TCRLA_Public/040622.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

             Tuesday, June 22, 2004, Vol. 5, Issue 122

                            Headlines


A R G E N T I N A

AGENTES COMERCIALES: Claims Authentication Deadline Approaches
ALIMENTOS FARGO: Fitch Retains `D(arg)' Rating on $120M of Bonds
CAPEX: Bonds Retain Junk Ratings
COINTEL: Fitch Reaffirms `CCC(arg)' Rating on Bonds
COORDINADORA DE SALUD: Court Sets Assembly Date

CONDE CLASSIC: Enters Bankruptcy on Court Orders
CONSTRUCTORA GRAMUGLIA: Court Orders Liquidation
DISCO: Political, Legal Issues Hampering Sale to Cencosud
DISTRIBUIDORA KM. 32: Judge Approves Bankruptcy Petition
EDITORIAL PERFIL: $25M of Bonds Remain in Default

G. CACERES Y CIA: Reports Submission Schedule Set
GARDONE: Liquidates Assets to Pay Debts
HIDROELECTRICA PIEDRA: Fitch Assigns Junk Ratings to Bonds
MAZAL S.R.L.: Court Converts Bankruptcy to Reorganization
REFRIGERACION BIMA: Debt Payments Halted, Set To Reorganize

SEGURIDAD Y CUSTODIA: Seeks Court Authorization Reorganize
SUCESORES DE NATALIO: Court Grants Reorganization Request
THE WALL: Court Order Demands Liquidation
TRACK OIL: Liquidation Order Issued
TRANSENER: Fitch Maintains `D(arg)' Rating on $450M of Bonds

TRANSITO MENDOCINO: Prepares for Reorganization
TREVI: Court Assigns Trustee to Oversee Bankruptcy


B E L I Z E

* Moody's Places Belize Ratings on Possible Downgrade


B E R M U D A

GLOBAL CROSSING: Faces New Class Action Suit


B R A Z I L

AES SUL: Approaching Debt Agreement With Creditors
CSN: Wins Galvasud's Auction
EMBRATEL: CSFB Fund Buys 637.4M in Ordinary Shares
* IMF Completes Stand-By Arrangement Review; New Funds Follow


V E N E Z U E L A

PDVSA: Plans to Construct New Refineries in U.S.  
PDVSA: U.S. Reformulated Gasoline Shipment Passes QC
SIDOR: Masisa, FMO Sign Deal to Reactivate Posven


     - - - - - - - - - -


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

AGENTES COMERCIALES: Claims Authentication Deadline Approaches
--------------------------------------------------------------
The verification of claims for the Agentes Comerciales S.A.
bankruptcy will end on September 1, 2004 according to Infobae.
Creditors with claims against the bankrupt company must present
proof of the liabilities to Mr. Miguel Angel Tregob, the court-
appointed trustee, before the stated deadline.

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

CONTACT: Mr. Miguel Angel Tregob
         Lima 287
         Buenos Aires


ALIMENTOS FARGO: Fitch Retains `D(arg)' Rating on $120M of Bonds
----------------------------------------------------------------
Fitch Argentina Calificadora de Reisgo S.A. maintains a `D(arg)'
rating on some US$120 million of corporate bonds issued by local
company Compania de Alimentos Fargo S.A., the CNV reports.

The rating, which is assigned to financial commitments that are
currently in default, was given based on the Company's finances
as of March 31, 2004. The bonds, described as "Obligaciones
Negociables Simples," will mature on July 24, 2008.


CAPEX: Bonds Retain Junk Ratings
--------------------------------
The Comision Nacional Valores (CNV), Argentina's securities
regulator, reveals that a total of US$145 million in corporate
bonds issued by Capex S.A. remain in default.

Accordingly, Fitch Argentina Calificadora de Riesgo S.A. is
maintaining a `D(arg)' rating on US$40 million worth of bonds
described as "Obligaciones Negociables Simples" and on US$105
million worth of "Obligaciones Negociables Simples." The bond
issues mature on June 16, 2004 and December 23, 2004,
respectively.

