TCRLA_Public/040611.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, June 11, 2004, Vol. 5, Issue 115

                            Headlines


A R G E N T I N A

4966 S.R.L.: Court Orders Liquidation
BANCO HIPOTECARIO: Endorses Out of Court Settlement Plan
BOM PAN S.A.: Drops Reorganization Motion, Liquidation Follows
CONTACT CENTRE: Trustee Assigned for Liquidation Process
DESARROLLOS TECNOLOGICOS: Court Declares Bankruptcy Official

DITTEM S.A.: Court Decides on Liquidation
GUBBIO S.A.: Initiates Liquidation Process
FERROMEC: Court Orders Company to Wind Up
HACIA TODOS LOS MUNDOS: Liquidates Assets to Pay Debts
HIDROELECTRICA PIEDRA: APE Gets Adequate Creditor Approval

M.D. UNIFORMES: Initiates Bankruptcy Proceedings
MEWA S.R.L.: Claims Verification Deadline Approaches
PAQUEAR S.A.: Schedule for Reports Submission Set
RENT AND WASH: Court Orders Bankruptcy, Liquidation Follows
RUEDAS ZONDA: Verification Deadline Fixed

SOCDEL S.A.: Judge Rules Bankruptcy
TECIA S.A.: Court Issues Bankruptcy Ruling
* IMF Insists Argentina Agree With Creditors


B E R M U D A

ALPHASTAR INSURANCE: May File Suit Against Founder


B R A Z I L

ELETROPAULO METROPOLITANA: Additional BNDES Payment Expected
EMBRATEL: President, General Counsel Resign
INVITEL: Moody's Assigns Proposed Debenture Issue Ratings
OPPORTUNITY MEM: Moody's Assigns Ratings to Debentures
OPPORTUNITY ZAIN: Moody's Issues New Debentures `C.br'

PARMALAT BRAZIL: Positive Cash Flow Expected By September


G U Y A N A

* IDB Approves $28M Soft Loan To Guyana


H O N D U R A S

* IDB Approves $30.6M Loan To Honduras


M E X I C O

HYLSA: S&P Raises Ratings To B; Outlook Stable


P E R U

* IMF Approves 26-Month $422.8M Stand-By Arrangement for Peru


T R I N I D A D   &   T O B A G O

BWIA: Gives Shareholder Rights Offer for Additional Shares


V E N E Z U E L A

CANTV: Foreign Dividend Payments Set for Distribution


     - - - - - - - - - -


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

4966 S.R.L.: Court Orders Liquidation
-------------------------------------
4966 S.R.L. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Buenos Aires Court No. 12.
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 Ms. Norma A Balmes as
trustee. She will be reviewing creditors' proofs of claim until
June 28, 2004. The verified claims will be the basis for the
individual reports to be presented for court approval on August
24, 2004. Afterwards, the trustee will also submit a general
report on October 19, 2004.

Clerk No. 23 assists the court on this case, which will end with
the disposal of the Company's assets to cover its liabilities.

CONTACT: Ms. Norma A Balmes, Trustee
         Roque Saenz Pea 1185
         Buenos Aires


BANCO HIPOTECARIO: Endorses Out of Court Settlement Plan
--------------------------------------------------------
Banco Hipotecario S.A. has endorsed the details of an extra-
judicial arrangement it had entered with creditors at the First-
Instance National Commercial Court No. 14, Secretary's Office
No. 28 reports Infobae.

Once approved by the court, pre-existing or future creditors
cannot collaterally attack the settlement proposal in the event
that the debtor subsequently liquidates.

CONTACT: Banco Hipotecario S.A.
         San Martin 140
         Buenos Aires


BOM PAN S.A.: Drops Reorganization Motion, Liquidation Follows
--------------------------------------------------------------
Buenos Aires-based company Bom Pan S.A. withdrew its petition to
convert a recent bankruptcy ruling into reorganization.
Accordingly, the Company will continue with the liquidation
process.

Infobae relates that Mr. Luis Alberto Guevara supervises the
bankruptcy as the court-appointed trustee. He will be accepting
creditors' proofs of claims for verification until August 26,
2004.


CONTACT: Mr. Luis Alberto Guevara, Trustee
         Ayacucho 242
         Beunos Aires


CONTACT CENTRE: Trustee Assigned for Liquidation Process
--------------------------------------------------------
Court-appointed trustee, Mr. Anibal Daniel Osuna, will preside
over the liquidation of Buenos-Aires based Contact Centre S.A.
states Infobae. The trustee will verify creditors' claims
against the Company until August 23,2004. Following claims
verification, individual reports will be presented for court
approval on October 4, 2004. A general report on the case will
also be submitted on November 16, 2004.

Court No. 23, with the assistance of Clerk No. 46, handles the
bankruptcy proceedings.

