TCRLA_Public/040531.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Monday, May 31, 2004, Vol. 5, Issue 106

                          Headlines


A R G E N T I N A

ADSUM: Prepares for Reorganization
DOSO: Verification Deadline Fixed
ESTABLECIMIENTO INDUSTRIAL: Verification Deadline Approaches
FEDERATIVA DE CENTROS: Declared Insolvent by Court
FRIO NORTE: Court Converts Bankruptcy to Reorganization

HALYO HERMANOS: Get Court's Ok for Reorganization
INDUSTRIAS EUROMODA: Court Orders Liquidation
IMTEK: Court Schedules Verifications Cut-off
MAGNA PLAST: Creditors Bankruptcy Motion Gets Court's Nod
MECANIZAR: Readies Settlement Proposal for Approval

MONTAESCALERAS: Court Approves Creditor's Bankruptcy Call
OESTE FABRIL: Initiates Reorganization
SOLSER: Seeks Reorganization Approval From Court
TE INSTALCOM: Court OKs Creditor's Bankruptcy Call
TEXUL: Court Appoints Trustee for Reorganization

TRANSENER: Creditor Files Involuntary Bankruptcy Petition
VIALCOM: Enters Bankruptcy Process
YACYRETA: Newly Created Group To Tackle Financial Woes

*Argentina to Present Final Offer to Bondholders This Week


B R A Z I L

CSN: S&P Assigns `BB' Local-Currency Corporate Credit Rating
CSN: Fitch Rates Export Receivables Master Trust Certificates
CSN: CSN Islands VI Corp. 2004-1 Notes Assigned Prelim Rating
ENRON: Obtains Enough Votes to Confirm Reorganization Plan
MRS LOGISTICA: Cuts Debt to R$623.6 Mln in 1Q04


C H I L E

TELEFONICA CTC: No Easy Sale for Mobile Division


J A M A I C A

KAISER ALUMINUM: Debtors Seeks to Delay Alpart Sale


M E X I C O

AEROMEXICO: Signs Code-Sharing Deal With Spanish Airline
GRUPO MEXICO: Rail Companies Agree to Restructure Corporate Debt
HYLSAMEX: Mulls Various Options to Facilitate Debt Refinancing
SATMEX: Managers Scramble To Strike Agreement With Creditors


P U E R T O   R I C O

CARIBBEAN RESTAURANTS: Proposed Bank Loan Gets B2 Rating


T R I N I D A D   &   T O B A G O

CDC: T&T Labor Minister Moves to Put an End to Dispute

     -  -  -  -  -  -  -  -

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

ADSUM: Prepares for Reorganization
----------------------------------
Buenos Aires Judge No. 3, with assistance from Clerk No. 5,
issued a resolution beginning the reorganization of Adsum S.R.L.
This pronouncement authorizes the company to draft a settlement
proposal with its creditors in order to prevent the liquidation
of the company. The reorganization allows Adsum to retain
control of its assets subject to certain conditions imposed by
Argentine law and the oversight of the court appointed trustee.

Infobae reports that Mr. Santiago Manuel Quiben will serve as
trustee during the course of the reorganization. He will be
validating creditors' proofs of claims until July 14, 2004. The
results of the verification will be presented in court as
individual reports on September 9, 2004. The trustee is also
obligated to give the court a general report of the case on
October 22, 2004. The general report summarizes events relevant
to the reorganization and provides an audit of the company's
accounting and business records.

Adsum will present the completed settlement proposal to its
creditors during the informative assembly scheduled on April 25,
2004.

CONTACT: Adsum S.R.L.
         Malabia 2174
         Buenos Aires

         Mr. Santiago Manuel Quiben, Trustee
         Esmeralda 783
         Buenos Aires


DOSO: Verification Deadline Fixed
---------------------------------
The verification of creditors' claims for the Doso S.R.L.
insolvency case is set to end on August 3, 2004, stated Infobae.
Mr. Jose Andres Sabuqui, the court-appointed trustee tasked with
examining the claims, will submit the validation results as
individual reports on September 15, 2004. He will also present a
general report in court on October 28, 2004.

On April 27 next year, the company's creditors will vote on the
settlement proposal prepared by the company. Infobae added the
company's reorganization is handled by Buenos Aires Court No. 5.
Clerk No. 10 assists the court in the proceedings.

CONTACT: Doso S.R.L.
         Viamonte 1592
         Buenos Aires

         Mr. Jose Antonio Sabuqui, Trustee
         Bernardo de Irigoyen 330
         Buenos Aires


ESTABLECIMIENTO INDUSTRIAL: Verification Deadline Approaches
------------------------------------------------------------
The verification of claims for the Establecimiento Industrial
Suizo Argentino S.A. bankruptcy will end on August 10, 2004
according to Infobae. Creditors with claims against the bankrupt
company must present proof of the liabilities to Mr. Luis
Abranzon, the court-appointed trustee, before the deadline.

Buenos Aires Court No. 15 handles the company's case with the
assistance of Clerk No. 29. The bankruptcy will conclude with
the liquidation of the company's assets to pay its creditors.

CONTACT: Mr. Luis Abranzon, Trustee
         Pringles 835
         Buenos Aires


FEDERATIVA DE CENTROS: Declared Insolvent by Court
--------------------------------------------------
Cordoba Commercial and Civil Court No. 4 issued a resolution
initiating the reorganization of Union Federativa de Centros de
Jubilados y Pensionados de la Provincia de Cordoba U.Fe.Cen.Cor.
on May 27, 2004, reports Infobae.

The court's insolvency declaration will permit the Union to
formulate a settlement plan with its creditors. Mr. Angel Jose
Pedano will oversee the reorganization as the court-appointed
trustee.

