TCRLA_Public/040628.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Monday, June 28, 2004, Vol. 5, Issue 126

                            Headlines


A R G E N T I N A

CLISA: Local S&P Maintains Ratings on Corporate Bonds
COLORIN INDUSTRIA: Evaluadora Reaffirms `D' Rating on Bonds
CONSTRUCTORA BERUTTI: Enters Bankruptcy on Court Orders
DIMPLASTA: Court Favors Creditor's Bankruptcy Petition
DOLANCOR: Debt Payments Halted, Set To Reorganize

EL RAITAN: Asks Court for Reorganization
ESTABLECIMIENTO MALVINAS: Court Declares Company Bankrupt
F.M. SPORT BUSINESS: Endorses Settlement Plan in Court
GRANJA LOS TILOS: Liquidates Assets to Pay Debts
INTER WAY: Court OKs Creditor's Bankruptcy Call

MANNYA'S MUSICAL: Gears for Reorganization
MED FAR: Court Approves Creditor's Involuntary Bankruptcy Motion
OBRA SOCIAL: Court Approves Settlement Plan
PEDRO ALESSIO: Reorganization Proceeds To Bankruptcy
REPSOL YPF: Moody's Amends Outlook on Ratings

STOP CAR: Gets Court Approval for Reorganization
TGS: Evaluadora Maintains `D' Rating on $1.3B in Bonds



B A R B A D O S

C&W BARBADOS: Allots $20M for Network Improvement


B O L I V I A

NON-METALLIC MINERALS: Loses Mining Concession
TEXTURBOL: Seeks $800,000 Loan to Go Ahead With Restructuring

* Bolivia Gets $28.5M from IADB for La Paz Urban Development


B R A Z I L

COPEL: Aneel Authorizes Tariff Hike
ELETRONET: Major Creditor Discusses Payment With Government
EMBRATEL: Telmex to Conclude Purchase Next Month
EMBRATEL: Not Merging With Claro, Says Telmex
LOCALIZA RENT A CAR: Moody's Upgrades Rating on Sr. Sec. Notes

USIMINAS: Signs Another Contract in US

* Brazil Still Dominates Latin Structured Market, Says S&P



C H I L E

ENERSIS: Parent Mulls Additional Investment


C O S T A   R I C A

* S&P Affirms Costa Rica's Ratings; Outlook Negative



D O M I N I C A N   R E P U B L I C

AES DOMINICANA: Government Turns to CDEE Books to Solve Dispute
COGENTRIX: Primed to Re-ignite Plants With $5.8 Million Payment



H O N D U R A S

* World Bank Aids Honduras' Anti-Poverty Scheme With $87M Loan


M E X I C O

CYDSA: Fails to Make Interest Payment on $159M Debt
EMPRESAS ICA: Notice Of 3rd Issuance Of Non-Amortizing CPOs


T R I N I D A D   &   T O B A G O

BWIA: Seeks Re-certification From CAA

     -  -  -  -  -  -  -  -

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

CLISA: Local S&P Maintains Ratings on Corporate Bonds
-----------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains an `raB-` rating on US$120 million worth of corporate
bonds issued by Argentine company CLISA.

The country's securities regulator, the Comision Nacional de
Valores (CNV), described the affected bonds as "Obligaciones
Negociables con garantia (AGO 21-01-03, AD 23-01-03)." These
bonds will mature on June 1, 2012.

S&P said that an obligation rated `raB' denotes weak protection
parameters relative to other Argentine obligations. The obligor
currently has the capacity to meet its financial commitments on
the obligation. But adverse business, financial, or economic
conditions would likely impair capacity or willingness of the
obligor to meet its financial commitments on the obligations.

At the same time, the local S&P maintains an `raD' rating on
US$100 million worth of CLISA's bonds described as "Obligaciones
Negociables con garantia." The bonds came due on June 1, 2004.

The rating actions were based on the Company's financial health
as of March 31, 2004.


COLORIN INDUSTRIA: Evaluadora Reaffirms `D' Rating on Bonds
-----------------------------------------------------------
Evaluadora Latinoamericana S.A. Calificadora de Riesgo
reaffirmed the `D' rating on US$47 million worth of corporate
Bonds issued by Argentine company Colorin Industria de
Materiales Sintet.

The CNV described the bonds affected as "Obligaciones
Negociables." These bonds will mature on March 31, 2006.

The rating was determined based on the Company's financial
status as of the March 31, 2004

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


CONSTRUCTORA BERUTTI: Enters Bankruptcy on Court Orders
-------------------------------------------------------
Constructora Berutti S.A. will enter bankruptcy protection after
the Lomas de Zamora civil and commercial tribunal 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. Maria Isabel Carrizo
as trustee. She will be verifying creditors' proofs of claim
until the end of the verification phase on July 30, 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 September 17, 2004 followed by the general report, which is
due on November 5, 2004.