CONTACT: Mr. Anibal Daniel Osuna, Trustee
         Mercedes 3259
         Buenos Aires


DESARROLLOS TECNOLOGICOS: Court Declares Bankruptcy Official
------------------------------------------------------------
Desarrollos Tecnologicos S.A. begins the liquidation process
after Buenos Aires Court No. 26 decreed the Company's
bankruptcy, says Infobae.

The court's bankruptcy order transfers control of the Company to
a court-appointed trustee during the course of the liquidation.
The case will end with the disposal of the Company's assets to
repay debts.

CONTACT: Desarrollos Tecnologicos S.A.
         Avda Pueyrredon 886
         Buenos Aires


DITTEM S.A.: Court Decides on Liquidation
-----------------------------------------
Buenos Aires Court No. 15 has decreed the bankruptcy of Dittem
S.A., reports Infobae. The Company will begin the process with
Ms. Eva Malvina Gorsd as trustee. She will verify creditors'
claims until August 9, 2004.

The Company's case will conclude with the liquidation of its
assets to repay creditors. Clerk No. 30 assists the court in
handling the proceedings.

CONTACT: Ms. Eva Malvina Gorsd, Trustee
         Paraguay 1225
         Buenos Aires


GUBBIO S.A.: Initiates Liquidation Process
------------------------------------------
Gubbio S.A. of Buenos Aires will begin liquidating its assets
after the city's Court No. 7 declared the Company bankrupt.
Infobae reveals that the bankruptcy process will commence under
the supervision of court-appointed trustee, Ms. Alicia Rita
Romeo.

The trustee will review claims forwarded by the Company's
creditors until August 3, 2004. After claims verification, Ms.
Romeo will submit the individual reports for court approval on
September 14, 2004. The submission of the general report will
follow on October 26, 2004.

Clerk No. 14 assists the court on this case.

CONTACT: Ms. Alicia Rita Romeo, Trustee
         Rodriguez Pea 694
         Buenos Aires


FERROMEC: Court Orders Company to Wind Up
-----------------------------------------
Ferromec S.A. will enter bankruptcy protection after Buenos
Aires Court No. 21, with the assistance of Clerk No. 42, ordered
the Company's liquidation. Infobae reports that the court
selected Mr. Armando Esteban Bozzini as trustee. He will be
verifying creditors' proofs of claim until the end of the
verification phase on November 23, 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 March 8, 2005 followed by the general report, which is due on
April 28, 2005.

CONTACT: Mr. Armando Esteban Bozzini, Trustee
         Vidal 3375
         Buenos Aires


HACIA TODOS LOS MUNDOS: Liquidates Assets to Pay Debts
------------------------------------------------------
Hacia Todos Los Mundos S.A. will begin liquidating its assets
following the pronouncement of the city's Court No. 26 that the
Company is bankrupt, Infobae reports. The bankruptcy ruling
places the Company under the supervision of court-appointed
trustee, Ms. Maria Silvia Cosoli. She will verify creditors'
claims until August 20, 2004.

The validated claims will be presented in court as individual
reports on October 1, 2004. Ms. Cosoli 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 15, 2004.

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

CONTACT: Hacia Todos Los Mundos S.A.
         Dorrego 2699
         Buenos Aires

         Ms. Maria Silvia Cosoli, Trustee
         Uruguay 750
         Buenos Aires


HIDROELECTRICA PIEDRA: APE Gets Adequate Creditor Approval
----------------------------------------------------------
Argentine generator Hidroelectrica Piedra del Aguila SA informed
the local stock exchange Wednesday that it has struck an out-of-
court-agreement (APE) with its creditors to restructure about
US$268 million in debt, relates Dow Jones Newswires.

In a statement to the bourse, the Company, which is a unit of
French company Total SA, revealed it received approval from
creditors representing US$246.3 million, or 92% of its debt. The
percentage is more than the required two-thirds agreement under
Argentine law for this kind of out-of-court debt restructuring.

HPDA can now submit its proposal for legal approval, which will
then make the new repayment terms binding on all creditors.

HPDA ceased debt payments at the end of June 2002 and started
talks with creditors in October of that year. After launching
its offer in February 2003, it extended the proposal once and
modified the terms in April. It then extended the offer once
more in late April. The revised proposal carries three options:
a cash option worth 45% of the original nominal value of the old
bonds; a bond coming due in 2013 with a fixed interest rate of
4%; and a bond coming due in 2013 with an interest rate that
varies according to the company's cash position.


M.D. UNIFORMES: Initiates Bankruptcy Proceedings
------------------------------------------------
Buenos Aires Court No. 21 declared M.D. Uniformes S.A.
"Quiebra," reports Infobae. Clerk No. 42 assists the court on
the case, which will close with the liquidation of the Company's
assets to repay creditors.

Mr. Armando Esteban Bozzini, who has been appointed as trustee,
will verify creditors' claims until October 27, 2004 and then
prepare the individual reports based on the results of the
verification process.

