesos)              2,738            3,797        -1,054  -27.9%*
   
  EBITDA
  (millions of
  US dollars)           538              533            +5   +0.9%
   
  (*) Variation caused as an effect in deferred taxes.


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


MUSICLAND HOLDING: Curtis Approved as Debtors' Conflicts Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
gave Musicland Holding Corp. and its debtor-affiliates
permission to employ Curtis, Mallet-Prevost, Colt & Mosle LLP as
their conflicts counsel on a final basis.

As reported in the Troubled Company Reporter on Feb. 9, 2006,
the Debtors need Curtis Mallet-Prevost to handle matters which
cannot be handled by Kirkland & Ellis LLP -- the Debtors'
general bankruptcy counsel -- or other counsel, as a result of
an actual or potential conflict of interest issues.  The Debtors
believe that rather than resulting in extra expense to their
estates, the efficient coordination of efforts between K&E and
CMP will avoid unnecessary litigation, add to the effective
administration of the
Chapter 11 Cases and reduce the overall expense of administering
the Chapter 11 Cases.

Moreover, K&E and CMP will function cohesively to ensure that
legal services provided are not duplicative.

The current hourly rates charged by CMP are:

       Billing Category                           Range
       ________________                           _____
       Partners                                $495 to 675
       Counsel                                 $385 to 540
       Associates                              $240 to 495
       Paraprofessionals                       $120 to 170

According to Steven J. Reisman, Esq., a partner at CMP, CMP is a
"disinterested person," as that phrase is defined in Section
101(14) of the Bankruptcy Code, as modified by Section 1107(b).

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: Panel Wants to Conduct Rule 2004 Examination
---------------------------------------------------------------
The Official Committee of Unsecured Creditors seeks the Court's
permission, pursuant to Rules 2004 and 9016 of the Federal Rules
of Bankruptcy Procedure, to conduct examinations of and obtain
documents from certain persons and entities including, without
limitation:

    (a) certain present and former members of the Debtors'
        senior management and boards of directors;

    (b) certain officers and directors of Sun Music LLC, the
        controlling stockholder of the Debtors, and each of its
        owners, Sun Capital Partners III, LP, and Sun Capital
        Partners III, QP, LP;

    (c) the Trade Lien Creditors, certain trade creditors of the
        Debtors which allege a second priority security interest
        in the Debtors' inventory;

    (d) Best Buy Co., Inc., the prior owner of the Debtors until
        August 11, 2003; and

    (e) Harris Bank N.A., a lender, which had advanced
        approximately $25,000,000 to the Debtors under an excess
        inventory line of credit, that was guaranteed by the Sun
        Entities and was repaid prior to its maturity shortly
        before the Petition Date.

As previously reported, Best Buy acquired the Debtors in 2001
for approximately $$700,000,000.  Approximately two years later,
pursuant to a Stock Purchase Agreement, dated June 16, 2003, Sun
Music, an entity owned by SCP and SCPQ, acquired the Debtors
from Best Buy for $1 plus the assumption of substantially all of
the Debtors' liabilities.

Prior to the Petition Date, the Debtors entered into a number of
loan agreements to address their cash needs.

On November 3, 2003, the Debtors entered into a Security
Agreement with the Trade Lien Creditors, whereby the Trade Lien
Creditors were granted a security interest in the Debtors'
inventory to secure debt owed to those creditors.  Pursuant to
an Intercreditor Agreement entered into with the Lenders, the
TLC Security Interest was made subordinate in priority to the
security interest granted in favor of the Lenders.  According to
the Debtors, the Trade Lien Creditors were owed approximately
$186,270,502 as of the Petition Date.

