TCRLA_Public/040503.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, May 3, 2004, Vol. 5, Issue 86

                            Headlines

A R G E N T I N A

A. MARINOZZI Y COMPANIA: Court Schedules Informative Assembly
AGENCIA DE INVESTIGACIONES: Commences Bankruptcy Process
ARGENTINA DE CONSTRUCCIONES: Court Issues Bankruptcy Ruling
ARZOL Y ASOCIADOS: Declared Bankrupt by Court
BANCO SUQUIA: Sold to Banco Macro Bansud

BRUMALAR: Initiates Bankruptcy Proceedings
CERAMICA CAMPANA: Court OKs Concurso Petition
COMPANIA MEGA: S&P Affirms Ratings, Removes From CreditWatch
DEL SOL CONSTRUCCIONES: Court Orders Bankruptcy
DERIM: Court Favors Creditor's Bankruptcy Petition

EL MAGO: Court Sets Deadline for Submission of Necessary Reports
EMPRESA ARGENTINA: Formalizes Reorganization
FRIO Y CALOR: Court Sets Deadline for Submission of Reports
GRANADEROS: Bankruptcy Process Begins By Court Order
HUAICO: Local Court OKs "Concurso Preventivo" Petition

IMPORTADORA CAMFER: Court Approves Creditor's Bankruptcy Motion
NII HOLDINGS: Launches Latam Cross-Border Call Service
NII HOLDINGS: Reports US$83M EBITDA for 1Q04
PANCOR: Court Authorizes Reorganization
SECOR COMUNICACIONES: Court Issues Bankruptcy Ruling

ST. LEGER: Concludes Reorganization
TELEFONICA DE ARGENTINA: Plans US$150 Million Bond Issue
UNION FEDERATIVA: Starts Reorganization With Court's Approval
VANGUARDIA TEXTIL: Initiates Bankruptcy Process on Court's Order
VIALDEC: Court Declares "Quiebra"

* Argentina to Present Debt Rescheduling Plan by June


B E R M U D A

TYCO INTERNATIONAL: Unit Resolves Clean Water Act Violations


B R A Z I L

BRASKEM: EBITDA Reaches BRL529 Million in 1Q04
CEMIG: Tariff Hike Boosts 1Q04 Profits
EMBRATEL: Calais Not Appealing Sale
EMBRATEL: MCI Files Audited Financial Statements for 2003
EMBRATEL: Sale Approval Expected By Regulator

EMBRATEL: Star One Control Being Sought by Government
ESCELSA S&P Places Ratings On Watch Developing
TELEMAR: Issues Consolidated Results for 1Q04


C H I L E

INVERLINK: US$20M in Stolen Funds Retrieved by Corfo
MADECO: Expects Recovery Next Year
PARMALAT CHILE: Bethia Holding Wins Bid-Report


E C U A D O R

PETROECUADOR: President Resigns to Pave Way for Restructuring


E L   S A L V A D O R

BANCO SALVADORENO: S&P Affirms Ratings Affirmed; Outlook Stable


J A M A I C A

* Jamaica Reopens Global Bond Issue; New Bonds Rated 'B'


M E X I C O

AHMSA: New CEO Bares Strategy
COPAMEX: Fitch Removes Ratings from Rating Watch Negative
GRUPO IUSACELL: Reduces Net Loss in 1Q04
GRUPO TFM: Reports Lower Net Revenues in 1Q04
GRUPO TMM: Revenues Improve in 1Q04

HYLSAMEX: Rides Steel Price Hike to Boost Profits in 1Q04


P E R U

MINERA VOLCAN: Posts Strong 1Q04 Performance
PAN AMERICAN: Debenture Conversion Offer Progressing Well
PAN AMERICAN: Repays Project Financing


U R U G U A Y

AES URUGUAIANA: Gas Supply Cuts Affect AES Unit
ANCAP: Fights Creditors Over Cono Sur Loan
PLUNA: Talks of Takeover Bid On Hold


V E N E Z U E L A

CANTV: Mobile Division Boosts 1Q 04 Performance

     -  -  -  -  -  -  -  -

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

A. MARINOZZI Y COMPANIA: Court Schedules Informative Assembly
-------------------------------------------------------------
Cordoba-based A. Marinozzi y Compania S.R.L. will hold an
informative assembly on May 12, 2004, as ordered by the Cordoba
Civil and Commercial Court No. 2. The Company obtained
authorization from the court in June last year to undergo a
reorganization process. Ms. Adriana Beatriz Cevallos was then
appointed by the court to oversee the reorganization process.

An informative assembly forms the last phase of a reorganization
process.

CONTACT:  Ms. Adriana Beatriz Cevallos
          27 de April 564
          Provincia de Cordoba


AGENCIA DE INVESTIGACIONES: Commences Bankruptcy Process
--------------------------------------------------------
San Isidro Civil and Commercial Court No. 5 declared Agencia de
Investigaciones y Seguridad Marcama S.R.L. "Quiebra," indicates
Infobae. The declaration signals the Company may proceed with
the bankruptcy process, which will close with the liquidation of
its assets.

The court appointed Mr. Mario Isaac Bekierman as the receiver
who will authenticate creditors' proofs of claim until May 31,
2004. Afterwards, the receiver will prepare the individual
reports based on the results of the authentication and then
submit these reports to court on July 13, 2004. After these
results are processed in court, the receiver will then submit
the general report on September 7, 2004.

CONTACT:  Agencia de Investigaciones y Seguridad Marcama S.R.L.
          Nelly y Obes 2746 Talar de Pacheco
          San Isidro

          Mario Isaac Bekierman
          Av Callao 420
          Buenos Aires


ARGENTINA DE CONSTRUCCIONES: Court Issues Bankruptcy Ruling
-----------------------------------------------------------
Argentina de Construcciones S.A. will now enter bankruptcy, as
Cordoba Civil and Commercial Court No. 8 declared it "Quiebra,"
Infobae reports, without revealing the name of the receiver
assigned to oversee the process.

The court ordered the receiver to verify creditors' claims until
May 18, 2004. Following claims verification, the receiver will
submit the individual reports, which were prepared based on the
verification results, to court on July 5, 2004. The general
report, a consolidation of the individual reports, is due for
submission on September 13, 2004.

The Company's bankruptcy case will close with the liquidation of
its assets to pay its creditors.

CONTACT:  Argentina de Construcciones S.A.
          Av F Alcorta 239
          Cordoba


ARZOL Y ASOCIADOS: Declared Bankrupt by Court
---------------------------------------------
Arzol y Asociados S.R.L. is now "Quiebra" - meaning bankrupt,
says Infobae. Buenos Aires Court No. 15 decreed the Company's
bankruptcy and appointed Ms. Marta Susana Serra as receiver for
the Company. Ms. Serra will be reviewing creditors' claims until
June 18, 2004. Analyzing these claims is important because the
outcome of the process will determine the amount each creditor
will get after all the assets of the Company are liquidated.
Clerk No. 29 assists the court on the case, which will conclude
with the liquidation of the Company's assets to repay creditors.

CONTACT: Marta Susana Serra, Receiver
         Donato Alvarez 862
         Buenos Aires


BANCO SUQUIA: Sold to Banco Macro Bansud
----------------------------------------
In a statement to the local stock exchange, Argentine bank Banco
Macro Bansud announced Thursday it has acquired fellow Argentine
bank Banco Suquia for US$180 million, beating out three other
bidders, reports Business News Americas.

Argentine banks Banco Hipotecario (BHIP.BA), Grupo Roggio and
Nuevo Banco de Santa Fe also bid for Banco Suquia, but their
offers proved to be lesser than Macro Bansud's bid. The bank did
not provide details of its offer in its statement, but local
news reports say that in order to seal the offer, Macro Bansud
made a capital contribution of ARS299 million (US$101mn) and
borrowed ARS220 million from Seguros de Dep˘sitos SA (Sedesa), a
local institution that manages a financial crisis reserve fund,
to bring the total offering price to ARS519 million (US$180mn).
Of the losing bidders, only Banco Hipotecario's offer came close
to Macro Bansud's, at a reported ARS140 million.

The statement said the purchase now only needs the approval of
the Argentine central bank to be completed.

Banco Suquia, along with Nuevo Banco Bisel and Nuevo Banco de
Entre Rios SA, or Bersa, have been under the control of the
government since early 2002, when French banking conglomerate
Credit Agricole SA left Argentina in the middle of the country's
financial crisis. Banco de la Nacion, which has been managing
Banco Suquia in the absence of a new private owner, was unable
to successfully tender the three banks last year and had to re-
start the process in November 2003.


BRUMALAR: Initiates Bankruptcy Proceedings
------------------------------------------
Buenos Aires Court No. 25 declared Brumalar S.R.L. "Quiebra,"
reports Infobae. Clerk No. 49 assists the court on the case,
which will close with the liquidation of the Company's assets to
repay creditors.

Ms. Aida Camara Kasbarian, the court-appointed receiver, will
verify creditors' claims until June 11, 2004 and then prepare
the individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on August
10, 2004 followed by the general report on September 22, 2004.

CONTACT:  Aida Camara Kasbarian, Receiver
          Av Cordoba 904
          Buenos Aires


CERAMICA CAMPANA: Court OKs Concurso Petition
---------------------------------------------
Zarate-Campana Civil and Commercial Court No. 2 approved the
"Concurso Preventivo" petition filed by Ceramica Campana S.A.
The court is yet to name a receiver as well as the deadline for
the submission of the necessary reports concerning the Company's
reorganization process.


COMPANIA MEGA: S&P Affirms Ratings, Removes From CreditWatch
------------------------------------------------------------
Standard & Poor's Ratings Serviced said Thursday that the 'CCC+'
ratings on Argentina-based gas separation project Compania Mega
S.A.'s (Mega) $120.9 million secured floating-rate notes series
D, $102.0 million secured floating-rate notes series E, and
$169.7 million secured fixed-rate notes series G were removed
from CreditWatch with positive implications where they were
placed on Jan. 20, 2004, given expectations of better credit
quality after the announcement of the extension of the
guarantees on the company's financial obligations until Dec. 31,
2005. The ratings are affirmed. The outlook is stable.

As expected by Standard & Poor's, parent support has
significantly increased after the extension of the guarantees on
Mega's notes provided by the sponsor's parents in January 2004.
In addition, ethane sales and natural gas purchase contracts
were successfully renegotiated and the company continued to show
strong operating and financial performance.

"However, the ratings will not be upgraded at this point, as
anticipated in January 2004, given the current natural gas
crisis in Argentina that poses uncertainties regarding the
natural gas availability for the company and the increasing
uncertainties for the sector," said credit analyst Pablo
Lutereau. "In Standard & Poor's opinion the company's strong
operating and financial performance and higher degree of parent
support would be enough to mitigate the uncertainties caused by
the natural gas crisis and the potential government
intervention," he added.

The ratings on Mega reflect the risks associated with operating
in the country's unsettled economic and social environment,
particularly the potential risks of higher governmental
intervention in light of the current natural gas crisis in
Argentina. The ratings also reflect the company's exposure to
market price volatility.  However, those risks are partially
offset by the fact that more than 60% of Mega's revenues are
expected to come from exports and, therefore, remain U.S.
dollar-denominated.

Mega is an operating project involving a natural gas separation
plant, a pipeline, and a gas fractionation facility devoted to
the separation of natural gas into ethane, butane, natural
gasoline, and liquefied petroleum gas (LPG). YPF  S.A. (foreign
currency: BB/Stable/--) (38%), Petrobras Energia S.A. (B-
/Stable/--) (34%), and Dow Quimica Argentina (28%) own Mega.
Mega commenced its operations in 2001.

Analysts: Pablo Lutereau, London (44) 20-7176-3766
          Marta Castelli, Buenos Aires (54) 114-891-2128
          Luciano Gremone, Buenos Aires (54) 11-4891-2143


DEL SOL CONSTRUCCIONES: Court Orders Bankruptcy
-----------------------------------------------
Buenos Aires Court No. 1 decreed the bankruptcy of Del Sol
Construcciones S.R.L., reports Infobae. The Company will kick
off the process with Mr. Mario Sogari as receiver, who will
verify creditors' claims until July 2, 2004. The Company's case
will conclude with the liquidation of its assets to repay
creditors. Clerk No. 1 assists the court in handling the
proceedings.

CONTACT: Mario Sogari, Receiver
         Montevideo 734
         Buenos Aires


DERIM: Court Favors Creditor's Bankruptcy Petition
--------------------------------------------------
Union de Obreros y Empleados Plasticos successfully sought for
the bankruptcy of Derim S.A. after Judge Fernando Ottolenghi of
Buenos Aires Court No. 4 declared the Company "Quiebra," reports
La Nacion.

As such, Derim will now start the bankruptcy process with Mr.
Ernesto Iob as receiver. Creditors of the Company must submit
their proofs of claim to the receiver before June 29, 2004 for
authentication. Failure to do so will mean a disqualification
from the payments that will be made after the Company's assets
are liquidated.

Union de Obreros sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$23,699.51. Clerk No.
8. Dra. Anta, assists the court on the case, which will
culminate in the liquidation of all of its assets.

CONTACT: Derim SA
         Necochea 3733
         Buenos Aires

         Ernesto Iob, Receiver
         Teniente General Juan Domingo Per˘n 1186, piso 1§ "A"
         Buenos Aires


EL MAGO: Court Sets Deadline for Submission of Necessary Reports
----------------------------------------------------------------
Buenos Aires Court No. 6 ordered Mr. Luis Aristides Traverso,
the receiver tasked to oversee the bankruptcy proceedings of El
Mago S.A., to submit the individual reports to court on July 8,
2004, says Infobae.

Individual reports contain the results of the claims
verification process that's expected to be completed by May 27,
2004. After submitting these reports to court, the receiver will
consolidate all of it into a general report and submit it to
court on September 6, 2004.

The Troubled Company Reporter - Latin America recalls that El
Mago S.A. was declared bankrupt by the court, which is assisted
by Clerk No. 12, granting approval to a bankruptcy petition
filed by the Company's creditor, Jose Arriola, for nonpayment of
ARS5362,63 in debt.

The case will conclude with the liquidation of all of its assets
to repay creditors. Repayment will be made based on the results
of the verification process.

