/raid1/www/Hosts/bankrupt/TCRLA_Public/040504.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Tuesday, May 4, 2004, Vol. 5, Issue 87

                            Headlines


A R G E N T I N A

ALBERTO CRISTAL: Court Declares Company Bankrupt
ARZEN CORPORATION: Court Sets Reports' Deadline
BANCO DE GALICIA: Problems Remain Following Restructuring
DIRECTV LA: OpenTV's Seeks $483,959 License Allowance
DISCO: Senate Heat is On for Cencosud Deal

DISTRIBUIDORA MORICE: Reorganization Converts to Bankruptcy
ELECE: Court Issues Bankruptcy Ruling
ESTABLECIMIENTOS OPRTICOS: Files for Bankruptcy
INDUSTRIA PLASTICA: Court Makes Bankruptcy Official
JM PRODUCCIONES: Receiver to Submit Individual Reports Aug 10

NEW MAQ'S: Court Sets Deadline for Submission of Reports
OGDEN-RURAL: SRA's Members Object to De Narvaez Sale
PETROBRAS ENERGIA: S&P Affirms Rating on Series R Notes
STOCK INDUSTRIAL: Ruled Bankrupt, Receiver Assignment Pending
TGS: Posts Over 50% Drop in 1Q04 Net Profit


B E R M U D A

GLOBAL CROSSING: Auditor Withdraws Reports
GLOBAL CROSSING: Grant Report Withdrawal Triggers Plunge
GLOBAL CROSSING: Geller Rudman, PLLC Files Class Action Lawsuit
GLOBAL CROSSING Abbey Gardy, LLP Commences Class Action Suit


B R A Z I L

CEMAR: PPL Completes Final Share Transfer
CERJ: NOI Up Despite Increased Power Losses 1Q04
CFLCL: Dispute over Dividend Payments Continues
PARMALAT BRAZIL: Jundiai Plant Production Halted
TELEMAR: Abandons Intelig Takeover Plans


C O L O M B I A

VALORES BAVARIA: Records COP17 Billion 1Q Net Loss


E C U A D O R

PACIFICTEL: Carriers Cut Out of Routing Loop


M E X I C O

DESC: Independent Auditors' Report Filed
EMPRESAS ICA: Cuts 1Q04 Net Loss
INNOVA: Parent Expected to Inject New Cash
LUZ Y FUERZA: Regulators Demand Improved Financial Standing
MAXCOM TELECOMUNICACIONES: Reports EBITDA of Ps$40.1Mln for 1Q04

UNEFON: Appoints Principal Executive Officers


U R U G U A Y

ABN AMRO BANK: Moody's Confirms Foreign Currency Deposit Ratings
BANCO A.C.A.C.: Moody's Ups National Scale Rating
BANCO DE LA NACION (URUGUAY): Moody's Ups Local Currency Rating
BANCO DE LA REPUBLICA ORIENTAL: Moody's Assigns Ratings
BANCO HIPOTECARIO (URUGUAY): Moody's Ratings Released

BANCO SANTANDER: Foreign Currency Deposit Ratings Confirmed
BANCO SURINVEST: Moody's Cuts LTFC Deposit Rating to Caa2
BANKBOSTON: Moody's Confirms Ratings
BBVA URUGUAY: S&P Affirms Ratings
CACDU: Fitch Withdraws Ratings

CITIBANK N.A.: S&P Affirms Ratings; Outlook Stable
DISCOUNT BANK: S&P Affirms Ratings
LLOYDS TSB (URUGUAY): Moody's Confirms Caa1 LTFC Deposit Rating


V E N E Z U E L A

SIDOR: Halts Shipments During Strike

     - - - - - - - - - -

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

ALBERTO CRISTAL: Court Declares Company Bankrupt
------------------------------------------------
Alberto Cristal S.R.L. entered bankruptcy based on on order from
Buenos Aires Court No. 26, reports local daily Infobae. Working
with Clerk No. 52, the court assigned Mr. Ricardo Bonifatti as
receiver. He will verify creditors' claims until June 16, 2004.

Creditors who fail to have their claims validated before the
deadline will be disqualified from receiving any payments to be
made after the Company's assets are liquidated.

The individual reports, which are due on August 17, 2004, are to
be prepared upon completion of the verification process. The
court also requires the receiver to prepare a general report and
file it on September 28, 2004. This report contains a summary of
the individual reports' results.

CONTACT:  Alberto Cristal S.R.L.
          Ricardo Trelles 1086
          Buenos Aires

          Ricardo Bonifatti, Receiver
          Av Corrientes 123
          Buenos Aires


ARZEN CORPORATION: Court Sets Reports' Deadline
-----------------------------------------------
Buenos Aires Court No. 3 ordered Mr. Fabian Marcelo Zandperl,
the receiver tasked to oversee the bankruptcy proceedings of
Arzen Corporation S.A., to submit the individual reports to
court on August 11, 2004.

Individual reports contain the results of the claims
verification process that is expected to be completed by June 9,
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 23, 2004.

Arzen Corporation was declared bankrupt by the court, which is
assisted by Clerk No. 6, granting approval to a bankruptcy
petition filed by a Company creditor, Obra Social de Conductores
Navales, for nonpayment of US$18,718.60 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:  Arzen Corporation SA
          Avenida de Mayo 1370, piso 2o
          Buenos Aires

          Fabian Zandperl, Receiver
          Avenida Cordoba 3515, piso 1o, "B"
          Buenos Aires


BANCO DE GALICIA: Problems Remain Following Restructuring
---------------------------------------------------------
The final phase of Banco de Galicia y Buenos Aires SA's
(GALI.BA) US$1.3 billion debt restructuring this week marks an
important step in the bank's recovery from the financial crises
of 2001 - 2002, according to Dow Jones. However, the bank faces
more challenges before it can regain its former position in
Argentina's financial sector.

One obstacle is the bank's dependence on public sector debt. Ana
Gavuzzo, a bank analyst at Fitch Ratings in Buenos Aires, said
that the bank needs to start booking new private loans so it can
diversify out of government assets.

Three-quarters of Galicia's ARS22.3 billion asset base is
currently in government debt that's booked above market value.
Half of the public sector debt is in "guaranteed loans" that
arose out of an early restructuring of banks' sovereign bond
holdings in late 2001 and were later converted into devalued
pesos. Most of the rest is in bonds issued in compensation for
losses incurred by banks under the emergency decrees issued
during the crisis. These assets are represented on Galicia's and
other banks' books at face value, even though their market value
is considerably lower.

The bank's private sector loans grew by 9.8% last, but this
increase was compared to a very low base. The sector loans were
still only ARS3.3 billion at year-end. Most of the growth - as
with many banks - was in credit cards, which now show signs of
slowing.

Overall, however, the prospects of a restructuring has made a
positive influence on parent Grupo Financiero Galicia's shares.
Expectations of success boosted stock value 29% in the first 13
trading days of this year. While those gains, too, have since
been completely wiped out as a market-wide correction has taken
hold in Buenos Aires stocks, Grupo Galicia is still up 137% from
its level 12 months ago.

The restructuring clears the way for Banco Galicia, Grupo
Galicia's biggest and most important asset, to normalize its
balance sheet. It also reopens access to international capital
markets, helping ease the concerns of investors who have fresh
memories of the recent liquidity problems.

In addition, the restructuring ensures Galicia's participation
in a "matching program" under which banks use the income from
their vast government bond holdings to gradually pay back the
gigantic discount loans they received from the Argentine Central
Bank during the worst phase of the deposit outflows. At the same
time, legal risks associated with claims by depositors in
Galicia's troubled Uruguay unit have also been resolved via a
bonds-for-deposits swap.


DIRECTV LA: OpenTV's Seeks $483,959 License Allowance
-----------------------------------------------------
Before the Petition Date, OpenTV, Inc., and DirecTV Latin
America, LLC, entered into:

   (a) a Network Solutions Agreement;

   (b) an e-mail Application Development and License Agreement;
       and

   (c) a number of license agreements for software development
       kits.

All of the contracts involve the licensing of intellectual
property to DirecTV.  The OpenTV Contracts remained executory as
of the February 24, 2004 Effective Date of the Debtor's
Reorganization Plan.  Under the Plan, DirecTV assumed all non-
programming agreements that were not listed on a separate motion
to reject.

Richard B. Levin, Esq., at Skadden, Arps, Slate, Meagher & Flom,
LLP, in Los Angeles, California, relates that OpenTV has not
received any notices and it is not aware that DirecTV has
rejected any of the OpenTV Contracts.  Accordingly, OpenTV
believes that DirecTV must cure all defaults under those
Contracts in accordance with the cure provision of the confirmed
Plan.

According to Mr. Levin, OpenTV's records do not reflect any
amount owing under the Network Solutions Agreement.  However,
the Network Solutions Agreement requires DirecTV to provide
certain data to OpenTV that may indicate that additional amounts
are due and owing.  DirecTV has not yet reported that
information, and so OpenTV reserves the right to assert as part
of the claim any amount owing once it becomes known.

Mr. Levin informs the Court that the contract for e-mail
application generally obligated DirecTV to pay quarterly license
fees based on the number of its subscribers capable of using the
e-mail application.  For the period during which DirecTV
remained in bankruptcy, the contract required minimum fees of
$100,000 per quarter.  Thus, DirecTV owes OpenTV at least
$375,890 in e-mail license fees for the 343 days it spent in
bankruptcy.  DirecTV has not yet reported the number of
subscribers and other information required to calculate the
precise amount of fees owed, so the exact amount may be higher.

Mr. Levin further states that the e-mail application contract
obligated DirecTV to pay $100,000 a year for maintenance and
support, if it elected this feature for a particular year under
the contract.  Thus, DirecTV owes $93,973 for maintenance and
support during bankruptcy.

