TCRLA_Public/040702.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, July 2, 2004, Vol. 5, Issue 130

                            Headlines


A R G E N T I N A

AGENCIA MARITIMA: Verification Deadline Approaches
ANTONIO TARAZI: Court Reschedules Report Submission
BANCO DE GALICIA: Local S&P Assigns Ratings to Various Bonds
BANCO MERIDIAN: Local Moody's Assigns `B' to $10M in Bonds
CENTRAL COSTANERA: Signs Preliminary Debt Deal With Creditors

CLISA: Fitch Leaves Debenture Ratings Unchanged
EDEERSA: Government Announces Tender for 51% Stake in Utility
ESPRESSO BAR: Court Declares Company Bankrupt
INVESTIGACIONES DUQUE: Court Favors Creditor's Bankruptcy Call
MERCEDES CONFECCIONES: Verification Deadline Set

NAZZARENO MUSSONI: Liquidates on Court Decree
PALAGI HNOS: Proceeds With Reorganization
TUBA: Judge Approves Bankruptcy Petition
* Argentina Secures $700M Loan From World Bank


B E R M U D A

FOSTER WHEELER: Amends Exchange Offer
FOSTER WHEELER: JV Wins Contract for Spanish LNG Terminal Proj.
NORTHERN OFFSHORE: Considers Liquidation


B R A Z I L

BRASKEM: Nalco Wins Contract to Provide Water Services Treatment
CEMIG: Debt Restructuring Delays Filing of Annual Report
EMBRATEL: Blocked From Offering Local Calls on Prepaid Cards
NET SERVICOS: Globopar-Telmex Deal Update
TELEMAR: Mobile Interconnection Rates Deal Will Reduce Tariffs

TELEMAR: To Adjust Local, Long Distance Rates



C O L O M B I A

* Colombia IMF Approves $284M Colombian Disbursement
* IDB OKs $10M Loan to Colombia for Administrative Reforms


C O S T A   R I C A

ELCA: Regulator Imposes 90-Day Loan Portfolio Freeze



E C U A D O R

PETROECUADOR: Sees Increase in Oil Exports January to May


J A M A I C A

JAMAICA GRANDE: Hendrickson Family Bids on Finsac's Stake


M E X I C O

AEROMEXICO: Boeing Delivers Eighth Next-Generation 737
AXTEL: Will Expand Into Ciudad Juarez by Year's End
CEMIG: Auctions 72,000MWh Power Supply
CORPORACION GEO: Closes First Phase of JV With PREI
EMPRESAS ICA: Unit Served With Subpoena From DOT

HYLSAMEX: Debt Plan Gains Positive Market Response
LUZ Y FUERZA: Losing Almost $521M Yearly on Theft, Fraud
SATMEX: Constellation Eyes Control for $1
VITRO: Will Sell US$150 Mln in Secured Notes
VITRO: S&P Assigns `B+' Long-Term Rating to VENA

VITRO: Moody's Assigns Ratings to Subsidiary's Debt


V E N E Z U E L A

PDVSA: Misses Deadline for Submission of Annual Reports to SEC


     - - - - - - - - - -


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A R G E N T I N A
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AGENCIA MARITIMA: Verification Deadline Approaches
--------------------------------------------------
The verification of claims for the Agencia Maritima
Sudamericana S.A. bankruptcy will end on September 2, 2004
according to Infobae.

Creditors with claims against the bankrupt company must present
proof of the liabilities to Ms. Mabel Lopez, the court-appointed
trustee, before the deadline.

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

CONTACT: Ms. Mabel Lopez, Trustee
         Murguiondo 3607
         Buenos Aires


ANTONIO TARAZI: Court Reschedules Report Submission
---------------------------------------------------
The San Luis civil and commercial tribunal handling the ongoing
reorganization of Antonio Tarazi e Hijo S.A. has moved the
submission of the general report on September 15, 2004, says
Infobae. Likewise, the informative assembly has been rescheduled
on August 5 next year.

CONTACT: Antonio Tarazi e Hijo S.A.
         San Luis


BANCO DE GALICIA: Local S&P Assigns Ratings to Various Bonds
------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned ratings to various bonds issued by Banco de Galicia y
Buenos Aires.

The Comision Nacional de Valores enumerated the affected bonds
with their corresponding ratings as follows:

- `raD' rating to US$9 million worth of "Obligaciones
Negociables emitidas 11-6-01 bajo el Programa de USD 1000
millones, monto original USD 12 millones" coming due on 20 Dec
2005;

- `raD' rating to US$5 million worth of "Obligaciones
Negociables simples 7-8-97, monto original USD 150 millones"
with undisclosed maturity date;

- `raD' rating to US$21.4 million worth of "Obligaciones
Negociables simples 8-11-93, monto original USD 200 millones"
coming due on 01 Nov 2004;

- `raBB+' rating to US$2 billion worth of "Programa de
Obligaciones Negociables a Mediano Plazo" coming due on 29 Dec
2018;

- `raBBB-' rating to US$2 billion worth of Programa de
Obligaciones Negociables a Mediano Plazo" coming due on 29 Dec
2018;

- `raBBB-' rating to US$43 million worth of "Clase 7 de
Obligaciones Negociables emitidas 19-7-02 bajo el Programa de
USD 1000 millones" coming due on 28 Jun 2004;

- `raBBB-' rating to US$73 million worth of "Clase 6 de
Obligaciones Negociables emitidas 19-7-02 bajo el Programa de
USD 1000 millones" coming due on 03 Aug 2007;

The rating actions reflect the bank's financial status as of
March 31, 2004.

Banco de Galicia y Buenos Aires SA (GALI.BA), the main unit of
Argentine financial services company Grupo Galicia Financiero
(GGAL), registered a loss of ARS100.92 million in the first
quarter of 2004.

CONTACT:  BANCO DE GALICIA Y BUENOS AIRES
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman


BANCO MERIDIAN: Local Moody's Assigns `B' to $10M in Bonds
-----------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a `B'
rating to US$10 million in bonds issued by Banco Meridian S.A.
(formerly Providian Bank), according to Argentina's securities
regulator, the Comision Nacional de Valores (CNV).

The affected bonds are described as "Obligaciones Negociables
Subordinadas" and will come due on September 29, 2007.

The rating given indicates that the future of these bonds cannot
be considered well assured. Moody's took the action based on the
bank's financial status as of March 31, 2004.


CENTRAL COSTANERA: Signs Preliminary Debt Deal With Creditors
-------------------------------------------------------------
Argentine thermoelectric generator Central Costanera revealed
Wednesday it has signed a preliminary accord with a group of
banks to restructure a US$95 million syndicated loan, relates
Dow Jones Newswires.

In a statement to the local bourse, the Company said that under
the new agreement, the restructured amount will be US$47.7
million and maturities will be extended. The debt will be paid
off in quarterly installments, starting September 2004 and
ending in June 2006. A final debt restructuring accord will be
in place no later than Sept. 25, 2004.

The banks involved in the deal are Banco Bilbao Vizcaya
Argentaria (BBV), BankBoston, Bank of America (BAC), HSBC (HBC),
Banco Latinoamericano de Exportaciones, ABN AMRO Bank (ABN) and
J.P. Morgan Chase (JPM).

Central Costanera is 63% owned by Spanish utility Endesa.


CLISA: Fitch Leaves Debenture Ratings Unchanged
-----------------------------------------------
The Argentine arm of ratings agency Fitch Ratings reaffirmed its
CCC(arg) rating on debentures of up to US$120 million and its
D(arg) rating on debentures for US$100 million issued by
infrastructure and public services holding CLISA, reports
Business News Americas.