A `D(arg)' rating is assigned to financial commitments that are
in default. Concurrently, Fitch is maintaining a `C(arg)' rating
on US$150 million worth of bonds. The bonds described as
"Obligaciones Negociables Simples" matures on January 1, 2005.

A `C(arg)' rating denotes an extremely weak credit risk relative
to other issues in Argentina. Capacity for meeting financial
commitments is solely reliant upon sustained, favorable business
or economic conditions.

Capex produces gas and generates electric power at the well head
in Neuquen province.

CONTACT:  Capex SA
          5/F DepartmentC
          948/950 Av Cordoba
          Buenos Aires
          Argentina
          Phone: +54 11 4322 4884
          Home Page: http://www.capex.com.ar
          Contact:
          Enrique Gotz, Chairman
          Dr. Alejandro Enrique Gotz, Vice Chairman


COINTEL: Fitch Reaffirms `CCC(arg)' Rating on Bonds
---------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. reaffirmed the
`CCC(arg)' rating on two corporate bond issues of Compania
Internacional de Telecomunicaciones (Cointel), the CNV reports.
The rating affected ARS175 million worth of bonds described as
"Clase B bajo el Programa de U$S 800 millones" and US$225
million worth of bonds described as "Clase A bajo el Programa de
U$S 800 millones." The maturity dates of the bonds were not
indicated.

A `CCC(arg)' rating is assigned to bonds which possess
significant risk of non-payment. Fitch took the action based on
Cointel's financial status as of March 31, 2004.


COORDINADORA DE SALUD: Court Sets Assembly Date
-----------------------------------------------
Creditors of Coordinadora de Salud S.A. (CO.DE.SA.) will ratify
the Company's settlement proposal during the informative
assembly scheduled on November 25, 2004, reports Infobae. The
Company filed for insolvency protection under the civil and
commercial tribunal of Tucuman after defaulting on its debt
payments.

CONTACT: Coordinadora de Salud S.A. (CO.DE.SA.)
         Tucuman


CONDE CLASSIC: Enters Bankruptcy on Court Orders
------------------------------------------------
Conde Classic S.R.L. enters bankruptcy protection after a Buenos
Aires court 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 Ms. Flora Pazos as
trustee. She will be verifying creditors' proofs of claim until
the end of the verification phase on August 31, 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 October 13, 2004 followed by the general report, which is due
on December 9, 2004.

CONTACT: Ms. Flora Pazos, Trustee
         Montevideo 527
         Buenos Aires


CONSTRUCTORA GRAMUGLIA: Court Orders Liquidation
------------------------------------------------
Constructora Gramuglia Hermanos S.A. prepares to wind-up its
operations following the bankruptcy pronouncement issued by a
Buenos Aires court. The declaration effectively prohibits the
Company from administering its assets, control of which will be
transferred to a court-appointed trustee.

Infobae reports that Mr. Jose Luis Abuchid will serve as trustee
for the case. He will be reviewing creditors' proofs of claim
until August 24, 2004. The verified claims will be the basis for
the individual reports to be presented for court approval on
October 6, 2004. Afterwards, the trustee will also submit a
general report on November 18, 2004.

CONTACT: Constructora Gramuglia Hermanos S.A.
         Tacuari 116
         Buenos Aires


DISCO: Political, Legal Issues Hampering Sale to Cencosud
---------------------------------------------------------
Dutch retailer Royal Ahold has admitted it's having trouble to
sell its Disco supermarket chain in Argentina. Ahold, which is
trying to get back on its feet after an accounting scandal,
still hopes it will manage to close the sale of Disco to Chile's
Cencosud this year.

During a conference call with investors regarding the US$484
loss registered in the first quarter of 2004, Hannu Ryoeppoenen,
Ahold's financial director, said that, while there is a strong
interest in the assets of the Company in the USA and Spain, the
sale of Disco is more difficult due to Argentina's political and
legal issues.

