TCRLA_Public/040610.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, June 10, 2004, Vol. 5, Issue 114

                            Headlines

A R G E N T I N A

AUTOPISTAS DEL SOL: Moody's Maintains `D' Rating on $380M Bonds
CASSINI HNOS: Enters Bankruptcy on Court Orders
COVIASA S.A.: Defaults on Debts, Will Undergo Bankruptcy
EBEN EZER: Court Favors Creditor's Liquidation Plea
EDENOR: Installing Prepaid Power Meters

FABRIL ONCE: Liquidating Assets to Pay Debts
FIDEICOMISO FINANCIERO: Moody's Rates Financial Trusts
FINCA EL MOLINO: Proceeds With Liquidation on Court Orders
FUNDACION PARA EL DESARROLLO: Reports Submission Set
HOSANTEL S.A.: Liquidates Assets to Pay Debts

INDUSTRIAS METALURGICAS: Court Declares Company Bankrupt
INVENTIA S.A.: Court Declares Company Bankrupt
LINEAS LEON: Judge Approves Reorganization Plea
METALURGICA VIALE: Court Issues Bankruptcy Ruling
PAPELERA WILDE: Prepares for Reorganization

PECRUMO S.A.: Court Grants Reorganization Plea
PETROBRAS ENERGIA: Awaits Offshore Oil Sites' Study Approval
RADIO RIVADAVIA: Bankruptcy Process Begins By Court Order
TELECOM ARGENTINA: Debt Deal Gains Favorable Response

* Disgruntled Argentine Bondholders Skip Scheduled Meeting


B R A Z I L

AHOLD: CBD Halts Acquisition Bid
BRASKEM: Mulling Issuance of BRL300 Million in Debentures
TELEMAR: Joins Hispasat to Create August Satellite Launch
TERPHANE HOLDING: S&P Assigns `CCC+' Corporate Credit Rating


C H I L E

TELEFONICA CTC: Shareholders to Decide on Mobile Sale This Week


C O L O M B I A

TELESANTAMARTA: Colombia Orders Liquidation


J A M A I C A

KAISER ALUMINUM: RUSAL Balks At Plans to Take 65% Stake


M E X I C O

COPAMEX: Moody's Withdraws Ratings After Full Repayment of Notes

* Fitch Ratings Issues Comment on Mexico


P E R U

* S&P Ups Peru's Long-term Foreign Currency Credit Rating


U R U G U A Y

PARMALAT URUGUAY: Conaprole Submits Two Bids


V E N E Z U E L A

PDVSA: Sends Test-Shipment of Ethanol-Ready Fuel
PDVSA: Drills New Wells to Up Oil Output

     -  -  -  -  -  -  -  -

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

AUTOPISTAS DEL SOL: Moody's Maintains `D' Rating on $380M Bonds
---------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D" rating on corporate bonds issued by Argentine company
Autopistas del Sol S.A. (Ausol), says the Comision Nacional de
Valores (CNV).

The action, which was taken based on the Company's finances as
of March 31, 2004, affects these bonds that were issued under
`Simple Issue:'

- US$210 million worth of "Obligacion Negociable - Serie B"
maturing on August 1, 2009

- US$170 million worth of "Obligacion Negociable - Serie A"
maturing on August 1, 2004.

A `D' rating is assigned to financial commitments that are in
payment default.

Autopistas del Sol is controlled by a private consortium headed
by Sideco Americana S.A. (SDA.YY).


CASSINI HNOS: Enters Bankruptcy on Court Orders
-----------------------------------------------
Cassini Hnos S.R.L. is set to wind-up its operations after
Buenos Aires Court No. 24, with the assistance of Clerk No. 48,
ordered the Company's liquidation.

The bankruptcy order effectively transfers control of the
Company's assets to the court-appointed trustee who will
supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Eduardo Miguel
Echaide as trustee. He will be verifying creditors' proofs of
claim until the end of the verification phase on June 18, 2004.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on August 23, 2004 followed by the general report, which is due
on October 10, 2004.

CONTACT: Mr. Eduardo Miguel Echaide, Trustee
         Sanchez de Loria 155
         Buenos Aires

       
COVIASA S.A.: Defaults on Debts, Will Undergo Bankruptcy
--------------------------------------------------------
Court No. 18 of Buenos Aires declared Coviasa S.A. bankrupt,
says La Nacion.

The ruling comes in approval of the bankruptcy petition filed by
the Company's creditor, Mr. Roberto Stanco, because of a
US$16,400 debt default.

Clerk No. 36, Dr. Vivono, assists the court on the case, which
will conclude with the liquidation of the Company's assets.