In a statement, Fitch said that the rating action reflects the
uncertainty over CLISA's capacity to meet its financial
obligations, given the weak performance of the business areas it
participates in. CLISA has four operating divisions: mass
transportation management (Metrovias); waste management
(environmental engineering); construction (Benito Roggio e
Hijos); and toll-road management.

In the nine-month period ended March 31, 2004, the Company
reported a ARS1.17-million (US$396,000) net loss as opposed to
the ARS208-million profit in the same year-ago period. Financial
losses and increased sales and administrative costs drove the
Company into the red.


EDEERSA: Government Announces Tender for 51% Stake in Utility
-------------------------------------------------------------
Argentina's Entre Rios province is set to announce today the
bidding rules pertaining to the auction of its 51 percent
interest in Argentine power distributor Edeersa, says Mr. Carlos
Molina, the Company's president, in a Business News Americas
report.

The Argentine government took control of the Edeersa stocks last
year after the provincial power regulator, Epre, ruled on a
transfer of ownership from a trust fund benefiting Edeersa
employees and shareholder, which had previously held all of the
Company's shares. The move was intended to assure the continuity
of power supplies and keep jobs in the province.

US Utility PSEG, the original owner of Edeersa, created the
trust fund after abandoning the Company in the midst of the
Argentine economic crises in 2003. However, the government
rejected the transfer because it did not give control of the
Company to workers as PSEG had claimed. The rejection left the
utility with a US$86 million non-convertible debt.

Natural gas distributor Gas Nea has shown interest in acquiring
Edeersa. However the Gas Nea's CEO Roberto Tamagno said that the
workers union, which retained 49% of Edeersa through the trust
fund, might try to make the tender fail.


ESPRESSO BAR: Court Declares Company Bankrupt
---------------------------------------------
Judge Gonzales of Buenos Aires Court No. 8 declared local
Company Espresso Bar S.A. bankrupt, relates La Nacion. The court
approved the bankruptcy petition filed by Moises Rosemblit
S.R.L., to whom the Company failed to pay debts amounting to
US$3,625.44.

The Company will undergo the bankruptcy process with Mr. Daniel
Alfredo Erdosia as its trustee. Creditors are required to
present their proofs of claims to the trustee for verification
before September 9, 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.

Dr. Lezaeta, Clerk No. 15 assists the court on the case.

CONTACTS: Espresso Bar S.A.
          Viamonte 1454
          Buenos Aires

          Mr. Daniel Alfredo Erdosia, Trustee
          Paraguay 610
          Buenos Aires


INVESTIGACIONES DUQUE: Court Favors Creditor's Bankruptcy Call
--------------------------------------------------------------
Mr. Roberto Alejandro Mazza successfully sought for the
bankruptcy of Investigaciones Duque S.A. after Judge Vassallo of
Buenos Aires Court No. 5 declared the Company "Quiebra," reports
La Nacion.

As such, the security and surveillance company will now start
the bankruptcy process with Mr. Julio Torres as trustee.
Creditors of the Company must submit their proofs of claim to
the trustee before September 13, 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.

The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$7,423.67

Dr. Perez Casado, Clerk No. 9, assists the court on the case,
which will culminate in the liquidation of all of its assets.

CONTACT: Investigaciones Duque S.A.
         Urquiza 340
         Buenos Aires

         Mr. Julio Torres, Trustee
         Avenida Corrientes 922
         Buenos Aires


MERCEDES CONFECCIONES: Verification Deadline Set
------------------------------------------------
Mr. Roberto Zapata, the court-appointed trustee supervising the
reorganization of Mercedes Confecciones S.A. will verify
creditors' proof of claims until August 30, 2004.

Argentine news source Infobae announces that creditors with
verified claims will be able to participate in the informative
assembly scheduled on August 19 next year.

CONTACT: Mercedes Confecciones S.A.
         Ruta 7 Km. 791 Aerea Indust Parque Norte
         San Luis

         Mr. Roberto Zapata, Trustee
         San Martin 1387
         San Luis


NAZZARENO MUSSONI: Liquidates on Court Decree
---------------------------------------------
Nazzareno Mussoni e Hijos S.A. entered bankruptcy after Judge
Garibotto of Buenos Aires Court No. 2 approved a bankruptcy
motion filed by Iggam S.A., reports La Nacion. The Company's
failure to pay US$11,496.11 in debt prompted the creditor to
file the petition.

Working with Dr. Vasallo, the city's Clerk No. 3, the Company
assigned Mr. Fernando Aquilino 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 13, 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: Nazzareno Mussoni e Hijos S.A.
         Blanco Encalada 4792
         Buenos Aires

         Mr. Fernando Aquilino, Trustee
         Lavalle 1459
         Buenos Aires


PALAGI HNOS: Proceeds With Reorganization
-----------------------------------------
The Buenos Aires civil and commercial tribunal issued a
resolution opening the reorganization of Palagi Hnos
S.A.C.I.F.E.I. This pronouncement authorizes the Company to
begin drafting a settlement proposal with its creditors in order
to avoid liquidation.

In addition, the reorganization allows Palagi Hnos to retain
control of its assets subject to certain conditions imposed by
Argentine law and the oversight of the court appointed trustee.

Mr. Luis Kuklis will serve as trustee during the course of the
reorganization. He will be validating creditors' proofs of
claims until September 13, 2004. The results of the verification
will be presented in court as individual reports on October 26,
2004.

The trustee is also obligated to give the court a general report
of the case on December 7, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on June
9 next year.

CONTACT: Palagi Hnos S.A.C.I.F.E.I.
         Lavalle 1672
         Buenos Aires

         Mr. Luis Kuklis, Trustee
         Lavalle 1619
         Buenos Aires


TUBA: Judge Approves Bankruptcy Petition
----------------------------------------
Tuba S.A. was declared bankrupt after Judge Paez Castaneda of
Buenos Aires Court No. 21 endorsed the petition of Cerro Bayo
S.A. for the company's liquidation. Argentine daily La Nacion
reports that Cerro Bayo has claims totaling US$11,014.50 against
the Company.

The court assigned Mr. Abraham Gutt to supervise the liquidation
process as trustee. He will validate creditors' proofs of claims
until October 25, 2004.

CONTACT: Tuba S.A.
         Sarmiento 1967
         Buenos Aires

         Mr. Abraham Gutt, Trustee
         Tucuman 1484
         Buenos Aires


* Argentina Secures $700M Loan From World Bank
----------------------------------------------
The World Bank approved Tuesday two new loans totaling US$700
million for Argentina to support economic recovery and national
highways management. The Board of Executive Directors also
discussed the latest economic developments in Argentina and the
status of the dialogue with the Government on the economic and
social policy agenda under the Country Assistance Strategy
endorsed in April.

The Economic Recovery Support Structural Adjustment Loan (ERSAL)
for US$500 million supports Argentina's efforts to sustain the
current economic recovery and establish the structural
foundation for medium-term growth, increased employment and
greater social equity. Sustainable economic growth hinges on
structural changes to promote investment and exports, underpin
improvements in investor and consumer confidence, and preserve
Argentina's social capital.  Specifically, the ERSAL supports
restructuring of the financial and utilities sectors, as well as
actions to improve the investment climate.

"The Bank is supporting Argentina's efforts to implement
structural reforms, as well as policy actions to help improve
the investment climate in order to generate sustainable
employment," said Axel van Trotsenburg, World Bank Country
Director for Argentina, Chile, Paraguay and Uruguay."The ERSAL
provides the framework to renew our financial sector dialogue
with the Government and better structure our engagement in the
area of public services and infrastructure."

