TCRLA_Public/040527.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 27, 2004, Vol. 5, Issue 104

                            Headlines


A R G E N T I N A

AUTOPISTAS DEL SOL: Commercial Court Ratifies Debt Deal
CERAMICA TREMARA: Sets for Informative Assembly Date
DIESEL OLAVARRIA: General Operational Report Due Today
EL MAGO: Trustee Ends Claims Process Today
FADELERS: Court Reviews General Report Today

INGECIQ: Trustee Closes Credit Check in Bankruptcy
LA NOUVELLE ROCHELLE: General Report Due for Submission
MALVINAS SATELITAL: To Present Reports to Creditors Today
MARKPETROL: Trustee Closes Creditor Claims Review Today
METROVIAS: Reports Growing 1Q04 Net Loss

MV CARGAS INTEGRALES: Organizational Meeting Nears
REGISER SA: Bankruptcy Claims Submission Ends Today
SALINERA POPRITKIN: Creditor Claims Due for Filing Today
TOP STAFF: Court Reviews Claims Today


B R A Z I L

PARMALAT: Turnaround Consultants Validate New Industrial Plan
TELEMAR: Cancels Treasury Stock, Undertakes Reverse Stock Split
VARIG/TAM: Downplays Recent Monopoly Allegations


C H I L E

AES GENER: Immediate Parent Shoulders 86% of Capital Boost


C O L O M B I A

CHIQUITA BRANDS: "Protection Payments" Won't Affect Profits
EDT: Superservicios Orders Liquidation


H A I T I

* Haiti to Get Additional US$100 Million For Transition


J A M A I C A

KAISER ALUMINUM: Hydro Acquiring Alpart Stake


M E X I C O

CORPORACION DURANGO: NYSE Suspends ADR, Note Trading


P A R A G U A Y

MILLICOM INTERNATIONAL: Reports Shareholder Meeting Results


P E R U

PAN AMERICAN SILVER: Successfully Completes Debenture Conversion


V E N E Z U E L A

SIDOR: Creates Labor Talks Committee With Union


     - - - - - - - - - -


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


AUTOPISTAS DEL SOL: Commercial Court Ratifies Debt Deal
-------------------------------------------------------
Buenos Aires Commercial Chamber issued a new decision in favor
of toll concessionaire Autopistas del Sol SA (Ausol). The court
made official the approval of its out-of-court settlement, APE,
subscribed in December 2003.

Ausol's debt restructuring had been approved in a bondholders
assembly in the end of 2003, with the backing of 95% of
creditors. That debt agreement was later challenged by Argentine
tax agency AFIP, which claimed that Ausol owed the government
money. But Ausol dismissed AFIP's objection, saying it involved
debt that wasn't owed at the time the Company made its debt-
restructuring proposal.

Ausol's debt was US$540 million prior to the agreement and was
reduced to US$370 million as a result of the restructuring.
Ausol is controlled by a private consortium headed by Sideco
Americana S.A. (SDA.YY).


CERAMICA TREMARA: Sets for Informative Assembly Date
----------------------------------------------------
Ceramica Tremara S.A. will present a settlement proposal to its
creditors at the informative assembly scheduled on November 4,
2004. The informative assembly will be the final stage of the
company's reorganization, which started in February this year.

TCR-LA reports that the court's trustee, Ms. Elena Mabel Iralde,
will submit the general report pertaining to the company's
reorganization today. Trelew Court No. 2 handles this case.

CONTACT:  Ceramica Tremara S.A.
          Pecoraro 275
          Trelew, Chubut

          Elena Mabel Iralde
          Belgrano 581
          Trelew, Chubut


DIESEL OLAVARRIA: General Operational Report Due Today
------------------------------------------------------
Today is the deadline for the filing of the general report for
the bankruptcy of Argentine company Diesel Olavarria S.A.C. e
I., according to the Troubled Company Reporter - Latin America.

The general report was prepared by the court-appointed trustee,
Mr. Eduardo Luis Alzueta, after the individual reports were
processed in court. The individual reports contained the results
of the credit verifications done to determine the nature and
amount of the Company's debts. These results will be used as the
basis for payments to be made after the Company's assets are
liquidated at the end of the process.

Court No. 1 of the Civil and Commercial Tribunal of Olavarria
handles the Company's case.

CONTACT:  Diesel Olavarria S.A.C. e I.
          Avenida del Valle 4424
          Olavarria

          Mr. Eduardo Luis Alzueta, Trustee
          Alvaro Barros 3369
          Olavarria


EL MAGO: Trustee Ends Claims Process Today
------------------------------------------
Mr. Luis Aristides Traverso, trustee for El Mago S.A., will
close the credit verification process for the Company's
bankruptcy today, May 27, says the Troubled Company Reporter -
Latin America.

