TCRLA_Public/060328.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 28, 2006, Vol. 7, Issue 62

                            Headlines

A R G E N T I N A

BANCO DE LA NACION: Says Bad Debts Dropped 58% in 2005
BANCO HIPOTECARIO: Argentina's Upgrade Cues S&P to Up Ratings
LINTEK S.A.: Files Reorganize Petition in Buenos Aires Court
MARIO PASCUAL: Trustee Verifies Creditors' Claims Until April 20
MEVE S.A.: Trustee Verifies of Proofs of Claim Until June 12

ROHN SRL: Claims Verification Deadline Is June 8
SANTA FE 2081: Verification of Claims' Deadline Is April 17

* ARGENTINA: Meets Uruguay President Tomorrow Over Mill Dispute

B E R M U D A

ACBL HIDROVIAS: Liquidator Verifies Proofs of Claim Until Apr. 7
BALDWIN TECHNOLOGY: Creditors Must Submit Claims by April 5
CISCO SYSTEMS: Creditors Have Until April 12 to Submit Claims
GALVEX HOLDINGS: Committee Taps DLA Piper as Bankruptcy Counsel
GALVEX HOLDINGS: Galvex Capital Wants DiConza Law as Co-Counsel

GREAT ALLIANCE: Holds Final General Meeting on April 18

B O L I V I A

* BOLIVIA: Refuses Free Trade Deal with the United States

B R A Z I L

BANCO CRUZEIRO: Raises US$41MM from Issuance of Overseas Bonds
CVRD: Expands Alumina Production Capacity to 4.4MM Tons Per Year
CVRD: Warns Against Chinese Govt's Iron Ore Price Intervention
ELETROBRAS: Restructuring of Five Distributors Nears Conclusion
GLOBOPAR: S&P Upgrades Currency Credit Ratings to BB- from B+

VARIG S.A.: Court to Consider Permanent Injunction on April 27

C A Y M A N   I S L A N D S

ALPHAGEN ARNEB: Liquidator Ceases Validating Claims
SYSTEIA CONVERTIBLE: Liquidator Stops Accepting Proofs of Claim
TAYLOR OIL: Verification of Creditors' Proofs of Claim Ended
TITAN SOUTHERN: Appoints New Liquidators for Voluntary Wind Up
UBS CURRENCY: Filing of Creditors' Claims Ended

C H I L E

ENDESA CHILE: Inks Pact with Chilectra & Universidad Catolica
ENDESA CHILE: Posts CLP110,623 Million Net Income in 2005

C O L O M B I A

* COLOMBIA: Central Bank Implementing Stricter Monetary Rules
* COLOMBIA: Improving Liquidity Prompts S&P's Currency Ratings

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Holding Apr. 25 Webcast of First Quarter Results

J A M A I C A

KAISER ALUMINUM: Barneson Cancels 22,802 Shares of Common Stock

M E X I C O

BANORTE: S&P Raises Foreign Currency Rating to BBB- from BB+
GRUPO GIGANTE: Plans to Sell US$250MM of 10-Year Callable Bonds
GRUPO MEXICO: Workers Strike at La Caridad Mine
SATMEX: Receives US$350 Million Bid from SES Americom and Medcom

P E R U

SIDERPERU: Aceros Arequipa Not Interested in Shares Sell-off

P U E R T O   R I C O

AOL LATIN: Files Monthly Operating Report for January 2006
G+G RETAIL: Court Approves Davis & Gilbert as Corporate Counsel
MUSICLAND HOLDING: Nine Landlords Balk at Proposed Cure Amounts

U R U G U A Y

* URUGUAY: Meets Venezuelan President Tomorrow Over Mill Dispute
* URUGUAY: Metsa-Botnia Temporarily Halts Pulp Mill Construction

V E N E Z U E L A

* VENEZUELA: Reaches Temporary Accord with U.S. on Airline Ban
* VENEZUELA: Shuts Down Exxon's La Ceiba Oil Operations

                         - - - - -


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


BANCO DE LA NACION: Says Bad Debts Dropped 58% in 2005
------------------------------------------------------
Banco de la Nacion SA, Argentina's biggest bank, said in a
statement that its past-due debts declined by 58% last year to
988 million pesos (US$321.3 million), marking a third straight
year of big declines.

The bank said in its statement it has now brought its past-due
debt load down from ARS3.261 billion at the end of 2002.  The
bank was forced during the financial crisis of 2001 and 2002 to
take out massive discount loans from the Argentine Central Bank.

As of Dec. 31, 2005, the bank's total assets total ARS46.03
billion, where past-due debts represented 2.1% of that figure.

Banco Nacion general manager Juna Carlos Fabrega described the
result as "the culmination of a process of negotiation with
those businesses that registered past-due debts as a direct
result of the systemic crisis of 2001."  This was achieved
through out-of-court restructurings and through negotiations
assisted by the Economy and Planning Ministries.

The bank entered into a restructuring of its finances through a
January 2003 accord with the International Monetary Fund.
President Eduardo Duhalde's government committed to take steps
toward a restructuring of the bank, a plan that was thought to
possibly include a partial privatization.  But President Nestor
Kirchner, who came to power in May of that year, resisted all
restructuring plans and nothing ever came of the promises
Argentina made to the IMF, Dow Jones Newswires relates.

                        *    *    *

Moody's Investor Service assigns these ratings to Banco de la
Nacion:

         -- Foreign LT Bank Deposits, Caa1
         -- Senior Unsecured Debt, WR
         -- Bank Financial Strength, E
         -- Short Term, NP


BANCO HIPOTECARIO: Argentina's Upgrade Cues S&P to Up Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services raised the foreign and local
currency counterparty credit ratings on Banco Hipotecario S.A.
At the same time, Standard & Poor's placed the ratings on
several Argentine entities on CreditWatch with positive
implications.  These rating actions follow the upgrade on the
Republic of Argentina.

Earlier, S&P raised our global foreign and local currency
ratings on Argentina to 'B' from 'B-' and the ratings on the
national scale to 'raAA-' from 'raA', reflecting Argentina's
improved external and fiscal flexibility.

The outlook on the sovereign rating is stable.

S&P's transfer and convertibility risk assessment for Argentina
was raised to 'BB-', two notches higher than Argentina's foreign
currency rating.

S&P raised the rating on Banco Hipotecario one notch to
'B/Stable/--', in tandem with the sovereign upgrade on
Argentina, reflecting the close linkage between the credit
quality of the sovereign and that of its financial system.

"While the upgrade on the sovereign reflects our perception of a
lower default risk for the country, it does not necessarily
imply a more favorable business environment for private entities
operating in Argentina," said Standard & Poor's credit analyst
Marta Castelli.

"We are currently performing a detailed analysis of how the
improved macroeconomic and fiscal environment affects these
entities' credit quality.  The CreditWatch placements reflect
upward rating potential if the result of the analysis is a
perception of lower country risk associated with the economic
and working environment in which these entities operate.  At the
same time, we will be reviewing the national scale ratings of
corporations and banks operating in the country," Ms. Castelli
said.

S&P expect to resolve the CreditWatch listings and any potential
changes in national scale ratings within the next few weeks.

Ratings on companies in the electric sector as well as ratings
on companies operating in the regulated energy markets were not
placed on CreditWatch as the upgrade on the sovereign rating
does not imply a lower perception of regulatory risk for those
sectors.  The ratings on entities operating in such segments
remain constrained by high political and regulatory risk,
increasing concerns regarding power supply in Argentina, and
their dependence on tariff increases and contract renegotiations
for sustained credit quality.


LINTEK S.A.: Files Reorganize Petition in Buenos Aires Court
------------------------------------------------------------
A court based in Buenos Aires is studying the request for
reorganization submitted by local company Lintek S.A., Infobae
reports.

The report adds that that the company filed for reorganization
after defaulting on its debt payments.

The debtor can be reached at:

         Lintek S.A.
         Hipolito Irigoyen 1544
         Buenos Aires, Argentina


MARIO PASCUAL: Trustee Verifies Creditors' Claims Until April 20
----------------------------------------------------------------
Creditors' claims against Mario Pascual Busatta e Hijos S.R.L.
will be verified until April 20, 2006.  Court-appointed trustees
Estudio Contable Lagorio-Buchara-Sbacco, Contadores Eduardo
Javier Lagorio and Jorge Rodolfo Buchara are tasked with the
verification.

Infobae relates that validated claims will be presented in court
as individual reports on June 5, 2006.

The submission of a general report will follow on July 18, 2006.

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

The debtor can be reached at:

         Mario Pascual Busatta e Hijos S.R.L.
         Rivadavia 1261
         Zarate, Buenos Aires
         Argentina

The trustee can be reached at:

         Estudio Contable Lagorio-Buchara-Sbacco
         Contadores Eduardo Javier Lagorio
         Jorge Rodolfo Buchara
         19 de Marzo 837
         Zarate, Buenos Aires
         Argentina


MEVE S.A.: Trustee Verifies of Proofs of Claim Until June 12
------------------------------------------------------------
Reinaldo Cesar Pireni, court-appointed trustee, has started
verifying claims against Meve S.A.  Verification will end on
June 12, 2006.

La Nacion relates that Buenos Aires' Court No. 6 declared the
company bankrupt in favor of Banco Suquia, whom the company owes
$182,084.23.

