TCRLA_Public/060417.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, April 17, 2006, Vol. 7, Issue 75

                            Headlines

A R G E N T I N A

AGUAS ARGENTINAS: Wants to Collect Bills from Concession Deal
ARREDAMENTI ITALIANI: Claims Verification Ends on June 27
CAMUZZI GAS: Moody's Puts B2 Rating on Global Local Currency
CASA GONZALEZ: Trustee Sets June 12 as Last Day to File Claims
CELLULAR FASHION: Trustee Verifies Claims Until May 16

CLAXSON INTERACTIVE: Holders Appoint Steven Bandel as Director
COMPANIA GENERAL: Suspected of Fraud During Restructuring
DIETA OPTIMA: Trustee Stops Accepting Claims After May 29
SOCIEDAD COMERCIAL: Accused of Fraud During Restructuring

* ARGENTINA: Has to Pay Capital Ventures for Brady Bonds by 2023

B A H A M A S

WINN-DIXIE: Court Okays Abandonment of Unsold Inventory & FF&E

B E R M U D A

AFFILIATED CHEMICAL: Proofs of Claim Must be Submitted by May 5
COMMONWEALTH & BRITISH: Claims Verification Ends on May 8
HCL SERVICES: Creditors Must File Proofs of Claim by April 26

B O L I V I A

COEUR D'ALENE: Earns US$9.9 Million in Fourth Quarter of 2005

* BOLIVIA: Buying Five Percent of Telesur's Equity

B R A Z I L

AES SUL: S&P Assigns brCC Long-term Rating
BANCO SCHAHIN: S&P Puts B Rating on Senior Unsecured Notes
CENTRAIS ELETRICAS: Intends to Bid in Energy Auctions This Year
COMPANHIA ENERGETICA: S&P Assigns brCCC Long-term Rating
COMPANHIA VALE: Approves First Installment Dividend Payment

IDEAL EDUCACAO: S&P Assigns brBB+f Long-term Rating
KRATON POLYMERS: Reports US$22.7 Million of Net Income in 2005
NET SERVICOS: Extraordinary & Annual General Meeting on Apr. 28
PETROLEO BRASILEIRO: Petros Fund Invests More in Stock Market
TELE NORTE: Lucent Tech Upgrades Company's Network in Brazil

VARIG S.A.: VarigLog Extends US$350 Million Purchase Offer
VARIG S.A.: Workers Demand Government Intervention

* Chile, Brazil, Ecuador Oil Firms Start Talk to Develop Field

C A Y M A N   I S L A N D S

R.R.G.: Schedules Final Shareholders Meeting on May 5
SEED PROPERTIES: Final General Meeting Set for May 3
TARA EUROPEAN: Final General Meeting Set for May 20
WHITESTONE BRIDGE 2003-1: Sets May 4 Claims Filing Deadline
WHITESTONE BRIDGE 2003-2: Sets May 4 Claims Filing Deadline

C O L O M B I A

* COLOMBIA: President Uribe Defends US Free Trade Agreement
* COLOMBIA: Starts Talks for Free Commerce Pact with Honduras

E C U A D O R

* Chile, Brazil, Ecuador Oil Firms Start Talk to Develop Field

E L   S A L V A D O R

MILLICOM INTERNATIONAL: Subscriber Base Up by 11% in March 30

H O N D U R A S

* HONDURAS: Starts Talks for Free Commerce Pact with Colombia

J A M A I C A

MIRANT CORPORATION: Incurs US$1.3 Billion Net Loss in 2005

M E X I C O

ALMACENADORA GOMEZ: S&P Puts mxBB Long-term Rating
BALLY TOTAL: Inks Stock Purchase Accords with Wattles & Ramius
DIRECTV GROUP: Innova's Tender Offer Expired on April 11
ELAMEX S.A.: Shareholders' Extraordinary Meeting Set for Apr. 27
HIPOTECARIA MEXICO: S&P Puts D Long-Term and Short-Term Ratings

J.L. FRENCH: Can Advance US$382,500 to China Holdings Affiliate
UNION DE CREDITO: S&P Assigns mxB Short-Term Rating
VITRO S.A.: S&P Puts mxBB+ Long-term Rating

* MEXICO: S&P Puts mxBB+ Long-term Rating

P E R U

* PERU: Reports US$1.37 Billion Export Sales for February
* PERU: S&P Examines Election Impact on Credit Outlook

P U E R T O   R I C O

G+G RETAIL: Wants Removal Period Stretched Until July 24
GLOBAL HOME: Taps Pachulski Stang as Bankruptcy Counsel
MUSICLAND HOLDING: Can Honor Prepetition Bonus Obligations

T R I N I D A D   &   T O B A G O

NORTEL NETWORKS: Opening New Offices in Port of Spain

U R U G U A Y

* URUGUAY: IFC Releases Environmental Impact Study on Pulp Mills

V E N E Z U E L A

CITGO: Base Selling Price for Houston Refinery Set at US$4 Bil.
PDVSA: PetroChina Gets Two Thirds Orimulsion Fuel from Orinoco

* VENEZUELA: Oil Ministry Tries to Reassure Foreign Investors

* S&P Says Latin American Banks to Have Good Year on Loan Growth


                          - - - - -

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


AGUAS ARGENTINAS: Wants to Collect Bills from Concession Deal
-------------------------------------------------------------
Aguas Argentinas is trying to collect an estimated ARS100
million from unpaid bills in its cancelled concession contract
with Buenos Aires, El Cronista reports.

As previously reported, Aguas Argentinas stopped being Buenos
Aires' water and sewerage utility when its contract with Buenos
Aires was revoked on March 21, 2006.  It was replaced by AySA, a
state-run company.  The concessionaire's contract was rescinded
after negotiations to sell the company collapsed.

AySA, however, set the cut off date for the former
concessionaire's service charges as March 27, Business News
Americas states.

According to BNamericas, Aguas Argentinas launched a media
campaign, telling consumers that they still must pay the pending
bills.

Aguas Argentinas sources told BNamericas that unpaid bills up to
March 27 reach ARS60 million while water regulator Etoss claimed
the consumers' debts total ARS100 million.

BNamericas reports that the former Buenos Aires concessionaire
may find it hard to make users pay.  It could no longer threaten
to cut off the users' water supplies since it has stopped
operations in the province.

Aguas Argentinas however told BNamericas that there are other
legal measures with which to compel customers to pay, one of
which is that buyers of property demand that all service and tax
bills are paid up.

About 70% of consumers paid bills on time and another 10% paid
before a second demand was issued hence, the company was never
affected badly by unpaid bills, BNamericas reports.


ARREDAMENTI ITALIANI: Claims Verification Ends on June 27
---------------------------------------------------------
The verification phase for the claims submitted by creditors
against bankrupt company Arredamenti Italiani S.A. has started,
Argentine daily La Nacion reports.  The claims verification will
end on June 27, 2006.

Arredamenti Italiani was declared bankrupt by Buenos Aires'
Court No. 6 with the assistance of Clerk No. 11.  The court made
the ruling in favor of Jose Mandelman, whom the company owes
$51,785.67.  Juan Roque Treppo was appointed as trustee.

The debtor can be reached at:

         Arredamenti Italiani S.A.
         Congreso 1745/49
         Buenos Aires, Argentina

The trustee can be reached at:

         Juan Roque Treppo
         Sarmiento 1183
         Buenos Aires, Argentina


CAMUZZI GAS: Moody's Puts B2 Rating on Global Local Currency
------------------------------------------------------------
Moody's Investors Service assigned a B2 global local currency
rating and an A2.ar national scale rating to Camuzzi Gas
Pampeana's issue of up to ARS75 millions senior unsecured Class
3 notes with a stable outlook.

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

The ratings reflect Moody's view that despite uncertainties
about the regulatory framework and lack of actions to date with
respect to the regulatory approval and implementation of tariff
increases, Camuzzi has nevertheless managed to reduce debt and
generate positive cash flows during a difficult operating
environment.

Since the end of 2001, Camuzzi has reduced total debt and
converted debt from US dollars to pesos, eliminating FX risk.
Operating margins have improved slightly and have stabilized in
the 9% range.  As a result of substantial past investments, the
gas distribution network is in relatively good operating
condition and therefore would require only maintenance capex
going forward.

The B2 credit rating reflects the company's monopoly position
within its concession area and its priority position with
respect to gas procurement.  These factors together with the
cost pass-through mechanism, positions Camuzzi to operate as a
relatively low-risk regulated business.  However, the rating
also reflects the current level of uncertainty with respect to
the regulatory framework.

Camuzzi Gas Pampeana is an Argentinean gas distribution utility,
operating in areas of Buenos Aires and La Pampa, with more than
1 million clients and annual revenues of more than ARS400
million.


CASA GONZALEZ: Trustee Sets June 12 as Last Day to File Claims
--------------------------------------------------------------
Court-appointed trustee Liliana Isabel Quiroga will stop
verifying claims from Casa Gonzalez S.A.'s creditors on June 12,
2006.  Infobae relates that verified claims will be used as
basis in creating individual reports.

Infobae did not state in its Web site the dates for the
submission of individual and general reports.

The trustee can be reached at:

         Liliana Isabel Quiroga
         Terrero 1752
         Buenos Aires, Argentina


CELLULAR FASHION: Trustee Verifies Claims Until May 16
------------------------------------------------------
Creditors' claims against Cellular Fashion S.R.L. will be
verified until May 16, 2006, Infobae reports.

Daniel Guillermo Contador -- the court-appointed trustee -- will
prepare individual reports out of the validated claims and
present them in court on June 29, 2006.

The submission of a general report will follow on Aug. 25, 2006.

The trustee can be reached at:

         Daniel Guillermo Contador
         Tucuman 1657
         Buenos Aires, Argentina


CLAXSON INTERACTIVE: Holders Appoint Steven Bandel as Director
--------------------------------------------------------------
The holders of the Class C common stock of Claxson Interactive
Group, Inc., have appointed Steven Bandel to serve as a director
of the company effective as of April 7, 2006.

Mr. Bandel, the President and Chief Operating Officer of the
Cisneros Group of Companies, will replace Ana Teresa Arismendi
as director.  Ms. Arismendi resigned from the company's board on
April 7.

It has not yet been determined on which committees of the
company's board of directors Mr. Bandel will serve.

The Class C common stock holders have the right to elect four
persons to the company's board of directors and fill any Class C
designee vacancies, as stated in the company's Amended and
Restated Articles of Association.

                          Liquidity

As of December 31, 2005, Claxson had cash and cash equivalents
of US$25.1 million and financial debt of US$68.8 million
including principal and accrued but unpaid interest.  In
addition, future interest payments on the Company's 8.75% Senior
Notes due in 2010, totaling US$13.0 million as of December 31,
2005, are recorded as debt.

For the twelve-month period ended December 31, 2005, Claxson's
operating activities generated cash flows of US$16.3 million
compared to US$3.6 million for the same period of 2004.  The
difference is primarily due to improved operating results.  Cash
generated from operating activities was primarily used for the
payment of debt obligations and for capital expenditures.  In
addition, during the twelve-month period ended December 31,
2005, Claxson received US$10.9 million, net of transaction
expenses paid, from the sale of assets (primarily Chilevision).
As part of the terms of the Chilevision sale, we retained
approximately US$5.9 million of Chilevision's accounts
receivable which are being collected as expected.

                 About Claxson Interactive

Claxson Interactive Group Inc. distributes content through pay
and broadcast television, radio, and the Internet. It owns or
distributes interests in more than a dozen pay TV channels,
including Playboy TV Latin America (81%).  The company also owns
a handful of Internet businesses (under the El Sitio name).
Claxson, which operates throughout North and South America, was
formed by the 2001 merger of El Sitio and Ibero-American Media
Partners, a joint-venture between the Cisneros Group of
Companies and HM Capital Partners.  CGC and HM Capital together
own about 60% of the company.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 2, 2006,
Fitch Argentina Calificadora de Riesgo S.A. maintained its
'B(arg)-' rating on US$44.4 million worth of undated
"Obligaciones negociables" bonds issued by Claxson Interactive
Group Inc.


COMPANIA GENERAL: Suspected of Fraud During Restructuring
---------------------------------------------------------
As previously reported, Sociedad Comercial del Plata and its
former subsidiary, Compania General de Combustibles, have
concluded their restructuring proceedings after a Buenos Aires
commercial court handling the proceedings has approved their
debt agreements.

However, a complaint filed by the General de la Camara Comercial
represented by Alejandra Gils Carbo and Manuel Garrido of the
Investigaciones Administrativas spurred a probe by the court for
possible fraud committed by the two companies during their
restructuring proceedings.

According to the claim, the acuerdos preventivos was made by
ficticious majorities and through paralel businesses on which
other companies, creditors banks and offshore societies would be
included.

The commercial justice accepted the agreements in the middle of
last year.  As a result, the companies reestructured a debt for
US$900 million avoiding bankruptcy.

The fraud, the suit says, would have injured holders of SCP's
bonds totaling US$256 million.  In this sense, bondholders would
not have been able to vote under the payment proposal formulated
by the companies.

