TCRLA_Public/030619.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

          Thursday, June 19, 2003, Vol. 4, Issue 120

                           Headlines


A N T I G U A   &   B A R B U D A

ALEX BENJAMIN: Fate Uncertain as Retailer Enters Receivership


A R G E N T I N A

ALBETE: Seeks Court OK For Reorganization Process
DINAR: Previnder May Take Over Soon, Says Shareholder
NYSE: Deemed Bankrupt By Court
TELEFONICA DE ARGENTINA: Announces Exchange Offers


B E R M U D A

TYCO: Shares Rise Following Earnings Restatement
TYCO INTERNATIONAL: S&P Affirms Ratings, Outlook
TYCO INTERNATIONAL: Bernstein Liebhard Begins Class Action Suit


B R A Z I L

AES CORPORATION: Announces Common Stock Offering Pricing
ARACRUZ CELULOSE: To Sell Bonds To Finance Riocell Buy, Says Paper
METRORED: Plans Expansion Following Restructuring Completion
VARIG: Merger Pose Dismissal Threat To 5,343 Workers


C H I L E

ENDESA: Grants Chilean Subsidiary Exclusive License For Software


C O L O M B I A

EMCALI: Cali Municipality Should Pay COP204B In Subsidies


D O M I N I C A N   R E P U B L I C

AES ANDRES: US$400 Million Plant Starts Operations
BANCO INTERCONTINENTAL: Central Bank Chief Admits Grave Mistake
BANCREDITO: Individual Ratings Down To `D' On Market Uncertainty


E C U A D O R

PETROECUADOR: Workers End Strike, Operation Starts Recuperating
* Ecuador: S&P Affirms Sovereign Credit Ratings


H O N D U R A S

AES: Seeks Partners or Buyers For El Faro Project


J A M A I C A

AIR JAMAICA: Antigua Ops Encouraging; Still Battling Losses


M E X I C O

GRUPO TMM: Creditors Hire U.S. Law Firm to Collect Debts
PEMEX: Outlines Fleet Upgrade Forecast
TV AZTECA: Shares Skyrocket On Assurance Concerning Iusacell
TV AZTECA: End of Unefon-Nortel Spat Boosts 46% Stake Sale
TV AZTECA: Board Reaffirms Commitment for Uses of Free Cash Flow


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: $300M Senior Debt Rated 'CCC'
CENTENNIAL COMMUNICATIONS: Appoints New President For Caribbean


T R I N I D A D   &   T O B A G O

BWIA: Targets Labor Cost to Meet Cost Reduction Requirement


U R U G U A Y

* Uruguay: Fitch Removes Default Rating on External Bonds


V E N E Z U E L A

SIDOR: Receives US$61 Million in Hard Currency Allocation


     - - - - - - - - - -


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

ALEX BENJAMIN: Fate Uncertain as Retailer Enters Receivership
-------------------------------------------------------------
PricewaterhouseCoopers has been appointed receiver of E. Alex
Benjamin Ltd., one of Antigua's oldest family stores that entered
receivership Wednesday last week, The Antigua Sun says.

Receiver Charles Walwyn told the Sun he will reveal in three weeks
whether the company, also known as Benjies, can be saved or, if
not, be declared bankrupt.  The Benjamin family, which owns the
business, did not reveal the reason for the application for
receivership, but the paper said it is due to inability to pay
debts.  The report did not say how much money the company owed.

The company's collapse is not entirely surprising, the paper said,
adding that former Trade Minister Hilroy Humphreys had hinted it
would happen during a mass public rally two Sundays ago, although
he did not name Benjies.  During the rally, Mr. Humphreys blasted
the government for not giving enough assistance to local
businesses.  

The Sun says Benjies employees were summoned to an emergency
meeting Thursday to bring them up to date on the future of the
company.  One staff member, who understands the company's
decision, told the Sun: "We believe strongly that they will know
in three weeks whether or not they will close the business."

Established in 1972, the company employs 100 employees and is one
of the leading members of the Antigua Employer's Federation. The
Sun says financial difficulties began last year, forcing the
company to layoff a number of workers.  The Benjies group of
companies, according to the paper, consists of the Benjies
Department Store on Redcliffe Street, a Business Centre located in
the Bencorp Business on High Street, Benjies Printery at Michael's
Mount, Benjies Photo Centre-Heritage Quay and a real estate
development located at Boon Haven.

Minister of Trade and Planning Gaston Browne told the Sun he was
saddened by the development: "I am indeed concerned about the
situation as minister responsible for commerce. Benjies has been
one of the major retail businesses in the country. I can't say
definitely the nature of their problem whether or not it has to do
with the economy, whether or not they may have stretched
themselves too thin or they made bad decisions."

"[After] 31 years of operation it is cause for concern indeed. I
am really sorry that is the case because you are looking at an
indigenous family that took a very small family business and made
it into one of the largest national retail businesses... I would
have believed that the Benjies group would have had the expertise
and financial resources to expand regionally and internationally
by expanding the brand into different markets," he added.



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

ALBETE: Seeks Court OK For Reorganization Process
-------------------------------------------------
Albete S.A. is asking court permission to start reorganization as
it files for "concurso preventivo" at Court No. 23, which is under
Dr. Julia Villanueva. Dr. Stella Timpanelli of Secretary No, 46
assists the Court on the matter.

Ms. Liliana Maria Montoro is the assigned receiver for the
company, which stopped paying its debts on December 5, last year.
Creditors are advised to have their claims verified by September
3, 2003.

CONTACT:  ALBETE S.A.
          Viamonte 1454
          Buenos Aires

          Ms. Liliana Maria Montoro
          Sarmiento 517
          Buenos Aires
          Phone: 005411 43949297


DINAR: Previnder May Take Over Soon, Says Shareholder
-----------------------------------------------------
Investment group Previnder is about to take control of Argentine
airline Dinar, reported El Cronista Comercial on Tuesday, citing
Dinar shareholder Walter Perochena.

Mr. Perochena, who owns 25 percent of Dinar, reportedly filed a
case against Eduardo Maurizzio, leader of an investment group,
whose name was not revealed.

Earlier reports dismissed rumors that the government plans to take
over the ailing company.


NYSE: Deemed Bankrupt By Court
------------------------------
Court No. 23 of Buenos Aires declared NYSE S.A. bankrupt following
a request from its creditor, Eduardo Posdeley. The company
reportedly owes Mr. Posdeley some $74,412.

Dr. Julia Villanueva is in charge of the court, assisted by Dr.
Stella Timpanelli from Secretary No. 45.

The Court assigned Zulma Glave as receiver, to whom creditors must
have their claims verified before August 11.

CONTACT:  NYSE S.A.
          3rd Floor
          Corrientes Ave. 1373
          Buenos Aires

          Zulma Glave
          Deheza Street No. 4883
          Buenos Aires


TELEFONICA DE ARGENTINA: Announces Exchange Offers
--------------------------------------------------
Telefonica de Argentina S.A. ("TASA") announced on Tuesday that it
has commenced an offer to exchange two series of existing TASA
notes for two new series of TASA notes plus a cash payment, and an
offer to exchange two series of existing notes issued by TASA's
holding company, Compania Internacional de Telecomunicaciones S.A.
("Cointel"), for two new series of TASA notes plus a cash payment.
TASA's 9.875% notes due 2006 that were issued last year are not
part of the exchange offers.