The individual reports will be submitted in court on December
15, 2004, followed by the general report on March 14, 2005.

CONTACT: M.D. Uniformes S.A.
         Jean Jaures 695
         Buenos Aires

         Mr. Armando Esteban Bozzini, Trustee
         Vidal 3375
         Buenos Aires


MEWA S.R.L.: Claims Verification Deadline Approaches
----------------------------------------------------
The verification of claims for the Mewa S.R.L. bankruptcy will
end on August 9, 2004 according to Argentine news source
Infobae. Creditors with claims against the bankrupt company must
present proof of the liabilities to Mr. Ernesto Oscar Puerta,
the court-appointed trustee, before the said deadline.

Buenos Aires Court No.15 handles the Company's case with the
assistance of Clerk No. 30. The bankruptcy will conclude with
the liquidation of the Company's assets to pay its creditors.

CONTACT: Mr. Ernesto Oscar Puerta, Trustee
         Juan B Alberdi 1145
         Buenos Aires


PAQUEAR S.A.: Schedule for Reports Submission Set
-------------------------------------------------
Mr. Pablo Kainsky, the trustee assigned to supervise the
liquidation of Paquear S.A., will submit on October 1, 2004 the
validated individual claims for court approval following the
completion of the verification period on August 20, 2004. The
trustee will also submit a general report on November 15, 2004.

Infobae reports that Buenos Aires Court No. 26 is handling the
Company's bankruptcy case with assistance from Clerk No. 51.

CONTACT: Paquear S.A.
         Bucarelli 941/943
         Buenos Aires

         Pablo Kainsky, Trustee
         Reconquista 715
         Buenos Aires


RENT AND WASH: Court Orders Bankruptcy, Liquidation Follows
-----------------------------------------------------------
Buenos Aires Court No. 26, with the assistance of Clerk No. 51,
declared Rent and Wash S.A. bankrupt, reports Infobae. The
liquidation order comes after the Company's default in debt
payments.

Under bankruptcy protection, the Company will turn over its
assets to a court-appointed trustee tasked with supervising the
liquidation process.

The court has not provided the name of the trustee or the
deadline of the verification period.

CONTACT: Rent And Wash S.A.
         Pichincha 1486
         Buenos Aires


RUEDAS ZONDA: Verification Deadline Fixed
------------------------------------------
Local news source Infobae announces that the verification of
creditors' claims for the Ruedas Zonda S.A. bankruptcy will
close on August 20, 2004.

Creditors with outstanding claims against the bankrupt company
must submit proofs of these debts to Mr. Carlos Alberto Lausi,
the court-appointed trustee, before the stated date.

Buenos Aires Court No. 15, with the assistance of Clerk No. 30,
handles this case.

CONTACT: Mr. Carlos Alberto Lausi, Trustee
         Avda Cordoba 456
         Buenos Aires


SOCDEL S.A.: Judge Rules Bankruptcy
-----------------------------------
Judge Uzal of Buenos Aires Court No. 26 denied the
reorganization petition of Socdel S.A., thereby opening the
Company for liquidation. With the bankruptcy order in place, the
court-appointed trustee, Ms. Clara Auerhan, will assume control
of the Company's assets for eventual sale in favor of its
creditors.

Infobae reminds that creditors with claims against the real-
estate company must present proofs of the Company's indebtedness
to the trustee before August 25, 2004.

After the verification period, Ms. Auerhan will provide the
court with individual reports pertaining to the submitted claims
on October 6, 2004. She will also present a general report on
November 18, 2004.

CONTACT: Ms. Clara Auerhan, Trustee
         Uruguay 872
         Buenos Aires


TECIA S.A.: Court Issues Bankruptcy Ruling
------------------------------------------
Tecia S.A. will now enter bankruptcy after Buenos Aires Court
No. 14 declared it "Quiebra," reports Infobae. With assistance
from Clerk No. 14, the court named Mr. Abel Alexis Latendorf as
trustee. He will verify creditors' claims until July 14, 2004.

Following claims verification, the trustee will submit the
individual reports, which were prepared based on the
verification results, to the court on September 9, 2004. The
general report is due for submission on October 22, 2004.

CONTACT: Mr. Abel Alexis Latendorf, Trustee
         Piedras 153
         Buenos Aires


* IMF Insists Argentina Agree With Creditors
---------------------------------------------
The International Monetary Fund new Managing Director Rodrigo
Rato said that the accomplishment of an agreement with all
creditors is one of the "very important" steps the Argentine
authorities have to complete to leave behind the economic crisis
and have Argentina completely integrated into international
financial markets.

Speaking in his first press conference as IMF Managing Director
Mr. Rato recalled that precisely for that reason the question of
debt negotiations with all Argentine creditors was included in
the IMF-Argentina program and the provision that "those
negotiations will be sustained in good faith".