Clerk No. 11 assists the court in this case.

The debtor can be reached at:

         Meve S.A.
         Viamonte 749
         Buenos Aires, Argentina

The trustee can be reached at:

         Reinaldo Cesar Pireni
         Callao 930
         Buenos Aires, Argentina


ROHN SRL: Claims Verification Deadline Is June 8
------------------------------------------------
The verification of creditors' claims for the Rohn S.R.L.
insolvency case is set to end on June 8, 2006, states La Nacion.
The court-appointed trustee, Analia Chelala, is tasked with the
verification of the claims.

According to La Nacion, Buenos Aires Court No. 25 handles the
company's case with the assistance of Clerk No. 49.

An informative assembly is scheduled on March 9, 2007.

The debtor can be reached at:

         Rohn S.R.L.
         2 de Abril y General Paz
         Barrio Piedrabuena, Edif. 12 A
         Buenos Aires, Argentina

The trustee can be reached at:

         Analia Chelala
         Corrientes 2335
         Buenos Aires, Argentina


SANTA FE 2081: Verification of Claims' Deadline Is April 17
-----------------------------------------------------------
The verification of creditors' claims for the Santa Fe 2081
S.R.L. bankruptcy case will end on April 17, 2006, states
Infobae.

Donato Antonio Sarcuno, the court-appointed trustee tasked with
examining the claims, will submit the validation results as
individual reports on May 31, 2006.  He will also present a
general report in court on July 27, 2006.

Infobae adds that a Buenos Aires court handles the company's
bankruptcy case.

The trustee can be reached at:

         Donato Antonio Sarcuno
         Bernardo de Irigoyen 330
         Buenos Aires


* ARGENTINA: Meets Uruguay President Tomorrow Over Mill Dispute
---------------------------------------------------------------
Argentine President Nestor Kirchner and his Uruguayan
counterpart, Tabare Vazquez, will meet Wednesday in Uruguay to
discuss the disputed construction of two pulp mills along the
two countries' border, Dow Jones Newswires reports.

As previously reported, the Argentine government and some
environmental groups have been protesting Uruguay's pulp mill
construction along the border.  Protests erupted from the
Argentine side blocking the roads leading to Uruguay.

The protesters alleged that the US$1.6 billion two pulp mills
will cause water and air pollution due to their chlorine
bleaching processes.  Uruguay has already conceeded to a 90-day
extension to allow for an environmental study of the project.
Last week, the blockades were ended for an indefinite period to
give way to negotiations.

                        *    *    *

Fitch Ratings assigns these ratings on Argentina:

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

                        *    *    *

Fitch Ratings assigns these ratings on Uruguay:

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


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


ACBL HIDROVIAS: Liquidator Verifies Proofs of Claim Until Apr. 7
----------------------------------------------------------------
Michael Morrison -- the liquidator of ACBL Hidrovias, Ltd. --
will verify claims from the company's creditors until April 7,
2006.  Mr. Morrison is requiring creditors to submit on or
before the said date their full names, addresses, their
descriptions, the full particulars of their debts or claims, and
the names and addresses of their solicitors (if any).

Creditors may prove claims personally or through their
solicitors at the time and place that Mr. Morrison will specify.

A final general meeting will be held on April 19, 2006, at 10:00
a.m. at KPMG Financial Advisory Services Limited 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.

ACBL Hidrovias, Ltd. started liquidating assets on March 13,
2006.

The liquidator can be reached at:

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


BALDWIN TECHNOLOGY: Creditors Must Submit Claims by April 5
-----------------------------------------------------------
Creditors of Baldwin Technology Limited are required to submit
proofs of claims against the company to the liquidator -- Robin
J. Mayor.  Creditors must submit to Mr. Mayor on or before the
said date their full names, addresses, their descriptions, full
particulars of their debts or claims, and the names and
addresses of their lawyers (if any).  The liquidator may require
the creditors to prove claims personally or through their
lawyers at the time and place that the liquidator will specify.
Creditors with unverified claims will be excluded from receiving
the benefit of distribution that the company will make.

A final general meeting is scheduled on April 27, 2006, at 9:30
a.m. at the offices of Messrs. Conyers Dill & Pearman 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; and

   -- 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 wind up on March 13, 2006.

The liquidator can be reached at:

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


CISCO SYSTEMS: Creditors Have Until April 12 to Submit Claims
-------------------------------------------------------------
Creditors of Cisco Systems Insurance Services Ltd. are given
until April 12, 2006, to present proofs of claim to the
company's liquidator -- Robin J. Mayor, at Conyers Dill &
Pearman.

Creditors must submit their full names, addresses, their
descriptions, the full particulars of their debts or claims, and
the names and addresses of their lawyers.

Mr. Mayor may required the creditors to prove claims personally
or through their lawyers at the time and place that the
liquidator shall specify.  Creditors who are unable to have
their claims verified will be excluded from the benefit of
receiving any distribution the company will make.

A final general meeting will be held on April 26, 2006, at 9:30
a.m. 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.

The company started winding up operations on March 17, 2006.


GALVEX HOLDINGS: Committee Taps DLA Piper as Bankruptcy Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Galvex Holdings Limited and its debtor-affiliates' chapter 11
cases asks the U.S. Bankruptcy Court for the Southern District
of New York for permission to employ DLA Piper Rudnick Gray Cary
US LLP as its bankruptcy counsel.

DLA Piper will:

    (a) advise the Committee with respect to its rights, duties
        and powers in the Debtors' chapter 11 cases;

    (b) assist and advise the Committee in its consultations
        with the Debtors relative to the administration of the
        chapter 11 cases;

    (c) assist the Committee in its review and analysis of any
        and all offers to purchase the Debtors' assets and asset
        purchase agreements;

    (d) assist the Committee in examining and analyzing the
        propriety of inter-Debtor agreements;

    (e) assist and advise the Committee as to whether dismissal
        of the Debtors' cases is appropriate and in the best
        interest of creditors;

    (f) assist the Committee in analyzing the claims of the
        Debtors' creditors and Debtors' capital structure and
        in negotiating with holders of claims and equity
        interests;

    (g) assist the Committee in its investigation of the acts,
        conduct, assets, liabilities and financial condition of
        the Debtors and of the operation of the Debtors'
        businesses;

    (h) assist the Committee in its analysis of, and
        negotiations with, the Debtors or any third party
        concerning matters related to, among other things, the
        assumption or rejection of certain leases of non-
        residential real property and executory contracts, asset
        dispositions, financing of other transactions and the
        terms of one or more plans of reorganization for the
        Debtors and accompanying disclosure statements and
        related plan documents;

    (i) assist and advise the Committee as to its communications
        to the general creditor body regarding significant
        matters in these chapter 11 cases;

    (j) represent the Committee at all hearings and other
        proceedings;

    (k) review and analyze applications, orders, statements of
        operations and schedules filed with the Court and advise
        the Committee as to their propriety, and to the extent
        deemed appropriate by the Committee support, join or
        object thereto;

    (l) advise and assist the Committee with respect to any
        legislative, regulatory or governmental activities;

    (m) assist the Committee in preparing pleadings and
        applications as may be necessary in furtherance of the
        Committee's interests and objectives;

    (n) prepare, on behalf of the Committee, any pleadings,
        including without limitation, motions, memoranda,
        complaints, adversary complaints, objections or comments
        in connection with any of the foregoing;

    (o) investigate and analyze any claims against the Debtor's
        secured lenders;

    (p) advise and assist the Committee in its review and
        analysis of the Debtors' corporate governance; and

    (q) perform such other legal services as may be required or
        are otherwise deemed to be in the interests of the
        Committee in accordance with the Committee's powers and
        duties as set forth in the Bankruptcy Code,
        Bankruptcy Rules or other applicable law.

Thomas R. Califano, Esq., a partner at DLA Piper, tells the
Court that the Firm's professionals bill:

         Professional                    Hourly Rate
         ------------                    -----------
         Partners                        $610 - $650
         Special Counsel and Counsel         $550
         Associates                      $275 - $485
         Paraprofessionals                   $225

Mr. Califano assures the Court that the Firm is "disinterested"
as that term is defined in Section 101(14) of the Bankruptcy
Court.

Mr. Califano can be reached at:

          Thomas R. Califano, Esq.
          DLA Piper Rudnick Gray Cary US LLP
          1251 Avenue of the Americas
          New York, New York 10020-1104
          Tel: (212) 835-6190
          Fax: (212) 835-6001
          http://www.dlapiper.com/

             About Galvex Holdings Limited

Headquartered in New York City, New York, Galvex Holdings
Limited -- http://www.galvex.com/-- and its affiliates operate
the largest independent galvanizing line in Europe.  The Debtors
have offices in New York, Tallinn, Bermuda, Finland, Ukraine,
Germany and the United Kingdom.  The company and four of its
affiliates filed for chapter 11 protection on Jan. 17, 2006
(Bankr. S.D.N.Y. Case No. 06-10082).  David Neier, Esq., and
John E. Tardera, Esq., at Winston & Strawn LLP, represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they estimated assets and
debts of more than $100 million.


GALVEX HOLDINGS: Galvex Capital Wants DiConza Law as Co-Counsel
---------------------------------------------------------------
Galvex Capital, LLC, asks the U.S. Bankrupt Court for the
Southern District of New York for permission to employ DiConza
Law, P.C. as its bankruptcy counsel, nunc pro tunc to Feb. 17,
2006.