Verifications were conducted to determine the nature and amount
of the Company's debts. Following this process, the trustee will
start preparing the individual reports, which are to be
submitted to court on July 8, 2004.

After submitting these reports to court, the trustee will
consolidate all of it into a general report and submit it to
court on September 6, 2004.

The TCR-LA recalls that El Mago was declared bankrupt by Buenos
Aires Court No. 6, which is assisted by Clerk No. 12, granting
approval to a bankruptcy petition filed by the Company's
creditor, Jose Arriola, for nonpayment of ARS5362,63 in debt.

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

CONTACT:  El Mago S.A.
          Azcuenaga 668
          Buenos Aires

          Mr. Luis Traverso, Trustee
          Avenida Corrientes 1820, piso 10 "B"
          Buenos Aires


FADELERS: Court Reviews General Report Today
--------------------------------------------
The general report for the Fadelers S.A. bankruptcy case will be
presented at the Buenos Aires Court No. 26 today for review and
approval. Mr. Jorge Inafuku, who serves as trustee for the
liquidation, completed the validation of the individual claims
on February 27, 2004.

CONTACT:  Fadelers S.A.
          Caldas 92
          Buenos Aires

          Jorge Inafuku
          Cerrito 1070
          Buenos Aires


INGECIQ: Trustee Closes Credit Check in Bankruptcy
--------------------------------------------------
Mr. Luis Alberto Costamagna, trustee for Ingeciq S.R.L., will
close the credit verification process for the Company's
bankruptcy today, May 27. In accordance with instructions from
San Luis Judge No. 3, the trustee will prepare the individual
reports based on the results of the verifications. The outcome
of the claims review will determine the amount each creditor
will get after the liquidation.

The trustee is also required to prepare a general report after
the individual reports are processed in court. The deadlines for
the submission of the said reports will be revealed shortly.

TCR-LA reported that the Company was declared bankrupt last
month after it failed to pay its debts. The bankruptcy will
conclude with the liquidation of the Company's assets.

CONTACT:  Ingeciq S.R.L.
          Pueyrredon Extremo Sur s/n Villa Mercedes
          San Luis

          Mr. Luis Alberto Costamagna, Trustee
          Pringles 125 Villa Mercedes
          San Luis


LA NOUVELLE ROCHELLE: General Report Due for Submission
--------------------------------------------------------
The court-appointed trustee for the La Nouvelle Roche S.R.L.
bankruptcy case, Mr. Juan Villanova, will present the general
report in court today. This report contains an audit of La
Nouvelle's accounting and business records as well as a summary
of events pertaining to the bankruptcy process.

TCR-LA reported on January 7, 2004 that the case is under the
jurisdiction of Buenos Aires Court No. 6. The Company's assets
will be liquidated at the end of the bankruptcy process to
reimburse creditors.

CONTACT:  La Nouvelle Roche S.R.L.
          5th Floor, Office 32
          Combate de los Pozos 59
          Buenos airse

          Juan Vilanova
          6th Floor, Office B
          Hipolito Yrigoyen 1349
          Buenos Aires


MALVINAS SATELITAL: To Present Reports to Creditors Today
---------------------------------------------------------
Ms. Laura Adriana Fiscina, trustee for the Malvinas Satelital
S.A. reorganization, will present individual reports for each of
the company's verified creditors today. These individual reports
are based on the claims submitted during the verification phase
which was concluded last April 5, 2004. Buenos Aires Court No.
10 has scheduled the informational meeting for February 2, 2005.


MARKPETROL: Trustee Closes Creditor Claims Review Today
-------------------------------------------------------
Mr. Oscar Luis Serventich, trustee for Buenos Aires company
Markpetrol S.A., will close the credit verification process for
the Company's bankruptcy today, May 27. As ordered by the city's
Court No. 3, the trustee will start preparing the individual
reports.

An earlier report by the Troubled Company Reporter - Latin
America indicated that the court requires the trustee to hand in
the individual reports on July 12, 2004. These reports contain
the results of the verification process. The trustee must also
file a general report on September 7, 2004. This report contains
a summary of the results in the individual reports.

The bankruptcy process is likely to result in the liquidation of
the Company's assets in order to pay its creditors.