Under the ERSAL, the Government has made firm commitments to
complete compensation payments to the banks for asymmetric
pesification.  Several Executive Directors noted that the over-
riding goal of the compensation should be to eliminate
uncertainty regarding these claims while providing banks a
foundation to build effective business strategies.  Other
actions under the program aimed at improving the functioning of
the banking sector include progress in strengthening prudential
regulation and preparation of medium-term business plans by the
banks.

Regarding public utilities, the program supports actions to
resolve disputes in public/private contracts including
establishment of institutional mechanisms for contract
renegotiation, completing renegotiation of concession agreements
(including electricity and gas), and progress in ensuring a
viable regulatory framework.  The Board of Executive Directors
welcomed the Government's commitments with regard to the public
utilities and emphasized the need to reach long-term,
comprehensive integral agreements with concessionaires.

Executive Directors emphasized key criteria for evaluating
progress in strengthening the regulatory framework.  Numerous
Directors stressed that regulatory framework should: (i) be
fair, transparent and predictable; (ii) support private sector
investment and development of productive capacity by taking into
consideration the cost of capital and rates of return on
investment and enabling the private sector to retain decision-
making over investment; (iii) support competition in each
sector; and (iv) set clear and predictable rules on how tariff
setting is to be determined.  Executive Directors noted that
tariff setting should be compatible with the goals of attracting
private investment and also reflect the social objective of
protecting low-income consumers.  "We will continue to engage
with the authorities to ensure a successful outcome in the
public utilities sector in accordance with principles compatible
with global experience and the specific conditions in
Argentina," said van Trotsenburg.

The ERSAL incorporates measures in the energy sector in response
to the supply shortages including the energy conservation plan
recently announced by the authorities and planned steps to re-
establish normal functioning of the wholesale energy
stabilization fund.  Executive Directors stressed the importance
of improved functioning of the energy sector to sustaining
growth.

The ERSAL program also supports measures to improve government
transparency and to strengthen firm-level competitiveness by
facilitating exports, reducing exchange controls and increasing
public/private coordination on trade support programs.  Actions
to promote development of small and medium enterprises include
the establishment of programs to facilitate exports and access
to credit; as well as measures to foster linkages between large
and small enterprises to accelerate learning and quality
improvements.

The Board of Executive Directors commended the Government on the
continued strong economic recovery and good macroeconomic
performance.  They noted that the third review of the Standby
arrangement with the IMF is underway and that discussions are
on-going toward defining policies that will achieve the
essential objectives set by the authorities.  The Executive
Directors emphasized the role of the overall economic policy
environment in supporting the ERSAL program objectives given the
special circumstances prevailing in Argentina, and in this
context they stressed the importance of timely completion of the
third program review in order to ensure the macroeconomic
framework remains adequate prior to effectiveness of the ERSAL.
"We will continue to review the macroeconomic framework-taking
into account all relevant factors including completion of the
third program review--before declaring the loan effective and
evaluate subsequent macroeconomic developments during
supervision," said van Trotsenburg.

Several Executive Directors also noted the need for re-
engagement with creditors on mutually acceptable terms and
emphasized that fair and transparent restructuring of the debt
is essential to private sector development and improvements in
the investment climate.

The Executive Directors requested a detailed status report from
Bank staff on the public utilities and further periodic progress
reports on implementation of the program supported by the ERSAL
prior to second tranche release. The single currency, U.S.-
dollar, fixed-spread loan is repayable in 15 years, with 3 years
of grace.

The National Highway Asset Management Project

The Board also approved a National Highway Asset Management
Project for US$200 million that will be implemented over the
next four years and will accompany the governments promotion of
infrastructure investments as a mean to address potential
bottlenecks to sustained economic recovery, fostering
productivity and competitiveness, and promoting regional growth
convergence and reduced inequality.


"Argentina's transport sector is at a crossroad in its process
of modernization. There is a vital need to improve transport
efficiencies in order to gain economic competitiveness in a
country in which 80% of total freight goes through roads. The
program will break a vicious cycle of postponing investments in
maintenance and rehabilitation in particular in the poorer less
developed areas of the country." said Axel van Trotsenburg.  "At
present Argentina has one of the highest cost of logistics in
the region with about 27% of every dollar exported consumed by
logistic costs including transport. "

Given the nature of the economic activity of Argentina based in
the agriculture, there is a structural need to integrate key
transport networks among different jurisdictions to effectively
connect ports and the main production and consumption centers.
The proposed investments have a broad geographic coverage and
will support the Government's initiative to develop and
implement a Territorial Development Strategy highlighting the
links of infrastructure with growth and reduction of inequality.

The National Highway Asset Management Project Loan will
therefore support the following areas:

Institutional renewal - Support the renewal and strengthening of
the National Roads Directorate ("Direccion Nacional de
Vialidad") through focused efforts to improve technical and
institutional capacity, consolidate its transformation into a
results-oriented organization, within a new role as a strategic
planner of the road network.

Performance-based road rehabilitation and maintenance - The
expansion of performance-based rehabilitation and maintenance
contracts (CREMA contracts) to almost the entire paved non-
concessioned road network, covering 20,000 km of national roads.

Bridge Management and Rehabilitation - Works in 5 bridges and
the implementation of a national bridge management system
Road safety - The design of a result-focused road safety
initiative setting out the institutional arrangements required
for its implementation.

"Argentina has a rate of road crash fatality that is three times
greater than the current rate of best practice countries, with
an average rate of 20 deaths per day, and the role of
prevention-based enforcement and education campaigns in
improving road safety standards has been overlooked, therefore
we are aiming to support an integrated road safety initiative to
improve road safety in the country" said Maria Marcela Silva,
World Bank Task Manager of the project.

The project builds on a very successful experience of
performance-based contracts for road rehabilitation and
maintenance which have improved the efficiency of road
management and will allow the country to further expand the
coverage of modern road asset management.  An improved national
road network is considered a key to remove logistic constraints.

The single currency, U.S.-dollar, fixed-spread Adaptable Program
Loan (APL) will be executed over a period of 4 years. The loan
is repayable in 14 years, with six years of grace.

CONTACTS: Ms. Yanina Budkin
          (54-11) 4316-9724
          E-mail: ybudkin@worldbank.org

          Ms. Alejandra Viveros
          (202) 473-4306
          E-mail:  aviveros@worldbank.org

          Web Site: www.worldbank.org



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B E R M U D A
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FOSTER WHEELER: Amends Exchange Offer
-------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that it
intends to amend certain terms and conditions of its previously
commenced equity for debt exchange offer. Institutional
investors holding 50.1% of the 6.75% senior notes due 2005,
83.7% of the 6.50% convertible subordinated notes due 2007,
91.5% of certain of the Robbins bonds due 2009 and 19.6% of the
9% trust preferred securities have executed agreements not to
transfer their securities. While Foster Wheeler has not yet
requested these institutional investors to tender their
securities in the offer, Foster Wheeler believes they will do so
when requested. The amended exchange offer is subject to review
by the Securities and Exchange Commission and other regulatory
agencies, and revised offering materials will be distributed as
soon as practicable.

The amended exchange offer modifies certain terms and conditions
for the proposed exchange of (i) senior notes due 2005 for a
combination of equity and new senior secured notes due 2011;
(ii) convertible subordinated notes and Robbins bonds for
equity; and (iii) trust preferred securities for equity. The
completion of the amended exchange offer is subject to, among
other things, attaining certain minimum participation
thresholds.