Galvex Capital tells the Court that it wants DiConza Law to
handle matters that Winston & Strawn LLP cannot handle because
of a conflict of interest or, alternatively, which can be more
efficiently handled by DiConza Law.  Galvex Capital contends
that this will avoid unnecessary litigation and reduce the
overall expense of administering its chapter 11 case.

DiConza Law will:

    (a) advise Galvex Capital in connection with its claims
        against Galvex Holdings Limited, Galvex Estonia,
        Galvex Intertrade and Galvex Trade Limited;

    (b) negotiate with representatives of creditors and other
        parties in interest, including the landlord on Galvex
        Capital's office lease;

    (c) take necessary action to protect and preserve Galvex
        Capital's estate, including prosecuting actions on
        behalf of Galvex Capital;

    (d) advise Galvex Capital of its rights, powers, and duties
        as debtor in possession under chapter 11 of the
        Bankruptcy Code;

    (e) prepare on behalf of Galvex Capital, motions,
        applications, schedules, answers, orders, reports and
        papers necessary to the administration of the estate;

    (f) advise Galvex Capital in reviewing, estimating, and
        resolving claims asserted against its estate;

    (g) appear before the Court and any appellate courts and
        protect the interests of Galvex Capital and its estate;
        and

    (h) perform other necessary legal services and provide other
        necessary legal advice to Galvex Capital in connection
        with its chapter 11 case.

Gerard DiConza, Esq., principal of DiConza Law, tells the Court
that he will bill $350 per hour for this engagement.

Mr. DiConza assures the Court the he and his firm as
"disinterested" as that term is defined in Section 101(14) of
the Bankruptcy Code.

Mr. DiConza can be reached at:

         Gerard DiConza
         DiConza Law, P.C.
         630 Third Avenue, Seventh Floor,
         New York, New York 10017.
         Tel: (212) 682-4940
         Fax: (212) 682-4942
         http://www.diconzalawpc.com/

Headquartered in New York City, New York, Galvex Holdings
Limited -- http://www.galvex.com/-- and its affiliates operate
the largest independent galvanizing line in Europe.  The Debtors
have offices in New York, Tallinn, Bermuda, Finland, Ukraine,
Germany and the United Kingdom.  The company and four of its
affiliates filed for chapter 11 protection on Jan. 17, 2006
(Bankr. S.D.N.Y. Lead Case No. 06-10082).  Galvex Capital, LLC,
is represented by David Neier, Esq., at Winston & Strawn LLP,
and Gerard DiConza, Esq., at DiConza Law, P.C.  Galvex Holdings
Ltd. and the other debtor-affiliates are represented by David
Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq.,
Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil,
Gotshal & Manges, LLP.  John P. McNicholas, Esq., and Thomas R.
Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they estimated assets
and debts of more than $100 million.


GREAT ALLIANCE: Holds Final General Meeting on April 18
-------------------------------------------------------
Great Alliance Insurance Limited will hold a final general
meeting on April 18, 2006, at 10:00 a.m. at:

         KPMG Financial Advisory Services Limited
         Crown House, 4 Par-la-Ville Road
         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.


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


* BOLIVIA: Refuses Free Trade Deal with the United States
---------------------------------------------------------
Bolivia's newly-elected President, Evo Morales, reiterated he
wouldn't sign a free trade treaty with the United States, Prensa
Latina reports.

President Morales has said that an FTA with the U.S. "would
cause more hunger, misery and unemployment in Bolivia," Prensa
Latina reports.
The president believes that the US-pushed treaty would provide
commercial opportunities but deprive Bolivia of markets.

President Morales pointed out that Colombia's signing of an FTA
with the US has already deprived Bolivia of a market for soy as
it cannot compete with the US-subsidized producers, according to
La Presa.

Vice President Alvaro Garcia has said that he will go to
Washington with Chancellor David Choquehuanca and their
Colombian counterparts to discuss the soy issue, La Prensa
relates.

President Morales has propsed a Peoples Trade Treaty, which he
says, promotes fair trading from people to people, La Prensa
relates.  The Bolivian president said that this way small
agricultural producers and artisans could access international
markets and generate jobs, as well as fight poverty.

                        *    *    *

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
===========


BANCO CRUZEIRO: Raises US$41MM from Issuance of Overseas Bonds
--------------------------------------------------------------
Brazil's Banco Cruzeiro do Sul has raised a total of US$41
million through an issue of overseas bonds, the bank told Dow
Jones Newswires last week.

The bank originally aimed at raising US$20 million but, due to
strong demand, brought the issue up to US$41 million, according
to Dow Jones.

The 24-month bonds will pay a yield of 8.375%, the bank told Dow
Jones.  BCP Securities coordinated the offer.

The bonds were purchased by investors based in the United
States, Asia and Chile.  The issue is part of the bank's US$200
million program.  It has already raised a total of US$164
million under the program, including this week's issue.

                        *    *    *

On Jan. 31, 2006, Moody's Investors Service assigned first-time
ratings to Banco Cruzeiro do Sul S.A. (BCSul), giving long- and
short-term global local-currency deposit ratings of Ba3 and Not
Prime, respectively.

These ratings were assigned to Banco Cruzeiro do Sul S.A.:

Bank Financial Strength Rating: D-, with stable outlook.

Global Local-Currency Rating: Ba3 long-term local-currency
deposit rating and Not Prime short-term local-currency deposit
rating, with stable outlook.

Foreign Currency Deposit Rating: B1 long-term foreign-currency
deposit rating, and Not Prime short-term foreign-currency
deposit rating, with positive outlook.

Brazilian National Scale Deposit Ratings: Baa1.br long-term
deposit rating and BR-2 short-term deposit rating.

According to Moody's, BCSul's ratings are supported by a leading
position in a fast-growing consumer-lending business -- one
mainly targeted to civil servants and retirees.  BCSul's early
start in this market has allowed management to build expertise
in loan origination and distribution, as well as assemble the
operational and technological supports that provide an edge over
competitors.

Moody's also noted that ratings are positively affected by the
adequate asset quality of the bank's loan portfolio.  Moreover,
BCSul has a balanced source of funding, one comprising customer
time deposits, credit assignments, and funds from international
capital markets, which furnishes a cushion in periods of funding
volatility.

Moody's said that ratings for BCSul are constrained by its
modest size and by its below-average financial metrics relative
to peers', particularly its profitability and capital.  Such
limitations challenge the growth of the bank's franchise because
it constrains BCSul's ability to fund loan growth with its own
resources.  A higher-than-peers' cost base also challenges the
banks' performance.

BCSul's ability to further diversify deposits and overall
funding alternatives would be a positive factor for its ratings.
Improving profitability ratios would indicate management's
ability to expand operations within the bank's defined niche
markets in a scenario of increasing competition and potentially
lower interest rates.  Conversely, negative pressure on BCSul's
ratings might derive from deteriorating asset quality and poor
profitability, which could in turn result from aggressive
lending practices or from tougher competition.

Moody's Ba3 global local-currency deposit rating reflects
BCSul's modest participation in the deposits market, which
translates, in Moody's view, into a low probability of
regulatory support.

BCSul is the sole business of the Indio da Costa family, and as
such, any capital and liquidity support would likely be
forthcoming from the family to provide for the bank's growth.

BCSul is headquartered in Sao Paulo, Brazil. As of September
2005, the bank had total assets of approximately BRL2.8 billion
(US$1.3 billion) and equity of BRL170 million (US$76 million).


CVRD: Expands Alumina Production Capacity to 4.4MM Tons Per Year
----------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD increased its alumina
production capacity to 4.4 million tons per year from 2.5
million tons due to the startup of stages 4 and 5 of its
subsidiary Alumina do Norte do Brasil S.A. aka Alunorte.  This
additional capacity makes Alunorte the largest alumina refinery
in the world, as expected by the company CFO Fabio Barbosa.

As reported by Business News Americas on March 15, Mr. Barbosa
said that CVRD expected alumina output to reach 3.8Mt in 2006.
Last year, the production was about 2.6Mt.

The Brazilian mining giant expects that the output would reach
4.5Mt in 2007, 5.7Mt in 2008 and 6.4Mt in 2009, Business News
relates.

Despite the strong across-the-world cost increase and the
appreciation of the Brazilian real against the US dollar, the
project capex was US$768 million, which still means a very
competitive investment cost.

The refinery reached in 2005 an all-time production of 2.57
million tons of alumina.  This year, given the ramp-up of stages
4 and 5, production is expected to be 3.85 million tons.

As publicly announced on Nov. 4, 2005, CVRD Board of Directors
approved the development of stages 6 and 7, which will increase
the refinery production capacity to 6.26 million tons per year.
This project has an estimated capex of US$846 million and it is
expected to come on stream in the first half of 2008.

The company is investing US$352 million in a greenfield project,
comprises the development of phase 1 of the Paragominas bauxite
mine, in the state of Para, Brazil, and a 244-km slurry pipeline
to carry bauxite from Paragominas to Alunorte, a pioneer
initiative in the world aluminum industry.  Paragominas phase 1
will have a capacity of 5.4 million tons of bauxite per year and
is expected to start-up production in the first quarter of 2007.