CONTACT: Oscar Luis Serventich, Trustee
         Piedras 1319
         Buenos Aires


METROVIAS: Reports Growing 1Q04 Net Loss
----------------------------------------
Blaming a "significant" rise in operating costs, Argentine
public transport company Metrovias announced in a statement to
Argentina's securities regulator CNV that it has posted a
ARS8.05 million (US$2.85m) net loss in the first quarter, wider
than the ARS4.28 million net loss it reported for the same
period last year.

BNamericas reports that the company's operating losses widened
to ARS6.89 million in the period from ARS1.73 million in 1Q03.
Last year, Metrovias registered an operating loss of ARS3.78
million, compared to a ARS29.9 million operating loss in 2002,
while revenue was down 22.5% to ARS154 million.

A division of local infrastructure and services company Clisa,
Metrovias operates Buenos Aires' subway system.


MV CARGAS INTEGRALES: Organizational Meeting Nears
--------------------------------------------------
M.V. Cargas Intergrales S.A. approaches the end of its
reorganization as court-appointed trustee, Mr. Manuel Gonzalez,
presents the case's general report in court today.

San Isidro Court No 4, who has jurisdiction over the case, has
set the informative assembly on December 6, 2004. The company
will present its settlement proposal during the assembly for
approval by its creditors.

CONTACT:  M.V. Cargas Intergrales S.A.
          Crucero Gral Belgrano 2135
          Pilar

          Manuel Gonzalez
          Ituzaingo 370
          San Isidro


REGISER SA: Bankruptcy Claims Submission Ends Today
---------------------------------------------------
The claims verification period for the bankruptcy of Buenos
Aires-based company Regiser S.A. will conclude today, May 27.
Judge Ferrario of Buenos Aires Court No. 6 declared the
electronics company bankrupt, granting a petition filed by
Daniel Forte on non-payment of debt amounting to US$7803.03.

After making the ruling, the Court, aided by Dr. Mendez
Sarmiento, Clerk No. 12, appointed Mr. Ruben Suez as the
Company's trustee.

Mr. Suez's tasks include the verification of the creditors'
claims, which will close today, and the preparation of the
individual and general reports. Deadlines for the submission of
these reports are yet to be announced.

CONTACT:  Regiser SA
          Tinogasta 4474
          Buenos Aires

          Mr. Ruben Suez, Trustee
          General Cesar Diaz 2324
          Buenos Aires


SALINERA POPRITKIN: Creditor Claims Due for Filing Today
--------------------------------------------------------
Today, May 27, is the last day for credit verifications in
connection with the bankruptcy of Buenos Aires company Salinera
Popritkin S.A. The Company's trustee, Ms. Marta Estela Acuna,
verified the claims to determine the nature and amount of the
Company's debts.

An earlier report by the Troubled Company Reporter - Latin
America indicated that the city's Court No. 22, with assistance
from Clerk No. 44, declared the Company bankrupt and appointed
Ms. Bartella as trustee. In addition to verifying creditors'
claims, Ms. Bartella's duties as trustee also include preparing
the individual reports after the credit verifications are
completed.

The court expects these reports to be presented on July 8, 2004.
The trustee will then prepare the general report and present it
to court on September 6, 2004. The Company's bankruptcy case
will wind up in an asset liquidation to repay creditors.

CONTACT:   Marta Estela Acuna, Trustee
           Combate de los Pozos
           Buenos Aires


TOP STAFF: Court Reviews Claims Today
-------------------------------------
Mr. Jorge Osvaldo Stanislavsky, the court-appointed trustee for
the bankruptcy case of Top Staff S.A., will submit the case's
individual reports in court today. These reports were prepared
based on claims forwarded by the company's creditors during the
verification phase. The court also requires the trustee to
present a general report on July 13, 2004.

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

CONTACT:  Jorge Osvaldo Stanislavsky
          Talcahuano 768
          Buenos Aires


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


PARMALAT: Turnaround Consultants Validate New Industrial Plan
-------------------------------------------------------------
Parmalat Finanziaria SpA in Extraordinary Administration
("Parmalat"), communicates that A.T. Kearney, having completed
its independent evaluation of the 2004-2006 Industrial Plan
drawn up by the Parmalat management team, provided on May 20,
2004 a Comfort Letter validating the same Plan.

In the Comfort Letter, A.T. Kearney concludes that:

1) the Plan has been developed according to a correct
methodology framework, and utilizes properly the above mentioned
elements;

2) that the contents of the Plan, including foreseen actions and
targets, appear reasonable and sustainable.

According to A.T. Kearney's team of consultants, the Parmalat
Group, taking into account the envisaged steps to restructure
and re-launch the business, could deliver in 2006 potential net
revenues of approximately EUR3.8 billion and a potential EBITDA
of approximately EUR410 million.