DirecTV also purchased 10 software development kits, half of
which required it to pay $2,000 a year for maintenance and
support.  The other five required a $1,000 payment.  DirecTV
owes $14,096 under these contracts.

OpenTV asks the Court to allow its request for payment of
administrative expenses aggregating at least $483,959.  OpenTV
reserves the right to assert additional amounts owing, including
re-calculations performed after DirecTV supplies the data that
it is required to report under the OpenTV contracts.

Mr. Levin asserts that DirecTV has continued to use the
intellectual property and other consideration available under
the OpenTV Contracts.  That use has benefited the estate because
DirecTV has continued to generate revenue from its subscribers
by offering them a variety of services, including the e-mail
application and other applications maintained or improved by the
OpenTV Contracts.  Mr. Levin contends that the license fees and
maintenance support fees are administrative expenses that must
be paid by DirecTV under Sections 503(b)(1) and 507(a)(1) of the
Bankruptcy Code. (DirecTV Latin America Bankruptcy News, Issue
No. 23; Bankruptcy Creditors' Service, Inc., 215/945-7000)


DISCO: Senate Heat is On for Cencosud Deal
------------------------------------------
In a move that could pressure the government into acknowledging
political opposition to the proposed sale of supermarket chain
Disco to Chilean retailer Cencosud, the Argentinean Senate has
summoned senior government officials to testify on the sale's
impact on suppliers, consumers and small businesses, Dow Jones
reveals.

Leonardo Madcur of the Economy Ministry, which has final say on
the deal, and Patricia Vaca Narvaja, the Undersecretary for the
Defense of Consumers and Competition, were asked Wednesday to
appear before a joint session of three legislative committees.
According to one senator, the two officials are likely to appear
before the committees in the next two weeks. In March, Ms. Vaca
Narvaja has already said she "strongly opposed" the US$315
million deal, which would see Disco pass to Cencosud from its
current owner, troubled Dutch retail giant Royal Ahold NV.

A senator told Dow Jones that there is "substantial opposition"
to the deal in the Senate and that the appearance of the two
officials before the committees will be used by lawmakers to
press the government on how it will address concerns that the
purchase would harm suppliers, consumers and small businesses.
Cencosud already owns Argentina's Jumbo supermarket chain and
would control around 22% of the market if the Disco sale pushes
through.

Cencosud and Disco have dismissed critics' statements, saying
that, "far from creating harm, the purchase of the Disco
supermarket chain will create genuine benefits for consumers,
opening up new options for them." The Chilean company said its
is confident that the Argentine government will examine the sale
on purely technical grounds and will not bow to pressure.


DISTRIBUIDORA MORICE: Reorganization Converts to Bankruptcy
-----------------------------------------------------------
Distribuidora Morice S.A., which was undergoing reorganization,
entered bankruptcy on orders from Buenos Aires Court No. 14,
according to Infobae. The court assigned Abel Alexis Latendorf
as the Company's receiver. The credit verification process will
be done "por via incidental", says the report, adding that the
court ordered the receiver to submit the general report on
October 10, 2004.


ELECE: Court Issues Bankruptcy Ruling
-------------------------------------
Elece S.A. will now enter bankruptcy after Buenos Aires Court
No. 3 declared it "Quiebra," reports Infobae. With assistance
from Clerk No. 5, the court named Ms. Carina Silvia Bianchi as
receiver who will verify creditors' claims until June 11, 2004.

Following claims verification, the receiver will submit the
individual reports, which were prepared based on the
verification results, to court on August 9, 2004. The general
report is due for submission on September 21, 2004.

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

CONTACT:  Elece S.A.
          Nogoya 3200
          Buenos Aires

          Carina Silvia Bianchi, Receiver
          Paraguay 729
          Buenos Aires


ESTABLECIMIENTOS OPRTICOS: Files for Bankruptcy
-----------------------------------------------
Establecimientos Oprticos Constelacion S.A.I.C.I.F. is seeking
to undergo bankruptcy, reports Infobae. The Company's case is
now pending before Buenos Aires Court No. 18, which is aided by
Clerk No. 35.

CONTACT: Establecimientos Oprticos Constelacion S.A.I.C.I.F.
         Riobamba 340
         Buenos Aires


INDUSTRIA PLASTICA: Court Makes Bankruptcy Official
---------------------------------------------------
Industria Plastica Metalurgica Tesei S.R.L. is now bankrupt
after Buenos Aires Court No. 18 declared it "Quiebra", Infobae
reports without revealing the name of the court-appointed
receiver. The receiver will be reviewing creditors' claims until
June 30, 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. The
court, which is aided by Clerk No. 36, will conclude the
bankruptcy process by liquidating its assets to repay creditors.


JM PRODUCCIONES: Receiver to Submit Individual Reports Aug 10
-------------------------------------------------------------
Buenos Aires Court No. 19, which declared JM Producciones S.R.L.
bankrupt in March this year, ordered Ms. Irma Susana Aguilera,
the receiver, to submit individual reports on August 10, 2004.

The submission of the said reports follows the completion of the
verification process, a stage of the bankruptcy process wherein
the receiver determines the names of creditors who will be
eligible for repayment. The receiver is expected to complete the
verifications by June 26, 2004.

After submitting the individual report, the receiver will
prepare the general report and hand it to court on September 19,
2004. The case will culminate in the liquidation of all of the
Company's assets to repay creditors.


NEW MAQ'S: Court Sets Deadline for Submission of Reports
--------------------------------------------------------
Buenos Aires Court No. 19 ordered Mr. Manuel Camilo Arias, the
receiver tasked to oversee the bankruptcy proceedings of New
Maq's S.A., to submit the individual reports to court on August
21, 2004. Individual reports contain the results of the claims
verification process that's expected to be completed by June 21,
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 29, 2004.

New Maq's was declared bankrupt by the court, which is assisted
by Clerk No. 37, granting approval to a bankruptcy petition
filed by the Company's creditor, Necta Vending Solutions SA, for
nonpayment of US$11,337.18 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.


OGDEN-RURAL: SRA's Members Object to De Narvaez Sale
----------------------------------------------------
A group of members of the Argentine Rural Society (SRA) objected
to the sale of 50% of the shares of Ogden Rural, the Company
that holds the concession of exhibition center La Rural, to
Francisco De Narvaez and Alejandro Shaw, who already own the
other half. They said they were surprised "with an unusual
change of rules" to get approval of the deal during the
extraordinary meeting that took place last Friday.

The dissident members claim that if the sale is approved, the
purchasers will "exploit the center in exclusivity during the
next 21 years, turning it into a commercial center and
conditioning and relegating SRA's autonomy and independency."

The assembly also discussed the ARS109 million debt Ogden Rural
has with state-owned bank Banco Provincia, which according to
these members is one of the main causes that are boosting the
questioned sale.

Luciano Miguens, president of SRA, had written a letter to the
associates, saying that the sale would bring revenues to the
entity and would also free it from its debt to Banco Provincia.
In addition, Miguens highlighted that the SRA would keep its
right to co-organize the annual farming exhibition.


PETROBRAS ENERGIA: S&P Affirms Rating on Series R Notes
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed Friday its 'B-'
rating on Argentina-based oil and gas company Petrobras EnergĦa
S.A.'s (PESA) 9.375% Series R notes due 2013, after an extra
$100 million was issued under the notes. The company's 'B-'
corporate credit rating is affirmed. The outlook is stable.

"The issuance reflects improved financial flexibility, which has
been enhanced by Petroleo Brasileiro S.A.'s (Petrobras)
ownership," said Standard & Poor's credit analyst Pablo
Lutereau. "Proceeds from the issuance will be applied to
repayment of short-term financial debt, improving the maturity
schedule of the company."

The ratings on PESA reflect its relatively aggressive financial
profile, high exposure to the Republic of Argentina's changing
economic rules, significant need for capital expenditures (to
develop its large reserve base), and the uncertainties
surrounding the utility business in which the company
participates. The ratings also incorporate the potential support
from its main shareholder, Petrobras, the company's strong
export profile, geographic diversification, low cost structure,
and geological knowledge of the region.

With sales of more than $1.8 billion in 2003 and consolidated
assets of approximately $5.6 billion (considering proportional
consolidation in companies under joint control), PESA is one of
the most important energy companies in Argentina and the
Southern Cone.

Although no capital infusions or financial aid by the
shareholder are expected in the near term, the existence of
cross-default clauses between Petrobras' indebtedness and PESA's
debt results is an incentive for the former to support its
subsidiary. According to Standard & Poor's criteria, the mere
existence of such clauses does not merit equalization of the
ratings. Nevertheless, in the current case, Standard & Poor's
factors into the ratings some potential support to PESA from its
parent, Petrobras that enhances financial flexibility.

PESA's liquidity is somewhat adequate. As of December 2003,
PESA's total debt amounted to $2 billion, including
approximately $359 million in the short term (without including
the proportional consolidation of subordinates under joint
control), while cash reserves amounted to $330 million. Although
the company's funding ability is diminished by current market
conditions, the restructuring of all its obligations in August
2002 significantly reduced PESA's refinancing risk.

The stable outlook incorporates some level of regulatory
stability in Argentina. In addition, the existence of certain
cross-default clauses between Petrobras' and PESA's indebtedness
provides some incentives for the parent to support its Argentine
subsidiary. Both the rating and outlook assume no significant
changes in the regulation affecting the sector. Should any such
change take place, the ratings will be adjusted to reflect
either the improvement or deterioration in PESA's repayment
ability.

ANALYSTS:  Pablo Lutereau, Buenos Aires (54) 114-891-2125
           Reginaldo Takara, Sao Paulo (55) 11-5501-8932
           Marta Castelli, Buenos Aires (54) 114-891-2128


STOCK INDUSTRIAL: Ruled Bankrupt, Receiver Assignment Pending
-------------------------------------------------------------
Buenos Aires Court No. 7 decreed the bankruptcy of Stock
Industrial S.R.L., reports Infobae. The court, which is assisted
by Clerk No. 14, is yet to appoint a receiver, as well as
announce the bankruptcy's timetable.