In addition, TASA has agreed with its main indirect shareholder,
Telefonica Internacional S.A. ("TISA"), that immediately after the
consummation of the exchange offer for Cointel notes, TASA will
transfer all of the acquired Cointel notes to TISA in exchange for
a like reduction of TASA's short term indebtedness owed to TISA.
As a result of the proposed overall transaction, TASA will not be
increasing its net debt position. TASA is also soliciting proxies
from the holders of the TASA and Cointel existing notes subject to
the exchange offers to amend or eliminate substantially all of the
covenants and events of default contained in those notes. The
terms of the exchange offers and proxy solicitations are as
follows:

-- For each U.S.$1,000 principal amount of TASA's existing
U.S.$300 million 11.875% Notes due 2004, TASA is offering to
exchange:

-- For holders tendering before the proxy delivery deadline,
U.S.$850 principal amount of newly issued 11.875% Notes due 2007
and U.S.$150 in cash (U.S.$75 of which constitutes a proxy
payment).

-- For holders tendering after the proxy delivery deadline,
U.S.$925 principal amount of newly issued 11.875% Notes due 2007
and U.S.$75 in cash.

-- For each U.S.$1,000 principal amount of TASA's existing
U.S.$368.5 million 9.125% Notes due 2008, TASA is offering to
exchange:

-- For holders tendering before the proxy delivery deadline,
U.S.$900 principal amount of newly issued 9.125% Notes due 2010
and U.S.$100 in cash (U.S.$50 of which constitutes a proxy
payment).

-- For holders tendering after the proxy delivery deadline,
U.S.$950 principal amount of newly issued 9.125% Notes due 2010
and U.S.$50 in cash.

-- For each U.S.$1,000 principal amount of Cointel's existing
U.S.$225 million 8.85% Series A Notes due 2004, TASA is offering
to exchange:

-- For holders tendering before the proxy delivery deadline,
U.S.$850 principal amount of newly issued TASA U.S. dollar-
denominated 8.85% Notes due 2011 and U.S.$150 in cash (U.S.$75 of
which constitutes a proxy payment).

-- For holders tendering after the proxy delivery deadline,
U.S.$925 principal amount of newly issued TASA U.S. dollar-
denominated 8.85% Notes due 2011 and U.S.$75 in cash.

-- For each Ps.1,000 principal amount of Cointel's existing Ps.175
million 10.375% Series B Notes due 2004, TASA is offering to
exchange either:

-- For holders tendering before the proxy delivery deadline, the
U.S. dollar equivalent of Ps.850 principal amount of newly issued
TASA U.S. dollar-denominated 8.85% Notes due 2011, calculated
using the forward exchange rate as described in the relevant
prospectus related to the exchange offer, and Ps.150 in cash
(Ps.75 of which constitutes a proxy payment).

-- For holders tendering after the proxy delivery deadline, the
U.S. dollar equivalent of Ps.925 principal amount of newly issued
TASA U.S. dollar-denominated 8.85% Notes due 2011, calculated
using the forward exchange rate as described in the relevant
prospectus related to the exchange offer, and Ps.75 in cash.

or,

-- For holders tendering before the proxy delivery deadline,
Ps.850 principal amount of newly issued TASA peso-denominated
Conversion Notes due 2011 and Ps.150 in cash (Ps.75 of which
constitutes a proxy payment).

-- For holders tendering after the proxy deliver deadline, Ps.925
principal amount of newly issued TASA peso-denominated Conversion
Notes due 2011 and Ps.75 in cash.

The new Conversion Notes will be initially denominated in
Argentine pesos and accrue interest at 10.375% until August 1,
2004. Thereafter, the new Conversion Notes will be denominated in
U.S. dollars and accrue interest at 8.85%. The principal amount of
the new Conversion Notes will be converted from pesos into U.S.
dollars at the average reference spot exchange rate quoted by the
Argentine Central Bank for the last five available trading days
ending on or prior to July 30, 2004.

The proxy delivery deadline is at 5:00 p.m. New York City time, on
June 30, 2003, unless extended. Each of the exchange offers expire
at 11:59 p.m. New York City time, on July 15, 2003, unless
extended. Holders wishing to accept the exchange offers should
tender their notes sufficiently in advance of these dates to allow
enough time for processing.

In light of recent macroeconomic developments in Argentina, and
the negative impact that such macroeconomic events had on TASA's
financial condition, TASA and Cointel are unable to access the
capital markets, and third-party financing sources, both
domestically and internationally, are no longer available in
amounts sufficient to enable them to meet their debt obligations.
In addition, as a result of the devaluation of the peso and the
pesification and freezing of TASA's tariffs, TASA's internally
generated funds alone are not sufficient for TASA to meet its
substantial short-term debt obligations, and may not be sufficient
to meet TASA and Cointel's debt obligations maturing or subject to
repurchase in 2004.

Cointel is a holding company whose only significant asset is its
64.83% interest in TASA. Cointel's only significant source of cash
flows is from liquidity and subsequent dividend payments made by
TASA. Cointel bondholders that participate in the exchange offers
will become creditors of TASA, the operating company.

Holders who tender their notes will be receiving any accrued and
unpaid interest up to, but not including, the settlement date for
the exchange offers for those existing notes. The exchange offers
are subject to customary conditions, which TASA may waive,
including the condition that 90% of the outstanding principal
amount of each series of existing notes be validly tendered prior
to the expiration date of the exchange offer. None of the exchange
offers is conditioned upon the success of any other exchange
offer. Should less than all of the exchange offers be consummated,
TASA may accept for exchange those notes that are tendered in
those exchange offers where all of the conditions to such
exchanges have been met or waived by TASA.

Morgan Stanley & Co. Incorporated (including its affiliates) will
act as dealer manager for the exchange offers. BBVA Banco Frances
S.A. (Reconquista 199, (C1003ABE) Buenos Aires, Argentina, Tel.:
+54-11-4346-4600) will act as solicitation agent in Argentina,
D.F. King & Co., Inc. will act as the information agent and the
Bank of New York will act as the exchange agent for the exchange
offers.

Prospectuses are being mailed to holders of record of those notes
offered for exchange. Copies of the prospectuses may be obtained
by calling D.F. King & Co., Inc., at +1-800-549-6697 or +1-212-
269-5550, or by mail at 48 Wall Street, 22nd Floor, New York, NY
10005, Attention: Thomas A. Long.

A registration statement relating to the new securities has been
filed with the Securities and Exchange Commission and has been
declared effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the company has
obtained the necessary authorization from the Comision Nacional de
Valores of Argentina. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state or Argentina in
which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of
such state or Argentina.