The court's trustee, Mr. Lea Aljanati, will examine and
authenticate creditors' claims until July 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: Coviasa S.A.
         Avenida Castanares 1591
         Buenos Aires

         Ms. Lea Aljanati, Trustee
         H. Yrigoyen 1576
         Buenos Aires    


EBEN EZER: Court Favors Creditor's Liquidation Plea
---------------------------------------------------
Judge Villar of Buenos Aires Court No. 13 declared Eben Ezer
S.A. bankrupt, relates local daily La Nacion.

The court approved the bankruptcy petition filed by La Caja
Aseguradora de Riesgo de Trabajo ART SA, to whom the Company
failed to pay debts amounting to US$2,660.45.

The delivery company will undergo the bankruptcy process with
Mr. Oscar Epstein as its trustee. Creditors are required to
present their proofs of claim to the trustee for verification
before August 9, 2004.

Dr. Guerri, Clerk No. 25, assists the court on this case.

CONTACT: Eben Ezer S.A.
         Cochabamba 3140
         Buenos Aires

         Mr. Oscar Epstein, Trustee
         Avenida Corrientes 2565
         Buenos Aires  
         

EDENOR: Installing Prepaid Power Meters
---------------------------------------
In an effort to curb power theft and late bills payment,
Argentine power distributor Edenor began installing prepaid
power meters for residential clients in two districts of its
northern Buenos Aires concession area

Citing local newspapers, Business News Americas reports that
customers can buy prepay cards for the Cashpower meters at
vending machines. One peso (about US$0.34) buys 10.5kWh.

France's EDF controls Edenor.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mai: to ofitel@edenor.com.ar
          Home Page: http://www.edenor.com.ar


FABRIL ONCE: Liquidating Assets to Pay Debts
--------------------------------------------
Buenos Aires-based textile company Fabril Once S.A. will begin
liquidating its assets following the pronouncement of the city's
Court No. 3 that the Company is bankrupt, Infobae reports.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Mr. Ernesto Hilman. The trustee will
verify creditors' proofs of claim until June 25, 2004, after
which, the validated claims will be presented in court as
individual reports on August 31, 2004.

Mr. Hilman will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on October 13, 2004.

The bankruptcy process will end with the disposal of company
assets in favor of its creditors.

CONTACT: Fabril Once S.A.
         Lavalle 2435
         Buenos Aires

         Mr. Ernesto Hilman, Trustee
         Viamonte 1446
         Buenos Aires


FIDEICOMISO FINANCIERO: Moody's Rates Financial Trusts
------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a `D'
rating to Fideicomiso Financiero Fidens II financial trusts, the
CNV reveals on its Web site.

Affected securities are:

- US$1,335,333 worth of `Participation Certificates' described
as "Certificado de Participacion - Serie II - Clase B." These
financial trusts will mature on Jan. 31, 2014; and

- US$2,057,523 worth of `Participation Certificates' described
as "Certificacado de Participacion - Serie II - Clase A. " These
financial trusts will mature on July 31, 2014.

At the same time, Moody's assigned a `C' rating to Fideicomiso
Financiero Fidens II financial trusts worth US$10,973,400. These
financial trusts were classified as `Debt Security' and
described as "Titulo de Deuda - Serie II." These securities will
mature on July 31, 2014.

Meanwhile, Moody's assigned a `D' rating to Fideicomiso
Financiero Fidens I financial trusts. Affected bonds include:

- US$1,742,958 worth of `Participation Certificates' described
as "Certificado de Participacion - Serie I - Clase B." These
financial trusts will mature on Feb. 28, 2014; and

- US$2,136,559 worth of `Participation Certificates' described
as "Certificado de Participacion - Serie I - Clase A." These
financial trusts will mature on Feb. 28, 2014.

Furthermore, Moody's assigned a `C' rating to Fideicomiso
Financiero Fidens I financial trusts worth US$11,394,900. These
financial trusts were classified as `Debt Security' and
described as "Titulo de Deuda - Serie I." These securities will
mature on December 31, 2013.


FINCA EL MOLINO: Proceeds With Liquidation on Court Orders
----------------------------------------------------------
Finca el Molino S.A. of Buenos Aires will begin liquidating its
assets after Court No. 2 declared the Company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee, Mr. Juan Ignacio
Estevez.

The trustee will review claims forwarded by the Company's
creditors until July 14, 2004. After claims verification, Mr.
Estevez will submit the individual reports for court approval on
September 09, 2004. The presentation of the general report will
follow on October 22, 2004.