The accusation also includes Banco Nacion, one of the main
creditors. The suit alleges that the bank provided millions in
credits to the companies being investigated.

Another part of the claim is the transfer of SCP's 81% stake in
CGC to Explore Acquisition Explorations, made in the midst of
the concurso, not normally allowed except when it is beneficial
to creditors.


DIETA OPTIMA: Trustee Stops Accepting Claims After May 29
---------------------------------------------------------
Leonor Haydee Veiga -- the trustee appointed by the Buenos Aires
court for the Dieta Optima S.A. bankruptcy case -- will stop
validating claims from the company's creditors after May 29,
2006.

Ms. Veiga will present the validated claims in court as
individual reports on July 25, 2006.  The trustee will also
submit a general report on the case on Sept. 6, 2006.

The trustee can be reached at:

         Leonor Haydee Veiga
         Humahuaca 4165/67
         Buenos Aires, Argentina


SOCIEDAD COMERCIAL: Accused of Fraud During Restructuring
---------------------------------------------------------
As previously reported, Sociedad Comercial del Plata and its
former subsidiary, Compania General de Combustibles, have
concluded their restructuring proceedings after a Buenos Aires
commercial court handling the proceedings has approved their
debt agreements.

However, a complaint filed by the General de la Camara Comercial
represented by Alejandra Gils Carbo and Manuel Garrido of the
Investigaciones Administrativas spurred a probe by the court for
possible fraud committed by the two companies during their
restructuring proceedings.

According to the claim, the acuerdos preventivos was made by
ficticious majorities and through paralel businesses on which
other companies, creditors banks and offshore societies would be
included.

The commercial justice accepted the agreements in the middle of
last year.  As a result, the companies reestructured a debt for
US$900 million avoiding bankruptcy.

The fraud, the suit says, would have injured holders of SCP's
bonds totaling US$256 million.  In this sense, bondholders would
not have been able to vote under the payment proposal formulated
by the companies.

The accusation also includes Banco Nacion, one of the main
creditors. The suit alleges that the bank provided millions in
credits to the companies being investigated.

Another part of the claim is the transfer of SCP's 81% stake in
CGC to Explore Acquisition Explorations, made in the midst of
the concurso, not normally allowed except when it is beneficial
to creditors.


* ARGENTINA: Has to Pay Capital Ventures for Brady Bonds by 2023
----------------------------------------------------------------
A United States Court issued an order in favor of Capital
Ventures International on a claim it filed against the Argentine
government's Brady bonds which are in default.  According to the
Court's order, CVI will receive the money in the year 2023.

Capital Ventures International is a fund created in the Cayman
islands. It has invested million of dollars in shares and bonds
of every type: government, electricity and technology, among
others.  CVI operates in the market through an authorized
agency: Heights Capital Management.

                        *    *    *

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


=============
B A H A M A S
=============

WINN-DIXIE: Court Okays Abandonment of Unsold Inventory & FF&E
--------------------------------------------------------------
Since Winn-Dixie Stores, Inc., and its debtor-affiliates filed
for bankruptcy, they have developed and implemented a new
reduced footprint.  Accordingly, the Debtors have closed or sold
more than 500 stores and liquidated the inventory, furniture,
fixtures, and equipment at 216 of those stores.

The Debtors have since decided to sell or close 35 more
underperforming stores and intended to market and sell them as
ongoing businesses.

The 35 Targeted Stores are:

               Store No.     Designated Market Area
               ---------     ----------------------
                  310         Miami-Ft. Lauderdale
                  240         Miami-Ft. Lauderdale
                  339         Miami-Ft. Lauderdale
                  301         Miami-Ft. Lauderdale
                  217         Miami-Ft. Lauderdale
                  211         Miami-Ft. Lauderdale
                  205         Miami-Ft. Lauderdale
                  372         Miami-Ft. Lauderdale
                  215         Miami-Ft. Lauderdale
                 2324         Orlando-Daytona
                 2298         Orlando-Daytona
                 2330         Orlando-Daytona
                 2257         Orlando-Daytona
                 2650         Orlando-Daytona
                 2254         Orlando-Daytona
                 2387         Orlando-Daytona
                  659         Tampa-St. Petersburg
                  602         Tampa-St. Petersburg
                  613         Tampa-St. Petersburg
                  695         Tampa-St. Petersburg
                  643         Tampa-St. Petersburg
                  738         Myers-Naples
                  735         Myers-Naples
                  725         Myers-Naples
                  719         Myers-Naples
                  149         Albany
                   71         Albany
                 2357         West Palm Beach-Ft. Pierce
                  208         West Palm Beach-Ft. Pierce
                  185         Jacksonville
                  409         Columbus
                  516         Birmingham
                  192         Tallahassee
                 1571         Lafayette
                 1579         Baton Rouge

The Debtors posted the list of the 35 Stores in their Web site.
As a result, the Debtors have experienced negative sales trends
at the Stores and based on the Debtors' past experience, the
negative sale will likely accelerate, D. J. Baker, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in New York, tells the
Court.

For this reason, Winn-Dixie Stores, Inc., and its debtor-
affiliates sought and obtained authority from the U.S.
Bankruptcy Court for the Middle District of Florida to:

   (a) discontinue operations at each of the Targeted Stores and
       sell each Stores' existing inventory, equipment and
       supplies; and

   (b) sell the Merchandise, and the furniture, fixtures and
       equipment at the Targeted Stores, free and clear of
       liens, claims and interests;

   (c) in their sole discretion, abandon any Merchandise or FF&E
       they are unable to sell; and

   (d) sell the pharmaceutical inventory and prescriptions at
       the Targeted Stores to the Purchaser who submits the
       highest or best offer, free and clear of liens, claims,
       and interests.

                       Objections

A) Florida Tax Collectors

The Tax Collectors for 56 Florida counties, including the
counties where 28 of the Florida stores to be closed are
located, tell the Court that the 2005 tangible taxes for the
Stores aggregate $392,718 and remain unpaid.

The 28 Florida stores are located in:

    * Brevard County,
    * Broward County,
    * Collier County,
    * Miami-Dade County,
    * Duval County,
    * Hillsborough County,
    * Indian River County,
    * Lee County,
    * Manatee County,
    * Orange County,
    * Osceola County,
    * Palm Beach County,
    * Pinellas County,
    * Polk County,
    * Sarasota County, and
    * Seminole County,

Brian T. FitzGerald, Esq., counsel for the Florida Tax
Collectors, relates that the 2005 real estate taxes on some of
the Stores have been paid, but there are unpaid 2005 real estate
taxes for 15 Stores totaling $2,140,924.

Mr. FitzGerald adds that 2006 ad valorem taxes were assessed and
a statutory first lien was imposed on the property on Jan. 1,
2006, pursuant to Section 197.122 of the Florida Statutes.

Mr. FitzGerald contends that the Debtors' request to liquidate,
abandon, or otherwise transfer the tangible personal property at
all locations in a manner that best enhances value for creditors
-- may be in the best interest of the Debtors, but it is not in
the best interest of the Florida Tax Collectors, who have a
first lien on the collateral to be liquidated.

The Florida Tax Collectors have the ability under state law to
seize and sell tangible property, and they are not entitled to a
commission as the Debtors want to pay to Hilco Merchant
Resources, LLC, and Gordon Brothers Retail Partners, LLC.

Mr. FitzGerald asserts that a sale "free and clear of liens" is
improper without providing adequate protection:

    (a) to the Florida Tax Collectors as a statutory first lien
        holder; and

    (b) that the 2006 postpetition taxes incurred by the Debtors
        are paid in compliance with Sections 959 and 960 of the
        Judicial Procedures Code.

The Tax Injunction Act, Section 1341 of the Judiciary Procedures
Code and Section 362(b)(18) of the Bankruptcy Code preclude
interference with the assessment of ad valorem taxes and lien
creation relative to ad valorem property taxes, Mr.
FitzGerald tells the Court.

Mr. FitzGerald argues that the Debtors' representation that
there are no interests or claims in the FF&E which will attach
to the net proceeds of sale other than the senior liens and
superpriority administrative claims of the DIP lender is
incorrect, in that it fails to advise the Court of the statutory
first liens of the Florida Tax Collectors.

Accordingly, the Florida Tax Collectors ask the Court deny
relief:

    (a) relative to their collateral; and

    (b) sought against them individually as constitutional
        officers and arms of the State of Florida.

The Florida Tax Collectors ask the Court to order the Debtors to
establish a separate segregated escrow account with sufficient
funds to pay all 2005 and 2006 ad valorem property taxes for the
28 Stores, and that the escrow account be funded on a monthly
basis with additional interest due to the Florida Tax Collectors
as fully secured creditors until the taxes, interest, and
attorney's fees are paid in full.

B) Landlords of Store No. 215

Hecht Properties, Ltd., Viola Gautier, James Kramer, and Jeffrey
Lefcourt are the landlords to Store No. 215.

David C. Profilet, Esq., tells the Court that the Debtors failed
to consider that with abandonment, they are at risk of incurring
additional administrative obligations in the form of the costs
incurred by the Landlords to dispose of the abandoned property.
In some instances, the Debtors may be better equipped than the
Landlords to dispose of the property, and thus able to do so at
a lower cost, Mr. Profilet says.

Therefore, in the case of Store No. 215, if the Landlords are
left to dispose of any property abandoned by the Debtors, the
Landlords will assert an administrative claim for the
abandonment cost, as well as their attorneys' fees and expenses.

                Sale of Pharmaceutical Assets

The Debtors operate pharmacies at 30 of the Targeted Stores.  By
state law, the Debtors are unable to close a store without
selling or otherwise transferring the Pharmaceutical Assets to
another of its locations or to another vendor.

Where economically feasible, the Debtors will transfer the
Pharmaceutical Assets to another of their Stores.  Otherwise,
the Debtors will sell the Pharmaceutical Assets.

According to Mr. Baker, there is a significant market for
Pharmaceutical Assets among a fairly small group of purchasers.
The Debtors are providing an information package detailing the
Pharmaceutical Assets available for sale to each potential
purchaser that, in their business judgment, will purchase the
Pharmaceutical Assets for maximum value while minimizing the
competitive risk to the Debtors' operation.  The Debtors
anticipate receiving a number of offers for the Pharmaceutical
Assets.

The Court approved the sale of pharmaceutical assets and the
corresponding purchase agreements to the successful bidders:

   Purchaser        Store No.  Location                Final Bid
   ---------        ---------  --------                ---------
   Freds Stores of     192     Cairo, Georgia           $45,000
   Tennessee, Inc.

   Walgreen Co.        217     Pompano Beach, Florida   $325,000
                       602     Bartow, Florida
                       719     Cape Coral, Florida
                      2254     Kissimmee, Florida
                      2357     Vero Beach, Florida

   Target
   Corporation         339     Davie, Florida           $435,000
                       643     Tampa, Florida
                       695     Palm Harbor, Florida
                      2298     Melbourne, Florida
                      2330     Merritt Island, Florida

   CVS Corporation      71     Tifton, Georgia         $260,000
                       149     Cordele, Georgia
                       659     Sarasota, Florida
                       725     North Fort Myers, Florida
                       735     Naples, Florida
                      1571     Ville Platte, Louisiana
                      1579     Plaquemine, Louisiana
                      2324     Cocoa, Florida

The only known claim or interest in the Pharmaceutical Assets
other than the Debtors is that of Wachovia Bank, National
Association, as Administrative Agent and Collateral Agent for
itself and the other financial institutions from time to time
parties to the Credit Agreement dated as of Feb. 23, 2005, as
may amended.  The DIP Lender consents to sale of the
Pharmaceutical assets.

The DIP Lender is adequately protected because the Debtors will
use the sale proceeds in accordance with the terms of the Final
Financing Order.

                      Store Closing

Judge Funk permits the Debtors to cease retail operations at 35
Closing Stores, and sell the Merchandise and furniture, fixtures
and equipment in those stores.

       Store No.    Store Name
       ---------    ----------
           71       Tifton, Georgia
          149       Cordele, Georgia
          185       Jacksonville, Florida
          192       Cairo, Georgia
          205       Miami, Florida
          208       West Palm Beach, Florida
          211       Plantation, Florida
          215       N Miami Beach, Florida
          217       Pompano Beach, Florida
          240       Hialeah, Florida
          301       Ft. Lauderdale, Florida
          310       Davie, Florida
          339       Davie, Florida
          372       Sunrise, Florida
          409       Opelika, Al
          516       Brent, Al
          602       Bartow, Florida
          613       Bradenton, Florida
          643       Tampa, Florida
          659       Sarasota, Florida
          695       Palm Harbor, Florida
          719       Cape Coral, Florida
          725       Ft Myers, Florida
          735       Naples, Florida
          738       Naples, Florida
         1571       Ville Platte, Louisiana
         1579       Plaquemine, Louisiana
         2254       Kissimmee, Florida
         2257       Orlando, Florida
         2298       Melbourne, Florida
         2324       Cocoa, Florida
         2330       Merritt Island, Florida
         2357       Vero Beach, Florida
         2387       Casselberry, Florida
         2650       Orlando, Florida

In the event any landlord alleges that the Agent or the Merchant
has violated the Order or any Landlord Agreement, the landlord
may seek a hearing on three days' notice.