CONTACT: Mr. Angel Jose Pedano, Trustee
         Coronel Olmedo 51
         Cordoba


FRIO NORTE: Court Converts Bankruptcy to Reorganization
-------------------------------------------------------
Salta Court No. 2 commuted its bankruptcy ruling for Frio Norte
S.R.L. into a preventive reorganization, Infobae relates. The
new reorganization case will still be subject to all the
substantive and procedural requirements for insolvency filings.

Mr. Alejandro Jose Karanicolas will serve as trustee during the
reorganization proceedings. He will verify creditors' claims
until June 23, 2004. The court also requires the trustee to
submit the individual reports on August 23, 2004 and the general
report on October 6, 2004.

CONTACT: Frio Norte S.R.L.
         Aniceto Latorre 699
         Salta

         Mr. Alejandro Jose Karanicolas, Trustee
         Avenida Belgrano 1277
         Salta


HALYO HERMANOS: Get Court's Ok for Reorganization
------------------------------------------------
Buenos Aires-based Company Halyo Hermanos S.R.L. begins the
insolvency process after the city's court No. 16 granted its
motion for reorganization. Clerk No. 32 will assist the court
during case's run.

According to Infobae, Mr. Nestor Raul Rozemberg will supervise
the reorganization as the company's trustee. He will be
accepting creditors' claims for verification until September 1,
2004. The verification phase is a crucial part in the
reorganization since it determines the creditors who will be
included in the company's settlement proposal.

Mr. Rozemberg will present the accepted claims in court as
individual reports on October 14, 2004. The submission of the
case's general report follows on November 25, 2004. The court's
acceptance of the general report and endorsement of the
individual claims will pave the way for the informative assembly
on July 13, 2005.

CONTACT: Mr. Nestor Raul Rozemberg, Trustee
         Mansilla 3696
         Buenos Aires


INDUSTRIAS EUROMODA: Court Orders Liquidation
---------------------------------------------
Industrias Euromoda S.R.L. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Buenos Aires
Court No. 9 on May 27, 2004. The declaration effectively
prohibits the company from administering its assets, control of
which will be transferred to a court-appointed trustee.

Infobae reports that the court appointed Mr. Juan Alberto
Krimerman as trustee. He will be reviewing creditors' proofs of
claims until July 14, 2004. The verified claims will be the
basis for the individual reports to be presented for court
approval on September 6, 2004. Afterwards, the trustee will also
submit a general report on October 26, 2004.

Clerk No. 17 assists the court on this case, which will end with
the disposal of the company's assets to cover its liabilities.

CONTACT:  Mr. Juan Alberto Krimerman, Trustee
          Uruguay 594
          Buenos Aires


IMTEK: Court Schedules Verifications Cut-off
--------------------------------------------
Mr. Jorge Eduardo Oddi, trustee for the Imtek S.A. bankruptcy,
will accept creditors' claims for validation until August 18,
2004. Claims forwarded after the validation period will not be
included in the payments to be made once the company is
liquidated.

Infobae states that Buenos Aires Judge No. 15, with assistance
from Clerk No. 29, handles Imtek's bankruptcy case.

CONTACT: Mr. Jorge Eduardo Oddi, Trustee
         Libertad 293
         Buenos Aires


MAGNA PLAST: Creditors Bankruptcy Motion Gets Court's Nod
---------------------------------------------------------
Ipab S.R.L. successfully sought for the bankruptcy of Magna
Plast S.A. after Judge Taillade of Buenos Aires Court No. 20
declared the Company "Quiebra," reports La Nacion.

As such, the plastic-molding company will now start the
bankruptcy process with Mr. Roberto Leibovicius as trustee.
Creditors of the Company must submit their proofs of claim to
the trustee before August 30,2004 for authentication. Failure to
do so will mean a disqualification from the payments that will
be made after the Company's assets are liquidated.

Ipab sought for the Company's bankruptcy after the latter failed
to pay debts amounting to US$ 4,520.68. Dr. Amaya, Clerk No. 39,
assists the court on the case, which will culminate in the
liquidation of all of its assets.

CONTACT: Magna Plast S.A.
         Hipolito Yrigoyen 434
         Buenos Aires

         Mr. Roberto Leibovicius, Trustee
         Tucuman 1585
         Buenos Aires


MECANIZAR: Readies Settlement Proposal for Approval
---------------------------------------------------
Mecanizar S.R.L. will present the settlement proposal drafted
for its creditors during the Company's bankruptcy proceedings at
the informative assembly on July 24, 2004.

The informative assembly, the final stage of a reorganization,
will be held at the Commercial and Civil Court of San Jose de
Metan in Salta. Infobae reports that Salta Court No. 2 is
handling Mecanizar's insolvency case.

CONTACT: Mecanizar S.R.L.
         San Jose de Metan
         Salta


MONTAESCALERAS: Court Approves Creditor's Bankruptcy Call
---------------------------------------------------------
Judge Garibotto of Buenos Aires Court No. 2 declared
Montaescaleras S.A. bankrupt, says La Nacion. The ruling comes
in approval of the bankruptcy petition filed by the Company's
creditor, Instituto Saint Michel S.R.L., for nonpayment of US%
6,500 in debt. Clerk No. 4, Dr. Romero, assists the court on the
case, which will conclude with the liquidation of the Company's
assets.

The court-appointed trustee, Mr. Claudio Haimovici, will examine
and authenticate creditors' claims until August 12, 2004. This
is done to determine the nature and amount of the Company's
debts. Creditors must have their claims authenticated by the
trustee by the said date in order to qualify for the payments
that will be made after the Company's assets are liquidated.