Clerk No. 3 assists the court on this case.

CONTACT: Mr. Juan Ignacio Estevez, Trustee
         Uruguay 750
         Buenos Aires


FUNDACION PARA EL DESARROLLO: Reports Submission Set
---------------------------------------------------
The trustee supervising the liquidation of Fundacion Para el
Desarrollo y la Transformacion Productiva y Social Argentina
(Fundesa), will submit on June 10,2004 the case's validated
individual claims for court approval. These reports explain the
basis for the accepted and rejected claims. A general report
will also be presented in court on August 25, 2004

Infobae reports that Cordoba Court No. 6 has jurisdiction over
this bankruptcy case.

CONTACT: Fundacion Para el Desarrollo y la Transformacion
Productiva y    Social Argentina (Fundesa)
         Alvear 542
         Cordoba


HOSANTEL S.A.: Liquidates Assets to Pay Debts
---------------------------------------------
Hosantel S.A. will begin liquidating its assets following the  
city Court No. 25's ruling that the Company is bankrupt, Infobae
reports.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Mr. Carlos F. Pisa Barros Garcia.
The trustee will verify creditors' proofs of claim until August
6, 2004. The validated claims will be presented in court as
individual reports on September 20, 2004.

Mr. Garcia will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on November 11, 2004.

CONTACT: Mr. Carlos F Pisa Barros Garcia, Trustee
         Avda Corrientes 3150
         Buenos Aires

  
INDUSTRIAS METALURGICAS: Court Declares Company Bankrupt
--------------------------------------------------------
Industrias Metalurgicas Guido S.A. entered bankruptcy on orders
from Court No. 24, reveals Infobae.

Working with Clerk No. 47, the court assigned Ms. Haydee M.
Kravetz as trustee. She is to verify creditors' claims until
July 16, 2004.

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

The individual reports, which are due on August 31, 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 30, 2004. This report contains a summary of
the results in the individual reports.

CONTACT: Ms. Haydee M. Kravetz, Trustee
         Avda Leandro N Alem 651
         Buenos Aires


INVENTIA S.A.: Court Declares Company Bankrupt
----------------------------------------------
Judge Ferrario of Buenos Aires Court No. 6 declared local
company Inventia S.A. Bankrupt, relates local daily La Nacion.

Court records show that Iggam S.A., which has claims totaling
US$6,337.37 against the clothing company, filed the bankruptcy
motion.  

Inventia will undergo the bankruptcy process with Ms. Sandra
Dallo as its trustee. Creditors are required to present their
proofs of claim to the trustee for verification before August
27, 2004.

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

Dr. Mendez Sarmiento, Clerk No. 12, assists the court on the
case.

CONTACT: Inventia S.A.
         Florida 833
         Buenos Aires

         Ms. Sandra Dallo, Trustee
         Tucuman 1711
         Buenos Aires


LINEAS LEON: Judge Approves Reorganization Plea
-----------------------------------------------
Lineas Leon S.A., an electronic communications equipment
supplier, will proceed with reorganization after Judge Di Noto
of Buenos Aires Court No.15 endorsed the Company's insolvency
petition.

Argentine daily La Nacion reports that the Company has assets
valued at US$165,299.36 and liabilities totaling US$204,816.62

The court assigned Ms. Eva Gorsd to supervise the liquidation
process as trustee. She will validate creditors' proofs of
claims until August 3, 2004.

CONTACT: Lineas Leon S.A.
         Avenida Corrientes 2565
         Buenos Aires

         Ms. Eva Gorsd, Trustee
         Paraguay 1225
         Buenos Aires

  
METALURGICA VIALE: Court Issues Bankruptcy Ruling
-------------------------------------------------
Metalurgica Viale S.R.L. will start liquidation proceedings
after Beunos Aires Court No. 5 declared it bankrupt, says
Argentine news source Infobae.

With assistance from Clerk No. 9, the court named Mr. Juan
Carlos Pitrelli as trustee. He will verify creditors' claims
until August 5, 2004.

Following claims verification, the trustee will submit the
individual reports, which were prepared based on the
verification results, to the court on September 17, 2004. The
general report is due for submission on November 1, 2004.

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

CONTACT:  Mr. Juan Carlos Pitrelli, Trustee
          Avda de Mayo 1343
          Buenos Aires



PAPELERA WILDE: Prepares for Reorganization
-------------------------------------------
Buenos Aires Judge No. 13, with assistance from Clerk No. 26,
issued a resolution opening the reorganization of Papelera Wilde
S.R.L., reports Infobae.

This pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to prevent the
liquidation of the company.