In their sole discretion, with the exception of Store No. 215,
which Objection will be heard on a later date, the Debtors are
authorized, after consultation with the Creditors' Committee and
DIP Lender, to abandon any Merchandise and FF&E they are unable
to sell.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas under the Winn-
Dixie, Winn-Dixie Marketplace, SaveRite, and City Market
banners, and employs approximately 90,000 people.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-
03817 through 05-03840).  D.J. Baker, Esq., at Skadden Arps
Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and
Brian C. Walsh, Esq., at King & Spalding LLP, represent the
Debtors in their restructuring efforts.  Paul P. Huffard at The
Blackstone Group, LP, gives financial advisory services to the
Debtors.  Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley &
McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt
give legal advice to the Official Committee of Unsecured
Creditors.  Houlihan Lokey & Zukin Capital gives financial
advisory services to the Committee.  When the Debtors filed for
protection from their creditors, they listed $2,235,557,000 in
total assets and $1,870,785,000 in total debts.  (Winn-Dixie
Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service,
Inc., 215/945-7000).


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


AFFILIATED CHEMICAL: Proofs of Claim Must be Submitted by May 5
---------------------------------------------------------------
Creditors of Affiliated Chemical Employers Reinsurance Ltd. must
present by May 5, 2006, proofs of their claim to Michael W.
Morrison, at KPMG, the company's liquidator.  Creditors who fail
to do so would be excluded from receiving any distribution or
payment that the company will make.

Creditors are required to send by the said date their full
names, addresses, descriptions, the full particulars of their
debts or claims, and the names and addresses of their lawyers,
if any, to Mr. Morrison.

A final general meeting will be held at 10:00 a.m. at the
luquidator's place of business on June 7, 2006:

         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.

The company began liquidating assets on March 30, 2006.


COMMONWEALTH & BRITISH: Claims Verification Ends on May 8
---------------------------------------------------------
Verification of creditors' claims against Commonwealth & British
Minerals Limited will end on May 8, 2006.

Creditors must present proofs of their claim to Nicholas
Hoskins, at Wakefield Quin, the company's liquidator, or be
excluded from receiving any distribution or payment that the
company will make.

A final general meeting is set for May 15, 2006, at 11:00 a.m.
at:

         Wakefield Quin
         Chancery Hall, 52 Reid Street
         Hamilton, Bermuda

The final meeting will be held for the purposes of:

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

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

   -- by resolution dissolving the company.

The company began liquidating assets on April 11, 2006.


HCL SERVICES: Creditors Must File Proofs of Claim by April 26
-------------------------------------------------------------
HCL Services Limited's creditors are given until April 26, 2006,
to prove their claims to Robin J. Mayor, at Conyers Dill &
Pearman -- the company's liquidator, or be excluded from
receiving any distribution or payment that the company will
make.

Creditors are required to send by the said date their full
names, addresses, descriptions, the full particulars of their
debts or claims, and the names and addresses of their lawyers
(if any) to Mr. Mayor

A final general meeting is scheduled on May 17, 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 will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on April 5, 2006.

The liquidator can be reached at:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton, Bermuda


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


COEUR D'ALENE: Earns US$9.9 Million in Fourth Quarter of 2005
-------------------------------------------------------------
Coeur d'Alene Mines Corporation earned record quarterly net
income of $9.9 million for the fourth quarter of 2005, compared
to net income of $8.3 million for the year-ago period.  Results
for the year-ago quarter included a tax benefit of $5.8 million.

For the full year 2005, the company reported net income of
$10.6 million compared to a net loss of $16.9 million for 2004.

Revenues for the fourth quarter and full year of 2005
reached all-time highs.  Revenue for the fourth quarter of 2005
was $54.8 million, a 22% increase compared to revenue of
$44.8 million in the year-ago period.  Revenue for the full year
of 2005 was $172.3 million, a 30% increase compared to revenue
of $132.8 million in the year-ago period.

In commenting on the company's performance, Dennis E. Wheeler,
Chairman, President and Chief Executive Officer, said, "The
company reported an all-time record level of quarterly net
income in the fourth quarter of 2005 due in large measure to
solid overall operating performance in a market characterized by
strong demand and robust price levels."

Wheeler added, "We are seeing the benefits of our strategy to
significantly increase our low-cost production ounces, reserves,
cash flow and resulting earnings, a strategy that was
strengthened by our 2005 Australian acquisitions.  Our cash cost
per ounce of silver remained very competitive and actually
showed a 30% decline during the second half of 2005 as compared
with the first six months of the year."

Coeur currently expects 2006 silver production to be
approximately 18 million ounces, a 31% increase over the level
of 2005, and depending on the outcome of the company's review of
strategic alternatives for Coeur Silver Valley in Idaho.  The
company expects a consolidated silver cash cost per ounce of
approximately $4.11 per ounce, approximately 4% below the
consolidated cash cost for 2005.  The company expects full-year
gold production to be approximately 129,000 ounces.

                Highlights by Individual Property

  -- Cerro Bayo (Chile)

     At a silver cash cost of $0.54 per ounce for 2005, Cerro
     Bayo remained the lowest-cost mine in Coeur's system.
     Coeur's exploration efforts during 2005 at Cerro Bayo were
     extremely successful, increasing proven and probable silver
     mineral reserves by 22% and gold by 14%.  In addition,
     measured and indicated silver mineral resources increased
     by 12% and inferred by 107%, while measured and indicated
     gold mineral resources increased by 18% and inferred by 59%
     -- all compared to year-end 2004 levels.

     Fourth quarter silver production continued a trend of
     successively higher quarterly production during 2005, and
     was 18% above production in the first quarter of the year
     due to improved grade.

     Silver and gold production in the fourth quarter of 2005
     were below the unusually high levels of the year-ago
     quarter due to fewer tons mined.

  -- Martha (Argentina)

     Silver production in the fourth quarter of 2005 was up 9%
     relative to the year-ago quarter.  Silver cash cost per
     ounce was generally consistent at $4.60 during the year.
     Despite record production levels in 2005, Coeur increased
     silver proven and probable mineral reserves at Martha
     during the year, and more than doubled its inferred silver
     mineral resource.

  -- Endeavor (Australia)

     Since Coeur's acquisition of the Endeavor mine's silver
     reserves and production in May of 2005, the property
     contributed 316,169 silver ounces at a low cash cost per
     ounce of $2.05.  Silver production in the fourth quarter of
     2005 was affected by an uncontrolled rock fall that limited
     mining activity and affected cash cost per ounce.

     Coeur expects 2006 production to approach an annual rate of
     approximately 1 million ounces, with more than half of that
     amount coming in the second half of the year.

     Year-ago comparisons for Endeavor are not meaningful
     because the mineral interest was acquired in the second
     quarter of 2005.

     In addition to providing low-cost silver production,
     Endeavor contributed more than 23 million ounces to Coeur's
     proven and probable mineral reserves.

  -- Broken Hill (Australia)

     Since Coeur's acquisition of the Broken Hill mine's silver
     reserves and production in September of 2005, the property
     contributed 657,093 ounces of silver production at a low
     cash cost per ounce of $2.72.  Silver production in the
     fourth quarter was 574,083 ounces.

     Year-ago comparisons for Broken Hill are not meaningful
     because the mineral interest was acquired in the third
     quarter of 2005.

     In addition to providing low-cost silver production, Broken
     Hill contributed nearly 15 million ounces to Coeur's proven
     and probable mineral reserves.

  -- Rochester (Nevada)

     This property had an exceptionally strong second half of
     the year, with silver production 44% above that of the
     first half of 2005, and gold production 48% above the level
     of the first half.  Additionally, silver cash cost per
     ounce declined 52% during the second half of 2005, despite
     an upward trend in the price of energy and steel.  Silver
     and gold production for the fourth quarter were modestly
     below the levels of a year-ago due to fewer tons mined.

  -- Galena (Coeur Silver Valley, Idaho)

     Silver production for the fourth quarter of 2005 was below
     that of the fourth quarter of 2004 due to lower than
     expected ore grades and shorter vein lengths in certain
     areas of the mine.  The same factors caused an increase in
     cash cost per ounce of silver for the fourth quarter of
     2005 relative to the year-ago period.  However, over the
     course of the fourth quarter and into early 2006, Galena
     has reported a trend of improved monthly production and
     indications of higher ore grades.  As previously disclosed,
     the company is evaluating strategic alternatives for Galena
     and the associated assets of Coeur Silver Valley.  The
     company has said those alternatives could include a
     possible sale of this subsidiary.

       Increase in Proven and Probable Silver Reserves

As of Jan. 1, 2006, the company's proven and probable silver
mineral reserves total 221.4 million ounces, a 13% increase
relative to the level of Jan. 1, 2005, largely due to increases
at the company's South American properties and the acquisitions
in Australia.  Proven and probable gold mineral reserves at Jan.
1, 2006, were 1.3 million ounces, and the company remains
optimistic for expansion of gold reserves due to ongoing
exploration drilling at Kensington, where Coeur has focused on
further definition and expansion of its mineral resources and
reserves.

       Capital Investment and Balance Sheet Highlights

The company had $240.4 million in cash and short-term
investments as of Dec. 31, 2005.  Capital spending during the
fourth quarter of 2005 totaled $31.7 million, primarily
associated with the Kensington gold mine.  For the full year
2005, capital investment totaled $116.8 million, primarily
associated with Kensington and the acquisitions of the Endeavor
and Broken Hill assets in Australia.  The company currently
expects capital investment in 2006 to approximate $182 million,
primarily associated with Kensington, the resumption of a more
aggressive construction schedule at the San Bartolome silver
mine in Bolivia, and the remaining payment on the Endeavor
acquisition.

           Update on Kensington Gold Project (Alaska)

As previously announced, the US Army Corps of Engineers
temporarily suspended the mine's Section 404.  However, the
company has continued to conduct construction activities not
governed by the Section 404 permit.  The company believes the
permit will be reinstated upon completion of the review, which
is expected in the first quarter of 2006.

Due to a broad increase in the cost of materials and supplies
impacting the industry in general, the company retained an
independent engineering firm to review its capital cost estimate
for Kensington during the fourth quarter of 2005.  As a result
of increased earthwork requirements, increased storm water
management programs, the costs associated with challenges to the
project's permits, and the general increase in commodity prices,
the company currently estimates the total cost of construction
to be approximately $190 million.  The project is expected to
have an annual production rate of 100,000 ounces and the
estimated cash operating cost per ounce is expected to be $250.
The company expects Kensington capital investment to total
approximately $77 million during 2006.  The company currently
expects that Kensington can begin operations during 2007.

During the second half of 2005, the company began an extensive
exploration program at Kensington designed to increase the size
and geologic continuity of gold mineralization currently in
indicated and inferred mineral resources.  The company completed
34,000 feet of core drilling from 74 drill holes.  Of these
holes, 87% encountered gold mineralization equal to or greater
than 0.12 ounces per ton, the cut-off for its mineral resources.
In addition, 5,000 feet of core drilling was completed on its
adjacent Jualin property.  The company continues to drill at
both properties and expects to update its mineral reserves and
mineral resources at Kensington during 2006 as information is
received.

        Update on San Bartolome Silver Project (Bolivia)

An updated project review has confirmed the $135 million capital
cost estimates for the project, which is expected to produce 6
to 8 million annual ounces of silver at a cash cost of $3.50 per
ounce.  The Bolivian national election was recently completed
without the necessity for a runoff, with the election of
President Evo Morales.  The company is targeting mid-year 2006
as the date to resume full-scale construction activities at the
site.  Additional construction work planned for the first half
of 2006 includes the construction of access roads to and around
the site, rough-cut grading of the mill site, construction of
ore stockpile areas, and the construction of a fence around the
perimeter of the plant site area.

Coeur d'Alene Mines Corporation -- http://www.coeur.com/-- is
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold.  The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 4, 2004,
Standard & Poor's Ratings Services affirmed its 'B-' corporate
credit and senior unsecured debt ratings on Coeur D'Alene Mines
Corporation and removed the ratings from CreditWatch, where they
were placed on June 1, 2004, with positive implications.  S&P
said the outlook is stable.


* BOLIVIA: Buying Five Percent of Telesur's Equity
--------------------------------------------------
The Bolivian government intends to acquire a five percent stake
in Venezuela's state-owned network, TV Nueva Television del Sur
aka Telesur.

According to the Agencia Bolivariana de Noticias, the deal will
be completed during the April 19-20 summit in Asuncion de
Paraguay by President Evo Morales and Venezuelan President Hugo
Chavez.

A letter of intent was inked last week by Minister Juan Ramon
Quintana and Andres Izarra, the chairman of Telesur, the
Associated Press reports.

Venezuela has a 51% stake in Telesur, which started operations
on July 24, 2005.  Argentina owns 20%, Cuba 19%, and Uruguay
10%.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


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


AES SUL: S&P Assigns brCC Long-term Rating
------------------------------------------
Standard & Poor's Ratings Services placed a brCC long-term
rating on AES Sul Distribuidora Gaucha de Energia S.A.  The
Outlook is Negative.