CONTACT: Constructora Berutti S.A.
         Alem 1399
         Banfield
         Lomas de Zamora

         Ms. Maria Isabel Carrizo, Trustee
         Alem 271
         Montegrande
         Lomas de Zamora


DIMPLASTA: Court Favors Creditor's Bankruptcy Petition
------------------------------------------------------
Obra Social de la Industria del Pl stico successfully sought for
the bankruptcy of Dimplasta S.A. after Judge Garibotto of Buenos
Aires Court No. 2 declared the Company "Quiebra," reports La
Nacion.

As such, the plastic manufacturing company will now start the
bankruptcy process with Ms. Liliana Oliveros Peralta as trustee.
Creditors of the Company must submit their proofs of claim to
the trustee before September 3, 2004 for authentication. Failure
to do so will mean a disqualification from the payments that
will be made after the Company's assets are liquidated.

Obra Social de la Industria del Pl stico sought for the
Company's bankruptcy after the latter failed to pay debts
amounting to US$2,424.68

Clerk No. 4 Dr, Romero, assists the court on the case, which
will culminate in the liquidation of all of its assets.

CONTACT: Dimplasta S.A.
         Amenabar 3672
         Buenos Aires

         Ms. Liliana Oliveros Peralta, Trustee
         Viamonte 1337
         Buenos Aires


DOLANCOR: Debt Payments Halted, Set To Reorganize
--------------------------------------------------
Judge Ballerini of Buenos Aires Court No. 24, assisted by Clerk
No. 48 Dr. Diaz, is currently reviewing the merits of Dolancor
S.A.'s petition to reorganize. La Nacion recalls that the
Company filed the petition following cessation of debt payments.

A reorganization will allow the Company to avoid bankruptcy by
negotiating a settlement with its creditors.

CONTACT: Dolancor S.A.
         Sarmiento 846
         Buenos Aires


EL RAITAN: Asks Court for Reorganization
----------------------------------------
El Raitan S.R.L., a company operating in Buenos Aires, requested
reorganization after failing to pay its liabilities.

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 Ojea Quintana of Court No. 12.
Dr. Pera, Clerk of Court No. 23, assists on this case.

CONTACT: El Raitan S.R.L.
         Avda La Plata 293
         Buenos Aires


ESTABLECIMIENTO MALVINAS: Court Declares Company Bankrupt
---------------------------------------------------------
Judge Ojea Quintana of Buenos Aires Court No. 12 declared local
company Establecimiento Malvinas S.R.L. bankrupt, relates La
Nacion. Ms. Roxana Alejandra de Benitez filed the bankruptcy
petition after the Company failed to pay its debts.

The Company will undergo the bankruptcy process with Mr. Jose
Colace as its trustee. Creditors are required to present their
proofs of claims 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. 23 Dr. Perea assists the court on the case.

CONTACT: Establecimiento Malvinas S.R.L.
         Tucuman 1539
         Buenos Aires

         Mr. Jose Colace, Trustee
         Avenida Cordoba 652
         Buenos Aires


F.M. SPORT BUSINESS: Endorses Settlement Plan in Court
------------------------------------------------------
Buenos-Aires based F.M. Sport Business S.A. has endorsed the
settlement proposal it signed with its clients for final
approval in court. Once the proposal is approved in court, the
company can proceed with its planned settlement.

CONTACT: F.M. Sport Business S.A.
         Buenos Aires


GRANJA LOS TILOS: Liquidates Assets to Pay Debts
------------------------------------------------
Zarate-Campana-based company Granja Los Tilos Zarate S.R.L. will
begin liquidating its assets following the bankruptcy
pronouncement issued by a local court, reports Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Mr. Daniel Enrique Masaedo. The
trustee will verify creditors' proofs of claims until June 28,
2004. After verification, the claims will be presented in court
as individual reports on August 23, 2004.

Mr. Masaedo will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on October 5, 2004.

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

CONTACT: Mr. Daniel Enrique Masaedo, Trustee
         Belgrano 156
         Zarate-Campana


INTER WAY: Court OKs Creditor's Bankruptcy Call
-----------------------------------------------
Inter Way S.A. entered bankruptcy after Judge Ottolenghi of
Buenos Aires Court No. 4 approved a bankruptcy motion filed by
N.S.S. S.A., reports La Nacion. The Company's failure to pay
US$33,957.97 in debt prompted the creditor to file the petition.