The reorganization also allows the Company to retain control of
its assets subject to certain conditions imposed by Argentine
law and the oversight of the court appointed trustee.

Mr. Norberto Isidro Sapir will serve as trustee during the
course of the reorganization. He will be validating creditors'
proofs of claims until August 10, 2004.

The results of the verification will be presented in court as
individual reports on September 22, 2004. The trustee is also
obligated to give the court a general report of the case on
November 11, 2004. This report summarizes events relevant to the
reorganization and provides an audit of the company's accounting
and business records.

Papelera Wilde will present the completed settlement proposal to
its creditors during the informative assembly scheduled on March
29 next year.

CONTACT: Mr. Norberto Isidro Sapir, Trustee
         Jose E Uriburu 1010
         Capital Federal


PECRUMO S.A.: Court Grants Reorganization Plea
----------------------------------------------
Pecrumo S.A., a company operating in Buenos Aires, begins
reorganization proceedings after the city's Court No. 1, with
assistance from Clerk No. 2, granted its petition for "concurso
preventivo".

During the reorganization, the Company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.  

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Otto Reinaldo
Munch, the court-appointed trustee.

Creditors with claims against the Company must present proofs of
the Company's indebtedness to Mr. Munch before August 5, 2004.

The informative assembly, the final stage of the reorganization,
is scheduled on April 25, 2005.

CONTACT: Mr. Otto Reinaldo Munch, Trustee
         Maipu 509
         Buenos Aires


PETROBRAS ENERGIA: Awaits Offshore Oil Sites' Study Approval
------------------------------------------------------------
As part of its plans to develop offshore oil exploration
projects, Argentine oil and gas company Petrobras Energia sought
permission from the Energy Secretariat to conduct seismic and
geological studies on potential offshore oil sites, Dow Jones
Newswires reports, citing Alberto Da Fonseca Guimaraes,
Petrobras Energia's general executive director and country
manager.

"This deals with the most expensive and risky initiatives, but
to develop new frontiers in the ocean will be without a doubt
one of the biggest challenges for Argentina," Da Fonseca
Guimaraes said.

The two blocks under consideration are located 150 kilometers
off the Argentine coast between the Buenos Aires province cities
of Mar del Plata and Bahia Blanca. Each block measures 10,000
square kilometers in area and 3,000 meters in depth.

The investment required for the preliminary studies has not been
disclosed but according to Petrobras Energia's press office, the
investment is separate from the six-year, US$53.6 billion plan
that Petrobras Energia's parent, state-owned Brazilian oil group
Petroleo Brasileiro (Petrobras), unveiled in May.

CONTACTS:  Daniel E. Rennis
           E-mail: drennis@petrobrasenergia.com
           Alberto Jankowski
           E-mail: ajankows@petrobrasenergia.com
           Tel: (5411) 4344-6655


RADIO RIVADAVIA: Bankruptcy Process Begins By Court Order
---------------------------------------------------------
Buenos Aires Court No. 24 declared Radio Rivadavia S.A.
bankrupt, reports Infobae. The declaration signals the Company
to proceed with the liquidation process, which will close with
the liquidation of its assets.

The court, assisted by Clerk No. 48, appointed Ms. Graciela
Elena Lissarrague, as trustee who will authenticate proofs of
claim until August 3, 2004. Next, the trustee will prepare the
individual reports based on the results of the authentication
and submit these reports to court on September 15, 2004. After
these results are processed in court, the trustee will then
present the general report on October 28, 2004.

CONTACT: Ms. Graciela Elena Lissarrague, Trustee
         Presidente Peron 1509
         Buenos Aires


TELECOM ARGENTINA: Debt Deal Gains Favorable Response
-----------------------------------------------------
Telecom Argentina's sweetened debt restructuring offer gained
unanimous approval from the creditor's committee representing
about 16.55% of the telephone carriers massive US$3.2 billion
debt, reports Dow Jones.

Mr. David Martinez, managing director of London-based fund
Fintech Advisory Ltd., stated; "We believe this proposal fully
addresses the primary objectives of creditors." He adds that
that revisions made on the settlement offer will contribute to
greater creditor backing.

Along with the ad hoc creditor's committee endorsement, the plan
has also generated support from Mr. Nicola Stock, head of Task
Force Argentina, who expressed his approval of the debt offer
last week. TFA, a major Italian bondholder group, claims 25% of
Telecom Argentina's liability.

However, the extra-judicial debt restructuring must first be
ratified by two-thirds of the company's creditors before it can
be submitted for legal clearance to make the repayment terms
binding on all claimants. The 30-day voting period for the
settlement proposal is expected to begin this month after
securities regulators in Italy and Argentina authorize the plan.   