CONTACT:  El Mago SA
          Azcuenaga 668
          Buenos Aires

          Luis Traverso, Receiver
          Avenida Corrientes 1820, piso 10 "B"
          Buenos Aires


EMPRESA ARGENTINA: Formalizes Reorganization
--------------------------------------------
Judge Gutierrez Cabello of Buenos Aires Court No. 7 approved the
"Concurso Preventivo" petition filed by Empresa Argentina de
Construcciones S.A., reports local news source La Nacion.

The Company, which listed assets of US$34,000.00 and liabilities
of US$37,000.00, will undergo a reorganization process, with Mr.
Raquel Poliak as receiver.

The court-appointed receiver will verify creditors' proofs of
claim until June 22, 2004. Verifications are done to ascertain
the nature and amount of the Company's debts. The receiver will
also prepare the individual and general reports on the case.

Clerk No. 14, Dr. Giardinieri, assists the court on the case.

CONTACT:  Empresa Argentina de Construcciones SA
          Esmeralda 847, piso 6§ "I"
          Buenos Aires

          Raquel Poliak
          Lavalle 1527, piso 4§ "16"
          Buenos Aires


FRIO Y CALOR: Court Sets Deadline for Submission of Reports
-----------------------------------------------------------
After authorizing Frio y Calor S.A. to undergo a reorganization
process earlier last month, Judge Herrera of Buenos Aires Court
No. 3 ordered Mr. Ruben Daniel Sarafian, the receiver, to submit
individual reports on August 19, 2004.

The submission of the individual reports follows the
verification process, which is expected completed by June 16,
2004. After submitting the individual reports, the receiver will
prepare the general report and hand it to court on September 30,
2004.

The informative assembly, which sets the last phase of a
reorganization process, will take place on March 11, 2005.

Frio y Calor listed assets of US$1,703,750.79 and liabilities of
US$1,175,716.57 when it filed a petition to undergo a
reorganization process.

CONTACT:  Frio y Calor SA
          Joaquin V. Gonzalez 646, piso 3o, "A"
          Buenos Aires

          Ruben Sarafian, Receiver
          Tucuman 1657, piso 4o, "A"
          Buenos Aires


GRANADEROS: Bankruptcy Process Begins By Court Order
----------------------------------------------------
Buenos Aires Court No. 15 declared Granaderos S.A. "Quiebra,"
reports Infobae. The declaration allows the Company to proceed
with the bankruptcy process, which will close with the
liquidation of its assets.

The court, assisted by Clerk No. 29, appointed Mr. Hector Jorge
Garcia, as receiver who will authenticate proofs of claim until
June 22, 2004. Analyzing these claims is important because the
outcome of the process will determine the amount each creditor
will get after all the assets of the Company are liquidated.

CONTACT:  Hector Jorge Garcia, Receiver
          Montevideo 734
          Buenos Aires


HUAICO: Local Court OKs "Concurso Preventivo" Petition
------------------------------------------------------
Cordoba Civil and Commercial Court No. 8 granted local company
Huaico S.A. approval to a petition to start a reorganization
process, reports Infobae.

The Court appointed Ms. Esther C. Tuninetti de Diaz as receiver
whose responsibilities include verifying creditors' proofs of
claim as well as preparing the necessary reports.

Important dates, such as the deadline of the claims verification
process, the submission of the necessary reports, and the
schedule for the informative assembly will be announced shortly.

CONTACT:  Esther C Tuninetti de Diaz, Receiver
          9 de Julio 183
          Cordoba


IMPORTADORA CAMFER: Court Approves Creditor's Bankruptcy Motion
---------------------------------------------------------------
Judge Gutierrez Cabello of Buenos Aires Court No. 7 declared
Importadora Camfer S.A. bankrupt, according to data obtained by
local online daily La Nacion. The ruling comes in approval of
the bankruptcy petition filed by the Company's creditor,
Importadora y Exportadora Irmaos Leffa Ltda., for nonpayment of
debts amounting to US$3,885.

Clerk No. 13, Dra. O'Reilly, assists the court on the case,
which will conclude with the liquidation of the Company's
assets.

The Company's receiver, Mr. Raquel Poliak, will examine and
authenticate creditors' claims until July 14, 2004. This is done
to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the receiver
by the said date in order to qualify for the payments that will
be made after the Company's assets are liquidated.

CONTACT:  Importadora Camfer S.A.
          Viamonte 1328, piso 5§
          Buenos Aires

          Raquel Poliak, Receiver
          Lavalle 1527, piso 4§ "16"
          Buenos Aires


NII HOLDINGS: Launches Latam Cross-Border Call Service
------------------------------------------------------
Beginning in May, Latin Americans will be able to enjoy quick
and convenient cross-border push-talk communications service via
NII Holdings Inc.'s (NIHD) Direct Connect Technology, reports
Dow Jones.

NII Holdings Inc. (NIHD), affiliated with Nextel Communications
(NXTL), initially introduced cross-border capability on its
wireless technology towards the end of last year for customers
on the Mexican-U.S. border.

At present, the company is extending that option across the
region, starting with clients south of the Rio Grande, in the
hope of attracting multinational companies looking for a quick
and efficient means of communication between staff from Mexico
City to Buenos Aires.

Bogota-based wireless analyst Wally Swain said that
multinationals should warm up to the idea of securing virtually
free long-distance capabilities within a closed network that
bypasses typical cross-border headaches and settlement fees.

However, he cautioned that the service could also attract some
regulatory heat if long-distance carriers complain the service
is dipping into their share of the telecommunications pie.

The bid to capture the Latin American market will not be an easy
fight for NII. America Movil SA (AMX) announced Wednesday its
own plans to launch a similar service in Mexico as early as the
fourth quarter before expanding it across seven other Latin
American markets.

America Movil, a Mexican company second only to Spain's
Telefonica Moviles SA (TEM) in the Latin American wireless
hierarchy, boasts of more than 40 million customers in the
region, almost thirty times as large as NII's subscriber base.
This threat, however, has been downplayed by NII officials. Dow
Jones quotes Steve Shindler, NII's chairman and chief executive
officer, as saying that "We believe we have a better product
both in terms of quality and functionality,"

Mr. Swain agrees. He noted that NII's CDMA Technology is better
suited to transmitting push-talk calls compared with America
Movil's GSM wireless technology which takes up six seconds to
connect calls, a significant lag over the almost-instantaneous
voice connections that NII offers.

Service charges for the new option have not been announced but
it could likely boost the company's average revenue per user,
which already stands at US$55 a month as of the first quarter,
more than three times the industry average for wireless
providers in Latin America.

Direct Connect, the proprietary technology that NII uses, has
allowed the company to carve a lucrative niche in the Latin
American telecommunications market.

Their first quarter financial report release claims a
subscription increase of 89,200 from the end of December
boosting its combined costumer base in Argentina, Brazil, Mexico
and Peru to 1.55 million users. Churn rate, which measures how
many of its customers drop the service, fell to 2.0% in the
first quarter, from 2.6% a year ago, and the ninth straight
quarterly decline.


NII HOLDINGS: Reports US$83M EBITDA for 1Q04
--------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD - News) announced Thursday its
consolidated financial results for the first quarter of 2004.
The Company reported consolidated operating revenues of $277
million, a 36% increase as compared to the first quarter of
2003, and consolidated operating income before depreciation and
amortization of $83 million -- a 45% increase as compared to the
same period last year. The Company added about 89,200 net
subscribers to its network during the quarter, an increase of
136% over the first quarter of 2003, resulting in approximately
1.55 million subscribers as of March 31, 2004. The Company
generated consolidated operating income of $54 million during
the quarter, a 39% increase over the first quarter 2003. The
Company reported a consolidated net loss of $40 million, or
$(0.58) per basic share, which included a charge of $79 million,
or $1.15 per basic share, related to the early retirement of the
Company's 13% senior debt through a cash tender offer, partially
offset by $13.6 million, or $0.20 per basic share, in non-cash
gains related to the reversal of certain deferred tax asset
valuation reserves. Excluding the charge related to the
retirement of its 13% debt and the non-cash tax benefits, the
Company generated net income of $26 million, or $0.37 per basic
share. The Company ended the first quarter of 2004 with $398
million in consolidated cash, cash equivalents and short-term
investments.

"The successful execution of our profitable growth strategy has
continued to lead to superior operational and financial
results," said Steve Shindler, NII Holdings' Chairman and CEO.
"During the first quarter, we added more customers to our
network than in any quarter over the past two years and did so
while improving our operating income before depreciation and
amortization by 45% over the same period a year ago and by 34%
over the previous quarter. Our operations are gaining momentum
in all of our markets, with solid subscriber additions and
increasing customer satisfaction as evidenced by meaningful
reductions in churn."

NII Holdings' average monthly revenue per subscriber (ARPU) was
approximately $55 for the quarter, up from $50 for the same
period last year. The Company also announced its ninth
consecutive quarter of churn reduction, reporting average
consolidated churn of 1.9% in the quarter, a 70 basis point
improvement from the 2.6% churn level reported in the first
quarter of 2003. This positive trend was highlighted by a
significant drop in churn in Brazil to 2.3% for the first
quarter.

NII Holdings, Inc., its operations in Mexico, Brazil, Argentina
and Peru, along with Nextel Communications, Nextel Partners,
Telus Corporation, and Motorola, are in the final stages of
readiness for the synchronized deployment of international
Direct Connect(TM), -- a joint initiative enabling a first-ever
pan regional Push-to-Talk(TM) capability. The project is ahead
of schedule and the functionality, which is in the last stage of
testing, is on track to begin the initial phase of commercial
launch next month.

"This latest breakthrough in dispatch communication is the fruit
of a shared commitment and a high degree of cooperation among
the partners who have joined forces to develop, test and release
this service," Shindler said. "International Direct Connect(TM)
is as much a milestone in communication techniques, as it is a
natural extension of the dispatch feature which has
distinguished iDEN(TM) operators among business users in both
North and South America," said Shindler. The product meets a
growing need among NII Holdings' subscribers, as well as among
businesses in general, for a solution that provides instant and
cost effective communications across geographies.

During the quarter, the Company raised about $292 million in net
proceeds through a 30-year, 2 7/8% convertible notes offering.
Proceeds from this transaction were used to complete a tender
offer for substantially all of NII's 13% senior secured discount
notes and to partially pay down $73 million in vendor debt. The
Company's total long-term debt as of March 31, 2004 was $642
million, including $480 million in convertible notes, $109
million in tower financing obligations and $53 million in vendor
debt.

"The financing transactions completed during the quarter were
consistent with our previously announced focus on strengthening
our liquidity position, maximizing our operational and financial
flexibility, lowering our cost of capital while seeking to
minimize foreign exchange risks and tax inefficiencies," said
Byron Siliezar, Vice President and CFO. "Similar to our
September 2003 transactions, our convertible notes offering in
the first quarter was well received by the capital markets and
was significantly oversubscribed. We successfully tendered for
the 13% senior secured discount notes, retiring approximately
99.97% of the issue. Our net debt now stands at $244 million,
which equates to a net debt to 2004 operating income before
depreciation and amortization guidance of about 0.8 times."

Consolidated capital expenditures, including capitalized
interest, were $48 million during the first quarter of 2004.

In February 2004, the Company announced that its Board of
Directors approved a 3-for-1 split of the Company's common
stock, effected in the form of a dividend of two shares for each
outstanding share that was paid on March 22, 2004 to
shareholders of record as of March 12, 2004. All share and per
share amounts included in this release reflect the 3-for-1
common stock split.

In addition to the results prepared in accordance with
accounting principles generally accepted in the United States
(GAAP) provided throughout this press release, NII has presented
consolidated operating income before depreciation and
amortization, ARPU, adjusted net income, net debt and cost per
gross add (CPGA), which are non-GAAP financial measures and
should be considered in addition to, but not as substitutes for,
the information prepared in accordance with GAAP.
Reconciliations from GAAP results to these non-GAAP financial
measures are provided in the notes to the attached financial
table. To view these and other reconciliations of non-GAAP
financial measures that the Company uses and information about
how to access the conference call discussing NII's first quarter
results, visit the investor relations link at
http://www.nii.com.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connectr, a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

To see financial statements:
http://bankrupt.com/misc/NII_Holdings.txt

Visit the Company's website at http://www.nii.com.


PANCOR: Court Authorizes Reorganization
---------------------------------------
Cordoba Civil and Commercial Court No. 5 granted Pancor S.A.
approval to a petition to start a reorganization process,
reports Infobae.

Along with the approval is the appointment of Mr. Oscar Santiago
Luchino, as receiver who will authenticate creditors' proofs of
claim until June 29, 2004.

Important dates, such as the deadline for the submission of the
necessary reports, as well as the schedule for the informative
assembly will be announced shortly.

CONTACT:  Pancor S.A.
          San Luis 140
          Cordoba

          Oscar Santiago Luchino, Receiver
          Coronel Olmedo 51
          Cordoba


SECOR COMUNICACIONES: Court Issues Bankruptcy Ruling
----------------------------------------------------
Secor Comunicaciones S.A. will now enter bankruptcy as Buenos
Aires Court No. 6 declared it "Quiebra," reports Infobae.

With assistance from Clerk No. 12, the court named Mr. Roberto
A. Boffa as receiver. He will verify creditors' claims until May
27, 2004.

Following claims verification, the receiver will submit the
individual reports, which were prepared based on the
verification results, to court on July 8, 2004. The general
report is due for submission on September 6, 2004.

The Company's bankruptcy case will close with the liquidation of
its assets to pay its creditors.

CONTACT:  Roberto A. Boffa, Receiver
          Uruguay 390
          Buenos Aires


ST. LEGER: Concludes Reorganization
-----------------------------------
The reorganization of Buenos Aires-based St. Leger S.A. has
ended. Data revealed by Infobae on its Web site indicated that
the process was concluded after Buenos Aires Court No. 22, with
assistance from Clerk No. 44, homologated the debt agreement
signed between the Company and its creditors.


TELEFONICA DE ARGENTINA: Plans US$150 Million Bond Issue
--------------------------------------------------------
In a press statement Thursday, Telefonica de Argentina SA said
it will be issuing US$150 million in one-year, zero-coupon bonds
under a US$1.5 billion program approved last year, according to
Dow Jones.