"We expect antitrust authorities to make a decision by the end
of summer [in the northern hemisphere] and are moving towards a
final agreement," the executive pointed out. "We expect to close
an agreement this year, although we are not absolutely certain,"
Ryoeppoenen added.

Ahold subscribed a preliminary accord with Cencosud to sell its
assets in Argentina. The Chilean group offered to pay US$315
million, in alliance with Capital Internacional, AIG Capital
Partners and the International Finance Corporation.

However, the deal is in stand by waiting for approval by
antitrust authorities and the resolution of a claim against the
sale in the province of Mendoza.


DISTRIBUIDORA KM. 32: Judge Approves Bankruptcy Petition
--------------------------------------------------------
Lubricant retailer Distribuidora KM. 32 S.A. was declared
bankrupt after Judge Garibotto of Buenos Aires Court No. 2
endorsed Texaco Petrolera Argentina S.A.'S petition to liquidate
the Company. Argentine daily La Nacion reports that Texaco
Petrolera has claims totaling US$194,585.24 against the Company.

The court assigned Mr. Raul Trejo to supervise the liquidation
process as Trustee. He will validate creditors' proofs of claim
until August 31, 2004.

CONTACT: Distribuidora Km. 32 S.A.
         Jose Ingenieros 2891
         Buenos Aires

         Mr. Raul Trejo, Trustee
         Montevideo 205
         Buenos Aires
  

EDITORIAL PERFIL: $25M of Bonds Remain in Default
-------------------------------------------------
Some US$25 million worth of corporate bonds issued by Editorial
Perfil S.A. remain in default, says the CNV. Fitch Argentina
Calificadora de Riesgo reaffirmed the `D(arg)' rating assigned
to bonds described as "Primera serie de Obligaciones
Negociables." The maturity of such issue was not disclosed.
The rating action is based on the Company's finances as of March
31, 2004.


G. CACERES Y CIA: Reports Submission Schedule Set
-------------------------------------------------
Mr. Gustavo Vignale, the trustee assigned to supervise the
liquidation of G. Caceres y Cia S.R.L., will submit the
validated individual claims for court approval on September 24,
2004. These reports explain the basis for the accepted and
rejected claims. The trustee will also submit a general report
on November 8, 2004.

CONTACT: Mr. Gustavo Vignale
         Vuelta de Obligado 2717
         Buenos Aires


GARDONE: Liquidates Assets to Pay Debts
---------------------------------------
Buenos Aires based Gardone S.A. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial tribunal that the Company is bankrupt, reports
Infobae. The bankruptcy ruling places the Company under the
supervision of court-appointed trustee, Mr. Carlos Alberto
Lausi.

The trustee will verify creditors' proofs of claim until
September 9, 2004. At the end of the bankruptcy process, all
company assets will be disposed in favor of its creditors.

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


HIDROELECTRICA PIEDRA: Fitch Assigns Junk Ratings to Bonds
----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a `D(arg)'
rating to various corporate bonds issued by Hidroelectrica
Piedra del Aguila S.A., the CNV reveals.

The rating affects:

- US$35-million issue described as "Clase V subordinada dentro
del Programa de U$S 300 millones;"

- US$62.5-million issue described as "Clase IV dentro del
Programa de U$S 300 millones;"

- US$62.5-million issue described as "Clase III dentro del
Programa de U$S 300 millones;"

- US$97.3-million issue described as "Clase II dentro del
Programa de U$S 300 millones;"

- US$300-million issue described as "Obligaciones Negociables
Simples"

- US$97.3-million issue described as "Clase I dentro del
Programa de U$S 300 millones"

Meanwhile, Fitch assigned a `B(arg)' rating to ARS64.5 million
worth of corporate bonds issued by Hidroelectrica Piedra del
Aguila. The bonds were described as "Obligaciones Negociables
Serie A."