Analysts say that the revised settlement proposal, released in
early May, promises a 94% to 95% recovery rate from the original
liability. Options available under the new plan include a step-
up 2014 bond; a step-up 2011 bond worth 94.5% of the original
holding; and a cash payment between 70% and 80% determined
through a competitive Dutch auction.

CONTACT:  TELECOM ARGENTINA S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          E-mail: inversores@intersrv.telecom.com.ar


* Disgruntled Argentine Bondholders Skip Scheduled Meeting
----------------------------------------------------------
None of Argentina's major bondholder groups showed up at the
meeting scheduled in Buenos Aires Tuesday, indicating the
government's failure to revive negotiations with those creditors
holding about US$100 billion of defaulted debt, Bloomberg News
suggests.

Bondholders said they did not believe the government was acting
in good faith, as it promised in a loan accord with the
International Monetary Fund, because it failed to hold
discussions with creditors before announcing its offer.

"There is no point in meeting to listen to their done deal,"
said Horacio Vazquez, treasurer of the Argentina Bondholders'
Association, which represents 7,000 individual investors who
hold Argentine bonds.

"The government hasn't answered our queries for clarification of
a proposal that was in itself, confusing," Vazquez's group said
in a statement.

The Global Committee of Argentina Bondholders, the largest
international creditor group with about one third of the bonds,
also refused to meet with the government this week, saying it
agreed with the domestic investors' complaint that Argentina is
not negotiating in good faith.

"We share their frustration over this process," Hans Humes, co-
chairman of the Global Committee of Argentina, said.



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

AHOLD: CBD Halts Acquisition Bid
--------------------------------   
The president of Brazil's largest grocery chain, Companhia
Brasileira de Distribuicao S.A. (CBD), announced that the
company has withdrawn its plans to take over the 32-store G.
Barbosa Supermarket chain from ailing Dutch retailer Ahold
Holding N.V.      

CBD's president, Mr., Abilio Diniz, was quoted as saying that,
"We're out. The price (Ahold) wants is very high. They think G.
Barbosa is worth a fortune."

Dow Jones Business News states that G. Barbosa formed the bulk
of Ahold's properties in Brazil along with the 120-store
Bompreco outlets before the latter was sold for US$300 million
in March to Wal-Mart Stores Inc. With the retail giant now
firmly entrenched in Northeastern Brazil, Ahold could find more
trouble finding takers for G. Barbosa.  


BRASKEM: Mulling Issuance of BRL300 Million in Debentures
---------------------------------------------------------
BRASKEM S.A., a leader in the thermoplastic resins segment in
Latin America and among the five largest Brazilian privately
owned industrial companies, disclosed on May 28, 2004 that its
Board of Directors met on May 27, 2004 and approved the
convening of an Extraordinary Shareholders Meeting to examine
and consider a proposal for the issuance of non-convertible,
partially secured debentures maturing and payable in a lump sum
in five years and bearing interest at a rate of 117% of the CDI
rate, which interest will be paid semi-annually following the
issue date.

Mr. Paul Altit, Braskem's Vice President of Finance and Investor
Relations, stated:

"This transaction continues the implementation of our strategy
to provide more financial and operational flexibility to
Braskem, contributing to the repayment of short-term debt,
increasing our liquidity and reducing our exchange rate risk and
overall financing cost. It is important to note that the 5-year
maturity of this transaction strongly contributes to extending
Braskem's debt maturity profile and to matching its debt
maturities to its net cash generation."

Following the approval by the Extraordinary Shareholders Meeting
and the execution of the relevant documentation, the issue of
debentures will be submitted to the Brazilian Securities
Commission for review.

The debentures have not been and will not be registered under
the United States Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws, and the
debentures may not be offered or sold in the United States or to
a U.S. person except pursuant to an effective registration
statement or pursuant to transactions exempt from, or not
subject to, registration under the Securities Act.

Braskem, a world-class Brazilian petrochemical company, is a
leader in the thermoplastic resins segment in Latin America, and
is among the five largest Brazilian privately owned industrial
companies. The Company operates 13 manufacturing plants located
throughout Brazil, and it has a yearly production capacity of
5.0 million of tons of petrochemical products.

CONTACTS:  Vasco Barcellos                 
           Investor Relations - Manager     
           Phone: (55 11) 3443 9178
           vasco.barcellos@braskem.com.br

           Web Site: www.braskem.com.br


TELEMAR: Joins Hispasat to Create August Satellite Launch
---------------------------------------------------------
Hispamar, a joint venture between Brazil's Tele Norte Leste
Participacoes SA (Telemar) and Spain's Hispasat, is close to
launching a new satellite known as Amazonas.