According to Mark T. Power, Esq., at Hahn & Hessen LLP, in New
York, while the Committee desires to conduct a thorough
examination of the Debtors' material prepetition activities and
relationships, its examinations will be principally focused on
these lines of inquiry:

    (a) Debtors' Senior Management and Directors

        The Committee desires to investigate the prepetition
        activities and decisions of the Debtor's senior officers
        and members of the Board of Directors, particularly with
        respect to the Debtors' decision to enter into the TLC
        Security Agreement with the Trade Lien Creditors and the
        decision to prepay the loan from Harris Bank, as certain
        Directors may have breached their duty of loyalty by
        directing the Debtors to prepay Harris Bank in order to
        ensure that the Sun Entities would not be called upon to
        honor their guaranty;

    (b) The Sun Entities

        In addition to the transaction concerning Harris Bank,
        the Committee desires to investigate the prepetition
        transactions between the Sun Entities and the Debtors,
        including any management fees or other payments that the
        Sun Entities received from the Debtors, any
        representations or promises that the Sun Entities may
        have made to the Debtors and any public statements or
        other representations made by the Sun Entities with
        respect to supporting the Debtors.  The Committee
        intends to determine whether the fees charged by the Sun
        Entities to the Debtors were reasonable in comparison to
        any value given by the Sun Entities to the estates and
        whether the Debtors' management or board breached any
        fiduciary duties by paying those fees.  The Committee
        also desires to investigate the details concerning Sun
        Music's acquisition of the Debtors and representations
        or promises made in connection therewith.

    (c) The Trade Lien Creditors

        Consistent with its fiduciary duties, the Committee
        desires to investigate a number of areas with respect to
        the Trade Lien Creditors, including:

           i. Preferential Transfers

              The Committee desires to investigate whether the
              Trade Lien Creditors received any preferential
              transfers under Sections 547 and 550 of the
              Bankruptcy Code, including any improvements in
              their collateral positions, both on an individual
              and aggregate basis, between the 90th day prior to
              the Petition Date and the Petition Date;

          ii. Individual Credit and Return Policies

              Based on a review of the TLC Security Agreement,
              it appears that the extent of the Trade Lien
              Creditors' obligations is governed by their
              individual credit agreements and return policies
              with the Debtors.  The Committee desires to review
              those individual agreements, including the
              Debtors' right to return any obsolete or outdated
              merchandise for full credit.

         iii. Verification that Specific Trade Lien Creditors
              Are the Actual Suppliers

              Based on a review of the TLC Security Agreement,
              only the specific corporate entities that are
              signatories to the Agreement belong to the pool of
              creditors with a security interest in the Debtors'
              inventory.  The Committee intends to verify that
              no other affiliated entities that have sold goods
              to the Debtors are improperly seeking to elevate
              their status from unsecured to secured.

          iv. Fraudulent Conveyances and Breach Claims

              The Committee understands that the Debtors agreed
              to enter into the TLC Agreement based on certain
              continuing commitments by the Trade Lien Creditors
              to extend credit terms to the Debtors.  The
              Committee intends to investigate whether in fact
              the Trade Lien Creditors complied with these
              commitments and whether any fraudulent conveyance
              or breach claims may exist as a result thereof;
              and

           v. Other Potential Claims

              The Committee also seeks authorization to conduct
              Rule 2004 investigations in order to discover
              information supporting potential claims against
              the Trade Lien Creditors in connection with any
              collusive or wrongful conduct they may have
              engaged in to the detriment of the Debtors and in
              violation of any federal or state laws.

     (d) Best Buy

         The Committee desires to investigate the prepetition
         transactions and relationship between Best Buy and the
         Debtors, including whether any intercompany
         transactions were entered into between Best Buy and the
         Debtors, which were unfair or detrimental to the
         Debtors at a time when the Debtors were insolvent or
         rendered insolvent thereby.
         
         Those improper transactions may give rise to potential
         claims against Best Buy or the senior officers and
         directors of the Debtors at the time.

Mr. Power asserts that there is good cause for allowing the
requested discovery because it is necessary to determine the
facts and circumstances relating to the payoff of the Harris
Loan, the Sun Entities role in the Debtors' affairs, the Sun
Entities role in causing the Debtors to file for bankruptcy, the
propriety of the Trade Lien Creditors' secured position, the
sale of the Debtors to Sun Music by Best Buy, and the propriety
of the prepetition actions taken or not taken by the Debtors'
senior officers and board of directors.