The ratings agency said a `B(arg)' rating means that the bond
issue has a significantly weak credit risk relative to other
issues in Argentina. Financial commitments are being met but a
limited margin of safety remains and capacity for timely
payments is contingent upon a sustained favorable business and
economic condition.

The maturity dates of all the bond issues mentioned above were
not disclosed. Fitch took the rating actions based on the
Company's financial status as of March 31, 2004.

Hidroelectrica Piedra del Aguila SA recently struck an out-of-
court-agreement (APE) with its creditors to restructure about
US$268 million in debt.


MAZAL S.R.L.: Court Converts Bankruptcy to Reorganization
---------------------------------------------------------
The Tucuman civil and commercial tribunal has rescinded the
bankruptcy order placed against Mazal S.R.L., states Infobae.
Instead of a liquidation, the Company will proceed with
reorganization under the supervision of Mr. Racedo Guillermo
Gotardo, the court-appointed trustee.

The report adds that the trustee will receive creditors' claims
for verification until June 22, 2004. The trustee is also
required to prepare individual reports after the verification
process is completed, and have them ready by August 18, 2004. A
general report on the bankruptcy process is expected on
September 30, 2004.

CONTACT: Mazal S.R.L.
         San Lorenzo 939
         Tucuman

         Mr. Racedo Guillermo Gotardo, Trustee
         Lamadrid 532
         Tucuman


REFRIGERACION BIMA: Debt Payments Halted, Set To Reorganize
-----------------------------------------------------------
Judge Herrera of Buenos Aires Court No. 3 is currently reviewing
the merits of a petition to reorganize submitted by
Refrigeracion Bima S.A. La Nacion reports that the Company filed
the petition following cessation of debt payments since April 30
this year. Reorganization will allow the Company to avoid
bankruptcy by negotiating a settlement with its creditors.

Clerk No. 6, Dr. Gutierrez Huertas, assists the court on the
Company's case.

CONTACT: Refrigeracion Bima S.A.
         Tucuman 971
         Buenos Aires


SEGURIDAD Y CUSTODIA: Seeks Court Authorization Reorganize
----------------------------------------------------------
Seguridad y Custodia S.A., a security firm operating in Buenos
Aires, has requested for reorganization after failing to pay its
liabilities since March 31, 2004.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Judge Gutierrez Cabello of Court No.
32. Dr. Giardinieri, Clerk of Court No. 14, assists on this
case.

CONTACT:  Seguridad y Custodia S.A.
          Jose Maria Guttierez 3989


SUCESORES DE NATALIO: Court Grants Reorganization Request
---------------------------------------------------------
Sucesores de Natalio Iglesias S.H., a company operating in
Salta, begins reorganization after a local court 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.  

Argentine news source Infobae announces that creditors with
claims against Sucesores de Natalio must present proofs of the
Company's indebtedness to a court trustee before August 5, 2004.
These claims will constitute the individual reports due for
court submission on October 25, 2004.

The court also requires the trustee to present an audit of the
Company's accounting and business records through a general
report, which will be submitted on December 9, 2004.

The Informative assembly, the final phase of the reorganization,
is scheduled on June 9 next year.

CONTACT: Sucesores de Natalio Iglesias S.H.
         San Jose de Metan
         Salta


THE WALL: Court Order Demands Liquidation
-----------------------------------------
The Wall S.A., a Buenos Aires company engaged in distributing
photographic products, entered bankruptcy after Judge Herrera of
the city's Court No. 3 approved a bankruptcy motion filed by Le
Musique S.R.L. According to La Nacion, the Company's failure to
pay US$14,046.13 in debt prompted the creditor to file the
petition.

Working with Dr. Gutierrez Huertas, the city's Clerk No. 6, the
court appointed Ms. Carina Bianchi 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 claim to the trustee before September 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: The Wall S.A.
         Avenida Rivadavia 11446
         Buenos Aires

         Ms. Carina Bianchi, Trustee
         Paraguay 792
         Buenos Aires


TRACK OIL: Liquidation Order Issued
-----------------------------------
A Buenos Aires court ordered the liquidation of Track Oil S.A.
after the Company defaulted on its debt obligations, Infobae
reveals. The liquidation pronouncement will place the Company's
affairs as well as its assets under the control of Mr. Daniel
Alberto del Castillo, the court-appointed trustee.