"We recognize clearly that the evolution of the Argentine
economy has been better than expected, that the management of
the monetary policy and the fiscal policy has been good, but we
also see that to achieve progress in certain areas we have to
keep working at it. To mention a few, a fiscal agreements with
the provinces, the closing of an agreement with all creditors,
the strengthening of the financial system, and finally designing
a legal and administrative environment that will be helpful for
private investment", highlighted Mr. Rato.

"I have spoken with Mr. Roberto Lavagna about it, that the work
of the Argentine Government moves in that direction, and we are
very much interested that those negotiations are completed so
that step for the normalization of the Argentine situation can
become a fact".

Insisting that an agreement with "all creditors is very
important", Mr. Rato said he was confident in Argentine
authorities to reach an agreement since "it's one of the key
issues to leave the crisis behind and so allow the Argentinean
society to have full access to international capital markets. We
follow closely negotiations between Argentine authorities and
creditors", however the IMF will make no comments about
specifics of those negotiations.

As to world economic prospects and the challenges of oil prices
and a rise in United States interest rates as anticipated by
Federal Reserve Alan Greenspan, Mr. Rato indicated that "as we
have expressed in our review of the American economy, we don't
see signs of risk of inflation. And I think that that
appreciation is shared by most institutions, including certainly
the Federal Reserve. So we think that (US) monetary policy will
follow the path the US authorities have already expressed".

Regarding oil Mr. Rato revealed that the IMF world economy
assessment is under review, "but I can tell you that we don't
see a downward risk right now. So although it's true that the
price of oil that we are predicting today will be in the realm
of $5 higher than we anticipated a few months ago, the evolution
of the world economy in some areas and the demand in the world
economy will more than compensate that effect. So we are looking
at a clear recovery of the world economy and the IMF forecast of
a 4,6% growth is not at risk of being reviewed downwards".



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

ALPHASTAR INSURANCE: May File Suit Against Founder
--------------------------------------------------
Bankrupt company AlphaStar Insurance Group has included Mr.
Nicholas Brown, one of its founders, in a list of parties
against whom the Company is considering filing a claim.

Citing the May 31 issue of finance industry newsletter
InsideBermuda, the Royal Gazette reports that AlphaStar may
press the lawsuit on the basis of his alleged mismanagement of
the Company prior to his resignation on October 1999.

A report filed by AlphaStar, formerly Stirling Cooke Brown
Holdings Ltd., with the U.S. Bankruptcy Court on April 21 noted
these possible claims against Mr. Brown under the Company's
"Contingent Claims and Other Interests."

The contingent claims listed by the Company also involve several
other parties. Among them are KPMG for alleged failure to
complete audit work on several AlphaStar subsidiaries; American
Insurance Managers Inc., American Insurance Management Group
Inc. and Atlanta Insurance Marketing Inc. for their issuance of
unauthorized certificates of insurance allegedly on behalf of
Realm National Insurance Company, and a failed attempt to
purchase that company; and John Hancock Financial Management
Company for alleged intentional breach of contract.

However, these claims have not been valued and consequently are
not part of the Company's $4.75 million stated assets in the
form of inter-company loans to Bermuda and UK affiliates.

Alphastar also disclosed estimated liabilities of $2.6 million,
which does not include any contingent liabilities arising from
the reported fraudulent activity of the group.



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

ELETROPAULO METROPOLITANA: Additional BNDES Payment Expected
------------------------------------------------------------
The president of Eletropaulo Metropolitana Eletricidade de Sao
Paulo SA is confident that the Brazilian power distributor would
get BRL270 million (US$87 million) in credits from Brazil's
national development bank BNDES within 60 days, says Reuters.
Eletropaulo President Eduardo Bernini said that the Company, an
affiliate of U.S. power company AES Corp., would use the money
to pay off its creditors as part of a debt restructuring
agreement.

The expected disbursement from BNDES follows last week's
BRL521.4-million (US$168 million) payment also from BNDES to
Eletropaulo. This payment was part of the CVA financing program
instituted by the federal government in November 2003 to
anticipate the uncontrollable costs element of the power rate
adjustment, which was withheld for 12 months from April 2003 as
an anti-inflation measure.

The BRL270-million is related to federal aid for losses during
the government-imposed energy rationing of 2001-2002, when a
drought depleted Brazil's hydroelectric power generation
capacity.

"That will possibly be the last financing we get this year" from
the BNDES, Bernini said.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


EMBRATEL: President, General Counsel Resign
-------------------------------------------
Embratel Participacoes S.A. (Embrapar) announces that Jorge
Rodriguez, President of Embratel Participacoes S.A. submitted
his resignation to the Board of Directors in a Board of
Directors Meeting which occurred on June 7, 2004.