You may read a copy of our registration statement and any other
document we file at the SEC's public reference room at 450 Fifth
Street, N.W. Washington, D.C. 20549. These documents are also
available at the public reference rooms at the SEC's regional
office in New York City. Please call the SEC at +1-800-SEC-0330
for further information on the public reference rooms. Our filings
are also available to the public over the Internet at the SEC's
website at http://www.sec.gov.

Any questions regarding the exchange offer may be addressed to
Morgan Stanley as dealer manager for this transaction at the
following numbers:

Morgan Stanley
Simon Morgan
+1-212-761-2219

Heather Hammond
+1-212-761-1893

Telefonica de Argentina S.A.

Telefonica de Argentina is a licensed supplier of wireline public
telecommunications services and basic telephone services in
Argentina. Basic telephone services include (1) the supply of
fixed telecommunications connections which form part of the public
telephone network or are connected to such network and (2) the
provision through these links of local, domestic long distance and
international telephone services.

Compania Internacional de Telecomunicaciones S.A. is a holding
company that conducts business through its controlling interest in
Telefonica de Argentina. Its only significant asset is its
ownership of 64.8% of Telefonica Argentina's capital stock and its
only significant source of cash inflows is from dividends paid on
this stock. Cointel's current shareholders consist of three
affiliates of Telefonica S.A., which together beneficially own
approximately 100% of Cointel's capital stock.

CONTACT:  Morgan Stanley
          Simon Morgan
          Phone: +1-212-761-2219
             or
          Morgan Stanley
          Heather Hammond
          Phone: +1-212-761-1893



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

TYCO: Shares Rise Following Earnings Restatement
------------------------------------------------
Shares of Bermuda-based Tyco International Ltd. rose 18 cents to
close at US$19.75 on Tuesday afternoon after the Company released
its earnings restatement for the last 5-1/2 years.

Reuters News quoted Jean Marie Eveillard from First Eagle Global
Fund as saying, "There was a major mess left by (former Tyco CEO)
Kozlowski, and new management is trying to put the company on the
right path. The fact that they seem to have come to the end of
discovering new problems is good news."

Former Tyco CEO Dennis Kozlowski is facing charges of grand
larceny and enterprise corruption, along with former CFO Mark
Swartz and former Tyco legal counsel Mark Belnick. The former
officers are accused of awarding themselves with illegal loans.

The restatement mainly affects US$696.1 million of pretax charges,
or US$527.7 million after taxes, taken in the quarters ending
December 2001 and March 2003. The change will boost results for
fiscal 2002 and 2003, and reduce them for fiscal 1998 through
2001, said the report.

CONTACT:  Gary Holmes (Media)
          Phone: 212-424-1314

          Edward Arditte (Investors)
          Phone: 212-424-1390


TYCO INTERNATIONAL: S&P Affirms Ratings, Outlook
------------------------------------------------
Standard & Poor's Ratings Services said on Tuesday that it
affirmed its 'BBB-' corporate credit rating and stable outlook on
Tyco International Ltd. and related entities. At the same time,
Standard & Poor's withdrew its 'BBB-' rating on Tyco International
Group S.A.'s (TIGSA) $750 million dealer remarketable securities
due 2013, following the company's announcement that it has
repurchased all of these securities. At March 31, 2003, Tyco had
approximately $25.4 billion in total debt.

The ratings affirmation follows the Pembroke, Bermuda-based
company's disclosures that:
--Tyco intends to restate financial results for fiscal years 1998-
2003 in connection with the ongoing review by the SEC, and
--The total price paid for repurchasing the dealer notes was $902
million, $152 million over par value, which will be recorded as an
expense in the current fiscal quarter.

The restatements primarily involve pretax charges of about $696
million taken in the prior two quarters relating to ADT dealer
reimbursements, asset reserve adjustments, capitalized costs, gain
on Tyco shares, and other reconciliation and accounting
adjustments.

The restatements are not expected to adversely affect operating
results or cash flows in current or future years, they have no
impact on Tyco's most recent balance sheet, and they do not put
the company out of compliance with any financial arrangements.

"Even so, we note that the restatements may strengthen the
plaintiffs' position with regard to shareholder lawsuits," said
Standard & Poor's credit analyst Joel Levington. "Potential
awards, if any, as well as the timing, method of payment, and
Tyco's access to the capital markets, are uncertain."

The current ratings assume that should the company perform within
its public expectations (as noted in Tyco's March 13, 2003,
analyst conference), it should have satisfactory access to the
capital markets if it has to make any cash settlements. However,
these contingencies will need to be reviewed within the context of
the ratings if they reach resolution.

Tyco International (Tyco), with approximately $36 billion in
revenues, is a diversified global manufacturer, with operations in
five primary sectors: electronics, health care, fire and security,
plastics, and the general industrial markets.

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis system
at www.ratingsdirect.com. All ratings affected by this rating
action can be found on Standard & Poor's Web site at
www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Credit Ratings Actions.

Analyst:  Joel Levington
          New York
          Phone: (1) 212-438-7802  


TYCO INTERNATIONAL: Bernstein Liebhard Begins Class Action Suit
---------------------------------------------------------------
A securities class action lawsuit was commenced in the United
States District Court for the Southern District of Florida, West
Palm Beach Division, on behalf of all persons who purchased or
acquired Tyco International, Ltd. (NYSE: TYC) ("Tyco" or the
"Company") securities (the "Class") between December 30, 2002 to
March 12, 2003, inclusive (the "Class Period"). A copy of the
complaint is available from the Court or from Bernstein Liebhard &
Lifshitz, LLP. Please visit our website at www.bernlieb.com or
contact us at (800) 217-1522 or by e-mail at TYC@bernlieb.com.

The complaint charges Tyco with a violation of Sections 10(b) and
Rule 10b-5 promulgated thereunder and Section 20(a) of The
Exchange Act. Specifically, the Complaint alleges that Defendants
failed to disclose and/or misrepresented the following material
adverse facts, among others: (i) that the Company, for as long a
period as six years had overstated its income by between $265
million and $325 million by improperly understating its bad debts
and its inventory reserves for obsolete product and by improperly
amortizing assets in its ADT business segment, in violation of
Generally Accepted Accounting Principles ("GAAP"); (ii) that the
senior management team in charge of the ADT business segment were
honest and capable business managers when, in fact, they were not
capable of running the crucial ADT business segment in an honest
manner; (iii) that the Company's reported quarterly growth rate
was illusory, based in material respects on the improper
accounting treatment of its ADT business segment, and that
material problems with its accounting and reported financial
results continued to plague the Company after the actions
disclosed by Defendants in the aftermath of the Boies
Investigation; and (iv) that Defendants had no reasonable basis in
fact for their statements to the market that Tyco would earn
between $1.50 and $1.75 per share for fiscal year 2003, in light
of the overstatement of Tyco's income primarily as a result of the
violations of GAAP in its ADT business segment.

Plaintiff seeks to recover damages on behalf of all those who
purchased or otherwise acquired Tyco securities during the Class
Period. If you purchased or otherwise acquired Tyco securities
during the Class Period, and either lost money on the transaction
or still hold the securities, you may wish to join in the action
to serve as lead plaintiff. In order to do so, you must meet
certain requirements set forth in the applicable law and file
appropriate papers no later than August 18, 2003.

