TCRLA_Public/040625.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 25, 2004, Vol. 5, Issue 125

                            Headlines



A R G E N T I N A

AGRITECH INVERSORA: 'D' Rating on Bonds Remains Intact
AGUAS ARGENTINAS: Government Contract Up for Review
BANCO BISEL: Moody's Latin America Leaves Bonds Unchanged
COPEMA S.R.L.: Court Declares Company Bankrupt
CORASA: Argentina Defends Move to Transfer Postal Assets

CRM: Moody's Leaves Default Ratings on Bonds Unchanged
CURTIEMBRE LA MARIA: Bankruptcy Initiated by Court Order
DANIEL BALDINI AUTOMOTORES: Liquidation Looms In Bankruptcy
EMPRENDIMIENTOS INMOB.: Moody's Reaffirms Bonds' Default Rating
EUROMAYOR: $10M of Bonds Maintain 'C' Rating

GAS TRELEW: Schedule of Reports Submission Set
EL LUCERO FABRICA: Gets Court Liquidation Order
IMAGEN SATELITAL: Bonds Still In Default
LAKE TAHOE: Court Rules on Bankruptcy Petition
LETER S.A.: Liquidates Assets to Pay Debts

MARCOS MARTINI S.A.: Gets Court Authorization to Reorganize
MARMOLERIA SIERRA CHICA: Reorganize Official on Court Ruling
PAN AMERICAN ENERGY: Outlines Increased Gas Exploration in 2004
PARILLA DON ZOILO: Claims Review Deadline Approaches
PRIDE INTERNATIONAL: Fitch Assigns 'B+' To Sr Unsecured Notes

SALPE S.R.L.: Court Authorizes Reorganization
TARJETA NARANJA: $200M of Bonds Retain 'D' Rating
TELEFONICA DE ARGENTINA: Concession Talks Moving Forward
TOLDOS NAZCA: Enters Bankruptcy Protection, Liquidation Follows
TOP BOARD: Court Rules in Favor of Creditor's Bankruptcy Motion

TRENES METROPOLITANOS: Stripped of Railway Contract


B R A Z I L

AES TIETE: Fitch Affirms Certificates at 'B-'
CESP: Outlines Investment, Debt Payment Prioritization Plans
EMBRATEL: Telmex Appoints President, CEO
PARMALAT FINANZIARIA: Posts Period Ending May 31, 2004 Results


D O M I N I C A N   R E P U B L I C

AES EDE-ESTE: Contracts Unauthorized $50M Loan, Audit Shows


G U Y A N A

* Guyana Secures US$22.5 Mln Loan From IDB


M E X I C O

GRUPO MEXICO: S&P Puts 'B-' Rating On CreditWatch Positive
GRUPO MEXICO EXPORT: Watch Positive Shift on S&P Ratings
GRUPO TMM: Begins Restructuring Plan's Next Phase
PARMALAT MEXICO: Milk Company Seeks to Acquire Assets
SATMEX: Scrambles to Negotiate $205M Loan With Creditors

VITRO: Contemplates $150M Private Bond Placement


P E R U

PANAMERICANA: Delgado Parker Secures Control of Network


T R I N I D A D   &   T O B A G O

CDC: Defends Lock-Out Action in Court Hearing


     - - - - - - - - - -

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

AGRITECH INVERSORA: 'D' Rating on Bonds Remains Intact
------------------------------------------------------
Evaluadora Latinoamericana S.A. Calificadora de Riesgo maintains
a 'D' rating on ARS4.5 million worth of corporate bonds issued
by Agritech Inversora S.A., according to Argentina's securities
regulator, the Comision Nacional de Valores (CNV).

The rating, which was given based on the Company's financial
status as of March 31, 2004, affected bonds described as
"Primera Serie de obligaciones negociables." The bonds will
mature on Oct. 5, 2007.

A 'D' rating is issued to bonds that are in default, said the
ratings agency.


AGUAS ARGENTINAS: Government Contract Up for Review
---------------------------------------------------
The transitory contract renegotiation agreement entered by water
utility Aguas Argentinas and the federal government of Argentina
in May will undergo scrutiny from a bicameral committee created
by federal congress. Business News Americas says that the
committee, known as "Comision bicameral de Seguimiento de las
Facultades Delegadas al Ejecutivo por la ley de Emergencia
Económica", will take a month to prepare and present its report.
Both houses of congress will also need another month to discuss
the findings after the document is submitted.

Among the contract provisions up for review by the committee is
the ARS242 million (US$82.6 million) infrastructure and service
improvement budget that Aguas has allocated for this year.

Aguas Argentinas won its 30-year operating concession in 1993.
The company supplies water to 11.5 million residents as well as
sewerage service to 7.5 million residents in Buenos Aires.


BANCO BISEL: Moody's Latin America Leaves Bonds Unchanged
---------------------------------------------------------
The National Securities Commission of Argentina relates that the
local branch of Moody's Ratings Agency maintains a 'D' rating on
various corporate bonds issued by local bank, Banco Bisel S.A.
The rating, which denotes payment default, pertains to the
following bonds:

- US$54 million worth of "Obligaciones Negociables Subordinadas"
classified under "Series and/or Class." The bonds matured on
July 20, 2000.

- US$100 million worth of "Programa Global de Obligaciones
Negociables" classified under "Program." These bonds also
matured on July 20, 2000.

- US$300 million worth of "Programa de Emision de Titulos de
Deuda a Mediano Plazo" classified under "Program." These bonds
matured on July 20, 2000.

- US$200 million worth of "Programa Global de Emision de
Obligaciones" classified under "Program." The maturity date of
the bonds was not indicated.

The Company's financial status as of the end of December 2003
determined the ratings given by Moody's.

CONTACT:  Banco Bisel S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Argentina
          Phone: 0341-4200300
          Home Page: http://www.bancobisel.com.ar/
          Contact:
          Guillermo Harteneck, President
          Jean Luc Perron, Vice President
          Bernard Brousse, Vice President


COPEMA S.R.L.: Court Declares Company Bankrupt
----------------------------------------------
Copema S.R.L. enters bankruptcy protection after a local court
in Buenos Aires issued a liquidation order against the Company,
says Infobae. The court assigned Mr. Juan Jose Roberto Esturo as
trustee for the case. He will be supervising the liquidation
proceedings beginning with the verification of creditor's
claims, which is ongoing until August 11, 2004.

Analyzing these claims is important because the outcome of the
process will determine the amount each creditor will get after
all the assets of the Company are liquidated.

CONTACT: Mr. Juan Jose Roberto Esturo, Trustee
         Reconquista 336
         Buenos Aires


CORASA: Argentina Defends Move to Transfer Postal Assets
--------------------------------------------------------
The Argentine government said Wednesday that its decision to
transfer control of the country's postal assets to a new state-
owned company is constitutional. The comment came after Correo
Argentino SA (CASA), the company that until last year held the
private concession, filed a suit against the State claiming that
a decree issued earlier this month, which creates Correo
Official de la Republica Argentina SA and hands over CASA's
assets to the new company, breaches constitutionally protected
property rights. According to Planning Minister Julio De Vido,
the government's move was completely justified.

"The fact that Mr. (Francisco) Macri presents a lawsuit does not
mean that the bases on which we decided to rescind the contract
of Correo are not legally solid and judicially impeccable. Mr.
Macri can seek his rights in any way he wishes. The Argentine
state can also seek its own corresponding (rights)," he said.

Correo Argentino became the world's first fully privatized
postal service in 1997. It was owned by Macri's Sideco Americana
(SDA.YY) and other investors including Grupo Financiero Galicia
SA (GGAL). The postal concession is one of a string of contract
recessions ordered by the Kirchner government since it took
office last May.