CVRD Board of Directors has already approved the development of
Paragominas phase 2 with a capex cost of US$ 196 million. Phase
2 is expected to come on stream in the second quarter of 2008,
when Paragominas will reach a nominal capacity of 9.9 million
tons of bauxite per year.

CVRD strategic focus is in the upstream of the aluminum
production chain, due to its significant competitive advantages
supported by its high quality bauxite reserves and a modern and
low cost alumina refinery.

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                        *    *    *

On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016.  Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil.  The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD.  The obligation to guarantee the notes rank
pari passu with all of CVRD's other unsecured and unsubordinated
debt obligations.  Fitch expects the proceeds of this issuance
to be used for general corporate purposes and primarily to pay
down US$300 million of Vale Overseas' 9.0% guaranteed notes due
2013.

Fitch also maintains these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:

  -- CVRD foreign currency rating: 'BB', Outlook Positive;
  -- CVRD local currency rating: 'BBB' Outlook Stable;
  -- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
  -- CVRD Finance Ltd.: series 2000-1 and series 2000-3: 'BBB';
  -- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.


CVRD: Warns Against Chinese Govt's Iron Ore Price Intervention
--------------------------------------------------------------
Vale do Rio Doce aka CVRD said that a possible intervention in
iron ore price negotiations by the Chinese government is damping
talks about joint investments with Chinese companies, according
to a report by the Estado newswire.

CVRD and Aluminum Corp. of China Ltd., aka Chalco, are currently
in talks about a joint alumina refinery in Para, Brazil, Estado
relates.

Roger Agnelli, CVRD's chief executive officer, believes that
Chalco would be a great alumina refinery partner, but because of
the Chinese government's attitute may rethink future
partnerships with Chinese firms, according to the same report.

Mr. Agnelli noted that since there is a strong iron ore demand
in China, there is room for iron ore price increases this year,
Estado reports.  He said China bought 35% more iron ore in 2005
compared with the same period in 2004.

In a statement quoted by Dow Jones Newswires, China's Ministry
of Commerce and its National Development and Reform Commission
said that a further price hike for iron ore can't be borne out
by the country's steel industry.

In that same statement, the Chinese government urges iron ore
exporters to pay high attention to monopolies in trade.

In a separate report by Xinhua news agency, China promises to
keep away from the price negotiations and to let the market
decide the price.

In 2005, CVRD and other iron ore companies raised their prices
to steelmakers by 71.5%.

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                        *    *    *

On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016.  Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil.  The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD.  The obligation to guarantee the notes rank
pari passu with all of CVRD's other unsecured and unsubordinated
debt obligations.  Fitch expects the proceeds of this issuance
to be used for general corporate purposes and primarily to pay
down US$300 million of Vale Overseas' 9.0% guaranteed notes due
2013.

Fitch also maintains these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:

  -- CVRD foreign currency rating: 'BB', Outlook Positive;
  -- CVRD local currency rating: 'BBB' Outlook Stable;
  -- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
  -- CVRD Finance Ltd.: series 2000-1 and series 2000-3: 'BBB';
  -- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.


ELETROBRAS: Restructuring of Five Distributors Nears Conclusion
---------------------------------------------------------------
The restructuring of five financially troubled power
distributors of Brazil's federal power holding firm Eletrobras
is almost completed, a company spokesperson said to Business
News Americas.

The companies undergoing restructuring are Cepisa, Ceal, Ceron,
Ceam and Eletroacre, Business News relates.  According to the
spokesperson, there is no timeframe for the conclusion of the
restructuring.

The financial restructuring program has been course since 2005,
the spokesperson told Business News.  In October 2005 Eletrobras
stopped injecting capital into the distributors.

The continuation of the restructuring would include management
improvement that will also aim to reduce commercial losses
including power theft and fraud, which are significantly above
the country's average of some 16%, Aloisio Vasconcelos --
Eletrobras' Chief Executive Officer -- informed Business News.

Mr. Vasconcelos, according to Business News, said that one of
the solutions for Ceam would be its absorption by Manaus Energia
-- a unit of Eletronorte, one of Eletrobras' operational units.
Manaus Energia distributes power in Manaus while Ceam
distributes power to all other regions in the state.

Business News recalls that the five distributors were controlled
by state governments Piaui, Alagoas, Rondania, Amazonas and
Acre.  They were taken over in the 1990s by Eletrobras because
they threatened to stop supplying power to their respective
regions.

Eletrobras manages several sector charges levied on generation,
transmission and distribution operations, which are used to
subsidize some government programs such as the expansion of
power supply in poor regions, Business News relates.

                        *    *    *

As reported on Nov. 15, 2005, Standard & Poor's Ratings Services
has assigned its 'BB-' rating to Eletrobras - Centrais Eletricas
Brasileiras S.A.'s forthcoming US$300 million unsecured and
unsubordinated notes due in 2015.  The global scale corporate
credit ratings at 'BB-' foreign currency and 'BB' local currency
were also affirmed.  S&P said the outlook is positive.


GLOBOPAR: S&P Upgrades Currency Credit Ratings to BB- from B+
-------------------------------------------------------------
Standard & Poor's Rating Services raised its foreign and local
currency corporate credit ratings on Brazilian media group Globo
Comunicacoes e Participacoes fka Globopar SA  to 'BB-' from
'B+'.  The outlook on the ratings is stable.

"The rating action was prompted by the significant improvement
of Globopar's financial risk profile since the conclusion of its
debt restructuring in mid-2005," said Standard & Poor's credit
analyst
Jean-Pierre Cote Gil.

"The company has delivered better-than-expected operating
performance, in part helped by a positive advertising market,
and credit metrics are substantially stronger as the company
maintained a prudent financial strategy, focusing on debt
prepayment."

Supporting the debt reduction has been cash accumulated during
the debt renegotiation process, sale of non-core assets and
strong cash flow from operations, and is expected to result in
total debt/EBITDA of 2.0x as of December 2005, while we
anticipated a ratio of 2.5x.

Globopar's total debt amounted to approximately $1.12 billion at
December 2005, compared to $1.93 billion prior to its debt
restructuring.  Globopar voluntarily prepaid about $320 million
of its restructured debt on December 2005 and $70 million on
March 2006, using cash from operations, and also the proceeds
from the partial sale of assets, including its shares in pay-TV
operator Net Servicos de Comunicacao S.A. (BB-/Stable/--), and
the sale of TV Sky Shop.

"The upgrade also reflects the company's focus on further
reducing its debt position, and the favorable prospects for the
Brazilian advertising market in 2006, after very positive
performances in 2004 and 2005," Mr. Cote Gil said.  "The stable
outlook reflects our expectations that Globopar will retain a
prudent financial strategy, demonstrated by solid cash flow
protection metrics and a long-term debt profile.  The stable
outlook also incorporates our perception that the local
advertising environment will continue to support Globopar's
operating performance."


VARIG S.A.: Court to Consider Permanent Injunction on April 27
--------------------------------------------------------------
Vicente Cervo and Eduardo Zerwes, the Foreign Representatives of
VARIG, S.A., and its affiliates, intend to ask the U.S.
Bankruptcy Court for the Southern District of New York to
convert the preliminary injunction imposed in VARIG's ancillary
case under Section 304 of the Bankruptcy Code into a permanent
injunction.

Pending a hearing on the Conversion Request, the Foreign
Debtors, with the consent of lessors Ansett Worldwide Aviation,
U.S.A., and its affiliates, Central Air Leasing, Ltd., U.S. Bank
and Wells Fargo, International Lease Finance Corporation, GATX
Corporation, The Boeing Company, GE Commercial Aviation Services
LLP and Aircraft SPC-6 Corporation, seek a further continuation
of the existing Preliminary Injunction.

As reported in the Troubled Company Reporter on Nov. 29, 2005,
Central Air, Wells Fargo, Ansett and Boeing asked for the
removal of the preliminary injunction to give the Foreign
Debtors time to close the sale of Varig Logistica S.A. to
MatlinPatterson Global
Advisors, LLC.

At the Foreign Debtors' request, Judge Drain extends the
Preliminary Injunction through and including April 28, 2006.
The Court will convene a hearing on April 27, 2006, at 10:00
a.m., to consider conversion of the Preliminary Injunction into
a Permanent Injunction.

Parties-in-interest have until April 21, 2006, at 12:00 noon, to
file with the Court any objections to the continuation of the
Preliminary Injunction.

                        About VARIG

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


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


ALPHAGEN ARNEB: Liquidator Ceases Validating Claims
---------------------------------------------------
Linburgh Martin and John Sutlic -- liquidators of The Alphagen
Arneb Fund LDC -- stopped validating claims forwarded by the
company's creditors on March 20, 2006.  Creditors whose claims
have not been verified will be disqualified from receiving the
benefit of distribution that the company will make.

The Alphagen Arneb Fund LDC started liquidating assets on Feb.
2, 2006.

The liquidators can be reached at:

         Attention: Thiry Gordon
         Linburgh Martin and John Sutlic
         Close Brothers (Cayman) Limited
         Fourth Floor, Harbour Place
         P.O. Box 1034, George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 949 8455
         Facsimile: (345) 949 8499


SYSTEIA CONVERTIBLE: Liquidator Stops Accepting Proofs of Claim
---------------------------------------------------------------
David A.K. Walker and Lawrence Edwards stopped accepting proofs
of claims from Systeia Convertible Arbitrage USD LTD's creditors
on March 17, 2006.  Messrs. Walker and Edwards are the appointed
liquidators of the company.