As previously announced, Foster Wheeler has obtained a
commitment from a group of institutional holders of its debt
securities to purchase $120 million of new senior secured notes
due 2011, contingent on the closing of the exchange offer. The
proceeds will be used to repay the term loan and revolving debt
outstanding under Foster Wheeler's existing senior secured
credit agreement. After the closing of the exchange offer, the
Company intends to seek a new multi-year revolving credit
agreement and letter of credit facility.

Assuming the amended exchange offer is completed as proposed,
and at the minimum required participation levels, it would
reduce Foster Wheeler's existing debt by approximately $410
million, extend the maturities on $135 million of debt to 2011,
reduce interest expense by approximately $22 million per year,
and, when combined with the sale of new notes to retire funded
bank debt, eliminate substantially all material scheduled
corporate debt maturities prior to 2011.

Based upon the same assumptions, and prior to accounting for the
warrants described below, Foster Wheeler's currently outstanding
common stock would constitute approximately 5.1% of the voting
equity securities of the Company. In addition, the holders of
the following securities would hold the following approximate
percentages of the Company's voting equity securities: (i)
holders of the senior notes, 13.8%; (ii) holders of the 2009
Series C Robbins bonds, 3.5%; (iii) holders of the 2024 Series C
Robbins bonds, 4.1%, (iv) holders of the Series D Robbins bonds,
7.1%; (v) holders of the convertible notes, 50.4%; and (vi)
holders of the trust preferred securities, 11%. Finally,
approximately 4.9% of the Company's voting equity securities
would be reserved for grants to management of restricted stock.

The exchange offer also contemplates the issuance of warrants.
The holders of the trust preferred securities would be issued
five-year warrants to purchase additional voting equity
securities representing, at the minimum required participation
level, approximately 15% of the Company's fully diluted equity,
and the holders of common stock outstanding prior to the closing
of the proposed exchange offer would receive a dividend in the
form of three-year warrants to purchase additional voting equity
securities representing approximately 5% of the Company's fully
diluted equity. The warrants would be in addition to the
previously described voting equity securities. In addition,
there will be reserved for grants to the Company's management
three-year stock options representing approximately 5% of the
Company's fully diluted equity.

Foster Wheeler will pay a soliciting brokers' fee to registered
broker/dealers for soliciting qualifying tenders of trust
preferred securities pursuant to this exchange offer. This fee
will be equal to 50 cents per trust preferred security
(liquidation amount $25) which the registered broker/dealers
tender on behalf of their customers and which Foster Wheeler
accepts for exchange.

The foregoing reference to the proposed registered exchange
offer and any other related transactions shall not constitute an
offer to buy or exchange securities or constitute the
solicitation of an offer to sell or exchange any securities in
Foster Wheeler Ltd. or any of its subsidiaries.

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information: (1) the registration statement on Form S-
4 (File No. 333-107054) and (2) the Schedule TO (File No. 005-
79124). These and any other documents relating to the proposed
exchange offer, when they are filed with the SEC, may be
obtained free at the SEC's Web site at www.sec.gov. You may also
obtain these documents for free (when available) from Foster
Wheeler by directing your request to: John A. Doyle; email
john_doyle@fwc.com; telephone 908-730-4270; and address Foster
Wheeler Inc., Perryville Corporate Park, Clinton, NJ 08809-4000.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, oil and gas, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries. The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA.

CONTACTS Media Contact:
         Ms. Maureen Bingert
         908-730-4444

         Investor Contact
         Mr. John Doyle
         908-730-4270

         Other Inquiries
         908-730-4000

         Web Site: www.corporate-ir.net/ir


FOSTER WHEELER: JV Wins Contract for Spanish LNG Terminal Proj.
---------------------------------------------------------------
Foster Wheeler Ltd. (OTCBB:FWLRF) announced Wednesday that its
subsidiary Foster Wheeler Iberia, S.A., in a joint venture with
Soluziona Ingenieria, S.A., has been awarded a contract by
Regasificacion del Noroeste, S.A. (Reganosa) for project
management consultancy at the new liquid natural gas (LNG)
terminal project located at Mugardos-Ferrol, Spain. The terms of
the contract were not disclosed.

"We are very pleased that Reganosa has awarded Foster Wheeler
/Soluziona Ingenieria this significant LNG project in Spain,"
stated Jesus Cadenas, chief executive officer of Foster Wheeler
Iberia. "The natural gas market is one of the most active energy
segments in the world and increasingly important in Spain, where
demand is expected to double by 2010. Our work with Reganosa and
other gas companies solidifies Foster Wheeler Iberia's position
as one of the leading Spanish engineering contractors in the
natural gas sector. This project also adds to the work Foster
Wheeler is doing globally leveraging our deep experience in the
important and growing LNG market."

The LNG terminal project includes two 150,000 cubic-meter tanks,
regasification facilities and pipelines. The project is
scheduled to be completed during the fourth quarter of 2006.
This will be the sixth LNG terminal to be constructed in Spain
and will receive LNG from various sources.

The booking was included in the first-quarter.


NORTHERN OFFSHORE: Considers Liquidation
----------------------------------------
Northern Offshore Ltd. announced Wednesday that it is preparing
for liquidation in light of an impasse between the Company and
its creditors. The Company indicated that although an unofficial
committee of unsecured creditors had formed to consider the
Company's restructuring proposal, the committee had sent a
letter and term sheet to the Company stating that it would not
engage in negotiations with the Company without the Company's
immediate payment of US$7.2 million of interest due on May 15,
2004 in connection with the 10.0% senior notes due 2005 and
further on July 6, 2004 pay interest which is due on that date
on the outstanding NOK bonds. However, at this stage and in
light of the Company's current financial position, the Board of
Directors does not believe it is appropriate to pay funds to any
stakeholder without agreement on a comprehensive restructuring.

"The preference of the Board of Directors is to engage with the
bondholders in a consensual restructuring," said Tor Olav Troim,
the Company's chief executive officer. "To that end, the Company
has taken the necessary steps to prepare for restructuring
negotiations, including agreeing to pay for creditor advisors,
preparing a detailed due diligence package for the committee,
and providing the committee with a detailed term sheet. Despite
these initiatives, the committee does not want to engage in
further discussions without the interest payment being made."

Joseph Swanson, a director at Houlihan Lokey Howard & Zukin,
which was retained by the Company to assist in implementing the
restructuring, added further, "In these circumstances, where a
company is endeavouring to restructure its financial obligations
as the only alternative to an insolvent liquidation, it is
standard practice for the company to preserve its cash and other
assets for the benefit of the general body of creditors until
there is certainty as to the company's future. Ultimately, such
cash and other assets would be distributed either in accordance
with the definitive restructuring or, if no agreement can be
reached and the restructuring consequently fails, in the
company's liquidation."

As previously announced on June 15, 2004, the Company did not
pay the interest due on its 10% senior notes, which constituted
an event of default under the indenture governing the senior
notes. On June 1, 2004, the Company proposed a transaction
whereby the Company's senior notes together with its Norwegian
krone-denominated floating rate notes due 2004 would be
exchanged for newly issued shares of common stock representing
85% of the Company's fully diluted share capital, with the
remaining 15% to be retained by current shareholders. If
approved, the transaction would be consummated under Bermuda law
through a scheme of arrangement and an increase in share capital
approved by Northern Offshore's shareholders. The Company
considers that the implementation of a restructuring represents
the only means by which the Company can avoid insolvent
liquidation.

The Company believes it is in the best interests of all
stakeholders to implement a restructuring as quickly as
possible. It is the Company's opinion that the implementation is
critical to the continued operation of the Company. Unless the
committee engages the Company in negotiations, the Board of
Directors of Northern Offshore considers that it will have no
alternative but to take steps in relation to the appointment of
a Bermuda-based liquidator responsible for the liquidation of
the Company's assets for the benefit of its creditors.