Mr. Del Castillo will verify creditors' proofs of claim until
August 24, 2004. The verified claims will serve as basis for the
individual reports to be submitted in court on October 5, 2004.
The submission of the general report follows on November 17,
2004.

CONTACT: Mr. Daniel Alberto del Castillo, Trustee
         Presidente Peron 1558
         Buenos Aires


TRANSENER: Fitch Maintains `D(arg)' Rating on $450M of Bonds
------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a `D(arg)'
rating on US$450 million worth of corporate bonds issued by the
ailing Argentine high-voltage power transporter Compania de
Transporte de Energia Electrica de Alta Tension Transener SA.

According to the CNV, the action affected bonds, which were
described as "Programa Global de Obligaciones Negociables
simples no convertibles en acciones" and matured in March last
year.

Fitch took the action based on the Company's financial health as
of March 31, 2004.

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


TRANSITO MENDOCINO: Prepares for Reorganization
-----------------------------------------------
The civil and commercial tribunal of Mendoza issued a resolution
opening the reorganization of Transito Mendocino S.A. This
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to prevent the
liquidation of the Company.

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

Infobae reports that Mr. Manuel Torrez will serve as trustee
during the course of the reorganization. He will be validating
creditors' proofs of claim until August 18,2004. Afterwards, the
results of the verification will be presented in court as
individual reports on September 29, 2004.

The trustee is also obligated to give the court a general report
of the case on November 11, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on May
18, 2005.

CONTACT: Transito Mendocino S.A.
         Avda Espejo 183
         Mendoza

         Mr. Manuel Torrez
         Rio Negro 70
         Mendoza


TREVI: Court Assigns Trustee to Oversee Bankruptcy
--------------------------------------------------
Judge Uzal of Buenos Aires Court No. 26 appointed Mr. Ricardo
Bonifatti to supervise the liquidation of Trevi S.A.I.C. y F. as
trustee. Creditors with claims against the Company must submit
proof of the indebtedness to the trustee for verification before
September 3, 2004. Failure to do so will mean a disqualification
from the payments that will be made after the Company's assets
are liquidated.

Court records show that the Company has assets amounting to
US$40,000 and liabilities totaling US$152,481.41. Dr.
Dermardirossian, Clerk No. 51, assists the court in the
bankruptcy proceedings.  

CONTACT: Trevi S.A.I.C. y F.
         Jose Gervasio de Artigas 5137
         Buenos Aires

         Mr. Ricardo Bonifatti, Trustee
         Avenida Corrientes 123
         Buenos Aires



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B E L I Z E
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* Moody's Places Belize Ratings on Possible Downgrade
-----------------------------------------------------
Moody's placed the Republic of Belize's ratings on review for a
possible downgrade. The ratings affected are:

- Ba3 foreign-currency ceiling for bonds and notes
- B1 foreign-currency ceiling for bank deposits
- Ba2 local-currency government bond rating

The rating agency explained that the review was prompted by
increasing concerns about an economic policy framework that does
not appear at present to be consistent with conditions required
to assure debt sustainability over time.

Moody's notes that Belize's indebtedness has continued to
increase and has led to a relative deterioration in Belize's
credit indicators despite the presence of robust economic growth
and favorable prospects in the tourism sector.



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B E R M U D A
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GLOBAL CROSSING: Faces New Class Action Suit
--------------------------------------------
A securities class action lawsuit was commenced on behalf of all
persons who acquired securities of Global Crossing Ltd. ("Global
Crossing" or the "Company")(NasdaqNM:GLBCE - News) between
December 9, 2003 and April 26, 2004, inclusive (the "Class
Period"). The case is pending in the United States District
Court for the Southern District of New York, against Global
Crossing, John Legere, and Daniel O'Brien.