On the basis of these conclusions and of additional assessment
criteria in part proposed by A.T. Kearney, including, for
example, a broadening of the perimeter of those activities to be
considered "Core" by the Group, Parmalat has finalized the
financial an profitability targets for the Industrial Plan as
follows:

Value in millions of Euros 2003   (Historic)(1)       2006
                                                  (prospective)


Net revenues                         3,772           3,943
EBITDA                                 252             434
Margin (%)                             6.7%           11.0%


(1) In order to allow for a like-for-like comparison with the
prospective numbers, the figures refer to the consolidated
perimeter of activities identified on 20 May 2004 as being
"Core".

As already set out in the press Release of 17 May 2004, the
Industrial Plan guidelines foresee, amongst other things, strong
central coordination by the parent company and the
identification of core activities considered to be strategic
consisting of drinks products (milk and fruit juices) and milk
and cheese products - focused on some 30 brands ("global" brands
or strong local brands) concentrated in high potential countries
where the demand for healthy lifestyle products is high, where
there is also a willingness to pay a premium price for Parmalat
brands and where advanced technology is available.

Potential for Development in 2007

The full effect of the actions taken by the Group both in terms
of both central and local coordination, will be felt beyond the
lifetime of the Industrial Plan and will therefore reach full
potential in the 2007 financial year, with an expected net
turnover of the order of EUR4 billion and EBITDA of
approximately EUR490 million, a ratio of 12% of revenues.


TELEMAR: Cancels Treasury Stock, Undertakes Reverse Stock Split
---------------------------------------------------------------
Tele Norte Leste Participacoes S.A. (NYSE:TNE and BOVESPA: TNLP3
and TNLP4) announced that, during a Special Shareholders'
Meeting held Monday in Rio de Janeiro (Brazil), its shareholders
approved:

I - The cancellation of (i) 2,312,168,000 common shares
corresponding to a portion of TNE's common stock currently held
in treasury (4,156,100,000), and (ii) 4,624,336,826 preferred
shares, corresponding to 100% of TNE's preferred stock currently
held in treasury, with no share capital reduction. After the
cancellation, TNE's corporate capital is represented by:

      Common Shares         129,306,291,613
      Preferred Shares      258,612,581,399
                            ---------------
      Total                 387,918,873,012

II - The reverse stock split of all TNE's shares at the ratio of
1,000 shares to 1 share of the same type and class. The reverse
stock split will become effective as of August 30, 2004. After
all the necessary procedures, TNE's corporate capital will be
represented by:

      Common Shares         129,306,291
      Preferred Shares      258,612,581
                            -----------
      Total                 387,918,872

The purposes of the reverse stock split are: (i) to reduce
administrative and operational costs to TNE and its
shareholders; (ii) to improve the efficiency of registration,
control and disclosure of information systems; (iii) to enhance
the quotation of TNE's shares in the stock market through the
adoption of one share per trading unit; and (iv) to reduce
potential errors of information and disclosure, thereby
improving the assistance to TNE's shareholders.

The shareholders may round their share positions to the lot of
thousand shares until August 27, 2004, either via negotiation at
the Bovespa or, during May 25, 2004 to August 27, 2004, via the
accredited banks, namely Banco do Brasil, ItaŁ, Unibanco and ABN
Amro/Real.

For the purpose of keeping as shareholders those who currently
own less than 1,000 of TNE's shares, the purchases via the
accredited banks mentioned above will be made free of broker fee
charges only for the amount of shares necessary to round up the
shareholder's position to 1,000 shares.

As of August 30, 2004, TNE's shares will be traded by unit.
After August 27, 2004, eventual fractions of shares resulting
from the reverse stock split will be grouped to represent full
thousand numbers, and will be sold at BOVESPA. The prices paid
for those fractions will be made available to the respective
shareholders after the sale settlement, pursuant to the
following procedures:

(a) shareholders holding bank accounts at Banco do Brasil will
have the respective amounts directly credited in their checking
accounts;

(b) shareholders that do not hold bank accounts at Banco do
Brasil may request the respective amounts in person at one of
Banco do Brasil's branches;

(c) shareholders that own shares held in the custody of CBLC -
Brazilian Company of Liquidation and Custody, will have the
respective amounts credited to CBLC, who will be obligated to
repay such shareholders via depositary brokers; and

(d) shareholders whose shares are blocked or have outdated
information will have the respective amounts withheld by TNE,
who will request proof of the cancellation of the blocking or
identification documents for the actual transfer of such
amounts.