The resignations of Jorge Luis Rodriguez, President of Embratel
Participacoes S.A. and Claudia de Azeredo Santos, officer and
General Counsel, were presented by them and were accepted by the
Board of Directors.

These resignations will take effect only on the later of (i) the
date in which the shares that represent the control stake of
Embratel Participacoes S.A. are transferred to Telefonos de
Mexico S.A. de C.V. (Telmex) or (ii) July 31, 2004, but in any
event no later than November 8, 2004.

Embratel is the premium telecommunications provider in Brazil
and offers and ample variety of telecom services -local and long
distance telephony, advanced voice, high-speed data
transmission, Internet, satellite data communications, and
corporate networks.

The company is a leader in the country for data services and
Internet, and is highly qualified to be an all-distance network
carrier in Latin America.

Embratel's network spreads countrywide, with almost 29 thousand
kms of optic cables, which represents about one million and
sixty-nine thousand km of fiber optics.

CONTACT: Ms. Silvia M.R. Pereira
         Investor Relations
         Tel: (55 21) 2121-9662
         Fax: (55 21) 2121-6388
         E-mail: silvia.pereira@embratel.com.br
                invest@embratel.com.br

         Web Site: www.embratel.com.br


INVITEL: Moody's Assigns Proposed Debenture Issue Ratings
---------------------------------------------------------
Moody's America Latina Ltda. assigned Ca.br rating and Ca rating
to Invitel S.A.'s Brazil National Scale and Global Local
Currency Scale, respectively. The ratings assigned affect
Invitel's proposed BRL160 - BRL260 million in local subordinated
debentures due 2010.

The rating outlook is stable.

Moody's assigned the ratings in view of the fact that Invitel is
a holding company, with cash flow solely originated from
dividends and interest on own capital ("dividends") paid by
Brasil Telecom S.A. ("BRT"; rated Aa1.br on the Brazil National
Scale and Baa3 of the Global Local Currency Scale), which is
ultimately controlled by Invitel.

The ratings reflect the rating agency's expectation that
dividends received by Invitel will not provide cash flow
sufficient to service the debentures and the remaining BNDES
secured debt located at Invitel and Techold ParticipacC5es S.A.
("Techold"), Invitel's 100% owned subsidiary. Thus, the ratings
are pegged entirely to ultimate anticipated recovery levels for
Invitel's creditors.

The Ca.br and Ca ratings reflect Moody's expectation of loss
severity of 30% or greater for debenture holders under an
assumed restructuring of the company's balance sheet that would
allow it to service its debt obligations.

Finally, the assigned ratings consider the possibility that
Invitel will be capitalized by its shareholders, thus improving
its capital structure.


OPPORTUNITY MEM: Moody's Assigns Ratings to Debentures
------------------------------------------------------
The proposed issuance of BRL100 million - BRL200 million in
local subordinated debentures due 2010 by Opportunity MEM S.A.
obtained a Brazil National Scale rating of Ca.br and a Global
Local Currency Scale Rating of Ca from Moody's America Latina
Ltda.

The agency assigned a stable outlook on the ratings.

Moody's took the action in view of the fact that Opportunity MEM
is a holding company, with cash flow solely originated from
dividends and interest on own capital ("dividends") paid by
operating companies Telemig Celular S.A. and Amazonia Celular
S.A., which are ultimately controlled by Opportunity MEM.

The ratings reflect Moody's expectation that dividends received
by Opportunity MEM will not provide cash flow sufficient to
service the debentures. Thus, the ratings are pegged entirely to
ultimate anticipated recovery levels for Opportunity MEM's
creditors.

Moreover, the Ca.br and Ca ratings reflect Moody's expectation
of loss severity of 30% or greater for debenture holders under
an assumed restructuring of the Company's balance sheet that
would allow it to service its debt obligations.

Finally, the assigned ratings consider the possibility that
Opportunity MEM will be capitalized by its shareholders, thus
improving its capital structure.


OPPORTUNITY ZAIN: Moody's Issues New Debentures `C.br'
------------------------------------------------------
Moody's America Latina Ltda. assigned C.br rating and C rating
to Opportunity Zain's Brazil National Scale and Global Local
Currency Scale, respectively. The assigned ratings affect
Opportunity Zain's proposed issuance of BRL160 million - BRL350
million in local subordinated debentures due 2010.

The rating outlook is stable.

Moody's took the action considering that Opportunity Zain is a
holding company, with cash flow solely originated from dividends
and interest on own capital ("dividends") paid by Brasil Telecom
S.A. ("BRT"; rated Aa1.br on the Brazil National Scale and Baa3
of the Global Local Currency Scale), which is ultimately
controlled by Opportunity Zain.

The ratings reflect the rating agency's expectation that
dividends received by Opportunity Zain will not provide cash
flow sufficient to service the debentures. Thus, the ratings are
pegged entirely to ultimate anticipated recovery levels for
Opportunity Zain's creditors, says Moody's.

