TCRLA_Public/040520.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, May 20, 2004, Vol. 5, Issue 99

                            Headlines


A R G E N T I N A

AUTOPISTAS DEL SOL: Bonds Unchanged At Junk Status
AYRES ASOCIADOS: Bankruptcy Initiated by Court Order
BANCO B.I. CREDITANSTALT: Fitch Reaffirms Bonds' Junk Rating
BANCO DE GALICIA: Junk Bond Ratings Left Unchanged
BANCO FRANCES: Local Fitch Ups Ratings on $1B of Bonds

BANCO RIO: US$1.75B of Bonds Get BBB(arg) Rating from Fitch
BOEING S.A.: Court OKs Creditors Bankruptcy Motion
CLASS: Outlines Schedule for Report Submissions
CLINICA COLON: Court Authorizes Reorganization
CONTAINER LEASING SACII: Debt Payments Halted, Set To Reorganize

CTI MOVIL: Slim Increases Planned Investment
GAIN TRUST: US$140M Debt Issue Reaches Default Level
HIDROELECTRICA PIEDRA: Financial Trusts Get 'D(arg)' From Fitch
LA FORJA: Plans to Liquidate Assets
LECTORES Y LIBROS: Judge Approves Bankruptcy

MEGATOWN SUDAMERICANA: Court Rules Bankruptcy, Names Receiver
MELEAM: Court Favors Creditor's Liquidation Plea
METROGAS: Expects Government to Tackle Rate Freeze Next Month
NEOFUNE: Court Approves Creditor's Bankruptcy Motion
NETUNIVERSITARIA: Begins Bankruptcy Process

RESIDENCIA GERIATRICA: Nursing Home Declared Bankrupt
SANEO: Local S&P Issues Financial Trusts 'raC' Rating
S.J.T.: Enters Bankruptcy After Court Orders
SYMBROV: Court Issues Bankruptcy Ruling
TGN CRIBS: Financial Trusts Remain in Default

YACYRETA: Single Investor May Shore Up Dam Project


B E R M U D A

LORAL SPACE: NY Court Orders ERISA Violations Suit Consolidated


B R A Z I L

CFLCL: Shareholders' Dispute Wanes Pending New Strategies
COPEL: Plans BRL400mln Investment This Year
ODEBRECHT: Snags Olmos Project Concession
PARMALAT: Moves Toward Creditor Approval On Restructuring
SADIA: Local Currency Rating Raised to 'BB'

TELEMAR: TNE to Sell iG Stake
TUPY: Posts Drop in 1Q04 Net Profit


C O L O M B I A

CHIQUITA BRANDS: Payments Probe Could Guide Other Firms


D O M I N I C A N   R E P U B L I C

TRICOM: To Commence Trading On The OTC Bulletin Board


M E X I C O

ALESTRA: Fitch Says 'B-' Ratings Still Apply
COPAMEX: Gets US$175mln From IFC, Citigroup for Restructuring
XIGNUX: Moody's Confirms Existing, Assigns New Ratings


T R I N I D A D   &   T O B A G O

BWIA: Rising Fuel Costs May Prompt Flight Cuts


U R U G U A Y

PLUNA: Aerolineas Drops Acquisition Plans


     - - - - - - - - - -


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

AUTOPISTAS DEL SOL: Bonds Unchanged At Junk Status
--------------------------------------------------
A total of US$380 million worth of corporate bonds issued by
Autopistas del Sol S.A maintain an 'raD' rating from Standard &
Poor's International Ratings, Ltd. Sucursal Argentina, the
Comision Nacional de Valores (CNV) reveals in its Web site.

The bonds that bear the rating are:

- US$170 million worth of 'Simple Issue' described as
"Obligaciones Negociables simples, autorizadas por AGO de fecha
16.5.97." These bonds will mature on August 2, 2004; and

- US$210 million worth of 'Simple Issue' described as
"Obligaciones Negociables simples, autorizadas por AGO de fecha
16.5.97." These bonds will mature on August 3, 2009.

The rating, which is based on the Company's finances as of March
31, 2004, is assigned to financial obligations that are
currently in default. The ratings agency said that the same
rating may be issued if interest or principal payments are not
made on the due even if the applicable grace period has not
expired.

In the meantime, the same ratings agency assigned an 'raB+'
rating to the following corporate bonds:

- US$49.3 million worth of 'Simple Issue' described as "ONS con
descuento sin cotización a 5 años de vencimiento;"

- US$215.2 million worth of 'Simple Issue' described as "ONS a
tasa de interés escalonada creciente a 10 años de vencimiento;"
and

- US$112.3 million worth of 'Simple Issue' described as
"Obligaciones Neg. con descuento con cotización a 5 años de
vencimiento."

The maturity dates of the issues were not revealed.

S&P said that the rating, which is based on the Company's
finances as of March 31 this year, denotes weak protection
parameters relative to other issues in Argentina.


AYRES ASOCIADOS: Bankruptcy Initiated by Court Order
----------------------------------------------------
Ayres Asociados S.R.L. was declared bankrupt by Buenos Aires
Court No. 22 after the Company defaulted on its debt payments.
Infobae reports the liquidation process will proceed under the
supervision of Mr. Federico Alberto Mansbach, the court-
appointed receiver.

Mr. Mansbach will receive creditors' proofs of claims for
verification until July 6, 2004. The verified claims will form
the basis of the individual reports, which the court requires
for submission on September 1, 2004. A general report regarding
the status of the bankruptcy will be presented on October 13,
2004.

The bankruptcy will end with the liquidation of Company's assets
to satisfy creditors' claims.

CONTACT: Mr. Federico Alberto Mansbach, Receiver
         Tucuman 1506
         Buenos Aires


BANCO B.I. CREDITANSTALT: Fitch Reaffirms Bonds' Junk Rating
------------------------------------------------------------
Some US$250 million worth of corporate bonds issued by Banco
B.I. Creditanstalt S.A. under 'Program' remain in default, says
Fitch Argentina Calificadora de Riesgo S.A.. Argentina's
securities regulator, the CNV, described the affected bonds,
which matured in July 2000, as "Programa Global de Emision de
Oblig. Negociables a Mediano Plazo."

The rating action was taken based on the bank's financial health
as of December 31, 2003.


BANCO DE GALICIA: Junk Bond Ratings Left Unchanged
--------------------------------------------------
A total of US$412 million worth of corporate bonds issued by
Banco de Galicia y Buenos Aires under 'Simple Issue' remain at
junk level.

According to the CNV, Fitch Argentina Calificadora de Riesgo
S.A. is maintaining a 'D(arg)' rating to the following bonds:

- US$200 million of "Obligaciones Negociables a Largo Plazo;"

- US$150 million of "Obligaciones Negociables;" and

- US$62 million of "Obligaciones Negociables (con garantia
  MIGA)."

The CNV didn't indicate the maturity dates of these issues

Simultaneously, the local arm of Fitch Ratings International
assigned a 'BB(arg)' rating to the following bonds issued by
Banco de Galicia under 'Program:'

- US$43 million of "Programa Global Clase 7" expiring on June
  25, 2003; and

- US$73 million of "Programa Global Clase 6" (maturity date not
  indicated).