CRM: Moody's Leaves Default Ratings on Bonds Unchanged
------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A., maintains a
'D' rating on a total of US$350 million worth of corporate bonds
issued by Compania de Radiocomunicaciones Moviles S.A. (CRM),
the CNV says on its Web site.

The Company's financial health as of March 31, 2004 determined
the rating, which denotes a payment default.

The CNV described the affected bonds as "Programa Global de Ons
simpleas, autorizado por AGE de fecha 26.6.97 y 23.9.97". These
bonds, which are classified under "Program", matured in March
2003.


CURTIEMBRE LA MARIA: Bankruptcy Initiated by Court Order
--------------------------------------------------------
The civil and commercial tribunal of Lomas de Zamora declared
Curtiembre La Maria bankrupt after the Company defaulted on its
debt payments, reports Argentine news source Infobae. The
bankruptcy order effectively places the company's affairs as
well as its assets under the control of court-appointed trustee,
Mr. Sergio Omar Barragan.

As the trustee, Mr. Barragan is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until June 25, 2004.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on August 24, 2004. A general report will
also be submitted on October 7, 2004.

CONTACT: Curtiembre La Maria S.R.L.
         Florida 2254
         Valentin Alsina Partido de Lanus
         Lomas de Zamora

         Mr. Sergio Omar Barragan, Trustee
         Rodriguez 296
         Banfield
         Lomas de Zamora


DANIEL BALDINI AUTOMOTORES: Liquidation Looms In Bankruptcy
-----------------------------------------------------------
Daniel Baldini Automotores S.A. is now "Quiebra" - meaning
bankrupt, says Infobae. A Lomas de Zamora court decreed the
company's bankruptcy and appointed Jorge R. Caputo as trustee
for the Company.

Mr. Caputo will be tasked with reviewing creditors' claims
against the company as well as preparing the individual and the
general reports concerning the case.

CONTACT: Daniel Baldini Automotores S.A.
         Avda Eva Peron 3610
         Lanus Este
         Lomas de Zamora

         Mr. Jorge R. Caputo, Trustee
         Belgrano 98
         Lomas de Zamora


EMPRENDIMIENTOS INMOB.: Moody's Reaffirms Bonds' Default Rating
---------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo reaffirmed the `D'
rating of US$1.65 million worth of corporate bonds issued by
Emprendimientos Inmob. y Financieros S.A., formerly ECIPSA.

The rating affected bonds described as "Obligaciones Negociables
Clase B," says the CNV, without revealing the bonds' maturity
date. The issued rating was based on the Company's finances as
of April 30, 2004.


EUROMAYOR: $10M of Bonds Maintain 'C' Rating
--------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. reaffirms the
'C' rating on US$10 million worth of bonds issued by Euromayor
S.A. de Inversiones, the CNV reports. The rating issued was
based on the Company's financial situation as of March 31, 2004.

The bonds affected are described as "Primera Serie por 10
milliones de US$ dentro de un Programa Global," and matured in
April 28, 2003. A 'C' rating is assigned to financial
obligations that have a risk of nonpayment.


GAS TRELEW: Schedule of Reports Submission Set
----------------------------------------------
Accounting firm Estudio Rodriguez, Martorelli - Demarchi & Asoc,
the trustee assigned to supervise the Gas Trelew S.A. insolvency
case, will submit the validated individual claims for court
approval on November 22, 2004. These reports explain the basis
for the accepted and rejected claims. The firm will also submit
a general report of the case on February 2, 2005.

Infobae reports that the Buenos Aires court handling the case
has scheduled the Company's informative assembly on June 30,
2005.

CONTACT: CONTACT: Gas Trelew S.A.
         Cerrito 146
         Parque Industrial Trelew
         Chubut

         Estudio Rodr¡guez Martorelli, Demarchi y Asociados
         Trustee
         Sarmiento 1452
         Chubut


EL LUCERO FABRICA: Gets Court Liquidation Order
-----------------------------------------------
Buenos Aires Court No. 3 declared local company El Lucero
Fabrica de Manijas S.R.L. bankrupt, relates La Nacion. The
liquidation order was issued upon the petition of Union Obreros
y Empleados Plasticados for debts totaling US$15,608.88.

The troubled plastic factory will undergo the bankruptcy process
with Ms. Alicia Kurlat as its trustee. Creditors are required to
present their proofs of claim to the trustee for verification
before August 17, 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.

Clerk No. 35., Dr. Alconada, assists the court on the case.

CONTACT:  El Lucero Fabrica de Manijas S.R.L.
          Pasaje Francisco Lopez Merino 3945
          Buenos Aires

          Ms. Alicia Kurlat, Trustee
          Carlos Pellegrini 1079
          Buenos Aires


IMAGEN SATELITAL: Bonds Still In Default
----------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on US$80 million worth of corporate bonds issued by
Argentine company Imagen Satelital S.A., the CNV relates. The
rating issued applies to bonds called "obligaciones negociables"
which will expire on May 2, 2005.

The Company's financial health as of March 31, 2004 determined
the action taken by Moody's.


LAKE TAHOE: Court Rules on Bankruptcy Petition
----------------------------------------------
The Buenos Aires civil and commercial tribunal ordered the
liquidation of Lake Tahoe S.A. after the Company defaulted on
its obligations, Infobae reveals. The liquidation pronouncement
effectively places the Company's affairs as well as its assets
under the control of Mr. Gustavo G. Vignale, the court-appointed
trustee.

Mr. Vignale will verify creditors' proofs of claim until August
23, 2004. The verified claims will serve as basis for the
individual reports to be submitted in court on October 4, 2004.
The submission of the general report follows on November 16,
2004.

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


LETER S.A.: Liquidates Assets to Pay Debts
------------------------------------------
Buenos Aires-based Leter 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, Ms. Analia Ostojich. The trustee will
verify creditors' proofs of claim until August 31, 2004.

Following verification, the claims will be presented in court as
individual reports on October 13, 2004. Ms. Ostojich 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 24, 2004.

The bankruptcy process will end with the disposal company assets
to pay its creditors.

CONTACT: Leter S.A.
         Avda Corrientes 4566
         Buenos Aires

         Ms. Analia Ostojich, Trustee
         Quirno 962
         Buenos Aires


MARCOS MARTINI S.A.: Gets Court Authorization to Reorganize
-----------------------------------------------------------
Marcos Martini S.A. will begin reorganization following the
approval of its petition by the civil and commercial tribunal of
Moron. The opening of the reorganization will allow the Company
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.

Accounting firm Estudio Fernandez, Miro y Dazza will oversee the
reorganization proceedings as court-appointed trustees. The firm
will verify creditors' claims until June 22, 2004. Afterwards,
the validated claims will be presented in court as individual
reports on July 5, 2004.

The trustee is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on August 27, 2004.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on October 8, 2004.

CONTACT: Marcos Martini S.A.
         Luis Pasteur 2874
         Castelar Partido de Moron

         Estudio Fernandez, Miro y Dazza
         Trustees
         San Martin 131
         Moron


MARMOLERIA SIERRA CHICA: Reorganize Official on Court Ruling
------------------------------------------------------------
Judge Bavastro Modet of Buenos Aires Court No. 17 approved the
Concurso Preventivo petition filed by Marmoleria Sierra Chica,
reports local news source La Nacion. The marble supplier will
undergo reorganization with Mr. Hugo Trejo as trustee.

The court-appointed trustee will verify creditors' proofs of
claim until September 3, 2004. Verifications are done to
ascertain the nature and amount of the Company's liabilities.

Clerk No. 33, Dr. Trevino Figueroa, assists the court on the
case.