TGS: Posts Over 50% Drop in 1Q04 Net Profit
-------------------------------------------
Blaming higher income taxes and the rise of the peso against the
dollar in the first quarter, natural gas pipeline operator
Transportadora de Gas del Sur SA (TGS) announced Friday it has
posted a net profit of ARS100.4 million ($1=ARS2.8375) for the
first three months of 2004, a more than 50% decrease from the
ARS214.6 million it registered in the same period last year, Dow
Jones reveals.

Compared to the first quarter of 2003 when it had a gain of
ARS94.4 million for income tax, TGS posted an ARS4.4 million
income tax loss for the January to March period. Moreover, the
2.5% climb of the peso against the dollar resulted in a
financial holdings loss of ARS11.4 million for the company,
compared to a gain of ARS27 million in the year-earlier quarter.

The company's sales, however, rose in the period, bringing in
ARS245.1 million, up from ARS220.5 million in 1Q03. Its natural
gas transport sales also registered a slight gain, with ARS106
million compared to the ARS104.2 million generated last year.
Liquid natural gas sales, meanwhile, were up with ARS129.8
million from ARS106.6 million in 2003.



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

GLOBAL CROSSING: Auditor Withdraws Reports
------------------------------------------
In a filing with the U.S. Securities and Exchange Commission
Thursday, fiber-optic network operator Global Crossing revealed
that its audit firm, Grant Thornton LLP, has withdrawn its audit
reports for the last three quarters on the Bermuda-based firm,
accountingWEB.com reports, citing online news service
TheStreet.com.

Grant Thornton, which was dismissed as Global Crossing's auditor
on April 1, had been complaining about the company's accounting
methods. The audit firm questioned what it called "significant
deficiencies" that aggregately were "material weaknesses" in
Global Crossing's accounting.

Early last week, Global Crossing practically blamed Grant
Thornton when it announced that its 2003 financial results would
have to be restated due to underestimated access costs,
TheStreet.com reported. This decision followed a discovery by
the company's internal review that the company has between US$50
million and US$80 million in understated access liabilities from
2003. The company filing stated that Grant Thornton did not flag
any problems with access costs, which are the company's largest
expense. "In each case, GT further advised the audit committee
that these internal control deficiencies did not affect GT's
unqualified report on the Audited Financial Statements," the
Global Crossing filing said.

Nevertheless, the unusual move by Grant Thornton, which had been
replaced by Ernst & Young as Global Crossing auditor, has
triggered a drop in the company's shares, and sent investors
bailing out in large numbers. It also raises new worries about
the company, which has just emerged in December from the
bankruptcy protection it filed for in January 2002.


GLOBAL CROSSING: Grant Report Withdrawal Triggers Plunge
--------------------------------------------------------
The decision of Grant Thornton LLP to withdraw its audit reports
on fiber-optic network operator Global Crossing led to a plunge
in the Bermuda-based company's shares, which dropped by as much
as 23%, reports Bloomberg. Global Crossing shares tumbled
US$2.90 to US$7.13 in Nasdaq Market composite trading.

The audit firm's move, which Global Crossing revealed in a
filing last week with the U.S. Securities and Exchange
Commission, is likely to result in the de-listing of Global
Crossing's shares from Nasdaq, says one analyst.

The company also took investors aback early last week when it
said it will restate its results for 2003 after underestimating
some liabilities. The restatement, Bloomberg says, has something
to do with expenses like the fees Global Crossing owes other
phone companies that handle its traffic.

Global Crossing has just emerged in December from the bankruptcy
protection it filed for in January 2002. Its case is considered
the second-biggest telecommunications bankruptcy after WorldCom
Inc., which filed for creditor protection in July 2002 and
emerged this month.


GLOBAL CROSSING: Geller Rudman, PLLC Files Class Action Lawsuit
---------------------------------------------------------------
The Law Firm of Geller Rudman, PLLC announced Sunday that a
class action lawsuit has been filed in the United States
District Court for the Southern District of New York on behalf
of purchasers of Global Crossing Ltd. ("Global Crossing" or the
"Company") (Nasdaq: GLBCE - News) publicly traded securities
during the period between December 9, 2003 and April 26, 2004,
inclusive (the "Class Period").

The complaint charges that Global Crossing, John Legere (Chief
Executive Officer) and Daniel P. O'Brien (Chief Financial
Officer and Executive Vice President) violated sections 10(b)
and 20(a) of the Exchange Act, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations
to the market during the Class Period. More specifically, the
complaint alleges that defendants' statements during the Class
Period failed to disclose and misrepresented the following
material adverse facts which were then known to defendants or
recklessly disregarded by them: (1) that the Company had
materially understated its accrued cost-of-access liability by
$50- $80 million; (2) that the Company had insufficient internal
controls; and (3) that as a result, the Company's financial
results were materially inflated at all relevant times.

On April 27, 2004, Global Crossing announced that it had begun a
review of its previously reported financial statements for the
years ended December 31, 2003 and 2002, including respective
interim periods, and that "the company will amend periodic
reports previously filed with the Securities and Exchange
Commission to reflect the expected restatement and to revise
disclosures related to the internal control issues presented and
the company's methodologies for estimating cost of access
expenses and reconciling these expenses to vendor invoices."

News of this shocked the market. Shares of Global Crossing stock
dropped $5.00 per share, or 27.7 percent on April 27, 2004 on
unusually large trading volumes to close at $13.20 per share.

If you bought Global Crossing publicly traded securities between
December 9, 2003 and April 26, 2004, inclusive, and you wish to
serve as lead plaintiff, you must move the Court no later than
June 29, 2004. If you are a member of this class, you can join
this class action online at http://www.geller-
rudman.com/cases.asp. Any member of the purported class may move
the Court to serve as lead plaintiff through Geller Rudman or
other counsel of their choice, or may choose to do nothing and
remain an absent class member.

Geller Rudman, PLLC is a national law firm that represents
investors and consumers in class action and corporate governance
litigation. It is one of the country's premier firms in the area
of securities fraud, with in-house finance and forensic
accounting specialists and extensive trial experience. Since its
founding, Geller Rudman, PLLC has grown to become one of the
most respected and successful firms representing investors and
consumers in class action litigation. The firm came of age under
the client focused realities of the Private Securities
Litigation Reform Act of 1995, which provided new opportunities
for institutional investors to assume leadership in combating
securities fraud.

The firm's lawyers have achieved substantial recoveries for
aggrieved investors and consumers in class action lawsuits
prosecuted in state and federal courts throughout the nation.
Geller Rudman, PLLC maintains a widely recognized reputation for
excellence, as courts have repeatedly appointed the firm to
major positions in intricate multi-district or consolidated
litigations. In this regard, Geller Rudman, PLLC has
successfully pursued hundreds of class action lawsuits, has
taken a lead role in numerous complex litigations on behalf of
defrauded investors and consumers and has been responsible for
billions in recoveries as well as landmark corporate governance
changes. The firm maintains offices in Boca Raton and New York.

Firm's Web site: http://www.cauleygeller.com


GLOBAL CROSSING Abbey Gardy, LLP Commences Class Action Suit
-------------------------------------------------------------
Abbey Gardy, LLP commenced a Class Action lawsuit in the United
States District Court for the District of New Jersey on behalf
of all purchasers of securities of Global Crossing, Ltd.
("Global Crossing" or the "Company") (Nasdaq:GLBC) between
January 22, 2004 and April 26, 2004, inclusive (the "Class
Period").

The Complaint alleges that defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder. The Complaint names as defendants Global
Crossing, Lodewijk Christiaan Van Wachen, Peter Seah Lim Huat
and John Leger. The Complaint alleges that defendants issued a
series of materially false and misleading statements that
operated as a fraud on purchasers of Global Crossing common
stock during the Class Period.

More specifically the Complaint alleges that on December 9, 2003
Singapore Technologies Telemedia (ST Telemedia) and Global
Crossing announced that they have consummated their purchase
agreement, allowing a newly restructured Global Crossing to
emerge from Chapter 11 proceedings. The December 9, 2003 press
release stated that Global Crossing's plan of reorganization
included the cancellation of existing preferred and common
stock. The holders of these previously publicly traded
securities received no consideration under the company's plan of
reorganization. Global Crossing also reported that it, together
with its independent auditor, Grant Thornton LLP, had finalized
its audit of financial results for the years ended December 31,
2001 and December 31, 2002.

On January 22, 2004, Global Crossing announced that its new
common stock would begin trading on the NASDAQ National Market,
under the trading symbol GLBC. On March 10, 2004, Global
Crossing reported its preliminary financial results for the
fourth quarter and year ended December 31, 2003. In addition,
the company announced several key milestones in 2003 and offered
an outlook for 2004 "Today Global Crossing is a company with a
clean balance sheet, minimal debt, strong corporate governance
and a seasoned management team that will steer the company into
a leadership position within the telecommunications industry,"
said John Legere, Global Crossing's chief executive officer. On
March 26, 2004, Global Crossing filed its 2003 annual report on
Form 10-K with the Securities and Exchange Commission.

On April 27, 2004, Global Crossing shocked the investing public
by announcing that it plans to restate results for 2003 because
it understated costs by at least $50 million to $80 million.
Global Crossing said in the statement its previously reported
results for 2002 and 2003, and its 2004 forecasts should be
disregarded pending the outcome of its review. The company also
said that it is assessing the internal control issues believes
that these issues constitute a material weakness in its internal
controls. Finally the Company said that pending the ongoing
review and the restatement, Global Crossing is postponing its
June 2004 shareholders meeting, the filing and mailing to
shareholders of its proxy statement, and its earnings release
and Quarterly Report on Form 10-Q for the first quarter of 2004.