CONTACT: Company
         Tor Olav Troim Tel: 44 77 34 97 65 75
         Jon-Aksel Torgersen Tel: 47 22 93 60 00

         Houlihan Lokey Howard & Zukin
         Joseph Swanson, Director Tel: 44 20 7747 2727
         Peter Marshall, Director Tel: 44 20 7747 2724
         Joseph Cleverdon, Associate Tel: 44 20 7747 2735



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

BRASKEM: Nalco Wins Contract to Provide Water Services Treatment
----------------------------------------------------------------
Brazilian petrochemical company Braskem awarded Nalco Brasil, a
subsidiary of Illinois state-based chemical water treatment and
industrial processes Nalco, a BRL15-million (US$4.82 million),
four-year contract. According to a Business News Americas
report, the deal will see Nalco Brasil supplying products and
services for Braskem's water treatment, vapor and condensing
system at the Camacari petrochemical complex in Bahia state.


CEMIG: Debt Restructuring Delays Filing of Annual Report
--------------------------------------------------------
Although the management of Companhia Energetica de Minas Gerais
(CEMIG) has been working diligently to complete all the required
information for its annual report on Form 20-F for the fiscal
year ended December 31, 2003 (the "Form 20-F"), and a
substantial part of such information has been completed as of
this date, management does not believe the Form 20-F can be
completed on or before the June 30, 2004 prescribed due date.
The Company is currently restructuring the terms of its
indebtedness and restructuring and reorganizing its operations
to comply with recent Brazilian regulatory requirements and
management has had many internal matters on which to focus such
that it will not be possible for management to complete the Form
20-F by the June 30, 2004 prescribed due date without
unreasonable effort or expense. Management anticipates filing
the Form 20-F on or before July 15, 2004.


EMBRATEL: Blocked From Offering Local Calls on Prepaid Cards
------------------------------------------------------------
Brazilian telco Telemar lauded telecom regulator Anatel's
decision to bar rival telco operator Embratel from using its
prepaid long-distance cards to offer local services, Business
News Americas indicates.

The service, which has been offered by Embratel for 30 days,
allows customers to use Telemar's network to make local calls
using its prepaid cards, Telemar said, describing the service as
"non-authorized reselling" and illegal.

"Anatel's decision protects consumers and the market from
behavior which damages competition," Telemar said.


NET SERVICOS: Globopar-Telmex Deal Update
-----------------------------------------
Net Servicos de Comunicacao S.A. (the "Company" or "NET"), a
publicly held company, with headquarters located in the city and
state of Sao Paulo, at Rua Verbo Divino, 1.356, 1 andar,
Chacara Santo Antonio,
Corporate Taxpayers' Identification (CNPJ/MF) 00.108.768/00001-
6.5, publicly announces, in compliance with CVM Instruction No.
358/02, that in connection with the preparation of its 20-F Form
(as requested by the US regulations regarding the company's
ADRs) filed with the Securities Exchange Commission on the date
hereof, it has received additional information from its
controlling shareholder, Globo Comunicacoes e Participacoes S.A.
("Globopar"), that complements and clarifies the previous
relevant notice of June 27,2004, as follows:

Upon and subject to the consummation of the transactions
contemplated in the purchase agreement or, alternatively, the
option agreement entered into by Globopar and Telefonos de
Mexico, S.A. de C.V. ("Telmex") on June 27, 2004, the parties
(together with the special purpose company that will hold a part
of their investments in Net Servicos, the "SPC") will enter into
certain shareholders' agreements containing provisions relating
to transfer of shares, rights of first refusal, governance and
other matters typical of such arrangements.

For a period of two years from the date of the shareholders
agreement, Globopar and Telmex, subject to their respective
fiduciary duties, upon Telmex's request, may approve future
issuances of preferred shares in public offerings with pricing
to be established through a bookbuilding process, and Telmex
would agree to provide a standby underwriting commitment to
purchase such preferred shares at a price of not less than
R$0.70 (escalated by an inflation index after the first year).
Proceeds from any such issuance would be applied to prepay the
Company's existing debt in accordance with the definitive
restructuring agreements.

In the event that there were a change in Brazilian law that
would allow Telmex to own a controlling interest in Net
Servicos, Telmex would have the right to acquire from Globopar,
and Globopar would have the right to cause Telmex to purchase
from Globopar, an additional interest in the SPC representing
approximately 2% of the voting capital of that entity. This
would give Telmex, through the SPC, control over 51% of Net's
voting shares. The price of this additional interest would be
equivalent to the price per share at which Telmex acquires Net's
shares from Globopar pursuant to the purchase agreement or, if
the put option has been exercised, as described in Net's
previous announcement, the price per share under the put option.

Additionally, Globopar and Telmex have agreed to use its
commercially reasonable efforts to reach an agreement on a
proposal to Net Servicos concerning the terms of a networking
agreement with Telmex relating to the provision of voice, data,
and Internet services through, and the use of the last mile of,
Net's network facilities. Net believes that any such final
networking agreement will be on arms-length terms and will
require approval of the Company's board.

The purchase agreement entered into between Telmex and Globopar
contemplates that the shares to be issued in connection with the
restructuring of Net's debt obligations would be issued in the
same proportion as the current outstanding shares.

CONTACTS: Publicom Assessoria de Comunicacao
          Ms. Adriana Duarte
          tel. 5186-2799
          mail.aduarte@publicom.com.br

          Web Site: www.nettv.globo.com


TELEMAR: Mobile Interconnection Rates Deal Will Reduce Tariffs
--------------------------------------------------------------
Telemar Norte Leste (Bovespa: TMAR3;TMAR 5 and TMAR6) and TNL
PCS ("Oi") have closed the first freely negotiated deal in
Brazil for mobile interconnection rates, leading to reduced
tariffs for consumers.

Starting on July 1, 2004, Telemar will grant a discount of
approximately 30% on fixed-to-mobile local calls made to Oi
numbers in Minas Gerais, during regular business hours. The
agreement complies with the telecom regulation, which determines
that mobile interconnection rates are to be mutually agreed upon
by telecom operators throughout Brazil as of July 1, 2004.

" By reaching an agreement for reductions in interconnection
rates, Telemar and Oi are leading the way toward a new fixed-to-
mobile structure that clearly benefits consumers, " commented
Marcelo Pereira, Wholesale Officer with Telemar Norte Leste.

Mr. Pereira continued, "This is an unprecedented effort made
possible by the negotiation process for interconnection rates
prescribed by the applicable law.

Telemar will now seek to identify further benefits for consumers
to take advantage of the same type of promotions, plans and
discounts that are currently being offered in connection with
fixed-to-fixed and mobile-tomobile calls."

This 30-day promotion period in Minas Gerais may be extended,
depending on customer acceptance. The current fixed-to-mobile
rate, net of taxes, during regular hours, is R$0.46 per minute.
Under the promotion, the rate net of taxes will be reduced to
R$0.32 per minute, down approximately 30%.

The state of Minas Gerais was selected for two reasons:

  (i) it accounts for the Company's largest market share;

  (ii) among the sixteen states served by the Company, Minas
       Gerais was the first one where Oi reached second place
       in terms of the number of subscribers.

"Oi is expected to benefit from both the enhanced traffic and
increased number of new customers. Calls from a fixed line to
other mobile operators in Minas will be up to 53% more expensive
than calls to an Oi line", states Alberto Blanco, Oi's Retail
Marketing Officer.