Telefonica de Argentina, the Argentine unit of Spanish telecom
Telefonica SA, said in its statement that it will have two
tranches, one that is a competitive tender and the other non-
competitive. The company will guarantee a yield equal or greater
than a reference level to be established later, the statement
said. Banco Rio de la Plata SA and Deutsche Bank SA will serve
as agents for the issuance, which the company says is the first
placement under the broader bond program and its first peso-
denominated issuance in local capital markets.


UNION FEDERATIVA: Starts Reorganization With Court's Approval
-------------------------------------------------------------
Cordoba Civil and Commercial Court No. 4 granted Union
Federativa de Centros de Jubilados y Pensionados de la Provincia
de Cordoba (U.Fe.Cen.Cor) approval to a petition to start a
reorganization process, reports Infobae.

The Court is yet to appoint a receiver, who will oversee the
Company's reorganization process. Furthermore, the court is yet
to set the timetable for the reorganization process.

CONTACT:  U.Fe.Cen.Cor
          Maciel 95 Cordoba


VANGUARDIA TEXTIL: Initiates Bankruptcy Process on Court's Order
----------------------------------------------------------------
Vanguardia Textil S.A., which is domiciled in Buenos Aires,
entered bankruptcy as the city's Court No. 15 ruled that it is
"Quiebra." Infobae reveals that the city's Clerk No. 29 aids the
court on the process.

The court appointed Mr. Carlos Alberto Lausi as the Company's
receiver. Creditors must submit their proofs of claims to the
receiver for verification before June 25, 2004. The receiver is
also required to prepare the individual and general reports on
the bankruptcy process.

CONTACT:  Carlos Alberto Lausi, Receiver
          Av de Mayo 633
          Buenos Aires


VIALDEC: Court Declares "Quiebra"
---------------------------------
Court No. 12 of Buenos Aires ruled that local company Vialdec
S.R.L. is "Quiebra", placing the Company into bankruptcy.
Infobae reports that the city's Clerk No. 23 aids the court on
the case.

The court appointed Mr. Luis Ricardo Kralj as the Company's
receiver. Creditors have until May 10, 2004 to present their
claims to the receiver for verification. After that, the
receiver will prepare the individual reports, which must be
submitted to court on June 21, 2004. The court requires the
receiver to file the general report on August 17, 2004.

CONTACT:  Luis Ricardo Kralj
          Bouchard 468
          Buenos Aires


* Argentina to Present Debt Rescheduling Plan by June
-----------------------------------------------------
Argentina will spell out by June terms of the bonds it plans to
exchange for US$99.4 billion of defaulted debt, the government's
most specific restructuring proposal since it stopped paying its
obligations in late 2001.

The government will present the plan to the U.S. Securities and
Exchange commission as well as Argentine regulators and the
agencies may take about three months to approve the plan.

Argentina is facing dozens of lawsuits from bondholders
challenging its restructuring offer to swap old bonds for new
securities worth US$250 per US$1,000 face value of defaulted
debt. Investors want the government to meet more often to show a
willingness to negotiate terms of the new bonds.

Argentina has pledged to accelerate talks with creditors to meet
terms of a US$13.3 billion International Monetary Fund loan
agreement, the country's main source of outside financing.



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

TYCO INTERNATIONAL: Unit Resolves Clean Water Act Violations
------------------------------------------------------------
Tyco Printed Circuit Group, Limited Partnership (TPCG) has
entered a plea agreement with the U.S. Attorney's Office for the
District of Connecticut to resolve violations of the Clean Water
Act. Under terms of the plea agreement, TPCG has admitted to
violations of the federal Clean Water Act before and including
2001. TPCG has agreed to pay a fine of $6 million and to
contribute $4 million towards projects designed to improve the
environment for the citizens of Connecticut.

The plea agreement brings to an end a federal criminal
investigation conducted by the U.S. Attorney's Office for the
District of Connecticut and the U.S. Environmental Protection
Agency that focused on three TPCG manufacturing facilities in
Manchester, Stafford and Staffordville, Conn.

The violations involved improper sampling and reporting of
wastewater and the bypass of a sandfilter, the last stage in the
process of treating wastewater before discharging it into a
local wastewater treatment facility. These violations resulted
from the actions of three former employees who had worked in the
environmental department of TPCG in Connecticut. TPCG
immediately suspended two of the employees upon learning of the
federal investigation in 2001; the third employee had previously
left the company. Each of the three former employees has pled
guilty to felony Clean Water Act violations and is awaiting
sentencing.

Upon learning of the federal investigation, TPCG commenced its
own comprehensive internal investigation. TPCG self-reported the
results of its investigation to federal and state authorities.

TPCG has taken extensive corrective actions to prevent future
violations. These actions included: bringing in new
professionals to operate wastewater treatment and oversee
compliance; developing and updating procedures; providing
additional employee training; and taking other actions to
improve compliance awareness and performance.

In addition, TPCG has developed and implemented a formal
environmental management system and compliance plan for all of
its facilities nationwide.

TPCG, a unit of Tyco Electronics, is one of the world's largest
producers of printed circuits.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's leading provider of both
electronic security services and fire protection services; the
world's leading supplier of passive electronic components; a
world leader in the medical products industry; and the world's
leading manufacturer of industrial valves and controls. Tyco
also holds a strong leadership position in plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2003 revenues from continuing operations of approximately
$37 billion.



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

BRASKEM: EBITDA Reaches BRL529 Million in 1Q04
----------------------------------------------
Braskem S.A. (NYSE: BAK) (BOVESPA: BRKM5) (LATIBEX: XBRK),
leader in the thermoplastic resins segment in Latin America and
among the five largest Brazilian privately owned industrial
companies, announced Thursday its earnings for the first quarter
of 2004. Results are stated in Reals in accordance with
Brazilian Corporate Law, except that results presented herein
are not in accordance with CVM Instruction 247 as they exclude
the effects of proportional consolidation. The financial
information and analysis contained herein reflect the
organizational structure of Braskem S/A ("Braskem") as of March
31, 2004. Comments in this release refer to the consolidated
earnings, with all comparisons being made with the same period
in 2003, except where otherwise indicated. The consolidated pro-
forma balance sheet and income statement have been reviewed by
independent auditors and reflect the elimination of the effects
of CVM Instruction 247 (i.e., only those investments under
Braskem's direct management consolidated, and Braskem's stakes
in Politeno Industria e Comercio S.A. and COPESUL -- Companhia
Petroquimica do Sul are recognized via the equity accounting
method). On March 31, 2004, the Brazilian Real/US Dollar
exchange rate was BRL2.9086/U.S.$ 1.00.

    -- Braskem's EBITDA reaches BRL529 million in 1Q04
    -- EBITDA margin grew to 25% in 1Q04 from 20% in 1Q03

In the first quarter of 2004, Braskem's EBITDA (earnings before
interest, taxes and depreciation and amortization) reached
BRL529 million, representing an increase of 18% compared to
EBITDA of BRL450 million posted for the same period in 2003.
EBITDA margin over net revenues in the first three months of
2004 was 25%, which compares to 20% reported in the same period
last year.

Braskem continued to capture synergies stemming from its
integration process, having accumulated a total of BRL310
million through March 2004 on annualized and recurring bases, or
nearly 94% of an estimated total of BRL330 million. Braskem's
success in capturing these synergies confirms the efficiency of
its business model, based on the competitive integration of its
operations in the petrochemical chain and upon the consolidation
of its assets.

In terms of our operations, we highlight the scheduled
maintenance and inspection shutdown of the Raw Materials Center
II (Aromatics II and Olefins II) of our Basic Petrochemicals
Unit, located in the Camacari Petrochemical Complex in Bahia.
This shutdown took place in January and February of 2004 and
lasted, as planned, 35 days -- the next similar stoppage is
scheduled to occur in six years' time. In the same period, our
Polyolefins, Vinyls and Business Development Units also
implemented maintenance stoppages in its plants located in
Camacari and, for PVC, in Alagoas.

In the Innovation and Technology area, Braskem will become the
first Brazilian company to produce resins for sealants for bi-
oriented polypropylene film (BOPP). This new product is designed
primarily for automatic packaging processes and will reach the
market bearing its own brand name, Braskem Symbios(R). Another
highlight consisted of the Braskem Flexus(R) family of products,
based on metalocene polyethylenes, which present superior
resistance to impact and perforation. Accordingly, Braskem is
the first Brazilian company to make this product line available
in the domestic market. These two new products were developed by
Braskem's Technology and Innovation Center.

Braskem continued investing in its operations, comprising the
expansion projects in polypropylene (100,000 tons/year available
as of the second half of 2004) and in PVC (50,000 tons/year
available as of the second half of 2005).

As part of the ongoing ownership integration process, the merger
of Trikem S.A. ("Trikem") was approved by Braskem's and Trikem's
Extraordinary General Meetings held on January 15, 2004. At the
end of this process, Braskem's total capital reached BRL2.192
billion, split into 77,190,074,544 shares, of which
25,730,061,841 are common shares (ON), 51,230,857,903 are Class
"A" preferred (PNA) shares and 229,154,800 are Class "B"
preferred shares (PNB). This transaction helped increase
Braskem's free-float (total quantity of common and preferred
shares in hands of non-controlling shareholders), which today
corresponds to 36%.

In the first three months of 2004, Braskem successfully
implemented its financial strategy of extending its debt
maturing profile. At the end of March 2004, Braskem's short-term
debt represented 32% of its total gross debt, and its cash
balance and financial investments amounted to BRL2 billion. Such
performance resulted from the Company's sound operating cash
flow registered in the first quarter of 2004 (BRL653 million)
and from important financial operations implemented in the same
period in local and international capital markets. Consequently,
on March 31, 2004, Braskem's Net Debt-to-EBITDA ratio dropped to
3.42 from 3.52 registered on December 31, 2003.

"We keep our expectations that Braskem will continue improving
its economic and financial performance as a result of the
combination of the increase in domestic sales volumes and the
international recovery of prices and profitability in the
petrochemical industry," said Jose Carlos Grubisich, Braskem's
President and CEO.


CEMIG: Tariff Hike Boosts 1Q04 Profits
--------------------------------------
A 31.53% tariff hike in April last year continues to have a
positive impact on the financial position of Brazilian
integrated electric utility Companhia Energetica de Minas Gerais
(Cemig) in the first quarter this year.

Cemig, one of the largest energy distributors in Latin America,
is expected to post a first-quarter net profit between BRL160
million ($1=BRL2.97) and BRL199 million, up from BRL152 million
in the first quarter last year.

Dow Jones Business News reveals that net revenue is expected to
hover around BRL1.4 billion, while earnings before interest,
tax, depreciation and amortization (EBITDA) is seen reaching
between BRL416 million and BRL485 million. In the same period
last year, revenue was BRL1.1 billion while EBITDA was BRL263
million.

In comparison to fourth quarter 2003 results, however, it
indicates a decline in performance. Sluggish economic activity
in the first quarter this year prevented Cemig from surpassing
the whooping BRL1.2 billion net profit it reported the last
three months of the year.

Cemig's first quarter financial report will provide clues on
electricity sale trends according to market watchers. In its
full-year report, Cemig said it sold 1.8% more electricity in
2003, leading its revenue to grow to BRL5.6 billion from BRL5.2
billion in the previous year.


EMBRATEL: Calais Not Appealing Sale
-----------------------------------
A report by local newspaper Folha de Sao Paulo said that
Brazilian consortium Calais Participacoes will not appeal a US
court decision Tuesday that approved the sale of US telco MCI's
19.26% voting share stake in Embratel to Mexico's Telmex,
Business News Americas relates.

The Folha report quoted Telemar chair and Calais spokesperson
Otavio Azevedo as saying that its failed bid for Brazil's
largest long-distance carrier Embratel is a "turned page". The
consortium's press office, however, has not yet confirmed the
report.


EMBRATEL: MCI Files Audited Financial Statements for 2003
---------------------------------------------------------
MCI, Inc. (MCIAV.PK) has filed its annual report on Form 10-K
for the year ended December 31, 2003, as well as quarterly
reports on Form 10-Q for the first three quarters of the fiscal
year.

The Company reported revenue for 2003 of $27.3 billion, compared
to $32.2 billion in 2002. Results include revenue from Embratel
Participacoes, S. A., a telecommunications provider in Brazil.
When Embratel's revenue is excluded from both years, MCI's
revenue declined 14.7 percent to $24.4 billion from $28.6
billion in 2002. MCI announced in March 2004 that it intends to
sell its financial stake in Embratel.

Operating income for 2003 totaled $908 million, compared to a
loss of $4.2 billion in 2002. Excluding Embratel, operating
income was $677 million in 2003, compared to an operating loss
of $4.3 billion a year earlier. The operating loss in 2002
included impairment charges on property, plant and equipment of
$4.6 billion, in addition to goodwill and intangible asset
impairment charges of $400 million.

Fresh Start Accounting

On April 20, 2004, the Company emerged from bankruptcy. MCI
implemented Fresh Start accounting to its financial statements
effective December 31, 2003, in accordance with generally
accepted accounting principles (GAAP). Accordingly, the company
adjusted its balance sheet to a new basis of accounting. The
most important mechanics of this process include adjusting asset
values, liabilities and shareholders' equity for the effects of
the Company's plan of reorganization.

This process also impacted the 2003 income statement and
resulted in a $22.1 billion gain on the line item
"Reorganization Items, net." This gain is composed primarily of
the discharge of debt obligations, offset partially by the
amounts of new debt and stock issued to settle the claims of
creditors, as well as other reorganization items. Among the
reorganization expenses were $562 million of restructuring costs
and $125 million of legal and accounting fees associated with
the bankruptcy.

Including these adjustments, net income was $22.2 billion in
2003, compared to a loss of $9.2 billion in 2002.

MCI reported cash and equivalents of $6.2 billion and long term
debt of $7.4 billion as of December 31, 2003, reflecting the
issuance of new debt upon MCI's emergence from bankruptcy. Net
of its Embratel interest, MCI's cash and debt on its December
31, 2003, balance sheet were $5.6 billion and $5.8 billion,
respectively.

"In 2003 we made tremendous strides in improving MCI's financial
health and strengthening technological leadership," said Bob
Blakely, executive vice president and Chief Financial Officer.
"MCI is now current with our filings with the SEC, and we expect
future filings to be made on a current basis."