As of August 30, 2004 each TNE ADR will represent 1 Preferred
Share. The reverse stock split does not impact TNE's ADR prices,
which are already traded on the basis of 1:1,000 preferred
shares.

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          E-mail: terziani@telemar.com.br
          Tel: 55 21 3131 1208
          Fax: 55 21 3131 1155

          Carlos Lacerda
          E-mail: carlosl@telemar.com.br
          Tel: 5 21 3131 1314
          Fax: 55 21 3131 1155

          THE GLOBAL CONSULTING GROUP
          Kevin Kirkeby
          Email: kkirkeby@hfgcg.com
          Tel: 1-646-284-9416
          Fax: 1-646-284-9494


VARIG/TAM: Downplays Recent Monopoly Allegations
------------------------------------------------
Brazilian airlines Varig and TAM dismissed Tuesday as just "a
big misunderstanding" allegations posed by a finance ministry
branch that their code-sharing agreement has spawned a cartel,
reports Dow Jones. The statements of TAM, Brazil's largest
carrier, and second-largest Varig are in reaction to a 40-page
report submitted to Brazilian regulator Cade by Seae, a branch
of the finance ministry focusing on competition issues,
recommending that their code-sharing program be "forbidden"
because it allowed the airlines to form a cartel.

Luciano Coutinho, who represents both carriers, said he would
arrange a meeting and discuss the document with Cade, which
approved the code-sharing last year. "I don't think this
document is so important because it was Cade that approved the
code-share program in the first place," he said.

Cade allowed the code-sharing as an initial step towards a
merger between TAM and debt-saddled Varig, which was feared to
go bankrupt. But early this year, Cade itself questioned the
agreement, saying it was unfair to other airlines, and even
threatened to cancel it. The regulator only backed off when both
airlines said a merger is 'impossible' in the short term because
of a lack of funding, heavy liabilities and difficulties in
reducing debt. Instead, the two airlines chose to form an
association to handle and maintain their code-sharing agreement
already in place.


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


AES GENER: Immediate Parent Shoulders 86% of Capital Boost
----------------------------------------------------------
In a statement Tuesday, Chilean generator AES Gener said that
86%, or US$97.8 million of its US$114 million capital increase
has been subscribed to and paid for by Inversiones Cachagua, the
company's immediate parent.

BNamericas reports that the generator expects to use part of the
capital increase proceeds to pay for its redemption of the
entire outstanding principal amount of its US and Chilean
convertible notes due next year.

Under Chilean law, the Chilean peso-denominated capital increase
must remain open to shareholders for at least 30 days from the
date of commencement, which puts the expiration date at June 19.

Inversiones Cachagua is owned by US-based AES Corporation.


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


CHIQUITA BRANDS: "Protection Payments" Won't Affect Profits
-----------------------------------------------------------
The Associated Press relates that the CEO of Chiquita Brands
International Inc. (CQB) sought to give shareholders his
assurance Tuesday that the company's profits won't be affected
by its admission that a subsidiary paid protection money to
armed Colombian groups tagged by the United States as foreign
terrorist organizations.

Chiquita CEO and President Fernando Aguirre said at the
company's annual meeting that the company is taking the payoff
issue very seriously, but added that it is manageable, and that
it is "isolated and unique to Colombia."

On May 10, Chiquita disclosed that Banadex, its Colombian
subsidiary, made the payments under pressure to ensure the
safety of its personnel and facilities in the country. Chiquita
said that as early as April 2003, it has already informed the
U.S. Justice Department about the payoffs, and that it is
cooperating with the probe being conducted by the department.

Mr. Aguirre, who took over Chiquita's helm in January, said his
top priority is to expand the company's banana business in North
America. He also expects growth in Europe.


EDT: Superservicios Orders Liquidation
--------------------------------------
Superservicios, Colombia's public services regulator, ordered
the liquidation of Barranquilla municipal telco EDT and named
Ms. Giszela Arino as liquidation manager, reports Business News
Americas. Ms. Arino will be responsible for raising sufficient
funds from the sale of the Company and its assets to finance a
fund covering pension liabilities.

Explaining the regulator's decision to the local press,
Superservicios head Evamaria Uribe said that EDT had negative
equity of COP90 billion and a pension liability of COP230
billion among other liabilities, COP79 billion of short-term
debt, a high proportion of uncollectibles and a collective
contract with employees that was a burden on the Company.

Meanwhile, the regulator plans to create a new municipal
operator to be called Barranquilla Telecomunicaciones and will
sell control of the company to investors, preferably from
Barranquilla. But according to Uribe, the process will be open
to national and international bidders.