AES Sul's principal activity is the production, distribution and
transmission of electricity in the state of Rio Grande do Sul.
It operates in the domestic market of production and
distribution of energy.  It uses its concession rights to
explore and distribute electric energy in the 118 municipals of
Rio Grande do Sul.  The company has total 1,021,915 consumers at
the end of 2004.


BANCO SCHAHIN: S&P Puts B Rating on Senior Unsecured Notes
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
foreign-currency long-term senior unsecured debt rating to Banco
Schahin S.A.'s $25 million notes issued on April 11, 2006, under
the $100 million short-term note program.  The issue matures in
two years with semiannual payments.

"The counterparty credit rating on Banco Schahin S.A.
(B/Stable/B) reflects the intrinsic risks of a small bank facing
the challenge of growing its business while maintaining adequate
funding in the increasingly competitive banking market; the weak
credit quality of its remaining wholesale portfolio (mainly
credits to small and midsize companies) that, despite
improvement, is still worse than that of its major peers; and
like all the banks that operate in the same market, the margin
pressure related to retail lending," said Tamara Berenholc --
Standard & Poor's credit analysts.

These risk factors are offset by the bank's coherent strategy to
generate more retail business while gradually reducing the
weight of loans to small and midsize companies, the improvement
in credit quality and profitability through the increase of its
retail operations and the conservative approach of its treasury
activity.

The stable outlook on both local and foreign currency ratings
assigned to Schahin incorporates our expectation that the bank
will be able to maintain stability in its consumer finance and
payroll discount lending to support its growth strategy while
maintaining its profitability and asset quality indicators.  The
stable outlook also incorporates the maintenance of a BIS ratio
higher than 13%.

The outlook may be changed to positive or ratings may be raised
if the bank -- consolidated figures -- shows sustainable growth
and stronger returns, a significant improvement in asset quality
indicators -- with NPL ratio below 2% -- higher liquidity, and
better capital ratios.  On the other hand, the outlook could be
changed to negative or ratings could be lowered if there is a
significant deterioration in Schahin's asset quality ratios,
vis-a-vis its current levels, or if the bank is unable to
sustain its operations, thus reducing its profitability.


CENTRAIS ELETRICAS: Intends to Bid in Energy Auctions This Year
---------------------------------------------------------------
Brazil's federally controlled electric power holding company
Centrais Eletricas Brasileiras SA aka Eletrobras said it will
participate in the government's auctions of rights to build and
operate new hydroelectric plants at a yet-to-be-decided date
later this year.  The rights are won by the company offering to
produce energy from the plant at the lowest price, according to
a report from Dow Jones Newswires.

Jose Drummond Saraiva, an Eletrobras official, was quoted by Dow
Jones as saying during a conference call with analysts that the
company won't be making "crazy bids."

"We will involve ourselves in generation and transmission
auctions, but not at any price," Mr. Saraiva said.

Dow Jones relates that at the last auction in December 2005,
most private generating companies chose not to bid for the
rights to build and operate major new plants because they
wouldn't provide a minimum return on investment of 15%.  But
Eletrobras did bid, thus guaranteeing the success of the auction
run by its superiors at the Mines and Energy Ministry, and
consortia involving Eletrobras subsidiaries took most of the
concessions sold.

According to industry observers, Eletrobras will likely win the
tender of two major hydroelectric projects along the Rio Madeira
area.  The Santo Antonio and Jirau projects on the Amazon-
sourced river will have the potential to produce 6,000 megawatts
and will demand US$4.5 billion in investments. As such, they are
deemed too large, and too strategic, for a private company to
run, Dow Jones states.

                        *    *    *

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.


COMPANHIA ENERGETICA: S&P Assigns brCCC Long-term Rating
--------------------------------------------------------
Standard & Poor's Ratings Services placed a brCCC long-term
rating on Companhia Energetica de Sao Paulo.  The Outlook is
Stable.

Companhia Energetica plans, constructs, and operates electricity
generation and distribution systems in the State of Sao Paulo,
Brazil.  The company generates electricity through hydroelectric
plants located on the rivers Parana, Tiete, Paraibuna, and
Jaguari.  It operates 6 hydroelectric plants with total capacity
of 7,456 MW and reported net revenues of BRL1.9 billion
(approximately US$690 million) in the last twelve months through
June 30, 2005.


COMPANHIA VALE: Approves First Installment Dividend Payment
-----------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD approved Wednesday the
payment of the first installment of the 2006 minimum dividend to
shareholders -- about US$650 million, equivalent to
US$0.534683891 per outstanding common or preferred class A
share.  The payment will be made starting April 28.

CVRD's Senior Management proposal for the minimum dividend to be
paid to its shareholders in 2006 -- publicly disclosed on Jan.
26, 2006 -- established a minimum amount for the year of about
US$1.3 billion or US$1.069367781 per outstanding common or
preferred class A share.  This will be paid in two installments
-- on April 28 and Oct. 31, 2006.

The minimum dividend was proposed in accordance with CVRD's
Dividend Policy, and took into account the issuance of new
preferred class A aka PNA shares for the completion of the stock
merger with Caemi Mineracao e Metalurgia S.A., as approved at
the extraordinary general shareholders meeting on March 31,
2006.  The new CVRD PNA shares will be exchanged for Caemi
preferred shares beginning May 4, 2006.

                     Form of payment

The first installment of the minimum dividend will be paid
according to:

     -- Distribution of BRL1,392,300,000 equivalent to
        BRL1.145292894 per outstanding common or preferred class
        A share.  From this amount, BRL809,800,000 equivalent to
        BRL0.666133869 per outstanding preferred class A or
        common share, will be paid in the form of interest on
        shareholders' equity, and BRL582,500,000, equivalent to
        BRL0.479159025 per outstanding preferred or common
        share, in the form of dividends.

        The values were obtained from the conversion of the US
        dollar amount into Brazilian reais using the exchange
        rate for the sale of US dollar (Ptax - option 5 code),
        as informed by the Central Bank of Brazil on April 11,
        2006, of BRL2.1420 per US dollar, as announced on Jan.
        26, 2006.

     -- The payment will take place starting April 28, 2006.
        The distribution is subject to withholding income tax in
        accordance with the applicable Brazilian law.

     -- The record date for CVRD shares traded on the Sao Paulo
        Stock Exchange, BOVESPA, is April 12, 2006.  For the
        company's American Depositary Receipts aka ADRs traded
        on the New York Stock Exchange, NYSE, the record date
        will be April 18, 2006.  All shareholders on these
        respective record dates will have the right to the
        dividend payment.

     -- CVRD shares will trade ex-dividend in both markets from
        April 13, 2006.

                Holders of Caemi's preferred shares

The holders of Caemi preferred shares -- on the record date,
April 12, 2006, traded on the BOVESPA under the ticker symbol
CMET4 -- will have the right to receive the payment, considering
the exchange ratio of 0.04115 CVRD preferred class A share per
Caemi preferred share.  These investors will receive
BRL0.027411409 per share in the form interest on shareholders'
equity and BRL0.019717394 per share in the form of dividends.

                    CVRD 2006 minimum dividend

As reported in the Troubled Company Reporter on March 27, 2006,
CVRD's Board of Directors authorized the company's Executive
Board to decide on April 12, 2006, about the first installment
of the company's minimum dividend, in the amount of US$650
million, as publicly announced on Jan. 26, 2006.

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'.


IDEAL EDUCACAO: S&P Assigns brBB+f Long-term Rating
---------------------------------------------------
Standard & Poor's Ratings Services placed a brBB+f long-term
rating on Ideal Educacao FIDC Credit Receivables Fund:  Ideal
Educacao FIDC Credit Receivables Fund (Class sub share).


KRATON POLYMERS: Reports US$22.7 Million of Net Income in 2005
--------------------------------------------------------------
Polymer Holdings LLC, the parent company of KRATON Polymers LLC,
reported its financial results for the fourth quarter for the
fiscal year ended Dec. 31, 2005.

For the full year ended Dec. 31, 2005, KRATON reported $22.7
million of net income on $975.6 million of net revenues compared
to a $35.8 million net loss on $807.4 million of net revenues
for the same period in 2004.

Holdings' total revenues for the quarter were $223.0 million
compared to $208.8 million in the comparable period of 2004, an
increase of 6.8%.  This improvement was primarily driven by an
increase in average selling prices and an increase in sales
volume.

Holdings' gross profit for the fourth quarter increased over
$12.6 million or 41.3% to $43.1 million, as compared to $30.5
million in the comparable period of 2004.  After adjusting for
period-to-period differences in the amortization of the step-up
in inventory value related to the acquisition of the company in
December 2003, the improvement in gross profit over 2004 was
$10.0 million. Holdings' net loss for the quarter was $4.5
million, compared with a net loss of $13.0 million in the
comparable period of 2004.  Holdings ended the quarter with
$100.9 million in cash and cash equivalents, an increase of
$54.6 million from December 31, 2004 and $29.4 million from
Sept. 30, 2005.

KRATON, the operating subsidiary of Holdings, had a net loss for
the quarter of $1.9 million as compared with a net loss of $11.9
million in the comparable period of 2004. At the end of the
fourth quarter 2005, Last Twelve Months Adjusted Bank Covenant
EBITDA, a measure used to determine compliance with KRATON's
debt covenants, totaled $123.8 million, an increase of $25.8
million from the comparable period of 2004.  A reconciliation of
KRATON's EBITDA and Adjusted Bank Covenant EBITDA to net income
or net loss, as applicable, is attached.  Net income for the
full year was $22.7 million versus a net loss of $35.8 million
for the prior year.

Holdings' total revenue, which includes product sales and $22.7
million of other revenues, for the full year ended Dec. 31,
2005, was $975.6 million, compared to $807.4 million for the
year ended Dec. 31, 2004, an increase of 20.8%.  Product sales
increased to $952.9 million as compared to $791.2 million last
year, an increase of 20.4%. Sales volume increased by
approximately 6.9 kT, or 2.0% during the year, which increased
revenue by an estimated $9.6 million.  Favorable pricing and
product mix accounted for an estimated $145.8 million of the
increase and favorable foreign currency exchange rates improved
revenue by an estimated $6.3 million.  Net income for the full
year was $14.4 million versus a net loss of $36.9 million for
the prior year.

"We are very pleased with our fourth quarter results and the
improvements we achieved during the year.  In 2005 despite
continuing increases in raw material costs, KRATON was able to
make progress in our pricing strategies and operational
improvement programs," said George Gregory, Chief Executive
Officer and President. "Our efforts to drive profitable growth,
while carefully managing costs and inventory levels are paying
off. In 2005, we posted record numbers in sales volume growth
and inventory reduction.  Our enhanced liquidity gives us the
confidence to continue to invest in the innovation and growth
required to meet the future needs of our customers."

                       About KRATON

KRATON Polymers LLC is a premier, global specialty chemicals
company and is the world's largest producer of styrenic block
copolymers ("SBCs"), a family of products whose chemistry was
pioneered by KRATON over forty years ago. SBCs are highly
engineered synthetic elastomers, which enhance the performance
of products by delivering a variety of attributes, including
greater flexibility, resilience, strength, durability and
processability. KRATON polymers are used in a wide range of
applications including road and roofing materials, numerous
consumer products (diapers, tool handles, toothbrushes), tapes,
labels, medical applications, packaging, automotive and footwear
products. KRATON has the leading position in nearly all of its
core markets and is the only producer of SBCs with global
manufacturing capability. Its production facilities are located
in the United States, The Netherlands, Germany, France, Brazil,
and Japan.

Polymer Holdings LLC is the parent company of KRATON Polymers
LLC and has no material assets other than its investment in
KRATON Polymers LLC.

                        *    *    *

As reported on April 6, 2006, Standard & Poor's Ratings Services
revised its outlook on Kraton Polymers LLC and its parent,
Polymer Holdings LLC, to stable from negative.  At the same
time, Standard & Poor's affirmed all ratings on Kraton and
Polymer Holdings, including its 'B+' corporate credit ratings.