Operating Results

In 2003, results continued to be affected by an adverse industry
environment characterized by excess network capacity, rapid
technological change and pricing pressure. In addition, the
Company's bankruptcy filing and the events preceding it made it
more difficult to attract new business customers and to expand
existing business. Despite these challenges, MCI improved its
leadership in service quality and maintained the highest levels
of customer satisfaction and retention throughout the period.

    Revenue contributions by business segment follow:

                             Year Ended December 31,
     (millions)           2003            2002         %Change

     Business Markets   $14,125         $17,466          (19.1%)
     Mass Markets         6,375           7,483          (14.8%)
     International        3,860           3,637            6.1%

     Total before
       Embratel          24,360          28,586          (14.8%)

     Embratel             2,955           3,603          (18.0%)

     Total              $27,315         $32,189          (15.1%)

Business Markets revenue reflected the benefit of new products
and services targeted toward global enterprise and government
customers, offset by continuing price competition in the Small
and Medium Business market. International revenue gains were
driven by increased contributions from the Europe, Middle East
and Africa region, and included the favorable effect of foreign
currency exchange.

Mass Markets' revenue decline was driven by the negative impact
of "Do Not Call" legislation, as well as continuing wireless
substitution and ongoing price competition.

The reorganization process provided an opportunity to
restructure and reduce operating expenses. The total of access
costs, costs of services and products and selling, general and
administrative expenses declined by 15 percent to $23.8 billion
in 2003, compared to $28.1 billion in 2002, reflecting changes
in volume as well as lower personnel costs. The change in
operating expenses includes a 21 percent drop in selling,
general and administrative expenses due to staffing reductions
and improvements in bad debt expense that were partially offset
by additional professional services fees incurred in support of
MCI's financial restatement efforts.

Restatement activities impacted depreciation and amortization
expense. As a result of these adjustments, depreciation and
amortization expense totaled $2.6 billion in 2003.


EMBRATEL: Sale Approval Expected By Regulator
---------------------------------------------
The sale of Brazilian long-distance carrier Embratel to Mexico's
Telmex is expected by the head of Brazil's top telephone
regulator to pass through his agency without any hitches,
according to Reuters.

"With relation to issues of concentration, I believe that there
won't be any difficulties," Anatel President Pedro Jaime Ziller
said, referring to the Embratel-Telmex deal. The independently-
run agency is mandated by Brazilian law to approve all deals
involving phone companies to ensure that they do not violate its
regulations or infringe on competition in the sector.

After Anatel's approval of the sale, which Mr. Ziller expects to
come by the end of May, the deal will still have to be approved
by the country's antitrust agency, where it is also expected to
experience smooth sailing.


EMBRATEL: Star One Control Being Sought by Government
------------------------------------------------------
The sale of Brazil's largest long-distance carrier Embratel
Paticipacoes SA to Mexican telephone company Telefonos de Mexico
(Telmex) has not yet been finalized, but the Brazilian
government is already planning to negotiate with the Mexican
company for the acquisition of Embratel's Star One satellite
unit, said a senior official at the BNDES state development bank
Thursday, Reuters relates.

The BNDES has already indicated in the past the government's
interest in Star One, which is 80% owned by Embratel. Star One
satellites are already being used by the state for military,
state bank, and federal data communications.

The offer of Telmex, which operates the mobile phone service
Claro in Brazil, to acquire the controlling stake of U.S.
telephone operator MCI Inc. for US$400 million was approved by a
U.S. bankruptcy court on Tuesday.

"If Telmex agrees, the credit which the BNDES has with the
companies that make up Claro -- Americel and Telet -- could be
turned into shares in Star One," said the BNDES official, who
spoke on condition of anonymity.

According to the source, the BNDES is already working out the
legal framework for the operation it valued at about US$160
million, which, the bank believes, will be enough to buy
Embratel's stake in Star One.


ESCELSA S&P Places Ratings On Watch Developing
----------------------------------------------
Standard & Poor's Rating Services placed Thursday its 'B+'
foreign- and local-currency ratings assigned to Espˇrito Santo
Centrais El‚tricas S.A. (Escelsa) on CreditWatch with developing
implications in its global scale. The 'B+' rating on the US$431
million senior notes program was also placed on CreditWatch with
developing implications.

The CreditWatch placement follows the announcement by EDP Brasil
of a significant ownership restructuring of its assets in
Brazil, having potential effects on Escelsa's balance sheet and
cash generation. It also addresses Escelsa's lower-than-expected
consolidated results in FYE2003 and the expectations that the
company's financial profile will remain aggressive, in the
absence of a positive ownership restructuring outcome.

Escelsa has just announced an ownership restructuring that aims
at lining up all investments of Portugal-based Eletricidade de
Portugal (EDP) Group in Brazil, under the direct control of its
holding company EDP Brasil. As a result, Escelsa's investment in
its subsidiary Empresa Energ‚tica de Mato Grosso do Sul S.A.
(Enersul) is planned to be transferred to EDP Brasil. Standard &
Poor's expects that the financial compensation for the
divestment on Enersul will result in a reduction in Escelsa's
financial leverage, most likely through the transfer or
settlement of the US$431 million senior notes program, as these
notes were the financial vehicle to acquire Enersul in 1997.
Standard & Poor's believes that the ownership restructuring
might strengthen Escelsa's credit profile, although not
necessarily implying a rating improvement.

On the other hand, Escelsa's financial indicators in FYE2003
were somewhat similar to those presented in FYE2002, which in
turn were already depressed for the rating category at that
time. Standard & Poor's continually assumed that the company
would be able to report better results and cash generation from
2003 on, reflecting a more stable operating environment for the
electric sector in general. Therefore, Escelsa's lower-than-
expected performance in 2003 poses downward pressure on ratings
in the absence of a positive ownership restructuring outcome.

Funds from operations (FFO) to total debt was 3.1% and FFO to
interest coverage was 1.31x in 2002. These ratios were fairly
stable in 2003, at 4.3% and 1.27x, respectively; but the
expected improvement in these ratios going forward tends to be
limited by Escelsa's high debt burden, therefore, leading the
company to depend on external funding and on volatile credit
availability in Brazil.

These ratings are expected to remain on CreditWatch Developing
until the announced ownership restructuring strategy is defined
and Standard & Poor's could assess the rating implications
involved in this process.

ESCELSA is an electric utility that holds the exclusive
concession to distribute energy in the Espˇrito Santo state to
about 970,000 consumers. Portugal-based EDP group (Electricidade
de Portugal; A/Negative/A-1) is the controlling shareholder with
a 52.3% stake in ESCELSA.

ANALYST:  Marcelo Costa, Sao Paulo (55) 11-5501-8955


TELEMAR: Issues Consolidated Results for 1Q04
---------------------------------------------
HIGHLIGHTS OF THE QUARTER

- The fixed plant in service comprised 15.1 million lines at the
end of Mar/04, in line with the prior quarter figures, with a
utilization rate of 87.2%.

- ADSL accesses totaled 284,000 subscribers, up 30.9% from 4Q03,
with a penetration rate representing 1.9% of the plant in
service.

- The mobile plant reached 4.4 million subscribers (+13.2% from
4Q03). Net additions for the quarter amounted to 515,000.

- Net revenues amounted to R$ 3,689 million, increasing by 0.5%
and 14.6% on 4Q03 and 1Q03, respectively. For the quarter,
wireline ARPU stood at R$ 75 and wireless ARPU reached R$ 24.

- Consolidated EBITDA was R$ 1,680 million, growing by 4.9% and
13.1% on 4Q03 and 1Q03, respectively. Consolidated margin stood
at 45.6% (43.7% for 4Q03).

- Net financial expenses totaled R$ 411 million for the quarter
(-22.6% from 4Q03).

- Net income for the quarter amounted to R$ 220 million, or R$
0.57 per thousand shares (US$ 0.20 per ADR), compared to a net
loss of R$112 million for 1Q03.

- Capital expenditures (Capex) amounted to R$ 197 million, equal
to 5.4% of net revenues.

- Free Cash flow after capex amounted to R$ 709 million during
the quarter.

At the end of March/04, net debt totaled R$ 8,388 million
(+R$554 million from Dec/03), after dividend payments in the
amount of R$934 million, related to 2003 fiscal year.

OPERATING PERFORMANCE REVIEW

Wireline

The wireline installed plant comprised 17,348,000 lines, while
the plant in service totaled 15,123,000 lines (Dec/03 -
15,147,000), including 662,000 public phones. The utilization
rate and the digitalization rate of the plant reached 87.2% and
99.0%, respectively.

During 1Q04, 630,000 lines were activated, with a net reduction
of 24,000 lines, from 4Q03. In spite of this, the average plant
in service reached 15,165,000 lines, growing by 0.2% on 4Q03
(15,141,000 lines) and 0.7% on 1Q03. As shown in Chart 1, since
3Q03 the average plant in service has consistently shown slight
increases.

ADSL activations continued to exhibit robust growth, in line
with the rate in the past few quarters, reaching 284,000
subscribers at the end of 1Q04 (up 30.9% from Dec/03). The
acquisition of 67,000 new customers during the quarter results
from the Company's strategy to add value to the installed
network, retain the best customers and increase wireline ARPU.

Wireless Services

At the end of 1Q04, Oi had 4,408,000 customers, up 13.2% from
Dec/03, with an estimated 19.8% market share in its operating
region. During 1Q04, Oi's market share of total net additions
within Region I was 48.3%.

Of the 515,000 new customers, 96.0% subscribed to prepaid plans
(4Q03 - 90.2%). This performance was superior to the one posted
by Brazilian whole mobile plant during 1Q04, when net additions
showed a total concentration on the prepaid segment, which
accounted for 102.5% of new subscriptions (the national postpaid
customer base decreased during the quarter), accounting to
ANATEL. At the end of 1Q04, Oi's customer mix comprised 84.6%
and 15.4% of customers under prepaid and postpaid plans,
respectively. The average customer base for the quarter was
4,144,000 subscribers (up 27.6% and 165.0% on 4Q03 and 1Q03,
respectively).

Churn rates at Oi stood at 3.6%, with 148,000 disconnections in
the quarter, compared to 2.7% during 4Q03, in line with our
estimates for the performance of these rates.

CONSOLIDATED RESULTS

Revenues

During the quarter, consolidated gross revenues totaled R$ 5,145
million (down R$ 107 million from 4Q03 and up R$ 692 million
from 1Q03). Revenues decreased from the previous quarter mainly
for seasonal reasons, as sales of mobile handsets (down R$ 140
million) are typically stronger at the end of the year.

Lower revenues from local services when compared to 4Q03 can
also be attributed to the seasonal effect of the reduced
economic activity in the first quarter of the year, combined
with summer vacations and Carnival holidays, in addition to the
fewer number of business days (62 days in 1Q04 versus 65 days in
4Q03). The decline was offset by ongoing growth in revenues from
other services, such as data transmission and long-distance
calls. During the quarter, wireline revenues were also
influenced by improved revenues from public phones and fixed
network usage.

Consolidated net revenues for the quarter reached R$3,689
million, increasing by 0.5% and 14.6% on 4Q03 and 1Q03,
respectively.

Wireline Services

Gross revenues from wireline services remained flat when
compared to 4Q03 and increased by 12.5% on 1Q03.

- Local ex-VC1 (monthly subscription, pulse, installation fee):
gross revenues from local services decreased by 3.5% on 4Q03,
essentially due to decreased revenues from pulse-based traffic.
Compared to 1Q03, local revenues grew by 11.3%.

- Revenues from Monthly subscriptions amounted to R$ 1,415
million for the quarter, in line with the prior quarter and the
stable plant in service during the period.

- Pulse-based traffic revenues reached R$ 635 million for the
quarter, down 9.3% from 4Q03, primarily due to lower traffic (-
12.4%), on account of the fewer number of business days, in
addition to the seasonal effect of the reduced economic activity
during the quarter, coupled to summer vacations and Carnival
holidays.

The 7.1% revenue growth compared to the same quarter of the
previous year is chiefly due to the tariff adjustment
implemented in 2003 (17.2%).

- Local fixed-to-mobile call (VC1) revenues decreased by 11.1%
compared to 4Q03. The tariff adjustment authorized in Feb/04
(7.0% on average) was not enough to offset the reduced traffic
in the quarter, due to the seasonal effects already described,
and the increased number of lines restricted for fixed-to-mobile
calls. Revenues declined 5.0% compared to 1Q03 due to the
traffic decrease, partly offset by the tariff adjustments
implemented in Feb/04 and Feb/03 (24.8%).

- Long-distance (intra and inter-regional, international and
VC2/VC3): revenues reached R$ 885 million for the quarter (+5.1%
and +32.8% from 4Q03 and 1Q03, respectively). Revenue increase
for the quarter (+R$ 43 million) was driven by long distance
calls originated from mobile phones, which grew by R$ 30 million
in the period, totaling R$ 90 million in 1Q04.

When compared to 1Q03, the growth by R$219 million is
attributable to market share gains in all lines of long distance
services (in particular on inter-regional calls), in addition to
the mobile originated long-distance calls (impacting all
segments), up R$ 64 million in the period.

- Remuneration for network usage: revenues increased by 19.1%
(+R$ 48 million) on the previous quarter, due to a non-recurring
adjustment of R$ 81 million which decreased revenues for 4Q03
(as a result of claims related with prior periods). In the
absence of such effect, revenues would have been reduced by
10.0% on 4Q03, due to the weaker economic activity in 1Q04, and
market share gains on long distance calls. When compared to
1Q03, revenues declined by 10.1%, also due to the constant
increase in our market share gains on in long distance services
and the installation of interconnection points of presence by
other companies in Region I.

- Data transmission services: revenues increased by 14.1% and
34.3% on 4Q03 and 1Q03, respectively. During the quarter, the
main drivers were leased line services (19.6%) and ADSL -
"gVelox" (30.9%).

Compared to 1Q03, the main services driving of data transmission
revenue were ADSL, accounting for 57% of the growth in the
period, together with IP, switching packages and frame relay
services (30%).

- Public telephones: revenues increased by 14.9% and 21.9% on
4Q03 and 1Q03, respectively. During the quarter, the growth
arose from a 10.5% expansion in phone cards sold, in addition to
higher use of third-party cards within Region I.