CONTACT:  Montaescaleras S.A.
          Murillo 1082
          Buenos Aires

          Mr. Claudio Haimovici, Trustee
          Sarmiento 3843
          Buenos Aires


OESTE FABRIL: Initiates Reorganization
--------------------------------------
Oeste Fabril S.A., a textile company operating in Buenos Aires,
received authorization from the court to proceed with its
planned reorganization. La Nacion informs that Judge Ojea
Quintana of the city's Court No. 12, with the assistance of
Clerk No. 24 Dr. Medici Garrot, issued the ruling.

Records provided by Oeste Fabril indicate that the company
claims assets of US$ 217,800.89. The company also reported
liabilities amounting to US$ 444,000.00.

Ms. Norma Balmes will oversee the reorganization as the court's
trustee. Creditors must submit proof of the company's
indebtedness to the trustee before August 9, 2004 to qualify for
the settlement proposal being drafted by the company.

The informative assembly, the final stage of the reorganization,
is scheduled on May 10, 2005.

CONTACT: Oeste Fabril S.A.
         Armenian 1356
         Buenos Aires

         Ms. Norma Balmes, Trustee
         Av. Presidente Roque S enz Pe¤a 1185
         Buenos Aires


SOLSER: Seeks Reorganization Approval From Court
------------------------------------------------
Judge Fernandez of Buenos Aires Court No. 19 is currently
reviewing the merits of the reorganization petition filed by
Solser S.R.L. Argentine daily La Nacion reports that the company
filed the request after defaulting on its debt payments since
March 18, 2004.

The reorganization petition, if granted by the court, will allow
Solser to negotiate a settlement with its creditors in order to
avoid a straight liquidation. Dr. Johnson, Clerk No., 38 assists
the court on this case.

CONTACT: Solser S.R.L.
         Sarmiento 647
         Buenos Aires


TE INSTALCOM: Court OKs Creditor's Bankruptcy Call
--------------------------------------------------
Te Instalcom S.A. entered bankruptcy after Judge Ballerini of
Buenos Aires Court No. 24 approved a bankruptcy motion filed by
Hijos de Roberto C. De Monte S.A., reports La Nacion.

Working with Dr. Diaz, the city's Clerk No. 48, the company
assigned Mr. Enrique Battellini as trustee for the bankruptcy
process. The trustee's duties include the authentication of the
Company's debts and the preparation of the individual and
general reports. Creditors are required to present their proofs
of claims to Mr. Battellini before August 3, 2004.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: TE Instalcom S.A.
         Hipolito Yrigoyen 455
         Buenos Aires

         Mr. Enrique Battellini, Trustee
         Parana 774
         Buenos Aires


TEXUL: Court Appoints Trustee for Reorganization
------------------------------------------------
Texul S.A., a company operating in Buenos Aires, is ready to
start its reorganization after Court No. 1 appointed Mr. Juan
Carlos Rico to supervise the proceedings as trustee. Clerk No. 2
assists the court on this case.

An Infobae report states that Mr. Rico will verify creditors
claims until September 2, 2004. Afterwards, he will present
these claims as individual reports for the court's final review
on October 18, 2004. He will also provide the court with a
general report pertaining to Texul's reorganization on November
29, 2004. The court has scheduled the informative assembly for
June 1, 2005.

CONTACT:  Texul S.A.
          Reconquista 1016
          Buenos Aires

          Mr. Juan Carlos Rico, Trustee
          Viamonte 1546
          Buenos Aires


TRANSENER: Creditor Files Involuntary Bankruptcy Petition
---------------------------------------------------------
Ailing Argentine high-voltage power transporter Compania de
Transporte de Energia Electrica de Alta Tension Transener SA
(TRAN.BA) faces yet another dilemma, reports Dow Jones
Newswires.

On Wednesday, Transener informed the Buenos Aires stock exchange
that a creditor has filed a bankruptcy petition against the
company in a local commercial court. This "individual holder"
possesses 40,627 bonds, Transener said, without revealing the
name of the creditor nor how much money those obligations
represent. Transener said it would use all defenses at its
disposal to protect its rights and "continues actively with the
process of the restructuring of its financial debt."

Barely two weeks ago, Transener said about US$11.5 million in
payments due from the national grid operator, Cammesa, will be
blocked as part of a commercial court ruling in favor of
Financiera Ludicor SA, a Transener creditor. The Company said it
would use its own resources to pay for operating costs during
the approximate one-month period covered by the Cammesa
payments.

CONTACT:  Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


VIALCOM: Enters Bankruptcy Process
----------------------------------
Vialcom S.R.L. entered bankruptcy on orders from Buenos Aires
Court No. 19, reveals Infobae. Working with Clerk No. 37, the
court assigned Ms. Beatriz del Carmen Muruaga as trustee. She is
to verify creditors' claims until August 4, 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 September 15, 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 October 27, 2004. This report contains a summary of
the results in the individual reports.

CONTACT: Mr. Beatriz del Carmen Muruaga, Trustee
         Aguero 1290
         Buenos Aires


YACYRETA: Newly Created Group To Tackle Financial Woes
------------------------------------------------------
Paraguay created a group, whose task is to negotiate with
Argentina the financial future of the Yacyreta hydroelectric
dam, a joint venture project between the two countries.

Business News Americas reports that the group, together with
Argentina, will tackle the restructuring of the debt of the
project's operator - Entidad Binacional Yacyreta (EBY), electric
power rates and the co-management of the entity's financial
administration.

The creation of the group follows an agreement signed by the two
governments earlier this month to complete infrastructure
projects at Yacyreta. The accord commits the two countries to
keep EBY afloat and help it secure the necessary financing to
complete US$600 million in works which would allow the dam to
reach its 83m-design target.


*Argentina to Present Final Offer to Bondholders This Week
----------------------------------------------------------
Argentina's Cabinet Chief Alberto Fernandez said that the
government will have a final offer for bondholders this week to
restructure US$99.4 billion in debt, relates Bloomberg.