Working with Dr. Juarez, the city's Clerk No. 7, the court
assigned Mr. Mario Greico as trustee for the bankruptcy process.
The trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claims to the
trustee before August 27, 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: Inter Way S.A.
         Esmeralda 339
         Buenos Aires

         Mr. Mario Greico, Trustee
         Avenida de Mayo 1260
         Buenos Aires


MANNYA'S MUSICAL: Gears for Reorganization
------------------------------------------
The Buenos Aires civil and commercial tribunal issued a
resolution opening the reorganization of Mannya's Musical 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.

The reorganization allows Mannya's Musical to retain control of
its assets subject to certain conditions imposed by Argentine
law and the oversight of the court appointed trustee.

Mr. Aldo Ruben Maggiolo will serve as trustee during the course
of the reorganization. He will be validating creditors' proofs
of claims until August 23, 204. The results of the verification
will be presented in court as individual reports on October 4,
2004.

The trustee is also obligated to give the court a general report
of the case on November 16, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

The completed settlement proposal will be presented to the
Company's creditors during the informative assembly scheduled on
May 16, 2005.

CONTACT: Mannya's Musical S.A.
         Paraguay 610
         Buenos Aires

         Mr. Aldo Ruben Maggiolo, Trustee
         Paraguay 610
         Buenos Aires


MED FAR: Court Approves Creditor's Involuntary Bankruptcy Motion
----------------------------------------------------------------
Judge Rey of Buenos Aires Court No. 25 declared Med Far S.A.
bankrupt, says La Nacion. The ruling comes in approval of the
bankruptcy petition filed by the Company's creditor, Monte Verde
S.A., for nonpayment of US$16,917.22 in debt.

Clerk No. 49, Dr. Pennacca, assists the court on the case, which
will conclude with the liquidation of the Company's assets.

The court-appointed trustee, Mr. Juan Gutemberg, will examine
and authenticate creditors' claims until August 24, 2004. This
is done to determine the nature and amount of the Company's
debts. Creditors must have their claims authenticated by the
trustee by the said date in order to qualify for the payments
that will be made after the Company's assets are liquidated.

CONTACT: Med Far S.A.
         Armenia 1250
         Buenos Aires

         Mr. Juan Gutemberg, Trustee
         Avenida Callao 449
         Buenos Aires


OBRA SOCIAL: Court Approves Settlement Plan
-------------------------------------------
The agreement entered by Obra Social del Personal de Prensa de
la Republica Argentina with its creditors to settle its debts is
under court review pending final approval.

CONTACT: Obra Social del Personal de Prensa de la Republica
Argentina
         Buenos Aires


PEDRO ALESSIO: Reorganization Proceeds To Bankruptcy
----------------------------------------------------
The bankruptcy order placed against Pedro Alessio e Hijos
S.A.I.C. y F. has been converted to reorganization, reports
Argentine news source Infobae.

Infobae adds that the Olavarrian court handling the case
assigned Mr. Carlos Daniel Gandini as trustee, who will verify
creditors' proofs of claim until August 11, 2004.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by September 22, 2004. A general report on the bankruptcy
process is expected on November 4, 2004.

CONTACT: Pedro Alessio e Hijos S.A.I.C. y F.
         Avda del Valle 3932
         Olavarria

         Mr. Carlos Daniel Gandini, Trustee
         Fassina 3157
         Olavarria


REPSOL YPF: Moody's Amends Outlook on Ratings
---------------------------------------------
Moody's Investors Service changed the outlook on the B1 foreign
currency and Baa3 local currency ratings of Repsol YPF's
Argentine subsidiary, YPF S.A.

The actions reflect both operational and financial performance
improvements at Repsol YPF and also the economic recovery
evident in Argentina.

Moody's stated that the ratings could be expected to be raised
as a more benign energy environment develops or greater economic
stability is achieved in Caa1-rated Argentina, which continues
to negotiate with the IMF and its other creditors.

Moody's said that the principal reasons for the outlook changes
are the disciplined reduction of debt at both parent and
subsidiary company over the past several years which leaves them
in a strong financial position to withstand further potential
shocks in Argentina, generating sound cash flow to debt and
interest coverages and cushioned by robust liquidity, as well as
improvements in their operating performance and cost base which
will stand the group in good stead when oil prices return to
cyclical norms. Moody's also took into account Repsol's strategy
to contain its exposure to Argentine country risk going forward.


STOP CAR: Gets Court Approval for Reorganization
------------------------------------------------
Stop Car S.A. will begin reorganization following the approval
of its petition by a local court in Buenos Aires. 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 Carlos Aguilar Pinedo - Rascado Fernandez y
Asoc. will oversee the reorganization proceedings as the court-
appointed trustee. The firm will verify creditors' claims until
September 8, 2004. Afterwards, the validated claims will be
presented in court as individual reports on October 21, 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 December 2, 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 June 15 next year.

CONTACT: Stop Car S.A.
         Belgrano 552
         Buenos Aires

         Carlos Aguilar Pinedo - Rascado Fernandez y Asoc
         Trustee
         Montevideo 373
         Buenos Aires


TGS: Evaluadora Maintains `D' Rating on $1.3B in Bonds
------------------------------------------------------
Evaluadora Latinoamericana S.A. Calificadora de Riesgo maintains
a `D' rating on a total of US$1.3 billion of corporate bonds
issued by Transportadora de Gas del Sur S.A., the CNV says on
its Web site.

The bonds affected are:

- US$500 million of "Programa Global de 1996 por U$S
500.000.000;"
- US$500 million of "Programa Global de 1999;" and
- US$300 million of "Programa Global de 2000".

The maturity dates of all the issues were not disclosed.

The rating was based on the Company's finances as of the end of
March 31, 2004.

CONTACTS:  Investor Relations:
           Eduardo Pawluszek, Finance/Investor Relations Manager
           Gonzalo Castro Olivera, Investor Relations
           Email: gonzalo_olivera@tgs.com.ar
                     or
           Maria Victoria Quade, Investor Relations
           Email: victoria_quade@tgs.com.ar
           Tel: (54-11) 4865-9077

           Media Relation:
           Rafael Rodriguez Roda
           Tel: (54-11) 4865-9050 ext. 1238



===============
B A R B A D O S
===============

C&W BARBADOS: Allots $20M for Network Improvement
-------------------------------------------------
Cable & Wireless Barbados intends to plunk down another US$20
million this year to further improve their cellular network
service. The cellular company plans to use a good part of this
investment in constructing ten new sites to complement the
expected rise in subscribers brought about by the liberalization
of the country's cellular market.

Mr. Jim Pitford, the company's chief operating officer-
designate, announced on Tuesday that this amount is on top of
the US$61 million the company had already invested for network
improvements in 2004.

In a statement released by Nationnews, Mr. Edwin Layne, C&W
Barbados' vice-president for Network Services, said that the
recent addition of 14 cellular sites has expanded the company's
coverage to 99.9 percent. The report further states that the
cellular providers in Barbados would adopt a site-sharing scheme
to minimize the number of unsightly towers in the island.



=============
B O L I V I A
=============

NON-METALLIC MINERALS: Loses Mining Concession
----------------------------------------------
Bolivia's mining and hydrocarbons ministry stripped Non Metallic
Minerals of its mining concession, saying that the concession
was obtained illegally, relates Business News Americas.

"The government ended ownership rights because Mr [David]
Moscoso [president of Non Metallic] obtained the concession in
an illegal manner, thereby harming mining in general," said
Oscar Kempff, who is the director of Bolivia's national
geological and mining service Sergeomin.

Plans now include turning over Non Metallic's concessioned areas
to the state to form part of the next salar tender for lithium
production that the government is preparing, Kempff said.

However, Non Metallic is claiming that the Company has still not
been notified of the decision. But once the decision is
official, the Company would appeal in court, said Moscoso.

"We will continue operating and if they notify us of the
resolution, we will obviously challenge it because it is the law
and while we challenge the decision it will not be carried out
... we will defend ourselves under the law," he said.

Non Metallic Minerals is a subsidiary of Chilean firm Quiborax
that develops ulexite at the Salar de Uyuni salt flats.


TEXTURBOL: Seeks $800,000 Loan to Go Ahead With Restructuring
-------------------------------------------------------------
Texturbol, the sole Bolivian producer of polyester fiber
fabrics, applied for an US$800,000 loan from Nacional Financiera
Boliviana Sociedad Anonima Mixta (NAFIBO SAM), says La Razon.

The move is part of the Company's plan to proceed with a
restructuring plan outlined by Banco de Credito, Hilbo, and
Santa Monica Cotton and approved by creditors.

With 400 employees, the Company is the first to benefit from the
corporate funding program set up by the government.

Texturbol has a monthly production of 140,000 Kg of polyester
yarns and a capacity for 240,000 Kg, while it also produces
polyester clothing for exports in association with ASEA Ltd.


* Bolivia Gets $28.5M from IADB for La Paz Urban Development
------------------------------------------------------------
The Inter-American Development Bank announced on Thursday the
approval of a $28.5 million soft loan to Bolivia, to be
transferred to the Municipality of La Paz, for a program to
promote the revitalization and urban development of its
historical center through social and physical investments in
infrastructure to attract and foster economic activities.

The municipality of La Paz, seat of the Government of Bolivia,
has a population of around 800,000 inhabitants and due to a
difficult topography government buildings, schools, churches and
services are concentrated in the old part of the city. This
concentration of population and vehicle traffic in a limited
area has led to overcrowding and degradation of the city center
and an exodus of formal economic activities.

The program will help reverse the process of physical and social
deterioration in the city center by promoting urban, social and
economic development. It will boost productivity and incomes
through investments to improve the environmental and urban
quality of life in the inner city. The initiative will
particularly emphasize, as a critical part of an Urban Poverty
Strategy, social inclusion of disadvantaged persons. It will
help raise the productivity and income of people who work and
live in the public spaces of the city center.

In order to implement the Urban Poverty Strategy, the city has
developed two innovative initiatives. A Social Development Fund
will competitively select projects presented by civil society
organizations to enhance the provision of social services and
the skills of vulnerable groups to join the formal work force.
Among those who will benefit are women, older adults, persons
with disabilities and street vendors.

A Fund for Productive Activities will support labor productivity
enhancing training and technical assistance for artisans,
microentrepreneurs and small business owners and the self-
employed by selecting projects presented by associations of
artisans and microentrepreneurs in partnership with civil
society organizations.

The IDB financing from the concessional Fund for Special
Operations reflects a Bank strategy in conjunction with Bolivia
to improve efficiency and equity in the delivery of basic
services to promote a better quality of life, particularly for
the most vulnerable groups of the population.

The loan is for a 40-year term, with a 10-year grace period,
with interest of 1 percent during the grace period and 2 percent
thereafter.



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

COPEL: Aneel Authorizes Tariff Hike
-----------------------------------
Companhia Paranaense de Energia - Copel informed the market that
it has been authorized, through the Resolution 146, as of June
21, 2004, issued by ANEEL (National Agency of Electric Energy),
which relates to the Company's Tariff Revision, to adjust its
supply tariffs in
9.17% on average as of June 24, 2004.

Additionally, ANEEL has authorized the CVA recovery of 5.26%,
totaling a tariff adjustment of 14.43%.

The Company decided to apply an average adjustment of 9.0% in
current tariffs charged to consumers that are not overdue.

CONTACT:  Cia Paranaense de Energia
          Rua Colonel Dulcidio, 800
          Batel
          80420-170 Curitibia - PR
          Brazil
          Phone: +55 41 322-3535
          Fax  +55 41 224-4312
          Home Page: http://www.copel.com


ELETRONET: Major Creditor Discusses Payment With Government
-----------------------------------------------------------
Furukawa, the Japanese telecommunications company holding BRL300
million of Eletronet's BRL600 million debt, is trying to
negotiate the payment terms with the Brazilian government.

In the first quarter of 2004, Eletronet defaulted on a BRL59.1
million payment after Eletrobras' divisions failed to pay for
services. Eletrobras, the state-owned power company, controls 49
percent of Eletronet.


EMBRATEL: Telmex to Conclude Purchase Next Month
------------------------------------------------
Embratel Participacoes S.A. announced that Telefonos de Mexico
S.A. ("Telmex") has informed the Company's management that it
expects the change of control and closing of the transaction to
occur in the second half of July of 2004.

Embratel is the premium telecommunications provider in Brazil
and offers an ample variety of telecom services -local and long
distance telephony, advanced voice, high-speed data
transmission, Internet, satellite data communications, and
corporate networks. The Company is a leader in the country for
data services and Internet, and is highly qualified to be an
all-distance network carrier in Latin America. Embratel's
network spreads countrywide, with almost 29 thousand kms of
optic cables, which represents about one million and sixty-nine
thousand km of fiber optics.

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


EMBRATEL: Not Merging With Claro, Says Telmex
---------------------------------------------
Telefonos de Mexico SA (Telmex), Mexico's largest telephone
company, is not merging Brazilian telecommunications carrier
Embratel with its mobile communications unit Claro, reports
Valor Economico.

However, Telmex, controlled by billionaire Carlos Slim, admitted
that using the synergies with Claro and AT&T LA (currently
Telmex Brasil), Embratel will offer a wide range of products -
from the fix phone to the Internet and data services.

Telemex recently won approval from Brazilian telecommunications
regulator Anatel to buy Embratel from MCI Inc.


LOCALIZA RENT A CAR: Moody's Upgrades Rating on Sr. Sec. Notes
--------------------------------------------------------------
Moody's Investors Service revised the rating of Belo Horizonte-
based Localiza Rent a Car S.A.'s senior unsecured notes due 2005
upward from B3 to B2.

The rating outlook was changed to stable from negative.

The action was taken in light of the fact that Localiza's
revenues and free cash flow have proven resistant to demand
swings resulting from the volatile Brazilian macroeconomic
environment, due to the Company's ability to adjust rental rates
and the level of net investment in its vehicle fleet.

Moreover, the action was taken in consideration of a significant
reduction in exposure to foreign currency devaluation risk due
to the Company's decision to contract a swap agreement with
major banks under which the company pays the CDI rate (local
inter-bank lending rate) and receives R$/US$ exchange rate
variation plus a coupon of 9.3% to 9.8% p.a.

Thus, the Company's balance sheet is protected against all
devaluation risk related to the principal and interest due on
the notes.

The new rating is constrained by refinancing risk associated
with the October 1, 2005 maturity of the US$ 73.9 million in
notes remaining outstanding.

This refinancing risk is mitigated by cash and cash equivalents
of R$ 159.3 million (approximately US$ 50 million with the
current exchange rate) as of December 31, 2003 and the Company's
moderate overall leverage, with strong debt protection
measurements for the B2 category.

Localiza operates car rental, fleet management, and used car
businesses in Brazil, and franchises rental car operations
throughout Latin America.


USIMINAS: Signs Another Contract in US
--------------------------------------
Brazilian steel group Usiminas secured its third contract in the
US after its construction arm was awarded a US$20-million deal
to supply steel structures for New York's Bronx Whitestone
bridge restoring project, reports Business News Americas.

An Usiminas spokesperson said that Usiminas Mecanica won the
contract with US-based construction firm Perini, which has been
hired to restore the bridge.

Earlier, Usiminas was hired to supply steel structures to revamp
California's Bay Bridge and for the construction of 11 bridges
in Virginia.


* Brazil Still Dominates Latin Structured Market, Says S&P
----------------------------------------------------------
Brazil's dominance over the cross-border securitization market
and its position as Latin America's leading issuer in U.S.
dollar volume will continue in the foreseeable future, only with
lower issuance levels than in 2003, according to a recently
published report by Standard & Poor's Ratings Services.

The report, "Brazil Still Dominates Latin Structured Market, but
Mexico Leads on the Domestic Front," is based on a panel
discussion at Standard & Poor's Latin America Forum, held June
22, 2004, in New York. "In Mexico," the report states, "the
region's dominant domestic market, partial credit guarantees are
advancing as a viable new structural finance technique," said
credit analyst Juan Pablo De Mollein, a director in Standard &
Poor's Structured Finance group.

Brazil surpassed Mexico several years ago as the market leader
for cross-border securitization; in 2003, Brazil accounted for
more than 90% of the market. "In recent years, Mexican companies
have had less need to borrow internationally and through
securitization," said credit analyst Diane Audino, a director in
Standard & Poor's Ratings Services' Structured Finance group.
For the most part, local interest rates in Mexico have been very
favorable, so the need to borrow offshore is not as great. Also,
because Mexico has an investment-grade rating, companies and
banks can borrow relatively inexpensively with unsecured debt
when they look abroad for funding.

In 2003, the total dollar volume of debt issued in Latin
America's securitization market was $5.8 billion, an active year
by historical standards. Of this amount, $5.3 billion was from
Brazilian borrowers. "This year, we expect total market issuance
to fall between about $3.0 billion and $3.5 billion dollars,
mainly due to a drop in expected volume from Brazil," said Ms.
Audino.




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

ENERSIS: Parent Mulls Additional Investment
-------------------------------------------
Market conditions and the development of the gas crisis will
decide the future of Enersis in Chile. Endesa Espana, the
Spanish energy group controlling Enersis, Will maintain its
interests in the country if the investment climate is favorable.

The company's general director, Mr. Mario Valcare, said that his
company is looking for concrete administration plans on energy
so that it can finalize its investment strategy for Chile.

Hoovers reports that Enersis plans to lay down US$500 million in
Chile by 2007. In addition, the company intends to spend US$100
million to complete its Ralco power plant.



===================
C O S T A   R I C A
===================

* S&P Affirms Costa Rica's Ratings; Outlook Negative
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
foreign, 'BB+' long-term local, and 'B' short-term currency
sovereign credit ratings on the Republic of Costa Rica. The
outlook on the ratings remains negative.

According to Standard & Poor's Ratings Services credit analyst
Richard Francis, while Costa Rica has a highly diversified
economy, the ratings are constrained by weak public finances,
low external liquidity, a high level of dollarization, and a
large offshore banking presence.

"The negative outlook reflects Costa Rica's continued
vulnerabilities, which stem from relatively high fiscal deficits
and the exposure of the banking system to currency risk," said
Mr. Francis. "Despite the rebound in economic growth beginning
in 2003, Costa Rica's general government deficit remains high
and will likely hit 4.6% of GDP in 2004 due to the fact that
temporary tax measures enacted at end-year 2002 have ended. The
higher general government fiscal deficits have increased
policymakers' reliance on monetary policy as the primary method
for maintaining macroeconomic stability," he added.

Mr. Francis explained that high interest rates have led to the
higher cost of servicing a growing general government debt and
has encouraged domestic agents, most worryingly those without
hard currency earnings, to take long-term dollar loans. In
addition, weak external liquidity and the recent rapid growth in
domestic credit, much of it in foreign currency, increase the
risk inherent in the central bank's crawling peg exchange-rate
regime.

"Failure to implement tax measures in order to lower the fiscal
deficit, along with measures to strengthen the country's
monetary and financial regulatory framework, would likely lead
to downward pressure on the government's credit rating," Mr.
Francis noted. "While fiscal reform would help lower interest
rates and discourage further dollarization, a fractured Congress
has complicated the negotiations for a reform package and rigid
government finances provide little flexibility to cut
expenditure," he concluded.

CONTACT: Analyst
         Mr. Richard Francis
         New York
        (1)-212-438-7348

         Ms. Lisa M Schineller
         New York
        (1) 212-438-7352



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

AES DOMINICANA: Government Turns to CDEE Books to Solve Dispute
---------------------------------------------------------------
Dominican Republic Finance Minister Rafael Calderon proposed to
settle the dispute between bankrupt power distributor AES
Dominicana and the administration by reviewing the records of
public power utility CDEE.

In a Finance Ministry communique cited by DRI Daily news, Mr.
Calderon claimed that CDEE recorded energy sales to AES
Dominicana in excess of US$22 million. The minister further
stated that if the accounts were reconciled, it would show that
AES actually owes the government a sum of US$65 million.

The Associated Press recently reported that officials of AES
Dominicana have accused the government of withholding payments
for a US$22-million debt that has resulted in the shutting down
of its power plant.

While the administration agrees that the departure of the AES
Dominicana plants from the national grid was due to a shortage
of funds to purchase fuel, it has consistently argued that this
was not the fault of the authorities.


COGENTRIX: Primed to Re-ignite Plants With $5.8 Million Payment
---------------------------------------------------------------
A recent US$5.8 million payment made by the Dominican Republic
government to impoverished electric producer Cogentrix may help
reverse the burgeoning electricity problem in the country. The
cash infusion is expected to re-ignite the company's three
plants serving San de Macoris until the government handover
slated on August 16.

In a DRI Daily News article, Finance Minister Rafael Calderon
assured that "... in the next few days electric service will
already be much better than what we have had in recent days."
Mr. Calderon mentioned this in reference to the injection of
100MW of power from Haina and 125MW from the Itabo plant that is
currently connected to Smith-Enron's facilities.



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

* World Bank Aids Honduras' Anti-Poverty Scheme With $87M Loan
--------------------------------------------------------------
The World Bank approved on June 24, 2004 three zero-interest
credits for a total of $87 million to support Honduras's poverty
reduction strategy, as well as boost rural productivity, and
promote the sustainable management of natural resources.

"The credits approved on Thursday support Honduras's
comprehensive program to create conditions that are paramount to
sustained growth, increased productivity, and lifting people out
of poverty", said Jane Armitage, the World Bank's Country
Director for Central America.

"We are very pleased with the progress being made to implement
the Poverty Reduction Strategy's ambitious program of improving
the investment climate, increasing the efficiency and impact of
human capital expenditures and strengthening governance and
transparency throughout the public sector."

The $58.8 million Poverty Reduction Support Credit (PRSC) will
support pro-poor growth, human development and social protection
programs, as well as enhanced public sector management, and
environmental sustainability.

Financing from the credit aims to:

- Support reforms to increase competitiveness, promote new
investment, and increase employment opportunities in rural and
urban areas. The PRSC will support improved quality and expanded
access in the delivery of key infrastructure services, such as
telecommunications and power. In addition, the PRSC will support
the government's implementation of the Administration
Simplification Law (2002) which aims to lower the costs and
barriers for business development and operation and strengthen
property rights.

- Increase the impact and efficiency of resources devoted to
social and infrastructure services, such as education, health,
nutrition and social protection, and water and sanitation by
improving the quality and coverage of services, reducing
urban/rural inequalities, and empowering beneficiaries through
greater community control of basic services.

- Strengthen governance and public sector management, and
improve management of the environment through policy and
institutional reforms, including the implementation of an
integrated financial management system (SIAFI), and
strengthening of the management of Honduras' protected areas.

A complementary $8 million credit for the Poverty Reduction
Support Technical Assistance Project is designed to strengthen
institutional capacity of the government to plan, manage,
monitor and evaluate the Poverty Reduction Strategy and aims to:

- Increase participation among stakeholders in the design and
execution of poverty reduction programs;

- Improve public sector performance and the delivery of public
services; and

- Strengthen the Government's fiscal, financial, and fiduciary
management.

Forests and Rural Productivity Project

A third credit for $20 million was approved on Thursday to
generate income opportunities and reduce poverty in rural areas
while promoting the sustainable management of natural resources.
The project will directly benefit 25,000 households and create
40,000 jobs in 36 municipalities in the departments of El
ParaĦso, Francisco Moraz n, Olancho and Yoro.

The project includes the following components:

- Community forestry: demand-driven subprojects will improve the
welfare of about 220,800 rural poor inhabitants occupying forest
lands by increased household food security, market production
and access to markets, and improved natural resources
management.

- Forest management, tenure and conservation: forest management
planning and protection, scaling-up the regularization of
property rights of people living in national forest lands.

- Local government and disaster preparedness:  reduce
environmental risks to natural phenomena by supporting zoning
and vulnerability planning.

- Participatory planning: increase capacity at the municipal and
regional levels of government to increase participation among
stakeholders.

The three credits from the International Development Association
are repayable in 30 years, including ten years of grace.

CONTACTS: Mr. Lee Morrison
         (202) 458-8741
         Lmorrison1@worldbank.org

         Ms. Alejandra Viveros
         (202) 473-4306
         Aviveros@worldbank.org



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

CYDSA: Fails to Make Interest Payment on $159M Debt
---------------------------------------------------
Mexican chemical and textile company Cydsa missed a US$7.5
million interest payment Wednesday, reports Business News
Americas.

In a statement to Mexico City's bourse, the Company said that
the interest payment was on debt of US$159 million that carries
annual interest of 9.4% and a 2009 expiration date.

"Cydsa is continuing work to develop a long-term financial
solution," the filing said.

Earlier this month, the Monterrey-based company, announced it
was transferring 60% of its share capital to holders of Cydsa
notes for the US$159 million in debt.

If the move receives regulatory approval, it will be the first
time that international bondholders have obtained majority
ownership of a company listed on the Mexican stock market as
part of a debt restructuring.

CONTACT:  CYDSA, S.A. DE C.V.
          Jesus Montemayor, Treasury Director
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


EMPRESAS ICA: Notice Of 3rd Issuance Of Non-Amortizing CPOs
-----------------------------------------------------------
Empresas ICA Sociedad Controladora (NYSE and BMV: ICA), makes
known to the investing public that Banco Nacional de Mexico,
S.A., a Multiple Banking Institution, part of Grupo Financiero
Banamex, in its fiduciary capacity, has carried out a third
issuance of non-amortizing Ordinary Participation Certificates
("CPOs") for the shares representing the equity capital of
Empresas ICA Sociedad Controladora, S.A. de C.V., in the maximum
amount of 1,243,122,866 (one billion, two hundred forty-three
million, one hundred twenty-two thousand, eight hundred sixty-
six) CPOs.

The referenced issuance of CPOs was undertaken under the
irrevocable trust contract Number 13400-5 dated May 28, 1997,
established by Banco Nacional de Mexico, S.A., a Multiple
Banking Institution, part of Grupo Financiero Banamex, Trust
Division (formerly the Master Trust for Neutral Investments,
Number 771-1, dated November 24, 1989).

The issuance of the CPOs was undertaken in order to increase the
investor base of Empresas ICA Sociedad Controladora, S.A. de
C.V. and to allow for the participation of foreign investors.

Founded in 1947, ICA has completed construction and engineering
projects in 21 countries. ICA's principal business units include
Civil Construction, and Industrial Construction. Through its
subsidiaries, ICA also develops housing, manages airports, and
operates tunnels, highways, and municipal services under
government concession contracts and/or partial sale of long term
contract rights.



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

BWIA: Seeks Re-certification From CAA
-------------------------------------
BWIA is currently working on its re-certification with the T&T
Civil Aviation Authority, according to Works and Transport
Minister Franklin Khan.

In a Trinidad Guardian report, Khan and BWIA corporate general
manager Nelson Tom Yew indicated that the airline must be re-
certified under new and more stringent local civil aviation
regulations before T&T can be formally assessed by the US
Federal Aviation Administration to determine if this country can
regain Category One status.

The Guardian said BWIA has been unable to acquire any additional
flight routes in the US since the FAA downgraded T&T to Category
Two status in 2001 for failing to meet specific International
Civil Aviation Organisation standards. An airline headquartered
in a downgraded country can only fly its existing routes to the
US until that country regains its Category One status.

Officials from the FAA were in T&T six weeks ago to examine the
progress of T&T's efforts to regain Category One status.

A source said the FAA officials were satisfied with the results
but noted that the FAA must still conduct a formal International
Aviation Safety Assessment (IASA), which T&T must pass in order
to regain Category One.

"BWIA must be shown to be in compliance with the new
regulations. In order for us to become Category One the FAA has
to do a safety assessment of T&T. Before they do that, BWIA must
be re-certified," the source said.

BWIA must be re-certified before September 24.

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



                            ***********


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

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