The rating actions were taken based on the bank's financial
status as of December 31, 2003.

Banco de Galicia y Buenos Aires SA (GALI.BA), the main unit of
Argentine financial services company Grupo Galicia Financiero
(GGAL), registered a loss of ARS100.92 million in the first
quarter of 2004.

CONTACT:  BANCO DE GALICIA Y BUENOS AIRES
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman


BANCO FRANCES: Local Fitch Ups Ratings on $1B of Bonds
------------------------------------------------------
Fitch Argentina Calificadora de Reisgo S.A. upgraded the rating
of US$1 billion worth of corporate bonds issued by BBVA Banco
Frances S.A. from 'B(arg)+' to 'BBB(arg),' according to the CNV.

The affected bonds were issued under Program and described as
"Programa de Obligaciones Negociables." The maturity date of the
issue was not revealed.

The rating action, which was taken based on the Company's
financial status as of December 31, 2003, means that the issue
carries an adequate credit risk relative to other issues in
Argentina.

Banco Frances is Argentina's third largest private bank in terms
of assets and the largest in terms of deposits.

CONTACT:  BBVA Banco Frances SA
          199 Reconquista
          Buenos Aires
          Argentina 1003
          Phone: +54 11 4346 4000
          Home Page: http://www.frances.com.ar
          Contacts:
          Jaime Guardiola Romajaro, Chairman


BANCO RIO: US$1.75B of Bonds Get BBB(arg) Rating from Fitch
-----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a 'BBB(arg)
rating to some US$1.75 billion worth of corporate bonds issued
by Banco Rio de la Plata S.A.

Argentina's securities regulator, the CNV, enumerates the
affected bonds as follows:

- US$250 million worth of 'Simple Issue' described as
  "Obligaciones negociables por USD 250 millones;"

- US$500 million worth of 'Program' described as "Programa
  Global de Obligaciones Negociables de Corto Plazo;" and

- US$1 billion worth of 'Program' described as "Programa de
  Obligaciones Negociables tramo subordinado por
  US$1000.000.000."

The maturity dates of all the issues were not disclosed.

The rating action, which was taken based on the Company's
financial status as of December 31, 2003, means that the issue
carries an adequate credit risk relative to other issues in
Argentina.

Banco Rio de la Plata, the Argentine subsidiary of Spanish
financial group Grupo Santander (NYSE: STD), is one of
Argentina's three largest private sector banks.

CONTACT:  BANCO RIO DE LA PLATA S.A.
          Bartolome Mitre 480
          1036 Buenos Aires, Argentina
          Phone: +54-14-341-1081-1580
          Fax: +54-14-341-1074-1084
          Home Page: http://www.bancorio.com.ar
          Contacts:
          Ana Patricia B. S. de Sautuola y O'Shea, Chairman
          Jose L. E. Cristofani, Executive Vice Chairman and CEO
          Pablo Caride, Corporate Finance


BOEING S.A.: Court OKs Creditors Bankruptcy Motion
--------------------------------------------------
Buenos Aires-based Boeing S.A. received orders from the city's
Court No. 18 to begin the bankruptcy procedings, reports
Infobae. The process will culminate with the disposal of the
Company's assets in order to repay its creditors.

The court, assisted by Clerk No. 36, appointed Mr. Xilef Irureta
as receiver, who will authenticate proofs of claim until June
30, 2004. Reviewing 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:  Boeing S.A.
          Avenida Cordoba 3826
          Buenos Aires

          Mr. Xilef Irureta, Receiver
          Parana 145
          Buenos Aires


CLASS: Outlines Schedule for Report Submissions
-----------------------------------------------
Infobae reports that Court No. 9 of Buenos Aires has set the
deadline for filing individual reports for the Class S.R.L.
bankruptcy case on August 31, 2004. A general report must also
be presented on October 12, 2004. Mr. Raul Jose Abella is the
receiver for this case.

CONTACT:  Class S.R.L.
          Tucuman 255
          Buenos Aires

          Mr. Raul Jose Abella, Receiver
          Uruguay 660
          Buenos Aires


CLINICA COLON: Court Authorizes Reorganization
----------------------------------------------
Lomas de Zamora Court No. 12 has approved a request by Clinica
Colon S.R.L. to start its reorganization process. According to
Infobae, the Court granted the Company's "Concurso Preventivo"
motion, appointing Ms. Patricia Monica Narduzzi as receiver.

Creditors have until June 1, 2004 to submit their proofs of
claim to the receiver, who will verify these claims and submit
them to court as individual reports on July 8, 2004. After these
reports are processed in court, the receiver will then prepare
the general report and present it to court on September 13,
2004.

The informative assembly, the last stage of a reorganization
process, will be held on December 14, 2004.

CONTACT: Ms. Patricia Monica Narduzzi
         Rodriguez Peña 296
         Banfield
         Lomas de Zamora


CONTAINER LEASING SACII: Debt Payments Halted, Set To Reorganize
----------------------------------------------------------------
Judge Villanueva of Buenos Aires Court No. 23 is reviewing the
merits of Container Leasing Sacii y E's petition to reorganize.
La Nacion recalls that the Company filed the petition following
cessation of debt payments. A reorganization will allow
Container Leasing to avoid bankruptcy by negotiating a
settlement with its creditors.

The Company, a container transport operation, stated assets of
US$1,763,375.44 and liabilities of US$805,620.25 in its filing
with the Court. Clerk No.46, Dr. Cufari, is assisting the court
on the Company's case.

CONTACT: Container Leasing Sacii y E
         Viamonte 1328


CTI MOVIL: Slim Increases Planned Investment
--------------------------------------------
Latin America's richest man Carlos Slim is investing US$150
million for the infrastructure projects for 2004 of CTI Movil,
the mobile Argentine unit of America Movil (AMX) (AMXL),
according to Reuters. The Mexican billionaire, who had
originally planned to invest the US$150 million in CTI over two
years instead of one, said Tuesday during a visit to Argentina
that CTI, which has around 17% of the local mobile market share,
also aims to reach 90% population coverage by the end of the
year.

"The investments (in CTI) are even bigger than we had announced,
the process has been sped up, there has been a strong recovery
in the company and the market," Mr. Slim said.

Mr. Slim controls America Movil, the biggest mobile telecoms
firm in Latin America.


GAIN TRUST: US$140M Debt Issue Reaches Default Level
----------------------------------------------------
Some US$140 million of Gain Trust Titulos de Deuda Vto. 2005
debt security obtained a 'D(arg)' rating from Fitch Argentina
Calificadora de Riesgo S.A. The CNV described the affected
securities as "fideicomiso financiero" but didn't reveal when
the issue will expire.

According to Fitch, financial obligations that bear the 'D(arg)'
rating are currently in default.


HIDROELECTRICA PIEDRA: Financial Trusts Get 'D(arg)' From Fitch
---------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a 'D(arg)'
rating to various financial trusts issued by Hidroelectrica
Piedra del Aguila, according to the CNV.

The financial trusts affected are:

- US$35 million worth of 'Debt Security' described as
  "Subordinados" and expiring on December 29, 2023;


- US$62.5 million worth of 'Debt Security' described as "Serie
  III y Serie IV" and expiring on June 30, 2009; and

- US$94.370 million worth of 'Debt Security' described as "Serie
  I y Serie II" and expiring on December 31, 2009.