The market's reaction to Global Crossing's disclosures was swift
and severe. Following these disclosures, shares tumble $5 to
$13.20. Volume, at 4.19 million shares, was more than six times
the three-month daily average

The Complaint alleges that throughout the Class Period, Global
Crossing and the Individual Defendants made material
misrepresentations with respect to the Company's financial
results. More specifically, the defendants failed to disclose
that (a) the Company understated between $50 million to $80
million of accrued cost of access liability; (b) the Company had
inadequate internal controls; and (c) the Company's financial
results were materially inflated at all relevant times Plaintiff
seeks to recover damages on behalf of all those who purchased or
otherwise acquired Global Crossing securities during the Class
Period. If you purchased or otherwise acquired Global Crossing
securities during the Class Period, and either lost money on the
transaction or still hold the securities, you may wish to join
in the action to serve as lead plaintiff. If you purchased
Global Crossing securities during the Class Period, you may, no
later than June 29, 2004 request that the Court appoint you as
lead plaintiff. A lead plaintiff is a representative party that
acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court
must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one
or more class members may together serve as "lead plaintiffs.''
Your ability to share in any recovery is not, however, affected
by the decision whether or not to serve as a lead plaintiff.

Abbey Gardy, LLP has been retained as one of the law firms to
represent the Class. The attorneys at Abbey Gardy, LLP have
extensive experience in securities class action cases, and have
played lead roles in major cases resulting in the recovery of
hundreds of millions of dollars to investors. If you would like
to discuss this action or if you have any questions concerning
this Notice or your rights as a potential class member or lead
plaintiff, you may contact:

CONTACT:  Abbey Gardy, LLP
          Susan Lee
          212 East 39th Street
          New York, New York 10016
          (212) 889-3700
          (800) 889-3701 (Toll Free)
          Email: slee@abbeygardy.com.



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

CEMAR: PPL Completes Final Share Transfer
-----------------------------------------
PPL Corporation (NYSE: PPL - News) announced Friday the transfer
of its entire ownership interest in its former electric
distribution company in Brazil. PPL transferred its interest in
Companhia Energetica do Maranhao S.A., commonly known as CEMAR,
to Brazil Development Equity Investments and SVM Participacoes e
Empreendimentos Ltda., companies controlled by a private equity
fund managed by GP Investimentos, a Brazilian private equity
firm.

The transaction will result in a non-cash, unusual credit of
approximately $22 million, or 12 cents per share, to PPL's
earnings in the second quarter of 2004. This credit results from
the reversal of the negative carrying value, created by previous
consolidated operating losses for this investment.

John R. Biggar, PPL's executive vice president and chief
financial officer, reaffirmed PPL's previously announced 2004
forecast of earnings from ongoing operations of $3.45 to $3.75
per share. Unusual items are not included in earnings from
ongoing operations.

Earlier this year, PPL sold its minority interest in Compania
General de Electricidad, or CGE, in Chile, which resulted in a
non-cash, unusual charge of approximately $7.5 million, or $0.04
per share, to the corporation's earnings in the first quarter of
2004. Including these two unusual items, plus an unusual charge
of $0.01 for a discontinued telecommunications operation in El
Salvador, PPL's forecast of reported earnings for 2004 is $3.52
to $3.82 per share.

The transfer in ownership of CEMAR was sponsored by the
Brazilian electricity regulator, which assumed full operational
and financial control of CEMAR in August 2002 and since that
time has been attempting to transfer CEMAR to a new owner. PPL
acquired CEMAR in June 2000.

In 2001, PPL had concluded that the long-term viability of its
investment in CEMAR was jeopardized and that the probability of
positive cash flows was minimal due to a prolonged drought,
electricity rationing, an uncertain regulatory climate and a
malfunctioning wholesale electricity market in Brazil.
Accordingly, PPL wrote down its investment in CEMAR from
approximately $300 million to zero.

PPL suspended recording CEMAR's financial results in August
2002, because it no longer controlled the entity as a result of
the intervention by the regulator.

PPL Corporation, headquartered in Allentown, Pa., controls about
11,500 megawatts of generating capacity in the United States,
sells energy in key U.S. markets and delivers electricity to
nearly 5 million customers in Pennsylvania, the United Kingdom
and Latin America. More information is available at
www.pplweb.com.

"Earnings from ongoing operations" excludes the impact of
unusual items. Earnings from ongoing operations should not be
considered as an alternative to net income, which is an
indicator of operating performance determined in accordance with
generally accepted accounting principles (GAAP). PPL believes
that earnings from ongoing operations, although a non-GAAP
measure, is also useful and meaningful to investors because it
provides them with PPL's underlying earnings performance as
another criterion in making their investment decisions. PPL's
management also uses earnings from ongoing operations in
measuring certain corporate performance goals. Other companies
may use different measures to present financial performance.


CERJ: NOI Up Despite Increased Power Losses 1Q04
------------------------------------------------
Despite the implementation in 2003 by Chilean power sector
holding company Enersis of a strategy aimed at reducing power
losses due to theft at its Brazilian distributors, Rio de
Janeiro utility Cerj in particular, the Brazilian utility still
recorded energy losses of 2,241GWh in the first quarter, a 5.6%
increase compared to the same period last year, relates Business
News Americas. Power losses were also up 1.1% to 23.6% year-
over-year, the highest level of power losses amongst all Enersis
distributors.

Nevertheless, Cerj, citing a 42.3% increase in operating income
to US$22 million, lowered its net loss to US$8 million in 1Q04
from the US$38mn loss it recorded in the same period last year.
The improvement was related to higher operating revenues, lower
depreciation and amortization expenses, partially compensated by
higher energy purchases, and higher operating and maintenance
costs.

Physical sales fell 3.7% to 1,951GWh, but client numbers rose
14.9% to 2.03 million. Client numbers per employee increased
10.1% to 1,359 in 1Q04.


CFLCL: Dispute over Dividend Payments Continues
-----------------------------------------------
Attempts by the controllers of Brazilian power company CFLCL to
overturn an injunction blocking the distribution of dividends
further intensified the continuing dispute with its minority
shareholders, Business News Americas reports. Previously a court
authorized the company to distribute dividends to its non-voting
right shareholders early this week, but another court decision
blocked the distribution on Thursday.

The controllers, minority shareholders claim, are pushing for
the dividend distribution to prevent the minority from gaining
voting rights and influence over managerial decisions. If the
dividend is withheld, 2003 would be the third straight year in
which CFLCL has not paid dividends, thus permitting minority
shareholders to exercise the abovementioned rights under
Brazilian law.

In 2003, the company posted net profits of BRL16.9 million
(US$5.75mn) recovering from a net loss of BRL73 million the
previous year. Management claimed that debt restructuring and
improvement of the country's economy, had brought the company
back to financial health. However, minority shareholders claim
the company's finances are being hurt to preserve the majority
shareholders' influence in the company.

A report published by CVM, Brazil's securities commission, on
April 5 said that dividends could only be distributed after a
new shareholder's meeting. Electric Regulator Aneel also stated
that dividends could only be distributed after CFLCL submits it
its cash flow projection proving that the payment would not
increase company debt.


PARMALAT BRAZIL: Jundiai Plant Production Halted
------------------------------------------------
Citing a shortage of plastic film for the manufacture of
packaging for its products, Parmalat Brazil has temporarily
suspended production in its Jundiai plant in Sao Paulo,
according to local business daily Valor Economico. The Jundiai
plant, which makes juice, cookies and tea, will partially resume
operations next week, focusing on the production of cookies.

Parmalat Brazil, which filed for bankruptcy in January, already
has a restructuring plan put in place by its bankrupt Italian
parent, Paramalat Finanziaria. The plan calls for the Brazilian
unit to concentrate on the production of beverages and dairy
products, and to reduce its number of brands from 120 to 30.


TELEMAR: Abandons Intelig Takeover Plans
----------------------------------------
Brazilian fixed-line phone operator Telemar has abandoned its
plans to acquire long-distance operator Intelig and other small
mobile phone firms in order to focus on its network expansion
plans for its long-distance division Oi, according to a report
by local business newspaper Valor Economico.

A previous report by Troubled Company Reporter-Latin America has
stated that Intelig, which was put on the block November 2001,
would go to a member of the Calais consortium in the event
Mexican phone company Telmex wins the bid for Brazil's largest
long-distance operator, Embratel. Last week, a New York
bankruptcy judge approved Embratel's sale to Telmex, closing the
door on Calais' bid. This makes the decision of Telemar, one of
three incumbents comprising Calais, to discard Intelig all the
more surprising.

Oi, which is active in the 16 states covered by the group,
reported 515,000 new clients for the first quarter of 2004,
bringing its market share at 20% with a total of 4.4 million
subscribers. It has also posted a 33% increase in its income for
the period. The division, however, is still in the red.



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

VALORES BAVARIA: Records COP17 Billion 1Q Net Loss
--------------------------------------------------
In a statement released Friday, Colombian conglomerate Valores
Bavaria SA announced a first quarter net loss of COP17 billion
($1=COP2,659.50), a sharp increase from the COP3.1 billion loss
it registered in same period in 2003, Dow Jones reveals.

The loss was attributed by Valores Bavaria to the sale of 78
million Bellsouth shares, which, the statement said, were sold
at a below-book value. The company reduced in March its stake in
BellSouth Corp.'s (BLS) local unit to 18% from 28% through the
direct sale of shares back to BellSouth Colombia. It also
divested its stake in pet food company Finca.

Valores Bavaria, which is under the control of the Santo Domingo
family, also reported a net operating loss of COP47.5 billion in
the first quarter, compared to a COP3 billion operating income
in the year-ago period.