NET SERVICOS: Extraordinary & Annual General Meeting on Apr. 28
---------------------------------------------------------------
Shareholders of Net Servicos de Comunicacao S.A. will have an
extraordinary and annual general meeting on April 28, 2006, at
11:00 a.m. at:

           Rua Verbo Divino
           1356, Sao Paulo
           Brazil

During the extraordinary general meeting, the shareholders will
decide on:

   a) Amendment to the wording of caput of the Article 5 of the
      company's Bylaws to reflect the ratifications of the
      company's capital stock increases approved by the meetings
      of the board of directors held on:

        -- Sep. 2, 2005, the capital stock was increased from
           BRL387,408,498.71 to BRL3,388,419,058.96, resulting
           from the issuance for private subscription, within
           the authorized capital limit, of 2,887,315 preferred
           shares, all non-par registered, book-entry shares, at
           the issuance price of BRL0.35 per share,
           corresponding to BRL1,010,560.25, all subscribed and
           paid up by means of the exercise of a call option
           granted to the executives participating in the
           company's capital restructuring;

        -- Sep. 27, 2005, the capital stock was increased from
           BRL3,388,419,058.96 to BRL3,388,615,744.96, resulting
           from the issuance for private subscription, within
           the authorized capital limit, of 561,960 preferred
           shares, all non-par registered, book-entry shares, at
           the issuance price of BRL0.35 per share,
           corresponding to BRL196,686.00, all subscribed and
           paid up by means of the exercise of a call option
           granted to the executives participating in the
           company's capital restructuring and the closure of
           the call option plan granted to the executives
           participating in the company's capital restructuring
           was ratified; and

        -- Nov. 8, 2005, and Dec. 9, 2005, the capital stock
           increase from BRL3,388,615,744.96 to
           BRL3,474,272,185.28 was approved and ratified,
           respectively, resulting from the issuance, within the
           authorized capital limit, of 39,706,606 common shares
           and 57,630,258 preferred shares, all non-par
           registered, book-entry shares, at the issuance price
           of BRL0.88 per share, corresponding to
           BRL85,656,440.32, all subscribed and paid up by means
           of the capitalization of the tax benefit held by the
           controlling shareholder Roma Participacoes Ltda.
           resulting from the amortization of the incorporated
           goodwill, in view of the merger of Globotel
           Participacoes S.A. aka Globotel, as allowed by the
           Article 7, paragraph 1, of CVM Instruction #319/99
           and pursuant to the provision of the clause 8 of the
           Merger Protocol of Globotel.

   b) To resolve on the reverse split of each lot of 15 shares
      issued by the company in one share issued by the company,
      changing them into 263,644,244 non-par registered, book-
      entry shares, 107,548,340 of which are common shares and
      156,095,904 are preferred shares, pursuant to the
      provision in the Article 12, of Law 6,404/76, with the
      consequent amendment to the wording of the caput of the
      Article 5 of the company's bylaws.

   c) Amendment to the wording of the Articles 9, 11, 27, 28,
      30, 32, 33, 34 and 36 of the company's bylaws to adapt to
      the new Rules of Level 2 Differentiated Corporate
      Governance Practices.

   d) Consolidation of the company's bylaws.

The draft of the Bylaws to be discussed and amended at the
extraordinary general meeting is made available to shareholders
as of April 12 at the company's headquarters, sent to the Sao
Paulo Stock Exchange, pursuant to the provisions in the Articles
35, paragraph 3 and 124, paragraph 6 of Law 6,404/76.

During the annual general meeting, the shareholders will decide
on these matters:

   a) To take the management accounts, examine, discuss and vote
      the financial statements of the fiscal year ended on
      Dec. 31, 2005, without the determination of the results to
      be distributed;

   b) To elect the members of the board of directors and
      determine the compensation of the managers.

   c) To elect the members of the fiscal council and determine
      their compensation.

Under the terms of the CVM Instruction #165/91, amended by the
Instruction #282/98, the percentage for the adoption of the
multiple vote for election of the members of the board of
directors is 5% of the voting capital.

The shareholders participating in the Fungible Custody of
Registered Shares of the Stock Exchange who wish to participate
in this meeting shall have until April 26 to present a statement
containing their respective share ownership, provided by the
custodian body.

Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.

NET also offers Broadband InterNet services through its NET
VIRTUA brand name.

                          *     *     *

As reported in the Troubled Company Reporter on March 15, 2006,
Standard & Poor's Rating Services raised on its foreign and
local currency corporate credit ratings on Brazilian cable pay-
TV and broadband operator Net Servicos de Comunicacao S.A to
'BB-' from 'B+'.  The Brazil National Scale rating assigned to
NET and its BRL650 million debentures due 2011 was also revised
to 'brA' from 'brBBB+'.  S&P said the outlook on the ratings was
revised to stable from positive.

"The upgrade reflects NET's improved operational and financial
performance over the past several quarters and our expectation
that NET should be able to maintain its current performance over
the next few years," said Standard & Poor's credit analyst Jean-
Pierre Cote Gil.


PETROLEO BRASILEIRO: Petros Fund Invests More in Stock Market
-------------------------------------------------------------
The Petros pension fund for the employees of Brazil's federal
energy company Petroleo Brasileiro SA (NYSE: PBR) will invest
more in the stock market to diversify its holdings in light of
falling interest rates, local financial daily Valor Economico
reported.

The fund's investments in government bonds has been reduced to
10% in the past three years and sunk more money into the stock
market, which now accounts for 28% of the fund's portfolio,
according to the same report.

"We already have 1.2 billion reals (US$553 million) invested in
the stock market and the trend is for that to increase," the
daily quoted Petros Chief Executive Officer Wagner Pinheiro as
saying.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.

                        *    *    *

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

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


TELE NORTE: Lucent Tech Upgrades Company's Network in Brazil
------------------------------------------------------------
Lucent Technologies has been selected by Tele Norte Leste
Participacoes SA aka Telemar to upgrade the operator's network.

The agreement, valued at approximately US$5.7 million, includes
enhanced versions of hardware and software that will enable
Telemar to offer new advanced services to its wireline
subscribers.  As part of the project, Lucent will upgrade all
Lucent 5ESSr Switches in Telemar's network and integrate them
with Telemar's 7IP next-generation network platform.

"This deployment will help us implement the network changes
required for our current billing system, meeting Anatel's
requirements with a modest investment on our part," said Paulo
Altmayer Goncalves, technology superintendent director of
Telemar Group.

Other localities in the states of Minas Gerais and Maranhao will
have access to the enhanced services from the 7IP NGN platform
via Lucent BZ5000 switches that are connected to Lucent 5ESS
switches.

"Through this partnership with Lucent, Telemar can expand its
convergent services portfolio of 'Oi Cartao Total' and 'Oi
Controle,' as well as its Intelligent Services of Telemar's
phones to more than 2,000 localities in its region and, finally,
standardizes its marketing actions, delivering much more
productivity to Telemar's sales team," said Wagner Ferreira,
president of Lucent Technologies in Brazil.

                  About Lucent Technologies

Headquartered in Murray Hill, New Jersey, Lucent Technologies
-- http://www.lucent.com/ -- designs and delivers the systems,
services and software that drive next-generation communications
networks. Backed by Bell Labs research and development, Lucent
uses its strengths in mobility, optical, software, data and
voice networking technologies, as well as services, to create
new revenue-generating opportunities for its customers, while
enabling them to quickly deploy and better manage their
networks. Lucent's customer base includes communications service
providers, governments and enterprises worldwide.

                      About Telemar

Telemar provides telecommunication services in South America.
It offers local, intra-regional long distance, and data
transmission services in 16 Brazilian states, which covers
approximately 64% of the country.  Mobile services are provided
through its wireless unit Oi, and it has acquired data
transmission services provider Pegasus.

                        *    *    *

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


VARIG S.A.: VarigLog Extends US$350 Million Purchase Offer
----------------------------------------------------------
As widely reported, Varig Logistica S.A., has offered
$350,000,000 to acquire VARIG, S.A.  However, VarigLog will not
assume the company's debts.

VarigLog is the former logistics arm of VARIG.  VarigLog said
that the proposed transaction intends to provide cash flow and
reserves necessary for VARIG's continuity.

According to Reuters, VARIG confirmed the $350-million saying
the investment would "make possible the recovery of Brazil's
biggest airline, keeping thousands of jobs."

The offer, however, does not sit well with the union of VARIG
crewmembers, Bloomberg News reports.  Union president Graziela
Baggio pointed out that the proposal plans to dismiss about
5,000 of the airline's 10,700 employees.  VarigLog also would
not take over the Debtor's BRL7,000,000,000 debt if it ends up
buying the airline.

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


VARIG S.A.: Workers Demand Government Intervention
--------------------------------------------------
The Brazilian government reiterated its commitment to help keep
bankrupt VARIG, S.A., afloat amidst mounting demands from the
airlines' employees for a government bailout.

Romina Nicaretta at Bloomberg News reports that VARIG's workers
staged protests in Brasilia, Rio de Janeiro, Porto Alegre and
Sao Paolo to pressure the government into easing some of VARIG's
financial burdens.

According to Ms. Nicaretta, the workers are asking the
government to waive approximately $123 million in fuel and
airport charges over the next three months to allow the carrier
to negotiate its reorganization plan.

As reported in the Troubled Company Reporter on April 12, 2006,
VARIG CEO Marcelo Bottini has asked the Brazilian government
for:

   -- a three-month delay to pay Infraero, Brazil's airport
      authority; and

   -- a two-month delay to pay BR Distribuidora, an affiliate of
      Brazilian government-owned oil company Petrobras.

VARIG owes airport authority about $54 million and spends about
$422,000 a day for airport fees.

In addition to fuel and airport tax cuts, the workers also want
the government to compensate VARIG for losses the airline
suffered when it froze airline tickets in the 1980's.  The
Brazilian price freezes, implemented under the Cruzado and
Bresser Plans, were intended to stabilize rising inflation in
Brazil.

In a related development, the Associated Press reports that
Brazil's Civil Aviation Authority rejected a proposal that would
have allowed Ocean Air, a local carrier, to take over some of
VARIG's routes.

                        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.


* Chile, Brazil, Ecuador Oil Firms Start Talk to Develop Field
--------------------------------------------------------------
Chile's ENAP, the Brazilian company Petrobras and Ecuador's
Petroecuador are negotiating on signing a strategic alliance
accord to develop an Ecuadorian petroleum project -- the
Ispingo-Tambaococha-Tiputini oil field, an official source told
Xinhua News Agency.

The oil field has a proven reserves of more than 900 million
barrels -- Ecuador's most promising petroleum project.  A legal
study is being conducted for signing a strategic alliance
agreement to push forward its development, Xinhua relates.

Ecuadorian Energy Minister Ivan Rodriguez confirmed ENAP's and
Petrobras' interest in investing in Ecuador's petroleum sector,
eyeing the ITT as an international attraction as new petrol
reserves are being searched for commercial exploitation due to
the upturn in market prices, Xinhua relates.

Minister Rodriguez told Xinhua that no public bidding process
was considered.  Instead, he said, there would be a direct
negotiation with interested operators.

The Ispingo-Tambaococha-Tiputini oil field, which has been under
discussion since 2001, represents 23% of Ecuador's total petrol
reserves, Xinhua states.

                        *    *    *

Fitch Ratings assigns these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB-      Nov. 18, 2004
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005

                        *    *    *

Fitch Ratings assigns these ratings on Ecuador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005


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


R.R.G.: Schedules Final Shareholders Meeting on May 5
-----------------------------------------------------
Shareholders of R.R.G. will convene for a final general meeting
on May 5, 2006, at the registered office of the company.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidator to retain the records of the company for a period of
five years, starting from the dissolution of the company.

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

The company's liquidator can be reached at:

             Krysten Lumsden
             Ron Gutler
             P.O. Box 2681, George Town
             Grand Cayman, Cayman Islands
             Telephone: (345) 945 3901
             Facsimile: (345) 945 3902


SEED PROPERTIES: Final General Meeting Set for May 3
----------------------------------------------------
Seed Properties Holdings Limited will hold a final general
meeting on May 3, 2006, at 9:30 a.m. at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

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

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

The company's liquidators can be reached at:

           Kareen Watler
           Sylvia Lewis
           P.O. Box 1109, George Town
           Grand Cayman, Cayman Islands
           Telephone: 949-7755
           Facsimile: 949-7634


TARA EUROPEAN: Final General Meeting Set for May 20
---------------------------------------------------
The final general meeting of The Tara European Stars Fund's sole
shareholder will be on May 20, 2006, at the registered office of
the company.

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholder will also authorize the
liquidator to retain the records of the company for a period of
five years, starting from the dissolution of the company.

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

The liquidator can be reached at:

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


WHITESTONE BRIDGE 2003-1: Sets May 4 Claims Filing Deadline
-----------------------------------------------------------
Creditors of Whitestone Bridge 2003-1 Limited are required to
submit particulars of their debts or claims on or before May 4,
2006, to Carlos Farjallah and Emile Small, the company's
appointed liquidators.  Failure to do so will exclude them from
receiving the benefit of any distribution that the company will
make.

Whitestone Bridge 2003-1 started liquidating assets on March 20,
2006.

The liquidators can be reached at:

       Carlos Farjallah
       Emile Small
       Maples Finance Limited
       P.O. Box 1093, George Town
       Grand Cayman, Cayman Islands


WHITESTONE BRIDGE 2003-2: Sets May 4 Claims Filing Deadline
-----------------------------------------------------------
Creditors of Whitestone Bridge 2003-2 Limited, which is being
voluntarily wound up, are required on or before May 4, 2006, to
present proofs of claim to Carlos Farjallah and Emile Small, the
company's liquidators.

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

Whitestone Bridge 2003-2 started liquidating on March 20, 2006.

The liquidators can be reached at:

         Carlos Farjallah
         Emile Small
         Maples Finance Limited
         P.O. Box 1093, George Town
         Grand Cayman, Cayman Islands


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


* COLOMBIA: President Uribe Defends US Free Trade Agreement
-----------------------------------------------------------
Colombian President Alvaro Uribe said that the free trade
agreement it signed with the United States does not prejudice
Bolivia and Venezuela, El Universal reports.