Uribe expects the new investor to have to spend up to COP61
billion over the next five years in network maintenance,
improvements and operating costs, on top of the purchase price
of EDT's assets, which could be in the range of COP150 billion -
COP200 billion, depending on market value. The assets will be
sold in a single lot, as a going concern, she added.

For the time being, Superservicios has transferred nominal
ownership of EDT to a holding company controlled by government
television stations Audiovisuales and TV Andina with 9% and
22.7% stakes, respectively, and the Cundinamarca, Narino and
Huila power companies, each with 22.7% stakes.

Superservicios intervened in EDT in May 2000, after management
failed to follow guidelines ordered in November 1998.


=========
H A I T I
=========


* Haiti to Get Additional US$100 Million For Transition
-------------------------------------------------------
The United States will give Haiti an extra $100 million this
year to help the interim government establish democracy after
President Jean-Bertrand Aristide's ouster in the poor nation,
Reuters reports a US official said on Monday. The United States
had already earmarked US$60 million for the Caribbean country.
Following a deadly revolt that swept Aristide from power, it
promised to find extra funding for interim leaders it helped
choose to fill the vacuum.

The additional $100 million will help train police, plug the
government's budget gap and pay for US advisers to work with
Haitian ministries, State Department spokesman Richard Boucher
said in an announcement before a donors' meeting.

"In a lot of different ways, I think this money will contribute
to the full return of democracy to Haiti," he said. Boucher said
Canada will host an international donors conference by July 15
for the Western Hemisphere's poorest nation, which has a history
of coups and autocratic leaders.

Agence France Presse notes US ambassador James Foley said the
funds will be available in the first half of June. Foley said
US$35 million will go to Haiti's budget, US$22 million to the
judiciary and police, US$16 million for employment and nine
million US dollars for elections. The rest of the money will be
used to support democracy, fight corruption, restore
electricity, pick up trash and provide humanitarian aid. Four
million dollars will also go to a police force within the United
Nations' stabilization mission in Haiti, which will take over
for the US-led force on June 1.

In a separate piece, Reuters adds foreign donors could pump
close to US$300 million into Haiti over the next few months as
the hemisphere's poorest country seeks to breathe new life into
its moribund economy.

The World Bank plans to grant more than US$50 million to Haiti
in the coming months, sources close to the World Bank in
Washington told Reuters on Monday. The US-backed interim
government has called on World Bank officials to give Haiti the
status of a post-conflict country, and the World Bank is
considering doing that.

"If Haiti is classified a post-conflict country, it will have
access to grants instead of loans, but otherwise it will have to
pay the arrears before having access to new loans," a World Bank
official told Reuters. "World Bank assistance to Haiti will be
enough to cover the US$45 million in accumulated arrears, plus
US$15 million in debt service to the bank," the source told
Reuters on condition of anonymity.

The Inter-American Development Bank (IADB) will also pour about
US$30 million into the Haitian economy by year's end, Eric
Pierre, the IADB's principal adviser on Haiti and Argentina,
told Reuters on Monday in a phone interview from Washington.
This amount includes $15 million to help balance the Haitian
national budget, he said.

IADB has an envelope of US$350 million available for Haiti, but
the money is expected to be disbursed gradually over the next
three years, officials said. Pierre said most of the
prerequisites have already been met for the disbursement of IADB
funds to Haiti, but that Haiti's absorption capacity and its
government's slow pace seem to be the obstacle to rapid release
of the funds.

The European Commission has US$27 million euros available for
Haiti, Marcel Van Opstal, chief of the European Commission in
Haiti, said. Canada has granted US$10.8 million to Haiti since
February and the money is being disbursed now. France also has
promised to provide funds to help re-launch Haiti's economy.


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


KAISER ALUMINUM: Hydro Acquiring Alpart Stake
---------------------------------------------
Hydro decided Tuesday to exercise its right to acquire a 65%
interest in the Jamaican alumina refinery Alpart and sell this
interest on to Switzerland based Glencore AG in a deal that will
enhance value creation through improved operations and cost
synergies.

As a part of its chapter 11 reorganisation, Kaiser has entered
into an agreement to sell its 65% interest in Alpart to the
Russian company RUSAL. According to the Alpart Partnership
agreement, Hydro has the right of first refusal on this
transaction. Hydro decided Tuesday to exercise this right.
Simultaneously Hydro has agreed to sell this interest on to
Glencore on identical terms and conditions. This transaction
will not generate any accounting gain or loss for Hydro. Hydro
has held 35% of Alpart since the late 1980's, and Hydro's annual
off-take is approximately 550,000 tonnes of alumina.