The Complaint charges that Global Crossing and certain officers
and directors violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations
to the market during the Class Period, thereby artificially
inflating the price of Global Crossing's securities.
Specifically, the Complaint alleges that throughout the Class
Period, Global Crossing reported positive results in publicly
disseminated press releases and SEC filings. Defendants,
however, knew or recklessly disregarded that: (i) Global
Crossing lacked adequate internal controls, (ii) Global
Crossing's costs of access were materially understated in Global
Crossing's financial statements, and, as a result, (iii) Global
Crossing's reported earnings were at all relevant times,
artificially inflated.

The truth was revealed on April 27, 2004, minutes after the
market opened, when defendants disclosed that Global Crossing
would restate its previously issued financial statements as far
back as fiscal 2002 because defendants had understated the
accrued cost of access liability by $50 million to $80 million.
The Company stated that the understatement of its cost of access
liability was due to "incorrect estimates of cost of access
expenses and the failure to reconcile these expenses to vendor
invoices," that there were material weaknesses in its internal
controls, and that investors should disregard the Company's
financial statements for fiscal 2002 and 2003, including interim
periods. The Company further stated that investors should
disregard defendants' previous guidance with respect to Global
Crossing's 2004 results. In reaction to this news, the price of
Global Crossing common stock fell $5.00, or 27.4%, from its
previous day's closing price of $18.20 per share, to close on
April 27, 2004 at $13.20.

Plaintiff seeks to recover damages on behalf of all those who
purchased or otherwise acquired Global Crossing securities
during the Class Period. If you purchased or otherwise acquired
Global Crossing securities during the Class Period, and either
lost money on the transaction or still hold the securities, you
may wish to join in the action to serve as lead plaintiff. In
order to do so, you must meet certain requirements set forth in
the applicable law and file appropriate papers no later than
June 29, 2004.

A lead plaintiff is a representative party that acts on behalf
of other class members in directing the litigation. In order to
be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as "lead plaintiff." Your ability to share in
any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. You may retain Bernstein
Liebhard & Lifshitz, LLP, or other counsel of your choice, to
serve as your counsel in this action.

CONTACT: BERNSTEIN LIEBHARD & LIFSHITZ, LLP
         Shareholder Relations Department
         (800) 217-1522
         (212) 779-1414
         GBLCE@bernlieb.com

         GLOBAL CROSSING LTD
         45 Reid Street, Wessex House
         Hamilton HM 12,  
         Phone: (441) 296-8600
         Fax: (441) 296-8606
         Email: investors@globalcrossing.com
         Web Site: www.globalcrossing.com



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

AES SUL: Approaching Debt Agreement With Creditors
--------------------------------------------------
AES Sul Distribuidora Gaucha de Energia S.A., a subsidiary of
U.S. energy group AES Corp. (NYSE:AES) in Brazil, is close to
wrapping up a US$300-million debt-restructuring agreement with a
group of creditors, reports Dow Jones Newswires. The Bank of
America and Unibanco (UBB) are among AES Sul's debt holders.

The agreement will allow the power distributor to be
incorporated into Brasiliana Energia, a new holding created
under a debt rescheduling agreement between AES Corp. and
Brazil's Development Bank BNDES, announced late last year.

AES Sul serves over 999,000 clients in 99.5 thousand square
kilometers, including 116 municipalities in the central area of
Rio Grande do Sul, the southernmost state in Brazil.


CSN: Wins Galvasud's Auction
----------------------------
Companhia Siderurgica Nacional (CSN) (BOVESPA: CSNA3) (NYSE:
SID) announced Friday that GalvaSud became its whole owned
subsidiary in an auction in New York. The Company already had
51% of GalvaSud and acquired the remaining 49% from the German
ThyssenKrupp Stahl (TKS). The price of this acquisition was R$89
million plus the assumption of approximately R$405 million of
debt, of which 51% were already consolidated in our BR GAAP
balance sheet.