A 'D(arg)' rating is assigned to financial commitments that are
currently in default.


LA FORJA: Plans to Liquidate Assets
-----------------------------------
La Forja S.A., operating in Buenos Aires, entered bankruptcy on
orders from the city's Court No. 21, reveals Infobae. Working
with Clerk No. 41, the court assigned Mr. Fidel Augusto Pandolfi
as receiver. He is to verify creditors' claims until August 18,
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.

CONTACT: La Forja S.A.
         La Pampa 5832
         Buenos Aires

         Mr. Fidel Augusto Pandolfi, Receiver
         Capdevilla 3169
         Buenos Aires


LECTORES Y LIBROS: Judge Approves Bankruptcy
--------------------------------------------
Buenos Aires bookstore Lectores Y Libros S.A. was declared
bankrupt after Judge Ferrario of Court No. 6 endorsed the
petition of Editorial Sigmar S.A.C.I. for the Company's
liquidation. Argentine daily La Nacion reports that Editorial
Sigmar has claims totaling US$4,762.10 against Lectores.

The court appointed Mr. Norberto Markel to supervise the
liquidation process as receiver. He will validate creditors'
proofs of claims until August 10, 2004.

CONTACT: Lectores y Libros S.A.
         Alsina 1582
         Buenos Aires

         Mr. Norberto Markel, Receiver
         Tucuman 1657
         Buenos Aires


MEGATOWN SUDAMERICANA: Court Rules Bankruptcy, Names Receiver
-------------------------------------------------------------
Court No. 18 declared the bankruptcy of Megatown Sudamericana
S.A. after the Buenos-Aires based company defaulted on its debt
payments. This declaration opens the way for the liquidation of
the company's assets to repay its creditors.

Infobae reports that the court has assigned Mr. Gustavo Daniel
Micciullo as receiver. He will review creditors' proofs of
claims until August 3, 2004. Clerk No. 36 assists the court on
this case.

CONTACT: Megatown Sudamericana S.A.
         Av L N Alem 693
         Buenos Aires

         Mr. Gustavo Daniel Micciullo, Receiver
         Av Cordoba 1417
         Buenos Aires


MELEAM: Court Favors Creditor's Liquidation Plea
-------------------------------------------------
Obra Social de los Empleados de Comercio y Actividades Civiles
successfully sought the bankruptcy of Meleam S.R.L. after Judge
Fernandez of Court No. 19 declared the Company "Quiebra,"
reports La Nacion.

As such, the footwear company will now start the bankruptcy
process with Ms. Irma Aguilera as receiver. Creditors of the
Company must submit their proofs of claim to the receiver before
August 12, 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.

Obra Social sought for the Company's bankruptcy after the latter
failed to pay debts amounting to US$9,515.55. Dr. Mazonni, Clerk
No. 37, assists the court on the case, which will culminate in
the liquidation of all of its assets.

CONTACT: Meleam SRL
         Florida 834
         Buenos Aires

         Ms. Irma Aguilera, Receiver
         Luis Sáenz Peña 1690
         Buenos Aires


METROGAS: Expects Government to Tackle Rate Freeze Next Month
-------------------------------------------------------------
The chief financial officer of Argentine natural gas
distributor, Metrogas SA (MGS), confirmed Tuesday the company is
expecting the issue of frozen distribution rates in forthcoming
contract negotiations with power and gas utilities will be
addressed by the government in June, Dow Jones relates.

The statement, made by Metrogas CFO Eduardo Villegas during a
conference call Tuesday to discuss the company's results, came
after reports last week that the government, as part of its
efforts to confront a looming energy crisis, now intends to sign
transitional six-month contracts with power and gas providers.

"We have been receiving some signals that they have been getting
some political pressure to try to have a kind of transition
solution before the end of June," Mr. Villegas said. He added
that commitments the government had made about utility contract
negotiations in its letter of intent with the International
Monetary Fund brought about that pressure.

Mr. Villegas stressed that he does not know what the government
proposal would be, but said it should be short-term, and would
address the distribution tariff.

According to energy industry players, the rate freeze, which was
imposed by the government at the beginning of 2001, had led to
the lack of investment in gas production and transport capacity
that, in turn, resulted to the current energy crisis.

Metrogas, which has the gas distribution concession for the
federal district of Buenos Aires city and its surroundings, is
70%-controlled by Spain's Repsol-YPF SA (REP) and the U.K.'s BG
Group PLC (BRG).


NEOFUNE: Court Approves Creditor's Bankruptcy Motion
----------------------------------------------------
Nec Argentina S.A. successfully petitioned for the bankruptcy of
Neofune S.A. after Judge Fernandez of Buenos Aires Court No. 19
ordered the liquidation of Neofune's assets. La Nacion reports
that the bankruptcy petition was filed due to a US$25,344.14
debt Neofune owes to Nec Argentina.

Mr. Aldo Markman, the court-appointed receiver, will
authenticate creditor's claims until August 30, 2004.

CONTACT:  Neofune S.A.
          Lavalle 662
          Buenos Aires

          Mr. Aldo Markman
          Alsina 1441
          Buenos Aires


NETUNIVERSITARIA: Begins Bankruptcy Process
-------------------------------------------
Netuniversitaria Com S.A. will proceed with the liquidation of
its assets following Buenos Aires Court No. 8's order for
"Quiebra Decretada", Infobae reveals. The order places the
Company's properties at the court's disposal for eventual sale
in favor of its creditors.

Mr. Juan A. Giannazzo will act as receiver during the course of
the bankruptcy process. The court has set June 16, 2004 as the
deadline for the verification of creditors' claims. Following
verification by the receiver, individual reports will be
submitted to court on August 13, 2004. A general report will
also be presented on September 27, 2004.

Clerk No. 15 assists the court on this case.

CONTACT: Netuniversitaria Com S.A.
         San Martin 323
         Buenos Aires

         Mr. Juan A Giannazzo, Receiver
         Av de Mayo 1370
         Buenos Aires


RESIDENCIA GERIATRICA: Nursing Home Declared Bankrupt
-----------------------------------------------------
Judge Villanueva of Court No. 23 declared local company
Residencia Geriátrica Bauness S.R.L., a nursing home operating
in Buenos Aires, "Quiebra", relates La Nacion. The court
approved the bankruptcy petition filed by Ms. Edelmira Retamar,
to whom the Company failed to pay debts amounting to
US$4,285.12.

The Company will undergo the bankruptcy process with Ms. Susana
Vacchelli as its receiver. Creditors are required to present
their proofs of claim to the receiver for verification before
June 30, 2004.

Creditors who fail to have their claims authenticated by the
said date will be disqualified from the payments that will be
made after the Company's assets are liquidated at the end of the
bankruptcy process.

Dr. Timpanelli, Clerk of Court No. 45, assists the court on the
case.

CONTACT: Residencia Geriátrica Bauness S.R.L.
         Bauness 2112
         Buenos Aires

         Ms. Susana Vacchelli, Receiver
         Montevideo 571
         Buenos Aires


SANEO: Local S&P Issues Financial Trusts 'raC' Rating
-----------------------------------------------------
Two sets of Saneo I financial trusts were assigned an 'raC'
rating from Standard & Poor's International Ratings, Ltd.
Sucursal Argentina, the CNV reports.