A"lead plaintiff" is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the court must determine that the class
member's claim is typical of the claims of other class members,
and that the class member will adequately represent the class.
Under certain circumstances, one or more class members may
together serve as lead plaintiff. Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Bernstein Liebhard &
Lifshitz, LLP, or other counsel of your choice, to serve as your
counsel in this action.

Bernstein Liebhard & Lifshitz, LLP has been retained as one of the
law firms to represent the Class. The attorneys at Bernstein
Liebhard & Lifshitz, LLP have extensive experience in securities
class action cases, and have played lead roles in major cases
resulting in the recovery of hundreds of millions of dollars to
investors. For more information about Bernstein Liebhard &
Lifshitz, LLP, please visit our website at www.bernlieb.com.

If you would like to discuss this action or if you have any
questions concerning this Notice or your rights as a potential
Class member or lead plaintiff, you may contact Ms. Linda Flood,
Director of Shareholder Relations, at Bernstein Liebhard &
Lifshitz, LLP, 10 East 40th Street, New York, New York 10016,
(800) 217-1522 or (212) 779-1414 or by e-mail at TYC@bernlieb.com.

Contact: Bernstein Liebhard & Lifshitz, LLP
          Ms. Linda Flood
          Phone: 212-779-1414
          Email: TYC@bernlieb.com



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

AES CORPORATION: Announces Common Stock Offering Pricing
--------------------------------------------------------
The AES Corporation (NYSE: AES) announced on Tuesday that it has
priced its public offering of 43,000,000 shares of common stock at
$7.00 per share. AES has granted the underwriters an option to
purchase 6,450,000 additional shares of common stock to cover
over-allotments.

The joint book-running managers for the offering were Banc of
America Securities LLC and Lehman Brothers.

The common stock was offered under AES's shelf registration
statement, which has been filed with, and declared effective by,
the Securities and Exchange Commission. Printed copies of the
prospectus supplement relating to the offering may be obtained
from Banc of America Securities LLC, AND Lehman Brothers.

CONTACT: AES Corporation
          Kenneth R. Woodcock
          Phone: 703/522-1315

          Banc of America Securities LLC
          Third Floor
          100 West 33rd Street
          New York, NY 10001
          Phone: 646-733-4166
          Fax: 212-230-8540

          Lehman Brothers
          c/o ADP Financial Services
          Integrated Distribution Services
          1155 Long Island Avenue
          Edgewood, NY 11717
          Phone: 631-254-7106
          Fax: 631-254-7268
          Email: niokioh_wright@adp.com


ARACRUZ CELULOSE: To Sell Bonds To Finance Riocell Buy, Says Paper
------------------------------------------------------------------
Latin America's biggest pulp exporter Aracruz Celulose S.A plans
to sell as much as US$200 million in bonds to help finance its
acquisition of Riocell's pulp mill from Klabin S.A., reports local
paper, Valor Economico.

The Company's chief financial officer Isac Zagury said that the
bond issue will be backed by exports, which is the best option for
raising funds as the Company exports 99 percent of its production.
He added that the exports are sold under long-term contracts.

Analysts believe that the bond sale may come by the end of this
month.

In related news, Aracruz is also seeking a US$400 million loan
from Brazil's development bank BNDES to help pay for its joint-
venture project with Stora Enso Oyj to build a pulp mill, which
requires a total investment of US$1.2 billion.

The Company's main activities are the production, distribution and
export of bleached eucalyptus, high-grade hardwood and eucalyptus
pulp and other related activities. Its products are mainly used in
the manufacture of products such as tissue and high-quality
printing, writing and specialty papers. The Company has
distributors in Italy, Spain, Belgium, Holland, Luxembourg,
Scandinavia and France.

CONTACT:  Aracruz Celulose SA
          Cam. Barra do Riacho, s/n - Km 25
          Barra do Riacho
          29197-000 Aracruz - RJ
          Brazil
          Phone: +55 27 3270-2442
          Fax: +55 27 3270-2590
          Home Page: http://www.aracruz.com.br
          Contact:
          Carlos A. Lira Aguiar, Chairman


METRORED: Plans Expansion Following Restructuring Completion
------------------------------------------------------------
Brazilian telecommunications services company MetroRed is prepared
to expand, seeking to increase by 40 percent this year, according
to South American Business Information. The Company has recently
completed restructuring its management board.

SABI commented that the company's expansion goal is quite
ambitious as it in the data transmission and Internet access
industry that is predicted to grow by only 8 percent this year.

Nonetheless, Metrored prepared investments of ARS35 million for
this year, which are mainly supported by the new shareholder,
Brasil Telecom.


VARIG: Merger Pose Dismissal Threat To 5,343 Workers
----------------------------------------------------
A merger between Brazilian airlines Varig and TAM could result in
the dismissal of about 5,343 workers; local paper Folha de Sao
Paulo reports.

The number represents about 22.5 percent of the total number of
employees from both airlines, said the report, citing an internal
airline document. The figure exceeds the unions' earlier estimate
of about 3,500 lost jobs.

The report added that the dismissals would be heavier at Varig,
which has been driven to the brink of bankruptcy under the weight
of some $800 million in debt. About 3,000 Varig workers are
predicted to be out of job.

The two airlines, both under strong financial pressure agreed to
carry out a study to determine the feasibility of a merger. The
study is supposed to be finished by the second half of this year.

According to merger plans, Varig, Brazil's flagship airline will
have a 5 percent stake in the new company, while TAM will own
close to 35 percent. The Brazilian government and creditors will
control the rest.



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

ENDESA: Grants Chilean Subsidiary Exclusive License For Software
----------------------------------------------------------------
Endesa S.A. has given exclusive distributor rights to its Chile
services and technology unit Synapsis on its SDE-SAC software
application for utilities reports Business News Americas, citing a
statement from Synapsis.

SDE-SAC is an integrated network management system that can be
used by electricity, gas and water utilities, and offers network
security, quality, reduced losses, lower operating costs and
optimal system performance, said the report.

Synapsis spokesperson Gloria Salgado said, "This also means we
will provide local technical support, so you don't have to go to
Spain every time you want to use this application. It can all be
done here through our software plant in Argentina."

She added that the cost of the software varies, depending on the
size and demands of a particular company.

The agreement allows Synapsis to adapt the product for use in
Latin American markets. Ms. Salgado said that the company will put
an "aggressive regional marketing plan" to sell the software.

CONTACT:  Endesa SA
          Principe de Vergara 187 - pta3
          28002 Madrid
          Spain
          Phone: +34 91 213 10 00
          Fax: +34 91 563 81 81
          Home Page: http://www.endesa.es
          Contacts:
          Manuel Pizarro Moreno, Chairman
          Rafael Miranda Robredo, Chief Executive


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

EMCALI: Cali Municipality Should Pay COP204B In Subsidies
---------------------------------------------------------
The Colombian municipality of Cali is being asked to pay COP240
billion to Emcali for water and wastewater subsidies, reports
Business News Americas, adding that the town's mayor, John Maro
Rodriguez, along with the company's residential clients, are also
asked to guarantee timely payment of future bills.

