TCRLA_Public/040528.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

             Friday, May 28, 2004, Vol. 5, Issue 105



ABRA ENTERTAINMENT: Reports Submission Set
ALEARSA: Trustee Prepares for Reports Submission
CONTACT CENTRE: Declared Bankrupt by Court
IANNONE: Initiates Bankruptcy Process Upon Court Order
LOS SURIS: Starts Insolvency Proceedings

MASTELLONE HERMANOS: Moody's Maintains Default Ratings on Bonds
MASTELLONE HERMANOS: S&P Assigns Junk Rating to Bonds
RECUPERO ENERGETICO: Enters Bankruptcy Process
TAD S.R.L: Trustee Proceeds With Reports Submission
TALLARES MECANICOS: Court Declares Company Bankrupt

SHOW TRADING: Bankruptcy Process Begins By Court Order
VICTORIO CARONELLO: Court Grants Reorganization

* No Alterations to Dubai Debt Proposal Say Argentine Officials


FOSTER WHEELER: Rolls Red Carpet for New CEO
FOSTER WHEELER: Subsidiary Wins New Refinery Contract


EMBRATEL: Sets Fixed-Line Customer Goal at 1 Million Subscribers
NET SERVICOS: Launches Broadband Partnership With
PARMALAT: Presents Net Financial Position as of April 30, 2004
USIMINAS: To Sell US$150M in Debt in Second Half


AES GENER: Inversiones Cachagua Invests in Capital Increase
PARMALAT CHILE: Acquisition Sealed by Bethia


EMCALI: Regulator Says Potes Still Boss

* Colombia Gets $250 Million Syndicated Loan, Fills Budget Gap


PETROECUADOR: Expects Drilling Contracts' Award in a Month


KAISER ALUMINUM: RUSAL Offers To Increase Bid for Alpart Stake


AHMSA: Union Expects Profit Sharing
CYDSA: Sells Printed and Laminated Film Business Unit
HYLSAMEX: Extends Credit Line
HYLSAMEX: Analysts Optimistic About Stock Performance

P U E R T O   R I C O


     -  -  -  -  -  -  -  -


ABRA ENTERTAINMENT: Reports Submission Set
Judge Gonzalez of Buenos Aires Court No. 8 scheduled the
submission of the individual reports for the Abra Entertainment
S.A. bankruptcy on September 14, 2004. A general report
containing an audit of the company's accounting and business
records as well as a summary of relevant events during the
bankruptcy process will also be presented in court on September
28, 2004.

Infobae states that Ms. Sara Maria Rey de Lavolpe serves as
trustee during the liquidation. Clerk No. 16 assists the court
on this case.

CONTACT: Abra Entertainment S.A.
         Virrey Loreto 2443
         Buenos Aires

         Ms. Sara Maria Rey de Lavolpe, Trustee
         Cerrito 1136
         Buenos Aires

ALEARSA: Trustee Prepares for Reports Submission
Mr. Antonio Canada, the trustee supervising the liquidation of
Alearsa S.A., will be validating creditors claims until August
9, 2004. The validated claims will be included in the individual
reports to be submitted in court on September 21, 2004. Mr.
Canada will also submit a general report on November 2, 2004.

Infobae reports that the company's bankruptcy case is being
handled by Buenos Aires Court No. 24. Clerk No. 47 assists the
court on this case.

CONTACT: Alearsa S.A.
         Maipu 267
         Buenos Aires

         Mr. Antonio Canada, Trustee
         Dr. Luis Belaustequi 4531
         Buenos Aires

CONTACT CENTRE: Declared Bankrupt by Court
Contact Centre S.A. will begin the liquidation process following
the court's pronouncement that the company is bankrupt, reports
Infobae. Buenos Aires Court No. 23, with assistance from Clerk
No. 46, issued the ruling after the company defaulted in its
debt payments.

The bankruptcy declaration effectively transfers control of the
company's assets to a court-appointed trustee who will supervise
the liquidation process.

IANNONE: Initiates Bankruptcy Process Upon Court Order
Iannone Juan y Iannone Pascual S.H., Operating in Mar del Plata,
is entering the liquidation process as Court No. 11 ruled that
it is Bankrupt. Infobae reveals that Clerk No. 11 aids the court
on the proceedings.

The court appointed Ms. Elsa Beatriz Palavecino as Trustee.
Creditors must submit their proofs of claims to the trustee for
verification before May 26, 2004. The trustee is also required
to prepare the individual and general reports on the bankruptcy

CONTACT: Iannone Juan y Iannone Pascual S.H.
         Ruta 226 Km. 7.5
         Mar del Plata

         Ms. Elsa Beatriz Palavecino, Trustee
         Alberdi 3065
         Mar del Plata

LOS SURIS: Starts Insolvency Proceedings
Mercedes Court No. 3 issued a resolution initiating the
reorganization of Los Suris S.R.L. The reorganization will allow
the company to draft a settlement proposal to its creditors in
order to avoid bankruptcy.