In terms of the agreement with Glencore, Alpart will change from
being operated by a managing partner, to having an independent
management. This will enhance management focus and contribute to
strengthen the recent positive trends in Alpart. Both owners
will be active participants in the Board of Directors.

Furthermore the agreement contemplates an optimisation of
bauxite reserves between Alpart and Windalco, an alumina
refining company in Jamaica, 93% owned by Glencore. The balance,
seven percent, is held by the Government of Jamaica.

Hydro and Glencore have also entered into a Memorandum of
Understanding, committing the parties to explore the possibility
of a closer cooperation and utilisation of synergies between
Alpart and Windalco. Windalco has an annual production of
approximately 1.25 million tonnes of alumina.

Any optimisation of bauxite mining activities, as well as the
changes in ownership in Alpart, will be subject to approval by
the Jamaican government.

"Hydro believes the agreement with Glencore holds a strong
industrial logic that will create value for the companies
involved and enhance the position of the Jamaican bauxite and
alumina industry", says Jon-Harald Nilsen, Executive Vice
President of Hydro and head of the company's aluminium
operations.

Alumina is the key raw material for the production of primary
aluminium. In addition to Alpart, Hydro holds a 34 per cent
interest in the Brazilian alumina refinery Alunorte which after
the completion of the ongoing expansion will give Hydro the
right to an off-take of approximately 1.4 million tonnes of
alumina.

Hydro last year produced 1,470,000 tonnes of primary aluminium
in its seven fully-owned and five part-owned plants in Europe,
Australia and Canada. Approximately 3 million tonnes of alumina
is needed for the production of this metal volume. The primary
production volume will over the next few years increase due to
completion of expansion projects in Norway and Canada. Hydro is
a leading energy and aluminium supplier operating in more than
40 countries.

Hydro is one of the worlds leading producers of offshore oil and
gas, the third largest aluminium supplier globally.

Glencore AG is a subsidiary of Glencore International AG, a
privately-owned company organised under the laws of Switzerland.
Glencore is a leading, diversified natural resources group with
worldwide activity in the mining, smelting, refining, processing
and trading of metals and minerals, energy products and
agricultural products. These activities are supported by
strategic investments in industrial assets relating to
Glencore's core physical marketing business.

Headquartered in Baar, Switzerland, Glencore employs over 1,700
people worldwide in 60 offices in over 50 countries. In its
industrial operations, Glencore employs 46,000 people in 18
plants in 11 countries, including Windalco in Jamaica, Aughinish
alumina refinery in Ireland, and Eurallumina alumina refinery in
Italy.

CONTACT:  HYDRO ALUMINIUM
          Thomas Knutzen
          Tel: +47-22539115
          Cellular: +47-90612359
          E-mail: Thomas.Knutzen@hydro.com

          Norsk Hydro
          Tel: +47-22-53-81-00
          Fax: +47-22-53-79-30


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


CORPORACION DURANGO: NYSE Suspends ADR, Note Trading
----------------------------------------------------
Corporacion Durango S.A. de C.V. announced Tuesday that the New
York Stock Exchange has suspended trading in the company's
American Depositary Receipts (ADRs), 13 1/8% Senior Notes due
2006 and 13 1/2% Senior Notes due 2008 that trade under the
ticker symbols CDG, CDGO 06 and CDGO 08, respectively, and that
an application to the Securities and Exchange Commission to
delist the ADRs and the Senior Notes is pending the completion
of applicable procedures, including appeal by Corporacion
Durango of the NYSE staff's decision. Corporacion Durango does
not plan to make such an appeal.

The NYSE took this action following Corporacion Durango's
announcement that it had filed for "concurso mercantil" in
Mexican court under the Mexican Business Reorganization Law (Ley
de Concursos Mercantiles). The Company noted that the NYSE's
decision in no way affects its ability to complete the
restructuring process and would not affect the operations of
Corporacion Durango's subsidiaries.

Corporacion Durango's ADRs are eligible to trade on the Over the
Counter Bulletin Board and may become quoted in the Pink Sheets
upon application by a market maker. Corporacion Durango cannot
provide assurance with respect to when, or if, market makers can
be found, applications are prepared and accepted, or quotations
will be available.


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


MILLICOM INTERNATIONAL: Reports Shareholder Meeting Results
-----------------------------------------------------------
Millicom International Cellular S.A. held Tuesday its Annual
General Meeting (AGM) of Shareholders in Luxembourg.

The AGM re-elected Vigo Carlund, Ernest Cravatte, Lars-Johan
Jarnheimer, Daniel Johannesson, Raymond Kirsch, Michel Massart
and Cristina Stenbeck as members of the Board of Directors.
Donna Cordner was elected as a new member of the Board of
Directors. PricewaterhouseCoopers was re-elected as Auditor.