The C.br and C ratings reflect Moody's expectation of loss
severity of 80% or greater for debenture holders under an
assumed restructuring of the Company's balance sheet that would
allow it to service its debt obligations.


PARMALAT BRAZIL: Positive Cash Flow Expected By September
---------------------------------------------------------
Parmalat Brasil Industria de Alimentos should generate neutral
or positive cash flows by September, Mr. Nelson Bastos, the head
of the local operations, said, echoing comments made earlier by
its Italian parent Parmalat Finanziaria S.p.A.

Citing local daily Valor Economico, Dow Jones reports that
Parmalat Brazil billed BRL39 million in May, more than any other
month since an accounting scandal engulfed its Italian parent in
December.

Parmalat Brazil is working to sign sales contracts and restart
local milk processing operations that nearly ground to a halt
after Parmalat Italy descended into crisis.



===========
G U Y A N A
===========

* IDB Approves $28M Soft Loan To Guyana
---------------------------------------
The Inter-American Development Bank announced Wednesday the
approval of a $28 million soft loan to Guyana to support a
reform agenda aimed at ensuring continued fiscal sustainability
and the transparent and efficient management of public finances.

The project is the result of a close process of dialogue between
the Bank and the Guyanese authorities and will support a series
of legislative and administrative steps designed to increase
efficiency and equity of the tax system and improve public
expenditure management and transparency. These measures were
agreed upon by the Guyanese government and the international
community on the basis of the recommendations of a series of
technical assessments conducted by international agencies over
the past two years. The steps were taken within the framework of
the Enhanced HIPC Initiative - the international effort to
provide debt relief to heavily indebted poor countries,
including Guyana.

The IDB-financed program, whose implementation will be led by
the Ministry of Finance*, takes the form of a hybrid lending
operation consisting of a policy-based financing component and
an investment component. With respect to the first, the initial
phase of the program is aimed at establishing a modern
legislative framework for fiscal and financial management, with
subsequent phases supporting the effective implementation of the
reforms. The IDB, through its dialogue with the authorities, has
provided substantial assistance and guidance with respect to the
prioritization and sequencing of the various reforms.

For the investment component, resources will be invested in the
development and implementation of a comprehensive modernization
plan for the Guyana Revenue Authority, as well as in the
expansion of an integrated financial management system recently
installed with the support of the Canadian Development Agency.

At the same time, in supporting the implementation of
constitutional reforms adopted in 2001 in the areas of public
audit and financial and fiduciary oversight, the program will
strengthen the role of parliament in the oversight of fiscal and
financial management.

The program reflects the IDB strategy of assisting Guyana in
maintaining a sound macroeconomic framework and modernizing the
state.

The IDB loan is for a 40-year term, with a 10-year grace period,
at a 1 percent annual interest rate during the grace period and
2 percent thereafter. Local counterpart funds total $1.5
million.


===============
H O N D U R A S
===============

* IDB Approves $30.6M Loan To Honduras
--------------------------------------
The Inter-American Development Bank announced Wednesday the
approval of a $30.6 million concessional loan to Honduras to
support the country in its achievement of the goals of a Poverty
Reduction Strategy, increasing the coverage of quality secondary
education and improving the job skills of youth and adults.

According to IDB Project Team Leader Carlos Miranda, the program
is expected to help more young Hondurans gain access to better
jobs or go on to higher education. About 52 percent of Honduras'
6.5 million people are under 20 years old.

The project consists of two subprograms, one dedicated to
secondary education and the other to job training through
public-private service intermediation.

The secondary education subprogram, to be carried out by the
Ministry of Education*, will increase the coverage of grades 7
through 12. School buildings will be refurbished to make room
for more students in areas with high levels of unsatisfied
demand for education. Distance learning programs with proven
track records will also be expanded to serve more young people
in rural areas.

Another component will provide technical assistance and training
to improve schools with high dropout and grade repetition rates.
The Ministry of Education's human resources management
capabilities will be strengthened to improve the allocation of
teachers to meet unsatisfied demand for secondary education.
Public information activities will seek to raise popular demand
for education and solidarity with young people left out of the
school system.

The labor subprogram, which will be carried out by the Ministry
of Labor and Social Security (STSS)**, is aimed at increasing
the employment opportunities of the unemployed or underemployed.
It also seeks to involve the private sector in developing
workplace job training mechanisms tailored to the specific
demands of the Honduran labor market.

To that end, the Labor Ministry will engage CADERH, a not-for-
profit organization established by business, labor and
professional leaders to improve technical and vocational
education in Honduras, and it will also enlist the collaboration
of COHEP, a private sector federation.

Trainees will receive a stipend for up to three months and
insurance for work-related accidents. The government and the
private sector will establish a job placement service to link
people looking for work with organizations in need of workers.
COHEP already runs an electronic jobs database that will be a
key tool for the new service.

The IDB will coordinate this program with other initiatives to
increase the quality and coverage of Honduran education financed
by the World Bank, the U.S. Agency for International
Development, the European Union and other donors.

The loan is for a 40-year term, with a 10-year grace period. The
annual interest rate will be 1 percent during the first decade
and 2 percent thereafter. Local counterpart funds will total
$3.4 million.



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

HYLSA: S&P Raises Ratings To B; Outlook Stable
----------------------------------------------
Standard & Poor's Ratings Services raised its local currency and
foreign currency corporate credit ratings on Hylsa S.A. de C.V.
(Hylsa) to 'B' from 'CCC+.' The senior unsecured debt rating on
Hylsa was also raised to 'CCC+' from 'CCC-'. The outlook is
stable.

"The rating action is based on the company's increasing revenues
due to a better product mix and higher price environment,
effective cost control, positive free cash flow generation, and
significant debt reduction of 11.6% so far this year," said
Standard & Poor's credit analyst Juan P. Becerra.

The ratings on Mexican steel producer Hylsa reflect Hylsa's high
leverage, the challenges posed by industry cyclicality, very
competitive steel markets, and significant exposure to the
automotive and construction industries. The ratings also reflect
the company's position as one of the largest steel makers in
Mexico, improved local market demand, improving cost position,
and expected debt reduction with cash flows from the improved
pricing environment in global steel markets.

The stable outlook is supported by an improved financial profile
as a result of Hylsa's debt prepayments and improving operating
performance. The ratings could be raised over time if Hylsa
continues to significantly reduce debt. The ratings could be
lowered if the decrease in prices is steeper than anticipated or
if debt levels are not reduced as expected.

ANALYSTS:  Juan P Becerra, Mexico City (52) 55-5081-4416
           Santiago Carniado, Mexico City (52) 55-5081-4413



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

* IMF Approves 26-Month $422.8M Stand-By Arrangement for Peru
-------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
Wednesday approved a 26-month SDR 287.3 million (about US$422.8
million) Stand-By Arrangement for Peru to support the country's
economic program through mid-2006. The approval enables the
release of a first drawing of SDR 80 million (about US$118
million) under the arrangement. However, the authorities have
indicated their intention to treat this arrangement as
precautionary.

Following the Executive Board discussion, on Peru, Rodrigo de
Rato, Managing Director and Chairman of the Board, said:

"Peru's recent economic performance has been favorable, with
solid growth and low inflation. Substantial buffers, including a
high level of international reserves and a well-capitalized
banking system, have been built up to further reduce
vulnerabilities associated with high dollarization and public
debt, and there has been progress with structural reforms. The
authorities' program for 2004-06 aims at consolidating
macroeconomic stability, fortifying confidence, strengthening
the basis for sustainable growth and employment creation so as
to reduce poverty, and further reducing financial
vulnerabilities. It focuses on the consistent implementation of
their inflation-targeting framework and on fiscal consolidation,
with a view to continue improving public debt dynamics and
increasing the scope for priority social and infrastructure
investment.

"The program also includes a broad set of growth-enhancing
reforms aimed at reducing the high levels of unemployment and
poverty. In 2004, the authorities plan to foster private
investment by establishing commercial courts and improving
collateral registries. They also plan to grant operating
concessions to the private sector and enter into targeted
public-private partnerships (PPPs), which will be implemented in
a prudent manner and accounted for transparently in the budget.
The reform program will also improve public resource management,
modify public pension regimes-including the preferential Cedula
Viva-reduce labor costs, and strengthen bank supervision and the
legal framework for fiscal decentralization.

"The authorities' firm commitment to implementing prudent
economic polices in the context of a challenging political and
social environment is commendable. Strengthening political
consensus for critical reforms will be crucial to press forward
with the reform momentum of recent years and reduce the
vulnerabilities facing the economy and reinforce confidence in
the continuity of prudent policies. This will help boost broad-
based and sustainable growth and employment and reduce poverty,
while strengthening the basis for Peru's successful exit from
the series of Fund-supported programs," the Managing Director
said.

Recent economic developments

Peru made progress in stabilizing its economy and adopting
growth-enhancing structural reforms, under the 2002-03 Stand-By
Arrangement with the Fund. Economic growth averaged 4.5 percent
a year, inflation remained low under the inflation targeting
framework of the central bank, and substantial buffers were
built to mitigate financial vulnerabilities. These buffers
included a high level of international reserves and a well-
capitalized banking system. Progress was also made in structural
reforms, including in the areas of decentralization, pension
reform, clarifying fiscal rules, strengthening the financial
system, and reorienting the privatization program towards
granting concessions.