Citing Hispamar President, Luiz Francisco Perrone, Dow Jones
Newswires reports that the Amazonas, which cost about US$350
million, would become the first to provide total coverage for
the Latin American region.

The new satellite can handle nearly 250,000 phone calls at the
same time, and will provide services such as digital TV,
wireless and Internet.

Amazonas will be launched in Kazakstan and provide services in
August when 20% of its capacity is employed by Telemar,
currently dependant on Star One, the satellite owned by long-
distance Brazilian carrier Embratel Participacoes SA, and
provide long-distance services.

Mr. Perrone didn't say by how much Telemar would reduce its
costs by moving from Star One to Amazonas, and declined to
provide forecasts on revenues.

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

          Kevin Kirkeby
          (kkirkeby@hfgcg.com)

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

Website: www.telemar.com.br/ir


TERPHANE HOLDING: S&P Assigns `CCC+' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' corporate
credit rating to Bloomfield, N.Y.-based Terphane Holding Corp.
At the same time, Standard & Poor's assigned its 'CCC+' rating
to the company's $53 million senior secured notes due June 2009.

The notes, which are secured by a pledge of the stock of
subsidiaries and certain property, plant and equipment located
in Brazil and the U.S., are rated the same as the corporate
credit rating. Standard & Poor's ratings are based on the
understanding that Terphane will completely repay an export
credit facility secured by receivables with a portion of the
proceeds of the notes, and that a guarantee will be issued by
Terphane Ltda., the company's main operating subsidiary in
Brazil, in favor of the noteholders.

The outlook is stable. Pro forma for the transaction, total debt
will be about $51 million, but will increase to approximately
$73 million once the company draws on its new equipment leasing
facility. The proceeds from the proposed notes transaction will
be used primarily to fund a $30 million dividend to shareholders
and repay existing subsidiary debt.

"The ratings on Terphane reflect an extremely limited scope of
operations as the sole domestic manufacturer in the niche South
American thin polyester film industry, significant reliance on
one manufacturing facility, and a very restricted liquidity
position, characterized solely by a cash balance of less than $7
million following the notes offering," said Standard & Poor's
credit analyst Franco DiMartino. However, the company's narrow
business focus is partially offset by favorable industry growth
prospects; regional import tariffs that protect the company's
primary market; a low cost, integrated manufacturing structure;
well-diversified customer relationships; and stable operating
margins.

With annual revenues of slightly more than $60 million, Terphane
is the only domestic manufacturer in the South American market
for thin polyester film. The company augments this position with
sales to the North American market, which accounts for
approximately 30% of total revenues. The company's products are
primarily used in flexible packaging applications, including
packaging for pasta, processed meats and cheeses, juices,
mayonnaise, and lidding for yogurt trays, butter, cream, and
other products. Industrial applications, about 10% of sales,
include wrapping for electrical cable, thermal ribbons for
printers and faxes, and insulation.

The primary end markets for Terphane's thin polyester film are
expected to grow between 7% and 11% annually over the next five
years based on strong demand from the flexible packaging
industry. Flexible packaging applications continue to replace
rigid packaging, such as paperboard boxes, glass jars, and metal
cans, due to lower cost and weight, and enhanced performance
characteristics for some applications. In addition, the superior
performance of plastic films should support its growth at the
expense of other flexible packaging alternatives, notably paper
and aluminum foil.

The company produces about 80% of its total manufacturing output
at its plant in Cabo, Brazil. This heavy reliance on the Cabo
plant, which will only intensify once a planned expansion is
completed, poses some credit risk. However, the strategic
location of this plant is the source of Terphane's leading
position in the South American region, with approximately 70%
share of the total market.



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

TELEFONICA CTC: Shareholders to Decide on Mobile Sale This Week
---------------------------------------------------------------
The shareholders of Telefonica CTC Chile are expected to vote on
the sale of the Company's mobile division Telefonica Movil in an
extraordinary general shareholders' meeting to be held this
week, says Business News Americas.

In May, Spain's Telefonica SA, through Telefonica Moviles S.A.,
announced plans to acquire Telefonica Movil for US$1 billion.
The CTC board has already recommended that shareholders accept
the offer but some minority shareholders believe Telefonica has
used its 43% share in CTC to ensure a price, which is to its
advantage.

Last week, local investment firm Moneda Asset Management joined
four minority shareholders - Cuprum, Consorcio, Celfin and The
Chile Fund - who have vowed to vote against the sale.