CSN considers the investment an unique opportunity to create
value for its shareholders by making GalvaSud operate to full
production capacity and, consequently, by supplying the
automotive industry and making high value-added products, which
will also be available to the domestic and international
markets.

"We will expand and fortify our high value-added product
portfolio with the GalvaSud's state-of-the-art production lines,
and we will benefit from a larger volume of good quality
galvanized steel which may also represent a strategic move
towards certain international markets", said Vasco Dias,
Commercial Executive Director of CSN.

CSN remains the leader of the Brazilian galvanized steel segment
with annual production capacity of 1.5 million tons, including
the lines of Usina Presidente Vargas in Volta Redonda (RJ), of
CSN Paran  in Arauc ria (PR), and of GalvaSud in Porto Real
(RJ).

GalvaSud is a rolling facility incorporated in May 26, 1998, by
CSN (51%) and TKS (49%), representing investments of US$ 236
million. The company is specialized in the production of
galvanized coils and the processing of flat steels, primarily
supplying the automotive industry. Located in Porto Real, south
of the State of Rio de Janeiro, GalvaSud started up operations
in December 2000 and has the following production lines:

-  Hot Dip Galvanized Line with production capacity of 350
thousand tons/year;

-  Cut Services Center for flat steels benefiting from
production capacity of 160 thousand tons/year;

-  Laser Welding Center with production capacity of 8 thousand
tons/year.

Companhia Siderurgica Nacional, located in the state of Rio de
Janeiro, Brazil, is a steel complex integrated by investments in
infrastructure and logistics, that combines in its operation
captive mines, an integrated steel mill, service centers, ports
and railways. With a total annual production capacity of
5,800,000 tonnes of crude steel and gross revenues of R$8.3
billion reported in 2003, CSN is also the only tin-plate
producer in Brazil and one of the five largest tin-plate
producers worldwide.  

CONTACT: CSN
         Luciana Paulo Ferreira, Investor Relations
         Tel: 5511 3049-7591
         E-mail: luferreira@csn.com.br
         Web site: http://www.csn.com.br

  
EMBRATEL: CSFB Fund Buys 637.4M in Ordinary Shares
--------------------------------------------------
Brazilian telecoms operator Embratel Participacoes revealed that
a Netherlands-based fund managed by investment bank Credit
Suisse First Boston (CSFB) purchased 637.4 million ordinary
shares in the Company, relates Business News Americas.

The fund known as Brazilian Securities (Netherlands) now owns
5.34% of ordinary shares in Embratel. But the purchase,
according to the fund, is not part of any shareholders'
agreement to run Embratel.

Mexican incumbent telco Telmex is awaiting regulatory approval
to take control of Embratel, when it is expected to launch a
tender offer for outstanding shares.

Telmex is controlled by Mexican billionaire Carlos Slim.

CONTACT:  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


* IMF Completes Stand-By Arrangement Review; New Funds Follow
-------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
finalized Friday the seventh review of Brazil's performance
under an SDR 27.4 billion (about US$ 40.1 billion) Stand-By
Arrangement.

Completion of the seventh review enables the release of a
further amount equivalent to SDR 911 million (about US$1.3
billion) to Brazil. However, the Brazilian authorities have
indicated that they do not intend to make any further drawings
since they are treating the current arrangement as
precautionary. Total disbursements under the Stand-By have
amounted to SDR 17.2 billion (about US$25.2 billion).

Following the Executive Board's discussion of Brazil's economic
performance, Anne Krueger, First Deputy Managing Director and
Acting Chair, made the following statement:

"Brazil's performance under the Stand-By Arrangement continues
to be strong. All performance criteria for the seventh review
were met and the structural benchmarks have been completed. The
Brazilian authorities continue to treat the program as
precautionary.

"After two consecutive quarters with annualized growth rates of
around six percent, the recovery in economic activity is now
firmly established. Export performance continues to be
impressive, and domestic demand is gaining strength as well.
Real wages and private consumption are picking up, broadening
the base of the recovery.