Infobae reports that the court assigned Mr. Hector E.
Gorosterrazu as trustee during the reorganization process. Mr.
Gorosterrazu will validate creditors' claims for inclusion in
the settlement proposal until August 8, 2004.

On September 20, 2004, the trustee will submit the individual
reports, which are based on the validated claims, for court
endorsement. The submission of the general report follows on
November 2, 2004.

Clerk No. 5 assists the court on the case.

CONTACT: Los Suris S.R.L.
         12 de Octubre 1540
         Bragado, Mercedes

         Mr. Hector E Gorosterrazu, Trustee
         Calle 24 Nro. 860

MASTELLONE HERMANOS: Moody's Maintains Default Ratings on Bonds
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on a total of US$375 million of corporate bonds
issued by Argentine company Mastellone Hermanos S.A., relates
the Comision Nacional de Valores (CNV), Argentina's securities

The rating, based on the Company's finances as of March 31,
2004, is assigned to bonds that are in payment default,
according to the ratings agency.

The affected bonds included $225 million "Obligaciones
Negociables, autorizadas por AGE de fecha 28.8.97." due on April
1, 2008. These bonds were classified under "Simple Issue".

Another set of bonds affected by the rating action is described
as "Programa de Obligaciones Negociables autorizado por AGE de
fechas 11 23.6.99" with unknown maturity date. These were under

MASTELLONE HERMANOS: S&P Assigns Junk Rating to Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
placed US$150 million worth of corporate bonds issued by
Mastellone Hermanos S.A. on junk level, the CNV reveals in its
Web site.

The bonds, which were given an `raD' rating, were classified as
`Program' and described as "Programa de Obligaciones Negociables
autorizado por AGE de fechas 11 y 23.6.99." The maturity date is

S&P assigns `raD' rating 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

The rating was given based on the Company's finances as of March
31, 2004.

RECUPERO ENERGETICO: Enters Bankruptcy Process
Court No. 26 of Buenos Aires issued an involuntary bankruptcy
ruling against Recupero Energetico S.A. following the company's
default in debt payments, reports Infobae.

The declaration, issued on May 26, 2004, effectively prohibits
the company from administering its assets, control of which will
be transferred to a court-appointed trustee. Any transaction
entered by the company from the declaration date onwards is
automatically void.

CONTACT:  Recupero Energetico S.A.
          Olleros 3058
          Buenos Aires

TAD S.R.L: Trustee Proceeds With Reports Submission
Mr. Hector R. Martinez, the court-appointed trustee for the TAD
S.R.L. bankruptcy, will present the case's individual and
general reports in court on September 14, 2004 and September 28,
2004, respectively.

Infobae reports that the verification of creditors' claims is
ongoing until August 2, 2004. Judge Gonzalez of Buenos Aires
Court No. 8, with assistance from Clerk No. 16, handles the
case, which will conclude with the liquidation of the company's
assets to repay creditors.

         Patagones 2747
         Buenos Aires

         Mr. Hector R. Martinez, Trustee
         Avenida Independencia 2251
         Buenos Aires

TALLARES MECANICOS: Court Declares Company Bankrupt
Tallares Mecanicos La Libertad S.C.A. entered bankruptcy on
orders from Mar del Plata Court No. 10, reveals Infobae. Working
with Clerk No. 10, the court assigned Mr. Hector Mario Hardoy as
Trustee. He is to verify Creditors' claims until June 8, 2004.

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

The individual reports, which are due on August 2, 2004, are to
be prepared upon completion of the verification process. The
court also requires the Trustee to prepare a general report and
file it on September 20, 2004.

CONTACT: Tallares Mecanicos La Libertad S.C.A.
         Mac Gaull 50
         Mar del Plata

         Mr. Hector Mario Hardoy, Trustee
         Garay 2635
         Mar del Plata

SHOW TRADING: Bankruptcy Process Begins By Court Order
Buenos Aires Court No. 18 declared Show Trading S.A. bankrupt,
reports Infobae. The declaration signals the Company to proceed
with the bankruptcy process, which will close with the
liquidation of its assets. The bankruptcy ruling also transfers
the company's assets to a court-appointed trustee.