CONTACTS: TNE - INVESTOR RELATIONS
          Email: invest@telemar.com.br

          Mr. Roberto Terziani
          55 (21) 3131-1208
          Carlos Lacerda
          55 (21) 3131-1314
          Fax: 55 (21) 3131-1155

          Web Site: www.telemar.com.br


TELEMAR: To Adjust Local, Long Distance Rates
---------------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding
company of telecommunication services providers in Brazil,
informs that, as defined in the Concession Agreements and
authorized by Anatel, its fixed-line subsidiary Telemar Norte
Leste will increase rates for its Local and Long Distance
services, based on the IGP-DI index accumulated for the 12-month
period ended May 31, 2004, as follows:

- Monthly Fee/Local Pulse/Public Phone Card Unit = 7.43%
- Long Distance Basket = 3.20%
- Installation Fee = - 19.00%

The long distance interconnection rate will be increased by
3.20% (TU-RIU) and the local interconnection rate will decrease
by 10.47% (TU-RL). The rate increases will become effective July
02, 2004.

CONTACTS: TNE - INVESTOR RELATIONS
          Email: invest@telemar.com.br

          Mr. Roberto Terziani
          55 (21) 3131-1208

          Mr. Carlos Lacerda
          55 (21) 3131-1314
          Fax: 55 (21) 3131-1155



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

* Colombia IMF Approves $284M Colombian Disbursement
----------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Wednesday the third review of Colombia's performance
under a two-year, SDR 1.5 billion (about US$2.3 billion) Stand-
By Arrangement approved on January 15, 2003. Completion of the
review enables the release of SDR 193.5 million (about US$284
million), which would bring the total amount available under the
arrangement to SDR 1.16 billion (about US$1.70 billion).

In completing the review, the Executive Board approved
Colombia's request for a waiver of non-observance of a
performance criterion.

Following the Executive Board's discussion of Colombia's
economic performance, Agust­n Carstens, Deputy Managing Director
and Acting Chair, said:

"Colombia's strong policy track record is bolstering confidence
and contributing to the economic recovery. In 2004, real GDP
growth is projected to rise strongly, inflation to continue to
decline, and the external sector to remain strong. Colombia is
well placed to adjust to a gradual rise in interest rates in the
United States, provided that economic policies continue to be
strong. The main policy challenge for 2004 is to take advantage
of the cyclical upturn in activity to press ahead with reforms
that are crucial to sustain the economic recovery.

"Demand policies are set to remain prudent. The authorities are
strongly committed to keeping fiscal policy on a path to reduce
public debt over the medium term. The combined public sector
deficit is targeted to decline in 2004, with some room to
accommodate additional investment financed by nondebt-creating
flows. The government intends to submit to Congress a budget for
2005 that provides for a combined public sector deficit of 2.4
percent of GDP. Monetary policy will remain directed at reducing
inflation further, in the context of the inflation-targeting
framework and a flexible exchange rate policy, while efforts
will continue to strengthen the financial system, and improve
supervision.

"Structural reforms are also set to advance further. The
government intends to secure congressional approval of the
revised budget code during 2004, which would allow the 2006
budget to be prepared under the new code. Tax administration is
to be strengthened further, and a constitutional amendment on
pension reform is to be submitted to Congress in July 2004. By
September 2004, the economic policy cabinet will develop a plan
to strengthen the current system of fiscal decentralization.
Colombia has accepted the obligations of Article VIII, and the
authorities plan to phase out the few remaining exchange
restrictions in the next few years.

"These reforms, together with prudent macroeconomic policies,
should lay a solid foundation for sustained growth and financial
stability over the medium term, while also reducing poverty and
improving social indicators," Mr. Carstens said.

CONTACTS: IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs
          Telephone: 202-623-7300
          Fax: 202-623-6278

          Media Relations
          Telephone: 202-623-7100
          Fax: 202-623-6772


* IDB OKs $10M Loan to Colombia for Administrative Reforms
----------------------------------------------------------
The Inter-American Development Bank announced Wednesday the
approval of a $10,346,000 loan to Colombia to improve national
public administration through the use of modern and effective
organizational tools, personnel management and information
systems.

The project will promote continued fiscal sustainability and
transparent and efficient public management.

The central government ministries will be supported in their
efforts to emphasize greater productivity, a higher level of
policy coordination and improved service delivery. Public
employment management will be upgraded through the use of
modern, integrated technological tools, and the workforce will
be enhanced through training in new skills.

A greater degree of citizens' participation in government will
be encouraged through a higher degree of transparency in
government operations. Greater use of e-government and e-
procurement will be employed to achieve higher levels of
efficiency and fairness.

Horizontal systems for both legal and asset management will be
improved through better integration, quality and efficiency. A
new asset management system will be designed and introduced to
encourage a new management culture that produces greater
efficiency and effectiveness in the acquisition, maintenance and
disposal of assets. A legal management strategy will be
established to strengthen the legal framework of national public
administration through greater professionalism and
modernization.

The project will be carried out by the National Planning
Department, the Ministry of Interior and Justice, the Department
of Public Service Administration and the Ministry of
Communications under the coordination of the Steering Committee
and the supervision of the Technical Secretariat.

During the process of designing the lending program, the IDB
provided substantial technical assistance, using lessons learned
from previous experiences and promoting consensus building for
the main concepts of the reform.

The project reflects the IDB strategy of promoting modernization
of the state by assisting Colombia in strengthening its policy-
making capacity, professionalizing its civil service,
modernizing management of public services and improving its
information technology potential.

The loan is for a 20-year term, with a four-year grace period,
at a variable interest rate. Local counterpart funds total
$8,465,00.

CONTACT: Mr. Daniel Drosdoff
         danieldr@iadb.org
        (202) 623-2407



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

ELCA: Regulator Imposes 90-Day Loan Portfolio Freeze
----------------------------------------------------
Costa Rican banking regulator Sugef began on Tuesday a 90-day
freeze affecting 80.8 percent of Elca's loan portfolio. The
intervention is aimed at easing the financial group's money
troubles, reports Business News Americas.

Conassif, a government body that regulates and supervises Costa
Rica's financial institutions, has stated that the bank had
insufficient plans to rectify limited levels of liquidity and
investments as well as a significant deterioration in the loan
portfolio.

However, a source cited in the report cautioned that the Elca
intervention is an isolated case and should not be construed as
symptomatic of problems in the country's financial system as a
whole.



=============
E C U A D O R
=============

PETROECUADOR: Sees Increase in Oil Exports January to May
---------------------------------------------------------
Ecuadorean state oil firm Petroecuador saw a 96% increase in oil
export revenues in May to US$145.67 million from US$74.39
million registered in the same month a year ago, reports Dow
Jones Business News.

In terms of volume, Ecuador exported 4.25 million barrels of
crude oil in May, up 36% from 3.12 million barrels registered in
May of 2003.

In the first five months of the year, Petroecuador exported
18.29 million barrels of crude oil, up 13% from 16.17 million
barrels registered in the same period of 2003.

Oil export revenues between January and May also increased 26%
to US$552.2 million from $439.4 million registered in the same
period of last year.



=============
J A M A I C A
=============

JAMAICA GRANDE: Hendrickson Family Bids on Finsac's Stake
---------------------------------------------------------
The Karl Hendrickson Family has submitted an offer to acquire
Finsac's 49.44 percent stake in Jamaica's largest hotel, the
Jamaica Grande in Ocho Rios. Purchase of the ailing hotel would
further broaden the Hendrickson's investments in the hotel
industry. The family is known for the successful turnaround of
once flagging properties like the Marcus Garvey Building in New
Kingston and the Suites and Seawind in Montego Bay.