The four shareholders represent just over 5% of CTC and will
require considerable support from other minority shareholders to
prevent a vote in favor of the sale from reaching the 66.7%
minimum.

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



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

TELESANTAMARTA: Colombia Orders Liquidation
-------------------------------------------
Colombian telco Telesantamarta, which was intervened by the
country's public services regulator Superservicios in 2002, when
it reported a loss of COP789 million, has been ordered to
liquidate, reports Business News Americas.

The government, which ordered the Santa Marta-based telco's
liquidation, also ruled that Telesantamarta's service management
be transferred to state-run telco Colombia Telecomunicaciones
(Telecom).

Telecom will designate a workforce of 60 direct and indirect
employees for its Santa Marta division. The government will set
aside COP3.2 billion (US$1.18 million) as severance pay for
Telesantamarta's 107 former employees.

Furthermore, Telecom may take on former Telesantamarta employees
if they organize themselves into cooperatives and bid for
contracts to run aspects of the company on an outsourcing basis.



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

KAISER ALUMINUM: RUSAL Balks At Plans to Take 65% Stake
-------------------------------------------------------
Russia's RUSAL, one of the world's leading aluminium producers,
cancelled its plans to buy Houston-based Kaiser Aluminum's 65%
stake in Jamaica's Alpart alumina refinery, reports Business
News Americas.

RUSAL, which offered to pay US$316 million for the shares at
end-May, will not challenge a ruling issued last week by the
U.S. Bankruptcy Court for the District of Delaware that Kaiser
should proceed with the sale of its interests in Alpart to
Norway's Hydro Aluminium.

Hydro announced May 25 it had exercised its right of first
refusal to buy 65% of the 500,000t/y Alpart alumina operation
from Kaiser and agreed to sell it to Swiss-based metals trader
Glencore.

Hydro will retain its own 35% interest in Alpart.

The sale of Alpart is part of Kaiser's corporate strategy to
emerge from Chapter 11 bankruptcy.



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

COPAMEX: Moody's Withdraws Ratings After Full Repayment of Notes
----------------------------------------------------------------
Moody's Investors Service said it has withdrawn its ratings for
Copamex S.A. de C.V., one of Mexico's leading producers of
paper-based consumer products and value-added industrial paper
products, including packaging and printing and writing products.

The action follows the maturity and full repayment of the
company's 11.375% senior notes.


* Fitch Ratings Issues Comment on Mexico
----------------------------------------
Fitch Ratings, the international rating agency, said Tuesday
that Mexico needs to implement economic reforms in order to
sustain the economic recovery currently underway. Mexico's
short-term economic indictors point to an economic rebound after
three years of sluggish growth.

In a report titled 'United Mexican States: Sustaining the
Economic Recovery', Fitch says that in the absence of reforms,
Mexico's economy remains heavily reliant on the U.S. for
economic growth. The report cautions that notwithstanding the
recent economic recovery -- underpinned by higher industrial
production and stronger export growth -- competitive pressures
facing Mexico continue to mount. Mexico appears to have lost its
advantage in labor-intensive maquila products to countries in
Central America and China in particular. In Fitch's view, the
recovery in the maquila and the overall manufacturing sector
needs to be closely monitored to assess the extent of damage
from intense competition.

The report commends the authorities for adept macroeconomic
management during the past three years of regional turmoil and
slow domestic growth. During this period, fiscal targets have
been met and the central bank has remained committed to
achieving its inflation target. However, Fitch believes that
Mexico needs to make progress on structural reforms in order to
consolidate its current economic recovery, boost its
competitiveness and improve its attractiveness to foreign
investors. Reforms in the labor market and electricity sectors,
and further improvements in the regulatory and business
environment should help Mexico regain some share of its export
markets. At the same time, fiscal reform aimed at improving the
tax-to-GDP ratio needs to be pursued. Greater resources could be
used to reduce reliance on oil revenues and increase spending on
infrastructure and social sectors.

Fitch remains concerned about the lack of political consensus on
structural reforms and believes that political wrangling will
increase in the coming year ahead of presidential and
congressional elections in 2006, making cooperation on reforms
rather difficult. Fitch notes that in the absence of substantive
reforms, the credit Outlook of Mexico may only improve if there
is a sharp decline in the public sector external debt burden. In
contrast, inertia in pursuing reforms may adversely affect
international confidence and prevent the economy from growing at
a faster pace. Policy slippage, especially fiscal related would
be viewed negatively.