Last year, the government said it would pay 25 cents per $1 in
face value on the defaulted bonds, an offer that was rejected by
bondholders and spurred dozens of lawsuits. But reports are rife
that the government will improve the offer.

In response to these reports, the Cabinet Chief said: "I prefer
not to make any speculation on what the offer will be until
then."

Argentina needs to restructure its debt to boost investor
confidence and meet the terms of a US$13.3 billion aid agreement
with the International Monetary Fund that enables the country to
roll over debt payments with multilateral organizations.



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

CSN: S&P Assigns `BB' Local-Currency Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it
assigned its 'BB' local-currency corporate credit rating to
Brazilian steel maker Companhia Siderurgica Nacional (CSN). At
the same time, the 'B+' foreign currency corporate credit rating
assigned to CSN, as well as to the guaranteed notes issued by
its offshore subsidiaries, was affirmed. The outlook on the
local-currency corporate credit rating is stable. The outlook on
the foreign-currency corporate credit rating is positive.

The local-currency rating reflects CSN's exposure to the
volatile and cyclical global steel industry, which despite its
current favorable price environment, has continually suffered
from strong price oscillations in the past; the company's
relative exposure to the volatile (and until recently sluggish)
Brazilian economy; and a still heavy leverage profile (for
analytical purposes, Standard & Poor's adds up debts at the
controlling shareholder level, as described below). Despite its
improved duration, current debt levels still pose some risks to
CSN in the future, as there is still some debt maturity
concentration in specific years. Finally, the ratings
incorporate the risks of CSN's significant capital expenditure
program for the next three to four years, aimed at bringing the
production capacity of its Casa de Pedra iron ore mine up to a
pace of 40 million tons per year.

These risks are offset by CSN's sound operating and business
profiles, evidenced by its distinguished positioning in the
global steel industry (as a low-cost, highly integrated carbon
flat steel producer), strong export capabilities, and increasing
business diversification in the years ahead with the addition of
an iron ore export operation. The ratings also factor CSN's
strong liquidity in the form of high cash reserves, and
resilient and robust positive free operating cash flow.

"Prospects for CSN in the medium term are positive," said
Standard & Poor's credit analyst Reginaldo Takara. "The company
is expected to continue reporting very robust operating cash
generation in the following quarters, benefiting from a
favorable (though not necessarily extremely strong) steel price
environment and a gradually improving domestic economy in
Brazil," Mr. Takara said. While high coal and coke costs should
continue adding some pressure to CSN's cost structure, they are
not expected to hurt the fundamentals and sustainability of the
company's strong operating performance (especially considering
that CSN is able to obtain 100% of its iron ore requirements
from its own corporate mine, which provides it with more
operational flexibility). The addition of exports of more than
20 million tons per year of iron ore products (starting in 2005
and reaching capacity in 2007) is also a positive for CSN's
business profile, as the iron ore seaborne market tends to be
considerably more stable than is the global steel market. While
capital expenditures are substantial to raise production at Casa
de Pedra, they do not impose significant technical challenges to
the company. Nevertheless, it does involve the exploration of a
new pit that has not been opened yet. Total capital commitment
is expected to reach $780 million, if the company decides to go
ahead with an investment of $340 million in a six million-ton
per year pelletizing plant as part of the mine expansion
project.

CSN is one of the largest integrated flat steel makers in
Brazil. The company produced 1.4 million tons of crude steel in
first-quarter 2004, selling 1.1 million tons of steel products
in the same period. Approximately 32% of CSN's total shipments
through March 2004 were destined for exports.

The stable outlook on CSN's local-currency corporate credit
rating reflects Standard & Poor's expectations that CSN will
manage to preserve reasonably strong liquidity in the future
thanks to its strong cash generation and despite capital
commitments already announced. The outlook also assumes that CSN
will be able to maintain sound operating results through the
steel industry cycle thanks to its favorable cost position and
reasonably fair access to global steel markets. Acquisitions or
further capital commitments that could potentially hurt this
condition or add financial leverage were not assumed by Standard
& Poor's and could potentially lead to a negative revision of
the ratings.

The positive outlook on the foreign currency rating reflects
that of the sovereign currency rating of the Federative Republic
of Brazil.


CSN: Fitch Rates Export Receivables Master Trust Certificates
-------------------------------------------------------------
Fitch Ratings assigned a preliminary rating of 'BBB-' to
Companhia Siderurgica Nacional (CSN) Export Receivables Master
Trust 2004-1 issuance. The rating applies to an issuance of
US$150 million fixed-rate certificates. The series 2004-1
certificates add to the existing program made up of the 2003-1
series of $142 million and 2003-2 series of $125 million, all
representing senior undivided interest in the Trust assets.
Additionally, the ratings for both 2003 series are affirmed at
'BBB-'.

The certificates are backed by the receivables generated by the
future sale of certain steel products, specifically slabs, hot
and cold rolled products, tinplate and galvanized products,
produced by CSN and sold to CSN Export Co., a Cayman Islands
entity. CSN will sell steel products to CSN Export Co. in
exchange for the proceeds, and CSN Export Co. will then sell the
products to buyers outside Brazil. These exports are diversified
and have proven to be a strategic business line to the company.
Total annual export volumes have historically ranged between
20%-40% of total sales. In 2003 exports represented 37% of total
sales.

The assigned 'BBB-' preliminary rating is higher than CSN's
foreign currency rating of 'B+,' as the transaction mitigates
certain sovereign and corporate risks associated with CSN. All
buyers of products being sold through CSN Export Co. will
receive irrevocable notices to make payments into the collection
account, and CSN will covenant that 60% of these buyers will
sign Notice & Consent (N&C) agreements that obligate them to
deposit collections into an offshore collection account
controlled by the Indenture Trustee. At closing, approximately
75% of all customers (including affiliates) and 20% of end users
have signed N&C agreements. Additionally, there will be a
required Debt Service Coverage Ratio (DSCR) of 3.0 times (x) and
2.25x at the three and six month reporting dates, respectively.