Observer Business Reporter says that investors have been
unwilling to place their money on the hotel because of its
ownership structure and complicated management contract. Finsac,
the largest shareholder, has no controlling interest in the
hotel. In addition, Marriott and Fred Kassner's Go-Go Tours, the
other major shareholders, hold deals that ensure compensation up
to 2020 for future earnings in the event of a majority take
over. The Marriott owns 22.57 percent of the hotel while Go-Go
Tours controls 28.09 percent.

Sources cited by the report however say that the poor state of
the hotel's facilities may eventually cause the two companies to
dispose their holdings in the hotel, a development that could
mean well for Fisac and the Hendrickson's.



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

AEROMEXICO: Boeing Delivers Eighth Next-Generation 737
-------------------------------------------------------
Boeing (NYSE: BA) delivered Tuesday Aeromexico's eighth Next-
Generation 737 as part of the airline's continuing fleet-
modernization program.

Mexico's largest airline will receive seven more 737-700s by
November as part of a 15-plane order placed last year.

"This aircraft allows Aeromexico to continue offering passengers
more comfortable flights," said Aeromexico Chief Executive
Officer Fernando Flores. "The 737's operating efficiencies also
provide significant savings for our company on both short- and
long-haul flights."

In addition to short- and long-range flight flexibility that
provides access to 90 percent of the airline's destinations, the
737-700 also replaces older aircraft to comply with the
International Civil Aviation Organization's Stage 3 noise level
requirements.

Aeromexico's planes have 112 economy-class seats to maximize
passenger space and comfort, and 12 Clase Premier seats. The
overhead storage bins are the largest available, allowing
passengers to stow standard carry-on bags vertically and
providing more usable space.

The airplane has Blended Winglets -- 8-foot-long wingtip
extensions that reduce fuel consumption by approximately 3.5
percent and increase the aircraft's range up to 450 nautical
miles. The winglets improve the airplane's performance at hot,
high altitude airports like Mexico City, and help reduce engine
maintenance costs by reducing engine wear. They also contribute
to the airplane's excellent noise performance by lowering the
engine thrust required at takeoff.

Aeromexico is Mexico's largest airline and a leader for on-time
performance and baggage handling worldwide. It operates Boeing
767, 757 and 737 airplanes, and MD-80 and DC-9 jets. From its
hub at the Mexico City International Airport it makes more than
300 daily flights to 30 cities within Mexico, 15 in the United
States, two in Europe and three in South America. It's a
founding member of SkyTeam, the global airline alliance that
also includes Air France, Alitalia, CSA Czech Airlines, Delta
Air Lines and Korean Air.

The Boeing Next-Generation 737s are the most technologically
advanced single-aisle airplanes built today. They fly higher,
faster, farther, and more quietly than previous 737s or
competing airplanes while offering greater fuel efficiency.
Overall, the 737 is the world's best-selling commercial airplane
family. More than 5,400 have been ordered by 220 customers since
its introduction.


AXTEL: Will Expand Into Ciudad Juarez by Year's End
---------------------------------------------------
Axtel, the Mexican telephone company, will venture into Telmex
territory when it introduces local telephone service in Ciudad
Juarez by year's end.

Business News Americas reveals that the Company will charge a
minimum connection fee of MXN800 for the residential service and
MXN200 for every additional line installed. The proposed monthly
service charge of MXN156 will cover 100 calls and additional
cost per minute of MXN1.47

Axtel is also drawing up plans to expand its coverage into six
other Mexican cities. It intends to invest US$145 million to
fund its growth strategy for 2004.


CEMIG: Auctions 72,000MWh Power Supply
--------------------------------------
Cemig, the state-controlled power company operating in the state
of Minas Gerais, auctioned off 72,000MWh of one-month power
supplies on Thursday. The sale will cover distributor's power
needs related to its June contracts.

Business News Americas says that the bidding started at 19
percent over the average wholesale market MAE price for the
southeastern region. MAE price is currently quoted at BRL18.59
(US$6.00) per MWh.

The power-rationing scheme enforced by the Brazilian government
in 2001-2002 has resulted in a surplus of power in the country.
Demand presently peaks at 54,0000MW, way below the country's
capacity of 85,0000MW. Because of the glut, Brazilian power
companies have regularly held power auctions to distribute their
excess capacity.


CORPORACION GEO: Closes First Phase of JV With PREI
---------------------------------------------------
Corporacion Geo, S.A. de C.V. (BMV: GEOB; CORPGEO MX; ADR Level
I CUSIP: 21986V204) and PREI announced Wednesday that they had
closed the first phase of their joint venture to develop
affordable, middle and residential housing throughout Mexico.
Geo is Mexico's leading homebuilder and the largest developer of
affordable, middle and residential housing in the Americas, by
number of units sold. PREI is the real estate investment
advisory business of Prudential Financial Inc. (NYSE: PRU).

Luis Orvananos, President of the Board of Directors at
Corporacion Geo, mentioned: "We at Geo feel very proud for
winning another recognition for our communication practices and
commitment to create value for our shareholders, fact that
reflects the confidence in the company's management".

In announcing the completion of phase one, Miguel Gomez Mont,
Chief Executive Officer of Geo, cited, "At a time when several
Mexican homebuilders are tapping the equity markets to raise
capital to buy land and pay down debt, Geo has been able to
structure a landmark investment program with PREI that
guarantees Geo will have sufficient land to meet its growth
objectives in the years to come, without diluting existing
shareholders, and to significantly lower Geo's need to resort to
debt to buy land. The completion of phase one delivers on our
promise to stay one step ahead, as the market leader in Mexico."
Roberto Ordorica, Head of PREI's Latin American operations,
added, "Our confidence in Mexico, the growth of Mexico's
residential market and Geo's proven ability to capitalize on
that growth is a very attractive proposition for us." "While we
originally planed the first phase to be US$100 million, we
increased the size of the first phase to US$175 million, so Geo
can secure land in markets it deems strategic."

Victor Segura, Chief Financial Officer of Geo, observed, "We are
on track to reduce our debt levels and improve our management of
working capital. Our association with PREI strengthens Geo's
balance sheet overall, and our ability to compete more
effectively in the market." Francisco Andragnes, Vice President
for Investment of PREI Latin America, added "Geo's national
platform sets Geo apart from its competitors. To date we have
approved approximately US$97 million of investments to secure
land on behalf of the joint venture and we expect to invest the
totality of phase one, before year end."

Luis Abdeljalek, Geo's Director in charge of the joint venture
with PREI commented, "We expect the capital of the first phase
will help us create barriers to entry in some of our most
dynamic markets, by allowing us to control larger tracks of
land, where previously Geo didn't have the financial muscle to
do so".

PREI provides global real estate investment management services
in the U.S., Europe, Asia and Latin America. PREI managed total
assets of $22.3 billion on behalf of more than 400 clients as of
March 31, 2004; net assets under management (i.e., after
deduction of associated debt and liabilities) were $15.2
billion. For information, visit www.prei.com.

Prudential Financial companies, with approximately $454 billion
in total assets under management as of March 31, 2004, serve
individual and institutional customers worldwide and include The
Prudential Insurance Company of America, one of the largest life
insurance companies in the United States. These companies offer
a variety of products and services, including life insurance,
mutual funds, annuities, pension and retirement related services
and administration, asset management, securities brokerage,
banking and trust services, real estate brokerage franchises and
relocation services. For more information, visit
www.prudential.com.