The court, assisted by Clerk No. 35, appointed Mr. Enrique
Carlos Quadraroli, as Trustee who will authenticate proofs of
claim until June 25, 2004. Afterwards, the Trustee will prepare
the individual reports based on the results of the
authentication and then submit these reports to court on August
27, 2004. After these results are processed in court, the Mr.
Quadraroli will then submit the general report on October 8,

CONTACT: Mr. Enrique Carlos Quadraroli, Trustee
         Florida 537
         Buenos Aires

VICTORIO CARONELLO: Court Grants Reorganization
Victorio Caronello e Hijos S.A. successfully petitioned for
reorganization after Buenos Aires Court No. 18 issued a
resolution opening the company's insolvency proceedings.

During insolvency, the company will continue to manage its
assets subject to certain conditions imposed by Argentine law
and the oversight of a court-appointed trustee.

Infobae relates that the accounting firm Panelo, Buono y
Asociados will serve as trustees during the course of the
reorganization. The firm will be accepting creditors' proofs of
claims for verification until June 18, 2004.

After the verification deadline, the trustees will prepare the
individual reports and submit it in court on August 17, 2004.
The firm will also present a general report for court review on
September 28, 2004.

The company will endorse the settlement proposal, based on the
submitted claims, for approval by the creditors during the
informative assembly scheduled on April 4 next year.

Clerk No. 35 assists the court on the case.

CONTACT:  Panelo, Buono y Asociados, Trustees
          Alvarez Jonte 3861
          Buenos Aires

* No Alterations to Dubai Debt Proposal Say Argentine Officials
Argentine officials denied speculation that the government has
sweetened its proposal to restructure about US$100 billion in
defaulted debt, reports Dow Jones Newswires.

In a radio interview, Economy Minister Roberto Lavagna said that
there had been no changes to the restructuring plan first
unveiled at the annual meetings of the International Monetary
Fund in Dubai last September.

Dow Jones recalls that the original Dubai proposal called for a
"haircut" of 75% off the nominal, US$82 billion value of the
outstanding debt and said that a further US$18 billion in past-
due interest accrued since the December 2001 default would not
be paid.

However, recent news reports suggest that past-due interest
pledge is now being reconsidered, meaning that bondholders might
now expect at least some payment on that part of the debt.

Not so, Cabinet Chief Alberto Fernandez said in a separate radio
interview. Airing comments similar to Lavagna's, Fernandez said,
"Our offer is not going to be different from that which was
presented in Dubai."

"The (accrued) interest is not entering into discussion, we will
not include it in the proposal," the Cabinet Chief continued.


FOSTER WHEELER: Rolls Red Carpet for New CEO
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that
Stephen J. Davies has been appointed chairman and chief
executive officer of Foster Wheeler Energy Limited,
headquartered in the UK, effective July 1, 2004. Mr. Davies will
succeed Ian Bill, who will remain a director of the company,
supporting Davies, until his planned retirement in September

"Last July, Steve was appointed to the new position of managing
director, Global Sales, Marketing and Strategic Planning,
reporting directly to me. During the past year, he has led the
implementation of Foster Wheeler's market-focused strategic plan
and has significantly strengthened the company's E & C customer
focus in the key growth regions and across our core global
business lines," said Raymond J. Milchovich, chairman, president
and chief executive officer.

"I would like to thank Ian for his dedication and commitment to
Foster Wheeler over his 34 years with the company. Under his
leadership, the last six years have been a period of outstanding
performance by the UK group, highlighted by consistent growth
and project execution excellence. I am sure that Steve, with his
considerable operational and commercial experience, will build
on this performance."

Mr Davies has been with Foster Wheeler for 27 years and has an
extensive background in a broad range of international projects.
He has held a variety of senior management roles throughout the
company, including in the commercial/proposal group, and the
Engineering and Pharmaceutical Divisions. In 1995, he was
appointed to the Board of Foster Wheeler Energy Limited and was
assigned special responsibility for building upon the company's
existing operations in Asia.

Mr Davies has been instrumental in expanding Foster Wheeler's
business firstly in Asia, then in Australasia and Africa,
including the ongoing development of the company's execution
centers in Malaysia, Thailand, China, Singapore and South
Africa. He has acted as executive sponsor for a number of major
international projects for clients, including ExxonMobil, BP,
Shell, Huntsman, Bayer and BASF.

Mr Davies holds an honors degree in Civil Engineering from
Bristol University, is a Chartered Engineer and gained his MBA
from Cranfield University School of Management.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Richard Tauberman, 908 730 4444
         Anne Chong, +44 (0)118 913 2106
         Other Inquiries:
         908 730 4000

         Web Site:

FOSTER WHEELER: Subsidiary Wins New Refinery Contract
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that its
subsidiary Foster Wheeler Energy Limited has been awarded a
Program Management Services contract by Saudi Aramco and its
partner, Sumitomo Chemical Co., Ltd. of Japan, for the planned
development of a large, integrated refining and petrochemical
complex at the Red Sea town of Rabigh, Saudi Arabia.

