Libya ceasefire falls to pieces as Moammar Khadafy attacks rebels in Benghazi

Libyan leader Moammar Khadafy defied his own cease-fire Saturday and sent his forces into the rebel stronghold of Benghazi - where one of his warplanes was shot down.

The offensive was launched as the U.S. joined other countries in Paris to discuss the possibility of military action against Khadafy.

Reporters saw the plane go down in flames amid artillery fire outside Benghazi.

\"I saw the plane circle around, come out of the clouds, head towards an apparent target, and then it was hit and went straight down in flames and a huge billow of black smoke went up,\" Reuters correspondent Angus MacSwan said.

\"It seems it was attacking the Benghazi military barracks.\"

Libyan officials denied it even happened.

\"Our armed forces continue to retreat and hide, but the rebels keep shelling us and provoking us,\" govement spokesman Ibrahim Musa said.

A day after threatening terrible retribution against the faltering rebels, Khadafy on Friday had his govement declare a cease-fire.

Moammar Khadafy remains defiant. RTP Portugal TV/AP

He was hoping to ward off action from the West, but the U.N. Security Council authorized a no-fly zone over Libya.

President Obama said the U.S. was ready to act with its U.N. and Arab allies but would not put troops on the ground.

A French govement source suggested action was imminent.

\"Everything is ready (to act) but the decision is now a political one. It's clear we have to move quickly,\" the source told Reuters.