"The government's sound policies have contributed to increase
international reserves, helped improve the composition of public
debt, and fostered a swing in the external current account.
These accomplishments are helping to limit the impact of
increased uncertainty and recent volatility in international
financial markets on Brazil.

"The conduct of fiscal and monetary policy remains commendable.
The government's commitment to prudent fiscal policy will help
ensure that the debt-to-GDP ratio stays on a declining path.
Within this fiscal framework, the government's focus on
modernizing Brazil's infrastructure and implementing a prudent
mechanism for private-public partnerships-which preserves debt
sustainability-should help increase growth. Brazil's
participation with the Fund on a pilot program on public
investment will also help define policies in this area. The
conduct of monetary policy has been appropriately cautious in
light of recent uncertainties, solidifying the credibility of
the monetary authorities and maintaining inflation on a path
toward the government's goals.

"Further structural reforms will be important to sustain growth
and increase Brazil's growth potential. The government's efforts
to foster financial intermediation, and improve the business
environment are positive steps in this regard. Initiatives to
reduce the degree of informality will also help promoting
productivity growth. Such policies, combined with an expansion
of targeted assistance to alleviate poverty, will help pave the
way for an expansion of economic opportunities for millions of
Brazilians, "Ms. Krueger said.

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



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

PDVSA: Plans to Construct New Refineries in U.S.  
------------------------------------------------
Officers of Venezuela's state-controlled oil company, PDVSA, are
studying the viability of building two new refineries in the
United States through its subsidiary Citgo Petroleum Corp,
reports Bloomberg News. This development comes after the U.S.
congress approved a bill allowing Energy Secretary Spencer
Abraham to facilitate the approval of permits for new refineries
to counter the continuing surge in oil prices that have been
partly blamed on inadequate refining capacity. Gas prices have
spiked 34% this year or an average of US$2 per gallon.      

Citgo chief executive officer Luis E. Marin commented during a
Houston energy conference that "there is no cushion for any
problems at refineries" because of higher exporting costs for
gasoline to the U.S. coupled with low supplies and a record
demand.

Citgo Petroleum Corp. is PDVSA's U.S. refining and fuel
retailing unit. The company owns three oil refineries in the
country and has a 41% stake on a fourth.  


PDVSA: U.S. Reformulated Gasoline Shipment Passes QC
----------------------------------------------------
PDVSA's recent U.S. shipment of reformulated gasoline (RFG) met
the country's strict environmental standards, says Mr. Ivan
Hernandez, the company's refining vice-president, in a Business
News Americas report. He adds, "Because of this we can say
PDVSA's national refining business is giving optimum results."

The company is currently processing 1.19 million barrels of
crude (mb/d) daily. The Paraguana refinery, which has a capacity
of 925,000b/d, is processing 817,000b/d. After repairs are
completed at the El Palito refinery, it will produce 18,000b/d
of alkylate.


SIDOR: Masisa, FMO Sign Deal to Reactivate Posven
-------------------------------------------------
Venezuelan state-owned iron producer Ferrominera Orinoco (FMO)
revealed that it has signed an accord with Materiales
Siderurgicos (Masisa) to revive the Posven pre-reduced iron
plant, relates Business News Americas. The Puerto Ordaz plant,
which was liquidated in December 2002, will be reactivated in
the fourth quarter of this year. The plant has iron briquette
production capacity of 1.5Mt/y.

Masisa was created in April 2004 by Venezuelan steelmaker Sidor
and the Luxembourg-based Tenaris steel pipe group to purchase
Posven, "but it is still not clear who will be in charge of
[Posven] operations," an FMO spokesperson said.

The agreement is extremely important for Sidor because it will
allow the company to supply the briquettes necessary for its
steel mill to increase production by 15%.

Sidor, also based in Puerto Ordaz, is Venezuela's largest
steelmaker with current installed capacity of some 3Mt.



                            ***********


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