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

* S&P Ups Peru's Long-term Foreign Currency Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to 'BB'
from 'BB-'. Standard & Poor's also affirmed its 'BB+' long-term
local currency and its 'B' short-term sovereign credit ratings
on the republic. The outlook on the ratings is stable.

According to Standard & Poor's Ratings Services sovereign
analyst Sebastian Briozzo, the upgrade was based upon the recent
strengthening of Peru's economic fundamentals and the
expectation that these economic policies will be sustained in
the future, despite the continuing problems in Peru's political
environment.

"Implementation of a fiscal consolidation strategy has gradually
stabilized Peru's debt burden," Mr. Briozzo said. "The country's
successful fiscal strategy is essential in providing flexibility
to an economy that is still severely constrained by a high
external indebtedness, an only limited margin for implementing
monetary policy due to dollarization, and significant social
needs," he added.

Mr. Briozzo explained that the combination of decreasing
financing needs derived from lower fiscal deficits, rapidly
growing exports, and increasing issuance of debt denominated in
local currency have mitigated Peru's still-high external
vulnerability. A high level of international reserves also
reduces the country's economic vulnerability to external shocks.

Standard & Poor's said that Peru's creditworthiness will
continue to be limited by a weak political environment
consistent with a 'BB' rating. Relatively high economic growth
rates since 2002, averaging 4.4% (including the expected 4%
growth for 2004), have not improved the political and social
climate in Peru.

"Despite relatively strong growth prospects over the medium
term, the need to make this growth pattern sustainable and job-
creating will continue to challenge Peruvian governments," noted
Mr. Briozzo. "Recent signs of increasing social tension will
even further limit the ability of the already-weak
administration of President Alejandro Toledo to pursue its
agenda. However, a growing consensus among the different
political constituencies on the basic orientation of economic
policy limits the risk of policy reversal," he concluded.

ANALYSTS:  Sebastian Briozzo, New York 212-438-7342
           Jane Eddy, New York (1) 212-438-7996



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

PARMALAT URUGUAY: Conaprole Submits Two Bids
--------------------------------------------
Conaprole, Uruguay's number one dairy producer and exporter, has
submitted two bids for the local subsidiary of troubled Parmalat
S.p.A., one of them on its own and another one in alliance with
Irish Glanbia, El Pais newspaper reported.

Although some milk farmers fear the monopolization of the
market, Wilson Cabrera, the head of the local Milk Producers
Association, explained "there will be no monopoly, because there
are other companies that have been in business for several
years."

The Troubled Company Reporter - Latin America earlier indicated
that taking over Parmalat would open a 20% share in the milk
market for Conaprole.

Parmalat Uruguay reports assets of US$18 million, annual sales
of US$45 million and debts of US$30 million.



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

PDVSA: Sends Test-Shipment of Ethanol-Ready Fuel
------------------------------------------------
Petroleos de Venezuela S.A. (PVZ.YY) dispatched A 250,000-barrel
test shipment of summer-grade ethanol-ready gasoline for sale in
New York and Connecticut on Saturday.

The shipment, the first of four cargoes scheduled for delivery
this month, could determine if PdVSA can comply with stricter
U.S. specifications for ethanol-containing fuel.  

According to Dow Jones Newswires, PdVSA will rely on CITGO, its
fully owned subsidiary, to mix the zero-MTBE gasoline base -
called RBOB, or reformulated gasoline for oxygenate blending -
with ethanol at its terminals on the U.S. East Coast, so it can
meet the new fuel guidelines.

A three-month strike that began on December 2002 at PdVSA's
refining plants has weakened its operations, leading to
speculations that the company would not be able to produce
gasoline under the tougher standards set by New York and
Connecticut.


PDVSA: Drills New Wells to Up Oil Output
----------------------------------------
Four new wells will be added at Petroleos de Venezuela's
(PVZ.YY) Tomoporo oil field in Lake Maracaibo region in order to
take advantage of recent oil price hikes as well as meet
Venezuela's adjusted OPEC production quota of 2.93 million
barrels a day.

Tomoporo along with La Franquera will be the focus of PdVSA's
US$26 billion oil exploration and production plan for the next
five years. In that period, the Venezuelan oil giant expects to
complete drill 3,800 new wells, perform workovers on 5,500
wells, and maintain an average of 111 rigs in operation.

Industry analysts say the company has to invest in production
facilities to increase output and they caution that it will be
difficult for PdVSA to meet this year's projected US$5 billion
investment because of government spending projects. The
Venezuelan government recently set up a $2 billion spending fund
that will be directly financed with oil revenue.



                            ***********


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
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Information contained herein is obtained from sources believed
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members of the same firm for the term of the initial
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