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

PACIFICTEL: Carriers Cut Out of Routing Loop
--------------------------------------------
Nine of the 23 international long-distance companies caught
handling calls to and from Ecuador without proper authorization
have been disconnected by wired carrier Pacifictel from its
network as part of its goal to collect credits of US$41.97
million, local daily Diario Expreso reports.

Pacifictel severed the connections of MCI WorldCom, Comunitel
Global, Telefonica, Telecom (Italy), Telecom (Colombia),
Telefonica del Peru, CTC Mundo, New Zealand, and GO2Tel from its
network. These companies, the reports says, have pending debts
of up to US$14.43 million.



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

DESC: Independent Auditors' Report Filed
----------------------------------------
DESC, S.A. de C.V.'s (NYSE: DES; BMV: DESC) Independent
Auditors' Report to the Board of Directors and Stockholders of
Desc, S.A. de C.V. confirms the announcements made during the
first quarter of 2004 regarding the successful conclusion of
Desc's financial restructuring and the accelerated adoption of
Bulletin C-15.

Independent Auditors' Report to the Board of Directors and
Stockholders of Desc, S.A. de C.V.:

We have audited the accompanying consolidated balance sheets of
Desc, S.A de C.V. and subsidiaries (collectively referred to as
the "Company") as of December 31, 2002, and 2003, and the
related consolidated statements of income (loss), changes in
stockholders' equity and changes in financial position for the
years then ended. These financial statements are the
responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on
our audits. The consolidated financial statements of the Company
for the year ended December 31, 2001, were audited by other
auditors who expressed an unqualified opinion in their report
dated March 12, 2002.

We did not audit the financial statements of the chemical and
food segments, which statements reflect total assets
constituting 42% of consolidated total assets as of December 31,
2002, and 2003, and total revenues constituting 53% and 54%,
respectively, of consolidated total revenues for the years then
ended. Those statements were audited by other auditors whose
reports have been furnished to us, and our opinion, insofar as
it relates to the amounts included for those entities, is based
solely on the reports of such other auditors.

We conducted our audits in accordance with auditing standards
generally accepted in Mexico (and in the United States of
America). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits and
the reports of the other auditors provide a reasonable basis for
our opinion.

As mentioned in Notes 1b. and 11 to the accompanying
consolidated financial statements, in December 2003 the Company
satisfactorily concluded negotiations to restructure a
significant portion of its short and long-term debt.

As mentioned in Note 4a. to the accompanying consolidated
financial statements, as of December 31, 2003 the Company early
adopted the provisions of new Bulletin C-15, "Impairment of the
Value of Long-lived Assets and their Disposal", which
establishes that an impairment loss has occurred if the present
value of estimated net future cash flows of a cash generating
unit is less than the book value of long-lived assets, tangible
or intangible. The effect in thousands of pesos derived from the
application of this principle was the recognition of Ps.712,457
of impairment in the value of certain property, plant and
equipment and Ps.898,891 of impairment in the value of the
goodwill of certain subsidiaries. The charge to 2003 results was
Ps.1,384,294, net of a reduction of Ps.227,054 in the related
deferred income tax liability.

In our opinion, based on our audit and the reports of the other
auditors, such consolidated financial statements present fairly,
in all material respects, the financial position of Desc, S.A.
de C.V. and subsidiaries as of December 31, 2002, and 2003, and
the results of their operations, changes in their stockholders'
equity and changes in their financial position for the years
then ended in conformity with accounting principles generally
accepted in Mexico.

Our audits also comprehended the translation of the Mexican peso
amounts into U.S. dollar amounts and, in our opinion, such
translation has been made in conformity with the basis stated in
Note 2a. The translation of the financial statement amounts into
U.S. dollars and the translation of the financial statements
into English have been made solely for the convenience of
readers in the United States of America.

Galaz, Yamazaki, Ruiz Urquiza, S.C.
Member firm of Deloitte Touche Tohmatsu
CPC Luis Javier Fernandez Barragan
March, 26, 2004

As reference, the notes mentioned on the paragraphs above, are
included:

NOTE 1b - Significant events - In December 2003 the Company
satisfactorily concluded the agreement with bank creditors to
refinance syndicated loans and a significant part of the
Company's short-term debt. The total amount of the restructured
debt was approximately $667,000 ($445,700 and Ps.1,223,000 of
long-term loans and $112,000 of revolving credit and letters of
credit), which represents around 63% of the Company's
consolidated debt. The terms of the negotiation include maturity
of the debt after five years and a grace period of 30 months as
of January 2004 for payment of principal. The interest rates
obtained for the dollar debt are LIBOR rate plus a variable
interest margin, while the rate for the Mexican peso debt is
TIIE (Interbank interest rate) plus a variable interest margin
(see Note 11).

NOTE 11 - Debt refinancing - As mentioned in Note 1, during
December 2003, an agreement was satisfactorily reached with the
bank creditors to refinance the Company's syndicated loans and
most of its short-term debt. The most important terms of the
financial restructuring signed on December 23, 2003 are
indicated below:

a.Syndicated loan of $445.7 million at the LIBOR interest rate
plus a variable margin depending on the index obtained in the
consolidated debt to operating profit financial ratio, less
depreciation and amortization, which fluctuates between 1.625
and 4.000, with maturities between 2006 and 2008. As of December
31, 2003, the variable margin is 3.5. The interest will be
payable on a monthly or quarterly basis b.Syndicated loan of
Ps.1,223 million, at an interest rate equal to TIIE plus a
variable margin depending on the index obtained in the
consolidated debt to operating profit financial ratio, less
depreciation and amortizations, which fluctuates between 1.125
and 4.000, with maturities from 2006 to 2008, respectively. As
of December 31, 2003 the variable margin determined is 3.5. The
interest will be payable on a monthly basis.

c.Credit of $112 million, divided into two tranches, (i) $100
million revolving credit, at the LIBOR interest at rate plus a
variable margin depending on the index obtained in the
consolidated debt to operating profit financial ratio, less
depreciation and amortization, which fluctuates between 1.375
and 3.50, and (ii) $12 million credit letters, both with
maturity in 2006. As of December 31, 2003 the Company has
applied dispositions against the tranche of $100 million, and
the variable interest margin determined is 3.0. The interest
will be payable on a monthly or quarterly basis.

As part of the conditions negotiated, the operating subsidiaries
and certain holding subsidiaries were considered jointly and
severally liable and guarantors for the debt, and a package of
concrete guarantees was created consisting of fixed assets,
accounts receivable of the real estate sector and stock in
certain subsidiaries.

NOTE 4a - Adoption of accounting principles - The Company early
adopted the provisions of new Bulletin C-15, "Impairment in the
value of long-lived assets and their disposal" ("C-15"). C-15
establishes, among other issues, that in the presence of
indicators of impairment of a long-lived asset in use, whether
tangible or intangible, including goodwill, entities must
determine the possible loss from impairment, unless they have
evidence clearly demonstrating that such indicators are of a
temporary nature. To calculate the loss from impairment requires
the determination of the recovery value, now defined as the
higher of the net selling price of a cash generating unit and
its use value, which is the present value of future net cash
flows, at an appropriate discount rates. In the provisions prior
to C-15, net future cash flows referenced to the purchasing
power in effect at the evaluation date were used, without
requiring the discounting of such flows. The effect derived from
the application of this new principle was the recognition of
Ps.712,457 of impairment in the value of certain property, plant
and equipment and Ps.898,891 of impairment in the value of the
goodwill of certain subsidiaries. The charge to 2003 results was
Ps.1,384,294, net of a reduction of Ps.227,054 in the related
deferred income tax liability, presented in the statement of
income under the heading "Change in accounting principle".

CONTACTS:  Marisol Vazquez Mellado
           Jorge Padilla Ezeta
           Tel: (5255) 5261-8044
           E-mail: jorge.padilla@desc.com.mx
           Web site: www.desc.com.mx


EMPRESAS ICA: Cuts 1Q04 Net Loss
--------------------------------
A 27% increase in sales and lower financing costs have enabled
Mexican construction company Empresas ICA SA (ICA) to curtail
its net losses in the first quarter to MXN83.8 million pesos
($1=MXN11.4150), a much lower figure than the MXN273.5 million
net loss it reported for the same period last year, says Dow
Jones.

For the January to March period, ICA's sales soared to MXN2.52
billion, with financing costs plummeting by 67% to MXN40
million. The company also posted for the quarter a more than 50%
increase in its earnings before interest, taxes, depreciation
and amortization, or EBITDA, jumping to MXN311 million from
MXN138 million a year ago. Operating profit rose to MXN62.9
million from MXN49.3 million a year ago.


INNOVA: Parent Expected to Inject New Cash
------------------------------------------
Mexico's leading broadcaster Televisa is planning to give Mexico
city-based satellite pay-TV company Innova S. de R.L., its
satellite television unit, a capital injection of US$123
million, reports local business daily El Economista.

Innova, which operates in Mexico under the Sky brand, is 60%
owned by Televisa. The direct competitor of Direct TV, Innova
ended the first quarter with 886,100 subscribers, a 14% increase
from last year.


LUZ Y FUERZA: Regulators Demand Improved Financial Standing
-----------------------------------------------------------
Mexican state power company Luz y Fuerza del Centro (LyFC) has
been urged by the general manager of Comision Federal de
Electricidad (CFE) to improve its finances to ensure its
solvency in the long term, says a report by news service
Notimex.

CFE general manager Alfredo Elias Ayub said, "Luz y Fuerza
should be more conscientious of the fact that its situation is
not sustainable long term, and that it has to establish a
productive and training program to have productive figures equal
to those of the CFE." He also revealed that the government will
help LyFC out with its debt, setting aside MXN17 billion for the
purpose.