Under the scope of the contract, Foster Wheeler will undertake
the 12-month Front-End Engineering Design (FEED), develop
capital and operating cost estimates and prepare bid packages.
The terms of the contract were not disclosed.

Once implemented, the proposed multi-billion dollar Rabigh
Project would be one of the largest integrated complexes ever to
be built at one time. A total of 2.2 million tons of olefins,
along with large volumes of gasoline and other refined products,
would be produced. Saudi Aramco's existing topping refinery and
infrastructure at Rabigh will serve as the base platform for the
development of the proposed complex.

Steve Davies, managing director, Global Sales Marketing and
Strategic Planning, Foster Wheeler, said: "This is a significant
win for Foster Wheeler and reflects our competitive market
position, the quality of our team, our superior engineering
capabilities and our proven capacity and ability to manage
complex, world-scale projects."

Isam A. Al-Bayat, vice president, New Business Development,
Saudi Arabian Oil Company, said: "We selected Foster Wheeler
after a rigorous review process of competitive bids because of
their in-depth petrochemical experience and the quality of their
past work for Saudi Aramco, particularly in producing high
quality FEEDs, on time, as they did for our Haradh and Qatif

O. Ishitobi, managing executive officer, Sumitomo Chemical Co.,
Ltd., said: "We are pleased to be working with Foster Wheeler on
this landmark project. They were the best qualified engineering
organization and have an impressive track record which gives us
confidence that they will deliver the results we require."

CONTACT: Foster Wheeler Ltd.
         Richard Tauberman, 908-730-4444
         Other Inquiries:


EMBRATEL: Sets Fixed-Line Customer Goal at 1 Million Subscribers
Brazilian telecoms operator Embratel seeks to increase its
current 550,000 local fixed line customer base to 1 million by
year's end, Business News Americas reports, citing Rance
Hesketh, vice president at fixed line unit Vesper

"Once we get to 850,000-950,000 customers we have the necessary
critical mass to sustain a business," Hesketh said. "From that
point we will have more aggressive targets," he said.

Fixed wireless operator Vesper won concessions in 1999 to
provide fixed line telephony in Region 1, covering the northeast
and parts of the southeast and north of Brazil. But according to
Hesketh, the Vesper brand is now being dropped to focus on
Embratel and provide a unified message to customers. As part of
this move, the Company launched in January new fixed wireless
products under the Embratel Livre brand, offering prepaid and
postpaid phone lines without charging a monthly fee.

NET SERVICOS: Launches Broadband Partnership With
In a statement, Brazilian cable television operator Net Servi‡os
de Comunicacao said it is offering cheaper broadband internet
access in partnership with sister company and internet service
provider, BNamericas reports.

The cable operator is offering to install its Virtua cable
broadband service and provide the modem for free, with just a
monthly fee of BRL49.9 (US$15.8) for 128kbps access, while
Virtua subscribers who choose to use as their ISP only
have to pay BRL9.9 for the first two months, almost half the
normal price of BRL19.9.

Net Servicos and are controlled by Brazilian media
group Globo.

PARMALAT: Presents Net Financial Position as of April 30, 2004
Parmalat Finanziaria SpA in Extraordinary Administration
revealed the Net Financial Position of the Parmalat Group as at
30 April 2004, as well as those of its principal companies in
Extraordinary Administration.

Summary Group figures:

                                 Values in millions of Euros

                               Situation at      Situation at
                              30 April 2004    31 December 2003

Short Term Financial Assets          132.1                121.3
of which:
Liquid financial assets                1.2                 20.9
Available liquidity                  130.9                100.4
Accruals on Financial Assets          62.8                 61.6
Total Short Term Financial Assets    194.9                182.9
Financial Debt                    13,436.2             13,373.3
Accruals on Financial Liabilities    237.5                212.2
Total Financial Liabilities       13,673.7             13,585.5
Total Net Financial Position     -13,478.8            -13,402.6

In addition, further financial debt of EUR49.1 million needs to
be taken into account, in relation to the situations at 31
December 2003 and 30 April 2004, this referring to companies
that are not totally Consolidated.

In order to determine the above consolidated net financial
position, the net financial positions of each Group Company were
taken as at 30 April 2004, or, where this was not available, the
most recently available financial position was used.