The financial trusts affected are:

- US$51 million worth of Participation Certificates described as
  "Certificados de participacion Senior;" and

- US$188,004,121 worth of Participation Certificates described
  as "Certificados de participacion Junior."

The two issues are set to expire on December 29, 2030.

An 'raC' rating may be given when a bankruptcy petition has been
filed or similar action has been taken, but payments on the
obligation are being continued, said S&P.


S.J.T.: Enters Bankruptcy After Court Orders
--------------------------------------------
S.J.T. S.A. will commence with the bankruptcy process after
Judge Ojea Quintana of Buenos Aires Court No. 12 approved Banco
Credicoop Cooperativo Limitado's request for liquidation,
reports Infobae.

Ms. Silvia Giambone will oversee the bankruptcy proceedings as
the court-appointed receiver. She will receive creditors' claims
until June 5, 2004. Dr. Perea, Clerk No. 23, assists the court
on this case.

CONTACT: S.J.T. S.A.
         Avenida Cordoba 1345
         Buenos Aires

         Ms. Silvia Giambone, Receiver
         Avenida Presidente
         Roque Saenz Pena 651
         Buenos Aires


SYMBROV: Court Issues Bankruptcy Ruling
---------------------------------------
Symbrov S.R.L. will now enter bankruptcy after Buenos Aires
Court No. 22 declared it "Quiebra," reports Infobae. With
assistance from Clerk No. 44, the court named Mr. Daniel Alberto
Del Castillo as receiver. He will verify creditors' claims until
June 30, 2004.

Following claims verification, the receiver will submit the
individual reports, which were prepared based on the
verification results, to the court on August 26, 2004. The
general report is due for submission on October 7, 2004.

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

CONTACT:  Mr. Daniel Alberto Del Castillo, Receiver
          Pte Peron 1558
          Buenos Aires


TGN CRIBS: Financial Trusts Remain in Default
---------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. affirmed the
'D(arg)' rating on the US$175 million worth of TGN CRIBs Clase I
financial trusts, the CNV reports.

Argentina's securities regulator described the debt security as
"Titulos de Deuda por USD175MM", but did not indicate the
maturity date. The ratings agency said that 'D(arg)' ratings are
assigned to financial obligations that are currently in default.


YACYRETA: Single Investor May Shore Up Dam Project
--------------------------------------------------
Citing unnamed government officials, a report by Argentine
business daily El Cronista reveals that the richest man in Latin
America may invest in the Yacyreta hydroelectric dam, the joint
venture between the countries of Argentina and Paraguay, relates
Bloomberg.

Mexican billionaire Carlos Slim, who met Monday with Argentinean
President Nestor Kirchner, may help out the two governments in
completing work on Yacyreta, which still needs about US$600
million to be finished despite billions of dollars of investment
in the past decade.

Early this month, an agreement to complete infrastructure
projects at Yacyreta was signed by representatives of Argentina
and Paraguay. The accord commits the two countries to get on
with old plans to add 200 megawatts to the plant's production
capacity.



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

LORAL SPACE: NY Court Orders ERISA Violations Suit Consolidated
---------------------------------------------------------------
The class actions filed against Loral Space & Communications
Ltd. Savings Plan Administrative Committee, all Loral directors,
Richard J. Townsend and certain other Loral officers and
employees have been consolidated in the United States District
Court for the Southern District of New York.

In December 2003, plaintiff Wendy Koch, a former employee, filed
the suit, alleging:

(1) that defendants violated Section 404 of the Employee
    Retirement Income Security Act (ERISA), by breaching
    their fiduciary duties to prudently and loyally manage
    the assets of the Loral Savings Plan by including Loral
    common stock as an investment alternative and by
    providing matching contributions under the Plan in
    Loral stock,

(2) that the director defendants violated Section 404 of
    ERISA by breaching their fiduciary duties to monitor
    the committee defendants and

(3) that defendants violated Sections 404 and 405 of ERISA
    by failing to provide complete and accurate information
    to Plan participants and beneficiaries.

The class of plaintiffs on whose behalf the lawsuit has been
asserted consists of all participants in or beneficiaries of the
Plan at any time between November 4, 1999 and the present and
whose accounts included investments in Loral stock.

One other similar complaint against the defendants with
substantially similar allegations has been filed, and the two
cases have been consolidated. Plaintiffs have been granted until
the beginning of July 2004 to file an amended complaint. (Class
Action Reporter, Wednesday, May 19, 2004, Vol. 6, Issue 98)


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

CFLCL: Shareholders' Dispute Wanes Pending New Strategies
---------------------------------------------------------
The ongoing dispute over control of Brazilian power company
CFLCL between minority shareholders and the controlling Botelho
family appears headed for a ceasefire to give both sides time to
rethink strategies, says BNamericas.

With little room to seek injunctions in Brazilian courts, the
CFLCL shareholders are looking for alternative ways of settling
the dispute. Faced with a theoretically endless cycle of court
hearings, both camps admit that only a negotiated solution can
put an end to the impasse, which they agree has affected the
day-to-day operations of the company.

"I just think people have to sit at the same table calmly to see
what they want out of this," said CFLCL investor relations
director and CFO Maurico Botelho, a member of the controlling
family.

The power struggle started in December 2003, when minority
shareholders objected to the Botelhos' decision to pay dividends
for 2003, claiming it was just avoiding not paying dividends for
three consecutive years. Under Brazilian law, failure to give
dividends for three straight years would result in voting rights
and share of control of the company for minority shareholders.
Controllers, on the other hand, see the minority shareholders'
objection as nothing more than a hostile takeover attempt.

Minority shareholders also accused management of not trying hard
enough to reduce debt last year. They are also waiting for
decisions by securities regulator CVM and electricity regulator
Aneel on the company's finances, which, the Botelhos claim, are
in order.

CFLCL, based in Minas Gerais state, sells power to 1.8 million
customers across three states.


COPEL: Plans BRL400mln Investment This Year
-------------------------------------------
In its intention to keep up with a projected 5% increase in
power consumption in 2004, Brazil's Parana state integrated
power company Copel (NYSE: ELP) plans to invest a total of
BRL400 million (US$128mn), according to the company's chief
financial officer, Ronald Ravedutti.

BNamericas, citing a report by news service Agencia Estado,
said that of the BRL400 million investment, BRL300 million will
be spent on transmission and distribution operations, while the
company plans to invest the remaining BRL100 million in
generation and telecommunications.

Copel, which also plans to invest BRL400 million in 2005,
invested BRL54.8 million for the first quarter, which resulted
in a power consumption increase of 1.4% from the same period
last year. The company also turned around its BRL15.5 million
loss in the first quarter of 2003 when it reported net profits
of BRL89.7 million in 1Q04.


ODEBRECHT: Snags Olmos Project Concession
-----------------------------------------
Peruvian state investment agency ProInversion announced Monday
that the government decided to grant Brazilian engineering and
construction company Constructora Norberto Odebrecht SA the 20-
year concession for the first US$118.5 million phase of Peru's
long-delayed Olmos hydroelectric project, Reuters relates.