However, water regulator CRA needs to decide whether the Company
should also receive interest for the late payments.

Financial advisor Taylor de Jongh-Iberfin commented that due to
the new developments in the company's renegotiations, Emcali would
be viable through 2020.

Colombia's utilities regulator also said that Emcali's contract
renegotiation with its power purchase agreement with the
Thermoemcali thermoelectric plant is progressing well.

US law firm Cleary, Gottlieb, Steen & Hamilton is negotiating with
Colombia's Holguin, Neira, Pombo, which is representing Emcali,
said the report.

At present, the company is required to pay some COP4 billion
(US$1.41 million) for capacity charges per month. Local paper El
Tiempo said that talks are focusing on giving the company the
capacity rights to the plant, and making it available for dispatch
to the national grid so that Emcali could receive income from the
times when the plant actually generates.

The Company is also in negotiations with state oil company
Ecopetrol and gas transport company Ecogas over contracts seen as
disadvantageous to Emcali, said El Tiempo.

Colombia's utilities regulator Superservicios aims to reach
agreements with all Emcali creditors by June 26, said the report,
citing the agency's chief, Evamaria Uribe.



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

AES ANDRES: US$400 Million Plant Starts Operations
--------------------------------------------------
AES Andres, a unit of U.S.-based power company AES, has started
operations in the Dominican Republic, according to a government
statement. The Company has reportedly signed power purchase
agreements with local utilities.

The US$400 million liquefied natural gas (LNG) terminal and 300MW
combined cycle power generation plant, located about 30 kilometers
from capital city Santo Domingo, gets its LNG from the Atlantic
LNG consortium, which is based in Trinidad.

The plant is dual-fuel, said the report, meaning it also runs on
number 2 oil.

CONTACT:  AES Corporation
          20th Floor
          1001 North 19th Street
          Arlington
          VIRGINIA
          United States
          22209
          Phone: +1 703 522-1315
          Fax: +1 703 528-4510
          Home Page: http://www.aes.com
          Contacts:
          Paul T. Hanrahan, President & Chief Executive   
          Richard Darman, Chairman


BANCO INTERCONTINENTAL: Central Bank Chief Admits Grave Mistake
---------------------------------------------------------------
The Central Bank is now on the defensive after jailed Banco
Intercontinental (BanInter) President Ramon Baez Figueroa accused
Central Bank Governor Jose Lois Malkum of violating a fundamental
procedure in cases where a bank is intervened.

Mr. Baez's defense team said Mr. Malkum violated Article 66 of the
Monetary Law, which prescribes that all shareholders' assets must
be confiscated in a situation such as that of BanInter.  Mr.
Baez's group disclosed recently that two days after the revelation
of the BanInter fraud, bank treasurer and politician Guaroa
Liranzo received US$11 million in cash.

Mr. Malkum, who has admitted to the allegations, said he
authorized payment of as much as US$22 million to Mr. Liranzo.  
He, however, defended his action, saying he based it on his
perception that Mr. Liranzo had no hand in the fraud uncovered at
BanInter.  He added Mr. Liranzo has not yet withdrawn the money.


BANCREDITO: Individual Ratings Down To `D' On Market Uncertainty
----------------------------------------------------------------
Fitch Ratings Agency downgrades the individual rating of
Bancredito from `E' to `D', citing authorities' statements that
the bank required external support.

This rating could potentially be subject to change once Fitch
assesses that the bank's liquidity and capital have been brought
to satisfactory levels and if the outflow of deposits has been
stemmed. However, Bancredito's national and long-term foreign
currency ratings incorporate the expectation that further support,
if required, will continue to be provided until the potential
acquisition is closed, said the ratings agency.

The bank's the long-term foreign currency rating is also lowered
to `B' from `BB', citing concerns that the local market has
reached a point of nervousness where there is the possibility that
issues regarding particular banks could quickly escalate to a loss
of confidence in the banking system and in the authorities'
capacity to provide generalized support, should it become
necessary

The lower long-term ratings reflect concerns regarding the
pressures placed on sovereign creditworthiness by the BanInter
episode, and the potential that the banking system may require
further support, which could add significantly to these pressures
and leads Fitch to place the long-term ratings on Rating Watch
Negative, reflecting concern that any of the banks may prove
vulnerable to quick shifts in market confidence.

Fitch said that the rating actions reflect concerns that the local
market has reached a point of nervousness where there is the
possibility that issues regarding particular banks could quickly
escalate to a loss of confidence in the banking system and in the
authorities' capacity to provide generalized support, should it
become necessary.

CONTACT:  Franklin Santarelli
          Phone: +58 212 286 3356

          Carlos Fiorillo
          Caracas
          Phone: +58 212 286 3232

          Gustavo Lopez
          Phone: +1-212-908-0853

          Peter Shaw
          New York
          Phone: +1-212-908-0553

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540



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

PETROECUADOR: Workers End Strike, Operation Starts Recuperating
---------------------------------------------------------------
Unions representing workers at Ecuador's state oil company
Petroecuador have called off a week-long strike, after the
government abandoned plans to award association contracts for its
five main oil fields to private companies.  

A report from Reuters News said that administrative workers went
bank to work on Tuesday, but oil workers remain on `standby' until
the Energy Ministry stops legal proceedings seeking to remove
seven union leaders from their posts.

In the meantime, gasoline distribution is resumed at Quito, and
the Sote pipeline should be back to normal operations, said a
source close to the company.

So far, the striking workers did not obtain their demand to have
Energy Minister Carlos Arboleda resign from his post, however, the
abandoning of the contract proposals is deemed more important.

The company's board will now decide on a new type of contract
structure to offer private companies. The process is expected to
take another four weeks.

Local paper El Telegrafo reports that President Lucio Gutierrez
said that the strike organizers, whom he described as "terrorists
and criminials" will pay for their crimes in the court.

The Company is also expected to lift the force majeure this week.


* Ecuador: S&P Affirms Sovereign Credit Ratings
-----------------------------------------------
Standard & Poor's Ratings Services said today that it affirmed its
'CCC+' long-term and 'C' short-term sovereign credit ratings on
the Republic of Ecuador. Despite recent political and economic
pressures associated with the strikes by teachers and workers at
Petroecuador, the state-owned oil company, the outlook on the
ratings remains positive.

Both the June 13, 2003, submission to Congress of a civil service
reform bill that aims to streamline and unify the public sector
payroll (a key requirement under Ecuador's US$200 million Stand-By
Arrangement with the International Monetary Fund (IMF)) and the
conclusion of negotiations with the Paris Club (over US$80 million
in debt relief) were positive developments that outweighed the
difficulties in managing the strikes, which included some
concessions.