MAXCOM TELECOMUNICACIONES: Reports EBITDA of Ps$40.1Mln for 1Q04
----------------------------------------------------------------
LINES:

The number of lines in service at the end of 1Q04 increased 7%
to 138,829 lines, from 129,982 lines at the end of 1Q03, and 1%
when compared to 137,544 lines in service at the end of 4Q03.
Out of the total outstanding lines at the end of 1Q04, 6,970
lines, or 5% were from Wholesale customers, which compares to
5,090 lines, or 4% at the end of 1Q03, and 6,850 lines, or 5% at
the end of 4Q03.

During 1Q04 lines construction was higher by 53% at 2,872 lines,
from 1,873 constructed lines in the same period of 2003; and by
133% when compared to 1,232 constructed lines during 4Q03.

During 1Q04, 10,029 new lines were installed, 36% below the
15,591 lines installed during 1Q03. When compared to 4Q03, the
number of installations increased 3% from 9,694 lines.

During 1Q04, the monthly churn rate was 2.2%, lower than the
2.9% monthly average churn during 1Q03. When compared to 4Q03,
churn rate decreased from 2.4%. Voluntary churn in 1Q04 resulted
in the disconnection of 2,429 lines, a rate of 0.6%, the same
rate registered in 4Q03 with 2,273 disconnected lines.
Involuntary churn resulted in the disconnection of 6,195 lines,
a rate of 1.6%, which is lower than the 7,029 disconnected
lines, or 1.8% during 4Q03.

During 1Q04, net additions for Wholesale customers were positive
in 120 lines, which compares to 610 positive net additions
during 1Q03 and to 70 negative net additions during 4Q03.

CUSTOMERS:

Total customers grew 8% to 102,332 at the end of 1Q04, from
94,446 at the end of 1Q03, and 1% when compared to 101,137
customers as of the end of 4Q03.

The growth in number of customers by region was distributed as
follows: (i) in Mexico City customers increased by 4% from 1Q03
and 1% when compared to 4Q03; (ii) in Puebla customers grew 13%
from 1Q03 and 1% when compared to 4Q03; and, (iii) in Queretaro,
the number of customers increased 3% from 1Q03 and decreased 1%
when compared to 4Q03.

The change in the number of customers by category was the
following: (i) business customers decreased by 1% from 1Q03 and
increased 1% when compared to 4Q03; and, (ii) residential
customers increased by 9% from 1Q03 and by 1% from 4Q03.

In our 4Q03 Earnings Report we misstated the number of customers
for 3Q03. The customers count for the last six quarters is:

CUSTOMERS       4Q02    1Q03    2Q03    3Q03     4Q03     1Q04
Business        3,934   3,795   3,738    3,722    3,734    3,753
Residential    86,016  90,651  94,569   96,710   97,403   98,579
TOTAL          89,950  94,446  98,307  100,432  101,137  102,332
Mexico         43,185  45,136  46,148   46,395   46,536   47,079
Puebla         44,813  46,926  49,570   51,424   52,121   52,805
Queretaro       1,952   2,384   2,589    2,613    2,480    2,448


REVENUES:

Revenues for 1Q04 increased 6% to Ps$187.3 million, from
Ps$176.8 million reported in 1Q03. Voice revenues for 1Q04
increased 3% to Ps$158.4 million, from Ps$153.4 million during
1Q03, driven by a 7% increase in voice lines partially offset by
a 3% decrease in ARPU. Data revenues for 1Q04 were Ps$10.5
million (including Ps$3.3 million of non-recurring revenues from
the installation of back-bone capacity to a single customer, for
which the recurring revenue for this new lease of capacity
agreement will be US$5.5 thousand per month for 108 months) and
contributed 2% of total revenues; during 1Q03 data revenues were
Ps$4.2 million. Wholesale revenues for 1Q04 were Ps$18.4
million, a 4% decrease from Ps$19.2 million in 1Q03.

Revenues for 1Q04 decreased 13% to Ps$187.3 million, from
Ps$215.8 million reported in 4Q03. Voice revenues for 1Q04
decreased 1% to Ps$158.4 million, from Ps$159.4 million during
4Q03. Data revenues in 1Q04 decreased 65% to Ps$10.5 million
(including Ps$3.3 million non-recurring revenues from the
installation of back-bone capacity to a single customer) from
Ps$30.0 million during 4Q03, when we recognized non-recurring
revenues of Ps$23.7 from one single customer. During 1Q04,
revenues from Wholesale customers decreased 30% to Ps$18.4
million, from Ps$26.4 million in 4Q03.

COST OF NETWORK OPERATION:

Cost of Network Operation in 1Q04 was Ps$68.0 million, with no
change when compared to Ps$67.8 million in 1Q03. Over the same
period, outbound traffic grew 2%, showing an improvement on a
cost per minute basis. The Ps$0.2 million increase in Cost of
Network Operation was generated by: (i) Ps$1.3 million, or 3%
decrease in network operating services, mainly driven by Ps$3.1
million higher calling party pays charges as traffic increased
and a higher number of lines were in service, together with
Ps$1.0 million higher cost of circuits and ports, partially
offset by a Ps$5.1 million reduction of long distance reselling
cost as a result of lower reselling rates and better routing of
long distance traffic, and Ps$0.3 million lower cost of our
AsistelMax service; (ii) Ps$5.6 million, or 44% increase in
technical expenses basically as a consequence of higher
maintenance costs; and, (iii) Ps$4.1 million or 64% decrease
installation expenses and cost of disconnected lines.

Cost of Network Operation decreased 12% quarter-over-quarter
when compared to Ps$77.1 million in 4Q03. Network operating
services decreased Ps$0.3 million, or 1% as a result of the
combined effect of Ps$1.1 million higher calling party pays
charges, as traffic increased, and Ps$1.4 million lower long
distance reselling cost as a result of lower reselling rates and
better routing of long distance traffic. Technical expenses
remained even at Ps$18.3 million, and installation expenses and
cost of disconnected lines decreased Ps$8.8 million, or 79%. The
reduction in installation expenses is the result of the
recognition in 4Q03 of installation charges associated with the
installation of capacity to one single customer. When we compare
cost per minute on a traffic-related cost basis, cost per minute
improved as outbound traffic increased 2% while network
operating services remained at the same level that in 1Q03. On a
cost per minute basis, there was no improvement when compared to
the previous quarter, as outbound traffic decreased 21% while
Cost of Network Operation decreased 12%.

Gross margin improved from 62% in 1Q03 to 64% in 1Q04, which
also was at the same level of 4Q03.

SG&A:

SG&A expenses were Ps$79.3 million in 1Q04, which compares
favorably to Ps$113.5 million in 1Q03. The 30% decrease was
mainly driven by: (i) lower salaries, wages and benefits of
Ps$27.9 million originated by the severance expense recognized
in March 2003 as part of our restructuring process; (ii) lower
leases of Ps$5.2 million; (iii) lower bad debt reserve of Ps$3.4
million; and, (iv) lower sales commissions of Ps$0.8 million.
Lower expenses were partially offset by: (i) higher consulting
fees of Ps$1.0 million; (ii) higher maintenance expenses of
Ps$1.0 million; and, (iii) higher general, advertising and
insurance expenses of Ps$1.1 million.

SG&A expenses in 1Q04 decreased 11%, from Ps$89.6 million in
4Q03. This variation was mainly driven by: (i) lower salaries,
wages and benefits of Ps$13.7 million; (ii) lower leases and
maintenance of Ps$2.0 million; and, (iii) lower consulting fees
of Ps$0.5 million. Lower expenses were partially offset by: (i)
higher advertising expenses of Ps$1.2 million; (ii) higher bad
debt reserve of Ps$1.2 million; (iii) higher sales commissions
of Ps$1.0 million; and, (iv) higher general and insurance
expenses of Ps$2.5 million.

EBITDA:

EBITDA for 1Q04 was positive Ps$40.1 million, compared to
negative Ps$4.5 million reported in 1Q03, and positive Ps$49.2
million registered in 4Q03. EBITDA margin improved from negative
3% in 1Q03 to positive 23% in 3Q03, and declined to positive 21%
in 1Q04.

This is the 4th consecutive quarter that Maxcom reports positive
EBITDA. Cumulative EBITDA for the last four quarters was
Ps$151.2 million.

CAPITAL EXPENDITURES:

Capital Expenditures for 1Q04 were Ps$23.0 million, a 32%
decrease when compared to Ps$33.9 million in 1Q03, and a 13%
decrease when compared to Ps$26.5 million in 4Q03.

CASH POSITION:

Maxcom's cash position at the end of 1Q04 was Ps$50.7 million in
Cash and Cash Equivalents, compared to Ps$48.1 million at the
end of 1Q03. Cash and Cash Equivalents at the end of 4Q03 were
Ps$42.4 million.

RECENT DEVELOPMENTS:

On March 26, 2004, the Federal Communications Commission (FCC)
granted Maxcom USA, Inc., a wholly owned subsidiary of Maxcom
Telecomunicaciones, a license to provide international
telecommunications services in the United States (License 214).
The license granted will allow Maxcom to expand its current
service offering and business capabilities.

RECENT ACCOUNTING PRONOUNCEMENTS:

The provisions of Statement C-15 "Impairment of the Value of
Long-Lived Assets and their disposal", issued by the Mexican
Institute of Public Accountants ("MIPA"), went into effect on
January 1, 2004. That statement establishes general criteria for
the identification and, if applicable, recording of losses from
impairment or decrease of value of long-lived tangible and
intangible assets, including goodwill. We carried out as of
January 1, 2004, a study to determine value in use of our long-
lived assets. Such study identified a Ps$56.9 million impairment
loss, which was recorded in the Income Statement for the period
commencing on January 1, 2004.

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering Local, Long
Distance and Internet & Data services in greater metropolitan
Mexico City, Puebla and Queretaro.