Odebrecht, the only company to present a bid for the project's
concession on March 19, won a financing pledge of US$77 million,
at a rate of 6.3% over 15 years, with five years' grace, to fund
the government's contribution to the project.

The project, which requires a total investment of up to US$700
million, will divert water from the eastern side of the Andes
Mountains to the Pacific side to increase agricultural yields in
more than 150,000 hectares, ProInversion said in a statement.


PARMALAT: Moves Toward Creditor Approval On Restructuring
---------------------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates the guidelines for the Restructuring Plan and for
the proposed agreement with creditors that the Extraordinary
Commissioner intends to file in the coming weeks.

1) Changes to legislative decree of 3 May 2004 no. 119 and the
legal structure of the agreement with creditors

With the Legislative Decree of 3 May 2004, no. 119, published in
Official Gazette no. 106 on 7 May 2004, applicable from 8 May
2004, a number of changes and additions have been made to
legislation regarding major companies in insolvency referred to
under Legislative Decree of 23 December 2003, no. 347, which,
with modifications, came into force with the Law of 18 February
2004, no. 39.

In particular, as a result of the changes made under the new
decree, the procedures for the extraordinary administration of
Parmalat Group Companies can be enacted either through a
programme of economic and financial restructuring, as foreseen
under the 'mother procedure' of Parmalat S.p.A., or through a
programme of disposals of Group businesses. This programme shall
be made public via various forms of public announcement as and
when enacted.

Amongst the most significant changes to be highlighted are those
relating to the agreement with creditors, which could be
finalised via whatever technical or legal structure is necessary
including transfer, merger or another structural change, or via
an Assuming Entity, to which may be transferred all the
activities and liabilities of those companies that may be the
subject of the agreement with creditors. The
Assuming Entity can also consist of creditors or companies in
which they have an interest.

The real possibility of filing a proposed agreement with
creditors has already enabled the simplification of the claims
procedures for creditors.

Taking into account the above-mentioned changes to the law, the
Extraordinary Commissioner, with the support of his legal and
financial advisors, is finalizing his economic and financial
restructuring plan for the various Parmalat1 Group businesses,
to be filed with the Minister of Production Activities for his
approval. The restructuring plan will include a proposed
agreement with creditors that would see the transfer to a
separate Assuming Entity of all the assets and liabilities of
those companies subject to the agreement. This newly formed
company (henceforth "the Assuming Entity") will exclusively
assume all the obligations resulting from the agreement with
creditors and will have transferred to it all the assets and
liabilities of those companies that are subject to the proposed
agreement with creditors, as well as any revocatory actions or
actions for damages to be taken by the Extraordinary
Commissioner.

If approved by creditors, the above proposed agreement will
permit the payment of all privileged and preferential credits
and the payment of unsecured credits via the allotment of shares
in the Assuming Entity in proportion to the credits as
officially registered and taking into account the assets and
liabilities of the companies in Extraordinary Administration
that are covered by the agreement with creditors.

The legal structure of the agreement with creditors will be set
out in detail in the restructuring plan and in the proposed
agreement itself.

2) Financial Adviser selected to provide letter of opinion for
creditors

Close Brothers has been selected from a group of leading
international institutions to fulfil the role of financial
adviser with the following brief:

   i)  to review the Restructuring Plan in the interests of
       creditors; and
   ii) to deliver a letter of opinion on the fairness and
       reasonableness, from a financial point of view, of the
       amount to be offered to each class of creditor.

The letter of opinion will be made public as an appendix to the
Restructuring Plan and the proposed agreement with creditors.

3) Corporate Governance: the core principles of the new Parmalat

A system of Corporate Governance has been defined for the new
Parmalat. This takes into account the new rules governing
company law, the recommendations of CONSOB and Borsa Italiana
(the Italian Stock Exchange), Borsa Italiana's code of self-
discipline (Codice Preda) and every applicable law and is
aligned with national and international best practise.
Parmalat's new Corporate Governance will have as its objective
the protection and the creation over time of value for
shareholders and other stakeholders. This objective will be
given the status of "a company principle" by establishing it
amongst the obligations of the company's governing structures.

The principle characteristics of this new system are:

- The company bylaws provide for the maximum possible
involvement of shareholders in the definition of the Group's
values and provide an important guarantee for the protection of
shareholders' interests. To achieve this the company bylaws
specifically list the duties of directors and members of the
Board of Statutory Auditors; define the role of the Chairman of
the Board; specify the exclusive duties of the Board of
Directors and the specific requirements demanded of independent
directors who should represent the majority of Board members.
Directors will be appointed via the voting list mechanism and a
minimum ownership of 2% of the Group's share capital will be
required in order to present such a list. No one will be
eligible for election as a Director who carried out any role
within Parmalat's corporate structures under the previous
management or had any position of major responsibility within
the Group. The same applies to anybody who, in the 180 days
prior to the General Meeting of Shareholders has been the
subject of any legal action. It will not be permitted for a
single person to carry out the roles of Chairman of the Board
and of Chief Executive.

- The Board of Directors will set in place a Code of Self-
Discipline that will constitute the sum of the regulations that
govern the business of the Company, consistent with the basic
principles set out in the Company's bylaws. The code of self-
discipline will: cover the regular reporting obligations of the
Company's committee structures; the establishment of an Internal
Controls and Corporate Governance Committee and a Nominations
and Remuneration Committee; will define the basic principles for
the handling of price sensitive information and procedures
governing the issues of insider trading and internal dealing;
will establish the basic principles governing relations with
shareholders and institutional investors; and will establish
rules governing related party transactions.

- A Code of Ethics will define the Group's mission and the
behavioral obligations of its employees and partners, based on
values of transparency, correctness and professionalism.

- The basic principles regarding internal controls will be
enshrined in Written Group Procedures that will define the
parent company's powers of direction and coordination as
foreseen under company reforms that have the objectives of
guaranteeing transparency of information and behavioral
correctness. These procedures will include Structures to govern
behavior as required under Legislative Decree 231/2001 that
cover the administrative responsibility of the company in
relation to various possible criminal activities, including that
relating to the company's affairs.

- The Company control structure will be radically reviewed in
order to achieve the objectives of: transparency (Group
companies must be seen to be, as a matter of course, transparent
by third parties); correctness (domiciles of convenience, so
called 'fiscal paradises', will be abandoned); the remuneration
of capital (via a dividend policy and made possible also thanks
to the simplification of the Company control structure).

4) Developments in Parmalat's International Activities and with
regard to Legal Actions

In Brazil the court of Appeal of the State of San Paolo has re-
established the 42nd District's (Judge Nuncio) authority over
the Concordata procedure, removing it from the 29th District
(Judge Abrão). The procedure relating to the Concordata covering
the operating company Parmalat Brasil and the holding company
Parmalat Alimentos e Parmalat Partecipações, has therefore been
reinstituted. The new Board of Directors of Parmalat Brasil has
the following members: Nelson de Sampaio Bastos (Chairman), Luiz
Arthur Ledur Brito (Vice-Chairman), Raul Rosenthal Ladeira de
Matos, Renato Carvalho Franco, José Otàvio Junqueira Franco,
Paulo Diederichsen Villares, e Ruy Flaks Schneider.