Creditors who failed to have their proofs of claim verified are
excluded from receiving any distribution that the company will
make.

Systeia Convertible entered voluntary liquidation on Sep. 20,
2005.

The liquidators can be reached at:

         Attention: Jodi Smith
         David A.K. Walker
         Lawrence Edwards
         P.O. Box 219, George Town
         Grand Cayman, Cayman Islands
         Telephone: (345) 914 8637
         Facsimile: (345) 949 4590


TAYLOR OIL: Verification of Creditors' Proofs of Claim Ended
------------------------------------------------------------
The deadline for the verification of proofs of claims forwarded
by creditors of Taylor Oil Products LTD., which is being
voluntarily wound up, has passed.  Creditors who failed to
submit claims on March 2, 2006, are excluded from receiving any
distribution that the company will make.

Taylor Oil Products Ltd. started voluntary wind up on Feb. 6,
2006.  RTB Secretaries Limited was appointed as the company's
liquidator.

The liquidator can be reached at:

            RTB Secretaries Limited
            c/o Rothschild Trust Cayman Limited
            P.O. Box 10129 APO
            5th Floor Citrus Grove, George Town
            Grand Cayman, Cayman Islands
            Telephone: (345) 946 7033
            Facsimile: (345) 946 7043


TITAN SOUTHERN: Appoints New Liquidators for Voluntary Wind Up
--------------------------------------------------------------
Graham May and Darren Edmonston resigned as joint voluntary
liquidators of Titan Southern Europe Growth Limited.
Christopher D. Johnson and Russell Smith have been appointed to
take their place.

The new joint voluntary liquidators can be reached at:

           Attention: Russell K. Talbot
           Christopher D. Johnson
           Russell Smith
           P.O. Box 2499, George Town
           Grand Cayman, Cayman Islands
           Telephone: (345) 946 0820
           Facsimile: (345) 945 0864


UBS CURRENCY: Filing of Creditors' Claims Ended
-----------------------------------------------
The filing of creditors' claims against UBS Currency Fund (USA)
LLC -- company under liquidation -- ended on March 20, 2006.
Creditors who failed to submit their claims to Ian Wight and
Stuart Sybersma of Deloitte -- the company's liquidators -- by
the said date are excluded from receiving the benefit of any
distribution that the company will make.

UBS Currency Fund (USA) LLC started liquidating assets on Jan.
12, 2006.

The liquidators can be reached at:

             Attention: Joshua Taylor
             Ian Wight
             Stuart Sybersma
             Deloitte
             P.O. Box 1787 George Town
             Grand Cayman, Cayman Islands
             Telephone: (345) 949 7500
             Facsimile: (345) 949 8258


=========
C H I L E
=========


ENDESA CHILE: Inks Pact with Chilectra & Universidad Catolica
-------------------------------------------------------------
Endesa Chile and Chilectra yesterday signed an important
collaboration agreement with the Pontificia Universidad Cat¢lica
de Chile in order to promote research and motivate innovation in
the Latin American energy sector.  This alliance, based on the
interest of both companies and the university in ensuring an
efficient and sustainable model, will have an extendable term of
two years.

The agreement, signed by the chief executives of Endesa Chile
and Chilectra, Rafael Mateo Alcala and Rafael Lopez Rueda
respectively, and the rector of the Pontificia Universidad
Catolica de Chile, Pedro Pablo Rosso, falls within the program
"E-Cubo Endesa, Energetic Innovation Energy School," an
initiative focused on the formation, development, investigation
and publishing of sector studies in Latin America and which fits
within the work of the university's Electrical Engineering
Department.

Rafael Mateo thanked the university rector and referred to the
agreement as a true way to completing part of the Company's
objectives. "We are happy to be able to seal this alliance which
we are sure will be a clear contribution to the country's medium
and long-term development," said the executive.

Rafael Lopez indicated that "this commitment represents our deep
conviction that only through research and motivation of
innovation and energy development will it be possible to
seriously establish a model for the evolution of this subject in
Chile and the region."

In view of the important challenges the country faces in this
field, Endesa Chile, Chilectra and the Universidad Catolica de
Chile value this agreement and the willingness to assume a
commitment of mutual collaboration, oriented to the long term,
for investigating matters like Non-Conventional Renewable
Energies and new fuels in generation; the application of
analytic processing and artificial intelligence; and priority
development areas in electricity distribution like intelligent
networks, electric transport and energy efficiency where each of
the parties will contribute its professionals, accumulated
knowledge and expertise in their respective areas of action.

The Pontificia Universidad Catolica de Chile has a vast
experience in the area of research applied to the sector through
its engineering school, which interacts with different national
and international public and private entities. It also carries
out projects in the area of the country's sustainable energy
growth.

Endesa Chile is the principal electricity generator in Chile and
also has a relevant presence in Argentina, Brazil, Colombia and
Peru.  It operates and controls 14,819.88 MW of installed
capacity in Latin America of which 58% is hydrolectric
generation and the remaining 42% thermal generation.

Chilectra is Chile's principal electricity distribution company.
Its concession area is 2,118 km2 and it provides a service to
more than five million users in 33 districts of the Metropolitan
Region.  With subsidiaries in Argentina, Brazil, Colombia, Chile
and Peru, Chilectra is the Group's regional head in
distribution.

Empresa Nacional de Electricidad S.A. (Endesa-Chile) and its
subsidiaries generate and supply electricity.  The Company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.

                        *    *    *

Moody's Investor Service assigned a Ba1 foreign currency long-
term debt rating to Empresa Nacional de Electricidad SA (Chile)
on Jan. 26, 2005.


ENDESA CHILE: Posts CLP110,623 Million Net Income in 2005
---------------------------------------------------------
Endesa Chile produced a net income for 2005 of CLP110,623
million, reflecting an increase of 27.4 % over the CLP86,805
million obtained the previous year.  This is explained the
company's better operating and non-operating results.

Operating income reached CLP394,862 million -- an improvement of
3.3 % over the year before and explained by improved results in
Chile and Brazil -- despite the company's ceasing to consolidate
the results of Cachoeira Dourada since the last quarter.  This
asset became part of the holding company, Endesa Brasil, which
is seeking to capitalize on growth opportunities in the
Brazilian market.

This better operating income was partially offset by weaker
results in Argentina, predominantly due to the impact of the
export business to Brazil, while Colombia and Peru maintained
operating income at similar levels to those of 2004.

Endesa Chile's consolidated EBITDA -- operating income plus
depreciation and amortization -- was CLP566,534 million in 2005,
13.8 % higher than in 2004.  This was despite the non-
consolidation of the operation of Cachoeira Dourada in the last
quarter.

The distribution of EBITDA by country, adjusted for the
percentage holding in each subsidiary, shows that Chile
contributes 66.7%, Colombia 12.9%, Peru 7.0%, and Argentina
6.2%.  Brazil contributed with 7.2 % until September 2005.

The good performance of Chile, which represents close to 50% of
the company's consolidated operating income, was due to the
effects of the amendments to the Chilean Electricity Law --
known as the Short Law II -- which led to an increase in
regulated generating tariffs to levels more in line with the
reality of the country's electricity system costs and the
international prices of fossil fuels, as well as recognizing the
uncertainty of natural gas supplies from Argentina.

The past year was also notable for the company having first-
class hydroelectric generating facilities and having been -- to
a large degree -- the generating support of the SIC, as well as
for the improved hydrology scenario from last June which allowed
most of the reservoirs to recover their historic levels and thus
reduce thermal generation, and the recovery from the depressed
margin of the first half year.  In this context, the 690 MW that
Ralco contributes to the system were vital, being 9.2% of total
generation on the SIC, in a scenario of growth in demand and
shortage of natural gas.

Endesa Chile broke a Chilean generating record in 2005, reaching
18,764 GWh.  More specifically, it broke the hydroelectric
generation record in August.

Operating Income

Consolidated sales in 2005 were CLP1,123,039 million, an
increase of 5.0 % over the previous year when the figure was
CLP53.201 million.

Physical sales for the year amounted to 55,884 GWh, representing
an increase of 4.6 % over 2004.  As with the rest of the
results, these figures do not include the consolidation of
Cachoeira Dourada in the last quarter.

The cost of sales in 2005 was CLP689,599 million, 5.8% higher
than in 2004.  Electricity generation amounted to 50,122 GWh,
compared to 47,366 GWh the year before, notable being the 9.2 %
increase in consolidated hydroelectric generation and the 26.5 %
greater hydroelectric generation in Chile.

Meanwhile, electricity demand in the region has shown increasing
growth, with increases of 5.8% in Argentina, 4.3% in Brazil,
3.8% in Colombia, 4.0% in Chile and 5.0% in Peru.

Non-Operating Result

The consolidated non-operating result in 2005 was a negative
CLP155,126 million, compared to a loss of CLP171,053 million in
2004, implying an improvement of 9.31% and impacting favorably
on the company's net income in comparison with the previous
year.

The reduction in consolidated financial expenses was a principal
factor in the non-operating result, falling from CLP199,490
million in 2004 to CLP178,794 million in 2005, mainly the result
of reduced debt and the appreciation of the Chilean peso against
the dollar.