According to sovereign analyst Lisa Schineller, the government has
yet to specify how the salary increases recently awarded to
striking teachers will be incorporated into and offset by other
spending cuts in the 2003 and 2004 budgets. "Along with passage of
civil service reform, this will continue to test the government's
commitment to fiscal consolidation," said Ms. Schineller. "In
addition, last week's announcement that foreign involvement in the
oil sector would be limited to service contracts bodes poorly for
Ecuador's growth prospects. Neither Petroecuador nor the
government have sufficient funds to boost oil production to levels
consistent with robust economic growth," she added. However, the
government's policy on private sector participation could be
modified yet again following the release of a joint
government/multilateral study on the energy sector in the coming
months.

"Given very limited market interest in holding more Ecuadorean
debt, financing from the IMF and other multilateral lenders is
crucial if Ecuador is to meet its scheduled amortization payments
of US$1.24 billion in 2003," Ms. Schineller said. "Should Ecuador
(both the executive and Congress) comply with key fiscal measures
(most importantly, the civil service reform) included in the IMF
Stand-By Arrangement, Ecuador's ratings could be upgraded.
Conversely, failure to secure official financing would impair
prospects for servicing commercial debt on time, and the ratings
could come under downward pressure," she concluded. Complete
ratings information is available to subscribers of RatingsDirect,
Standard & Poor's Web-based credit analysis system, at
www.ratingsdirect.com. All ratings affected by this rating action
can be found on Standard & Poor's Web site at
www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Credit Ratings Actions.



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

AES: Seeks Partners or Buyers For El Faro Project
-------------------------------------------------
AES regional manager Mike Scholey revealed that the company is
looking for potential partners who would take a "significant
stake", or even take complete control of its US$650 million, 780
MW El Faro thermoelectric project in Honduras, saying that the
project no longer fits into the company's future plans.

Mr. Scholey denies that difficulty in obtaining financing is the
reason behind the company's decision to back out on the project.

"The project's still viable," he asserts.

"What we are trying to do is follow through on our commitments to
the Honduran government and people and make sure that the project
gets done," he said, adding that discussions are ongoing and the
company is studying all its options.

AES has completed feasibility studies on the project and has
obtained a power purchase agreement (PPA) with state power company
ENEE for the first 210MW stage.

Using liquefied petroleum gas, probably from Trinidad and Tobago,
the project in Puerto Cortes, next to the Guatemalan border
includes transmission upgrades.

CONTACT:  AES Corporation
          20th Floor
          1001 North 19th Street
          Arlington
          VIRGINIA
          United States
          22209
          Phone: +1 703 522-1315
          Fax: +1 703 528-4510
          Home Page: http://www.aes.com
          Contacts:
          Paul T. Hanrahan, President & Chief Executive   
          Richard Darman, Chairman



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

AIR JAMAICA: Antigua Ops Encouraging; Still Battling Losses
-----------------------------------------------------------
Ailing regional carrier, Air Jamaica, says its first year of
operation to Antigua has been a big success, citing the increase
in flight frequency to and from the country.

"We started out last June with flights three days per week and by
September, we had increased flights to six days per week," Joyce
Henry, sales and marketing executive for Antigua, told The Antigua
Sun Monday.  

The airline is celebrating its first anniversary in Antigua the
entire week, according to the paper.  The carrier used a flight
from JFK, New York that touched down June 20 at the V.C. Bird
International Airport as its inaugural flight to the country last
year.  

Ms. Henry says, in just a year, the carrier has become involved in
life in Antigua and is a major sponsor of both Carnival and
Sailing Week.

"Air Jamaica places a premium on linking the development and
promotion of indigenous Caribbean culture and life to our tourism
product," she said.  Travelers using Air Jamaica on Friday will
receive a gift and a glass of champagne, she said.

Operations in Antigua may be doing well, but outside the country
it has struggled to sustain operations.  Last year, according to
TCR-Latin America, the carrier lost more than US$90 million and
projected another US$20 million- drop in revenues to June this
year due to the fall-out from the U.S.-Iraqi war. In March, it cut
25 managers to trim operating expenses.

CONTACT:  Air Jamaica
          4 St. Lucia Avenue
          Kingston 5,
          Jamaica
          Phone: 876/922-3460
          Fax: 929-5643
          E-mail: webinfo@airjamaica.com
          Contact:
          Gordon Stewart, Chairman
          Allen Chastanet, Vice President for Marketing and Sales



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

GRUPO TMM: Creditors Hire U.S. Law Firm to Collect Debts
--------------------------------------------------------
Debt-laden Transportacion Maritima Mexicana (Grupo TMM) is
expected to feel increasing financial pressure in the coming days.
U.S. creditors commissioned a New York law firm to begin
negotiations or even legal proceedings against the company in an
effort to recover amounts owed to them.

Internet Securities Inc., in a briefing paper, said the creditors
have hired Akin Gump Strauss Hauer & Feld LLP to begin
negotiations with Grupo TMM representatives, along with several
committees of investors.

"The company's problems have been mounting since May 15, 2003,
when it failed to make a payment of bonds and interest, as well as
the interest on another debt expiring in 2006," the briefing paper
said.

The Mexican company has been trying, but without success, to
renegotiate debt via a bond swap.  TMM has also sold its railroad
business and most of its ports, but proceeds from these disposals
are just not enough.

Internet Securities says TMM shares on the NYSE have dropped by
9.17%, while in Mexico the issue is no longer being quoted.


PEMEX: Outlines Fleet Upgrade Forecast
--------------------------------------
Mexican state oil company Pemex plans to invest at least US$250
million to upgrade its fleet over the next five years to comply
with new security and environment rules. The fleet upgrade is
aimed at improving environmental standards to avoid accidents,
reports Business News Americas. Presently, Pemex has 19 tankers.

Communication and Transport Department ports and merchant fleet
general coordinator Cesar Reyes relates that the country will
adopt the International Maritime Organization's new rules on ship
inspections, port access, equipment and pollution starting July
2004.

Reyes signed a memorandum of understanding on merchant fleet
technical cooperation with Spain's development undersecretary
Adolfo Menendez, agreeing that new security norms are necessary
for all countries that have merchant fleets, said the report.


TV AZTECA: Shares Skyrocket On Assurance Concerning Iusacell
------------------------------------------------------------
Shares Mexican broadcaster TV Azteca bounced 10.75 percent on
Tuesday, closing at MXP4.43, after the company's chief executive
Pedro Padilla eased investor concerns that the company would have
to shoulder part of the debts of Grupo Iusacell S.A. de C.V.,
which TV Azteca parent Salinas Group has purchased. The report
added that Azteca's American Depositary Receipt (ADR) gained 9.74
percent to US$6.76.

Recently, at least two equity analysts downgraded their share
recommendation for TV Azteca following the acquisition. Grupo
Salinas bought Grupo Iusacell for US$10 million plus the
assumption of the latter's US$800 million in debt.

Mr. Padilla attempted to ease investor concerns saying that parent
company Grupo Salinas plans to isolate the TV Azteca's solid cash
generation from other investments. TV Azteca was known to have
shouldered part of the debt of Unefon, another Grupo Salinas unit.