CONTACT: Marmoleria Sierra Chica S.A.
         Sanchez de Bustamante 1758
         Buenos Aires

         Mr. Hugo Trejo, Trustee
         Avenida Cordoba 744
         Buenos Aires


PAN AMERICAN ENERGY: Outlines Increased Gas Exploration in 2004
---------------------------------------------------------------
Argentine oil and gas company Pan American Energy will raise
investments in gas exploration and production to US$91.3 million
this year from US$62.1 million in 2003, Business News Americas
reports, citing an executive.

Jose Luis Sureda, Pan American's gas sales VP, revealed that the
Cuenca Austral field, operated by France's Total, will account
for US$41.2 million in investment, with US$22 million earmarked
for the Pan American-operated Cerro Dragon.

As a result of frozen gas and electricity rates in Argentina
since January 2002, "We have not invested at the pace we are
accustomed to investing, but we have been investing and we are
continuing to invest," Sureda said.

"We would have liked to invest US$200 million [in 2002 and 2003]
but evidently we have invested less because of the whole
situation in Argentina, but [we were still] meeting our contract
obligations," Sureda continued.


PARILLA DON ZOILO: Claims Review Deadline Approaches
----------------------------------------------------
The verification of claims for the Parilla Don Zoilo S.A.
reorganization will end on August 19, 2004 according to Infobae.
Creditors with claims against the bankrupt company must present
proof of the liabilities to Mr. Alfredo Ruben Dario Rodriguez,
the court-appointed trustee, before the stated deadline.

CONTACT: Parilla Don Zoilo S.A.
         Avenida Honorio Pueyrredon 1412
         Buenos Aires

         Mr. Alfredo Ruben Dario Rodriguez, Trustee
         Marcelo T. Alvarez 1775
         Buenos Aires


PRIDE INTERNATIONAL: Fitch Assigns 'B+' To Sr Unsecured Notes
-------------------------------------------------------------
Fitch Ratings has assigned a 'B+' senior unsecured debt rating
to Pride International Inc.'s (Pride) newly issued senior
unsecured notes and a 'BB' rating for the proposed credit
facility. The Rating Outlook is Stable. The unchanged ratings
reflect Pride's relatively weak credit profile, the regions
where Pride operates, and the company's competitive position in
the oil and gas drilling market. These ratings were initiated by
Fitch as a service to users of its ratings and are based on
public information.

Pride intends to use the proceeds from the senior unsecured
offering and new credit facility to repay its existing credit
facilities ($400 million) and redeem its outstanding 9.375%
senior notes ($175 million), 10% senior notes ($200 million),
and 9% convertible notes ($86 million). The consolidated net
tangible asset covenants in Pride's 9.375% and 10% senior notes
limited Pride's ability to borrow under the revolving credit
facilities. These transactions will improve Pride's liquidity
position.

The ratings reflect Pride's relatively weak credit profile, the
regions where the company operates, and its competitive position
in the oil and gas drilling market. A number of factors have
contributed to Pride's weaker-than-expected credit profile,
including problems with the technical services segment,
persistent weakness in the shallow-water Gulf of Mexico, and a
heavily leveraged balance sheet. Since mid-2003, the company has
suffered from significant cost overruns on several new platform
rig construction projects, including ExxonMobil's Kizomba A TLP
in West Africa and BP's Holstein spar project in the U.S. Gulf
of Mexico. In the latest twelve months (LTM) ended March 31,
2004, the technical service segment's operating losses
approached $95 million. Additionally, Pride has significant
exposure to the shallow waters of the Gulf of Mexico, a market
that has been particularly weak recently. The total offshore rig
count in that region has declined by about 50% since its peak in
the spring of 2001 despite extremely strong commodity prices.
Notably, to offset the weak environment in the Gulf of Mexico,
Pride mobilized fourteen jackups and two semi-submersibles to
Mexico, where activity is robust.

Also contributing to Pride's weak credit profile are the debt-
funded capital expenditures used to finance new builds and
upgrades to its fleet in the past five years. Development of the
company's drillships, several Amethyst-class semi-submersibles,
and refurbishments on nearly all of its other semi-submersible
fleet has been funded primarily with debt. These factors
contributed to Pride generating negative free cash flow for the
sixth consecutive year in 2003. Pride's LTM EBITDA as of March
31, 2004, was $359 million, providing adjusted interest coverage
of 2.2 times (x) and adjusted debt-to-EBITDA of 5.7x. At
quarter's end, Pride had $84 million of cash on hand, of which
$43 million was restricted. The company also had $162 million
available through its credit facilities but was prevented from
further borrowings under either facility due to the previously
mentioned consolidated net tangible asset covenants. Subsequent
to the refinancing of the senior unsecured notes, total debt and
lease obligations will be nearly $2 billion.

Fitch has concerns with several regions where Pride has
significant operations. In the intermediate term, Fitch is
pessimistic about the prospects of shallow-water domestic
drillers, given that demand in the shallow-water Gulf of Mexico
has been limited despite strong cash flows from the upstream.
This is evident by the weakness in the number of active jackups
in the Gulf of Mexico. The focus of operators domestically has
shifted to the deep-water Gulf of Mexico, where Pride's presence
is limited. Additionally, Fitch has a cautious view of
businesses operating in Argentina or Venezuela due to the
political uncertainty in each country. Fitch currently has a
sovereign rating of 'DDD' for Argentina and 'B-' for Venezuela.

Pride competes in the offshore drilling market and is a market
leader in the South American land drilling and service segment.
The company's commodity fleet of 33 jackup rigs is best suited
for shallow waters, with 80% of its fleet designed to drill in
less than 300 feet of water. Nearly all of its jackups are
equipped to drill depths of up to 20,000 feet. Its fleet of
floating deepwater units consists of ten semi-submersibles and
two dynamically positioned drillships. Of these twelve vessels,
only six are capable of drilling in water depths greater than
5,000 feet. The company also operates 21 platform rigs, five
tender-assisted rigs, and three barge rigs. Pride's onshore
fleet consists of 249 land rigs, the majority of which are
workover rigs located in Argentina and Venezuela. The company
also provides a variety of oilfield services to customers in
Argentina, Venezuela, Bolivia, and Peru. Services provided
include integrated project management, directional and
horizontal drilling, environmental drilling, cementing, and
stimulation.


SALPE S.R.L.: Court Authorizes Reorganization
---------------------------------------------
Graphic arts company Salpe S.R.L. will proceed with
reorganization after the Company trustee authorization from
Judge Ballerini of Buenos Aires Court No. 24.

According to Infobae, the court, which is assisted by Clerk No.
48 Dr. Diaz, appointed Ms. Alicia Zurron as trustee. Creditors
have until August 31, 2004 to submit their proofs of claim to
the trustee.

The informative assembly, the last stage of a reorganization
process, will be held on May 20 next year.

CONTACT: Salpe S.R.L.
         Pasaje Doctor Diego Rivarola
         Buenos Aires

         Ms. Alicia Zurron, Trustee
         Avenida Corrientes 2963
         Buenos Aires


TARJETA NARANJA: $200M of Bonds Retain 'D' Rating
-------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on US$200 million worth of bonds issued by Tarjeta
Naranja S.A. The rating was given based on the Company's
financial status as of March 31, 2004.

The CNV described the affected bonds as "Programa de
Obligaciones Negociables de Corto y Mediano Plazo," without
indicating the maturity date of the issue.


TELEFONICA DE ARGENTINA: Concession Talks Moving Forward
--------------------------------------------------------
The renegotiation of the concession contract of Argentine fixed-
telephony operator Telefonica de Argentina SA is making "great
progress", a government source told daily La Nacion.

The Company, a unit of Spanish telecom Telefonica SA, last month
agreed to freeze tariffs for basic services throughout 2004
while the government pledged to renegotiate the Company's
concession contract before year-end.