                   Sun Entities & Directors Object

Norman N. Kinel, Esq., at Dreier LLP, in New York, argues that
Bankruptcy Rule 2004, while admittedly broad, does not allow
unlimited discovery.  "It provides a party with a means of
obtaining necessary discovery concerning matters affecting the
administration of a debtor's estate or otherwise relevant to a
case; it should not, however, enable a party to seek multiple
bites at the apple in an effort to cobble together some basis
for further unproductive litigation."

Mr. Kinel tells the Court that the Committee has already
obtained discovery relating to some of the same topics it now
purportedly wishes to investigate via the 2004 Application.  
According to Mr.
Kinel, the duplicative nature of the Committee's requests may be
a result of the fact that the Committee is represented by two
separate firms:

    (1) Olshan Grundman Frome Rosenzweig & Wolosky LLP, which
        filed an objection to the DIP Financing Motion and took
        discovery; and

    (2) Hahn & Hessen LLP, which now seeks discovery via the
        2004 Application.

"Whether this is an instance of the left hand not knowing what
the right hand is doing or not, the Sun Entities should not be
required to shoulder the burden of seriatim discovery," Mr.
Kinel says.

The Sun Entities, together with some members of the Board of
Directors of Musicland Holding Corp. -- Marc J. Leder, Rodger R.
Krouse, Clarence E. Terry, T. Scott King, Jason Neimark, and
James D. Allen -- also complain that the scope of the requested
discovery is unreasonably open-ended.  This request clearly goes
too far, Mr. Kinel says.

At a minimum, the Sun Entities and the Directors contend, the
Court should not allow the proposed discovery to commence absent
at least clarification and reasonable assurances concerning the
scope of that discovery.

Specifically, the Sun Entities and the Directors ask the Court
to:

    -- deny the 2004 Application altogether with respect to the
       Sun Entities and the Directors, or

    -- should the Court determine that additional discovery is
       proper, require the Committee to narrow the scope and set
       appropriate parameters of the propose discovery before
       allowing any Rule 2004 discovery to commence with respect
       to the Sun Entities and the Directors.

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)


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


PETROBRAS ENERGIA: Begins Cojedes Natural Gas Drilling Project
--------------------------------------------------------------
Brazil's Petrobras Energia SA has started drilling its first
natural gas exploration in Cojedes, Venezuela, the ABN reports.

An event to mark the start of drilling was held in Romulo
Gallegos municipality and attended by Petrobras' country
manager, Gerson Faria Fernandez, and Cojedes governor, Jhonny
Yanez Rangel, the ABN reports.

The well will be drilled with a Saxon 126 type C drill that can
reach 15,000 feet.

Petrobras and Venezuela's state oil firm Petroleos de Venezuela
signed an agreement for joint natural gas exploration and
production in February 2005, Business News Americas relates.

                        *    *    *

As reported on Feb. 6, 2006, Standard & Poor's Ratings Services
said that its ratings on Petrobras Energia S.A. (PESA; B/Watch
Neg/--) would not be affected by the company's announced
accounting adjustment that will be reflected in the financial
statements as of Dec. 31, 2005.  Net worth will decrease by
approximately $60 million as a result of a provision of $140
million against its Venezuelan assets to adjust their expected
recovery value, and the reversal of certain allowances for tax
credits for about $83 million.

Since the above-mentioned accounting adjustments do not imply
cash movements, they do not have an impact on the ratings on
PESA at this point.  Nevertheless, in line with S&P's concerns,
the adjustments reflect lower than previously expected future
cash generation due to changing business conditions in
Venezuela.  The ratings will remain on CreditWatch Negative,
reflecting the uncertainties of oil and gas concessions'
renegotiation in Venezuela.