The total debt size of these future flow issuances will
represent a relatively small share of the company's overall debt
outstanding. Fitch estimates coverages will be in excess of 4.0x
and will average well over 10x. Fitch used a variety of stress
case scenarios and believes that CSN's current and future steel
export business is adequate to support the future flow
certificates.

CSN is one of Brazil's largest fully integrated steel
manufacturers in Latin America. Over the past decade, CSN has
increased its presence in the local Brazilian market, while
maintaining a significant presence in export markets as well.
The company holds a large market for the products involved in
this securitization. Specifically, CSN holds approximately one
third of the market share for hot and cold rolled products, two
thirds for galvanized products, and dominates the market for
tin-plate products.

Additionally, in the past two years, CSN has modernized its
production facilities and shifted a greater portion of sales
volume to the export markets to take advantage of high prices.

CONTACT:  Greg Kabance +1-312-368-2052, Chicago
          Jennifer Conner +1-312-368-2080, Chicago
          Anita Saha +1-312-368-3179, Chicago
          Jayme Bartling +55-11-287-3177, Sao Paulo

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


CSN: CSN Islands VI Corp. 2004-1 Notes Assigned Prelim Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned Thursday its
preliminary 'BBB-' rating to Brazil's Companhia Siderurgica
Nacional's (CSN) US$150 million series 2004-1 fixed-rate notes
due 2012, to be issued by CSN Islands VI Corp. Steel exports are
the underlying collateral supporting the notes.

The preliminary rating is based on information as of May 27,
2004, and is subject to receipt of program and series
documentation and related legal opinions satisfactory to
Standard & Poor's. Subsequent information may result in the
assignment of a final rating that differs from the preliminary
rating.

Series 2004-1 notes will be the third issuance out of the
program that originally issued two series of notes in 2003.
Standard & Poor's has not assigned a rating to the series 2003-1
and 2003-2 notes. Similar to the previous series, the series
2004-1 notes will be securitized, through a true sale structure,
by all of CSN's steel exports with eligible buyers to CSN Export
Corp. CSN Export subsequently sold the rights to the receivables
to the issuer. Steel products include hot-rolled, cold-rolled,
slabs, tin mill, and galvanized steel products. The receivables
are predominantly U.S. dollar denominated.

CSN is one of the largest integrated flat steel makers in
Brazil. CSN's local currency rating reflects CSN's exposure to
the volatile and cyclical global steel industry, which, despite
its current favorable price environment, has continually
suffered from strong price oscillations in the past; the
company's relative exposure to the volatile (and, until
recently, sluggish) Brazilian economy; and a still-heavy
leverage profile.

These risks are offset by CSN's sound operating and business
profiles, evidenced by its distinguished positioning in the
global steel industry (as a low-cost, highly integrated carbon
flat steel producer), strong export capabilities, and increasing
business diversification with the addition of an iron ore export
operation in the next few years. The company produced 1.4
million tons of crude steel in the first quarter of 2004,
selling 1.1 million tons of steel products in the same period.

Approximately 32% of CSN's total shipments through March 2004
were destined for exports. Standard & Poor's does not view CSN
as a natural exporter.

The preliminary rating reflects several structural and credit
characteristics of the issuance that mitigate originator
bankruptcy risk, sovereign interference risk, and other risks
pertinent to a cross-border steel-export future flow
securitization. This mitigation allows the transaction to
achieve a rating two notches higher than CSN's local currency
rating(BB/Stable) and four notches higher than its foreign
currency rating (B+/Positive). The preliminary rating is also
four notches above the long-term foreign currency sovereign
rating of Brazil (B+/Positive). The preliminary rating addresses
the ability of the issuer to pay timely interest and principal
on the notes. The preliminary rating does not address the
payment of a make-whole premium or additional amounts to
noteholders.

The key factors that Standard & Poor's considered in the
assignment of the preliminary rating include:

-- The expected ability of CSN to operate even during a time of
decreased global demand for steel products and low international
pricing;

-- A strong level of credit enhancement in the form of
overcollateralization of expected future export receivables.
Debt service coverage (DSC) is expected to average 11.1x, with a
minimum coverage of 5.07x. Under Standard & Poor's stress case
scenarios, including one which assumed a 40% reduction in 2003
export levels and the lowest eight-year historical price per
product, DSC averaged 4.88x, with a minimum coverage level of
2.23x. Standard & Poor's cash flow analysis includeds the two
outstanding series of notes. Scheduled debt service payments
were adjusted for the series 2003-2 floating-rate tranche using
Standard & Poor's stochastic interest rate model in recognition
of the risk that interest rates could be significantly higher in
the future. The stress testing also takes into account that the
transaction pays principal according to an amortization
schedule;

-- Offshore payment mechanism. Eligible buyers are required to
make payments into a collection account controlled by The Bank
of New York, the trustee, on behalf of the noteholders. Eligible
buyers must meet eligibility criteria, which includes being no
more than 30 days past due in payment; being rated at least
investment grade; or being at least 80% insured by credit
insurance or fully backed by a direct pay or stand-by LOC from
investment-grade institutions. More than 60% of eligible buyers
have signed notice and consent agreements acknowledging the
payment instructions;

-- Sovereign interference risk mitigation. Standard & Poor's
assessed the risk as mitigated by the relatively long history of
noninterference by the Brazilian authorities in the steel
industry, in general, and in CSN, in particular. The steel
industry is now fully privatized, there are no steel export
quotas, and steel prices and volumes are freely determined.