Telefonica de Argentina reported net profits of ARS577 million
(US$200.3mln) in the first quarter of 2004, bigger than the
ARS405 million net profit it registered in the same year-ago. It
also reported a net equity of ARS2.86 billion (US$991.3 million)
for the January to March period.

CONTACT:  TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar


TOLDOS NAZCA: Enters Bankruptcy Protection, Liquidation Follows
---------------------------------------------------------------
Judge Bavastro Modet of Buenos Aires Court No. 17 declared
Toldos Nazca S.A. bankrupt, says La Nacion. The ruling comes in
approval of the petition filed by the Company's creditor, Mr.
Luis Zullo, for nonpayment of US$1,669.80 in debt.

Clerk No. 33, Dr. Trevino Figueroa, assists the court on the
case, which will conclude with the liquidation of the Company's
assets. The court-appointed trustee, Ms. Dina Lorenzon, will
examine and authenticate creditors' claims until August 29,
2004.

CONTACT: Toldos Nazca S.A.
         Avenida Nazca 1057
         Buenos Aires

         Ms. Dina Lorenzon, Trustee
         Viamonte 749
         Buenos Aires


TOP BOARD: Court Rules in Favor of Creditor's Bankruptcy Motion
---------------------------------------------------------------
Cosena Seguros S.A. successfully sought for the bankruptcy of
Top Board S.R.L. after Judge Villanueva of Buenos Aires Court
No. 23 declared the Company "Quiebra," reports La Nacion. Cosena
Seguro asked for the company's bankruptcy after the latter
failed to pay debts amounting to US$453.62.

The office equipment distributor will now start the liquidation
process under the supervision of Ms. Susana Vacchelli. Creditors
of the company must submit their proofs of claim to the trustee
before August 26, 2004 for authentication. Failure to present
claims within the verification period will disqualify creditors
from the payments that will be made after the company's assets
are liquidated.

Dr. Timpanelli, Clerk No. 45, assists the court on the case,
which will end in the liquidation of all of its assets.

CONTACT: Top Board S.R.L.
         Leopoldo Marechal 950
         Buenos Aires

         Ms. Susana Vacchelli
         Montevideo 571
         Buenos Aires


TRENES METROPOLITANOS: Stripped of Railway Contract
---------------------------------------------------
The Argentine government rescinded passenger-train operator
Trenes Metropolitanos' contract to run services on one of the
main railway lines going into the capital, according to Dow
Jones Newswires. The contract has been rescinded for "the bad
state of the services," Planning Minister Julio de Vido said,
adding that Trenes Metropolitanos had failed to meet a range of
contractual obligations.

Now, a committee consisting of three other private companies -
Trenes de Buenos Aires SA, Ferrovias SA and Metrovias SA - will
run the service for a "short time" and the government will then
re-privatize the service, de Vido said.

Trenes Metropolitanos won the contract to run the services on
three railway lines in 1994. In 2000, the concession was
extended until 2024.

Meanwhile, Trenes Metropolitanos issued a press statement
Wednesday saying it was indignant over what it called a
"surprise" decision.

"Up until this date the company hasn't been informed or fined
(and) in addition, the state hasn't complied with its
obligations either," the statement said.

Trenes Metropolitanos will "evaluate follow-up actions with its
legal advisors" once it receives formal notification of the
government's decision.

The train operator, which will continue running services on two
other lines, would consider appealing the rescission if the
government ended the contract, according to local press reports.



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

AES TIETE: Fitch Affirms Certificates at 'B-'
---------------------------------------------
Fitch Ratings affirmed the rating on USD$300 million of 11.5%
trust certificates issued by AES IHB Cayman, Ltd. (IHB) at 'B-'.
The affirmation reflects the upgrade of Eletropaulo
Metropolitana Eletricidade de Sao Paulo S.A. (Eletropaulo) to
'B-' following the completion of its debt restructuring.

The certificates are guaranteed by AES Tiete Holding, Ltd., a
holding company of AES Tiete S.A. (Tiete), a publicly traded,
Brazilian, hydroelectric generation company. Fitch has also
affirmed the national scale rating of Tiete at 'BBB+(bra)'. The
rating of the certificates is based on the underlying credit
strength of Tiete and the quality and amount of dividends and
distributions available to the holding company to pay debt
service on the certificates.

Eletropaulo, Tiete's primary offtaker, is estimated to supply
approximately 70% of Tiete's 2004 revenues. Tiete benefits from
a growing base of inflation-indexed contracted revenues
(adjusted each July) increasingly derived from a long-term power
purchase agreement (PPA) with Eletropaulo. The Eletropaulo PPA
ramps up supply in 25% increments, which began in 2003 and is
more favorably priced than Tiete's initial (privatization)
contracts, which the Eletropaulo PPA is replacing. The company's
operating cost structure is low and relatively stable, and
operating company debt service is easily manageable. Fitch
believes that Tiete's net income levels and its holding
company's liquidity situation should improve in 2004 and
thereafter as it is expected to receive greater dividends due to
the growth in net earnings as the PPA with Eletropaulo ramps up.

On May 21, 2004, Tiete distributed dividends related to 2003 net
income to AES Tiete Empreendimentos S.A. (TE) and AES Tiete
Participacoes S.A. (TP) in the amount of BRL32.8 million and
BRL4.2 million, respectively. The dividends, in turn, were used
to repay the outstanding intercompany loan with Tiete, resulting
in an outstanding balance of approximately BRL22.2 million. As
per the restructured certificate documentation, the interest
payment of USD$11.3 million due to certificate holders on April
15, 2004 was deferred. Given the financial performance of Tiete
so far in 2004, Fitch believes it is possible that the
intercompany loan may be repaid in full and allow for a partial
payment on interest at the next payment date of Oct. 15, 2004.

Tiete is directly owned by TE and TP, now subsidiaries of
Brasiliana. TE and TP own 71% of the voting shares of Tiete,
which represents approximately 44% of the company's total
capital stock. While TE and TP have effective control, they
receive only 44% of dividends and distributions from Tiete,
which provide the cash flow available for debt service on the
certificates. TE and TP forward all payments to AES Tiete
Holdings, Ltd., which will service the certificate.

CONTACT: Jason Todd +1-312-368-3217, Chicago
         Mauro Storino +5521 4503-2600, Rio de Janeiro

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


CESP: Outlines Investment, Debt Payment Prioritization Plans
------------------------------------------------------------
Mr. Mauro Arce, chairman of the board of Brazilian power
generator Cesp, revealed that the utility will invest BRL150
million (US$48 million) by the end of 2004 to conclude the
1,980MW Porto Primavera hydroelectric complex, relates Business
News Americas.

Cesp, which has 7,500MW installed capacity, is seeking to
conclude the project this year, so that it can focus on the
restructuring of its debts next year.

"Since 1995, we have increased generation capacity by 25% and we
have built several dams. But because we have a very large debt,
our efforts now will be channeled to conclude this project and
from then on we will be investing only in maintenance," Arce
said.

Annual investment from 2005 onwards will be limited to BRL30
million, said Mr. Arce, who is also Sao Paulo state's energy and
water resources secretary.

Cesp has been restructuring its US$4 billion debt, which
included a 1.2bn real loan from national development bank BNDES
that will guarantee debt payments to the federal government
through June next year, Arce said.

In addition to limiting investment, the company also wants to
increase power sale revenues by holding short-term power
auctions to rebuild its portfolio after not being able to sell
the 25% in initial contracts that expired in 2003.

CONTACT:    Companhia Energetica De Sao Paulo
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


EMBRATEL: Telmex Appoints President, CEO
----------------------------------------
Embratel Participacoes S.A. will now operate under the
leadership of newly appointed president Mr. Carlos Henrique and
chief executive officer Mr. Jose Formoso Martinez once the
takeover by Telefonos de Mexico S.A (Telmex) is completed at the
end of July.