The latter was the case with a number of companies (particularly
those of a financial nature) whose accounts are currently in the
possession of the investigating authorities, and for a number of
international businesses that are subject to local bankruptcy

Financial debt should be considered as being largely short term
in nature, given the current situation of theoretical default on
the covenants underlying these contracts. A number of non-
Italian companies are, in this regard, currently renegotiating
their financing arrangements in order to secure the new credit
lines necessary to support their operating business.

The Consolidated Net Financial Position as at 31 December 2003,
given here for comparative purposes, is still being finally
defined by each company as well as being formally audited.
Eventual adjustments to the figures as at 31 December 2003
arising from these analyses but currently not known to the
management, could result in the revision of the Net Financial
Position as at 30 April 2004.

Taking into account the above, the Group's Net Financial
Position is substantially unchanged and has been subject to the
following two factors:

- on the asset side there has been an increase in the level of
available liquidity, largely thanks to the close attention paid
to the management of available resources and to the disposal of
Parmalat Spa's holdings in MCC Spa and Banca di Roma Spa.

- On the liabilities side, there has been a small increase
almost entirely resulting from a worsening of the exchange rates
between the Euro and currencies in countries outside Europe
where the Group operates, and by an increase in accruals on
liabilities for interest.

With reference to the Press Release of 26 January 2004 that
reported the draft PriceWaterhouseCoopers (PWC) on the financial
situation of the Parmalat Group, the following is an update that
takes account of subsequent data provided by Parmalat:

Value in millions of Euros               Net Financial Position

Draft PWC Report as at 30 September 2003             -14,300.0
Financial debt with suppliers,
(accounted for under commercial debts)                    68.0
Put option (accounted for under contingency
  provisions)                                            365.0
Other adjustments (provided for by PWC but not
  identified)                                            500.0
Parmalat balance                                     -13,367.0

In the creditor meeting that took place on 26 March 2004 a gross
debt figure of EUR14,823.0 million was referred to; this
included further potential risks that at the present time it is
not thought appropriate should be considered part of the Group's
debt. A number of these risks, that are still being carefully
evaluated by the Company's lawyers, could represent a further
EUR250.0 million in debt.

The Principal companies in Extraordinary Administration:

The following schedules summarise the situations of the
principal companies in Extraordinary Administration.

Parmalat Finanziaria Spa
Value in millions of Euros         Situation at   Situation at
                                  30 April 2004  31 December

Short Term Financial Assets          155.0             153.3
Of which:
Intercompany Financial Credits       152.8             152.8
Liquid Financial Assets                0.5               0.5
Available Liquidity                    1.7               0.0
Accruals on Financial Assets
  (incl. Interco.)                     0.0               0.6
Total Short Term Financial Assets    155.0             153.9

Financial Debt (incl. Intercompany
  Debt)                            1,268.4           1,268.4
Of which:
IntercompanyFinancial Debt         1,006.4           1,006.4
Other Financial Debt                 262.0             262.0
Accruals on Financial Liabilities,
  (incl. Interco.)                     4.7               4.8
Total Financial Liabilities        1,273.1           1,273.2
Total Net Financial Position      -1,118.1          -1,119.3

The net financial position of the company is substantially
unchanged, with a small increase in available

Parmalat Spa
Values in millions of Euros         Situation at  Situation at
                                30 April 2004  31 December 2003

Short Term Financial Assets            145.9            132.1
Of which:
IntercompanyFinancial Credits          122.8            105.8
Liquid Financial Assets                  0.0             19.7
Available liquidity                     23.1              6.6
Accruals on Financial Assets (incl.
   Interco.)                             0.0              0.0
Total Short Term Financial Assets      145.9            132.1

Financial Debt (incl. Intercompany
  Debt)                              3,912.8          3,912.8
Of which:
Intercompany Financial Debt          1,030.0          1,030.0
Other Financial Debt                 2,882.8          2,882.8
Accruals on Financial Liabilities,
(incl. Interco.)                         0.0              0.0
Total Financial Liabilities          3,912.8          3,912.8
Total Net Financial Position        -3,766.9         -3,780.7

The Net Financial Position of Parmalat Spa shows a positive
variation for the period (moving from - EUR3,780.7 million to -
EUR3,766.9 million, an improvement of EUR 13.8 million).

Liabilites were unchanged while available financial resources
were positively affected by the disposal of stakes in MCC Spa
and Banca di Roma Spa. These disposals, along with the
performance of the operating
business, generated cash that allowed for, above and beyond
covering the ongoing requirements of the business, an increase
in total available liquidity (that moved from EUR 6.6 million to
EUR 23.1 million) and the granting of intercompany credits for a
amount of EUR 16.7 million, principally in favour of units in
North America(EUR 10.7 million), Uruguay (EUR 1.7 million) and
Germany (EUR 1.6 million).