Grupo Salinas investor relations personnel Hector Romero said that
the group would concentrate on turning Iusacell, which is in
technical default on a US$266 million syndicated bank loan,
around.

CONTACT:  TV Azteca SA de CV
          Periferico Sur 4121
          Mexico DF
          Mexico 14141
          Phone: +52 55 3099 1313
          Fax: +52 55 3099 1418
          Home Page: http://www.tvazteca.com.mx
          Contacts:
          Ricardo B. Salinas Pliego, Chairman   
          Pedro Padilla, Chief Executive   
          Jose Ignacio Morales, Chief Operating Officer

          Grupo Iusacell S.A. De C.V.
          Av Prolongacion Paseo dela
          Reforma 1236
          Col Santa Fe Delegacion Cuajimalpa
          Mexico DF
          Mexico 05348
          Phone: +52 5 109 4400
          Home Page: http://www.iusacell.com.mx


TV AZTECA: End of Unefon-Nortel Spat Boosts 46% Stake Sale
----------------------------------------------------------
The settlement of the Unefon-Nortel legal tussle has increased the
chances of TV Azteca successfully selling its 46% stake in Unefon,
Merrill Lynch said Tuesday. Concurrently, the brokerage firm
changed its recommendation on Azteca to "buy" from "sell."

Merrill Lynch said, "[the agreement] lifts a major overhang on TV
Azteca's stock [and] opens the way for TV Azteca to spin off
Unefon."  

The company, Mexico's No.2 broadcaster, has long been known to be
looking for buyers for its 46% stake in Unefon, but prevailing
market conditions have prevented it from getting what it considers
fair value for the stake.

Merrill Lynch said the sharp reversal of its ratings was also
influenced by assurances from TV Azteca officials that the company
won't use any of its cash flow to support the acquisition of
wireless phone concern Grupo Iusacell SA (CEL) by Chairman and CEO
Ricardo Salinas Pliego.  Mr. Pliego's paging business,
Movil@ccess, is planning to buy Iusacell for $10 million and
assume $800 million in debt.

"Although TV Azteca has been clear that it will not fund a bailout
of Iusacell, if this were to happen, we would revisit our rating,"
Merrill Lynch said.


TV AZTECA: Board Reaffirms Commitment for Uses of Free Cash Flow
----------------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish language television programming in
the world, announced n Tuesday that its board of directors
reassured the market about the company's six-year guidelines for
uses of cash approved earlier this year. Last February the board
authorized a plan to allocate a substantial portion of TV Azteca's
expected cash generation within the next six years, to gradually
reduce the company's outstanding debt for an amount of
approximately US$250 million, as well as to make distributions to
shareholders for approximately US$500 million in the six-year
period.

"Our board ratified on Tuesday that the long term plan for uses of
cash is a firm and definite commitment with all of the company's
investors. Our strict adherence to the guidelines will continue
exactly in the same manner as was approved and communicated in the
prior months," said Pedro Padilla, Chief Executive Officer of TV
Azteca, after a meeting to inform the company's board of directors
about Unefon's settlement with Nortel.

"Our long term plan relies on our commitment to isolate TV
Azteca's solid cash generation from the company's investments-
Unefon and Azteca America-and recently the board reaffirmed that
the assurance of non-cash outlays from TV Azteca applies to any,
related or non-related non-core business, including the investment
in Iusacell, recently announced by Grupo Salinas," added Mr.
Padilla.

Mr. Padilla also commented that, "We are delighted with the fact
that Unefon reached an agreement with Nortel Networks, its main
vendor equipment supplier and lender, which provides Unefon with a
strong capital structure that translates into long term viability.
We see that Unefon has become a stand-alone company, with an
increasingly solid competitive position, not depending on TV
Azteca for growth."

Company Profile

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic
market; Unefon, a Mexican mobile telephony operator focused on the
mass market; and Todito.com, an Internet portal for North American
Spanish speakers.



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

CENTENNIAL COMMUNICATIONS: $300M Senior Debt Rated 'CCC'
--------------------------------------------------------
Standard & Poor's Ratings Services said on Tuesday that it
assigned a 'CCC' rating to Centennial Communications Corp.'s $300
million senior unsecured notes due 2013, issued under Rule 144A
with registration rights. The notes are being co-issued with
intermediate holding company Centennial Cellular Operating Co.
LLC. Net proceeds of about $275 million will be used to repay bank
debt.

At the same time, Standard & Poor's affirmed Wall, N.J.-based
Centennial's 'B-' corporate credit rating.

"All other ratings are affirmed, and the outlook has been revised
from negative to stable; while the notes are guaranteed by
Centennial Puerto Rico Operations Corp., they are still rated two
levels below the corporate credit rating because of the
significant concentration of priority obligations relative to the
consolidated assets of the company," said credit analyst Catherine
Cosentino. Most of the priority obligations are borrowings under
the company's $1.035 billion of secured bank facilities. Even with
the bank pay-down from the new note issue, total secured debt will
represent a sizeable obligation, at about $900 million after re-
capitalization.

The outlook change reflects Centennial's receipt of amendments to
its bank-facility financial covenants, in conjunction with the new
note issue, which is contingent on receipt of amended bank
covenants. Relaxation of the covenants, including elimination of
the senior leverage test, provides the company more liquidity over
the next fiscal year ending May 31, 2004. In addition, the partial
pay-down of the revolving credit provides the company added
borrowing capacity, subject to adherence to the covenants. Pro
forma for the repayment, the combination of cash and bank
availability from the revolving credit will total about $200
million, versus the previous $107 million.

The rating reflects the relatively high business risk of the
wireless industry, particularly for regional carriers. The
regional wireless carriers have faced increased competition from
the larger, national players such as Verizon Wireless and AT&T
Wireless. Carriers such as Centennial are disadvantaged relative
to the national players in terms of their ability to offer
competitively priced national plans. Moreover, the national
players are expected to continue to be aggressive in taking share
from the regional carriers, given the fact that overall wireless
subscriber growth will continue to slow because of increased
overall wireless penetration.

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis system,
at www.ratingsdirect.com. All ratings affected by this rating
action can be found on Standard & Poor's Web site at
www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Credit Ratings Actions.

Analyst:  Catherine Cosentino
          New York
          Phone: (1) 212-438-7828  


CENTENNIAL COMMUNICATIONS: Appoints New President For Caribbean
---------------------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) announced on
Tuesday John A. de Armas has been appointed to the position of
president, Caribbean operations. Mr. de Armas joined Centennial in
February 2002 as president, Centennial Dominicana and was promoted
to executive vice president, Caribbean operations in October 2002.

Previously, Mr. de Armas was president of Home Shopping Espanol, a
division of Home Shopping Network, where he developed and launched
markets in Puerto Rico, Mexico, and the top 20 Hispanic markets in
the U.S., reaching an audience of over 40 million Hispanics. Prior
to that, he was vice president of International Strategy and
Marketing with Phelps Dodge International Corporation. Prior to
Phelps Dodge, Mr. de Armas was in charge of KPMG's South Florida
consulting practice.