In the United States Farmland Diaries LLC, in the context of the
Chapter 11 procedure relating to Parmalat's US Dairy businesses,
has announced that it intends to develop - in cooperation with
its own creditors - a restructuring plan with the aim of
establishing the financial and operating stability needed to
continue its operations.

The institutions financing the Chapter 11 procedure support this
project and it has therefore been decided not to sell the main
activities of Farmland Dairies; the original financing agreement
has been altered to reflect this. A process is underway to
identify a new Chief Executive Officer for Farmland Dairies LLC.

The SEC - Securities Exchange Commission - as previously
indicated, has formally notified Parmalat Finanziaria of the
filing of proceedings with the US District Court for the
Southern District of New York requesting the imposition of a
penalty for violation of the Securities Act.

Bank of America has made an appeal to the TAR of Lazio against
the Minister of Productive Activities and the Extraordinary
Commissioner seeking to annul the Ministerial decrees that
initiated Extraordinary Administration Procedures relating to
Eurofood IFSC Limited and Parmalat S.p.A. and other related
actions; this appeal was subsequently combined with that made by
SMTP and Solotrat. On 2 April 2004, Parmalat appealed the
judgement of the Court of Dublin that had given it jurisdiction
over the liquidation of Eurofood IFSC Limited.


SADIA: Local Currency Rating Raised to 'BB'
-------------------------------------------
Standard & Poor's Ratings Services raised its local currency
corporate credit rating on Sadia S.A. (Sadia) to 'BB' from 'BB-
'. At the same time, Sadia's foreign currency corporate credit
rating was affirmed at 'B+'. The rating of Sadia IFC Trust $165
million 8.52% certificates due 2008 is also increased to 'BB'
from 'BB-' because of the upgrade of Sadia. The outlook on the
local currency rating is stable, and on the foreign currency
rating is positive.

"The rating actions reflect Standard & Poor's view that Sadia's
improved operating performance over recent quarters in
conjunction with a more accurate control of financial risks has
strengthened the company's credit profile," said Standard &
Poor's credit analyst Jean-Pierre Cote Gil.

The stable outlook on the local currency rating reflects
Standard & Poor's expectations that Sadia will maintain its
current strong levels of exports (which also adds to the
company's financial flexibility and liquidity position) and its
pricing leadership in Brazil in order to mitigate the risks
associated with its operations. A change in the local currency
rating's outlook to positive would depend on Sadia reducing its
financial arbitrage position, maintaining sustainable EBITDA
margins of about 13%-15%, and having a more diversified/value-
added product mix on exports.

On the other hand, the ratings could suffer downward pressure in
a scenario of a more negative performance of the local economy
combined with depressed local demand/consumption levels when
international markets do not offer a profitable alternative to
sales. The positive outlook on the foreign currency rating
reflects that of the sovereign rating of the Federative Republic
of Brazil.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Jean-Pierre Cote Gil, Sao Paulo (55) 11-5501-8946


TELEMAR: TNE to Sell iG Stake
-----------------------------
Tele Norte Leste Participações S.A. (NYSE:TNE) released in
Brazil Tuesday a "Fato Relevante" (Material Fact), in compliance
with the Brazilian Securities and Exchange Commission's
("CVM")Instruction No. 358/02, announcing that TNE has accepted
the offer and will sell to Brasil Telecom SA all of the shares
(6,791,217) TNE currently indirectly holds in Internet Group
Limited "iG" (Cayman), owner of the Brazilian Internet Service
Provider "iG".

The shares, representing 17.6% of the total equity of iG, are
held by Digital Network Investments Ltd., a wholly owned
subsidiary of TNL.Net Participações S.A. (one of TNE's
subsidiaries). The shares have been valued at the equivalent in
Real ("R$", the Brazilian currency) to US$ 17,487,383.78.

The sale will represent a net gain of approximately R$6.0
million on the basis of the US$/Real currency exchange rate on
May 14, 2004.

The closing of the sale is subject to due diligence procedures
to be carried out by the buyer, and the negotiation of the final
contractual terms of the transaction.

CONTACT:  TNE - INVESTOR RELATIONS GLOBAL CONSULTING GROUP
          Roberto Terziani
          (terziani@telemar.com.br)
          55 21 3131 1208

          Kevin Kirkeby
          (kkirkeby@hfgcg.com)

          Carlos Lacerda
          (carlosl@telemar.com.br)
          55 21 3131 1314
          Fax: 55 21 3131 1155
               1 646 284 9494
          Tel: 1-646-284-9416;

Website: www.telemar.com.br/ir


TUPY: Posts Drop in 1Q04 Net Profit
-----------------------------------
In its earnings report to the Sao Paulo stock exchange,
Brazilian foundry Tupy posted for the first quarter a net profit
of BRL500,000 (US$160,000), compared to the BRL21.9 million gain
it reported for the same period last year, according to
BNamericas. Tupy blames the drop in profits on higher input
costs, combined with the negative impact of foreign exchange
variations on the company's debt.

Citing greater sales volumes and better prices, the company also
reported increased net sales revenues of BRL321 million, a 16.2%
rise from BRL276 million in 1Q03. Its Ebitda, however, slid to
BRL49.4 million from BRL58.7 million in the same year-on-year
comparison, due mainly to higher costs of raw materials.

Tupy, Brazil's largest foundry, also said its sales volumes for
the period is 22% higher, at 101,758t, than the 82,000t for the
year-ago period. Increase in market share in foreign markets
also helped Tupy raise its exports for 1Q04 by 30.7%.



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

CHIQUITA BRANDS: Payments Probe Could Guide Other Firms
-------------------------------------------------------
The probe being conducted by the U.S. Justice Department on the
admission of Chiquita Brands International Inc. (CQB) last week
that its Colombian subsidiary has given protection money to
suspected terrorist groups could serve as a guide for American
companies in dealing with this type of threat, reveals the
Associated Press. For this reason, American companies operating
in Colombia are closely monitoring the Justice Department's
investigation. Chiquita's disclosure, which industry observers
say is unprecedented for a U.S. firm, could also serve as an
opportunity for the Justice Department to warn U.S. companies
about giving any type of support to suspected terrorists.

The Greater Cincinnati Chamber of Commerce, for instance, has
already expressed plans to share any guidance from federal
officials with member companies doing business in Latin America,
according to Nick Vehr, the group's vice president of economic
development.

Chiquita may have been the first U.S. company to disclose such
payments, but paying some form of "protection money" or "war
taxes" to guerrillas or paramilitary groups has already been a
widespread practice among Colombian companies, said Ron Oswald,
general secretary for the International Union of Food,
Agricultural, Hotel, Restaurant, Catering and Allied Workers
union which represents about 15,000 Chiquita workers in South
and Central America. He said that, "In Colombia, it's relatively
common knowledge the companies operating there have to make all
kinds of payments that under more normal circumstances would not
have to be made," Oswald said.

Foreign companies operating in Colombia or any other country in
the world with an insurgency problem, for that matter, are often
faced with the threat of bombings of its facilities or
kidnappings of its personnel. With these threats, companies are
either forced to pay some form of protection money or, more
euphemistically, "revolutionary taxes", or come up with their
own "private army" to provide defense. Not much help is expected
from a country's armed forces, which, more often than not, are
already spread too thin battling these various armed groups.