Eurolat Spa
Values in millions of Euros        Situation at   Situation at
                                  30 April 2004 31 December 2003

Short Term Financial Assets             17.2            13.6
Of which:
IntercompanyFinancial Credits            0.0             0.0
Liquid Financial Assets                  0.0             0.0
Available liquidity                     17.2            13.6
Accruals on Financial Assets
  (incl. Interco.)                       0.0             0.0
Total Short Term Financial Assets       17.2            13.6

Financial Debt (incl. Intercompany
   Debt)                               192.9           191.9
Of which:
IntercompanyFinancial Debt              45.8           45.8
Other Financial Debt                   147.1          146.1
Accruals on Financial Liabilities
  (incl. Interco.)                       0.5            1.5
Total Financial Liabilities            193.4          193.4
Total Net Financial Position          -176.2         -179.8

This Company also saw its debt position stable having had no
requirement for new financing and thanks to the cash flow
generated by operations that led to an increase in aviailable

The variation in the Other Financial Debt line as at 30 April
2004 compared to 31 December 2003 is as a result of
reclassifications relating to already made accruals for
liabilities, at the close of the previous financial year.

Lactis Spa
Values in millions of Euros       Situation at    Situation at
                                30 April 2004  31 December 2003

Short Term Financial Assets           2.2             0.4
Of which:
IntercompanyFinancial Credits         0.0             0.0
Liquid Financial Assets               0.0             0.0
Available liquidity                   2.2             0.4
Accruals on Financial Assets
  (incl. Interco.)                    0.0             0.0
Total Short Term Financial Assets     2.2             0.4

Financial Debt (incl. Intercompany
   Debt)                             20.5            20.5
Of which:
IntercompanyFinancial Debt            8.6             8.6
Other Financial Debt                 11.9            11.9
Accruals on Financial Liabilities,
(incl. Interco.)                      0.0             0.1
Total Financial Liabilities          20.5            20.6
Total Net Financial Position        -18.3           -20.2

Available liquidity increased from EUR 0.4 million to EUR 2.2
million, while financial liabilities remained unchanged compared
to 31 December 2003.

USIMINAS: To Sell US$150M in Debt in Second Half
Dow Jones reported Wednesday that Brazil's biggest flat steel
maker Usinas Siderurgicas de Minas Gerais SA (E.UUS), or
Usiminas, is planning to sell for the second half of this year a
total of US$150 million in overseas or domestic debt.

Citing a report by local newswire Agencia Estado, Dow Jones
relates that according to Usiminas CEO Paulo Magalhaes, the
company can use debentures or the overseas market with Eurobonds
to tap into the domestic market. He added that the company
expects recent market turbulence to pass, opening opportunities
to sell debt on more attractive terms later in the year.

The cost of borrowing and financing dollar-linked debt for local
companies have been driven up by a recent drop in the real and
Brazil's risk ratings caused by a shift in international capital
flows. Usiminas may get some measure of protection from currency
fluctuations because it earns some dollar income, but it is also
burdened with a total gross debt of BRL7.6 billion ($1=BRL3.15)
at the end of March.


AES GENER: Inversiones Cachagua Invests in Capital Increase
AES Gener S.A. (the "Company") announced May 25, 2004 that in
connection with the previously announced capital increase of
approximately US$114 million (the "Primary Offering"),
Inversiones Cachagua Limitada, the Company's largest shareholder
and immediate parent company, subscribed and paid for the
Chilean peso equivalent of US$97.79 million of the Primary

Pursuant to Chilean law, the Primary Offering must remain open
to shareholders for a minimum of thirty days from the date of
commencement and, therefore, is currently scheduled to expire on
June 19, 2004.

The Company expects that a portion of the proceeds from the
Primary Offering will be used to finance its previously
announced redemption of the entire outstanding principal amount
of its 6% U.S. convertible notes due 2005 and 6.0% Chilean
convertible notes due 2005, which will occur on May 31, 2004.

          Mr. Daniel Aninat
          (562) 686-8938
          Vanessa Thiers
          (562) 686-8948
          Web Site:

PARMALAT CHILE: Acquisition Sealed by Bethia
The US$15 million acquisition by Chilean investment group Bethia
of the Chilean unit of insolvent Italian dairy group Parmalat
has been closed Wednesday, according to a Reuters report.

Bethia, which has also expressed interest in buying Parmalat's
Uruguayan assets, entered an agreement to acquire Parmalat Chile
in February. Creditor banks and milk farmers the company owes
money to approved the purchase earlier this month.