"I am very happy John has accepted the position of president,
Caribbean operations. Since his arrival, John's contributions to
Centennial have been outstanding. His knowledge of our operations,
extensive background and proven leadership skills will continue to
be an asset to Centennial," said Michael J. Small, chief executive
officer.

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.1 million Net Pops and
approximately 929,700 wireless subscribers. Centennial's U.S.
operations have approximately 6.0 million Net Pops in small cities
and rural areas. Centennial's Caribbean integrated communications
operation owns and operates wireless licenses for approximately
11.1 million Net Pops in Puerto Rico, the Dominican Republic and
the U.S. Virgin Islands, and provides voice, data, video and
Internet services on broadband networks in the region. Welsh,
Carson Anderson & Stowe and an affiliate of the Blackstone Group
are controlling shareholders of Centennial. For more information
regarding Centennial, please visit our websites at
www.centennialcom.com and www.centennialpr.com.



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

BWIA: Targets Labor Cost to Meet Cost Reduction Requirement
-----------------------------------------------------------
BWIA officials are confident its adjusted labor cost reduction
plan, submitted Monday night, satisfies the requirement set by the
government for state financing to continue. General Manager Nelson
Tom Yew told The Trinidad Guardian the proposal was submitted well
within the deadline, which lapsed midnight Monday.  

Mr. Yew did not give any details, other than to say, "I am very
hopeful that the plan will give the government the comfort it
needs to support BWIA."

According to the paper, the government did not set a definite
amount of labor cost savings, requiring only that operating costs
be reduced by 20%.  

The paper says the company received a considerable amount of help
from workers union, among them the Aviation Communication and
Allied Workers Union and the Communication, Transport and General
Workers Trade Union, which represent the lower-paid employees at
the airline.  The carrier's executive management and the airline
superintendents have also agreed to give concessions to allow the
labor cost reduction plan to materialize.

BWIA Chairman Lawrence Duprey, in an interview Monday, said the
fate of the airline is now in government's hands.



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

* Uruguay: Fitch Removes Default Rating on External Bonds
---------------------------------------------------------
Fitch Ratings upgraded on Tuesday Uruguay's sovereign external
bonds that were eligible for last month's debt exchange but were
not fully extinguished to 'CCC' from 'DDD'. The foreign currency
issuer rating is likewise upgraded to 'B-' from 'DDD', where it
was placed for thirty days at the time of Uruguay's distressed
debt exchange last month. This 'B-' rating is in line with the new
bonds issued as part of the exchange. The Rating Outlook is
Stable. For three issues fully tendered in the exchange, the
ratings are removed. A list of specific bonds follows.

The bonds were downgraded to 'DDD' on May 16 on the announcement
of the completion of a debt exchange, which Fitch Ratings
determined to be an event of default under its distressed debt
exchange criteria (see 'Sovereign Distressed Debt Exchanges' at
'www.fitchratings.com'). Fitch's common practice is to keep
exchange eligible bonds in the default category for 30 days and to
take them out of default if payments have or are expected to
resume according to the original terms. Face value equivalent to
89% of eligible externally issued bonds was tendered.

The bonds removed from default on Tuesday are rated below the new
bonds ('B-') issued as part of the exchange. The distinction is
based on Fitch's opinion that the government's willingness to
service bonds not tendered on time and in full may be lower than
for the new bonds. Although near term amortization payments on the
old bonds (estimated at US$27 million for the remainder of 2003
and $31 million in 2004) appear to be covered by net multilateral
disbursements and some issuance in the domestic market, the
government has not yet made a clear statement of its intention to
service holdouts. In the event that financial pressures mount, the
government may elect to incur arrears on exchange eligible bonds
before doing so on new bonds issued in the exchange. With the
exception of the New Money Notes due 2006, a majority of
bondholders consented to exit amendments eliminating cross default
clauses for holdouts of exchange eligible bonds. As a result,
payment delays on these bonds would not trigger defaults on the
US$3.5 billion in new bonds issued in the exchange.

Uruguay's announcement last week that it has extended the exchange
offer for domestically issued bonds does not affect the foreign
currency issuer rating, as the remaining amount, equivalent to 1%
of domestic issued debt and less than 0.5% of total bond debt, is
de minimis. Fitch does not rate the domestically issued U.S.
dollar denominated bonds.

The ratings on the following bonds are upgraded to 'CCC':

--7.875% Bonds due 2003 (USD)

--7.00% Bonds due 2005 (EUR)

--New Money Notes due 2006 (USD)

--8.375% Bonds due 2006 (USD)

--Debt Conversion Notes due 2007 (USD)

--Debt Conversion Notes due 2007 (GBP)

--7.00% Bonds due 2008 (USD)

--7.875% Bonds due 2009 (USD)

--7.25% Bonds due 2009 (USD)

--8.75% Bonds due 2010 (USD)

--7.00% Bonds due 2011 (EUR)

--7.625% Bonds due 2012 (USD)

--Collateralized Fixed Rate Notes Series A due 2021 (USD)

--Collateralized Fixed Rate Notes Series B due 2021 (USD)

--7.875% Bonds due 2027 (USD)

The ratings for the following bonds, which were fully tendered in
the exchange, are removed:

--Convertible Floating Rate Notes due 2007 (USD)

--7.00% (UF) Notes due 2007 (CLP)

--6.375% (UF) Notes due 2011 (CLP)

CONTACT:  Roger M. Scher
          New York
          Phone: +1-212-908-0240

          David Riley
          London
          Phone: +44-207-417-6338

          Media Relations:
          Matt Burkhard
          New York          
          Phone: +1-212-908-0540



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

SIDOR: Receives US$61 Million in Hard Currency Allocation
---------------------------------------------------------
Venezuelan steelmaker Sidor got over US$61 million in hard
currency allocation from the state currency control board CADIVI
said the government agency. The Company received US$58.5 million
and US$2.6 million payments.

"This restructuring permitted a reduction of the amount owed from
approximately $1.4 billion to $800 million. A schedule of payments
was established which has now begun with this first handover,"
said CADIVI.

Sidor, the largest steel producer in the Andean region, was able
to reduce its debt by almost half last year after a major debt
restructuring. The Company's debt problems were triggered by a
sharp drop in international steel demand and prices and a
shrinking domestic economy, said the report.

Local reports say that the allocation shows that CADIVI is moving
to up hard currency for companies having difficulties with paying
their debt. Business leaders have criticized the CADIVI, saying
that the slow allocation of funds is strangling economic activity
in the country.

Sidor is controlled by an Amazonia consortium that consists of
Mexico's Hylsamex HYLSAMXB.MX and Tamsa TAMSA.MX , Argentina's
Siderar SID.BA , Usiminas USIM3.SA of Brazil and Venezuela's
Sivensa SVSa.CR.



               ***********


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 American is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and
Beard Group, Inc., Washington, DC. John D. Resnick, Edem Psamathe
P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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of the same firm for the term of the initial subscription or
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contact Christopher Beard at 240/629-3300.


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