CSN has been privatized since 1993 and is one of the market
leaders in steel products in Brazil. A renationalization of CSN
is viewed as very unlikely. In addition, the risk of sovereign
interference is also mitigated by the fact that domestic demand
for the product is met. At current levels, it would take
approximately 10 years at a compound annual growth rate of 5%
for domestic demand to equal production capacity;

-- The importance of the steel industry to Brazil and CSN. The
Brazilian steel industry is a net exporter. Crude steel
production totaled 31.1 million tons in 2003, while apparent
domestic consumption was 16 million tons. CSN accounts for about
1% of Brazil's exports; and

-- Other credit risk features. These include DSC triggers (2.25x
quarterly, 3x semiannually), a three-month principal and
interest reserve account to cover any shortfalls in payments,
and provisions for an early amortization of debt service if
certain adverse events occur.

The notes will pay a fixed rate of interest quarterly, and
principal will be paid according to a controlled amortization
schedule after the expiration of the interest-only period. The
issuer can issue additional series of notes if certain
requirements are met, including, among other things, rating
agency affirmation and a DSC ratio test of 4x.

ANALYSTS:  Gary Kochubka, New York (1) 212-438-2514
           Reginaldo Takara, Sao Paulo (55) 11-5501-8932


ENRON: Obtains Enough Votes to Confirm Reorganization Plan
---------------------------------------------------------
Enron Corp. said Thursday that it and its affiliates have filed
with the U.S. Bankruptcy Court the certification of the vote by
creditors for Enron's Joint Chapter 11 Plan.

Enron revealed that of the creditor classes that voted on the
plan, 104 accepted it and seven rejected it. All seven of the
classes that rejected the plan were unsecured creditor classes.

"We are pleased that we have sufficient votes to confirm the
plan," said Stephen F. Cooper, Enron's acting CEO and chief
restructuring officer. "We will continue to work with these few
dissenting classes to address their issues, answer their
questions, and hopefully reach a positive resolution by our June
3 confirmation hearing."

Should no resolution be reached, the dissenting classes will
have an opportunity to present their case to the bankruptcy
court. The bankruptcy judge will make the final approval of the
Company's Chapter 11 bankruptcy plan.

Enron, which filed for bankruptcy in December 2001, said it
expects to file an amended certification of the vote on or
before the beginning of the confirmation hearing.

Enron owns several assets in the Caribbean, Central and South
America.


MRS LOGISTICA: Cuts Debt to R$623.6 Mln in 1Q04
-----------------------------------------------
MRS released the following 1Q04 financial information to the
public:

Production:

MRS transported 21.8 million tons in 1Q04, 4.3% lower and 16%
higher when compared with 4Q03 and 1Q03, respectively. The
reduction in volumes in 1Q04 was caused by the decrease in iron
ore shipments as a consequence of the rainy season and stoppages
caused by accidents throughout the period.

The production loss reached 1.3 million tons in 1T04. The
Company quickly recovered its regular production rhythm,
achieving a new transportation record of 7,812 thousand tons
shipped in April.

Revenues, Costs and EBITDA:

Gross revenue in 1Q04 reached R$334.8 million, 7.5% lower than
4Q03 and 13.7% higher when compared to 1Q03. The decrease in
revenue was caused by the lower production recorded in the
quarter. Cost of services in 1Q04 were 15% higher than in 1Q03,
as a result of the increase in the maintenance of locomotives
and wagons, due to the larger volumes shipped throughout the
period.

Cost of materials in the quarter grew 26.4% compared to 1Q03
also due to the intensification in the maintenance of
locomotives and wagons.
EBITDA in 1Q04 reached R$119 million, 22 % lower than 4Q03 due
to the lower production and the cost increases mentioned above.
In relation to 1Q03, EBITDA was 12% higher.

Operating cash flow totaled R$147.1 million in 1Q04, increasing
by 43.8% the figure achieved in 1Q03.

Net Income:

The Company showed a net income of R$34.9 million in 1Q04, 20%
superior than net income registered in 1Q03. Consequently,
shareholders' equity improved from a negative R$101 million at
1Q03 to R$315 million in 1Q04.

Net Debt:

Net debt at 1Q04 was reduced to R$623.6 million, 5.5% lower than
the R$659.5 million recorded in December 2003 and 33% less than
at 1Q03, as a result of the strong cash generation during the
period. The net debt/EBITDA ratio was reduced to 1.11x from 1Q03
to 1Q04, a remarkable improvement in the Company's capacity to
meet its financial obligations.

Capital Expenditures:

In February, MRS received 12 GE C-36-7, 3,600 HP locomotives,
imported from the U.S., that will join its operational fleet in
May, after mechanical adjustments. The Company is currently
negotiating with suppliers the acquisition of 20 similar
locomotives in order to meet the strong increase in demand
forecasted for the 2nd half of 2004.

In the same way, MRS placed a purchase order for 630 new GDT
gondola cars with Amsted-Maxion, with the purpose of increasing
its iron ore shipping capacity. This R$70 million investment
will be financed through a 5-year period.

Commercial/Operational Highlights:

- Agreement with Companhia Vale do Rio Doce (CVRD), to transport
2.7 million tons of iron ore from CVRD's mines in Belo Horizonte
(MG) to its Patrag terminal in Ouro Branco (MG) for export
through the Port of Tubarao (ES). In addition, MRS will ship 1.7
million tons of iron
ore for export through the Port of Sepetiba (RJ). Agreements
with Companhia de Fomento Mineral (CFM) and Minera‡ao Rio Verde
in order to ship 1.2 million tons of iron ore for export also
through the Port of Sepetiba.

- Joint venture among MRS, Brasil Ferrovias and Coinbra Trading
- a subsidiary of Louis Dreyfuss in order to transport soy beans
and corn from Sao Simao (GO), initially through the Tiete-Parana
waterway to Pederneiras (SP), and from there through MRS trains
until the Port of
Santos for export.