Donna Cordner is the former Managing Director and Global Head of
Telecommunications and Media Structured Finance group at
Citigroup. She has also held senior management positions at
Societe Generale and ABN AMRO Bank N.V in the U.S. and Europe,
including as the Director of ABN's Latin America
Telecommunications Project Finance and Advisory Group. Ms
Cordner is currently CEO of HOFKAM Limited, which is the largest
rural microfinance company in Uganda.

The AGM resolved to grant 540,000 share options to certain
directors and employees of Millicom. The options are exercisable
at a 10% premium to the closing market price of Millicom shares
on the Nasdaq Stock Market on May 25, 2004. The maximum
potential dilution of the current issued share capital of
Millicom as a result of the granting of these new share options
is 0.6%.

A second shareholders' meeting will be convened for point 8 of
the Agenda of the Meeting as the special quorum of 50 per cent
of the shareholders was not present. The second shareholders'
meeting will vote on a resolution in accordance with the
requirements of article 100 of the law of August 10, 1915 on
commercial companies as amended. All other resolutions proposed
to Millicom's Annual General Meeting of shareholders held
Tuesday in Luxembourg were passed.

At a Board of Directors' meeting following the AGM, Daniel
Johannesson was re-elected as Chairman of the Board of
Directors. Michel Massart was re-appointed as Chairman of the
Audit Committee and Ernest Cravatte and Raymond Kirsch were re-
appointed as members of the Audit Committee. Daniel Johannesson
was appointed as Chairman of the Remuneration Committee and Vigo
Carlund, Donna Cordner and Cristina Stenbeck were appointed
members of the Remuneration Committee.

At a Board of Directors' meeting following the AGM, it was
decided that the procedure for the nomination of Board Directors
for the AGM in 2005 will be chaired by Cristina Stenbeck as
Chairman of the Nomination Group. The Nomination Group will be
created this Fall in consultation with at least three major
shareholders and the composition of the Group will be
communicated in the results statement for the third quarter of
2004.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16
cellular operations and licenses in 15 countries. The Group's
cellular operations have a combined population under license of
approximately 387 million people.

CONTACT: MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg
         Mr. Marc Beuls
         President and Chief Executive Officer
         Telephone:  +352 27 759 327

         Mr. Andrew Best
         Investor Relations
         Telephone:  +44 20 7321 5022

         Web Site: www.millicom.com


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


PAN AMERICAN SILVER: Successfully Completes Debenture Conversion
----------------------------------------------------------------
Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is announces
that its conversion offer to holders of its 5.25% convertible
debentures has resulted in conversion of approximately US$85.4
million or 99% of the US$86.25 million of debentures.

Pan American has also prepaid the US$9.5 million La Colorada
construction loan from the International Finance Corporation.
The early repayment of this loan and the Huaron loan repaid in
April will eliminate Pan American's bank debt and save the
Company approximately US$500,000 in annual net interest expense.
The Company remains in excellent financial condition with US$120
million in cash and only US$.85 million in outstanding
convertible debentures.

According to the Company's Chairman, Ross Beaty, "I am very
pleased that we have completed the debenture conversion so
successfully and have eliminated our bank debt. All of our
silver mines are generating positive cash flow and our balance
sheet has never been in better condition. We will continue to
implement our aggressive growth plans to solidify our position
as the world's pre-eminent silver mining company."

CONTACT:  Ms. Brenda Radies
          VP Corporate Relations
          (604) 684-1175

          Web Site: www.panamericansilver.com


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


SIDOR: Creates Labor Talks Committee With Union
-----------------------------------------------
In a statement, Venezuelan steel maker Siderurgica del Orinoco
(Sidor) announced it has formed a negotiating committee with
workers' union Sutiss that would define the collective labor
agreement for 2004-2006, BNamericas relates. Sidor said that,
with the negotiations, it expects both parties to come to an
agreement that will strengthen long-term relationships.

Company human resources manager Alsacia Vahlis also aired hopes
that through the talks, the union will become an ally and an
agent of change involved in issues such as industrial safety,
training, and labor mobility. "We are looking for a model for
cooperative labor relations, where interests of the company, the
workers and the surrounding community are all represented," she
said.

The steel maker has just come off a strike led by Sutiss union
members that paralyzed operations and cost Sidor some US$3
million in daily losses. Sidor is 60%-owned by the Amazonia
consortium, while the Venezuelan government holds the remaining
40%.


                            ***********


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

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