Empresa Nacional de Electricidad S.A. (Endesa-Chile) and its
subsidiaries generate and supply electricity.  The Company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.

                        *    *    *

Moody's Investor Service assigned a Ba1 foreign currency long-
term debt rating to Empresa Nacional de Electricidad SA (Chile)
on Jan. 26, 2005.


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


* COLOMBIA: Central Bank Implementing Stricter Monetary Rules
-------------------------------------------------------------
Colombia's Central Bank intends to tighten its monetary stance
this year to control inflation, Dow Jones Newswires reports.

Juan Mario Laserna, Central Bank's director, was quoted by Dow
Jones as saying that the market has been informed although the
bank is still discussing how soon the tightening could begin.
Mr. Laserna didn't offer further details on the bank's monetary
policy strategy.

Mr. Laserna informed reporters at a financial event that
inflation is expected to be within 4% to 5% this year.

"If everything works out this year, inflation in 2007 could be
lower than 4%," Mr. Laserna said.

                        *    *    *

On May 30, 2005, Fitch Ratings has affirmed Colombia's ratings
as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.


* COLOMBIA: Improving Liquidity Prompts S&P's Currency Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services assigns BBB/Positive/A-3 and
BB/Positive/B for its local currency and foreign currency credit
ratings respectively.

The sovereign credit rating on Colombia is based on the
country's improving external liquidity and debt positions, which
are offset by its continued fiscal limitations and ongoing
internal conflict.

Colombia's external indicators continue to improve because of an
increase in international reserves and a substantial increase in
exports and remittances, which have boosted current account
receipts.  The ratio of net public sector external debt to
current account receipts fell to 28% in 2005 from more than 58%
in 2003.  Foreign direct investment also picked up, reaching
more than US$11 billion in 2005.

The government faces significant challenges because of its high
interest burden (nearly 16% of revenue), the need to increase
military expenditure, and high pension costs.

The administration of President Alvaro Uribe has successfully
implemented a plan to contain and defeat the guerrilla and
paramilitary groups that engage in drug trafficking, acts of
terrorism, extortion, and kidnapping.  However, domestic
confidence and investment could falter as long as the guerrilla
conflict continues.

The outlook on Colombia is the result of better economic
prospects and continued improvements in the country's external
indicators.  The country's better growth prospects are largely a
result of significant and sustained improvement in domestic
security that has, in turn, led to renewed domestic confidence
and double-digit growth in private investment, raising the ratio
of investment to GDP to more than 21%.  The rise in investment
has boosted productivity and resulted in higher growth potential
of more than 4%.  In fact, Colombia witnessed economic growth of
more than 5% in 2005, and growth of 4.5% is forecast for 2006.
As a result, unemployment rates have fallen, and poverty levels,
though still high, have also dropped.

In addition, growing international reserves and current account
receipts-combined with declining external debt-have
substantially improved external indicators, mitigating external
vulnerabilities.  The government's increasing reliance on the
local market for Colombian peso-denominated internal debt has
further reduced external vulnerabilities.  Furthermore, as noted
above, renewed confidence has led to a sharp rise in foreign
direct investment.

Despite these improvements, the government's underlying fiscal
position remains highly inflexible because of large, legally
mandated transfers to local governments and public pension
systems as well as the interest on its debt.  Further reform in
taxes, transfers, pensions, or a combination of these could lead
to sustained improvement in the government's fiscal prospects,
which in turn could lead to improved creditworthiness.  On the
other hand, significant fiscal slippage or a sharp deterioration
in national security could result in the outlook being revised
to stable.


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


FALCONBRIDGE: Holding Apr. 25 Webcast of First Quarter Results
--------------------------------------------------------------
Falconbridge Limited said it will webcast on a live, listen-only
basis, its first quarter financial results conference call on
Tuesday, April 25, 2006. at 2:00 p.m.  The financial results for
the Company will be released via CCNMatthews on Tuesday April
25, 2006, before markets open.

During the meeting, senior management from the Company will
review first quarter financial and operating results.  The live,
interactive webcast and slide presentation will be accessible at
http://www.falconbridge.com/under the "Investor Relations"
section.

Those unable to participate during the live webcast, the call
will be archived on Falconbridge's website.

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

                        *    *    *

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


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


KAISER ALUMINUM: Barneson Cancels 22,802 Shares of Common Stock
---------------------------------------------------------------
In a regulatory filing with the Securities and Exchange
Commission dated February 13, 2006, John Barneson, vice
president and chief administrative officer of Kaiser Aluminum
Corp., discloses that he voluntary cancelled his 22,802 shares
of Kaiser Aluminum Corp. restricted common stock on February 27,
2004.

Mr. Barneson reports that he now beneficially owns 10,700 shares
of Kaiser common stock.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 91; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


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


BANORTE: S&P Raises Foreign Currency Rating to BBB- from BB+
------------------------------------------------------------
Standard & Poor's Ratings Services raised its foreign and local
currency counterparty credit, and CD ratings on Banco Mercantil
del Norte S.A. aka Banorte to 'BBB-/A-3' from 'BB+/B'.  The
outlook is stable.

"The upgrade reflects consistent improvements in Banorte's
business and financial profile including a better asset mix, the
maintenance of good asset quality indicators despite important
loan growth, and higher recurrent profitability as a result of
improved net interest margins and efficiency," said Standard &
Poor's credit analyst Leonardo Bravo.

The ratings consider the ongoing challenges Banorte faces, such
as leveraging its branch network through cross selling,
continuing with adequate underwriting policies, coping with
important competition, and further improving its adjusted
capitalization.

Banorte has improved its asset mix with higher-margin loans.
Retail loans including credit cards, personal loans, and
mortgages have increased their participation in Banorte's loan
portfolio and are progressively replacing IPAB -- Instituto para
la Protecci¢n del Ahorro Bancario notes securitized in 2004.

Banorte has increased its loan portfolio in real terms also,
without breaching conservative loans underwriting and
maintaining good asset quality figures.

The bank achieved significant improvements in efficiency
The nonperforming asset ratio decreased to 2% of total loans as
of December 2005, from 2.3% in 2004, and 5.9% in 2003.  We do
not anticipate significant charge-offs and expect the NPA ratio
to remain relatively unchanged.  We also expect newly originated
loans to perform in line with current performance due to the
bank's focus on risk, strengthened collecting policies, and
improved economic prospects for Mexico.

, net interest margin, and profitability in 2005.  The
efficiency program announced at the end of 2004, which included
staff and branch rationalization, has already borne fruit.  The
bank's efficiency ratio during 2005 dropped to 58% from a high
of 72% the prior year.  Banorte expects to maintain efficiency
levels around 55%-60%, helped by additional savings, and, more
important, higher revenues.

We believe this goal is achievable and should maintain the
bank's efficiency at similar levels reported by its Mexican
peers. Net interest margin has increased as a result of growth
in higher-margin loans and better funding mix.

Banorte's efforts to reduce funding cost have also translated
into a better funding profile with increases in demand deposits
while reducing money market funding.  This movement toward
increasing less costly funding while reducing volatility has
lead to a reduction in funding costs as compared to the market
rate.  Excluding non-recurrent items, Banorte's adjusted return
on assets increased to 2% as of December 2005, from less than 1%
in the previous years.

Banorte's current profitability is similar to that of other
major Mexican banks and is expected to continue at similar
levels.


GRUPO GIGANTE: Plans to Sell US$250MM of 10-Year Callable Bonds
---------------------------------------------------------------
Dow Jones Newswires reports that Mexican retailer, Grupo Gigante
S.A., plans to issue US$250 million of 10-year bonds via ABN
Amro, according to a term sheet provided by a fund manager.

The senior unsecured bonds, callable after the first five years,
will be sold under 144a rules for institutional investors.
Investors will also have a put option if the bond reaches a
price level of 101, in event of a change of control at the
company, the term sheet said.

A roadshow started last week and will continue this week.  No
further details were provided in the term sheet.

Gigante had 534 supermarkets, office supply stores and
restaurants as of the end of June 2005.

                        *    *    *

On Mar. 27, 2006, Standard & Poor's Ratings Services assigned
its 'BB' corporate credit rating to Grupo Gigante S.A. de C.V.
At the same time, Standard & Poor's assigned its 'BB' rating to
Gigante's $250 million notes due 2016.  S&P said the outlook is
stable.

Proceeds of the proposed bond will be used to refinance the
MXP$2.7 billion outstanding bank credit facility with Banco
Inbursa S.A. due 2015.

"The ratings reflect Gigante's relatively high debt leverage,
its fair financial profile, the risks imposed by the increased
competition in most business formats in which Gigante
participates, and the correlation with economic cycles," said
Standard & Poor's credit analyst Raul Marquez.

"Balancing this position are the steps taken by the company to
improve operating efficiencies and margins and its position as
one of the top players in the highly competitive Mexican
supermarket industry."

Founded in 1962, Gigante is one of the most recognized
supermarket names in Mexico.  Over the years, Gigante has
expanded beyond Mexico City, buying supermarket chains in large
cities such as Monterrey and Guadalajara, while establishing a
widespread national coverage with stores in more than 85 cities,
across all of the Mexican states. With an estimated 10% market
share, Gigante owns Mexico's fourth-largest chain of
supermarkets in terms of revenues with a diversity of formats
designed to be attractive to all socioeconomic groups.  It has
the second-largest number of supermarket outlets in Mexico, as
well as smaller retailing operations in the U.S., through
Gigante USA, and Central America, through its joint venture with
Office Depot.