Bloomberg reports that Telmex announced the new appointments
after the company received regulatory approval to acquire MCI
Inc.'s Brazilian subsidiary.


PARMALAT FINANZIARIA: Posts Period Ending May 31, 2004 Results
--------------------------------------------------------------
Parmalat Finanziaria SpA in Extraordinary Administration
communicates the Parmalat's Groups financial results as at 31
May 2004.


                  Parmalat Finanziaria SpA

RESULTS

Highlights

                     Revenues        EBITDA        % Revenues

In millions
of Euros           2003    2004    2003  2004    2003    2004

Core Activities* 1,519.5 1,484.4  89.3  101.3     5.9    6.8

Non-core
Activities**       330.9   260.4 (21.5)  (8.3)    (6.5) (3.2)

Activities
In Special
Procedures***      372.9   232.4 (11.4) (31.7)    (3.1) (13.6)
Total            2,223.3 1,977.2  56.4   61.3      2.5    3.1

(*) Core Activities: consisting of drinks (milk and fruit
juice), milk-based products, focused on approximately thirty
brands (Global brands or strong local brands), focused on high
potential countries in which there is a strong demand for
healthy lifestyle products, a willingness to pay a premium price
for Parmalat brands and the availability of leading edge
technology.

(**) Non-core Activities: consisting of countries and activities
considered non-strategic which will be subject to disposal.

(***) Activities subject to Special Procedures: consisting of
businesses in countries outside Italy that are currently subject
to restrictions to their management as a result of local
bankruptcy proceedings.

CORE ACTIVITIES

Parmalat's Core Activity revenues have generally held up well
compared to the same period in the previous year (EUR1,484.4
million compared to EUR1,519.5 million) while EBITDA increased
by 13.4% to EUR101.3 million compared to EUR89.3 million in the
same period in 2003.

This improvement in operating results is largely as a result of
initiatives of a commercial nature and thanks to operating cost
reduction measures which have also been applied to the corporate
structure.

In particular, looking at the Group's principal geographic areas
of operation, the following can be noted:

Italy

Revenues for the period reached EUR574.2, down 7.9% compared to
the EUR623.8 million recorded in the same period in 2003. While
revenues fell, EBITDA showed an improvement rising by 17.6% from
EUR34.0 million at 31 May 2003 to EUR40.0 at 31 May 2004. This
confirms the positive trend already seen last month, even if
this is somewhat reduced as a result of a lower contribution
from the fruit juice activities (-12% for the period January to
May) compared to the same period in the previous year, whose
sales were slowed by unfavourable weather conditions.

Spain
Revenues for the period were EUR91.0 million compared to EUR93.4
million achieved at 31 May 2003. EBITDA for the same period fell
from EUR8.9 million to EUR5.9 million. The two factors largely
responsible for the worsening of the result for the period were
the increase in the cost of milk supplies compared to the
previous year (+8.2%) that were not balanced by a corresponding
increase in sale prices and the negative trend of a strong
seasonal character relating to the sale of ice cream (Royne
brand) which suffered as a result of weather conditions that
slowed consumption.

South Africa
Revenues for the period of EUR93.1 million grew by 28.8%
compared to the EUR72.3 million reported at 31 May 2003. EBITDA
also increased considerably moving from EUR5.6 million at 31 May
2003 to EUR8.1 million at 31 May 2004. As indicated last month
this increase in profitability has resulted from the acquisition
of new brands, the optimization of the business' productive
structure as well as the appreciation of the South African rand
against the Euro.

Venezuela
The lack of credit lines for the importation of raw materials
(powdered milk) resulted in reduced revenues which went from
EUR78.6 million in May 2003 to EUR62.7 million in May 2004 (-
20.2%). This resulted in a strong decrease in operating
profitability which fell from EUR11.5 million to EUR1.7 million,
impacted also by an increase in local raw materials costs and
higher structural costs.

Canada
The Canadian market showed slight growth at the revenue level
moving from EUR457.1 million to EUR464.6 million while EBITDA of
EUR27.2 million in May 2004 was 23.7% ahead of the same period
last year (EUR22.0 million).

This improved profitability results principally from an increase
in cheese sales and from general and distribution cost
containment.

Australia
Revenues reached EUR154.9 million up 7.3% compared to the
EUR144.4 million in the same period in 2003. Similarly EBITDA
for the period was EUR11.7 million compared to EUR10.5 million
in the same period in the previous year (+10.9%). This
improvement in results is down to a favourable exchange rate
trend; and with regard to EBITDA a reduction in general and
promotional costs also made a contribution.

NON-CORE ACTIVITIES AND ACTIVITIES IN SPECIAL PROCEDURES

The negative result for the businesses covered under these two
headings is mainly due to the performance of the Brazilian and
US operations.

Brazil
Revenues fell from EUR153.7 million to EUR45.4 million (-70.5%)
and EBITDA worsened moving from a negative EUR9.9 million to a
loss of EUR21.8 million. However in Brazil the Group's
operations recently came back under Parmalat's control and a
corporate restructuring plan is currently being drawn up as part
of a Concordata procedure. In the meantime revenues have started
to pick up compared to previous months (+18% in May compared to
April).

USA
Consolidated results showed a fall in revenues (from EUR350.2
million at 31 May 2003 to EUR288.7 million at 31 May 2004) and a
reduction in the operating result which moved from a loss of
EUR5.8 million in 2003 to a loss of EUR7.6 million at 31 May
2004.

The Dairy activities (milk and milk products) hit by a serious
financial crisis, were put into a Chapter 11 procedure. This
crisis has resulted in a significant reduction in revenues and
are worsening in EBITDA.

The Bakery activities produced lower revenues but a
significantly improved operating result (even though this is
still in negative territory) thanks to the process of
reorganization currently underway.


NET FINANCIAL POSITION:

Highlights

Values in
millions of Euros                      As at           As at
                              31 May 2004      31 December 2003

Short-term Financial Assets            (121.0)         (121.3)
  of which:

Liquid financial assets                  (0.9)          (20.9)
Available liquidity                    (120.1)         (100.4)
Accruals on Financial Assets            (63.1)          (61.9)
Total Short-term Financial Assets      (184.1)         (183.2)
Financial Debt                       13,762.5        13,457.5
Accruals on financial liabilities       263.5           256.2
Total Financial Liabilities          14,026.0        13,713.7
Financial Indebtedness               13,841.9         3,530.5

In addition, further financial debt of EUR132.0 million needs to
be taken into account in relation to the situations as at 31
December 2003 and 31 May 2004, this relating to companies that
are not totally consolidated, and connected and controlling
companies.

The above figures still contain an element of uncertainty as
regards some companies in the Group that are subject to
restrictions as a result of local procedures (Brazil and USA
Dairy specifically).

Financial debt should be considered as being largely short-term
in nature, given the current situation of theoretical default on
the covenants underlying the financing contracts. Some companies
are in talks to renegotiate their debt in order to consolidate
it.

At 31 May a debt of EUR250 million was inserted relating to the
financing of a foreign subsidiary company carried out in 2002
which envisaged a possible conversion into equity. Parmalat has
deemed it appropriate to forgo this option instead registering
with the subsidiary company a debt for the same amount.

Given the above the net financial position of the Group is
substantially unchanged and impacted by two events:

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

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

No use has been made until now of the line of credit of EUR105,8
million provided by a pool of banks on 4 March 2004.