When compared to 1Q03, the increase can be essentially
attributed to the adjustment in the price of phone card units in
Jun/03, and the increased use of the company's long distance
code (CSP 31) on calls made from public phones.

Wireless Services

Revenues from wireless services amounted to R$ 372 million for
the quarter, approximately 22.3% below 4Q03 levels. The seasonal
decrease in the sale of handsets during the quarter (- 60%) was
the main driver of the revenue decline, partly offset by the
expansion in services provided (14%).

Revenues from wireless network usage, amounting to R$ 46 million
(after elimination of R$ 116 million billed to TMAR), surpassed
4Q03 and 1Q03 figures by 15.0% and 31.4%, respectively.

When compared with 1Q03, the growth in service revenues amounted
to 102.2%, while the average customer base increased by 165.0%.
The lower revenue increase related to the average customer base
reflects the change in both the remuneration criterion for
network usage among SMP companies ("Bill & Keep") and the
customer mix.

The average revenue per user (ARPU) for 1Q04 stood at R$ 24,
down 11.1% from 4Q03. In addition to the change in the customer
mix under prepaid and postpaid plans, the decline in the
quarterly ARPU was driven by two factors:

- Seasonal slowdown in economic activity during the quarter,
causing revenues from network usage and outgoing calls to grow
at a slower rate than the average customer base during the
period.

- A year-end 2003 promotion targeted at new postpaid
subscribers, from November through Christmas day, with a three-
month grace period on monthly subscriptions.

Net revenues from handset sales totaled R$ 71 million in 1Q04 (-
62.4% from 4Q03). During the quarter, approximately 426,000
handsets were sold, down 64.0% from 4Q03 sales (1,182,000
handsets).

Operating Costs and Expenses

Operating costs and expenses (ex-depreciation and amortization)
for the quarter were down 2.9% from 4Q03, chiefly on account of
lower handset acquisition costs (decreased sales) and
interconnection (reduction in fixed-to-mobile calls), as well as
third-party services and personnel, which was partly offset by
higher provisions for doubtful accounts and "other operating
expenses". The increase on the 1Q03 was 15.9%.

During the quarter, costs and expenses accounted for 54.4% of
net revenues (4Q03 - 56.4%), compared to 53.9% for 1Q03.

Interconnection: these costs have consistently decreased over
the past few quarters, as a result of a reduction in fixed-to-
mobile traffic and Oi's expanded market share in Region I. The
3.5% decrease on 4Q03 was partly offset by a 7.2% tariff
readjustment (VU-M) in Feb/04.

Personnel expenses decreased by 4.3% (R$ 11 million) quarter-on-
quarter, primarily because of headcounts reductions at TMAR
during the course of 4Q03 and 1Q04, as well as decreased
expenses at Contax (R$ 3.4 million). When compared with 1Q03,
the expansion of 47.0% in Contax staff - in line with the
increase in the average number of attending positions -
accounted for most of the 20.6% growth in personnel expenses.

Handset costs and Other (COGS) declined by 58.8% compared to
4Q03, basically as a result of the 64.0% decrease in the volume
of sales during the period.

Third-party services decreased by 7.6% compared to 4Q03, due to
lower expenses with consultants and sales commissions to
authorized agents. The 10.9% increase on 1Q03 is essentially
attributable to increased sales commissions brought about by the
expansion in handset sales, and to collection charges and
posting expenses (which increased by some 22% in 2003), besides
IT expenses.

Marketing expenses increased by 3.3% on 4Q03, on account of new
advertising campaigns mainly designed to foster the use of
Telemar code on mobile originated long-distance calls.

When compared to 1Q03, in addition to mobile originated LD
services, those campaigns were aimed at reinforcing our ADSL
brand Velox and at other specific promotions for LD calls.

Provisions for doubtful accounts - PDA: increased by 25.7% on
4Q03, representing 3.5% of consolidated gross revenues (vs. 2.7%
in 4Q03 and 3.2% in 1Q03).

PDA levels for the quarter at Oi reached 3.7% (4Q03 - 2.3%). At
TMAR (parent company), PDA levels were 3.4% (4Q03 - 2.7%).

The increased PDA levels for the quarter basically reflect the
seasonality in the retail segment.

According to Economic Research Institute IPEA and Sao Paulo
Commercial Association, default indices in the country grew by
50% in the first two months of 2004, compared to 4Q03, when
indicators generally improve as employees receive their
Christmas bonus ("13th monthly salary").

Other operating expenses (revenues): net expenses of R$ 96
million for the quarter, compared to revenues of R$ 48 million
for 4Q03 (when tax recoveries and other non recurring expense
reclassifications amounted to R$ 110 million). During the
quarter, provisions for contingencies were increased by R$ 41
million (4Q03 - R$ 14 million) as a result of adverse court
rulings.

Higher expenses in the quarter, compared to the same period last
year, result from increasing provisions for contingencies and
lower rebates in handsets and other discounts obtained.
EBITDA

- Consolidated EBITDA amounted to R$ 1,680 million (+4.9% on
4Q03), while the margin grew to 45.6% (4Q03 - 43.7%), largely
due to decreased costs and expenses during the quarter. EBITDA
grew by 13.1% compared to 1Q03.

- TMAR posted consolidated EBITDA of R$ 1,627 million (+3.9% and
11.3% on 4Q03 and 1Q03, respectively). EBITDA margin for the
period stood at 44.4% against 43.0% in 4Q03.

- Oi's EBITDA was R$ 42 million positive (margin of 9.7%). The
decrease in costs (fewer additions in 4Q04) and the increase in
revenues from services account for the positive results for the
quarter, being relevant to mention a R$22 million favorable
effect of non recurring tax credits on handsets inventories for
the quarter.

- Contax recorded EBITDA of R$ 17 million for the quarter, with
a 13.6% margin (4Q03 - 13.1%).

Financial Results

Net financial expenses amounted to R$ 411 million for 1Q04, down
R$ 120 million from 4Q03.

Financial revenues totaled R$ 146 million, a R$ 35 million
reduction compared with the previous quarter, mainly due to the
decrease in interest rates during the quarter (average CDI of
16.2% p.a. against 18.2% p.a. in 4Q03).

Financial expenses amounted to R$ 557 million, down R$ 155
million from the prior quarter. The main items impacting
financial expenses were:

(i) Exchange variation expenses on loans and financing, with a
    reduction of R$81 million in the quarter, arising from:

    (a) Monetary and exchange variations (R$ 111 million), as a
        result of monetary restatement charges of R$18 million
        and exchange variation charges of R$93 million (due to
        the depreciation of the real by 0.7% during the
        quarter); and

    (b) Currency swap results (R$ 50 million), due to CDI based
        interest expenses, amounting to R$ 285 million and
        exchange variation revenues of R$ 235 million.

(ii) Other financial expenses, with a R$ 69 million reduction
     from 4Q03, chiefly due to decreased expenses with the
     monetary restatement of provisions for contingencies, and
     lower provisions for taxes on financial revenues
(PIS/COFINS).

Net Income

Net income for the quarter amounted to R$ 220 million (compared
to R$ 514 million in 4Q03), with EPS of R$ 0.57, equivalent to
US$0.20 per ADR in the quarter. This compares favorable with
1Q03, when the Company reported a net loss of R$112 million.

Tax credits related to appropriation of R$137.7 million
(consolidated) as interest on capital for the quarter amounted
to R$46.8 million.

DEBT

At the end of 1Q04, the consolidated gross debt totaled R$
12,005 million, while the consolidated position of cash and
equivalents reached R$ 3,617 million. At the end of the quarter,
cash and equivalents exceeded short-term debt by 28.3%.

At the end of the quarter, the consolidated net debt totaled R$
8,388 million, increasing by R$554 million on 4Q03. The increase
was mainly attributable to dividend payments of R$934 million
(including taxes) related to 2003 fiscal year.

Loans in local currency amounted to R$ 3,162 million, of which
R$ 1,784 million were due to the BNDES (at the average cost of
TJLP + 4.4% p.a.) and R$ 1,271 million represents nonconvertible
debentures bearing interest at CDI rates + 0.7% p.a., maturing
in 2006.

Foreign currency loans, in the amount of R$ 8,843 million -
including swap results of R$ 730 million - bear interest at
contractual average rates of 5.2% p.a. for transactions in U.S.
dollar, 1.5% p.a. fixed for transactions in Japanese yen, and
10.7% p.a. fixed for a basket of currencies (BNDES).
Approximately 81.6% of the foreign currency loans before
exchange swaps were subject to floating interest rates.

Of the total foreign currency debt, approximately 96% had some
kind of hedge, with 81% in foreign exchange swap transactions
(88% of which contracted through final maturity of the related
debts), and 15% in financial investments linked to the exchange
variation.

Under the exchange swap transactions, exposure to foreign
currency fluctuations is transferred to local interest rates
(CDI). The average cost of swap transactions at the end of the
quarter was equivalent to 100.6% of the CDI rate.

During 1Q04, TMAR obtained funds amounting to R$ 541 million,
broken down as follows: R$ 100 million from BNDES, R$ 201
million from Santander, ABN AMRO Bank and Bilbao Vizcaya
Argentaria, as well as from Alcatel N.V. (Netherlands), and R$
240 million from a syndicate of financial institutions and
suppliers led by ABN Amro Bank to finance Oi's investment
program and working capital.

Amortizations of principal and interest for the quarter totaled
R$ 1,072 million, being R$736 million in principal and R$336
million as cash interest expense.

At the end of the quarter, the amount owed by TMAR to TNL was R$
2,625 million (up 6.4% from Dec/03), while a balance of R$ 166
million was due by other subsidiaries to TNL.

Supplier accounts amounted to R$ 1,427 million at the end of the
quarter, down R$ 482 million from Dec/03, being a part of it
(R$169 million) converted to "loans and financing".

CAPITAL EXPENDITURES

During the quarter, Capex totaled R$ 197 million, of which R$
136 million was allocated to the wireline business and R$ 56
million to the wireless business.

CASH FLOW

The consolidated cash flow from operations reached R$ 912
million for the quarter. The consolidated Free Cash Flow, after
of investing activities, amounted to R$ 709 million for the
quarter (R$ 1,538 million for 4Q03 and R$123 million for 1Q03
respectively).

The change in working capital is mainly due to a reduction
during the quarter in suppliers account.

OUTLOOK (ESTIMATES) 2004

Updates

Given the recent performance of the Company, it is reviewing the
following estimates:

- Wireless Subscribers - With respect to Oi, considering the
market expansion beyond the Company's initial forecasts, the
company is reviewing the total net additions anticipated for the
year, from 1.5 million to 2.1 million, totaling approximately
six million subscribers at the end of 2004.

- Debt - The company will continue to place the highest priority
on the reduction of its net debt. In effect, its recent results
support a view that our consolidated net debt will decrease by a
larger than previously estimated amount, i.e. to R$6.7 billion
at the end of 2004.

- CAPEX (2004 YE): even though the company is keeping its
guidance for total CAPEX between R$2.0 billion and R$2.3
billion, it is changing the allocation mix due to reflect the
expected increase in Oi's customers base (TMAR: 55%/Oi:
40%/Contax: 5%)

The remaining estimates were maintained, as follows:

- Fixed Lines in Service (2004 YE): around 15.1 million lines.
- Net Revenue 2004: real growth driven by wireless, long
distance and data services.
- Provisions for Doubtful Accounts: around 3% of gross revenues
in 2004.
- EBITDA 2004: consolidated margin of approximately 43%.

CONTACT:  TNL - Investor Relations (IR Team)
          invest@telemar.com.br
          Tel: 55(21) 3131-1314/1313/1315/1316/1317

          Global Consulting Group
          Kevin Kirkeby
          kkirkeby@hfgcg.com
          Tel: 1(646) 284-9416



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

INVERLINK: US$20M in Stolen Funds Retrieved by Corfo
----------------------------------------------------
Business News Americas reveals that the ongoing drive to
retrieve stolen funds in the case of defunct financial group
Inverlink has so far resulted in the recovery of US$20 million,
according to Oscar Landerretche, vice president of Chile's
eceonomic development agency Corfo.

Out-of-court settlements, says Mr. Landerretche, account for
US$12 million of the total funds recovered, with liquidated
assets of Inverlink companies taking up the remaining US$8
million.

Corfo is the lead agency in the investigation of the Inverlink
affair, which is considered as the biggest financial scandal in
the history of Chile. The case, which greatly contributed to
Inverlink's collapse last year, stemmed from the theft of tens
of millions of dollars of Corfo deposits as well as fraud at the
country's central bank. The Chilean agency had said that the
theft could only have been made possible by the participation
and/or collaboration of Inverlink officials and agents from the
local stock exchange.

Earlier this month, the Chilean agency reached an out-of-court
settlement with Canada's Scotiabank, which agreed to pay Corfo a
total of CLP3 billion in relation to alleged illegal
transactions between Inverlink and the Canadian bank's Chilean
stock brokerage unit. Corfo also made a separate deal with US-
based Pine Bank in March, whose executive Alberto Colon
allegedly entered into illegal dealings with Inverlink.


MADECO: Expects Recovery Next Year
----------------------------------
Chilean firm Madeco has expressed optimism that with the country
experiencing economic growth, the company will improve its
results this year and consolidate its position in 2005,
according to a report by local daily Estrategia.

Though it ended last year with losses of CLP16.73 billion, the
company expects that rising demand would help them increase
their sales in 2004. In line with its expectations, the company
is now seeking to cut costs to improve its performance.

An aluminum-based products manufacturer, Madeco specializes in
making wire cables, sheet metal and tubes.


PARMALAT CHILE: Bethia Holding Wins Bid-Report
----------------------------------------------
For a payment of US$15 million and the assumption of Parmalat
Chile's US$51 million debt, Chilean investment holding Bethia
Inversiones has snagged the deal to purchase the assets of the
Chilean unit of collapsed Italian dairy giant Parmalat
Finanziaria, Dow Jones says, citing a report by local newspaper
El Mercurio.

The Mercurio report added that Chilean bank Banco Bice
supervised the bidding process, and a final deal is subject to
approval from the Italian agriculture ministry.

Bethia had already been negotiating with Parmalat for months not
only for Parmalat Chile's assets, but also those of other
markets in Latin America including Uruguay.