The stable outlook reflects our expectation that Gigante will be
able to maintain its business position while the company's
operating improvements continue providing adequate debt coverage
and debt remains at current levels.

The rating is currently constrained by the challenges the
company will face during 2006 as it continues with its recent
pricing strategy and the implementation of new operational and
technological efficiencies, as well as the effects of the
intense competition from the diverse sector players.  Hence, a
positive rating action is not foreseen in the medium term.  A
further deterioration of the company's financial profile could
pressure the ratings downward.


GRUPO MEXICO: Workers Strike at La Caridad Mine
-----------------------------------------------
Workers at the La Caridad copper-molybdenum mine of Grupo Mexico
S.A. de C.V. went on strike Friday after the mine operator
Industrial Minera Mexico reportedly refused to conduct a
collective contract review, the mining-metalworkers union
-- STMMRM, said in a statement.

The country's labor ministry has extended the review deadline
again, the union complained to Business News.

According to Dow Jones Newswires, the deadline -- originally set
on March 5 -- had been put back several times.

The STMMRM said in the statement that the workers in the union's
section 298, which represents La Caridad, are demanding that
Grupo Mexico fulfill its legal obligation and negotiate the
collective contract.

However, the smelter and refinery at the mining complex were not
affected by the strike, Dow Jones reports.

As reported by the Troubled Company Reporter on Oct. 31, 2005,
that Grupo Mexico had agreed to pay each worker in the La
Caridad mine MXN10,000 after a day of strike.

Dow Jones Newswires recalled that workers went on strike due to
Grupo Mexico's alleged refusal to share profits from 2003
results.

Grupo Mexico had claimed that the strike was illegal because the
workers' profit-sharing claims were settled in 2004 when the
company paid US$437 to each worker as a goodwill bonus.

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

                        *    *     *

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

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


SATMEX: Receives US$350 Million Bid from SES Americom and Medcom
----------------------------------------------------------------
Mexican satellite operator Satmex has received a US$350 million
bid from US satellite provider SES Americom and its Mexican
associate Medcom Sat, according to local press.

Business News Americas states that SES Americom and Medcom Sat
made the bid on March 20 with financial assistance from
Citigroup.  The companies requested the purchase of at least 80%
of shares in Satmex.

Business News relates that as part of ongoing restructuring
talks the 80% stake is already earmarked as compensation for
bondholders.

SES and Medcom also presented a US$50 million offer for a 20%
stake held by a combination of the government, Servicios
Corporativos, and minority shareholders.

According to a statement, SES Americom and Medcom planned to
invest US$400 million in Satmex over the next five years to
raise its market position.

Business News recalls that Satmex is undergoing a debt
restructuring process for a US$800 million debt, of which US$523
million is in default.

The sale of the company is the only means that the government
could recover a US$125 million loan, now US$188 million with
accumulated interest, the debt restructuring case supervisor
Thomas Heather, of White & Case law firm, told Business News.
The loan was made to holding company Firmamento, which controls
Satmex's main owner Servicios Corporativos at the time of
Satmex's privatization in 1997.

It was unlikely and unadvisable that the sale would take place
before the restructuring process is complete and the Satmex VI
satellite -- the key for Satmex's survival -- is launched on May
19, Mr. Heather told Business News.

                     About Satmex

Headquartered in Mexico, Satelites Mexicanos, S.A. de C.V. --
http://www.satmex.com/-- is the leading provider of fixed
satellite services in Mexico and is expanding its services to
become a leading provider of fixed satellite services throughout
Latin America.  Satmex provides transponder capacity to
customers for distribution of network and cable television
programming and on-site transmission of live news reports,
sporting events and other video feeds.  Satmex also provides
satellite transmission capacity to telecommunications service
providers for public telephone networks in Mexico and elsewhere
and to corporate customers for their private business networks
with data, voice and video applications, as well as satellite
internet services.  The Debtor is an affiliate of Loral Space &
Communications Ltd., which filed for chapter 11 protection on
July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710).  Some holders
of prepetition debt securities filed an involuntary chapter 11
petition against the Debtor on May 25, 2005 (Bankr. S.D.N.Y.
Case No. 05-13862).  The Debtor, through Sergio Autrey Maza, the
Foreign Representative, Chief Executive Officer and Chairman of
the Board of Directors of Satmex filed an ancillary proceeding
on Aug. 4, 2005 (S.D.N.Y. Case No. 05-16103).  Matthew Scott
Barr, Esq., Luc A. Despins, Esq., Paul D. Malek, Esq., and
Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP
represent the Debtor.  When the Debtor filed an ancillary
proceeding, it listed $900,000,000 in assets and $688,000,000 in
debts.


=======
P E R U
=======


SIDERPERU: Aceros Arequipa Not Interested in Shares Sell-off
------------------------------------------------------------
Peruvian steelmaker Aceros Arequipa has denied that it has
interest in taking part in the sell-off of steelmaker
Siderperu's 553 million common shares, according to Lima stock
exchange.

According to an earlier report by newspaper Gestion, Aceros'
planning manager Pablo Dias Aquino had said that the company
would be interested in taking part in the ProInversion auction.
State investment agency ProInversion is the holder of the shares
now on sale.

However, the company told Lima stock exchange, "Such decisions
must be made by the company's board.  As this has not taken
place, the information contained in the article lacks
substance."

Business News Americas relates that ProInversion is preparing a
privatization process to sell the Siderperu shares, which
represent 56% of the company's capital stock.

As reported by the Troubled Company Reporter on March 15, 2006,
ProInversion bought the shares in Siderperu from local holding
company Sider early in March for approximately US$52 million.
The shares were auctioned after Siderperu defaulted on its debt
payments.

An official from ProInversion told Business News that the
company will be selling the shares soon to steer Siderperu
toward privatization.

According to local papers, Siderperu's Chairman and Sider Corp.
Director Roberto Lukac may move to block ProInversions move to
sell the company.  Mr. Lukac, local reports say, believes that
ProInversion should have purchased 48% rather than 56% of the
company since the 8% difference is held by Banco Wiese
Sudameris.

ProInversion agrees that Mr. Lukac could be right, however, the
agency said it was not informed of the situation.

In 2005, Siderperu's shareholders agreed to postpone deadlines
for the steelmaker to make payments under its already
rescheduled corporate bond program.

Headquartered in Chimbote, Peru, Siderperu has steel production
capacity of 400,000 tons per year.  The company reported a net
loss of 5.99 million soles (US$1.82 million) in 2005, compared
to a net profit of 28.8 million soles in 2004.

                        *    *    *

As reported on Oct. 6, 2005, Siderperu failed to meet
commitments to pay on September 30, 2005, three quarterly
payments already postponed from 2003, prompting Lima-based risk
agency Equilibrium to downgrade its rating on the steelmaker's
first corporate bond program to category D from C.

Siderperu, which has struggled to meet payments for its first
bond issues, secured creditors approval on a global refinancing
agreement in April 2002 to reprogram the payments from 2003-
2012.

Since then, however, creditors have agreed to three addendums to
reprogram the commitments made in the AGR. A payment of US$7.9
million was due on September 30.

On September 30, 2005, Siderperu made a US$1.75-million payment
that corresponded to the regular quarterly quota of the
principal amount.


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


AOL LATIN: Files Monthly Operating Report for January 2006
----------------------------------------------------------
On Feb. 17, 2006, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
month ended January 2006, with the United States Bankruptcy
Court for the District of Delaware.

For the month ending Jan. 31, 2006, the Company's Income
Statement shows:
                                                  Net Income/
                                      Revenue     (Net Loss)
                                      -------     -----------
America Online Latin                       $0          ($922)
America, Inc.

AOL Latin America Management,         $24,473      ($998,152)
LLC

AOL Puerto Rico Management            $64,354      ($101,529)
Services, Inc.

America Online Caribbean Basin,      $929,628       $443,157
Inc.

At Jan. 31, 2006, the Company's balance sheet shows:

                America Online Latin America, Inc.
                __________________________________

      Current Assets                        $17,403,164
      Total Assets                          611,240,974
      Current Liabilities                     6,130,621
      Total Liabilities                     166,130,621
      Total Stockholders' Equity           $445,110,353


                AOL Latin America Management, LLC
                _________________________________

      Current Assets                        $14,100,443
      Total Assets                           14,171,199
      Current Liabilities                    27,282,726
      Total Liabilities                      27,282,726
      Total Stockholders' Deficit          ($13,111,527)


             AOL Puerto Rico Management Services, Inc.
             _________________________________________

      Current Assets                              ($268)
      Total Assets                              122,363
      Current Liabilities                     6,436,156
      Total Liabilities                       6,452,605
      Total Stockholders' Deficit           ($6,330,808)


               America Online Caribbean Basin, Inc.
               ____________________________________

      Current Assets                        $20,285,300
      Total Assets                           20,305,625
      Current Liabilities                      (478,170)
      Total Liabilities                        (478,170)
      Total Stockholders' Equity            $20,783,794

A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the month ended
Jan. 31, 2006, is available at no charge at:

               http://researcharchives.com/t/s?6e3

Headquartered in Fort Lauderdale, Florida, America Online
LatinAmerica, Inc. -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network.  Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.
The Company and its debtor-affiliates filed for Chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed total assets of $28,500,000
and total debts of $181,774,000.