- Initial tests for a new shipping of tubes for Vallourec &
Mannesmann Tubes (V&M Tubes), from its plant in Belo Horizonte
to Macae (RJ), to supply Petrobras. MRS will ship the cargo
until its terminal in Arara in the Port of Rio and from there
the tubes will follow by trucks to Macae. Total volumes should
reach 30,000 tons/year.

- MRS will provide transportation for Cosipa regarding the
supply of steel products from Cosipa's plant in Cubatao to two
shipyards located in the State of Rio de Janeiro. In the 1st
project, MRS will ship the products from Cosipa's plant until
Arara (RJ) and from there the cargo will be shipped through
trucks until EISA's yard in Rio.

In the 2nd project, the products will be shipped until Barra
Mansa (RJ) and from there through trucks until BrasFells' yard
in Angra dos Reis (RJ).

With these new agreements, MRS expects to transport 96 million
tons in 2004.

To see financial statements:
http://bankrupt.com/misc/MRS_Logistica.pdf

CONTACT: Mr. Eduardo Cassinelli, Treasurer
         Mr. Marco Andre Guimaraes, Financial Manager
         Ms. Maria Lucia Silveira, Financial Analyst
         Praia de Botafogo, 228/1201-E 22250-906
         Rio de Janeiro
         Fax: 55-21-2552-2635
         Tel: 55-21-2559-4600
         E-mail: daf@mrs.com.br
         Web Site: www.mrs.com.br



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

TELEFONICA CTC: No Easy Sale for Mobile Division
------------------------------------------------
Spain's Telefonica Moviles (TEM), a unit of Telefonica SA (TEF),
will likely find it hard to carry out its plan to acquire
Chilean telco Telefonica CTC Chile's (NYSE: CTC) mobile
division, Dow Jones indicates.

TEM announced plans earlier to acquire Telefonica CTC's
subsidiary, Telefonica Movil Chile S.A. for US$1 billion, plus
the assumption of US$243 million in debt. Telefonica has a
controlling stake in CTC and, since 2000, TEM has been managing
CTC's mobile phone unit.

However, Empresa Nacional de Telecomunicaciones SA (Entel),
Chile's leading wireless telecommunications service provider,
has asked the anti-monopoly watchdog TDLC to block the deal.
Local newspaper El Diario relates that Entel, owned by Telecom
Italia (TI), argues that it [deal] can't proceed until
regulators authorize Telefonica's acquisition of wireless assets
owned by BellSouth Corp. (BLS). Telefonica agreed to purchase
BellSouth's Latin America assets for US$5.85 billion in March.

Once the BellSouth and CTC assets are under the Telefonica
umbrella, the Spanish-owned company has said it would have a 48%
share of Chile's wireless market, making it the largest wireless
company in the country.

Entel claims that TEM would have more than 50% of the local
wireless communications market, adding to the already-dominant
position of its parent company in the fixed-line market.

Meanwhile, Business News Americas reports that CTC's minority
shareholders are beginning to express apprehensions about the
mobile division's sale.

Local pension fund Cuprum, which has a 4.4% stake in CTC, is
upset that the Company's board decided the sale price without
consulting minority shareholders or conducting independent
valuations, according to Cuprum investments manager Marco
Comparini.

Cuprum and five other pension funds together have a 27% stake in
CTC, but their investment is expected to lose about 25% of its
value if the mobile division is sold.

CTC shareholders are scheduled to vote before mid-July on the
board's sale proposal.

CONTACT: TELEFONICA CTC CHILE
         Sofia Chellew
         E-mail: schelle@ctc.cl
         Tel.:56-2-691 3867

         Veronica Gaete
         E-mail: vgaete@ctc.cl
         Tel.:56-2-691 3867

         M.Jose Rodriguez
         E-mail: mjrodri@ctc.cl
         Tel.:56-2-691 3867

         Florencia Acosta
         E-mail: macosta@ctc.cl
         Tel.:56-2-691 3867



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

KAISER ALUMINUM: Debtors Seeks to Delay Alpart Sale
---------------------------------------------------
In the latest legal development on the bankruptcy case of Kaiser
Aluminum Corp., Kaiser's debtors seek to reopen the auction
process for the Alpart alumina plant in Jamaica.

The emergency motion, which was filed Thursday in U.S.
bankruptcy court for the District of Delaware, asks the court to
set aside its April 26 sale order for Alpart and to reopen the
auction at a June 1 hearing scheduled on the case or by June 4
at the latest. The motion said the creditors believe the highest
price for the assets has not yet been achieved.

Houston-based Kaiser has been selling off some assets including
the 1.5 million tonne per year Alpart alumina mine and refinery
as part of its plan to emerge from bankruptcy.

On April 26, the bankruptcy court authorized Kaiser's creditors
to enter an agreement to sell their interests in Alpart to Rusal
through RUAL Trade Limited.

On May 25, Norway's Norsk Hydro Aluminium announced that it had
exercised its right of first refusal to buy 65% of Alpart from
Kaiser and agreed to sell it to Swiss-based metals trader
Glencore. Later that same day, Rusal sweetened its bid for
Alpart by US$10 million to US$316.2 million. Much later that
day, Norsk Hydro said it would pay US$295 million plus an
additional US$11.2 million after contract adjustments.

The Norwegian energy and metals group owns 35% of Alpart, and
said it was entitled by a partnership with co-owner Kaiser to
intervene in any change of ownership by matching an outsider's
bid.

Rusal then filed a motion with a U.S. court to halt the sale to
Norsk Hydro pending a challenge of the original right of first
refusal.

The debtors motion filed Thursday asks the court to set aside
the April 26 sale order to RUAL and to open the auction process
again for Alpart assets.



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

AEROMEXICO: Signs Code-Sharing Deal With Spanish Airline
--------------------------------------------------------
Spanish airline Air Europa and Mexican airline Aeromexico signed
a code-sharing agreement, reports EFE.