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

PETROECUADOR: President Resigns to Pave Way for Restructuring
-------------------------------------------------------------
Pedro Espin, the president of Ecuador's state oil company
Petroecuador, submitted his resignation Wednesday as part of
Ecuadorian President Lucio Gutierrez's broad plan to restructure
the company in order to boost production and improve efficiency.

Business News Americas reports that Mr. Espin has been unable to
reverse the company's declining crude output since replacing
Guillermo Rosero, who did not fall into line with president
Guti‚rrez's moves to open the sector to greater private sector
participation last June. Output stands at about 196,000 barrels
of crude per day, down from 210,000 per day when the government
took office in January 2003.

Mr. Espin will continue to act as president until a replacement
is appointed. The Ecuadorian press has reported that energy
minister Eduardo L˘pez wants to replace Mr. Espin with Luis
Camacho, who recently resigned as the legal representative of
Brazil's federal energy provider Petrobras in Ecuador.



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

BANCO SALVADORENO: S&P Affirms Ratings Affirmed; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Rating Services said Thursday that it affirmed
its 'BB/B' counterparty credit and CD ratings on Banco
Salvadoreno S.A. The outlook is stable.

"The affirmation is based on Salvadoreno's stable performance
during the past two years, and expectations that both its
financial and business position should maintain similar
performance," said Standard & Poor's credit analyst Angelica
Bala.

During the past two years, the bank has been able to maintain
ROA at 1%, despite the stagnant lending environment in the
country and tightening interest margins. This has been achieved
by increasing fees and commission revenue base, a strategy
followed by the system in general and where banks still have
room to grow. Another opportunity area for the bank to maintain
profitability levels is efficiency, an area the bank is already
working on. These opportunities should allow the bank to
maintain its profitability levels in coming years, despite
moderate expectations of a vigorous rebound in lending
activities in the medium term. Internally generated funds have
been sufficient to cover high dividend payouts and have
supported capital growth to comply and even surpass increasing
regulatory capitalization levels. Regulatory capitalization at
December 2003 was 12.6%, and an adjusted capital-to-assets ratio
of 8.6% is considered adequate.

The stable outlook reflects Standard & Poor's opinion that the
bank's strategies and adequate operations should maintain
profitability at good levels in a stable economic environment.
An economic downturn or the continuation of low growth prospects
of the Salvadorian economy, however, could affect the bank's
overall performance, putting pressure on the rating.

ANALYSTS:  Angelica Bala, Mexico City (52) 55-5081-4405
           David Olivares, Mexico City (52) 55-5081-4406



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

* Jamaica Reopens Global Bond Issue; New Bonds Rated 'B'
--------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it
assigned its 'B' long-term foreign currency unsecured bond
rating to the US$125 million increase to Jamaica's US$300
million Global Bond first launched on June 17, 2002. The US$425
million in bonds now outstanding under this program mature in
June 20, 2017, and carry a fixed coupon rate of 10.625%.

The rating is constrained by a high government debt burden (145%
of GDP in 2003) and the resulting limited fiscal flexibility,
significant external vulnerability, and difficulty in reforming
the tax system.

Factors supporting the rating include a more stable political
environment than found in many of Jamaica's rated peers and a
strengthened financial sector that benefited from a
restructuring completed in 2002.

ANALYSTS: Jane Eddy, New York (1) 212-438-7996
          Joydeep Mukherji, New York (1) 212-438-7351



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

AHMSA: New CEO Bares Strategy
-----------------------------
In a statement to the Mexico stock exchange, Mexican steelmaker
Altos Hornos de M‚xico (Ahmsa) announced that its newly-
appointed chief executive has already launched a program in line
with his immediate goal of reaching an agreement with the
company's creditors on its US$1.8 billion in defaulted debt,
Business News Americas relates.

Ahmsa CEO William Bricker said, "We have immediately kicked off
a program to improve profit margins to lower costs and get
better primary materials [in terms of both quality and costs]."
Part of Mr. Bricker's plan is the company's investing in iron
and coal mining to boost the availability of input material. His
medium-term goals, on the other hand, include the application of
programs which would allow capacity expansion, the company said
in its statement. It added that once the company restructures
its debt, the CEO's long term-plans will then come into play.

At present, Ahmsa is working at high capacity and is placing
orders through the second half of 2004. The company said it will
also report "a positive level" in its Ebitda for the first
quarter this year.


COPAMEX: Fitch Removes Ratings from Rating Watch Negative
---------------------------------------------------------
Fitch Ratings has removed Copamex, S.A. de C.V.'s (Copamex)
senior unsecured foreign and local currency ratings as well as
the rating on the senior notes 11.375% due April 30, 2004 from
Rating Watch Negative. Fitch has affirmed these ratings at 'BB-
'. Fitch has also affirmed Copamex's national scale rating at
'A-' (mex), and the short term rating at 'F2' (mex) and has
assigned 'A' (mex) to the local 'certificados' issuances of
Copamex 01, Copamex 02 and Copamex 02-2, which incorporates a
15% partial guarantee of the principal by the FMO. The Rating
Outlook for all of the above is Stable.

The rating action is the result of the successful completion of
Copamex's financial plan to reduce debt and refinance the senior
notes. The plan included a credit facility totaling US$175
million from the International Finance Corporation (IFC)
consisting of a US$50 million 'A' loan directly from the IFC, a
US$100 million 'B' loan syndicated among a group of banks and a
US$25 million quasi-equity 'C' loan structure directly from the
IFC. The plan also included the sale for US$100 million of a
49.99% stake in Copamex's consumer products division to SCA
Hygiene Products AB (SCA), a Swedish company and Copamex's
partner in feminine hygiene products. Proceeds from these
transactions have all been collected into an escrow account, and
payment on the US$146 million outstanding on the senior notes is
expected tomorrow as scheduled. The refinancing plan also
included the replacement of certain warranties issued by
Copamex's subsidiaries with a partial guaranty from the IFC on
15% of the principal outstanding on Copamex's local notes
(certificados).

Total proceeds from these transactions of US$275 million will be
used as follows: US$146 million for the repayment of the senior
notes and most of the remaining for the reduction of debt.
Copamex expects to bring total debt down from US$459 million at
Dec. 31, 2003 to approximately US$320 million by the end of May.
On a pro forma basis with 2003 results, Fitch estimates an
improvement in the EBITDA to total debt ratio to 3.5 times (x)
from 5x in 2003 and in the interest coverage ratio to 2.8x from
1.7x in 2003.

Copamex is one of Mexico's largest producers of paper-based
consumer and industrial products, with revenues of US$763
million in 2003. The company participates in three major paper-
product segments: packaging (kraft paper, corrugated boxes and
specialty paper), printing and writing paper (bond and copy
paper) and consumer products (tissue, feminine hygiene and
diapers).

CONTACT:  Giovanna Caccialanza, CFA +1-212-908-0898, New York
          Sergio Rodriguez, CFA +528-18-335-7179, Monterrey

MEDIA RELATIONS: James Jockle +1-212-908-0547, New York


GRUPO IUSACELL: Reduces Net Loss in 1Q04
----------------------------------------
Grupo Iusacell, S.A. de C.V. (NYSE: CEL; BMV) (Iusacell or the
Company) announced Wednesday unaudited financial results for the
first quarter ended March 31, 2004(1).

Financial Results

Revenue in the quarter increased 2% from the previous quarter to
MXN1,326 million, and 8% from the first quarter in 2003 as a
result of higher handset sales, more effective advertising
campaigns and also due to the good acceptance of the renewed
product offerings. As of March 31, 2004, subscribers totaled
approximately 1.3 million.

Cost of sales in the first quarter of 2004 decreased 2% from the
previous quarter to MXN855 million. However, this item increased
95% from the first quarter in 2003 mainly driven by the policy
adopted in the third quarter of 2003 of expensing the postpaid
handset-related costs rather than amortizing them within the
average life of the postpaid contracts.

Operating expenses: sales and advertising expenses in the
quarter decreased 38% from the previous quarter to MXN269
million and 5% from the first quarter in 2003, mainly driven by
lower advertising expense. General and administrative expenses
decreased 56% from the previous quarter to MXN70 million and 22%
from the year ago period as a result of the implementation of
new cost reducing measures.

EBITDA(2) increased to a positive figure of MXN228 million, from
a negative amount of Ps$74 million in the previous quarter, but
decreased 45% from the first quarter in 2003 affected by the
increase in the cost of sales, driven mainly by the cost of
handsets under the related adopted accounting policy.

Depreciation and amortization at MXN496 million in the first
quarter of 2004 reflected the Company's decision, adopted during
2003, of expensing the postpaid handset-related costs rather
than amortizing them within the average life of the postpaid
contracts.

Operating loss in the first quarter decreased to MXN268 million
from MXN576 million recorded in the previous quarter and
increased 14% from the first quarter in 2003, mainly driven by
the increased in cost of sales.

Integral financing cost in the first quarter decreased to MXN22
million from MXN276 million in the previous quarter and MXN448
million in the same quarter of 2003. The result was mainly
driven by an exchange gain of $52 million.

Net loss in the quarter amounted to MXN346 million. This
compares with a net loss of MXN1,340 million in the previous
quarter and MXN725 million in the first quarter of 2003.

Capital expenditures: Iusacell invested approximately US$8
million in its different coverage regions during this quarter to
expand coverage.

Reconciliation between Net Loss and EBITDA
(Figures in million of constant

     March 31, 2004 pesos)                1Q04           1Q03

      Net loss for the period             (346)          (725)
    Plus (less) the following items:
      Depreciation and amortization       496            652
      Integral financing cost              22            448
      Taxes                                55             26

      Minority interest                     0             (3)
      Equity in earnings of subsidiaries    0             18
    Reported EBITDA for the period        228            416


Recent Developments

Towers sale and-lease-back in the quarter, the Company sold and
leased back 46 towers to MATC for approximately MXN95 million of
net income, proceeds were completely reinvested in the operation
of the company.

Iusacell signed a contract with Unefon: Iusacell signed a
contract with Operadora Unefon S.A. of C.V. for the mutual
service procurement of capacity, based on traffic in the network
of each one of the parts, being limited to a specific coverage.

It is of our Knowledge that the agreement is still to be
approved by Unefon's Board.

Iusacell reached an agreement with Telefonica on Short Message
Service (SMS): on February 12, 2004, Iusacell and Telefonica
Moviles Mexico (Telefonica) announced an agreement by which all
subscribers of these companies will be able to send and receive
SMS among them. The service became operative on February 15,
2004.

Lawsuit by the 2004 Note holders: In January 2004, certain
holders of the Senior Notes due 2004, which were issued by the
Company's principal subsidiary, Grupo Iusacell Celular, S.A. de
C.V. ("Iusacell Celular"), filed a lawsuit against Iusacell
Celular and others, alleging breach of the Senior Note
Indenture. Iusacell Celular moved to dismiss the portion of the
complaint that requested the court to declare that the holders
are entitled to the benefit of liens senior to or at least equal
in priority to liens held by the Company's other creditors.

In response to the motion to dismiss, the holders filed an
amended complaint and now also seek injunctive relief barring
Iusacell Celular and certain of its subsidiaries from selling,
transferring or otherwise encumbering their assets pending
decision on the merits of the holders' claim for specific
performance. The time in which to respond to the request for an
injunction has not yet expired. Iusacell Celular and the
subsidiaries will respond to request for injunctive relief in
due course.

Shareholders Meeting and Resolution: On April 28, 2004, the
Company held a general annual ordinary shareholder's meeting by
which its shareholders approved, among other things, the 2003
audited financial results and elected a new Board of Directors,
which is now comprised of eight members instead of nine.

The following table presents the members of the Board of
Directors of Grupo Iusacell, S.A. de C.V as of April 28, 2004:

Board of Directors
Ricardo B. Salinas Pliego         Chairman of the Board of
                                     Directors
Pedro Padilla Longoria            Vice Chairman of the Board of
                                     Directors
Gustavo Guzman Sepulveda          Director
Luis Jorge Echarte Fernandez      Director
Joaquin Arrangoiz Orvananos       Director
Gonzalo Brockmann Garcia          Director
Marcelino Gomez Velasco           Director
Manuel Rodriguez de Castro        Director

To see financial statements:
http://bankrupt.com/misc/Grupo_Iusacell.txt


GRUPO TFM: Reports Lower Net Revenues in 1Q04
--------------------------------------------
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and its
subsidiaries ("TFM") reported financial results for the first-
quarter period of 2004.

OPERATIONAL RESULTS

Consolidated net revenues for the three months ended March 31,
2004, were $167.5 million, which represents a decrease of $1.0
million or 0.6 percent from revenues of $168.5 million for the
same period in 2003. TFM experienced a 0.4 percent decrease in
volume during the first quarter of 2004 compared with the same
period of 2003, caused by the economic downturn and the seasonal
shut down of the automotive industry at the beginning of the
year. The 1.8 percent devaluation of the peso and the lower
activity in the automotive industry translated into a $ 3.2
million deterioration of revenue in the first quarter of 2004
compared with the same period in 2003, partially offset by
growth in revenues from truck-to-rail conversion and growth in
the Chemicals and Petrochemicals and Metals and Minerals
segments.

Consolidated operating profit for the first quarter of 2004 was
$25.8 million, representing a decrease of $2.1 million from the
first quarter of 2003. The operating ratio (operating expenses
as a percentage of revenues) for the period was 84.6 percent
including Mexrail operations (81.7 percent without Mexrail).
Operating expenses continued to decrease during the first
quarter compared with the same period in 2003. Cost reduction in
the first quarter of 2004, excluding fuel and Tex Mex, was $2.6
million, and was negatively impacted by a 13.8 percent, or $1.9
million, increase in fuel cost.

Operating loss for Mexrail for the first quarter of 2004 was $
1.8 million. Operating expenses for the unit increased during
the quarter, compared with the same period of 2003, by $1.0
million, or 7.1 percent.

FINANCIAL EXPENSE

Net financial expenses incurred in the quarter ended March 31,
2004, were $27.9 million. TFM recognized a $0.1 million foreign
exchange loss resulting from the depreciation of the Mexican
peso relative to the U.S. dollar.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2004, the accounts receivable balance had
increased to $202.1 million from $192.3 million at December 31,
2003.

TFM made capital expenditures of $11.6 million during the first
quarter of 2004, invested in the improvement of TFM and Mexrail
lines.