Parmalat Chile, the country's fifth-largest milk producer in
2003 with sales of US$45 million, will be steered by Bethia into
becoming Chile's third largest dairy producer by next year, said
the group's executive vice president Carlos Heller. To help
achieve that goal, Bethia will invest US$5 million for Parmalat
Chile's expansion, a step that is called for by the deal. The
deal also includes Bethia paying Parmalat's debts to suppliers
between US$3 million and US$5 million, and the use of Parmalat's
brand name for 15 years.

Bethia is run by the Solari and Del Rio families, who also own
the department store retailer Falabella SA, among other assets.


EMCALI: Regulator Says Potes Still Boss
Despite the decision of the regional attorney to remove Carlos
Potes as general manager of Emcali, Evamaria Uribe, the
country's public services regulator still kept Mr. Potes as head
of the Colombian multi-utility, reveals BNamericas.

Ms. Uribe said. "Dr. Potes will continue in his post because
this process has not been judged. He is going to appeal. because
he has all the legal support to argue his decisions."

Citing supposed commission of irregularities concerning various
contracts in 2002 and 2003, the regional attorney dismissed Mr.
Potes from his post and disqualified him for seven years.

* Colombia Gets $250 Million Syndicated Loan, Fills Budget Gap
In a press release Tuesday, Colombia's ministry of finance said
the government has obtained a US$250 million five-year
syndicated loan that fulfills its budget needs for 2004,
according to Dow Jones.

"The loan conditions were more favorable for Colombia than if it
had tried to obtain this money through international capital
markets, which are (now) practically closed to Latin American
sovereign bonds," said the finance ministry. For the first year,
servicing will be based on the London Interbank Offered Rate, or
Libor, plus 275 basis points, while servicing terms in the final
year subsequently increase to 335 basis points over Libor.

BNP Paribas and JP Morgan Securities led the transaction, while
ABN Amro, Banco de Bogota, Barclays, BBVA, Deutsche Bank, HVB,
Mizuho and Standard Bank acted as the arrangers.

Colombia has promised under its loan program with the
International Monetary Fund to narrow its fiscal deficit to 2.5%
of gross domestic product this year from 2.8% in 2003.


PETROECUADOR: Expects Drilling Contracts' Award in a Month
Ecuador's state oil company Petroecuador is hoping to award two
integrated one-year drilling services contracts within a month,
Business News Americas reports, citing a company spokesperson.

In a statement, the Company named Ecuador's Drillfor, China's
Sinopec, and US companies Ross Energy, Pride and Hardtrade as
the bidders for the contract to drill 12 exploration wells on
the Lago Agrio, Shushuqui and Sansahuari fields.

For a separate contract to drill 9 exploration and production
wells on the Pacay and Cuyabeno fields, Petroecuador named
Hardtrade, Sinopec and fellow Chinese company CPEB as bidders.

Petroecuador will take about 10-12 days to review the bids, the
state purchasing officer will take another 15 days to approve
the contracts and finally Petreoecuador's tenders committee will
award the contracts.

Drilling could start one month after contracts are awarded,
provided the rigs are already in Ecuador, the spokesperson said.


KAISER ALUMINUM: RUSAL Offers To Increase Bid for Alpart Stake
RUSAL, one of the world's leading aluminium producers, announced
that it has offered to increase the purchase price by US$10
million to US$316.2 million, prior to certain adjustment, for
Kaiser Aluminum's majority 65% stake in Alpart, a major mining
and refining asset in Jamaica.  This offer is only contingent if
Hydro Aluminum Jamaica, as the other 35% owner of Alpart,
exercises its right of first refusal that is expected to expire
on May 26, 2004, enforceability of which has been repeatedly
questioned by RUSAL in the US Bankruptcy Court for the District
of Delaware.

In a letter to Kaiser Aluminum, RUSAL re-stated that it is
prepared to consummate the purchase on an expedited basis with
no additional financial or other contingencies. On April 26th
2004, the U.S. Bankruptcy Court for the District of Delaware
approved RUSAL's agreement with Kaiser to purchase its 65% stake
for $306.2 million.


Headquartered in Moscow, RUSAL, a world leader in aluminium
production was formed in March 2000 from the merger of a number
of the largest smelters and other aluminium producers located in
the CIS. The company accounts for 75% of Russia's primary
aluminium output and 10% of the global primary aluminium output.
RUSAL is a fully vertically integrated company with a complete
production cycle from bauxite mining and the production of raw
materials, to the production of primary metal, semi-products and
aluminium-based end products.