Main companies in Extraordinary Administration

The following tables summarises situations of the main Italian
Companies in Extraordinary Administration

Parmalat Finanziaria SpA

Values in millions of Euros
                                   As at           As at
                              31 May 2004      31 December 2003

Short-term Financial Assets           (172.8)           (172.3)
Of which:
Intercompany financial credit         (171.8)           (171.8)
Liquid Financial assets                  0.0              (0.5)
Avauilable liquidity                    (1.0)              0.0
Accruals on financial assets
(incl. Interco.)                         0.0              (0.6)
Total short-term financial assets    - 172.8            (172.9)
Financial Debit
(incl. Intercompany debt)            1,268.4           1,268.4
of which:

Intercompany Finacial Debt           1,006.4           1,006.4
Other Financial Debt                   262.0             262.0
Accruals on Financial Liabiilties
(incl. Interco.)                         4.7               4.8
Total Financail Liabilities          1,273.1           1,273.2
Financial Indebtedness               1,100.3           1,100.3

The net financial position of the company is substantially
unchanged with a small increase in available liquidity even
given the disposal during the course of May 2004 of its holding
in Fondo Alfieri.

Parmalat SpA

Values in millions of Euros          Situation        Situation
                                         at               at
                                    31 May 2004 31 December 2003

Short-term Financial Assets             (64.8)          (53.9)
of which:
Intercompany Financial Credit           (44.6)          (27.6)
Liquid Financial Assets                   0.0           (19.7)
Available Liquidity                     (20.2)           (6.6)
Accruals on Financial Assets
(incl. Interco.)                          0.0             0.0
Total Short-term Financial Assets       (64.8)          (53.9)
Financial Debt
(incl. Intercompany Debt)             3,912.8          3,912.8
of which:

Intercompany Financial Debt           1,030.0          1,030.0
Other Financial Debt                  2,882.8          2,882.8
Accruals on Financial Liabilities
(incl. Interco.)                          -                -
Total Financial Liabilities           3,912.8          3,912.8
Financial Indebtedness                3,848.0          3,858.9

The net financial position of Parmalat SpA presents a positive
variation for the period (moving from -EUR3,859.0 to -
EUR3848.1, an improvement of EUR10.9 million). Liabilities were
unchanged while available financial resources were positively
effected by the disposal of holdings in MCC SpA and Banca di
Roma SpA.

These disposals, along with the performance of the operating
business generated new cash that allowed for, above and beyond
covering the ongoing requirements of the business, an increase
in total available liquidity (moving from EUR6.6 million to
EUR20.2 million) and the granting of inter-company credits for
an amount of EUR16.7 million, principally in favour of units in
North America (EUR10.7 million), Uruguay (EUR1.7 million) and
Germany (EUR1.6 million) and the payment of suppliers with a
privileged position (advisors to the Administration procedure).

Eurolat SpA

Values in millions
of Euros                            As at             As at
                                31 May 2004      31 Deember 2003

Short-term Financial Assets          (11.3)           (13.6)
  of which:

Intercompany Financial Credit          0.0              0.0
Liquid Financial Assets                0.0              0.0
Available Liquidity                  (11.3)           (13.6)
Accruals on Financial Assets
  (incl. Interco.)                    (0.1)             0.0
Total Short-term Financial Assets    (11.4)           (13.6)
Financial Debt
  (incl. Intercompany Debt)          192.9            191.9
  of which:

Intercompany Financial Debt           45.8             45.8
Other Financial Debt                 147.1            146.1
Accruals on Financial Liabilities
  (incl. Interco.)                     0.5              1.5
Total Financial Liabilities          193.4            193.4
Financial Indebtedness               182.0            179.8

This company also saw its debt position stabilize having had no
requirement to seek new financing. The variation in the Other
Financial Debt line as at 31 May 2004 compared to 31 December
2003 is at a result of reclassifications relating to already
made accruals for liabilities at the close of the previous
financial year.

Lactis SpA

Values in millions of Euros           As at           As at
                                  31 May 2004   31 December 2003

Short-term Financial Assets            (3.1)           (0.4)
  of which:

Intercompany Financial Credit           0.0             0.0
Liquid Financial Assets                 0.0             0.0
Available Liquidity                    (3.1)           (0.4)
Accruals on Financial Assets
  (incl. Interco.)                      0.0            (0.0)
Total Short-term Financial Assets      (3.1)           (0.4)
Financial Debt
  (incl. Intercompany Debt)            20.5            20.5
  of which:
Intercompany Financial Debt             8.6             8.6
Other Financial Debt                   11.9            11.9
Accruals on Financial Liabilities
  (incl. Interco.)                      0.0             0.1
Total Financial Liabilities            20.5            20.6
Financial Indebtedness                 17.4            20.2

Available liquidity increased from EUR0.4 million to EUR3.1
million, while financial liabilities remained unchanged compared
to 31 December 2003.



===================================
D O M I N I C A N   R E P U B L I C
===================================

AES EDE-ESTE: Contracts Unauthorized $50M Loan, Audit Shows
-----------------------------------------------------------
Dominican Republic daily newspaper Hoy reports that AES Ede-Este
power distributor contracted a US$50 million loan at an annual
interest rate of 18%, when the average rate being offered by
banks fluctuated from 10-13%, relates DR1 Daily News.

According to an audit carried out at the Company revealed that
the loans did not have the due authorization of the board of
directors. The audit showed that from March to June of 2000, the
Company received US$38 million in loans from the company
affiliate that took out the loan, despite not having the proper
authorization.



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

* Guyana Secures US$22.5 Mln Loan From IDB
------------------------------------------
Program supports infrastructure, research, diversification The
Inter-American Development Bank announced Wednesday the approval
of a $22.5 million concessional loan to Guyana to improve the
competitiveness of agriculture through investments in
infrastructure, training, research and diversification. The
program will finance civil works to improve drainage and
irrigation in selected areas, institutional development, rice
seed research and production, and agricultural diversification.

Farmers training and extension services will be strengthened
under the program, and support will be provided for the
establishment of Water User Associations, which will empower
farmers to better manage secondary drainage and irrigations
systems, maintain canals and control costs.

The project, to be carried out by the Ministry of Agriculture*,
reflects the IDB country strategy of supporting sustainable
economic growth, as the agricultural sector accounts for a
significant share of the country's economic output.

The IDB loan is for a 40-year term, with a 10-year grace period,
at an annual interest rate of 1 percent during the grace period
and 2 percent thereafter. Local counterpart funds total $2.5
million.

Since 1977 the IDB has loaned Guyana more than $200 in loans for
projects related to agriculture, supporting institutional reform
and higher productivity.

In other loans earlier this year, the Bank approved $88.3
million in low-interest loans to Guyana to help finance
improvements in surface transportation, health services and
public fiscal management.



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

GRUPO MEXICO: S&P Puts 'B-' Rating On CreditWatch Positive
----------------------------------------------------------
Standard & Poor's Ratings Services said today that it placed its
'B-' long-term corporate credit rating on Grupo Mexico S.A. de
C.V. (Gmexico) on CreditWatch with positive implications.
Additionally, the 'CCC+' long-term corporate credit ratings on
Americas Mining Corp. (AMC) and its subsidiaries (Southern Peru
Copper Corp., Minera Mexico S.A. de C.V., and ASARCO Inc.) were
placed on CreditWatch with positive implications. Positive
implications mean that the ratings could be raised or affirmed
following completion of Standard & Poor's review.

The CreditWatch placement reflects the companies' better
financial profile due to both the strong copper price
environment and factual and expected debt reductions. Copper
prices have changed last year's negative trend and so far this
year, the average copper price has been above 120.0 U.S. cents
per pound, which compares favorably with 2003's average price of
80.7 U.S. cents per pound. Standard & Poor's believes that the
current copper price environment will allow the company to
continue to make additional early debt amortizations.

"Standard & Poor's will monitor whether Gmexico continues to
improve its operating performance and financial profile, as well
as whether copper prices remain strong," said Standard & Poor's
credit analyst Juan P. Becerra.