G+G RETAIL: Court Approves Davis & Gilbert as Corporate Counsel
---------------------------------------------------------------
G+G Retail, Inc., sought and obtained authority from the U.S.
Bankruptcy Court for the Southern District of New York for
authority to employ Davis & Gilbert, LLP, as its corporate
counsel, nunc pro tunc to Jan. 25, 2006.

Davis & Gilbert is expected to provide the Debtor professional
services pertaining to:

      a) corporate and contractual matters;
      b) employment matters;
      c) real estate matters;
      d) litigation matters; and
      e) intellectual property matters.

Davis & Gilbert's professionals and their current hourly billing
rates:

      Professional                     Rate
      ------------                     ----
      Brad J. Schwartzberg, Esq.       $530
      Joseph Cioffi, Esq.              $430
      Mary Luria, Esq.                 $530
      Nancy Yanks, Esq.                $395
      Jason Abramson, Esq.             $385
      Dan Feinstein, Esq.              $410
      Alan Hahn, Esq.                  $395
      Bruce Ginsberg, Esq.             $510
      Miles Baun, Esq.                 $475
      Jesse Schneider, Esq.            $395
      Joanne Arnold                    $195

To the best of the Debtor's knowledge, Davis & Gilbert is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.

Headquartered in New York, New York, G+G Retail Inc. retails
ladies wear and operates 566 stores in the United States and
Puerto Rico under the names Rave, Rave Girl and G+G.  The Debtor
filed for Chapter 11 protection on Jan. 25, 2006 (Bankr.
S.D.N.Y. Case No. 06-10152).  William P. Weintraub, Esq., Laura
Davis Jones, Esq., David M. Bertenthal, Esq., and Curtis A.
Hehn, Esq., at Pachulski, Stang, Ziehl, Young & Jones P.C.
represent the Debtor.  When the Debtor filed for protection from
its creditors, it estimated assets of more than $100 million and
debts between $10 million to $50 million.


MUSICLAND HOLDING: Nine Landlords Balk at Proposed Cure Amounts
---------------------------------------------------------------
As reported in the Troubled Company Reporter on Mar. 1, 2006,
Musicland Holding Corp. and its debtor-affiliates leased around
340 Sam Goody and Suncoast Video store locations whose inventory
is currently being liquidated, in accordance with prior orders
of the U.S. Bankruptcy Court for the Southern District of New
York, in anticipation of Sam Goody and Suncoast vacating the
stores on or before April 30, 2006.

A list of the 340 Sam Goody and Suncoast Leases is available for
free at:

    http://bankrupt.com/misc/Musicland_SGSCAuctionProcedures.pdf

The Debtors planned to hold an auction to consider bids for the
sale, free and clear of liens, claims and encumbrances, but
otherwise "as is-where is," of the Debtors' interests in those
Sam Goody and Suncoast Leases.

The Debtors seek the Court's permission to assume and assign two
unexpired non-residential real property leases:

   Mall Location                City/State       Winning Bidder
   -------------                ----------       --------------
   Sunny Isle Shopping Center   St. Croix,       Rainbow North
                                Virgin Islands   Leasing, Inc.

   Palisades Center             Englewood,       Twist, Inc.
                                New Jersey

               More Landlords Object to Proposed Cure

More landlords of the Sam Goody and Suncoast Leases complain
that the Cure Amounts in the Debtors' Notice do not reflect all
charges owing to them under the Leases.

Among the Landlords that presented their calculated cure amounts
are:

      Landlord                               Cure Amount
      --------                               -----------
      Almeda Mall                              $112,575
      Fairfield Commons                         302,138
      Montgomery Mall                            77,940
      Northtown Mall                            142,059
      Polaris Fashion Place (SG)                 63,891
      Polaris Fashion Place (SC)                 25,593
      Super Mall of Great Northwest             158,787
      Tulsa Promenade (SG)                       10,987
      Tulsa Promenade (SC)                        8,090

                      About Musicland Holding

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


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


* URUGUAY: Meets Venezuelan President Tomorrow Over Mill Dispute
----------------------------------------------------------------
Argentine President Nestor Kirchner and his Uruguayan
counterpart, Tabare Vazquez, will meet Wednesday in Uruguay to
discuss the disputed construction of two pulp mills along the
two countries' border, Dow Jones Newswires reports.

As previously reported, the Argentine government and some
environmental groups have been protesting Uruguay's pulp mill
construction along the border.  Protests erupted from the
Argentine side blocking the roads leading to Uruguay.

The protesters alleged that the US$1.6 billion two pulp mills
will cause water and air pollution due to their chlorine
bleaching processes.  Uruguay has already conceeded to a 90-day
extension to allow for an environmental study of the project.
Last week, the blockades were ended for an indefinite period to
give way to negotiations.

                        *    *    *

Fitch Ratings assigns these ratings on Argentina:

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

                        *    *    *

Fitch Ratings assigns these ratings on Uruguay:

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


* URUGUAY: Metsa-Botnia Temporarily Halts Pulp Mill Construction
----------------------------------------------------------------
Finnish pulp company Oy Metsa-Botnia AB announced Sunday its
intention to halt for 90 days construction of a pulp mill along
the Argentine-Uruguayan border, Dow Jones Newswires reports.

The US$1.6 billion construction of two mills along the border
have sparked environmental protests in Argentina.  An Oy Metsa-
Botnia AB consortium, made up of a group of Finnish investors,
would operate one plant. Another is being built by Spain's Grupo
Empresarial ENCE.

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

Last week, protesting environmental group Environmental Assembly
in Gualeguaychu agreed to end their 45-day protest for an
indefinite time to give way for negotiations between the two
governments.

Oy Metsa-Botnia said in a statement that its declaration to
suspend construction is to help open a space for dialogue
between Uruguay and Argentina, in response to appeals made by
presidents Tabare Vazquez and Nestor Kirchner.

The Finnish company gives its assurance that it will provide all
relevant information to resolve doubts regarding the project and
guarantees correct operation and control of the plants.

                        *    *    *

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: Reaches Temporary Accord with U.S. on Airline Ban
--------------------------------------------------------------
The Associated Press reports that Venezuela and the United
States have reached a temporary agreement to avert a potential
crisis triggered by Venezuela's March 30 deadline to ban U.S.
carriers.

However, Venezuela's National Aviation Institute said
authorities has not decided to suspend the ban and are still
discussing the matter, the AP relates.

Venezuela threatened to ban United States' airlines in protest
of a 1995 safety restriction that downgraded the country's
security, safety and technical rating.

U.S. Ambassador William Brownfield previously said in reports
that a ban from Venezuela will result in a similar action from
the United States.

Nelson Ramirez, president and chief operating officer of
Venezuela's largest airline -- Aeropostal, encouraged the
government to implement the ban.  Mr. Ramirez told the AP, it
was the only way to get the U.S. Federal Aviation Administration
to lift restrictions and allow fair competition in the
Venezuelan market.

Aeropostal and Santa Barbara airlines serve the U.S. with rented
planes, the AP says.

Once the ban will follow through on Thursday, flights by
Continental Airlines Inc. and Delta Air Lines Inc. will be
prohibited from entering Venezuela while AMR Corp.'s flights
will be reduced.

                        *    *    *

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: Shuts Down Exxon's La Ceiba Oil Operations
-------------------------------------------------------
Exxon Mobil Corp.'s operations at the La Ceiba oil field has
been temporarily shut down.

"Based on instructions from Corporacion Venezolana de Petroleo
indicating that crude oil liftings from the La Ceiba field will
be discontinued, it has proceeded to request to the Ministry of
Energy and Petroleum a temporary and safe shut down of
production," Exxon disclosed in an e-mail message to Dow Jones
Newswires.

The CVP is a branch of state run Petroleos de Venezuela S.A.
that handles negotiations with private oil firms.

Exxon operates and holds a 50% stake in La Ceiba, while Canadian
oil and gas company Petro-Canada holds the other half.

The two companies declared La Ceiba commercially viable in 2005,
and delivered a development plan for the field to the oil
ministry in December. Exploration at the field, which could
contain up to 185 million barrels of oil reserves, began in
1996. Production at the field is currently at around 12,000
barrels a day, Dow Jones relates.

The shut-down is the latest among Exxon's setbacks in Venezuela.
In 2005, Exxon sold a small oil field to Repsol YPF to prevent
state-owned company Petroleos de Venezuela from taking charge of
operations.  Early this year, PDVSA cut Exxon from a proposed
multibillion dollar petrochemicals project on grounds that the
company did not meet timetables for getting the project started.

Industry observers believe that the move means Exxon is on
Venezuela's blacklist for resisting tax contract changes, Dow
Jones reports.  In 2004, Exxon was the only oil major to
publicly challenge a royalty hike on heavy crude.

Oil Minister Rafael Ramirez told reporters that the shut down
was made to carry out technical studies after three months of
test production.

Minister Ramirez also said that PDVSA will also determine how
much stake it wants from the field.  Venezuelan law allows PDVSA
to take up up to 34% of the field as soon as it is declared
commercial.

                        *    *    *

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
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