According to the Associated Press, President Uribe said that the
FTA would cause no problems such as a reduction of Venezuelan
exports to Colombia.

"Only 15 percent of Venezuelan sales to Colombia can face
competence from US sales," the AP quoted President Uribe as
saying.

The Colombian president also said that his country is ready to
boost any politicial deal between Bolivia and the United States.

Colombia's trade with Venezuela exceeded US$3 billion in 2005,
making Venezuela its second largest trading partner.

"Colombia has a middle-level manufacturing industry with big
competitors around the world and it needs agreements to access
markets. This is also the case for Colombia agriculture
economy," President Uribe explained to the Associated Press.

                        *    *    *

On May 30, 2005, Fitch Ratings 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: Starts Talks for Free Commerce Pact with Honduras
-------------------------------------------------------------
El Heraldo reports that negotiations to secure the Treaty of
Free Commerce between Honduras and Colombia have begun.

Colombian ambassador Miguel Ruiz was quoted by El Heraldo as
saying that plans for the treaty are well developed, and
progress has already been made to eliminate the long-standing
barriers between the two countries.

A visit by the Colombian minister for commerce and tourism,
Jorge Botero, in Tegucigalpa, Honduras is expected in the coming
weeks to sign the treaty with Elizabeth Ancona -- Honduras'
minister of industry and commerce.

                        *    *    *

On May 30, 2005, Fitch Ratings 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.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998



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


* Chile, Brazil, Ecuador Oil Firms Start Talk to Develop Field
--------------------------------------------------------------
Chile's ENAP, the Brazilian company Petrobras and the Ecuador's
Petroecuador are negotiating on signing a strategic alliance
accord to develop an Ecuadorian petroleum project -- the
Ispingo-Tambaococha-Tiputini oil field, an official source told
Xinhua news agency.

The oil field has a proven reserves of more than 900 million
barrels -- Ecuador's most promising petroleum project.  A legal
study is being conducted for signing a strategic alliance
agreement to push forward its development, Xinhua relates.

Ecuadorian Energy Minister Ivan Rodriguez confirmed ENAP's and
Petrobras' interest in investing in Ecuador's petroleum sector,
eyeing the ITT as an international attraction as new petrol
reserves are being searched for commercial exploitation due to
the upturn in market prices, Xinhua relates.

Minister Rodriguez told Xinhua that no public bidding process
was considered.  Instead, he said, there would be a direct
negotiation with interested operators.

The Ispingo-Tambaococha-Tiputini oil field, which has been under
discussion since 2001, represents 23% of Ecuador's total petrol
reserves, Xinhua states.

                        *    *    *

Fitch Ratings assigns these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB-      Nov. 18, 2004
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005

                        *    *    *

Fitch Ratings assigns these ratings on Ecuador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005


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


MILLICOM INTERNATIONAL: Subscriber Base Up by 11% in March 30
-------------------------------------------------------------
Millicom International Cellular S.A. announced last week that
its subscriber base reached 9,891,692 in March 30, 2006.  The
company added nearly 963,000 subscribers through organic growth
across its operations in the first quarter of 2006.

These subscriber additions represent growth of 11% in total
subscribers from the previous quarter and 52% from the first
quarter of 2005, on a pro forma basis.

Marc Beuls -- the firm's President and Chief Executive Officer -
- said, "We have started the year very well in terms of
subscriber growth, demonstrating the strength of our positions
in rapidly growing emerging markets.  The key growth drivers
have been the launch of the Tigo brand, improved distribution
networks and substantially increased capex to add extra capacity
and coverage, which gives us a competitive advantage.  We have
continued to see the highest subscriber growth in Latin America,
which is testament to the success of our Tigo brand."

"This strong subscriber growth has been reflected in the top
line.  Underlying year-on-year pro forma revenue growth
continues to accelerate and first quarter growth is stronger
than the 36 per cent revenue growth seen in fourth quarter
2005," Mr. Beuls added.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa.  It currently has cellular operations
and licenses in 16 countries.  The Group's cellular operations
have a combined population under license of approximately 391
million people.

Millicom has assets amounting to US$1,522,900,000 and
liabilities reaching US$1,608,200,000.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 24, 2006,
Standard & Poor's Ratings Services placed its 'B+' long-term
corporate credit rating and 'B-' senior unsecured debt ratings
on telecommunications operator Millicom International Cellular
S.A. on CreditWatch with developing implications.


===============
H O N D U R A S
===============


* HONDURAS: Starts Talks for Free Commerce Pact with Colombia
-------------------------------------------------------------
El Heraldo reports that negotiations to secure the Treaty of
Free Commerce between Honduras and Colombia have begun.

Colombian ambassador Miguel Ruiz was quoted by El Heraldo as
saying that plans for the treaty are well developed, and
progress has already been made to eliminate the long-standing
barriers between the two countries.

A visit by the Colombian minister for commerce and tourism,
Jorge Botero, in Tegucigalpa, Honduras is expected in the coming
weeks to sign the treaty with Elizabeth Ancona -- Honduras'
minister of industry and commerce.

                        *    *    *

On May 30, 2005, Fitch Ratings 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.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998


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


MIRANT CORPORATION: Incurs US$1.3 Billion Net Loss in 2005
----------------------------------------------------------
Mirant Corporation (NYSE: MIR) reported a $1.3 billion net loss
for the year ended December 31, 2005.  This loss reflects the
recognition in 2005 of $1.4 billion of interest expense on
liabilities subject to compromise for the period from the
company's bankruptcy filing on July 14, 2003 through December
31, 2005.  The loss also includes other significant impacts of
the company's Plan of Reorganization, which was confirmed by the
U.S. Bankruptcy Court on December 9, 2005.  Mirant emerged from
bankruptcy on January 3, 2006.

Adjusted EBITDA for the period was $779 million.  Adjusted
EBITDA excludes non-recurring charges, such as bankruptcy
restructuring charges and unrealized gains and losses associated
with the company's hedging activities.

Cash from operations for 2005 was $33 million, reflecting strong
results from business operations.  These results were offset by
significant uses of cash for collateral postings of $305 million
and payments of $171 million for professional fees and other
expenses related to bankruptcy.

As of March 3, 2006, the company's total liquidity (defined as
unrestricted cash and cash equivalents plus credit facility
availability) was approximately $2.1 billion, an increase of
$597 million since December 31, 2005.  The company's total debt
balance is currently $4.2 billion, net of term loan cash
collateral account of $200 million.

"Mirant emerged from bankruptcy with one of the strongest
balance sheets and liquidity positions in its sector," said
Edward R. Muller, Mirant's chairman and chief executive officer.
"The company's strong financial position, strategic assets in
certain markets and its execution capabilities, coupled with the
recently completed strategic hedge transaction, position us
well."

A full-text copy of Mirant Corp. and its affiliates' Annual
Report on Form 10-K filed with the Securities and Exchange
Commission is available for free at:

               http://ResearchArchives.com/t/s?699

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
$20,574,000,000 in assets and $11,401,000,000 in debts.  (Mirant
Bankruptcy News, Issue No. 94; Bankruptcy Creditors' Service,
Inc., 215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.


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


ALMACENADORA GOMEZ: S&P Puts mxBB Long-term Rating
--------------------------------------------------
Standard & Poor's Ratings Services placed a mxBB long-term
rating and an mxB short-term rating on Almacenadora Gomez S.A.
de C.V.  The Outlook is Stable.


BALLY TOTAL: Inks Stock Purchase Accords with Wattles & Ramius
--------------------------------------------------------------
Bally Total Fitness Holding Corporation entered on April 11,
2006, Stock Purchase Agreements with Wattles and Ramius.

Bally Total agreed to issue and sell to Wattles 400,000 shares
of the company's common stock for an aggregate purchase price of
$2,800,000.

The company also agreed to issue and sell to Ramius an aggregate
of 400,000 shares of the company's common stock for an aggregate
purchase price of $2,800,000.

Wattles and Ramius certified to the company that they are
accredited investors, pursuant to Rule 501 of Regulation D
promulgated under the Securities Act.

The company will issue the shares of its common stock to Wattles
and Ramius in reliance upon Section 4(2) of the Securities Act.
Proceeds from the sale of common stock will be used to finance:

      -- the cash portion of the consent solicitation
         consideration to be paid to holders of the Notes and
         related expenses;

      -- fees and expenses relating to similar waivers obtained
         from the lenders under the company's senior secured
         credit facility; and

      -- additional working capital.

Wattles and Ramius have agreed, subject to certain exceptions,
to vote the shares purchased pursuant to the Stock Purchase
Agreements in favor of a transaction that may result from the
company's strategic process and approved by the company's board
of directors.

On April 10, 2006, the company instructed its transfer agent to
issue 1,951,417 shares of common stock to holders of the notes
that gave their consent to the Waivers in the consent
solicitations and elected to receive their consent payment in
shares of common stock.

The company also announced on April 10 the successful completion
of the solicitation of consents from holders of the senior notes
and holders of the senior subordinated notes.

On April 7, 2006, Bally Total entered into:

     -- a supplemental indenture with the US Bank National
        Association, as trustee, which amended the Indenture
        dated as of July 2, 2003, as supplemented on July 22,
        2003, among Bally, as issuer, certain subsidiaries of
        Bally, as guarantors, and the trustee, that governs
        Bally's 10-1/2% senior notes due 2011; and

     -- a supplemental indenture, which amended the Indenture
        dated as of Dec. 16, 1998, between Bally and the
        trustee, that governs Bally's 9-7/8% senior subordinated
        notes due 2007.

The Supplemental Indentures were entered into in connection with
the successful completion of Bally's solicitation of consents
from holders of the senior notes and holders of the senior
subordinated notes to:

     -- waive defaults arising from the company's previously
        announced failure to timely file its financial
        statements for the fiscal year ended Dec. 31, 2005, with
        the securities and exchange commission, and to deliver
        such financial statements to the trustee; and

     -- extend the time for filing its financial statements for
        the quarters ended March 31 and June 30, 2006.

Bally Total Fitness -- http://www.ballyfitness.com/-- is the
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 440 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada(R) brands.  With an estimated 150
million annual visits to its clubs, Bally offers a unique
platform for distribution of a wide range of products and
services targeted to active, fitness-conscious adult consumers.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Chicago-
based Bally Total Fitness Holding Corp., including the 'CCC'
corporate credit rating, on CreditWatch with developing
implications, where they were placed on Dec. 2, 2005.

The CreditWatch update follows Bally's announcement that it will
not meet the March 16, 2006, deadline for filing its annual
report on SEC Form 10-K for the year ending Dec. 31, 2005.
Bally currently anticipates filing its 2005 10-K in April 2006.

Bally's ratings were originally placed on CreditWatch on Aug. 8,
2005, following the commencement of a 10-day period after which
an event of default would have occurred under the Company's $275
million secured credit agreement's cross-default provision and
the debt would have become immediately due and payable.
Subsequently, Bally entered into a consent with lenders to
extend the 10-day period until Aug. 31, 2005.  Prior to Aug. 31,
the company received consents from its bondholders extending its
waiver of default to Nov. 30, 2005.


DIRECTV GROUP: Innova's Tender Offer Expired on April 11
--------------------------------------------------------
Innova, a satellite-television joint venture between Mexican
broadcaster Grupo Televisa SA and DirecTV Group Inc., has
extended its its tender offer for US$195 million in debt until
April 11.

In addition, operator of Sky Mexico satellite television said in
a release it may increase the amount of notes it plans to buy
back.

Innova has received tenders for about US$280 million of the 9-
3/8% notes due 2013, or about 93% of the US$300 million
outstanding.

The company, owned 53% by Televisa and 47% by DirecTV, will
finance the buyback with a new bank facility, along with cash or
other financing sources.

The DIRECTV Group, Inc., formerly Hughes Electronics
Corporation, headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and
services.  The DIRECTV Group, Inc. with sales in 2004 of
approximately $11.4 billion is 34% owned by Fox Entertainment
Group, Inc., which is owned by News Corporation.  DIRECTV is
currently available in Latin American countries: Argentina,
Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador,
Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico,
Trinidad & Tobago, Uruguay, Venezuela and several Caribbean
island nations.

                        *    *    *

Moody's Investor Service assigned on June 8, 2005, a Ba2 rating
on DirecTV Group Inc.'s US$1.0 billion senior unsecured notes.


ELAMEX S.A.: Shareholders' Extraordinary Meeting Set for Apr. 27
----------------------------------------------------------------
Elamex, S.A. de C.V., a diversified manufacturing services
company with food and real estate holdings in Mexico and the
United States, announced Wednesday that it will hold an
extraordinary meeting of shareholders on April 27, 2006, at
10:00 a.m. at:

           Hotel Raddison Casa Grande
           Avenida Tecnologico # 3620
           Colonia Partido Iglesias
           Cd. Juarez, Chih, Mexico, 32617,

An annual meeting of shareholders will follow at 12:00 p.m. at
the same address.

All shareholders are invited to attend the meetings in person.
To attend the meetings, a shareholder must show an admission
ticket, which shall be issued at his or her request 48 hours
before the meeting.