          Eugenia Harrison
          Tel: + 7 095 720 5170

          Lekha Rao
          Tel: + 212-333-3810
          Tel: +646-226-0254


AHMSA: Union Expects Profit Sharing
Although Mexican steelmaker Altos Hornos de Mexico or Ahmsa has
not yet published financial results for the fourth quarter of
2003, a union leader has been quoted by local newspaper La
Vanguardia as saying that the steelmaker could hand out to
workers 10% of 2003 corporate profits this year after 10
consecutive years of declaring losses, says BNamericas.

Union leader Jose Angel Hernandez said the delay in reporting
4Q03 results "gives us confidence that this year there could be
profit sharing, although very little." Ahmsa was originally
slated to disclose the results by April 31.

For Ahmsa to be able to do so, the company would have to have
experienced a strong fourth quarter to report a 2003 profit. The
company closed the first three quarters of 2003 with a MXN1.07
billion (US$94mn) loss, despite lifting steel prices in mid-

CYDSA: Sells Printed and Laminated Film Business Unit
Cydsa, S.A. de C.V. (CYDSA) concluded Wednesday the sale of
assets and operations from its printed and laminated film
business (Tultitlan Plant), to Bemis Flexible Packaging de
Mexico, S.A. de C.V., a subsidiary of Bemis Company, Inc. based
on Minneapolis, Minn., U.S.A. (NYSE: BMS)

This sale of this Business Unit is part of the Divestiture
Strategic Plan approved by Cydsa's Board of Administration. This
business represents approximately 6% of consolidated sales, 6.3%
of assets, and 7.5% of Cydsa Group's total bank debt.

Additionally Cydsa informs that the other Masterpak's businesses
will continue the production and marketing of Bioriented
polypropylene film (BOPP-Propirey) and folding carton packaging

          Jesus Montemayor, Treasury Director

HYLSAMEX: Extends Credit Line
Mexican steelmaker Hylsamex said Wednesday that Hylsa, its main
unit, has extended a line of revolving credit for US$40 million
by a year, Reuters relates.

Hylsamex, Mexico's third-largest steelmaker, said the credit
line had been available from October 2003 but had not yet been
used. The company also said that it will use the credit line for
working capital, and that it would strengthen Hylsa's liquidity.

According to the steelmaker, JP Morgan Chase acted as the lead
manager and that Banamex-Citibank, Banorte , Comerica, HSBC,
Hypo-Vereinsbank and Inbursa participated in the loan.

Hylsamex is 51%-owned by Alfa, which is planning to spin off its
steelmaking arm in the first quarter next year.

HYLSAMEX: Analysts Optimistic About Stock Performance
Mexican steelmaker Hylsamex is primed to post its best
performance this year according to forecasts made by UBS
Investment Research. The industry research firm points out the
overall prospects for the steel industry as well as the
company's intentions to lower debt will boost the value of its
shares in the coming months.

Dow Jones reports that UBS fixed a 12-month price target of 20
pesos ($1=MXN11.4690) for the company's class B shares. UBS
expects further improvements in addition to the sharp gains made
after parent Alfa SA (ALFA.MX) spun off 39% of the Hylsamex in
February. Alfa plans to spin off the remaining 51% of the
company in the first quarter of 2005.

UBS gave a buy recommendation for the company's stock when it
began its coverage of Hylsamez on Wednesday. The company's class
B shares surged 1.6% to MXN16.00 following the announcement. Its
CPO shares also gained 2% to close at MXN16.06. These CPO
shares, pledged against Hylsamex debt, correspond to the stake
sold by Alfa in February.

P U E R T O   R I C O

Centennial Communications Corp. (NASDAQ:CYCL) announced
Wednesday that it is evaluating strategic alternatives for its
wholly owned subsidiary, Centennial Puerto Rico Cable TV Corp.
("Centennial Cable TV"). Centennial Cable TV operates a digital
cable television system that serves approximately 73,500
subscribers and passes over 300,000 contiguous homes in southern
and western Puerto Rico.

The Company has engaged Waller Capital Corporation as its
strategic advisor to assist in evaluating a range of possible
strategic and financial alternatives for its cable television
properties designed to enhance shareholder value. There can be
no assurance, however, that the Company will undertake any
particular action as a result of this review.

About Centennial

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and
the Caribbean with approximately 17.3 million Net Pops and
approximately 1,027,500 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 million Net Pops in Puerto Rico, the
Dominican Republic and the U.S. Virgin Islands, and provides
voice, data, video and Internet services on broadband networks
in the region. Welsh, Carson Anderson & Stowe and an affiliate
of the Blackstone Group are controlling shareholders of

CONTACT: Mr. Eric S. Weinstein
         Centennial Communications Corp.

         Web Sites:


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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