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


UNEFON: Appoints Principal Executive Officers
---------------------------------------------
Unefon Holdings, S.A. de C.V., the owner of a 46.5% equity
interest in Unefon, S.A. de C.V. (BMV: UNEFONA) and a 50%
interest in Cosmofrecuencias, S.A. de C.V., announced Friday
that it has appointed its principal executive officers, and that
it is pursuing the registration process to have its shares
listed on the Mexican Stock Exchange.

In October of 2003, the board of directors of TV Azteca, S.A. de
C.V. (NYSE: TZA; BMV: TVAZTCA) unanimously approved a management
initiative to spin-off TV Azteca's 46.5% equity interest in
Unefon, the Mexican mobile telephony operator, and its 50%
interest in Cosmofrecuencias, a wireless broadband Internet
access provider. In December of 2003, after the shareholders of
TV Azteca approved the spin-off of these telecommunications
assets, Unefon Holdings was formed as a separate legal entity
from TV Azteca to hold such interests.

Unefon Holdings announced Friday the appointment by its board of
directors of the company's principal officers: Diego Foyo as
Chief Executive Officer and Hector Romero as Chief Financial
Officer.

Mr. Foyo has 29 years of experience in top management and
financial positions in large public Mexican corporations such as
FEMSA, where he served as executive vice-president of planning
and executive vice-president of human resources, as well as
Grupo Financiero Banorte, where he served as general
comptroller. Mr. Foyo is also a trustee of the Instituto
Tecnologico y de Estudios Superiores de Monterrey (ITESM), an
internationally recognized Mexican university.

Mr. Romero was a securities analyst with two prestigious Mexican
stock- brokerage houses for a decade before joining Grupo
Salinas as director of investor relations three years ago. He
has also served as director of finance for Azteca America, TV
Azteca's venture in the United States. Mr. Romero also serves as
an independent director of the board of Operadora Valmex, a fund
management company in Mexico.

"The creation of Unefon Holdings is the culmination of a long
process to meet market demands that TV Azteca's
telecommunications investments be spun- off," said Diego Foyo.

Unefon Holdings expects to be approved for a listing on the
Mexican Stock Exchange during the second quarter of 2004, at
which time the shares of Unefon Holdings would be publicly
distributed pro-rata to the shareholders of TV Azteca in Mexico,
for no consideration.

Unefon Holdings also announced that it has made a submission to
the U.S. Securities and Exchange Commission, to be exempt from
the registration requirements of the SEC. If such exemption is
obtained from the SEC, over-the-counter trading of Unefon
Holdings shares may develop in the United States, but Unefon
Holdings will not be listed on any U.S. securities exchange or
quoted on NASDAQ. Once the outcome of this application is
determined, Unefon Holdings will notify the marketplace of such
determination and its plans with respect to the shares of Unefon
Holdings in the United States.

Finally, the company announced that Unefon, S.A. de C.V., its
primary holding, has reported its financial results for the
quarter ending March 31, 2004. Further information regarding
Unefon's financial reports can be obtained from Unefon's website
www.unefon.com.mx and the Mexican Stock Exchange.

Company Profile

Unefon Holdings, S.A. de C.V. is a holding company that owns a
46.5% equity interest in Unefon, S.A. de C.V., the Mexican
mobile telephony operator focused on the mass market, and a 50%
equity interest in Cosmofrecuencias, S.A. de C.V., a wireless
broadband Internet access provider.



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

ABN AMRO BANK: Moody's Confirms Foreign Currency Deposit Ratings
----------------------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's Investors Service confirmed the Caa1 long-term
foreign currency deposit rating and the `Not Prime' short-term
foreign currency deposit rating of ABN AMRO Bank N.V.,
Montevideo Branch.

The outlook on the long-term foreign currency deposit rating
remains negative in line with the outlook of the Uruguayan
country ceiling for deposits.

Moody's also confirmed the National Scale Rating (NSR) for local
currency deposits of ABN AMRO Bank N.V., Montevideo Branch
(Aaa.uy). Moody's noted that its National Scale Rating for the
Uruguayan bank relates only to deposit obligations denominated
in Uruguayan pesos. It does not cover deposits denominated in
foreign currency, as it does not take into account foreign
currency convertibility or transferability risk. Moody's does
not presently issue National Scale Rating for foreign currency
bank deposits in Uruguay.


BANCO A.C.A.C.: Moody's Ups National Scale Rating
-------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's confirmed the Caa1 long-term foreign currency
deposit rating and the `Not Prime' short-term foreign currency
deposit rating of BANCO A.C.A.C., a 98%-owned subsidiary of
Credit Agricole SA.

The outlook on the long-term foreign currency deposit rating
remains negative in line with the outlook of the Uruguayan
country ceiling for deposits.

At the same time, Moody's upgraded the National Scale Rating
(NSR) for local currency deposits of Banco A.C.A.C. S.A. to
Aa3.uy from A3.uy primarily as a result of the increased
financial support of its owner.

Moody's noted that its National Scale Rating for the bank
relates only to deposit obligations denominated in Uruguayan
pesos. It does not cover deposits denominated in foreign
currency, as it does not take into account foreign currency
convertibility or transferability risk. Moody's does not
presently issue National Scale Ratings for foreign currency bank
deposits in Uruguay.

The rating agency also confirmed the E bank financial strength
rating (BFSR) of Banco A.C.A.C.. The E BFSR reflects the bank's
weak financial fundamentals and operating environment, as well
as the continued need for external support.


BANCO DE LA NACION (URUGUAY): Moody's Ups Local Currency Rating
---------------------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's confirmed the Caa2 long-term foreign currency
deposit rating and the `Not Prime' short-term foreign currency
deposit rating of Banco de la Nacion Argentina (Uruguay).

The outlook for the long-term foreign currency deposit rating of
the bank, which is below the country ceiling, remains stable.

At the same time, Moody's upgraded the bank's local currency
deposit rating to B1.uy from Caa1.uy reflecting the same risk as
its Argentine head office.


BANCO DE LA REPUBLICA ORIENTAL: Moody's Assigns Ratings
-------------------------------------------------------
Moody's Investors Service assigned the following ratings to
Banco de la Republica Oriental del Uruguay (BROU):

- E bank financial strength rating (BFSR) with stable outlook
- Caa1 long-term foreign currency deposit rating, with negative
outlook
- `Not Prime' short-term foreign currency deposit rating
- Aaa.uy National Scale Rating for local currency deposits

BROU is 100% owned by the Republic, which unconditionally
guarantees all of its obligations.

Moody's said that its foreign currency deposit rating, as
opinion of default as well as loss in the event of default,
encompasses external support factors such as ownership and/or
institutional support. The foreign currency rating is
constrained by Moody's country ceilings for Uruguay. The outlook
for BROU's foreign currency rating is negative, as in the case
of the country ceilings.

The agency explained that its Aaa.uy National Scale rating for
the local currency deposits of BROU reflects the view that the
bank is "too big to fail" because of the size and importance of
its deposit franchises. It would therefore likely enjoy priority
for liquidity or other mechanisms of support from the Central
Bank of Uruguay in situations of high stress.

Moody's also noted that its National Scale Rating for BROU
relates only to deposit obligations denominated in Uruguayan
pesos. It does not cover deposits denominated in foreign
currency, as it does not take into account foreign currency
convertibility or transferability risk. Moody's does not
presently assign National Scale Ratings for foreign currency
bank deposits in Uruguay.

Moody's noted that the E BFSR of BROU reflects its weak
financial fundamentals and operating environment, as well as the
continued need for external support.

BROU was Uruguay's largest bank with $US4.5 billion in assets as
of September 30, 2003 and 38% market share in deposits and
loans.


BANCO HIPOTECARIO (URUGUAY): Moody's Ratings Released
-----------------------------------------------------
Moody's Investors Service assigned the following ratings to
Banco Hipotecario Del Uruguay (BHU):

- E bank financial strength rating, with stable outlook

- Caa1 long-term foreign currency deposit rating, with negative
outlook

- `Not Prime' short-term foreign currency deposit rating

- Aaa.uy National Scale Rating for local currency deposits

BHU is 100% owned by the Republic, which unconditionally
guarantees all of its obligations.

Moody's said that its foreign currency deposit rating, as
opinion of default as well as loss in the event of default,
encompasses external support factors such as ownership and/or
institutional support. The foreign currency rating is
constrained by Moody's country ceilings for Uruguay. The outlook
for BHU's foreign currency rating is negative, as in the case of
the country ceilings.

The agency explained that its Aaa.uy National Scale rating for
the local currency deposits of BHU reflects the view that the
bank is "too big to fail" because of the size and importance of
its deposit franchises. It would therefore likely enjoy priority
for liquidity or other mechanisms of support from the Central
Bank of Uruguay in situations of high stress.

Moody's also noted that its National Scale Rating for BHU
relates only to deposit obligations denominated in Uruguayan
pesos. It does not cover deposits denominated in foreign
currency, as it does not take into account foreign currency
convertibility or transferability risk. Moody's does not
presently assign National Scale Ratings for foreign currency
bank deposits in Uruguay.

Moody's noted that the E BFSR of BHU reflects its weak financial
fundamentals and operating environment, as well as the continued
need for external support.

As of September 30, 2003, BHU was the second largest bank and
the largest provider of mortgage financing in Uruguay with $1.2
billion in assets.


BANCO SANTANDER: Foreign Currency Deposit Ratings Confirmed
-----------------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's Investors Service confirmed the Caa1 long-term
foreign currency deposit rating and the `Not Prime' short-term
foreign currency deposit rating of Banco Santander, S.A.
(Uruguay).

The outlook on the long-term foreign currency deposit rating
remains negative in line with the outlook of the Uruguayan
country ceiling for deposits.