Gmexico is the holding company of Grupo Ferroviario Mexicano
(GFM), a railroad company, and AMC, a mining company. AMC, the
worldwide third-largest copper producer, fully owns Minera
Mexico and ASARCO, and has a 54.2% ownership of Southern Peru
Copper Corp.; GFM fully owns Ferrocarriles Mexicanos, the
longest railroad in Mexico.


GRUPO MEXICO EXPORT: Watch Positive Shift on S&P Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services placed its 'CCC+' rating on
Grupo Mexico Export Master Trust No. 1's secured export notes
series C and D on CreditWatch with positive implications. In
addition, the 'CCC+' rating on Minera Mexico S.A. de C.V.'s (MM)
guaranteed senior notes (series A and B) was also placed on
CreditWatch with positive implications. The 'AAA' rating on
Grupo Mexico Export Master Trust No. 1's series E notes, insured
by MBIA Insurance Corp. ('AAA' financial enhancement rating),
was affirmed.

The rating actions follow the June 23, 2004, placement of the
'CCC+' long-term foreign and local currency corporate credit
ratings on MM, the world's largest producer of refined silver,
on CreditWatch with positive implications. The rating action on
the corporate credit rating reflects the company's better
financial profile, caused by the strong copper price environment
and factual and expected debt reductions. Last year's negative
trend in copper prices has ended; so far this year, the average
copper price has been above US120.0 cents per pound, which
compares favorably with 2003's average price of US80.7 cents per
pound. Standard & Poor's believes that the current copper price
environment will allow the company to continue to make
additional early debt amortizations.

Standard & Poor's expects to review the company's strategy and
projections, and their potential effects on the structured notes
in the next few weeks to resolve the CreditWatch status.

The structured export notes securitize the proceeds of copper
and zinc export sales of MM and its principal operating
subsidiaries. As is typical with a future flow transaction, the
proceeds of the sold export sales are captured offshore in a
segregated collection account under the control of the trustee.
All export sales are denominated and paid in U.S. dollars. Grupo
Mexico, of which MM is a subsidiary, is Mexico's largest mining
company and one of the largest mining conglomerates in the
world.

CONTACT: Maria Tapia, Mexico City (52) 55-5081-4415
         Juan Pablo De Mollein, New York (1) 212-438-2536
         Juan P. Becerra, Mexico City (52) 55-5081-4416


GRUPO TMM: Begins Restructuring Plan's Next Phase
-------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM and BMV:TMM A) ("Grupo TMM" or the
"Company") announced Wednesday that it has commenced its
exchange offer for all of its outstanding 9 1/2 percent Notes
due 2003 (the "2003 notes") and its 10 1/4 percent Senior Notes
due 2006 (the "2006 notes" and together with the 2003 notes, the
"existing notes"). The exchange offer is being conducted to
implement the previously announced restructuring of the existing
notes. The Company has entered into voting agreements with the
holders of approximately 72 percent of the outstanding principal
amount of the existing notes, pursuant to which they have agreed
to support the restructuring and to exchange their existing
notes. The Company is also soliciting consents to the proposed
amendments to the indenture governing the 2006 notes and
acceptances of a pre-packaged plan of reorganization described
below. The pre-packaged plan would, if confirmed, implement the
restructuring on essentially the same terms as the exchange
offer.

In the exchange offer, the Company is offering to exchange
$1,000 principal amount of the Company's newly issued Senior
Secured Notes due 2007 (the "new notes") for each $1,000
principal amount of existing notes validly tendered in the
exchange offer. Holders whose consents are validly received
prior to Thursday, July 8, 2004, (the "consent date") will be
entitled to receive as a consent fee a pro rata portion of
approximately $21.1 million of new notes. Accrued unpaid
interest on the existing notes through the settlement date of
the exchange offer will be paid in additional new notes with a
principal amount equal to the amount of the accrued interest. On
July 22, 2004, the current expiration date of the exchange
offer, the amount of accrued interest on the 2003 notes and the
2006 notes will be approximately $186 and $190, respectively,
per $1,000 principal amount of such existing notes.

The new notes will be guaranteed on a senior basis by each of
the Company's wholly-owned subsidiaries and will be secured by a
pledge of certain assets of the Company and the guarantors. The
new notes will bear interest initially at 10 1/2 percent per
annum, payable, at the option of the Company, in cash or in
additional new notes, provided that the Company must pay at
least 2 percent per annum in cash interest. If the Company
elects to pay a portion of the interest in additional new notes,
the interest rate will increase.

The new notes will mature on August 1, 2007, subject to the
right of the Company to extend the maturity until August 1,
2008, under certain circumstances. The new notes are redeemable
at any time at the option of the Company, and the Company is
required to redeem or repurchase notes with the proceeds of
certain assets sales or other payments.

The exchange offer will expire at, and the ballots for the pre-
packaged plan must be received by, 5:00 p.m., New York City
time, on Thursday, July 22, 2004, unless extended. Holders whose
consents are validly received may not withdraw any existing
notes once they are tendered, except under limited
circumstances.

The primary purpose of the consent solicitation is to eliminate
substantially all of the restrictive covenants of the indenture
governing the 2006 notes. Holders who tender their 2006 notes in
the exchange offer will be deemed, as a condition to a valid
tender, to have given their consent to the proposed amendments
to the indenture governing the 2006 notes. Concurrent with the
exchange offer, the Company is also soliciting votes to accept a
pre-packaged plan of reorganization under chapter 11 of the
United States Bankruptcy Code or, at the Company's election,
Mexican bankruptcy law, which, if confirmed, would accomplish
the restructuring on substantially the same terms as the out-of-
court restructuring through the exchange offer. Grupo TMM only
expects to seek confirmation of the pre-packaged plan of
reorganization if the minimum tender condition to its exchange
offer is not satisfied or waived.

The exchange offer is conditioned upon, among other things,
receipt of valid tenders (including exchanges pursuant to the
voting agreements) representing at least 98 percent of the
outstanding principal amount of the 2003 notes and at least 95
percent of the outstanding principal amount of the 2006 notes.
Pursuant to the voting agreements, holders of approximately 71
percent of the 2003 notes and approximately 72 percent of the
2006 notes have agreed to exchange their existing notes for new
notes and to vote in favor of the pre-packaged plan of
reorganization. Accordingly, the Company believes that it should
have sufficient support from the holders of the existing notes
to complete the restructuring through the pre-packaged plan if
the minimum tender condition of the exchange offer is not met.

Questions regarding the proposed restructuring should be
directed to Martin F. Lewis and Ronen Bojmel at Miller Buckfire
Lewis Ying & Co., LLC, the Company's financial advisor, or Alan
D. Fragen and Oscar A. Mockridge of Houlihan Lokey Howard &
Zukin Capital, the Ad Hoc Bondholders' Committee's financial
advisor. Akin Gump Strauss Hauer & Feld LLP is legal counsel to
the Ad Hoc Bondholders' Committee.

Martin F. Lewis                         Ronen Bojmel
Miller Buckfire Lewis Ying &            Miller Buckfire Lewis
Ying &
Co., LLC                                Co., LLC
250 Park Avenue                         250 Park Avenue
New York, New York 10177                New York, New York
10177
Telephone: (212) 895-1805               Telephone: (212) 895-
1807
Email: martin.lewis@mbly.com            Email:
ronen.bojmel@mbly.com

and

Alan D. Fragen                          Oscar A. Mockridge
Houlihan Lokey Howard &                 Houlihan Lokey Howard &
Zukin Capital                           Zukin Capital
1930 Century Park West                  685 Third Avenue
Los Angeles, California   90067         New York, New York
10017
Telephone: (310) 788-5338               Telephone: (212) 497-
4175
Email: afragen@hlhz.com                 Email:
omockridge@hlhz.com

Miller Buckfire Lewis Ying & Co., LLC and Elek, Moreno-Valle y
Associados are acting as financial advisors to Grupo TMM in
connection with the exchange offer and the restructuring.