Under the agreement, which is scheduled to take effect June 15,
flights operated by Air Europa on the Madrid to Cancun route
will have the AM code of Aeromexico.

Earlier, Delta Airlines discarded intentions to acquire the
assets of the Aeromexico, saying it will just continue the
partnership with Aeromexico, currently being managed by IPAB,
into Star Alliance.

Aeromexico serves over 40 cities in Mexico and 17 gateway cities
in the United States and six countries in Europe and South
America. Founded in 1988, AeroMexico has become the leading
carrier in the region by maintaining the highest service levels,
which have earned the airline numerous top rankings in the
industry. The airline's corporate headquarters are in Mexico
City and its U.S. operations are based in Houston.


GRUPO MEXICO: Rail Companies Agree to Restructure Corporate Debt
----------------------------------------------------------------
Mexican copper miner Grupo Mexico SA informed Mexico City's
bourse that its rail divisions - Ferrocarril Mexicano (Ferromex)
and GFM (Grupo Ferroviario Mexicano)- have together agreed to
restructure MXN2.5 billion (US$219 million) in corporate debt.

Citing a statement to the bourse, Business News Americas
reported that the agreement, struck with Mexican bank Banco
Inbursa, extends payment deadlines by two and 26 months while
providing "an important spread" in interest rates.

Under the agreement, Ferromex will pay MXN349-million
instalments in December 2007, June 2008, December 2008, June
2009 and December 2009 for a total of MXN1.75 billion, while GFM
will pay MXN151-million installments on the same dates for a
total of MXN756 million.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


HYLSAMEX: Mulls Various Options to Facilitate Debt Refinancing
--------------------------------------------------------------
Mexican steelmaker Hylsamex is mulling a bond issue, capital
increases or sale of a division, reports Business News Americas.
All these plans are part of the Company's efforts to refinance
its US$962 million debt.

Carlos Hermosillo, an analyst with Vector Casa de Bolsa, sees
bond issue as the most viable option considering that the
Company's strong financial performance this year will reduce the
cost of such a move.

Hylsamex reported US$63 million in net profits first quarter
this year, reversing losses of US$35 million year-on-year, while
sales volumes grew 9% during the period to 788,000t, helping
revenues soar 30% to US$461 million.

Last week, Hylsamex announced that Hylsa, its main unit, has
extended a line of revolving credit for US$40 million by a year.
The Company said that it will use the credit line for working
capital, and that it would strengthen Hylsa's liquidity.

Hylsamex is 51%-owned by Alfa.

CONTACT:  Hylsamex S.A. de C.V.
          101 Ave Munich Cuauhtemoc
          66452 San Nicolas de los Garza
          Nuevo Leon
          Mexico
          Phone: +52 81 8865 2828
          Fax: +52 81 8865 1210
          Home Page: http://www.hylsamex.com.mx
          Contact:
          Engr. Dionisio Garza Medina, Chairman
          Alejandro Elizondo Barragan, Chief Executive Engr


SATMEX: Managers Scramble To Strike Agreement With Creditors
------------------------------------------------------------
Satmex managers are hoping to get creditors' approval before
mid-June over its debt offer for more than US$500 million, which
does not include government-contracted liabilities totaling
US$188 million.

The Mexican satellites company faces a June expiry of a
principal payment of a US$205-million syndicated debt, and the
Company's managers are aiming to strike an agreement with
creditors soon, as the application of a preventive bankruptcy
doesn't seem to be a good prospect.

Negotiation with creditors is facing rough sailing with the
withdrawal of Eximbank (US) of its guarantees that would have
allowed Satmex to obtain a loan relieving it of some of the
pressure. The loan, which would have given the Company a window
to launch its Satmex 6 sattelite, would have allowed Satmex to
pay off its commitments at a floating rate for US$205 million.



=====================
P U E R T O   R I C O
=====================

CARIBBEAN RESTAURANTS: Proposed Bank Loan Gets B2 Rating
--------------------------------------------------------
Moody's Investors Service took various rating actions on
Caribbean Restaurants, LLC ("Caribbean"), which operates 165
Burger King restaurants in Puerto Rico.

Moody's said it assigned a B2 rating to Caribbean's proposed
$210 million secured bank loan, raised the Company's Issuer
Rating to B3 from Caa1 and affirmed the Senior Implied rating at
B2.

Limiting the ratings are the Company's highly leveraged
financial condition, the weak asset coverage for nominally
secured debt, and the challenges in maintaining the positive
performance differential between Burger King stores in Puerto
Rico versus the mainland United States.

Supporting the ratings are Caribbean's leading average unit
volume and restaurant margin within the Burger King system, the
company's established position as the leading QSR restaurant
operator in Puerto Rico, and the extended history of stability
in operating strategy.

The rating outlook is stable.



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

CDC: T&T Labor Minister Moves to Put an End to Dispute
------------------------------------------------------
Trinidad and Tobago's Labor Minister Anthony Roberts met with
officials of the National Union of Government and Federated
Workers (NUGFW) Thursday to discuss the dispute between beer and
bottle manufacturer Caribbean Development Co. (CDC) and more
than 800 striking workers.

The Trinidad Guardian reports that during a break in that
meeting, Roberts contacted CDC officials requesting that the
Company join the talks. However, Roberts said CDC indicated that
it was too short notice.

"We would want them to start talking so we could get an amicable
solution," Roberts said.

Violence brought about by the strike escalated Thursday morning
when striking workers broke the rear windscreen of a vehicle
seeking entry to the compound. A number of protesting workers
threw bottles and blocked the entrance to the compound.

That particular incident followed acts of violence earlier last
week including one which left a female worker nursing injuries
to her face caused by a stone hurled though the window of a car
that was transporting her into CDC compound.




                            ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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