To obtain a ticket and a reservation, contact:

           Dolores Sierra
           El Paso, Texas
           USA
           Phone: (915) 298-3064
           Fax: (915) 298-3065

The company's financial statements for the year ended Dec. 31,
2005, will also be available for shareholders upon request.

Elamex, S.A. de C.V. and its subsidiaries are a group of
Companies in Mexico and the United States that provide
manufacturing, packaging and distribution services.  The Company
provides customized manufacturing services in the candy and nut
industry.  The Company's manufacturing machinery and equipment
are located in facilities in Ciudad Juarez, in Mexico, and in El
Paso, Texas in the United States.   The Company is a subsidiary
of Accel, S.A. de C.V., which owns approximately 57.7% of the
Company's issued and outstanding common shares at December 31,
2004.

                    Substantial Doubt

Jorge Jaramillo El­as at Galaz, Yamazaki, Ruiz Urquiza, S.C.,
expressed substantial doubt about the company's ability to
continue as a going concern after auditing the company's Form
10-K filed on Jan. 13, 2006.  The auditor points to the
company's accumulated deficits and net losses for 2003 and 2004.

As of December 31, 2004 and 2003, the Joint Venture has an
accumulated deficit in excess of 100% of its total paid-in
capital.  Under Mexican law, this condition allows the Joint
Venture's partners, creditors or other interested parties to
force the Joint Venture into dissolution.

Initially, the Company had decided upon the sale of its stock.
However, as of September 2005, the Joint Venture's operations
were suspended, which resulted in the termination of a majority
of the Joint Venture's employees and the sale of the majority of
the Joint Venture's machinery and equipment.


HIPOTECARIA MEXICO: S&P Puts D Long-Term and Short-Term Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services placed D long-term and short-
term ratings on Hipotecaria Mexico S.A. de C.V.S.F.O.L.


J.L. FRENCH: Can Advance US$382,500 to China Holdings Affiliate
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
J.L. French Automotive Castings, Inc., and its debtor-affiliates
permission to advance funds amounting to US$382,500 to J.L.
French Automotive Castings China Holdings LLC, a non-debtor
affiliate.

As reported in the Troubled Company Reporter on Mar. 21, 2006,
the Debtors told the Court that the funds will be used to
capitalize China Holdings' foreign-equity joint venture with
Chonqing Yujiang Die Casting Co., Ltd., and Chongqing Liangjiang
Machine Manufacture Co., Ltd.  Yujiang is a die-casting company
and Lianjiang is a machining company, both currently do the bulk
of their business supplying China's motorcycle original
equipment manufacturers.

                   Proposed Joint Venture

The Debtors told the Court that through China Holdings, and with
Yujiang and Liangjiang, they plan to establish a new facility in
the city of Chongqing to produce die-castings and to machine and
assemble automotive parts.  The three entities will form a
Chinese foreign-equity joint venture named Chonqing JL French-
Yumei Die Casting Co., Ltd.

Under the joint venture agreement, China Holdings will own 51%,
Yujiang, 29%, and Liangjiang, 20%.  The Debtors said that the
total investment in the joint venture is estimated to be
$12.5 million with:

    * $5 million to be contributed by the parties as equity and

    * the remainder to be borrowed and secured by the assets of
      the new entity.

The Debtors related that China Holdings total capital commitment
for the joint venture is $2.55 million or 51% of $5 million.

The agreement also calls for each party to contribute the first
15% of the equity within 90 days after the new entity receives
its business license from the State Administration of Industry
and Commerce.  The agreement establishes that the remainder of
the equity contributions will be paid in several installments
but no more that three years after the initial capital
contribution.  The Debtors tell the Court that its plans to
execute the contract next month although they have no estimate
as to how long it will take to obtain the approvals and
licenses.  The Debtors say that it is likely that China Holdings
will be required to make an initial distribution of $382,500.

The Debtors relate that since China Holdings has only minimal
assets, they must transfer the requisite funds in order for
China Holdings to make the requisite contribution.

The Debtors argued that the proposed joint venture represents a
significant opportunity for the Debtors to expand their access
to overseas markets and maximize the value of their estates.
The Debtors said that their investment risk is limited to the
$2,555,000 equity commitment and as a 51% owner, they will
appoint four of six board members and will maintain the
operational control of the new entity.

                     About J.L. French

Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is one of the
world's leading global suppliers of die cast aluminum components
and assemblies.  There are currently nine manufacturing
locations around the world including plants in the United
States, United Kingdom, Spain, and Mexico.  The company has
fourteen engineering/customer service offices to globally
support its customers near their regional engineering and
manufacturing locations.  The Company and its debtor-affiliates
filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del.
Case No. 06-10119 to 06-06-10127).  James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C.,
at Kirkland & Ellis LLP, represent the Debtors in their
restructuring efforts.  When the Debtor filed for chapter 11
protection, it estimated assets and debts of more than $100
million.


UNION DE CREDITO: S&P Assigns mxB Short-Term Rating
---------------------------------------------------
Standard & Poor's Ratings Services placed mxB short-term rating
on Union de Credito Agroindustrial Pesquer y de Servicios del
Sur.  S&P also placed an mxB+ long-term rating on the company.
The Outlook is Stable.


VITRO S.A.: S&P Puts mxBB+ Long-term Rating
-------------------------------------------
Standard & Poor's Ratings Services placed a mxBB+ long-term
rating on Vitro S.A. de C.V.  The Outlook is Negative.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.


* MEXICO: S&P Puts mxBB+ Long-term Rating
-----------------------------------------
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating on the state of Mexico.  The Outlook is Stable.



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


* PERU: Reports US$1.37 Billion Export Sales for February
---------------------------------------------------------
Peru has registered US$1.37 billion mineral sales in February,
up 22% from the same period last year, Dow Jones Newswires
reports, citing a government agency report.

The same report said that exports have now increased for 48
straight months.

In February, exports in the traditional sector -- mainly natural
resources -- rose 29% on the year to US$1.04 billion.

These exports were led by increased sales of minerals,
especially copper, gold and zinc, and by fishmeal exports and
sales of crude oil.

Nontraditional exports -- mainly industrial products -- grew 5%
in February from a year earlier to US$337 million.

Exports hit a record high of US$17 billion in 2005, up 34% from
2004.

Exports, especially of mineral products, have been a motor of
growth for the Peruvian economy, which expanded 6.67% last year
and is forecast to grow by some 5.0% this year, Dow Jones says.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB      Nov. 18, 2004
   Long Term IDR       BB      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB+     Dec. 14, 2005


* PERU: S&P Examines Election Impact on Credit Outlook
------------------------------------------------------
Standard & Poor's Ratings Services issued on Wednesday a
commentary that examines the implications of electoral results
in the Republic of Peru (BB/Positive/B foreign currency
sovereign credit ratings) on the government's current credit
outlook.

The report, entitled "Credit FAQ: The Impact Of The Presidential
Election On The Republic of Peru's Credit Outlook," highlights
the factors Standard & Poor's will focus on in the near term to
determine any potential change to Peru's current positive
outlook.

Sebastian Briozzo -- Standard & Poor's credit analyst -- said
any future rating or outlook changes would depend upon both the
economic policy agenda put forward by whoever is elected
president and the political support the new president can muster
in order to assure governability and consistent economic policy
implementation.

"However, significant deviation from the current broad agenda
that puts Peru's institutional framework and macroeconomic
stability at risk will likely reverse the current upward rating
momentum," said Mr. Briozzo.

Mr. Briozzo explained that Standard & Poor's long-term rating on
Peru is still two notches below investment grade, despite
impressive improvement in the country's economic, fiscal and
external indicators in recent years.

"The country's weak political institutional framework is one of
the key factors constraining the rating at the current level,"
Mr. Briozzo added. "In fact, political problems in Peru predate
this election.  This is demonstrated by the contrast between
strong economic growth and a solid macroeconomic framework on
the one side, and the high dissatisfaction with the political
class by a significant portion of the population on the other,
as demonstrated for quite some time now by polls reflecting low
levels of popular support for government officials and political
parties."

According to Mr. Briozzo, political polarization is a fact,
independent of who wins on the second round.  "Should this
outcome further complicate governability, the revision of the
outlook to stable is likely as might be downward pressure on the
rating," Mr. Briozzo noted.

"However, an economic performance that continue to surprise on
the upside and a relatively clear financing outlook will
continue to provide the government with room to maneuver and
additional time for the new administration to introduce its
economic policy agenda and negotiate for needed support", Mr.
Briozzo concluded.



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


G+G RETAIL: Wants Removal Period Stretched Until July 24
--------------------------------------------------------
G+G Retail, Inc., asks the U.S. Bankruptcy Court for the
Southern District of New York to extend until July 24, 2006, the
period within which it can remove prepetition civil actions.

The Debtor tells the Court that it has focused its time and
attention on transitioning into chapter 11 and is actively
preparing its Schedules of Assets and Liabilities and Statements
of Financial Affairs.  The Debtor hasn't had the opportunity to
review prepetition actions that might need to be removed from
other jurisdictions to the Southern District of New York for
continued litigation or resolution.

The extension will afford the Debtors more time to make fully-
informed decisions concerning removal of each prepetition action
and will assure that it does not forfeit valuable rights under
Section 1452 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.  G+G hired Financo, Inc., as its
investment banker.  Scott L. Hazan, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  The Committee also hired Jack
Rapp at Abacus Advisors Group LLC as its business consultant.
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.  In February 2006, Max Rave, LLC, an
entity to be owned by BCBG Max Azria Group, Inc., and Guggenheim
Corporate Funding LLC, bought substantially all of G+G Retail's
assets for $35 million.


GLOBAL HOME: Taps Pachulski Stang as Bankruptcy Counsel
-------------------------------------------------------
Global Home Products, LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for permission to
employ and retain Pachulski Stang Ziehl Young Jones & Weintraub
LLP as their bankruptcy counsel.

Pachulski Stang will:

   a. provide legal advice with respect to the Debtors' powers
      and duties as debtors in possession in the continued
      operation of their business and management of their
      properties;

   b. prepare on behalf of the Debtors necessary applications,
      motions, answers, orders, reports, and other legal papers;

   c. appear in Court on behalf of the Debtors and in order to
      protect the interests of the Debtors before the Court;

   d. prepare and pursue confirmation of plan and approval of a
      disclosure statement; and

   e. perform all other legal services for the Debtors that may
      be necessary and proper in these proceedings.

Laura Davis Jones, Esq., a partner at Pachulski Stang, tells the
Court that the Firm's professionals bill:

      Professional                Designation   Hourly Rate
      ------------                -----------   -----------
      Laura Davis Jones, Esq.     Attorney         $675
      David M. Bertenthal, Esq.   Attorney         $475
      Bruce Grohsgal, Esq.        Attorney         $475
      Joshua M. Fried, Esq.       Attorney         $395
      Sandra G.M. Selzer, Esq.    Attorney         $295
      Karina Yee                                   $155

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

Headquartered in Westerville, Ohio, Global Home Products, LLC --
http://www.anchorhocking.com/and http://www.burnesgroup.com/--  
sells houseware and home products and manufactures high quality
glass products for consumers and the food services industry.
The company also designs and markets photo frames, photo albums
and related home decor products.  The company and 16 of its
affiliates, including Burnes Puerto Rico, Inc., and Mirro Puerto
Rico, Inc., filed for Chapter 11 protection on Apr. 10, 2006
(Bankr. D. Del. Case No. 06-10340).  Laura Davis Jones, Esq.,
Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra G.M.
Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub LLP, represent the Debtors.  When the company filed
for protection from their creditors, they estimated assets
between $50 million and $100 million and debts of more than $100
million.


MUSICLAND HOLDING: Can Honor Prepetition Bonus Obligations
----------------------------------------------------------
As reported in the Troubled Company Reporter on Jan. 27, 2006,
Musicland Holding Corp. and its debtor-affiliates paid corporate
employees under the Management Incentive Program for performance
meeting various profitability or operational goals.

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

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

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

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

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

                        *    *    *

Judge Stuart M. Bernstein authorizes, but does not direct, the
Debtors to honor and pay the Shrink Plan, the Severance Program,
and the Field MIP in accordance with their current policies.
The Court rules that the Debtors will keep the Official
Committee of Unsecured Creditors informed of their intention to
make those payments.

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


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


NORTEL NETWORKS: Opening New Offices in Port of Spain
-----------------------------------------------------
Nortel Networks disclosed the opening of a new Caribbean field
office in Port of Spain, Trinidad and Tobago.  The new office
enhances Nortel's support for its valued customer- base in the
Eastern Caribbean, including Trinidad and Tobago and other
Caribbean nations.

The new Trinidad facility is staffed by up to 40 professionals
supporting Nortel's regional wireline, wireless and enterprise
customers through project management, warehousing, parts
management, technical assistance and network deployment
expertise.

Nortel will also work with the local universities to provide
internships and training to help develop the skills base in the
Caribbean supporting the anticipated growth of information and
communication technologies of the region.