As of March 31, 2004, TFM had an outstanding debt balance of
$959.6 million, a leverage of $8.4 million lower than at
December 31st, 2003. Debt includes $95.0 million of outstanding
U.S. commercial paper and a term loan of $91.4 million.

RECENT EVENTS

Vat Lawsuit

On September 25, 2002, the Mexican Magistrates Court of the
First District (the "Federal Court") issued a judgment in favor
of TFM on a value added tax (VAT) claim, which has been pending
in the Mexican courts since 1997. The claim arose out of the
Mexican Treasury's delivery of a VAT refund certificate to a
Mexican governmental agency rather than to TFM. By a unanimous
decision, the Federal Court vacated a prior judgment of the
Mexican Federal Tribunal of Fiscal and Administrative Justice
(the "Fiscal Court") and remanded the case to the Fiscal Court
with specific instructions to enter a new decision consistent
with the guidance provided by the Federal Court's ruling. The
Federal Court's ruling requires the fiscal authorities to issue
the VAT refund certificate only in the name of TFM. On December
6, 2002, the upper chamber of the Fiscal Court again ruled
against TFM. On January 8, 2003, TFM was officially notified of
the new judgment of the Fiscal Court and on January 29, 2003,
filed the appropriate appeal. On June 11, 2003, the Federal
Court issued a judgment in favor of TFM against the ruling of
the Fiscal Court. On July 9, 2003, TFM was formally notified by
a three-judge panel of the Federal Court of its June 11, 2003,
judgment, which granted TFM constitutional protection (amparo)
against the ruling of the Fiscal Court issued on December 6,
2002, which had denied TFM the right to receive the VAT refund
certificate. The Federal Court found that the VAT refund
certificate had not been delivered to TFM, and confirmed the
Fiscal Court's determination that TFM has the right to receive
the VAT refund certificate. The Federal Court's ruling stated
that the Treasury's decision denying delivery of the VAT refund
certificate to TFM violated the law, and it instructed that the
VAT refund certificate be issued to TFM on the terms established
by Article 22 of the Federal Fiscal Code in effect at that time.
As a result of this ruling, the case was remanded to the Fiscal
Court.

In a public session held on August 13, 2003, the Fiscal Court
issued a resolution regarding TFM's VAT lawsuit vacating its
previous resolution of December 6, 2002, and in strict
compliance with the ruling issued on June 11, 2003, by the
Federal Court, resolved that TFM had proved its case, and that a
"ficta denial" occurred, declaring such denial null and void as
ordered by the Federal Court. On August 25, 2003, TFM was
formally notified by the Fiscal Court of its resolution
regarding TFM's VAT lawsuit. The resolution was the result of
the unanimous vote of the nine magistrates present at the public
session. The Fiscal Court ordered the issuance of the VAT
Certificate to TFM under the terms established by Article 22 of
the Mexican Fiscal Code in effect in 1997.

On October 13, 2003, the Mexican Tax Attorney of the Federal
Government (Procuraduria Fiscal de la Federacion) filed for a
review of the Fiscal Court's ruling issued on August 13, 2003.
On November 5, 2003, the Federal Court found no merit to the
requested review, and as a result, the August 13, 2003, Fiscal
Court's ruling remained in place.

On January 19, 2004, the Mexican Treasury delivered to TFM,
pursuant to the August 13, 2003, Fiscal Court ruling, a Special
VAT Certificate representing the historical claim amount of
2,111,111,790 pesos, or approximately $195 million as of that
date, but excluding additional amounts due to TFM from the
effect of inflation and interest accrued on the original claim
amount. On January 20, 2004, the Mexican Fiscal Administration
Service ("Servicio de Administracion Tributaria" or "SAT")
placed an attachment prohibiting TFM from making use of the
Special VAT Certificate, stating that the documents that support
the value of the Special VAT Certificate do not comply with
applicable tax requirements. TFM has publicly stated it will
oppose the SAT's action through all possible legal means, and
will continue its attempts to reclaim the additional amount
required for inflation and accrued interest on the original
claim amount.

TFM subsequently presented a complaint before the upper chamber
of the Fiscal Court. The Company has not yet received an
official decision, but has knowledge that the Fiscal Court voted
against the Company's request to compel the government to
reissue its Special Certificate to include inflation and accrued
interest. In the next several weeks, the Company will bring to
the Magistrates Federal Court, which is the highest authority on
legal matters in Mexico, all proper petitions and protections,
which support its rights and are consistent with the rulings of
the federal Magistrates Court over the past year. Grupo TMM
believes that TFM's claim to have the VAT certificate updated
for interest and inflation accruals will be upheld by Mexico's
legal system.

Net profit in the period was impacted by extraordinary one-time
charges in connection with the VAT lawsuit totaling $4.3
million.

Grupo TFM Put

As previously stated, in 2003 Grupo TFM requested a federal
judge in Mexico to provide interpretation of the Purchase-Sale
Agreement of TFM's common stock, requesting adherence to the
specific process provided in the Agreement and its Amendments,
which should commence with an Initial Public Offering ("IPO") of
TFM's shares into the public markets for the exercising of Grupo
TFM's call and the Mexican government's Put option for the 20
percent equity interest in TFM it retains.

Given that none of the steps of this process had been completed,
because the real value of the shares of TFM owned by the
government could not be determined since TFM had not received
reimbursement of the Value Added Tax, although ordered by the
Mexican Fiscal Court on August 13, 2003, there could be no
condition that applies in order for the Mexican government to
request that Grupo TFM, or its shareholders, acquire the equity
stake held at TFM by the government.

Grupo TFM also asked for and received from a federal judge an
injunction, which blocked the government from exercising its Put
option. The ability of the Mexican government to exercise its
Put option has been suspended indefinitely until the Put lawsuit
is resolved.

Grupo TFM acknowledged its commitment to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its desire to comply once the pending
steps from the original Agreement are completed, which should
occur after the VAT claim has been reimbursed to TFM according
to the provisions of the law to determine the real value of the
shares.

DEBT COVENANTS

The Company is currently negotiating with its lenders amendments
to the term loan and is also in the process of refinancing its
Commercial Paper program to extend the final maturity date to
September 2006.

To see financial statements:
http://bankrupt.com/misc/Grupo_TFM.txt


GRUPO TMM: Revenues Improve in 1Q04
-----------------------------------
Grupo TMM, S.A. (NYSE:TMM and BMV:TMM A; "TMM"), a Latin
American, multi-modal transportation and logistics company and
owner of the controlling interest in Mexico's busiest railway,
TFM, reported revenues from consolidated operations of $218.5
million for the first quarter of 2004, compared to revenues from
consolidated operations of $219.2 million for the same period of
2003. Improved revenue was reported at Specialized Maritime and
Logistics. Grupo TMM's first quarter 2004 consolidated operating
income decreased $1.3 million, from $27.1 million in 2003 to
$25.7 million in 2004, and net profit for the quarter improved
from the same period of last year by $18.5 million, allowing the
Company to post a loss of $9.1 million, or $.16 per share.
Selling, general and administrative costs in the first quarter
of 2004 include $0.5 million of restructuring charges and
severance payments.

The Company benefited from a resumption of trade growth on the
NAFTA corridor. Trade grew 11.0 percent during the first quarter
compared to the prior year. This growth was reflected in an
increase in the Company's volumes and revenues, beginning in
March, compared to last year. Trade growth is expected to
continue and is already being seen in the Company's April
volumes and revenues. Overall results for TFM, Ports and
Logistics continue to be negatively impacted by the sluggish
auto sector. Compared with the same period of 2003, auto
production in Mexico at TFM plant sites was 13.0 percent lower,
auto exports were 13.0 percent lower and imports were 1.0
percent higher. While non-auto related product categories grew
by 3.3 percent in volume and by 7.1 percent in revenue in the
first quarter of 2004, volume and revenue in automobile and
auto-related intermodal was lower than in the same period of
last year (5.2 percent in volume and 8.2 percent in revenue).

At TFM, the Company's rail subsidiary, first quarter 2004 non-
auto related revenue was positively impacted by $7.8 million due
to trade growth and intra-Mexican expansion during the last part
of the quarter. Additionally TFM produced significant truck-to-
rail conversion revenues of $7.0 million in all rail product
lines during the quarter. Operating profit was impacted in the
period by reduced revenue in the automotive sector, which is
expected to begin its recovery in the third and fourth quarters
of 2004 based upon various auto company projections. At TFM,
without TexMex, first quarter 2004 operating ratio was 81.7
percent, but March's operating ratio was 74.3 percent,
reflecting improved trade growth. Likewise, operating profit was
$25.8 million for the quarter and $14.9 million in March.
Anticipated trade growth in 2004 could result in improved
operating ratios and EBITDA for all of 2004.

The rail division continues to forecast revenue and EBITDA
growth of 10.0 percent and 15.0 percent respectively for the
full year of 2004. Chemical transload, agricultural cross-dock
facilities and new intermodal terminals are now fully
operational. Additionally, TFM anticipates improved revenues in
2004 from continued truck-to-rail conversion, expansion of
domestic auto distribution, auto parts expansion, and overall
growth in trade on the NAFTA corridor. The division expects the
automobile sector to begin producing growth during the latter
part of the year.

TFM continues to work with its banks for the completion of the
refinancing of its U.S. Commercial Paper facility maturing in
September 2004, through a proposal to merge the U.S. Commercial
Paper program with the term loan, with a final maturity in
September 2006.

The remaining business units of TMM produced increased revenues
of 1.9 percent in the first quarter of 2004 over the same period
of 2003. In the same period-over-period comparison, gross profit
increased by 18.7 percent. Costs increased in the period due to
additional equipment in Logistics' intermodal operations, and in
Specialized Maritime's parcel tankers and supply ship business.

At Specialized Maritime, first quarter revenue improved over the
prior-year period by $1.1 million, or 4.1 percent, and was
primarily affected by continued increased offshore activity
associated with supply ships for PEMEX, as well as a 24.0
percent increase in transport volume of petrochemical products.
Gross profit and operating profit for the division improved
substantially, and operating margin increased by 6.2 percentage
points. Chemical parcel tanker revenue in the first quarter of
2004 improved by 25.3 percent over the same period of 2003. In
the same period-over-period comparison, gross results improved
by 83.3 percent, despite an increase in costs of $1.3 million
associated with an additional leased vessel. In the first
quarter of 2004 over the first quarter of 2003, tugboat revenue
increased by 6.2 percent, and gross results by 20.3 percent, as
vessel calls increased at the port of Manzanillo.

Despite sluggish automotive activity, revenues at TMM's
Logistics division increased by 3.1 percent in the first quarter
of 2004 compared to the same period of 2003 due to improved
trade balance with the United States at intermodal operations
and from increased long-haul traffic in the dedicated truck
services division. Gross and operating profits improved
substantially, and operating margin increased by 1.5 percentage
points, and could have improved much more with strong auto
activity.

In the Ports and Terminals division, revenue, gross profit and
operating profit decreased during the first quarter of 2004
primarily due to reduced passenger vessel calls, offset by one-
time export operations from Volkswagen and Chrysler at the Port
of Acapulco.

Javier Segovia, president of TMM, said, "While January and part
of February were difficult for us in terms of traffic and
activities across all business units, the second half of
February and March showed much stronger performance. Overall
trade growth in Mexico was 11 percent in the first quarter of
this year compared to 4.9 percent in the first quarter of 2003,
and it appears that Mexico and NAFTA are now climbing out of the
recession. We are optimistic that the positive momentum we
experienced in the second part of the first quarter will
continue throughout this year and will provide momentum for
improving results for TMM in 2004.

"Strategically, the company continues to be focused on three
major issues. The SEC is currently reviewing our F-4 filing for
the bond exchange, and once that is completed the exchange offer
will get underway. At present, bondholders owning 69% of all of
the existing notes are supporting the proposed exchange offer.

"Additionally," Mr. Segovia continued, "we continue to work with
Kansas City Southern to resolve issues concerning the
Acquisition Agreement for submission to shareholders for their
approval.

"Finally, we believe that matters concerning the VAT Lawsuit and
Grupo TFM Put can and will be resolved. Our discussions with the
government continue on both of these subjects, and we will
continue to stand firm representing the interests of all of our
stakeholders. "

Mr. Segovia concluded, "Accelerating trade and improving
conditions in both the Mexican and U.S. economies are leading
indicators for the health of the NAFTA corridor. We have seen
clear signs of operational progress and market growth in the
latter part of the first quarter and in the month of April. We
remain well-positioned through our assets to take advantage of
that growth and market expansion."

ARBITRATION PROCEEDINGS
As announced previously, on October 22, 2003, a Delaware Court
granted a preliminary injunction requiring Kansas City Southern
(KCS) and TMM to continue to abide by the terms of an
acquisition agreement for Grupo TFM announced on April 22, 2003,
pending arbitration of the propriety of TMM's termination of
that agreement.

In February, a three-day arbitration hearing concluded. In March
the three-member panel in the arbitration proceeding deliberated
on only one narrowly defined question related to termination
terms and concluded, in an interim award, that the rejection of
the Acquisition Agreement by TMM's shareholders in its vote on
August 18, 2003, did not authorize the Company to terminate the
April 2003 Acquisition Agreement with KCS. Accordingly, the
three-member panel indicated the Agreement would remain in force
and binding on the parties until otherwise terminated according
to its terms or by law. In reaching the conclusion, the panel
found it unnecessary to determine whether approval by TMM's
shareholders is a "condition" of the Agreement. TMM continues to
believe that any transaction cannot occur without approval of
the Company's shareholders, and the panel's decision did not
reach a conclusion on that issue.

In April, in a joint release, TMM and KCS agreed to not
immediately move into the next phases of arbitration, but both
companies did reserve the right to proceed with the next phase
of arbitration at any time. In a stipulation signed by TMM and
KCS and accepted by the arbitration panel, the two companies
have agreed to discharge in good faith all of the obligations of
the Acquisition Agreement signed April 20, 2003. The two
companies continue to communicate and to address issues of
concern in good faith.