However, one American company, Los Angeles-based Occidental
Petroleum Corp., did not bow to pressure from groups of this
sort. According to company spokesman Larry Meriage, a
government-owned and operated pipeline that Occidental uses to
transport petroleum in Colombia has been bombed 800 times since
its operation in 1986. But instead of giving in to these groups'
demands, the company has asked and received protection from
Colombian military and police forces, which are themselves
getting training support from the United States.



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

TRICOM: To Commence Trading On The OTC Bulletin Board
-----------------------------------------------------
Tricom, S.A. announced that its American Depositary Shares
(ADSs) would begin trading on the OTC (over-the-counter)
Bulletin Board ("OTCBB") on Wednesday, May 19, 2004, under the
symbol "TRICY". The Company will continue its timely financial
reporting and compliance with all the Securities and Exchange
Commission reporting requirements.

The OTCBB is a regulated quotation service that displays real-
time quotes, last-sale prices, and volume information in over-
the-counter equity securities. Investors should be aware that
trading in the Company's ADSs through market makers and
quotation on the OTCBB may involve risk, such as trades not
being executed as quickly as when the issue was listed on the
New York Stock Exchange. More information about OTCBB can be
found at www.otcbb.com.

About TRICOM

Tricom, S.A. is a full service communications services provider
in the Dominican Republic. It offers local, long distance,
mobile, cable television and broadband data transmission and
Internet services. Through Tricom USA, the Company is one of the
few Latin American based long distance carriers that is licensed
by the U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through its
subsidiary, TCN Dominicana, S.A., the Company is the largest
cable television operator in the Dominican Republic based on its
number of subscribers and homes passed.

CONTACT:  Tricom, S.A.
          Miguel Guerrero, Investor Relations
          Tel: +1-809-476-4044/+1-809-476-4012
          E-mail: investor.relations@tricom.net
          Web site: http://www.tricom.net



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

ALESTRA: Fitch Says 'B-' Ratings Still Apply
--------------------------------------------
Fitch Ratings has affirmed its ratings of 'B-' to the foreign
and local currency debt obligations of Alestra, S.A. de R.L. de
C.V. (Alestra). The ratings apply to $387 million in outstanding
securities, including $304 million senior notes due 2010, $46
million senior notes due 2009 and $37 million senior notes due
2006. The Rating Outlook for all these ratings is Stable.

The ratings reflect Alestra's business position as a niche
provider of long distance, data and local service catering to
the Mexican corporate sector and an improved financial profile
following the recapitalization and debt restructuring completed
during November 2003. The new lower debt levels, cost of debt
and associated debt-service requirements better match Alestra's
cash flow generation to its debt-servicing needs.

Alestra's business strategy is to increasingly focus on the data
and local service segments to offset slower growth in the long
distance business. Data services, which include Internet, frame
relay, private lines and direct access, offer significant long
term growth opportunities due to their low penetration in
Mexico. Data services accounted for 20% of revenues during 2003
compared to 14% in 2001, and are expected to continue increasing
as a percentage of revenues. Alestra is also growing its local
service business by targeting existing customers of its other
services. Alestra began offering local services in the three
largest metropolitan areas during 2001 and has since increased
coverage to smaller cities. Local services accounted for 4% of
revenues during 2003, up from 1% in 2001.

In recent years, Alestra's profitability has been negatively
affected by declining long distance tariffs. The possible
elimination of the proportionate return rule for incoming
international long-distance calls could further pressure tariffs
and is incorporated into the ratings, although lower tariffs may
lead to modest improvements in long-distance traffic. Long
distance accounted for 76% of revenues during 2003, down from
85% in 2001. In addition, Alestra continues to face competitive
challenges posed by telecommunications operator, Telefonos de
Mexico, S.A. de C.V., which controls more than 90% of the local
service sector, 70% of the long distance sector and a
substantial share of the data sector.

The restructuring completed in November 2003 reduced the
company's debt levels by approximately one-third to $400 million
from $582 million, decreased the average financing cost on the
debt to about 8% from more than 12% and lengthened the average
debt maturity to around seven years from 4.5 years. The
restructuring will significantly improve Alestra's credit ratios
going forward. EBITDA/interest should improve to 2.5 times (x)-
3.0x compared to less than 1.0x in 2002, and total debt/EBITDA
should improve to approximately 4.0x compared to 7.8x in 2002.

Alestra has approximately $400 million of debt, composed of
newly issued $304 million senior notes due 2010, $37 million
12.125% senior notes due 2006 (not tendered in the debt
restructuring), $46 million 12.625% senior notes due 2009 (not
tendered in the debt restructuring) and $13 million of other
debt. All of the debt is dollar denominated and unsecured.
Alestra has little short-term refinancing risk, as the majority
of its debt is long term.

Alestra provides long-distance services in Mexico since 1997.
Long distance accounted for 76% of revenues during 2003,
although the company's strategy is to diversify its revenue mix.
Alestra also provides data services and local services. Alestra
is 49% owned by AT&T and 51% owned by Onexa. The company brands
its services under the AT&T name.

CONTACT: Guido Chamorro +1-312-368-5473, Chicago
         Sergio Rodriguez, CFA
         +011 528 18 335-7239, Monterrey

Media Relations: James Jockle +1-212-908-0547, New York.


COPAMEX: Gets US$175mln From IFC, Citigroup for Restructuring
-------------------------------------------------------------
The International Finance Corporation, the private sector arm of
the World Bank Group, and Citigroup Inc. have arranged a $175
million financing package to support the corporate restructuring
and global debt refinancing of Copamex S.A. de C.V., a leading
manufacturer and distributor of paper-based consumer, packaging,
printing, and writing products in Mexico and Central America.
The financing package includes loans of $75 million for IFC's
own account and a $100 million equivalent multicurrency
syndicated facility.

IFC has provided an eight-year, $50 million senior loan to
Copamex's subsidiary, Copamex Productos al Consumidor, S.A. de
C.V. (CPG), which is a 50-50 joint venture with Swedish-based
SCA Hygiene Products AB, a leading European manufacturer of
paper-based consumer products. IFC has also invested an eight-
year, $25 million subordinated convertible loan in Copamex.

The six-year, $100 million syndicated facility, which has also
been provided to CPG, consists of a $46 million loan for the
account of foreign commercial banks participating in IFC's B-
loan program and a $54 million equivalent Mexican peso parallel
loan for the account of local commercial banks. The syndicated
facility was oversubscribed in the market by $35.5 million. IFC
also provided Copamex with currency swaps to hedge the dollar
loans back into pesos.

"The long-term local currency loans provided by the financing
package, as well as the corporate restructuring that expands the
partnership with SCA, will help Copamex put itself on a
sustainable path to achieving its potential for growth.  We are
pleased to be part of this process. IFC will also continue to
assist Copamex in its efforts to improve sustainability in its
environmental, social, and governance practices," said Bernard
Pasquier, IFC's director for Latin America and the Caribbean.