Nortel's new field-office in Trinidad will make it possible for
us to move our depth of support closer to our customer base in
the Caribbean region," said Norberto Milan, vice president,
Nortel Caribbean. "This confirms Nortel's commitment to our very
loyal customer base and will be critical to supporting next-
generation technologies like IPTV, WiMAX and IMS."

To date, Nortel has deployed over 21 wireless networks ranging
from TDMA through CDMA/GSM, including GPRS/EDGE, and 10 wireline
networks in the Eastern Caribbean islands, Guyana, French
Guyana, and Suriname.

Nortel has been doing business in the region for more than 30
years.  Since that time, Nortel has helped Caribbean-based
service-providers evolve their networks to the latest-generation
wireless, wireline and enterprise technologies.

                       About Nortel

Nortel http://www.nortel.com/-- is a recognized leader in
delivering communications capabilities that enhance the human
experience, ignite and power global commerce, and secure and
protect the world's most critical information.  The company's
next-generation technologies, for both service providers and
enterprises, span access and core networks, support multimedia
and business-critical applications, and help eliminate today's
barriers to efficiency, speed and performance by simplifying
networks and connecting people with information.

                        *    *    *

As reported on Feb. 6, 2006, Standard & Poor's Ratings Services
assigned its 'B-' debt rating to Nortel Networks Inc.'s proposed
US$1.3 billion credit facility due February 2007.  NNI is a
wholly owned subsidiary of Brampton, Ontario-based Nortel
Networks Ltd.  Combined proceeds from the facility will be used
to refinance maturing debt, primarily the US$1.3 billion NNL
senior notes due Feb. 15, 2006.  At the same time, Standard &
Poor's affirmed its 'B-' long-term corporate credit and its 'B-
2' short-term ratings on NNL.  The outlook is stable.  NNL, NNI,
and NNL's parent, Nortel Networks Corp., are collectively
referred to as Nortel.

"On completion of the refinancing, liquidity will remain at an
adequate level, with total cash balances estimated to remain
relatively unchanged from the year-end 2005 balance of US$3.0
billion," said Standard & Poor's credit analyst Joe Morin.

The proposed US$1.3 billion one-year term credit facility will
include a US$850 million senior secured Tranche A, as well as a
US$450 million senior unsecured Tranche B.  Tranche A of the
facility, along with the existing NNL US$200 million notes due
2023 and the EDC support facility, will be secured by the U.S.
and Canadian assets of NNL and its U.S. and Canadian
subsidiaries.

In addition, the facility will be guaranteed by NNL and NNC.
Total secured debt and other obligations, which for analytical
purposes includes just the US$300 million committed portion of
the EDC support facility, will be US$1.35 billion, and will rank
ahead of all other unsecured indebtedness of NNL and publicly
listed parent NNC.  The secured obligations rank ahead of
unsecured debt with respect to the U.S. and Canadian assets.

Standard & Poor's does not currently assign recovery ratings to
secured bridge or short-term facilities of one year or less,
which includes NNL's proposed interim facility.  A recovery
rating, therefore, has not been assigned and the ratings on the
secured debt are, accordingly, equivalent to the corporate
credit rating.  The unsecured debt is also rated the same as the
corporate credit rating, as total priority debt and obligations
(US$1.35 billion in secured obligations) are less than 15% of
total adjusted assets.  In addition, the unsecured debt is only
disadvantaged with respect to the U.S. and Canadian assets,
which represent about 60% of NNL's total assets.

The ratings on NNL are based on the consolidation with its
parent, NNC.  The ratings reflect:

   * a weak but stable spending environment for telecom
     equipment and services globally;

   * a highly competitive industry;

   * the company's high debt level;

   * weak credit protection measures; and

   * profitability that is lagging its global peers.

These factors are only partially mitigated by the company's
liquidity position, which should provide adequate financial
flexibility in the medium term.  Other key credit concerns are
the remaining material weaknesses in the company's internal
controls and a substantial amount of litigation against the
company, the financial effect of which is not quantifiable at
this point, including the potential effect of mediation with
respect to certain litigation.

The stable outlook reflects expectations for modest improvements
in Nortel's operating performance, including modest growth in
revenues, EBITDA, and cash flow.  The company's current cash
balances provide it with adequate flexibility at the current
rating level, including the ability to repay the proposed credit
facilities on maturity in February 2007.

Should Nortel demonstrate more substantial improvements in
performance, and credit measures strengthen as a result, the
outlook could be revised to positive or the rating could be
raised.  Still, the substantial amount of litigation outstanding
and material weaknesses in internal controls will be
constraining factors on the rating until resolved.  Conversely,
should unexpected challenges in market conditions cause Nortel's
performance measures to deteriorate further in the near term,
the outlook could be revised to negative.


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


* URUGUAY: IFC Releases Environmental Impact Study on Pulp Mills
----------------------------------------------------------------
The International Finance Corporation aka IFC released last week
the report of a panel of independent experts commissioned to
review comments provided by stakeholders on the draft Cumulative
Impact Study aka CIS of two pulp mill plants in the Rio Uruguay.

IFC welcomed the findings and the recommendations of the
experts' report and will shortly announce an action plan to
address the panel's recommendations.

The expert panel, which included Canadians Wayne Dwernychuck and
Neil McCubbin, identified a need for additional information and
analysis to accurately determine and substantiate the
environmental impacts of the CMB and Orion projects.  The
experts also recommended a number of technical improvements that
could enhance the environmental performance of both mills.  IFC
is in discussions with the companies on how to address these
issues.

Overall, the experts recognized that although mill design,
operating procedures and environmental monitoring can be
improved, concerns that the mills will cause widespread
environmental damage are unsupported.

Further, the experts recommended that more information is needed
to answer questions raised about health impacts.  Further
information and analysis should be provided with respect to
tourism.  The emergency response and environmental management
and monitoring plans need to be more fully developed.

IFC, as a member of the World Bank Group that promotes
sustainable development of the private sector in emerging
markets, will only finance projects that meet its strict and
internationally recognized environmental and social standards.
For this reason, IFC endorses the need for additional
information and analysis recommended by the experts and regards
it as essential to ensuring compliance with its own
environmental policies, to making a decision on whether to
finance the pulp mills, and to fully and accurately informing
stakeholders on the environmental and social impacts of the
mills.

IFC is evaluating whether to provide financing to proposed Orion
and CMB plants.  In addition, the Multilateral Investment
Guarantee Agency aka MIGA, also an arm of the World Bank Group,
is evaluating whether to provide political risk insurance to
investors in the Orion plant.

Neither IFC nor MIGA will make a decision on whether to proceed
with funding until the revision of the Cumulative Impact Study
is completed.

                  The Consultation Process

The draft Cumulative Impact Study on the social and
environmental impact of the two proposed pulp mills was made
available for public review on Dec. 19, 2005, allowing a minimum
of 60 days for comments prior to any decisions by the World Bank
Group on the proposed financing and guarantee for the pulp
mills.

In addition to written submissions received, starting in mid-
January, a series of meetings were held in Uruguay and Argentina
to enable stakeholders to provide their comments and concerns on
the draft CIS directly to IFC and MIGA staff.   Following the
60-day consultation period that ended Feb. 17, IFC sent all
comments received on the CIS to the independent expert panel to
fully analyze the comments and provide its findings to the World
Bank Group.

                       *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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



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


CITGO: Base Selling Price for Houston Refinery Set at US$4 Bil.
---------------------------------------------------------------
As previously reported, Citgo Petroleum Corp. and Lyondell
Chemical Co. have signed a letter of intent to sell their
refinery located in Houston, Texas.

An official, who declined to be identified, from Citgo's parent
company  -- Petroleos de Venezuela SA -- told Business News
Americas that the base price for the 268,000 barrel-a-day
refinery is set between US$4 billion and US$4.5 billion.

Investment bank Morgan Stanley has been retained to give
financial advice during the sale, the official told BNamericas.

Lyondell and Citgo established a joint venture in 1993 where the
Houston refinery is its main asset.  Lyondell holds a 58.75%
stake while Citgo has the remaining equity.

After the sale, both the shareholders won't retain a
participation in the refinery.

According to El Universa, Valero Energy Corporation could be
interested in buying the Lyondell-Citgo Refining partnership in
Houston.

Mary Brown, Valero vice president was quoted by El Universal as
saying that the company is interested in the refinery even if it
has to acquire the crude "from other sources."

According to BNamericas, the Houston refinery receives crude
from PDVSA at a discounted price and ending that practice is the
main reason why Venezuela pushed to end the partnership with
Lyondell and sell the venture's only asset.

The refinery is strategically located on the US Gulf Coast with
access to interstate pipelines and Houston port.

Headquartered in Houston, Texas, CITGO -- http://www.citgo.com/
-- is owned by PDV America, an indirect, wholly owned subsidiary
of Petroleos de Venezuela S.A., the state-owned oil company of
Venezuela.

PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.

                        *    *    *

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

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


PDVSA: PetroChina Gets Two Thirds Orimulsion Fuel from Orinoco
--------------------------------------------------------------
PetroChina will get less than expected of orimulsion fuel in a
joint venture project with Petroleos de Venezuela SA.

Orimulsion is a liquid fuel made up of 70% bitumen and 30%
freshwater extracted from the ground in the area of the Orinoco
River in Venezuela.

Venezuela is the only country in the world that produces such
fuel.

Under a US$330 million joint pact which will last for 33 years,
China owns 70% of the orimulsion plant in Orinoco while PDVSA
holds 30%.  The plant's production of 6.5 million tons a year of
orimulsion fuel was originally agreed to go to PetroChina.
However, after a visit of PVSA officials in Beijing, that volume
was changed to two thirds of the total production.

According to El Universal, PDVSA will probably use the remaining
fuel to provide its current foreign customers.

PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  The Rating Outlook is
Stable.  Both rating actions follow Fitch's November 2005
upgrade of Venezuela's sovereign rating.


* VENEZUELA: Oil Ministry Tries to Reassure Foreign Investors
-------------------------------------------------------------
Venezuela's oil vice-minister Bernard Mommer visited London,
England, to invite business from private oil investors.

During his visit, Mr. Mommer was quoted by El Universal as he
tried to reassure markets by claiming that that private
investment is vital for "stability of the oil sector and the
country."

"We need private investors, as they are very useful," Mr.
Mommer, who is also a director of PDVSA, told people attending a
meeting in London Bol¡var Hall to hear details on the reshuffle
of the Venezuelan oil sector.

Venezuela has recently migrated 32 operating oil contracts into
joint ventures where state-owned company Petroleos de Venezuela
SA will hold majority stake in each project.

Mr. Mommer explained that through this majority control, the
government expects a balance between public and private sectors.
He said that Venezuela is following the fundamental that "a
resource-rich community should benefit from such resources."

Branding the former oil agreements as "illegal," vice-minister
Mommer said the new pacts have established a new relation with
investors.

"Producing oil is our business, while you bring in expertise in
management and new technologies. You are welcome, but leave
control to us."

Mr. Mommer regretted the fact that the media "has not even
remotely echoed what we have done." This poor coverage, the El
Universal quoted the vice-minister as saying, lead him to visit
London, "the European capital of oil and a good place to discuss
what is going on in Venezuela."

                        *    *    *

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


* S&P Says Latin American Banks to Have Good Year on Loan Growth
----------------------------------------------------------------
Standard & Poor's rating services said that Latin American banks
will continue to enjoy a good economic environment through the
remainder of 2006 on record growth in consumer lending.

"A key factor during this growth trend has been the strength of
the loan book," said S&P credit analyst Daniel Araujo.  The
agency published a report entitled "Industry Report Card: Latin
American Banks Enjoy Continued Strength In Fourth Quarter."

Chilean banks showed strong profitability last year, with the
system's consolidated net income rising by 12.8% on-year despite
the current low interest rate environment, S&P said.

"This increase was mainly attributable to consistent loan
portfolio growth in combination with lower provisioning efforts
and increasing operating efficiencies," it added.

For the Mexican banking sector, 2005 was a record year, S&P
said. In prior quarters, Mexican banks were funding loan
portfolio growth mainly through core deposits, but in the fourth
quarter, some banks in Mexico started to explore the issuance of
short- and long-term instruments in the capital markets to
complement core funding, the ratings agency said.

"We expect this trend to accelerate in subsequent quarters," it
added.

Brazilian banks showed strong profitability in 2005, with an
average return on assets of 2.3% on the expansion of credit
activities by 22% for the year, S&P said.

These activities focused on the more profitable segments of
small companies and individuals, constant efforts to leverage
revenues from fees and commissions, and the maintenance of
operating costs aligned to the inflation index, the ratings
agency said. These developments are expected to remain in place
for the next several quarters as well.

Argentine banks, for their part, also enjoyed a favorable 2005,
with the completion of the sovereign debt restructuring process
and the gradual normalization of the local operating
environment.

"For the first time since the financial crisis of 2002, the
Argentine financial system as a whole posted positive results,
even after the gradual recognition of the losses arising from
the crisis," S&P said.


                      ***********


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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Maryland USA.  Lyndsey Resnick, Marjorie C. Sabijon, Sheryl Joy
P. Olano, and Stella Mae Hechanova, Editors.

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

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            * * * End of Transmission * * *