Moody's also upgraded the National Scale Rating (NSR) for local
currency deposits of Banco Santander, S.A. (Uruguay), a 100%-
owned subsidiary of Santander Central Hispano, to Aa1.uy from
A1.uy, primarily as a result of the increased financial support
of its owner.

Moody's noted that its National Scale Rating for the Uruguayan
bank relates only to deposit obligations denominated in
Uruguayan pesos. It does not cover deposits denominated in
foreign currency, as it does not take into account foreign
currency convertibility or transferability risk. Moody's does
not presently issue National Scale Ratings for foreign currency
bank deposits in Uruguay.

The rating agency also confirmed the E bank financial strength
rating (BFSR) of Banco Santander, reflecting the bank's weak
financial fundamentals and operating environment, as well as the
continued need for external support.


BANCO SURINVEST: Moody's Cuts LTFC Deposit Rating to Caa2
---------------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's downgraded the long-term foreign currency
deposit rating of Banco Surinvest S.A. to Caa2, from Caa1. The
outlook for the rating, which is below the country ceiling,
remains stable.

At the same time, Moody's confirmed the E bank financial
strength rating (BFSR) of Banco Surinvest. The E BFSR reflects
the bank's weak financial fundamentals and operating
environment, as well as the continued need for external support.


BANKBOSTON: Moody's Confirms Ratings
------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's Investors Service confirmed the Caa1 long-term
foreign currency deposit rating and the `Not Prime' short-term
foreign currency deposit rating of BankBoston, N.A. (Uruguay).

The outlook on the long-term foreign currency deposit rating
remains negative in line with the outlook of the Uruguayan
country ceiling for deposits.

Moody's also confirmed the National Scale Rating (NSR) for local
currency deposits of BankBoston (Aaa.uy)


BBVA URUGUAY: S&P Affirms Ratings
---------------------------------
Standard & Poor's Ratings Services said Friday that it affirmed
its 'B-' long-term counterparty credit rating on Banco Bilbao
Vizcaya Argentaria Uruguay S.A. (BBVA Uruguay). The outlook is
stable, reflecting the outlook of the sovereign credit ratings
on Uruguay (Oriental Republic of).

The ratings on BBVA Uruguay are constrained by the ratings on
the Uruguayan sovereign. "The support of its parent, Banco
Bilbao Vizcaya Argentaria S.A., has been amply proven in recent
years by means of the implementation of contingent liquidity
lines amid deposit runs during the Uruguayan financial crisis,
the achievement of full ownership of its Uruguayan subsidiary in
June 2002, and the facilitation of the reduction of the bank's
indirect exposure to Argentine risk in March 2004," said
Standard & Poor's credit analyst Carina Lopez.

BBVA Uruguay is the third-largest Uruguayan private bank in
terms of deposits and loans, and the second by equity. As of
Dec. 31, 2003, the bank had total deposits of $351.4 million,
loans to the nonfinancial private sector of $123 million, and
equity of $59.2 million. During 2003, like most of the entities
that still operate in Uruguay's financial system, the bank
managed to recover high liquidity levels through a strong
increase in the volume of deposits and implemented
rationalization efforts to adjust the bank's network to the new
reality of the Uruguayan financial system. In this way, during
2004, the institution's results will be reinforced by the
efficiencies achieved with the reduction in structure, by its
already growing fee business, and by the consolidation of
financial margins through the application of excess liquidity to
the cancellation of costly funding, the investment in short-term
public securities, and a moderate increase in lending.

The bank operates through eight branches, four in the
metropolitan area of Montevideo and the rest in the interior of
the country, including one office in Punta del Este, the most
important Uruguayan seaside resort.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118
           Marta Castelli, Buenos Aires (54) 114-891-2128


CACDU: Fitch Withdraws Ratings
------------------------------
Fitch Ratings, the international rating agency, withdrew Friday
the long-term foreign currency and support ratings assigned to
Uruguay's Primera Cooperativa de Ahorro y Credito de Paysandu
(CACDU) of 'CCC+' and '5', respectively, following its merger
with Cooperativa Nacional de Ahorro y Credito (COFAC). At the
same time, we have withdrawn CACDU's long-term national rating
of 'BB(Ury)'.

CACDU was a credit cooperative with a retail business focused in
the Paysandu County of Uruguay. In December of 2001, the members
of CACDU and COFAC agreed to merge the two cooperatives. COFAC
is the largest cooperative within the Uruguayan financial system
in terms of deposits. The transaction received the approval from
the Ministry of Economy during 2003, although systems and
operations have been harmonized under the standards of COFAC
since the agreement.

CONTACT:  Ana Gavuzzo +5411 4327 2444, x73, Buenos Aires
          Maria Fernanda Lopez +5411 4327 2444, x70, Buenos
Aires
          Peter Shaw +1-212-908-0553, New York
          Linda Hammel +1-212-908-0303, New York

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


CITIBANK N.A.: S&P Affirms Ratings; Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services said Friday that it affirmed
its 'B-' long-term counterparty credit rating on Citibank N.A.
(Uruguay Branch). The outlook is stable, reflecting the outlook
of the sovereign credit ratings on Uruguay (Oriental Republic
of).

The ratings are based on the entity being a branch of Citibank
N.A. New York, NY (AA/Stable/A-1+), and its obligations being
obligations of the bank, constrained by Uruguayan sovereign
risk. "The bank would be expected to ensure full and timely
payment of the branches' obligations, absent direct sovereign
intervention," said Standard & Poor's credit analyst Carina
Lopez.

Citibank's presence in Uruguay dates to 1915, and with total
assets of $304 million as of Dec. 31, 2003, it ranked seventh
among the largest private banks in the system. Compared to that
of other countries, the Uruguayan operation is relatively small
and concentrated in the corporate business. Additionally,
following the Uruguayan financial crisis in 2002, the volume of
the entity's operations reduced significantly, as was the case
with the rest of the local banking system. The strategy is in
line with that of Citibank's Emerging Markets group, however,
which is mainly focused on developing a wide array of
traditional and nontraditional products offered to corporations
and individuals. Additionally, Citibank Uruguay actively works
with the Uruguayan public sector.

Citibank Uruguay follows the same strict policies and procedures
of Citigroup worldwide, mainly in the risk management, credit,
and treasury areas, and in being part of the Citibank global
network, benefits from ample financial flexibility and support
in terms of business and product development.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118
           Marta Castelli, Buenos Aires (54) 114-891-2128


DISCOUNT BANK: S&P Affirms Ratings
----------------------------------
Standard & Poor's Ratings Services said Friday that it affirmed
its 'B-' long-term counterparty credit rating on Discount Bank
Latin America S.A. (DBLA). The outlook is stable, reflecting the
outlook of the sovereign credit ratings on Uruguay (Oriental
Republic of).

The ratings on DBLA are constrained by the ratings on the
Uruguayan sovereign. DBLA has a good overall financial position
in the Uruguayan financial system, stemming from the relatively
low risk embedded in the bank's business and operations. The
bank also enjoys a very liquid balance sheet. "Due to its better
relative performance, DBLA is in a unique position to take
advantage of future business opportunities resulting from the
closure and reduction in operations of other financial
institutions in the Uruguayan market," said Standard & Poor's
credit analyst Carina Lopez.

Total assets as of Dec. 31, 2003, amounted to $310.8 million, of
which 70.13% were liquid assets, and only 25.4% were loans.
91.4% of the operations are conducted in U.S. dollars. DBLA is
100% controlled by Israel Discount Bank of New York, a
subsidiary totally controlled by Discount Bancorp Inc., a
holding company incorporated in Delaware. The bank has its
headquarters in Montevideo, and 10 branches in the most
important neighborhoods of the city as well as in Punta del
Este, a prominent Uruguayan seaside resort.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118
           Marta Castelli, Buenos Aires (54) 114-891-2128


LLOYDS TSB (URUGUAY): Moody's Confirms Caa1 LTFC Deposit Rating
---------------------------------------------------------------
In connection with its annual review of the Uruguayan banking
system, Moody's confirmed the Caa1 long-term foreign currency
deposit rating and the `Not Prime' short-term foreign currency
deposit rating of Lloyds TSB Bank plc (Uruguay).

The outlook on the long term foreign currency deposit rating
remains negative in line with the outlook of the Uruguayan
country ceiling for deposits.

Moody's also confirmed the National Scale Rating (NSR) for local
currency deposits of Lloyds TSB Bank plc (Uruguay) (Aaa.uy).

Moody's noted that its National Scale Ratings for the Uruguayan
bank relates only to deposit obligations denominated in
Uruguayan pesos. It does not cover deposits denominated in
foreign currency, as it does not take into account foreign
currency convertibility or transferability risk. Moody's does
not presently issue National Scale Ratings for foreign currency
bank deposits in Uruguay.



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

SIDOR: Halts Shipments During Strike
------------------------------------
With striking workers blocking entrances and forcing other
employees out, Venezuelan steel company Siderurgica del Orinoco
(Sidor) said Friday it was suspending all shipments, Dow Jones
says, citing a company notice Sidor published Friday in several
local newspapers.

Sidor "has decided to suspend its administrative activities ...
while this situation of violence promoted by the union
persists," the notice said. About 11,000 workers went on strike
April 22 to demand back pay and ownership of 20% of Sidor's
stock. The strike, Sidor has said, is already costing the
company US$3 million a day in losses.

The rising tension was punctuated by the deployment of National
Guard troops around the company's installations in the southeast
state of Bolivar on Friday. The company said it only wanted to
"guarantee the physical integrity of its workers." It asked
suppliers to suspend delivery of materials and services to its
plants "while we are hostages of illegal actions."

Sidor, jointly owned by the Venezuelan government and a
consortium of foreign firms, ships steel products to the Andean
region, the United States, Mexico and Central America.



                            ***********


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
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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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