In 2003, Peru's GDP grew by 4 percent in real terms and
inflation was limited to 2.5 percent. Fiscal consolidation was
in line with the government's target-the deficit of the combined
public sector was reduced from 2.2 percent of GDP in 2002 to 1.7
percent of GDP. Revenues were boosted by tax measures introduced
in mid 2002 and mid 2003. Peru's external position also
strengthened in 2003 and financial indicators improved. The
external current account deficit fell from more than 2 percent
of GDP in 2002 to about 1.75 percent, driven by commodity export
growth. Private capital inflows remained strong, particularly
foreign direct investment in the natural resource sector. Gross
international reserves rose by about US$500 million during 2003
and by a further US$250 million during the first four months of
2004, to US$10.5 billion at end-April 2004. The Lima stock
exchange index surged by 75 percent during 2003, reflecting
higher mineral product prices. Peru's sovereign spread continues
to be among the lowest in the region.

Program summary

The objectives of the program for 2004-2006 are to maintain
macroeconomic stability, foster robust growth and employment,
further reduce vulnerabilities, and diminish poverty. The
program aims at enhancing the basis for strong economic growth,
which is projected to average about 4.5 percent a year during
2004-06. It focuses on the continued implementation of the
inflation-targeting framework and on fiscal consolidation, with
a view to lowering the debt-to-GDP ratio from about 47.5 percent
in 2003 to about 41 percent in 2006. Successful implementation
of the program will enhance the basis for defining Peru's exit
strategy from Fund supported programs.

The fiscal program is based on reducing the overall deficit of
the combined public sector from 1.7 percent of GDP in 2003 to
1.4 percent in 2004, and to 1 percent a year in 2005-06. Over
this period, about one third of the adjustment effort of the
central government is to be achieved through higher revenue, and
the remainder through a containment in current expenditure
growth.

Monetary policy will continue to be managed within the
inflation-targeting framework. While preserving its floating in
the exchange rate regime, the authorities intend to maintain a
solid cushion of foreign reserves to mitigate potential external
shocks and political uncertainties in the period up to the 2006
elections.

Boosting economic growth and employment creation depends
critically on the sustained implementation of a broad set of
reforms. The program includes growth enhancing reforms aimed at
strengthening the investment climate, including the
establishment of commercial courts to speed up contract
enforcement and improvements in the functioning of collateral
registries. To bolster infrastructure investment, the
authorities plan to grant operating concessions to the private
sector and enter into Public-Private Partnerships in a fiscally
prudent and transparent manner. Also, the authorities intend to
improve resource management in the public sector, modify public
pension regimes, reduce labor costs, and strengthen the legal
framework for decentralization. The program includes efforts
aimed at further strengthening the regulation and supervision of
financial intermediaries.

Peru joined the IMF on December 31, 1945, and its current quota
is SDR 638.4 million (about US$939 million). Its outstanding use
of IMF financing currently totals SDR 80.3 million (about US$118
million).

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF External Relations Department
          Public Affairs: 202-623-7300 - Fax: 202-623-6278
          Media Relations: 202-623-7100 - Fax: 202-623-6772



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

BWIA: Gives Shareholder Rights Offer for Additional Shares
----------------------------------------------------------
British West Indies Airways (BWIA), the national carrier of
Trinidad and Tobago, announced in a press advertisement
Wednesday that shareholders now have the opportunity to increase
their share in the airline, the Trinidad Guardian relates.

Shareholders are given a Rights Issue of 27 ordinary shares for
every one ordinary share held at an issue price of 20 cents a
share. BWIA said the issue will open on June 28th.

BWIA announced in April that the airline intended to issue a
rights issue to raise approximately US$40 million. The
announcement came just 10 days after Government decided to give
the airline a lifeline valued at the same amount.

Also during that month, Bourse Securities managing director
Subhas Ramkhelawan, and West Indies Stockbrokers Ltd CEO Peter
Clarke said Government would probably end up buying the new
shares as it was doubtful the carrier's other shareholders would
want to increase their shareholding in the troubled airline.

CONTACT:  BRITISH WEST INDIES AIRWAYS
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)



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

CANTV: Foreign Dividend Payments Set for Distribution
-----------------------------------------------------
Venezuela's biggest telephone company, CA Nacional Telefonos de
Venezuela (CANTV) is now ready to pay dividends on its American
Depositary Receipts after it gained approval from state-run
Cadivi currency agency to buy US$108.9 million at the official
exchange rate. CANTV said the dividends would be paid to
investors who held ADRs before April 13.

Venezuela introduced strict currency controls and a fixed
exchange rate in February last year to shore up the bolivar
currency and bolster reserves after months of political conflict
over the rule of leftist President Hugo Chavez. Private
companies must apply to CADIVI for access to dollars they need
for imports and foreign debt payments.

CONTACT:  Gregorio Tomassi
          CANTV Investor Relations
          011-58-212-500-1831
          FAX: 011-58-212-500-1828
          E-Mail: invest@cantv.com.ve




                            ***********


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.


* * * End of Transmission * * *