"This transaction represented an important part of our debt
reduction and overall refinancing plan, which has been
successfully completed. We are very pleased with the results of
the syndication process and results of the overall refinancing
plan," said Sergio de la Garza, corporate director of Copamex.

He added that the plan entailed a series of transactions: a
financing package from the IFC, the syndicated loan arranged by
IFC and Citigroup, the sale of 50 percent of the company's
consumer products business, the release of guarantees provided
by subsidiaries of Copamex to holders of  outstanding long-term
local bonds, and the previously announced sale of the company's
multiwall sack business. The plan allowed Copamex to redeem its
11.375 percent senior notes due 2004 and to refinance the rest
of its outstanding debt with maturities of up to eight years,
and with peso-denominated and peso-equivalent funding to
mitigate exchange rate risk.

Rabobank and HSH Nordbank joined the IFC B-loan as coarrangers;
International Finance Participation Trust and Norddeutsche
Landesbank as lead managers; and State Bank of India as
participant.

Banco Nacional de México, S.A., a subsidiary of Grupo Financiero
Banamex, a unit of Citigroup, acted as administrative agent for
the Mexican peso parallel loan. Other institutions joining the
parallel loan include BBVA Bancomer as a coarranger; Banorte and
Scotiabank Inverlat as lead managers; and Comerica Bank Mexico
as participant.

"We are pleased that the refinancing of Copamex's debt has been
successfully concluded. This was a complex deal that involved a
series of interdependent refinancing efforts and the sale of
important company assets, and it required very close
coordination of the various teams involved. The company's
management did an excellent job of coordinating all parts of
this landmark transaction," said Mario Espinosa, Citigroup´s
managing director of global loans for Latin America.

Copamex is one of Mexico's leading producers of paper-based
consumer products and value-added industrial paper products,
including packaging and printing and writing products. It has
transformed itself from a producer primarily of industrial paper
products into one of the premier producers of paper-based
consumer products and value-added industrial paper products.
Copamex has a leading portfolio of consumer brands of tissue and
personal products, including Regio, Scottis, Lovly, Flen,
Boreal, Saba, and Tena. The company's strategy is to focus on
consumer and value-added packaging products and to grow the
business through effective marketing and development of
innovative new products.

Citigroup, the preeminent global financial services company with
some 200 million customer accounts in more than 100 countries,
provides consumers, corporations, governments, and institutions
with a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking,
insurance, securities brokerage, and asset management.  Major
brand names under Citigroup's trademark red umbrella include
Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and
Travelers Life and Annuity.

Grupo Financiero Banamex is part of Citigroup. Through its
banking subsidiary Banamex and its brokerage house, Accival,
Grupo Financiero Banamex offers a broad range of financial
services including corporate and investment banking, retail
banking, insurance, pension fund management, and brokerage
services, among others.

IFC's committed financing in Latin America and the Caribbean
amounted to $2.18 billion in fiscal 2003 for 54 projects over 16
countries, its highest level of investment in any region. IFC's
mission (www.ifc.org) is to promote sustainable private sector
investment in developing countries, helping to reduce poverty
and improve people's lives.

IFC finances private sector investments in the developing world,
mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and
provides technical assistance and advice to governments and
businesses.

Since its founding in 1956 through the close of the last fiscal
year on June 30, 2003, IFC committed more than $37 billion of
its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC's worldwide committed
portfolio at the end of
FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.

CONTACT: Ms. Adriana Gomez
         Phone:  (202) 458-5204
         Fax:    (202) 974-4384
         E-mail: agomez@ifc.org

         Mr. James Smouse
         Phone:  (202) 458- 4591
         E-mail: Jsmouse@ifc.org



XIGNUX: Moody's Confirms Existing, Assigns New Ratings
------------------------------------------------------
Moody's Investor Service confirmed existing debt ratings of
Xignux S.A. de C.V. and simultaneously assigned ratings to other
debts issued by the Mexican industrial conglomerate.

The ratings confirmed are:

- 'B2' Senior Implied Rating

- 'B3' US$51 million (remaining amount) of 9% Senior Unsecured
  Guaranteed Notes due August 2004

- 'Caa1' Senior Unsecured Issuer Rating - (this rating assumes
  no upstream guarantees)

The following rating was assigned:

- B3 to US$93 million of 9 1/2 Senior Unsecured Guaranteed Notes
  due 2009

The Outlook Remains Negative.

Xignux's B2 Senior Implied Rating reflects the company's high
leverage relative to a low free cash flow (FCF) generation, the
intense competition that the Company faces in most of its
divisions and the company's vulnerability to fluctuations in
commodity prices. Conversely, the ratings are supported by
Xignux's leading position in key sectors of the Mexican economy,
joint ventures with large international companies, and recent
favorable performance trends.

The B3 rating on both the old and the new Notes reflects the
structural subordination of these issues relative to the
existing debt at certain majority owned consolidated
subsidiaries that do not provide guarantees for the holding
company's debt.

The negative outlook is based upon continuing refinancing risk.

Xignux has made some progress in reducing its short-term debt
and elevated its cash position from US$133 million at the end of
2003 to US$146 million in March 2004.

However, in Moody's view, refinancing risk remains high as the
Company's short-term debt was US$226 million at the end of March
2004.

Xignux ended 2003 with sales of US$1.6 billion with an EBITDA of
US$144 million.



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

BWIA: Rising Fuel Costs May Prompt Flight Cuts
----------------------------------------------
The chief executive of British West Indies Airways (BWIA), the
national carrier of Trinidad and Tobago, said that due to
skyrocketing fuel prices, the airline might be forced to cut
back on flights for routes which the company would deem as less
than profitable, relates The Trinidad Guardian.

BWIA CEO Nelson Tom Yew said the airline, which is fighting the
need to hike airfares because of higher fuel costs, did not
anticipate the additional expense brought about by the price
hikes.

As of Monday, US light crude was priced at US$41.85 a barrel,
the highest since the New York Mercantile Exchange launched the
crude contract in 1983. Should this price keep on rising, BWIA
is mulling the implementation of a fuel surcharge, although Mr.
Yew said this would be a last resort.



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

PLUNA: Aerolineas Drops Acquisition Plans
-----------------------------------------
A loss of interest has driven Argentine carrier Aerolineas
Argentinas to give up on its bid to acquire Uruguayan airline
Pluna, reports Dow Jones, citing Argentine business daily El
Cronista.

Aerolineas chair Antonio Mata said Tuesday that the company is
no longer interested in Pluna, since their letters of intention
have already gone beyond their expiry date, and that they did
not have the time to wait for its shareholders to "settle their
differences in term's of the company's future."

The Argentine airline, which is part of the Spanish travel group
Grupo Marsans, had been in talks with Brazilian carrier Varig,
which owns 49% of Pluna and the Uruguayan government, which
holds the remaining 51%, since it confirmed its interest in the
airline in February. But in April, the negotiations came to a
halt when the Uruguayans expressed apprehensions on the sale,
not to mention the fact that the current government is facing
strong opposition to the sale of state assets.

Mr. Mata, however, said the collapse of the Pluna sale talks
will not affect Aerolineas' plans of becoming a regional player.
Aside from launching Chile flights in September, it will also
try to set up its own unit in Uruguay.



                            ***********


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

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