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services. TMM also has a
significant interest in Transportacion Ferroviaria Mexicana
(TFM), which operates Mexico's Northeast railway and carries
over 40 percent of the country's rail cargo.

The exchange offer and consent solicitation are made solely by
the prospectus dated June 23, 2004, the related letter of
transmittal and consent, and the ballot for the pre-packaged
plan. These documents contain important information about the
Company and the proposed restructuring. Investors and holders of
the existing notes are urged to read these documents carefully.
Copies of the prospectus and transmittal materials can be
obtained from Innisfree M&A Incorporated, the solicitation
agent, information agent and voting agent for the exchange offer
and solicitation, at the following address:

                      Innisfree M&A Incorporated
                    501 Madison Avenue, 20th Floor
                          New York, NY 10022
                      (877) 750-2689 (toll free)
                          Fax: (212) 750-5799

CONTACT: Grupo TMM
         Investor Relations
         Mr. Brad Skinner
         011-525-55-629-8725
         brad.skinner@tmm.com.mx

         Dresner Corporate Services
         General Investors, Analysts and Media
         Ms. Kristine Walczak
         312-726-3600
         kwalczak@dresnerco.com

         Proa/StructurA
         Media Relations
         Mr. Marco Provencio
         011-525-55-629-8708
         011-525-55-442- 4948
         mp@proa.structura.com.mx

         Web Site: www.tmm.com.mx




PARMALAT MEXICO: Milk Company Seeks to Acquire Assets
-----------------------------------------------------
Mr. Eduardo Tricio, president of Grupo Industrial Lala,
confirmed to local daily Reforma that his company is in talks to
buy Parmalat Finanziaria S.p.A.'s assets in Mexico, relates Dow
Jones Newswires. The executive, however, declined to put a
dollar value on the assets.

Lala, Mexico's biggest milk company, is eyeing Parmalat's local
assets, which include one plant and three distribution centers
that supply 300 million liters of milk, or 7% of domestic
consumption.

Milan-based Parmalat filed for bankruptcy protection from
creditors in December following a management fraud scandal. The
insolvent Italian dairy products concern then announced in March
that it would sell off assets in about 20 countries, including
Mexico. At the time, Parmalat's Mexican unit said the Company's
local operations required investment beyond the group's ability
under present conditions.


SATMEX: Scrambles to Negotiate $205M Loan With Creditors
--------------------------------------------------------
Mexican satellite operator Satmex may lose its Satmex 6
satellite to creditors before it can even launch it, indicates
Business News Americas. Satmex is currently in negotiations with
creditors to restructure a US$205-million syndicated loan.
Failure to reach an accord before the principal payment of the
loan expires on July 1 may drive creditors to resort to legal
means, eventually seizing the Satmex 6 satellite in order to
recover some assets.

But the Company is confident that it will be able to reach a
compromise with creditors before July 1 allowing for the
restructuring of the current debt by exchanging it with a new
long-term liability. Satmex could also surrender a portion of
its capital to sweeten the deal.

On August 2003, Satmex missed service payments totaling US$16.2
million for the US$320 million loan due in November. Apart from
this debt and the one maturing this month, the Company also
faces a US$188-million debt with the Mexican government maturing
in December.

Last year, the Company's sales dipped to US$85 million after the
failure of its Solidaridad 1 satellite, further hurting its
restructuring efforts.


VITRO: Contemplates $150M Private Bond Placement
------------------------------------------------
Vitro, S.A. de C.V. ("Vitro") (NYSE: VTO - News; BMV: VITROA)
announced Wednesday that its subsidiary Vitro Envases
Norteamerica S.A. de C.V. ("VENA") is evaluating several
possible financing transactions, including the possibility of
offering, subject to market and other conditions, approximately
US$150 million of senior secured guaranteed notes (the "Notes")
in a private placement pursuant to Rule 144A and Regulation S
under the Securities Act of 1933, as amended (the "Securities
Act").

The possible transaction is one of several financing
transactions being evaluated by VENA at this time. VENA is
currently assessing market conditions for the possible offering.
Depending on VENA's assessment of those market conditions and
other factors, including but not limited to, subsequent changes
in market conditions and the status or terms of other possible
transactions, VENA may decide to proceed with the offering, to
change the terms of the offering, to pursue other financing
transactions or to not pursue the possible transaction or any
other transaction at this time.

The Notes being considered would be issued by VENA and
guaranteed by VENA's principal Mexican subsidiaries and Vitro
Packaging. The Notes would be secured by liens on most of VENA's
and its subsidiaries' assets. The collateral may be shared with
other creditors of VENA and its subsidiaries.

Neither VENA nor any person acting on its behalf makes any
representations or warranties as to the likelihood of any
possible transaction or the terms thereof.

The Notes have not been, and will not be, registered under the
Securities Act and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements of the Securities Act. This press
release is neither an offer to sell nor a solicitation to buy
the Notes.

Vitro, through its subsidiary companies, is one of the world's
leading glass producers. Vitro is a major participant in three
principal businesses: flat glass, glass containers and
glassware. Vitro serves multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses, and aluminum
containers. Founded in 1909 in Monterrey, Mexico-based Vitro has
joint ventures with major world-class partners and industry
leaders that provide its subsidiaries with access to
international markets, distribution channels and state-of-the-
art technology. Vitro's subsidiaries have facilities and
distribution centers in eight countries, located in North,
Central and South America, and Europe, and export to more than
70 countries worldwide.

CONTACT: Media Mexico D.F.
         Mr. Eduardo Cruz
         Vitro, S. A. de C.V.
         +52 (55) 5089-6904
         ecruz@vitro.com

         Web Site: www.vitro.com



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

PANAMERICANA: Delgado Parker Secures Control of Network
-------------------------------------------------------
Peruvian businessman Genaro Delgado Parker gained the upper hand
in the legal battle for control of Panamericana Television that
has nearly brought the Company on the throes of bankruptcy.
According to EFE, Mr. Delgado Parker took possession of one of
the facilities of Panamericana on Friday after a court
injunction solidified his claim on the Company. The facilities
had been in the hands of rival shareholder Ernesto Schutz for
almost a year.

The dispute over control of the broadcast outfit started when
Mr. Delgado Parker assumed command of the Company after Mr.
Ernesto Schutz Sr., the majority owner of the network and father
of Ernesto Schutz, was arrested for bribery in Argentina.

EFE adds that Mr. Fernando Viana, speaking for the Schutz camp,
hinted that the Mr. Delgado Parker used his connections with the
presidential palace and Peruvian President Alejandro Toledo to
gain a favorable decision from the court.



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

CDC: Defends Lock-Out Action in Court Hearing
---------------------------------------------
An injunction against CDC's lock-out action would permanently
impair the company's right to lock out workers, argued the
company's senior counsel, Seenath Jairam, during the hearing at
the Industrial Court on Wednesday. The lawyer also asserted that
the court should not set a precedent for other unions who might
follow similar practices in the future.

The Trinidad Guardian relates that Attorney Jairam questioned
Union head Roberto Guiseppi's claims that the he was not aware
of the company's terms and conditions for the lock-out. The
union had based its injunction arguments on allegations that
these terms were not on the lock-out notices.

However, Attorney Jairam counters that the union was aware of
the lock out terms because Guiseppi had previously discussed
them in two Guardian articles.

Further, the lawyer pointed out that the legitimacy of the lock-
out should be based on whether the notices from CDC ended up in
the right hands or were in the correct format.

Senior Counsel Douglas Mendes and assistant Donna Prowell will
respond in behalf of the union workers on the next hearing
scheduled on June 30.





                            ***********


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 * * *