RESTRUCTURING UPDATE

As previously announced, the Company reached an agreement on the
principal terms of a restructuring with an ad hoc committee of
bondholders representing approximately 69 percent of its 9 1/2
percent Senior Notes due 2003 and its 10 1/4 percent Senior
Notes due 2006 (Existing Notes). In order to implement the
restructuring as outlined in the voting agreements, TMM has
filed a registration statement on Form F-4 with the Securities
and Exchange Commission (SEC) relating to a registered exchange
offer of new senior secured notes (New Secured Notes) for the
Existing Notes, together with a consent solicitation and
prepackaged plan solicitation. TMM expects to commence the
exchange offer and the solicitation after the SEC completes its
review of the registration statement, which it currently
anticipates will occur during May 2004.

VAT LAWSUIT

On September 25, 2002, the Mexican Magistrates Court of the
First District (the "Federal Court") issued a judgment in favor
of TFM on a value added tax (VAT) claim, which has been pending
in the Mexican courts since 1997. The claim arose out of the
Mexican Treasury's delivery of a VAT refund certificate to a
Mexican governmental agency rather than to TFM. By a unanimous
decision, the Federal Court vacated a prior judgment of the
Mexican Federal Tribunal of Fiscal and Administrative Justice
(the "Fiscal Court") and remanded the case to the Fiscal Court
with specific instructions to enter a new decision consistent
with the guidance provided by the Federal Court's ruling. The
Federal Court's ruling requires the fiscal authorities to issue
the VAT refund certificate only in the name of TFM. On December
6, 2002, the upper chamber of the Fiscal Court again ruled
against TFM. On January 8, 2003, TFM was officially notified of
the new judgment of the Fiscal Court and on January 29, 2003,
filed the appropriate appeal. On June 11, 2003 the Federal Court
issued a judgment in favor of TFM against the ruling of the
Fiscal Court. On July 9, 2003, TFM was formally notified by a
three-judge panel of the Federal Court of its June 11, 2003,
judgment, which granted TFM constitutional protection (amparo)
against the ruling of the Fiscal Court issued on December 6,
2002, which had denied TFM the right to receive the VAT refund
certificate. The Federal Court found that the VAT refund
certificate had not been delivered to TFM, and confirmed the
Fiscal Court's determination that TFM has the right to receive
the VAT refund certificate. The Federal Court's ruling stated
that the Treasury's decision denying delivery of the VAT refund
certificate to TFM violated the law, and it instructed that the
VAT refund certificate be issued to TFM on the terms established
by Article 22 of the Federal Fiscal Code in effect at that time.
As a result of this ruling, the case was remanded to the Fiscal
Court.

In a public session held on August 13, 2003, the Fiscal Court
issued a resolution regarding TFM's VAT lawsuit vacating its
previous resolution of December 6, 2002, and in strict
compliance with the ruling issued on June 11, 2003, by the
Federal Court, resolved that TFM had proved its case, and that a
"ficta denial" occurred, declaring such denial null and void as
ordered by the Federal Court. On August 25, 2003, TFM was
formally notified by the Fiscal Court of its resolution
regarding TFM's VAT lawsuit. The resolution was the result of
the unanimous vote of the nine magistrates present at the public
session. The Fiscal Court ordered the issuance of the VAT
Certificate to TFM under the terms established by Article 22 of
the Mexican Fiscal Code in effect in 1997.

On October 13, 2003, the Mexican Tax Attorney of the Federal
Government (Procuraduria Fiscal de la Federacion) filed for a
review of the Fiscal Court's ruling issued on August 13, 2003.
On November 5, 2003, the Federal Court found no merit to the
requested review, and as a result, the August 13, 2003, Fiscal
Court's ruling remained in place.

On January 19, 2004, the Mexican Treasury delivered to TFM,
pursuant to the August 13, 2003, Fiscal Court ruling, a Special
VAT Certificate representing the historical claim amount of
2,111,111,790 pesos, or approximately $195 million as of that
date, but excluding additional amounts due to TFM from the
effect of inflation and interest accrued on the original claim
amount. On January 20, 2004, the Mexican Fiscal Administration
Service ("Servicio de Administracion Tributaria" or "SAT")
placed an attachment prohibiting TFM from making use of the
Special VAT Certificate, stating that the documents that support
the value of the Special VAT Certificate do not comply with
applicable tax requirements. TFM has publicly stated it will
oppose the SAT's action through all possible legal means, and
will continue its attempts to reclaim the additional amount
required for inflation and accrued interest on the original
claim amount.

TFM subsequently presented a complaint before the upper chamber
of the Fiscal Court. The Company has not yet received an
official decision, but has knowledge that the Fiscal Court voted
against the Company's request to compel the government to
reissue its Special Certificate to include inflation and accrued
interest. In the next several weeks, the Company will bring to
the Magistrates Federal Court, which is the highest authority on
legal matters in Mexico, all proper petitions and protections,
which support its rights and are consistent with the rulings of
the federal Magistrates Court over the past year. Grupo TMM
believes that TFM's claim to have the VAT certificate updated
for interest and inflation accruals will be upheld by Mexico's
legal system.

GRUPO TFM PUT

As previously stated, in 2003 Grupo TFM requested a federal
judge in Mexico to provide interpretation of the Purchase-Sale
Agreement of TFM's common stock, requesting adherence to the
specific process provided in the Agreement and its Amendments,
which should commence with an Initial Public Offering ("IPO") of
TFM's shares into the public markets for the exercising of Grupo
TFM's call and the Mexican government's Put option for the 20
percent equity interest in TFM it retains.

Given that none of the steps of this process had been completed,
because the real value of the shares of TFM owned by the
government could not be determined since TFM had not received
reimbursement of the Value Added Tax, although ordered by the
Mexican Fiscal Court on August 13, 2003, there could be no
condition that applies in order for the Mexican government to
request that Grupo TFM, or its shareholders, acquire the equity
stake held at TFM by the government.

Grupo TFM also asked for and received from a federal judge an
injunction, which blocked the government from exercising its Put
option. The ability of the Mexican government to exercise its
Put option has been suspended indefinitely until the Put lawsuit
is resolved.

Grupo TFM acknowledged its commitment to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its desire to comply once the pending
steps from the original Agreement are completed, which should
occur after the VAT claim has been reimbursed to TFM according
to the provisions of the law to determine the real value of the
shares.

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services. TMM also has a
significant interest in Transportacion Ferroviaria Mexicana
(TFM), which operates Mexico's Northeast railway and carries
over 40 percent of the country's rail cargo.

To see financial statements:
http://bankrupt.com/misc/Grupo_TMM.txt

CONTACT:  Grupo TMM, S.A.
          Juan Fernandez, Finance Director and Treasurer
          011-525-55-629-8778
          juan.fernandez@tmm.com.mx
                  or
          Brad Skinner, Senior Vice President
          Investor Relations
          011-525-55-629-8725 or 203-247-2420
          brad.skinner@tmm.com.mx
                  or
          Dresner Corporate Services
          (investors, analysts, media)
          Kristine Walczak, 312-726-3600
          kwalczak@dresnerco.com
                  or
          Proa/StructurA
          Marco Provencio, 011-525-55-629-8708 or
          011-525-55-442-4948
          mp@proa.structura.com.mx


HYLSAMEX: Rides Steel Price Hike to Boost Profits in 1Q04
----------------------------------------------------------
Robust demand for steel in Asia, particularly China, as well as
strong domestic demand allowed Mexican steelmaker Hylsamex to
reverse losses of US$35mn year-on-year to post a net profit of
US$63 Million for the first quarter this year, reports Business
News Americas.

Weak metal prices buffeted the company for years but it has seen
a turnaround in its fortunes as favorable conditions this
quarter raised revenues per ton by 19% from a year ago. Sales
volume grew 9% during the period to 788,000t while domestic
sales volume totaled 632,000t, a 20% increase from 1Q03.

Reuters, meanwhile, reported that Hylsamex's 's earnings before
interest, tax, depreciation and amortization) (EBITDA) spiked
120% to US$110 million, in line with the company's recently
raised forecast. The company said the increase in its EBITDA
allowed it to reduce net debt by $52 million to end the quarter
at $962 million.

Hylsamex's CPO series shares traded 4.54% lower at MXN14.51 in
afternoon trade following the earnings announcement.



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

MINERA VOLCAN: Posts Strong 1Q04 Performance
--------------------------------------------
Peruvian zinc mining company Volcan Compania Minera SAA (VCN.VL)
reported a first-quarter net income of PEN24.7 million
($1=PEN3.4815) compared with PEN448,000 in the same quarter a
year earlier, a jump the company attributes to higher revenues
in the most recent quarter, according to Dow Jones.

The company's total revenues were PEN192.1 million in the first
quarter, compared with PEN138.6 million in the same quarter of
2003.

The zinc mining operations of Volcan are located in the central
Andean regions of Junin and Pasco.


PAN AMERICAN: Debenture Conversion Offer Progressing Well
---------------------------------------------------------
(all amounts in US$ unless otherwise stated)

Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is making
good progress on the conversion of its 5.25% convertible
unsecured senior subordinated debentures due July 31, 2009 (the
"Debentures"). Pursuant to an offer made by the Company on April
7, 2004, holders of approximately $70.8 million of the $86.25
million outstanding principal amount of the Debentures have
converted their Debentures into common shares. The increase in
Pan American's common share price since the Debentures were
issued in July 2003 has facilitated the offer for early
conversion, allowing debenture holders to realize significant
gains on the underlying share price while allowing the Company
to materially reduce its long term debt. The conversion offer
remains open until May 21, 2004.

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
securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration of qualification
under the securities laws of any such state.


PAN AMERICAN: Repays Project Financing
--------------------------------------
(all amounts in US$ unless otherwise stated)

Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) reports that
it is fully prepaying two project related financings totaling
$13 million. To reduce future interest expenses, Pan American
has repaid the $3.5 million loan relating to the initial
development of the Huaron mine and has notified the
International Finance Corporation of its intention to prepay the
$9.5 million construction loan incurred to complete the
expansion of the La Colorada mine last year. The early repayment
of these loans will save Pan American approximately $500,000 in
annual net interest expense. The loan prepayments are being
funded from existing cash balances.

According to the Company's Chairman and CEO, Ross Beaty, "The
early conversion of the 5.25% convertible debentures due July
31, 2009 and the prepayment of these modest project loans
clearly improves our financial position. We are now almost debt
free with $120 million in cash, sufficient to purchase the
Morococha mine in Peru, build the Alamo Dorado project in Mexico
and complete the expansion of our Huaron mine in Peru. In
addition, we have two more projects in feasibility. All our
mines are now generating positive cash flow, which will fuel
continued growth. Pan American is in the best financial
condition it has ever been in while we continue to mature as the
world's pre-eminent primary silver producer."

CONTACT:  Brenda Radies, VP Corporate Relations
          (604) 684-1175
          Web site: http://www.panamericansilver.com



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

AES URUGUAIANA: Gas Supply Cuts Affect AES Unit
-----------------------------------------------
Earlier this week, Argentina suspended natural gas supply to
Brazil's Sulgas, a distributor in the southernmost state of Rio
Grande do Sul, Dow Jones reveals. Sulgas has an exclusive
contract with UTE Uruguaiana, a thermoelectric plant owned by
U.S. power group AES Corp. (AES).

Prior to the interruption, Sulgas was receiving 1.1 million
cubic meters of gas. Company director Ary de Marco said that
total Argentine gas supply in the past reached 2.2 million cubic
meters, but that amount had been recently cut by half as
Uruguaiana wasn't running at full capacity.

This development follows reductions in supply to Chile, which
has received 90% of Argentina's natural gas exports. The
Argentine government's measures have reduced Chile's daily
supply by 4.25 million cubic meters, or 20% of the original
amount supplied to the country.

Argentina's severe natural gas and power shortage has forced it
to impose a gas rationing scheme, part of efforts by the
government to ensure adequate energy supply for domestic
consumers - especially residential users - as the Southern
Hemisphere heads into the winter months.


ANCAP: Fights Creditors Over Cono Sur Loan
------------------------------------------
Attempts by Standard Bank London, BBV, Discount Bank LA and
Sudameris to collect a US$50 million loan granted at the end of
2002 to Ancap's subsidiary, Petrolera del Cono Sur, has forced
the company to file a complaint with an Argentinean court,
saying that the contract is in accordance with Argentinean laws.

Ancap, an Uruguayan state-owned oil company with a 60% stake in
Cono Sur, acted as guarantor to the loan, reports local news
daily El Pais.


PLUNA: Talks of Takeover Bid On Hold
-------------------------------------
Argentina's flag carrier Aerolineas Argentinas has frozen
negotiations to acquire Pluna, the Uruguayan flag carrier
controlled by Varig (Brazil), because of a lack of a positive
response from the company or the Uruguayan government, the
majority shareholder, says a report by local news daily El Pais.

The report adds that Aerolineas plans to create its own
independent airline should it fail to acquire the Uruguayan
airline.

This takeover bid comes in the wake of an open-sky agreement
signed by Uruguay and Chile, which is part of a wider trade
cooperation between the two countries.

Traffic between the two countries is estimated at 80,000
passengers yearly, the bulk of which is serviced by airlines
Lan, and Pluna. Pluna operates a total of seven aircraft and a
monthly turnover of US$6 million, 60% of which comes from the
Madrid - Sao Paulo route.



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

CANTV: Mobile Division Boosts 1Q 04 Performance
-----------------------------------------------
Solid subscriber growth in the postpaid and prepaid segments of
Movilnet, the mobile phone division of Venezuelan telephone
giant CA Nacional Telefonos de Venezuela (CANTV), has helped
boost the company's earnings to US$22 million in the first
quarter of 2004, compared with US$7 million in the same period
last year, reveals Dow Jones.

With Movilnet's customer base soaring to 2.8 million from
97,701, CANTV's revenues from mobile phone services rose 36% to
US$130 million, compared with US$96 million in the first quarter
of 2003. Internet subscriptions also showed a significant 68%
increase resulting in Internet revenues of US$12 million, up
from US$10 million in the year-ago period.

CANTV also posted a 2.5% growth in the number of its fixed phone
lines. The company said the increase was driven by the
implementation of a fixed wireless telephone service that
reaches previously unserved areas.

Despite the modest growth, revenue from fixed line services fell
4.1% to US$115 million in the quarter, compared with US$119
million in the same quarter of 2003. This decline was attributed
to low phone rates and a migration of postpaid clients to
cheaper prepaid services.


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

Copyright 2004.  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 written permission of the publishers.

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,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *