TCRLA_Public/040630.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

             Wednesday, June 30, 2004, Vol. 5, Issue 128

                            Headlines

A R G E N T I N A

ALIMENTOS FARGO: Two Weeks To ARS96.5Mln AFIP Payment Deadline
AGEA: Bonds Retain `BB' Rating
AGROMEAT: Court Changes Bankruptcy to Reorganization
ARCOMEX: Court Deems Bankruptcy Necessary
ARTES GRAFICAS: Seeks Bankruptcy Protection

AUTOMOTORES CASILDA: Court Declares Company Bankrupt
AUTOMOTORES RIVADAVIA: Enters Reorganization on Court Orders
CABLEVISION: Fitch Maintains Junk Rating on $1.5B in Bonds
CONSTRUCCIONES RIZZO: Receives Court Bankruptcy Order
ESTABLECIMIENTOS MALVINAS: Court Orders Liquidation

FRIGORIFICO AVICOLA: Files Petition to Reorganize
GOMERIAS RUBIO: Court Changes Order to Reorganization
INDUSTRIAS PLASTICAS: Enters Bankruptcy on Court Orders
JARDIN MATERNO: Liquidates Assets to Pay Debts
MILLENIUM TRUST: Bonds Get Below Investment Grade Ratings

MULTICANAL: $1.3B of Bonds Retain Junk Status
ONTARIO GROUP: Set To Reorganize After Debt Default
SANCOR: S&P Leaves Rating Unchanged
SCP: $400M of Bonds Retain Junk Rating from Local Fitch
SOLAVI: Court Rules for Liquidation

T.C.S. S.A.: Verification Deadline Approaches
TGN: Local S&P Reaffirms `raD' Rating on Bonds
THE WALL: Court Finalizes Report Submission Schedules
VINTAGE PETROLEUM: To Acquire Producing Properties in Argentina
VINTAGE PETROLEUM: Ratings Unaffected By Acquisition Says S&P

* Argentina Faces Class Action Suit Over $88 Billion Default


B E R M U D A

ANNUITY & LIFE: Receives Delisting Notice From NYSE


B O L I V I A

COEUR D'ALENE: Reports Favorable Feasibility Study Update


B R A Z I L

ACESITA: Arcelor Consolidates its Controlling Position in CST
AES CORP.: Completes Remaining Brazil Debt Restructuring
BANCO DO BRASIL: Fitch Upgrades Ind. L/T Local Currency Ratings
NET SERVICOS: Not Counting on Telmex Deal to Seal Debt Accord


C H I L E

ENAMI: Codelco Head Attempts to Appease Dissenting Miners


C O L O M B I A

CHIQUITA BRANDS: Finalizes Colombian Operations Sale


P E R U

PAN AMERICAN SILVER: Sells Peruvian Assets for $3.65M


V E N E Z U E L A

PDVSA: S&P Places PDVSA Finance Rating on CW Neg.
PDVSA: Moody's Affirms Caa1 FC Rating on PDVSA Finance's Notes

                            
     -  -  -  -  -  -  -  -


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

ALIMENTOS FARGO: Two Weeks To ARS96.5Mln AFIP Payment Deadline
--------------------------------------------------------------
Argentine bakery chain Compania de Alimentos Fargo SA announced
Monday that it has been ordered by the tax agency AFIP to pay
about ARS96.5 million in back taxes and fines relating to tax
withholdings for foreign bondholders, relates Dow Jones
Newswires.

In a filing with the local stock exchange, the Company said that
the AFIP gave it 15 working days to make the payment but Fargo
said it will take all measures "necessary for the legitimate
defense of its rights and interests."

Alimentos Fargo stumbled upon this problem when Mexican
confectioner Grupo Bimbo SA said last year it was buying a 30%
stake in Fargo from Mexican businessman Fernando Chico Pardo,
whose investment vehicle took control of the Argentine company
after assuming a US$30 million debt owed to Deutsche Bank Trust
Co. Argentina's antitrust authorities haven't yet approved the
sale to Bimbo, which already controls 20% of the packaged bread
market. Fargo has a 50% market share.


AGEA: Bonds Retain `BB' Rating
------------------------------
Fitch Argentina Calificadora de Riesgo S.A., the Argentine arm
of international ratings agency Fitch Ratings, maintains a `BB'
rating on corporate bonds issued by Arte Grafico Editorial
Argentino S.A. (AGEA), says the Comision Nacional de Valores
(CNV), Argentina's securities regulator

The rating, which was determined based on the Company's
financial health as of March 31, 2004, affected the following
bonds:

- US$30.6 million worth of "Serie C -ON a Tasa Fija creciente"
with undisclosed maturity date;

- US$83.72 million worth of "Obligaciones Negociable SERIE B por
hasta U$S 83.72 MM (2011)" with undisclosed maturity date; and

- US$600 million worth of "obligaciones negociables" with
undisclosed maturity date.


AGROMEAT: Court Changes Bankruptcy to Reorganization
----------------------------------------------------
Agromeat S.A. will proceed with reorganization after a Buenos
Aires Court converted the Company's ongoing bankruptcy case into
a "concurso preventivo", states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents Agromeat's outright liquidation.

Mr. Miguel Angel Loustau, the court-appointed trustee, will
verify creditors' proofs of claim until August 13, 2004.
Creditors with unverified claims cannot participate in the
Company's settlement plan.

CONTACT: Mr. Miguel Angel Loustau, Trustee
         Viamonte 993
         Buenos Aires

           
ARCOMEX: Court Deems Bankruptcy Necessary
------------------------------------------
Arcomex S.A., which was undergoing reorganization, entered
bankruptcy on orders from the Buenos Aires civil and commercial
tribunal. Infobae relates that the court appointed Mr. Walter
Arturo Calleja, to oversee the case as trustee. He will conduct
the credit verification process "por via incidental."

CONTACT: Arcomex S.A.
         Morellos 63
         Buenos Aires
   
         
ARTES GRAFICAS: Seeks Bankruptcy Protection
-------------------------------------------
Buenos Aires-based Artes Graficas Sifer S.R.L. voluntarily filed
for bankruptcy at the city's civil and commercial tribunal after
failing to meet its debt obligations.

After the court approves the Company's bankruptcy petition,
control of its assets will be turned over to a trustee who will
supervise the liquidation.

CONTACT: Artes Graficas Sifer S.R.L.
         Carhue 2141
         Buenos Aires


AUTOMOTORES CASILDA: Court Declares Company Bankrupt
----------------------------------------------------
A Buenos Aires court declared Automotores Casilda S.A.C.I. y F.
bankrupt, reports Infobae. The Company was undergoing
reorganization when the ruling was issued.

The trustee, Mr. Walter Arturo Calleja, will verify claims "por
via incidental", as the court ordered. The trustee will also be
responsible for the individual and general reports to be
submitted after the verification period.

CONTACT: Automotores Casilda S.A.C.I. y F.
         Montevideo 1215
         Rosario, Santa Fe

      
AUTOMOTORES RIVADAVIA: Enters Reorganization on Court Orders
------------------------------------------------------------
Automotores Rivadavia S.A.C.I., which was previously served with
a liquidation order, will proceed with reorganization. According
to Infobae, the court assigned Mr. Walter Arturo Calleja as
trustee for the case. The credit verification process will be
done "por via incidental", adds the report.

CONTACT: Automotores Rivadavia S.A.C.I.
         Avda Rivadavia 6109
         Buenos Aires


CABLEVISION: Fitch Maintains Junk Rating on $1.5B in Bonds
----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a `D(arg)'
rating on US$1.5 billion worth of corporate bonds issued by
Cablevision S.A., the largest Argentine cable operator.

In its official Web site, the CNV reveals that the rating action
affected bonds described as "obligaciones negociables simples."
The maturity date of such issue wasn't disclosed.

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

CONTACT:  Santiago Pena
          (5411) 4778-6520
          E-mail: spena@cablevision.com.ar

          Martin Pigretti
          (5411) 4778-6546
          E-mail: mpigretti@cablevision.com.ar

Web site: http://www.cablevision.com.ar


CONSTRUCCIONES RIZZO: Receives Court Bankruptcy Order
-----------------------------------------------------
A local court in Buenos Aires has issued a pronouncement opening
the liquidation of Construcciones Rizzo Inmobiliaria
S.A.C.I.F.I., states Infobae. The bankruptcy order paves the way
for the transfer of control of the Company's assets to a court-
appointed trustee who will supervise the liquidation
proceedings.

CONTACT: Construcciones Rizzo Inmobiliaria S.A.C.I.F.I.
         Lautaro 1356
         Buenos Aires


ESTABLECIMIENTOS MALVINAS: Court Orders Liquidation
---------------------------------------------------
Establecimientos Malvinas S.R.L. prepares to wind up its
operations following the bankruptcy pronouncement issued by the
Buenos Aires civil and commercial tribunal. The declaration
effectively prohibits the Company from administering its assets,
control of which will be transferred to a court-appointed
trustee.

Infobae reports that the court selected Mr. Jose Maria Colace as
trustee. He will be reviewing creditors' proofs of claim until
August 17, 2004. The verified claims will be the basis for the
individual reports to be presented for court approval on
September 28, 2004. Afterwards, the trustee will also submit a
general report on November 9, 2004.

CONTACT: Mr. Jose Maria Colace, Trustee
         Avda Cordoba 652
         Buenos Aires

  
FRIGORIFICO AVICOLA: Files Petition to Reorganize
-------------------------------------------------
Frigorifico Avicola Basavilbaso S.A. filed a motion for
reorganization under the Buenos Aires civil and commercial
tribunal, states Infobae. Once approved by the court, the
Company will be able to outline a payment scheme for its
creditors so as to avoid a straight liquidation. The Company is
seeking to reorganize its finances after defaulting on its debt
payments.

CONTACT: Frigorifico Avicola Basavilbaso S.A.
         Lavalle 1447
         Buenos Aires


GOMERIAS RUBIO: Court Changes Order to Reorganization
-----------------------------------------------------
The civil and commercial tribunal of Buenos Aires has converted
the liquidation order placed against Gomerias Rubio S.A.C.E. I.
into a reorganization, says Infobae.

Mr. Walter Arturo Calleja, the trustee appointed to supervise
the reorganization, will conduct the credit verification process
"por via incidental."

CONTACT: Gomerias Rubio S.A.C.E. I.
         Avenida Rivadavia 5991
         Buenos Aires


INDUSTRIAS PLASTICAS: Enters Bankruptcy on Court Orders
-------------------------------------------------------
Industrias Plasticas de las Des S.R.L. will enter bankruptcy
protection after a local court in Buenos Aires 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 Mr. Luis Ricardo Kralj will serve as
trustee for the case. He will be verifying creditors' proofs of
claim until the end of the verification phase on August 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 October 11, 2004 followed by the general report, which is due
on November 22, 2004.

CONTACT: Mr. Luis Ricardo Kralj, Trustee
         Bouchard 468
         Buenos Aires
           

JARDIN MATERNO: Liquidates Assets to Pay Debts
----------------------------------------------
Buenos Aires-based Jardin Materno Infantil New Garden S.R.L.
will begin liquidating its assets following the bankruptcy
declaration issued by a local court, reports Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Ms. Maria Cenatiempo. The trustee
will verify creditors' proofs of claim until July 16, 2004.
Afterwards, the validated claims will be presented to court as
individual reports on September 9, 2004.

Ms. Cenatiempo 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 22, 2004.

The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.

CONTACT: Ms. Maria Cenatiempo, Trustee
         Avenida de Mayo 1365
         Buenos Aires


MILLENIUM TRUST: Bonds Get Below Investment Grade Ratings
---------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned an `raB' rating on the following Millenium Trust
securities:

- US$5 billion worth of "Titulos de Deuda Tipo C" that came due
on Nov. 2002; and

- US$5 billion worth of "Certificados Tipo C" with undisclosed
maturity date.  

An `raB' rating denotes that the bonds face exposure to adverse
business or economic conditions, which could lead to the
issuer's inadequate capacity to meet its financial commitment,
said the ratings agency.

At the same time, the ratings agency assigned an `raD' rating on
the following Millenium Trust securities:

- US$5 billion worth of "Titulos de Deuda Tipo A" with
undisclosed maturity date;

- US$5 billion worth of "Certificados Tipo A" with undisclosed
maturity date;  


MULTICANAL: $1.3B of Bonds Retain Junk Status
---------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. reaffirmed the
`D(arg)' rating on US$1.3 billion worth of corporate bonds
issued by Multicanal S.A., the CNV reports.

The bonds affected are:

- US$1.05 billion worth of "obligaciones negociables" with
undisclosed maturity date;

- US$125 million worth of "obligaciones negociables simples"
with undisclosed maturity date; and

- US$125 million worth of "obligaciones negociables" with
undisclosed maturity date.

Fitch gave the rating based on Multicanal's financial condition
as of March 31, 2004


ONTARIO GROUP: Set To Reorganize After Debt Default
---------------------------------------------------
The Buenos Aires civil and commercial tribunal is currently
reviewing the merits of the "concurso preventivo" motion filed
by the Ontario Group S.A. Infobae recalls that the Company opted
to undergo insolvency protection after failing to pay its
liabilities.

CONTACT: Ontario Group S.A.
         Suipacha 190
         Buenos Aires


SANCOR: S&P Leaves Rating Unchanged
-----------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains an 'raD' rating on corporate bonds issued by Sancor
Coop. Unidas Ltda., according to the CNV.

The rating action, which was determined by the Company's
financial status as of March 31, 2004, affects the following
bonds:

-- US$300 million worth of "Programa de Obligaciones
Negociables" maturing on April 23, 2006;

-- US$19 million worth of "Serie 2, bajo el Programa de Ons. por
U$S 300 millones" maturing on January 27, 2004; and

-- US$75.8 million worth of "Serie 3, bajo el Programa de Ons.
por U$S 300 millones" maturing on January 27, 2004.

The ratings agency said that an obligation is rated 'raD' when
it is in payment default of the obligor has filed for
bankruptcy.
  

SCP: $400M of Bonds Retain Junk Rating from Local Fitch
-------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a `D(arg)'
rating on US$400 million worth of corporate bonds issued by
Sociedad Comercial del Plata S.A. (SCP).

The CNV relates that the rating was given based on the Company's
finances as of March 31, 2004. The issue, which has an
undisclosed maturity date, is described as "Obligaciones
Negociables."

SCP is controlled by Argentine businessman Santiago Soldati.


SOLAVI: Court Rules for Liquidation
-----------------------------------
A judge from the Buenos Aires civil and commercial tribunal
ordered the liquidation of Solavi S.A. after the Company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement places the Company's affairs as well as its assets
under the control of Mr. Abraham Alberto Forman, the court-
appointed trustee.

Mr. Forman will verify creditors' proofs of claim until August
25, 2004. The verified claims will serve as basis for the
individual reports to be submitted to court on October 6, 2004.
The submission of the general report follows on November 18,
2004.

CONTACT: Solavi S.A.
         Presidente Roque Saenz Pena 570
         Buenos Aires

         Mr. Abraham Alberto Forman, Trustee
         Carabobo 64
         Buenos Aires


T.C.S. S.A.: Verification Deadline Approaches
---------------------------------------------
The verification of claims for the T.C.S. S.A. bankruptcy will
end on August 13, 2004 according to Argentine daily Infobae.
Creditors with claims against the bankrupt company must present
proof of the liabilities to Mr. Jorge Stanislavsky, the court-
appointed trustee, before the stated deadline.

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

CONTACT: T.C.S. S.A.
         Avenida Julio A. Roca 751
         Buenos Aires

         Mr. Jorge Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires


TGN: Local S&P Reaffirms `raD' Rating on Bonds
----------------------------------------------
The Argentine arm of Standard and Poor's International Ratings,
Ltd. reaffirmed the `raD' rating on bonds issued by
Transportadora de Gas del Norte, the CNV says.

The rating, taken based on the Company's financial health as of
March 31, 2004, affects the following bonds:

-- US$24 million worth of "Serie V, con vencimiento en junio de
2003, emitada bajo el programa Global de Ons simples (USD300
Mio) vencido en 03.99" coming due on June 1, 2004;

-- US$60.5 million worth of "Serie VI emitada bajo el Prorama
Global de Ons Simples por un monto de US$320 mm" coming due on
September 1, 2008;

-- US$20 million worth of "Serie VII, con vencimiento en marzo
de 2003, emitada bajo el Programa Global de Ons simples (US$300
Mio)," which came due on March 3, 2003;

-- US$20 million worth of "Serie I emitada bajo el Programa
Global de Ons Simples por un monto de US$320 million" coming due
on July 1, 2009;

-- US$154.5 million worth of "Serie II emitada bajo el programa
Global de Ons Simples por un monto de US$320 million" coming due
on August 1, 2008;

-- US$10.7 million worth of "Serie III emitada bajo el programa
Global de Ons Simples por un monto de US$320 million" coming due
on July 1, 2009;

-- US$50 million worth of "Serie III, con vencimiento en octubre
de 2004, emitada bajo el Programa Global de Obligaciones simples
(USD 300 Mio) vencido en 03.99" coming due this October 1, 2004;

-- US$9.3 million worth of "Serie IV emitada bajo el Programa
Global de Ons Simples por un monto de US$320 mm" maturing on
July 1, 2009; and

-- US$46 million worth of "Serie IV, con vencimiento en junio de
2002, emitida bajo el Programa Global de ONs simples (USD 300
Mio) vencido en 03.99" that came due on June 3, 2002.

CONTACT:  TRANSPORTADORA DE GAS DEL NORTE (TGN)
          Don Bosco 3672, (C120ABF) Buenos Aires, Argentina.
          Phone: (+54 11) 4959-2000
          Fax: (+54 11) 4959-2242
          Home Page: www.tgn.com.ar/

  
THE WALL: Court Finalizes Report Submission Schedules
-----------------------------------------------------
The Buenos Aires civil and commercial tribunal expects to
receive the individual reports pertaining to The Wall S.A.'s
ongoing bankruptcy on October 19, 2004.

After submitting the individual reports, the court-appointed
trustee, Ms. Carina Silvia Bianchi will present the general
report on November 30, 2004.    

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

CONTACT: The Wall S.A.
         Avenida Rivadavia 11446
         Buenos Aires

         Ms. Silvia Bianchi
         Paraguay 729
         Buenos Aires

     
VINTAGE PETROLEUM: To Acquire Producing Properties in Argentina
---------------------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Monday the signing
of an agreement to acquire producing properties in the San Jorge
basin of Argentina for $36.4 million cash net of working capital
as of the transaction's April 1, 2004, effective date. The
agreement calls for Vintage to acquire 100 percent of the
wholly-owned Argentine subsidiary of Rio Alto Resources
International, Inc. (Calgary, Alberta) whose principal asset is
an operated producing concession which covers approximately
54,000 acres in the north flank of the basin. The transaction is
anticipated to close on August 13, 2004, subject to approval of
Rio Alto's shareholders and normal due diligence.

Current net production attributable to the producing Bella Vista
Oeste concession is estimated at 1,900 barrels of oil and
natural gas liquids per day from approximately 50 active
producing wells. Vintage believes the properties contain
significant workover, drilling and waterflood potential which it
plans to pursue along with the implementation of operational
efficiencies.

"These properties provide us with an initial entrance into the
north flank of the San Jorge Basin, complementing our existing
acreage position in excess of over one million acres in the
southern portion of the basin. The acquired properties are a
logical extension to our existing property base and contain
similar geology and well established, predictable production
decline curves. These properties also provide Vintage with the
type of operational and work program opportunities in which we
have excelled historically," said Charles Stephenson, CEO. "In
anticipation of this transaction, we added oil price hedges
covering approximately 1,400 barrels of oil per day through the
first quarter of 2007 at monthly NYMEX reference prices ranging
from $41.46 to $31.31 per barrel to assist in protecting
acquisition returns."

Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation and exploration of oil and gas
properties and the marketing of natural gas and crude oil.
Company headquarters are in Tulsa, Oklahoma, and its common
shares are traded on the New York Stock Exchange under the
symbol VPI.

Web site: http://www.vintagepetroleum.com


VINTAGE PETROLEUM: Ratings Unaffected By Acquisition Says S&P
-------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that the ratings
and outlook on Vintage Petroleum Inc. (BB-/Negative/--) would
remain unchanged following the company's announcement that it
plans to acquire producing properties in Argentina for $36.4
million. Standard & Poor's views such a purchase as modestly
unfavorable in that it increases the company's exposure to
operational and political risks in Argentina. On the other hand,
the production Vintage will gain from this acquisition will
offset lost volumes the company would suffer should it complete
a contemplated sale of its Canadian operations. In the longer
term, management's willingness to narrow the company's
operational focus, including increasing the proportion of U.S.
assets in its reserves, could result in rating stability and
eventually rating improvement.

CONTACT: Ben Tsocanos, New York


* Argentina Faces Class Action Suit Over $88 Billion Default
------------------------------------------------------------
A group of bondholders filed Monday a proposed class-action suit
against the Argentine government, bringing the fight over the
country's default of $88 billion in bonds to the U.S. courts.
Once approved by the court, the proposed class would cover more
than five hundred thousand investors primarily from Italy,
Germany, France and the United States who purchased the
government-issued bonds.

This move will almost certainly raise the stakes in the standoff
between Buenos Aires and the bondholders. If successful, the
case would allow bondholders to seize Argentine government
assets in the United States and use those assets to repay
bondholders.

Filed in U.S. District Court in New York, the complaint states
that the moratorium on foreign debt declared by Argentina on
December 23, 2001 and its subsequent lack of payment on bonds
constitutes a default of the bond agreement made between the
government and its bondholders.

This is the first major suit seeking a global settlement for all
purchasers of Argentine bonds. The complaint seeks compensation
for damages sustained by bondholders and payment of the cost of
suit fees incurred by bondholders.

"The majority of these investors were individuals investing
their retirement funds, not savvy institutional investors
seeking a quick profit," said Steve Berman, lead attorney
representing the bondholders. "But just because they're small,
doesn't mean that they are powerless. This suit proves that, and
we intend to use the power of the class-action mechanism to turn
these investors into a nation state that can stand up to
Argentina."

During the late 1990s thousands of individual investors helped
revive and stabilize Argentina's struggling economy by
purchasing government-issued bonds, with the promise that the
Argentine government would make payments on the debt securities
in U.S. dollars in New York. However, when the government
declared a moratorium, it reneged on its agreement to pay the
full principal and interest as detailed in various bond
agreements, according to the suit.

"The Argentine government made a clear and binding agreement
with bondholders to pay principal and interest at due times,"
said Berman. "The government's moratorium and unwillingness to
negotiate with bondholders on the issue made it evident that it
did not intend to honor its contract, and that we in turn would
have to use litigation to get their attention."

If the court finds that the Argentine government illegally
defaulted on the bonds, its commercial assets in the United
States, including bank accounts and state-owned companies, could
be seized and used to compensate class members.

The proposed class includes all investors who purchased and held
Argentine bonds prior to December 23, 2001.

The Argentine government's default is the largest in history,
with the aforesaid bond debt alone totaling $99.4 billion
including interest. Argentina's default has had a widespread
effect on the personal finances of investors around the world,
and many bondholders have suffered extreme financial loss due to
their trust that the Argentine government would uphold its
agreement, the suit claims.

Since defaulting on its foreign debt in 2001, Argentina has
sought to negotiate with various creditors. However, according
to Berman, the government has been unwilling to participate in
good faith negotiations, despite an agreement with the
International Monetary Fund (IMF) to do so. Recently, Argentina
offered new securities that would leave investors with a loss of
75 cents per $1 of defaulted debt.

Economic analyst for Austrian-based Raiffeisen Research,
Gintaras Shlizhyus, says that without pressure from investors
and the IMF the Argentine government is unlikely to improve its
offer. According to Shlizhyus, Argentina has showed a resolute
"unwillingness to pay" bondholders and may not do so "unless
forced to a table with a gun to its head."

According to Berman, the outcome of the case will not only send
a message to the Argentine government of what the international
economic community expects of its current and future agreements,
it will also communicate a precedent of acceptable economic
practices for other indebted countries.

About Hagens Berman

Steve Berman is managing partner of Hagens Berman, a law firm
with offices in Seattle, Boston, Los Angeles and Phoenix.
Recently named co-lead counsel in litigation to recover losses
from Enron employees' retirement funds, Berman is a nationally
recognized expert in class action and antitrust litigation.
Berman represented Washington and 13 other states in lawsuits
against the tobacco industry that resulted in the largest
settlement in the history of litigation and placed advertising
restrictions on the industry. Berman also served as counsel in
several other high-profile cases including the Washington Public
Power Supply litigation, which resulted in a settlement of more
than $850 million, and the $92.5 million settlement of The
Boeing Company litigation. Hagens Berman was co-lead counsel in
the largest antitrust settlement in history, In re
Visa/MasterCard Debit Litigation, and Steve Berman was just
named lead trial counsel in IRI v. A.C. Neilsen, et al., a large
antitrust action in the Southern District of New York.

CONTACTS: Mr. Steve Berman
          206-623-7292
          Hagens Berman
          steve@hagens-berman.com

          Mr. Mark Firmani
          206-443-9357
          Firmani & Associates, Inc.
          mark@firmani.com

          Web Site: www.hagens-berman.com



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

ANNUITY & LIFE: Receives Delisting Notice From NYSE
---------------------------------------------------
Annuity and Life Re (Holdings), Ltd. announced Monday that it
has received a notice from the New York Stock Exchange stating
that the Company is not in compliance with the NYSE's continued
listing standards, because the average closing price of the
Company's common shares has been below $1.00 for a 30
consecutive trading day period.

Because this is the second time the Company's common share price
has not satisfied the NYSE's continued listing standards, the
Company must submit definitive guidance to the NYSE
demonstrating its ability to bring its share price and average
share price back above $1.00 within a cure period to be agreed
upon with the NYSE.

The Company intends to respond promptly to the NYSE's
notification and cooperate fully with the NYSE in satisfying its
obligations. If the NYSE does not accept the Company's response,
or if the Company cannot satisfy the $1.00 share price
requirements within the agreed upon cure period, the NYSE has
indicated that it will commence suspension and delisting
procedures with respect to the Company's common shares.

In order to satisfy the NYSE's share price requirements, the
Company is evaluating certain strategic alternatives and is
continuing its efforts to stabilize its operations and resolve
certain significant contingencies.

In addition, as described in the Company's preliminary proxy
statement filed with the SEC on June 18, 2004, the Company will
be submitting to its shareholders at its August 5, 2004 annual
general meeting two proposals that, if approved, will allow the
Company's Board of Directors to implement a reverse stock split
by way of a consolidation of the Company's common share capital
at a specified ratio within a range of one-for-two to one-for-
twenty.

While the Board believes the reverse stock split will raise the
average closing price of the Company's common shares above
$1.00, there can be no assurance that such minimum price, if
achieved, can be maintained. In addition, even if such minimum
price is achieved and maintained, there can be no assurance that
the Company will be able to continue to meet the NYSE's other
qualitative or quantitative listing standards for continued
listing.

As noted above, the Company has filed a preliminary proxy
statement concerning the reverse stock split, and a definitive
proxy statement will be filed with the SEC and distributed to
the Company's shareholders. Investors are urged to read the
definitive proxy statement when it becomes available, because it
will contain important information. The Company and its
directors and executive officers may be deemed to be
participants in the solicitation of proxies from the
shareholders in connection with the reverse stock split.

CONTACT: Annuity and Life Re (Holdings), Ltd.
         Mr. John Lockwood
         Investor Relations
         P.O. Box HM 98, Hamilton, HM AX
         Bermuda
         Telephone: (441) 296-7667)



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B O L I V I A
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COEUR D'ALENE: Reports Favorable Feasibility Study Update
---------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE) the world's largest
primary silver producer and a growing gold producer, announced
Monday updated results from its feasibility studies at its two
major development projects, showing improved economics at both
the San Bartolome (Bolivia) silver project and the Kensington
(Alaska) gold project.

"Based on updated, independent feasibility work on San Bartolome
and Kensington, we are pleased to report improved construction
and operating parameters at these major development projects,"
said Dennis E. Wheeler, Chairman and Chief Executive Officer.
"At Kensington, the Company's new geologic model has resulted in
an update in the property's mineralized material inventory which
indicates the opportunity for a 50% increase in mine life beyond
the initial 10-year estimate, while capital and operating costs
remain well within previously estimated pre-feasibility
parameters."

"As a result of continued engineering at San Bartolome,
projected capital and operating cost estimates have declined
significantly, with estimated construction costs declining by
20% from earlier feasibility-study estimates, and cash operating
costs declining 5% to $3.55 per ounce of silver," stated Bob
Martinez, President and Chief Operating Officer. "Both projects
provide good returns at current metals prices, and are expected
to increase silver production by 40% and gold production by 75%
over current levels commencing in 2006," Mr. Martinez added.

Mineral Inventory - Kensington (Alaska)

At Coeur's 100%-owned Kensington gold project, located 45 miles
northwest of Juneau, Alaska, updated feasibility work has
defined higher-grade portions of mineralized material to
supplement the 1.0 million ounces of proven and probable gold
reserves. Current reserves measure 4.2 million tons at 0.25
ounces per ton for an estimated 100,000 ounces of production per
year for 10 years.

The higher-grade mineralized material surrounded the main
Kensington Vein System measures an estimated 2.4 million tons
measuring 0.302 ounces per ton.

"This much higher grade of mineralized material indicates a
strong opportunity to increase the Kensington mine life by as
much as 50% beyond our initial estimates, which significantly
enhances project economics," Mr. Martinez said. "Meanwhile, we
still see significant exploration upside potential at both
Kensington and the adjacent Jualin property."

Estimated construction costs are at Kensington are $91.5
million, with projected cash operating costs of $220 per ounce
of gold. The current estimates are within the original estimated
range set by the pre-feasibility.

With the release of the remaining draft permits for public
comment by the EPA, Army Corps of Engineers and the State of
Alaska, all major permits required for construction are now in
the final phases of review and comment. With the release of the
Draft NPDES last week, Alaska Governor Frank Murkowski singled
out Kensington as a major example of cooperation between federal
and state permitting agencies, and an example of a project with
a potential long-term economic impact on the region.

Capital and operating cost reduction at San Bartolome

Based on updated feasibility work by an independent engineering
company, the capital cost of San Bartolome is now estimated at
$105 million, a 20% reduction from previous estimates. In
addition, operating costs are now estimated at $3.55 per ounce
of silver, a reduction of 5% from the $3.75 per ounce level
previously estimated. The reductions in both capital and
operating costs are the result of an initial focus in mining and
processing of the silver ores and replacing filtered tailings
disposal with paste tailings disposal. Ongoing feasibility work
continues to analyze adding a tin plant to the mine to recover
the tin reserves. This additional engineering work is scheduled
for completion in the third quarter.

The mine, which is also 100% Coeur-owned, is expected to produce
approximately six million ounces of silver in its first full
year, increasing to eight million ounces per year. Current
proven and probable reserves measure 123 million ounces of
silver.

Last week, the Vice Ministries of Mining, Environment and
Sustainable Development in Bolivia issued the two final
environmental permits for San Bartolome.

Both Kensington and San Bartolome remain on-track for production
commencing in 2006.

About Coeur d' Alene Mines

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia. In 2004, Coeur expects to produce
133,000 ounces of gold and 14.5 million ounces of silver. The
company also has an active exploration program on its large land
positions at operations in Idaho, Chile and Argentina, and early
stage exploration concessions in Tanzania.

CONTACT: Tony Ebersole, Investor Relations
         800-523-1535



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B R A Z I L
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ACESITA: Arcelor Consolidates its Controlling Position in CST
-------------------------------------------------------------
Arcelor S.A. ("Arcelor") announced it has entered into
definitive, binding agreements with Companhia Vale do Rio Doce
("CVRD") aiming at consolidating the shareholding control of
Companhia Siderurgica de Tubarao ("CST") (the "Transaction") to
be financed via a share capital increase by way of warrants (the
"Capital raising") of approximately EUR 1 billion.

Transaction Summary

Arcelor and CVRD have entered into certain agreements pursuant
to which:

-- Arcelor has agreed to purchase from CVRD, directly and
indirectly, 869,045,672 common shares which are not subject to
the CST Shareholders' Agreement, representing 4.42% of the
voting capital, and 9,381,163,397 preferred shares of CST,
representing 29.96% of the non-voting capital, and other rights
relating to the acquisition of common shares of CST which are
the object of the call option granted by Acesita to CVRD
referred to below, pursuant to the terms and conditions of the
asset purchase agreement (the"Purchase Agreement"). The transfer
of such assets is expected to occur on 15 September, 2004. This
transaction is subject to conditions precedent consistent with a
transaction of this nature, including inter alia approval by
relevant anti-trust authorities;

-- Arcelor and CVRD have agreed to anticipate the call option of
Arcelor and put option of CVRD, granted in March 2003, relating
to the purchase and sale of 4,034,524,170 common shares of CST
held by CVRD and which are subject to the CST Shareholders'
Agreement, representing 20.51% of the voting capital ("CVRD-CST
Put and Call Agreement"), and which may be exercised upon the
satisfaction of a number of conditions precedent consistent with
transactions of its nature; and

-- CVRD has agreed to transfer to Arcelor its rights and
obligations under certain agreements entered into between
Acesita S.A ("Acesita"), CVRD and Arcelor, pursuant to which
Acesita agreed to transfer, upon the satisfaction of certain
conditions precedent, to CVRD, 1,460,138,708 common shares that
Acesita holds indirectly in CST, representing 7.42% of the
voting capital, and which are subject to the CST Shareholders'
Agreement (the "Acesita-CST Put and Call Agreement", and
together with the CVRD-CST Put and Call Agreement, the "Put and
Call Agreements").

The Put and Call Agreements are subject to the satisfaction of
conditions precedent consistent with transactions of that
nature. The options are exercisable upon the earlier of (i) the
termination of the CST Shareholders' Agreement, (ii) the
acquisition by Arcelor of all the ordinary shares subject to the
CST Shareholders' Agreement (other than those held by Acesita
and CVRD) or (iii) the granting of waivers, in a form
satisfactory to Arcelor, in respect of certain pre-emptive
rights of all parties to the CST Shareholders' Agreement.

On 21 May 2004, in accordance with a provision of the CST
Shareholders' Agreement, Acos Planos do Sul S.A., a subsidiary
of Acesita, notified all other parties to the CST Shareholders'
Agreement that it does not wish to renew the existing CST
Shareholders Agreement upon the expiration thereof on 25 May
2005. Such notification could have been delivered, up to 25 May
2004, by any of the parties to the CST Shareholders Agreement.
Accordingly, the current CST Shareholders Agreement will
terminate on that date.

Arcelor shall pay CVRD US$415,133,467.29, in cash, for the total
number of shares of CST and the rights to be purchased under the
Purchase Agreement.

Arcelor shall pay CVRD US$163,398,228.89, in cash, for the total
number of shares of CST to be purchased pursuant to the exercise
of its call option under the CVRD-CST Put and Call Agreements
plus interest thereon at the rate of LIBOR plus 1.50% per annum
less dividends paid on such shares until the exercise of such
option.

On the date hereof, Arcelor holds, directly and indirectly,
4,903,569,842 CST common shares, representing 24.93% of the
voting capital, and 9,381,163,397 CST preferred shares,
representing 29.96% of the non-voting capital. The current
shareholding of Arcelor is equal to 14,284,733,239 shares,
representing 28.02% CST's total share capital.

Following the acquisition of CST common shares indirectly held
by Acesita, pursuant to a call option agreement granted by
Acesita to Arcelor in March, 2003, as announced at that time to
the market, and after the implementation of the Transaction,
Arcelor shall hold directly or indirectly, 12,727,417,100 CST
common shares, representing 64.72% of the voting capital, and
18,762,326,794 CST preferred shares, representing 59.92% of the
non-voting capital, making a total of 31,489,743,894 shares,
which represents 61.77% of the share capital of CST. Following
these transactions, Arcelor shall become the sole controlling
shareholder of CST.

The Transaction's is completion is expected during the second
half of 2005.

Transaction Rationale

The Company considers that the Transaction and the warrants
rights issue provide the following benefits to Arcelor and its
shareholders:

-- Accelerating the consolidation of CST ownership - one of the
lowest cost, high quality steel producers globally

-- Enhances Arcelor's scale and presence in the global carbon
steel market

-- Increases exposure to well invested assets with which Arcelor
is intimately familiar with and which have significant growth
potential

-- Geographic diversification of revenue and earnings streams
towards a more competitive and balanced international portfolio

-- Re-confirms Arcelor's position and commitment to Brazil - one
of the world's most attractive steel making regions

Arcelor is positioned to play a leading role in the
consolidation of the steel industry, both globally and within
Brazil. The Transaction is another major step forward for
Arcelor with respect to growth and investment in Brazilian
steel.

Transaction Background

At present, Arcelor has direct and indirect interests in three
listed entities in Brazil, i.e:

-- a 27.68% interest in Acesita (38.94% interest in the ordinary
capital and 22.04% interest in the preferred capital);

-- a 54.03% interest in Belgo Mineira S.A. ("Belgo Mineira")
(60.60% interest in the ordinary capital and 45.97% interest in
the preferred capital);

-- a 28.02% interest in CST (directly and indirectly, excluding
indirect interest through Acesita, a 24.93% interest in the
ordinary capital and 29.96% interest in the preferred capital);
and

a 75% interest in an unlisted entity, Vega do Sul, the remaining
shares being owned by CST.

Arcelor has a long established presence in, and commitment to
Brazil which is reinforced by the Transaction. Arcelor (through
one of its predecessor companies, Arbed) first invested in Belgo
Mineira in 1920, whilst its investments in Acesita and CST
(through another of Arcelor's predecessor companies, Usinor)
first occurred in 1998. Arcelor's most recent investment of
US$456 million in the Vega do Sul Cold Rolled Coil and
Galvanising plant, a joint venture between Arcelor and CST,
created some 500 jobs. Through Board participation and other
management positions, Arcelor plays a significant role in
determining the strategic, operating and financial policies of
all the above companies.

Arcelor's interests in Brazil represent a core part of its
strategy to remain globally competitive, deploy capital where it
can produce high quality products cost efficiently, serve its
chosen global customer base and create value for its
shareholders.

Deutsche Bank AG London is acting as sole financial advisor to
Arcelor on the Transaction.

Arcelor is the world's largest steel producer, with a turnover
of 25.9 billion euros and shipments of 40.2 million metric
tonnes of steel in 2003. Employing 98,000 employees in 60
countries, the company is a major player in all its main
markets: automotive, construction, household appliances and
packaging as well as general industry. Arcelor places its
commitment to sustainable development at the heart of its
strategy and ambitions to become a benchmark for economic
performance, labour relations, social responsibility and
environmental protection in the world of steel.

If and when a warrants rights issue is announced, as from the
date of such announcement, a prospectus relating to the warrants
and the underlying shares would be made available at the offices
of Arcelor in Luxembourg (19, avenue de la Liberte, L-2930
Luxembourg).

The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the
"Securities Act") and may not be offered or sold within the
United States absent registration or an exemption from
registration.

Arcelor's current investments in Brazil:

Acesita

Acesita is the only integrated producer of flat and long
stainless and silicon steel producer in Latin America and has a
market share of over 90% in Brazil. The company is headquartered
in Belo Horizonte with its main steel making facility located in
Timoteo, Minas Gerais. In 2003, the company produced 850kt of
stainless steel.

Acesita is a totally integrated, low-cost stainless steel
producer with operations spanning the value chain from pig iron
production, produced at its two blast furnaces, through to high
value-add products on which it has an increasing focus. The
company also benefits from an established distribution and
logistics network to serve its markets.

Acesita enjoys significant brand recognition in both the export
(in excess of 50% of sales volume in 2003) and domestic markets.
The company primarily serves the consumer durables, construction
and automotive sectors.

Acesita is a publicly listed company in Brazil with a current
market capitalisation of approximately US$578 million.

Belgo Mineira

Belgo Mineira is an integrated long carbon steel and wire rod
producer. The company is Brazil's largest wire rod producer and
Brazil's second largest long products producer. Belgo Mineira
has annual production of approximately 2.7mt of carbon steel.

Belgo Mineira produces steel at six main sites in Brazil: the
Monlevade, Juiz de Fora and Itauna mills and the Sabara plant in
Minas Gerias, Piracicaba (Sao Paulo) and Vitoria (Espiritu
Santo).

Belgo Mineira is a publicly listed company in Brazil with a
current market capitalisation of US$1.7 billion.

CST

CST is a world leader in the carbon steel custom slab market.
CST is one of the world's lowest cost producers of carbon steel.
In 2003, the company produced 4.8mt of finished slab (capacity
5.0mtpa) and has installed capacity to produce up to 2mtpa of
Hot Rolled Coil ("HRC").

CST is located in the Grande Vitoria region of Espirito Santo
state in South Eastern Brazil with its main facility being
located in Serra. CST is located adjacent to the Praia Mole
port.

CST exports approximately 90% of its production to a variety of
customers in order to serve end markets including the
automobile, appliances, shipbuilding, oil pipeline, civil
engineering and construction sectors.

CST is a publicly listed company in Brazil with a current market
capitalisation of US$1,425 million

Vega do Sul

Located in Sao Francisco do Sul in the State of Santa Catarina
(south of Brazil), Vega do Sul is a steel galvanising project
serving the Brazilian automotive industry. The plant commenced
operations on 27 July 2003 following an investment of US$456
million, and was officially inaugurated on 27 April 2004. The
project is jointly owned by Arcelor (75%) and CST (25%). Total
production for 2004 is estimated at 420kt moving up to its
current installed capacity of 880ktpa by 2005. Capacity may be
further increased up to a potential 1.2mtpa.


AES CORP.: Completes Remaining Brazil Debt Restructuring
--------------------------------------------------------
The AES Corporation (NYSE:AES) announced Monday the final debt
restructuring of its Brazil portfolio, bringing its total
project debt restructuring for the past six months to 2.7
billion. A holding company for AES Sul Distribuidora Gaucha de
Energia S.A. ("AES Sul") reached agreement with its syndicated
lenders to restructure a 316 million loan facility. AES Sul is a
distribution company serving 1,000,000 customers in the state of
Rio Grande do Sul in southern Brazil.

The agreement with the syndicated lenders successfully resolves
all outstanding defaults and extends the term of the facility to
2011 thereby restructuring future payments to match projected
cash flows. The restructuring includes payment of 50 million
under the AES sponsor guarantee. No further support is required
and therefore the remaining 266 million of debt will remain non-
recourse to AES.

AES owns a controlling interest in four Brazilian electricity
companies, AES Eletropaulo, a distribution company serving 5.1
million customers in Sao Paulo, Brazil; AES Tiete, a 2650 MW
hydroelectric facility in Sao Paulo Brazil; AES Uruguaiana, a
639 MW generating plant in Rio Grande do Sul, and AES Sul.
Earlier this year, AES completed financial restructurings of AES
Eletropaulo, AES Tiete and their holding companies.

"We are pleased to complete the restructuring of the holding
company debt of AES Sul, the final financial restructuring in
our Brazil portfolio," said Joseph C. Brandt, Executive Vice
President and Chief Operating Officer of AES. "We extend our
thanks to AES Sul's lenders for their support and confidence.
AES Sul now has the capital structure to take advantage of the
vibrant economy of Rio Grande do Sul."

AES is a leading global power company, with 2003 sales of 8.4
billion. AES delivers 45,000 megawatts of electricity to
customers in 27 countries through 113 power facilities and 17
distribution companies. Our 30,000 people are committed to
operational excellence and meeting the world's growing power
needs.

CONTACT: AES Corporation
         Mr. Scott Cunningham
         703-558-4875
         Investor Relations: invest@aes.com


BANCO DO BRASIL: Fitch Upgrades Ind. L/T Local Currency Ratings
---------------------------------------------------------------
Fitch Upgrades Banco do Brasil's Individual and Long-term Local
Currency Ratings Fitch Ratings-London/Sao Paolo/New York-June
28, 2004: Fitch Ratings, the international rating agency, has
upgraded Banco do Brasil's ("BB") Individual rating to 'C/D'
from 'D' and the Long-term local currency rating to 'BB-' (BB
minus) from 'B+'. At the same time, the bank's other ratings
have been affirmed as follows: Long-term foreign currency rating
'B+'; Short-term foreign and local currency ratings at 'B';
Short- and Long-term National ratings at 'F1+(bra)' and
'AA(bra)' respectively, and the Support rating affirmed at '4'.
The Rating Outlook for remains Stable.

The upgrade of the Individual rating is based on significant and
sustained improvement in BB's financial profile and operating
results since June 2001. Although quality of capital remains an
important concern, given a relatively high level of Tier II
capital and the high but declining volume of deferred tax
credits, Fitch is confident that growing profitability should
allow BB to continue to reduce the high level of these deferred
assets, and to continue rebuilding its Tier I capital base.

The upgrade of the Long-term local currency rating is in line
with Fitch's criteria for Long-term local currency ratings for
banks and is based on the bank's systemic importance, its
growing commercial independence from its main shareholder, and
its proven status as a safe haven during frequent cycles of
economic volatility. A broad and highly diversified funding base
has provided long-standing funding stability, and its financial
performance has improved markedly since 1995 when it was
determined that BB would operate as a commercially viable and
profitably self-supporting entity. This mandate was reaffirmed
in June 2001, when the Federal Government cleared the last of
the problem rural loans from BB's balance sheet. Fitch believes
that the improved performance will continue and has factored
this into the new ratings.

BB is Brazil's largest commercial bank. Based in Brasilia, it
operates through 13,220 outlets, including 3,241 domestic
branches at end-2003. BB holds a leading 29% market share in f/x
contracts closed for exports, is the largest funds manager in
the country with a market share of 19%, and holds about 20% of
the country's total deposits.

CONTACTS:  Peter Shaw, New York, Tel: +1 212 908-0553
           Rafael Guedes, Sao Paulo +55-11-4504-2600
           Maria Rita Goncalves, Rio de Janeiro +55-21-4503-2600


NET SERVICOS: Not Counting on Telmex Deal to Seal Debt Accord
-------------------------------------------------------------
The success of Net Servicos de Comunicacao SA's (NETC) clinching
a debt deal with creditors doesn't depend on Telefonos de Mexico
SA de CV's (Telmex) acquisition of a stake in Brazil's largest
pay-television company, Dow Jones Newswires reports, citing
Net's CEO, Francisco Valim.

"Net does not need any new financing source other than the debt
restructuring as outlined in today's plan," Valim said Monday.
"The debt restructuring and the agreement with Telmex are
complementary. We could restructure the debt without the
agreement with Telmex."

According to the executive, Net's controlling shareholder, media
group Globo Comunicacoes e Participacoes (Globopar), clinched
the agreement with Telmex as part of a wider restructuring of
BRL1.395 billion ($1=BRL3.13) in debt. However, he said he's
optimistic that nearly all of Net's creditors will accept the
deal.

"Net has always been a viable company and with this
restructuring it becomes a company on route to profitability,"
Valim said.

About 70% of Net's creditors have signed a letter of intent
committing to the plan, which requires the participation of 95%
of Net's creditors, Valim said. The plan offers different
options that include different combinations of partial payments
in debt, stock, or cash.

"We see absolutely no problem in hitting 95%. In fact, we expect
to get nearly 100% adhesion," Valim said. According to the
executive, 30% of Net's debt is denominated in reals, while the
remaining 70% is dollar-indexed.

Net Servicos, which has made only one quarterly profit in more
than nine years, has been trying to reach an agreement with
creditors for more than a year after defaulting on US$870
million of bonds in December 2002.



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

ENAMI: Codelco Head Attempts to Appease Dissenting Miners
---------------------------------------------------------
The head of Chilean state copper corporation Codelco tried to
placate miners who are opposed to the transfer of the Ventanas
copper refinery from state-owned mining company Enami to
Codelco, local daily Estrategia reports.

The newspaper quoted Codelco president Juan Villarzu as saying
that the move will not affect small- or mid-scale mining
activities. Miners would continue dealing with Enami, which will
outsource the copper concentrate treatment to Codelco and then
sell it.

In May, Chile's lower house approved the bill to transfer the
Ventanas smelter and refinery to Codelco. The transfer will cost
Codelco some US$373 million, with the state backing the debt
that Enami currently has.

The Chilean government had proposed the ownership transfer in
order to cut Enami's US$500 million debt, which had began to
cripple the Company's finances.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

CHIQUITA BRANDS: Finalizes Colombian Operations Sale
----------------------------------------------------
Chiquita Brands International, Inc. (NYSE: CQB) completed Monday
the previously announced sale of its banana-producing and port
operations in Colombia to Invesmar Ltd., the holding company of
C.I. Banacol S.A. Banacol is a Colombia-based producer and
exporter of bananas and other fruit products.

Copies of the sale agreement and other related documents were
filed in a Form 8-K with the U.S. Securities and Exchange
Commission on June 14, 2004.

Chiquita Brands International is a leading international
marketer, producer and distributor of high-quality bananas and
other fresh produce, which are sold primarily under the premium
Chiquitar brand. The company is one of the largest banana
producers in the world and a major supplier of bananas in Europe
and North America. The company also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.

CONTACT: Mr. Michael Mitchell
         513-784-8959
         mmitchell@chiquita.com

         Web Site: www.chiquita.com



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

PAN AMERICAN SILVER: Sells Peruvian Assets for $3.65M
-----------------------------------------------------
PAN AMERICAN SILVER CORP. (NASDAQ: PAAS; TSX: PAA) announced
Monday that it has concluded the sale of a package of surface
properties and mineral rights in the vicinity of its Quiruvilca
mine in Peru to a subsidiary of Barrick Gold Corporation for
US$3.65 million.

The package includes lands surplus to the needs of the
Quiruvilca mine and does not effect the mine's operation. The
proceeds from the sale will be applied over several years to the
mine's costs for concurrent reclamation.

CONTACT: Ms. Brenda Radies
         VP Corporate Relations
        (604) 684-1175
   
         Web Site: www.panamericansilver.com



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

PDVSA: S&P Places PDVSA Finance Rating on CW Neg.
-------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' rating on
PDVSA Finance Ltd.'s outstanding US$2.2 billion and Eur88.4
million debt on CreditWatch with negative implications (see
list).

The CreditWatch placement reflects certain features of a tender
offer made by Petroleos de Venezuela S.A. (PDVSA) for the
outstanding PDVSA Finance notes that, in Standard & Poor's view,
may reduce the credit quality of any notes that remain
outstanding upon completion of the tender offer.

The offer by PDVSA--the national oil company of Venezuela--is in
the form of a "tender and consent" requiring all noteholders who
are tendering their notes in return for the purchase price to
agree to certain amendments to the current PDVSA Finance
transaction terms. Assuming that the tender is completed
successfully, all holders of notes that remain outstanding after
completion of the tender will be bound by these amendments. For
purposes of obtaining approval for the amendments and proposed
waivers, noteholders of all series of notes will vote as a
single class. Adoption of the proposal requires the affirmative
vote of the holders of a majority of the principal amount of
notes outstanding. The key amendments and waivers proposed
include:

-- The removal as designated obligors of certain key companies
affiliated with PDVSA, including Citgo Petroleum Corp. and
Hovensa LLC;

-- A reduction in the required monthly average and percentage
amount of export receivables sold through the PDVSA Finance
transaction to 4.5 million barrels of crude oil of less than 30
degrees American Petroleum Institute (API) gravity from 27
million barrels and to 40% from 80% of total sales of oil that
is less than 30 degrees API gravity, respectively;

-- A change in the definitions of "specified events" and "events
of default" to incorporate the sale requirement changes
mentioned above; and

-- A potential reduction in the provision of accounting and
other financial information currently provided under SEC rules
should PDVSA Finance not be subject to these disclosure
requirements in the future.

The proposed amendments and waivers will likely reduce the
current very high debt service coverage to a more modest level.
In addition, the risk of diversion of oil exports from buyers
who are designated obligors (and therefore make payment for
deliveries to the PDVSA Finance transaction accounts) to those
who are not, or are no longer, designated obligors will
meaningfully increase. The enhanced ability of PDVSA to divert
exports to buyers who are not designated obligors will, in
Standard & Poor's view, increase the risk of a debt service
payment shortfall, especially if oil prices were to decline
sharply and/or the company were to suffer another sharp drop in
exports as occurred during the labor strike of late 2002 to
early 2003.

Upon completion of a full review of the proposed amendments and
waivers and their potential effect on the credit quality of the
transaction, Standard & Poor's expects to issue a press release
detailing its view of the proposed changes and any rating
actions that may occur should the tender offer be completed
successfully. As indicated by the negative CreditWatch
placement, Standard & Poor's believes that a downgrade of the
PDVSA Finance notes is reasonably likely. The exact rating
assigned to the notes will depend in part on the amount and the
amortization profile of the notes that remain outstanding after
completion of the tender.

RATINGS PLACED ON CREDITWATCH NEGATIVE
PDVSA Finance Ltd.
   
Class                                   Rating
                                  To                From
B 6.65% notes due 2006            B+/Watch Neg      B+
C 6.80% notes due 2008            B+/Watch Neg      B+
D 7.40% notes due 2016            B+/Watch Neg      B+
E 7.50% notes due 2028            B+/Watch Neg      B+
G 6.25% notes due 2006            B+/Watch Neg      B+
H 9.40% notes due 2007            B+/Watch Neg      B+
I 9.75% notes due 2010            B+/Watch Neg      B+
J 9.95% notes due 2020            B+/Watch Neg      B+
K 8.50% notes due 2012            B+/Watch Neg      B+

CONTACT: Kevin Kime, New York (1) 212-438-6223
         Bruce Schwartz, CFA, New York (1) 212-438-7809


PDVSA: Moody's Affirms Caa1 FC Rating on PDVSA Finance's Notes
--------------------------------------------------------------
Moody's Investors Service affirmed the Caa1 foreign currency
rating of the notes issued by PDVSA Finance Ltd., in light of
the tender offer that Petroleos de Venezuela (PDVSA) announced
in the market Monday.

The notes affected by Moody's action are:

- $300,000,000 6.65% Notes due 2006
- $300,000,000 6.80% Notes due 2008
- $400,000,000 7.40% Notes due 2016
- $400,000,000 7.50% Notes due 2028
- $250,000,000 9.375% Notes due 2007
- $250,000,000 9.750% Notes due 2010
- $100,000,000 9.950% Notes due 2020
- EURO 200,000,000 6.250% Notes due 2006
- $500,000,000 8.50% Notes due 2012

Moody's said the proposed amendments weaken protections to
investors but do not warrant a rating change, given the current
Caa1 rating level.

The existing rating primarily incorporates the substantial
political risk associated with the high degree of government
control over PDVSA, and Moody's view that PDVSA's ability to
attract investments and to maintain a stable-to-growing
production profile in the long term will continue to be
seriously compromised.

The practical ratings impact is that the proposed amendments
will limit the likelihood and magnitude of an upgrade of the
notes in the future.

PDVSA Finance is a Cayman Islands corporation and an indirect,
wholly-owned subsidiary of PDVSA, Venezuela's national oil
company. PDVSA Finance acts as a financing vehicle for PDVSA by
issuing notes and using the proceeds to purchase current and
future oil export receivables from PDVSA's principal operating
and exporting arm. The receivables' cash flows are generally
PDVSA Finance's only source of revenues, as well as the only
source of payment of the notes.




                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

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

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