* LATIN AMERICA: S&P Lists Companies with Low B Ratings
-------------------------------------------------------
Standard's & Poor assigned identifies Latin American nations and
companies with below investment ratings:

  Republic of Colombia

    * BB/Positive  

  Republic of Peru

    * BB/Positive   

  Federative Republic of Brazil

    * BB-/Positive

      Usinas Siderurgicas de Minas Gerais S.A.
   
        -- BB/Positive  
  
      Eletrobras - Centrais Eletricas Brasileiras S.A.

        -- BB-/Positive  

  Mexican companies:

      Xignux, S.A. de C.V.
   
        -- BB-/Positive    

      Axtel, S.A. de C.V.

        -- B+/Positive   

      Espirito Santo Centrais Eletricas S.A.   

        -- B+/Positive   

      Net Servicos de Comunicacao S.A.   

        -- B+/Positive   

      Pan American Energy LLC  

        -- B+/Positive    

      RBS Participacoes S.A.  

        -- B-/Positive    

Globally, fewer entities (332) were poised to benefit from
potential upgrades in February compared with 349 in January,
though this number is higher than the 321 recorded a year ago.
Sectors such as banks, insurance, and sovereigns had the highest
propensity for potential upgrades, based on the outlook and
CreditWatch distribution.  As a share of the total rated
population, banks, chemicals, packaging, and environmental
services and healthcare appeared favorably poised.  Even though
credit fundamentals remain benevolent at this late stage of the
credit cycle, the roster of issuers expected to benefit from
potential upgrades will likely dwindle over time.  Factors that
are supportive of potential upgrade momentum are weakening from
peak levels.  Credit spreads, which have already expanded from
recent lows, will maintain their slow upward creep in the next
12 months as markets re-price risk.  Furthermore, a pickup in
debt-financed mergers and acquisitions could also constrain
credit-quality improvement, as it is a break from the balance-
sheet conservatism that characterized corporate behavior during
the recent deleveraging cycle.  A higher volume of low-grade
issuance-resulting in part from increased leveraged buyout
activity-also serves as an early warning of default pressure in
2006 and beyond, though the increases are still a fraction of
long-term default rates.  Furthermore, corporate profitability
will diminish relative to that of prior years as input costs
increase and earnings decelerate in a macroeconomic environment
characterized by less-robust GDP growth and rising prices.

Entities with either a positive outlook or with ratings on
CreditWatch with positive implications are a good leading
indicator of actual upgrades.  A long-term study published by
Standard & Poor's Global Fixed Income Research corroborates this
unequivocally (see report titled "CreditWatch and Ratings
Outlooks: Valuable Predictors of Ratings Behavior," published
May 26, 2005, on http://www.standardandpoors.com/gfiras well as  
on RatingsDirect).  CreditWatch status and outlooks are strong
predictors of ratings behavior-both in the aggregate as well as
when broken out by rating category, region, or sector. Among all
issuers with ratings on CreditWatch with positive implications,
70% are upgraded.  Positive rating outlooks result in upgrades
44% of the time. As of Feb. 26, 2006, 332 entities appear well
placed for potential upgrades compared with the 349 reported in
the previous report.  Consumer finance companies were also well
placed but only accounted for a handful of issuers.  Indeed, in
all four sectors, the proportion of issuers listed with a
positive bias (i.e., a positive outlook or ratings on
CreditWatch with positive implications) is currently at more
elevated levels than has historically been recorded,
highlighting the potential improvement in credit quality.  Since
the previous report, the sectors that have shown the biggest net
increase in the absolute number of potential upgrades are
insurance, utility, and sovereigns.

The highest potential for upgrades was seen among issuers rated
'B+', which constituted 17% of total potential upgrades.
Speculative-grade rated entities ('BB+' or below) appeared more
likely to benefit from upgrades, constituting 55% of the total
number of entities.  Of the 332 entities on the current list,
100 are members of various Standard & Poor's equity indices. By
comparison, 636 entities were at risk for potential downgrades
across the rating designations 'AAA' to 'B-'.





                                          - - - - - - - -



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. Lyndsey 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
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Information contained herein is obtained from sources believed
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