Corporacion Geo is the leading housing developer in Mexico and
the largest builder of affordable, middle and residential
housing in the Americas, in terms of homes sold. Through its
subsidiaries positioned in the most dynamic cities and regions
of the country, Geo is involved in all aspects of housing
development, from design and construction to marketing and sales
of affordable, middle and residential houses in Mexico. Geo is
also the most geographically diverse housing company in Mexico,
operating in 33 cities in 19 states, covering more than 76% of
the population of the country. In the past 30 years, Geo has
sold and produced over 200,000 homes in which live more than
1,000,000 people, more than double its nearest competitor. Geo
is dedicated to generating value for its shareholders through a
Solid Strategy of Sustainable Growth, which provides Superior
Quality of Life for all of its customers.

CONTACTS:  Jorge Perez
           Investor Relations Officer
           Corporacion Geo
           Ph. +(52) 55-5480-5071
           Fax +(52) 55-5554-6064
           E-mail: jperezr@casasgeo.com

           Ricardo Maiselson / Kenia Vargas
           Investor Relations
           Corporacion Geo
           Tel. +(52) 55 5480 5078
           Fax +(52) 55 5554 6064
           E-mail: geo_ir@casasgeo.com
           Web site: http://www.casasgeo.com


EMPRESAS ICA: Unit Served With Subpoena From DOT
------------------------------------------------
ICA Miramar Metro San Juan Corp., a subsidiary of Mexican
construction company Empresas ICA SA (ICA), received a subpoena
as part of a U.S. Department of Transportation probe of Puerto
Rico's light rail system.

In a filing with the Securities and Exchange Commission,
Empresas ICA said that the unit is a contractor for a segment of
the Puerto Rico light rail system. The Company revealed that the
DOT inspector general opened a probe of Puerto Rico's light rail
system this year and issued the subpoena March 8.

ICA said it is cooperating with the U.S. agency's investigation.

Earlier this year, the unit was also notified by the Puerto Rico
Highway and Transportation Authority that it had defaulted on
its performance on the light rail project. ICA said it is in
talks with the transportation agency to resolve the dispute. The
Company said no legal proceedings are pending regarding the
Puerto Rican agency's claims.

CONTACT: Empresas ICA Sociedad Controladora S.A. de CV
         Mineria No. 145, Edificio Central
         11800 Mexico, D.F.,
         Phone: (212) 688-6840
         Email: jose.guerrero@ica.com.mx
                inversionistas@ica.com.mx

         Web Site: www.ica.com.mx
                   www.fluor.com


HYLSAMEX: Debt Plan Gains Positive Market Response
--------------------------------------------------
Rising steel prices as well as recent moves to reduce debt
boosted Hylsamex's shares in the market on Wednesday. According
to Business News Americas, the steel maker's CPO shares gained
4.6 percent to close at MXN16.90 while its B Shares rose 4.6
percent to close at MXN16.95.

Hylsamex intends to prepay its US$962 million debt through the
issuance of 180 million new L shares. The company is preparing
for the shares issue after it received approval from
shareholders to proceed with the plan last week. The L shares
will have limited voting rights but holders can opt to convert
it to normal B shares, with full voting rights, after a one-year
listing in the exchange.

The planned capital infusion will affect majority shareholder
Alfa's 51 percent stake in Hylsamex. Analysts say that Alfa
could end up with 40 percent ownership once the shares issue
dilutes its holdings.


LUZ Y FUERZA: Losing Almost $521M Yearly on Theft, Fraud
--------------------------------------------------------
Mexico City's power distributor Luz y Fuerza del Centro (LFC) is
posting nearly MXN6 billion (US$521mn) in annual losses, a
problem that is driving the Company to the edge of bankruptcy,
reports Business News Americas.

According to LFC director Luis de Pablo Serna, the Company's
lack of concern to large customers who do not pay their bills,
billing adjustments that are unaccounted for, and erroneous
meter readings are the main reasons behind the losses.

An internal investigation showed that two thirds of the problem
are due to so-called "administrative errors." These errors,
which account for MXN4 billion, are traced to incorrect meter
readings and managers who allow unrecoverable charges to be
made.

The remaining MXN2 billion annual losses are due to theft and
fraud which includes tampering with meters, illegal hook-ups and
altered billing, Serna said.


SATMEX: Constellation Eyes Control for $1
-----------------------------------------
Constellation Group has launched an unsolicited bid to take over
control of the cash-strapped Mexican satellite operator
Satelites Mexicanos SA (SatMex) for US$1, reports Dow Jones
Newswires.

The bid is based on the assumption of Satmex's debt and has
attracted attention because it offers creditors the possibility
of a needed infusion of cash into the Company at a time when
SatMex is struggling to restructure US$700 million in debts and
lacks the financing options to begin new revenue-producing
projects.

Hispasat, the Spanish satellite firm, has committed to operating
SatMex's three satellites if a deal with Constellation comes
through.

Constellation, which is looking to buy 71% of SatMex from Loral
Space and Communications Ltd. (LRLSQ) and Mexico's Autrey
family, is now in talks with creditors and bondholders of
SatMex, asking their support by pressuring the owners to give up
ownership in exchange for US$1.

SatMex spokeswoman Laura Alamillo declined to comment on the
Constellation bid but said SatMex is still in debt-restructuring
talks with creditors.

The Company is reportedly asking creditors for as much as US$35
million in new financing to launch Satellite 6 as part of a
restructuring plan. Mr. Robert Rauch, who helps manage an
undisclosed amount of SatMex's 10.125 percent bonds for Gramercy
Advisors LLC in Greenwich, Connecticut, said an agreement is
near.

"The discussions are well advanced," Rauch said. Creditors have
concluded the Company won't be able to pay its debts without
putting the new communications satellite into service. "It's
pretty clear to everybody what the issue are," Rauch said.

A plan to restructure debt will have to be approved by the
Mexican government, which owns 24% of Satmex and has a US$188
million loan to the Company guaranteed by shares of one its two
holding companies, according to SatMex CEO Lauro Gonzalez.

Gonzalez said the Company was going to miss a principal payment
on US$205 million of notes maturing Wednesday after already
missing two interest payments since August on $320 million of
10.125 percent bonds that mature in November.


VITRO: Will Sell US$150 Mln in Secured Notes
--------------------------------------------
Vitro, S.A. de C.V. announced Wednesday that its subsidiary
Vitro Envases Norteamerica S.A. de C.V. ("VENA"), Vitro's glass
containers
division, seeks to sell, subject to market and other conditions,
approximately US$150 million of its senior secured guaranteed
notes due 2014 (the "Notes") in a private placement pursuant to
Rule 144A and Regulation S under the Securities Act of 1933, as
amended (the "Securities Act"). VENA intends to use the proceeds
of the issuance to repay indebtedness.

The Notes will be issued by VENA and guaranteed by VENA's
principal Mexican subsidiaries and Vitro Packaging, VENA's
trading company in the United States. The Notes will be secured
by first priority liens on most of VENA's and its subsidiaries'
assets. The collateral may be shared with other creditors of
VENA and its subsidiaries.

The Notes have not been, and will not be, registered under the
Securities Act and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act.

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

          Web Site: www.vitro.com


VITRO: S&P Assigns `B+' Long-Term Rating to VENA
------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Vitro Envases Norteamerica S.A. de
C.V. (Vena) as well as to its proposed $150 million senior notes
due 2014. The terms and conditions of these notes allow for no
structural subordination. The outlook is negative.

The ratings on Vena are equalized with those of its parent
company, Vitro S.A. de C.V., reflecting the latter's ability and
incentive to take assets and/or burden the company with
liabilities thanks to its 100% equity interest in Vena, which
contributes approximately 50% of Vitro's consolidated EBITDA.
"Crossed acceleration clauses between Vena and Vitro's Yankee
bonds, provide an additional incentive to the whole economic
entity to honor Vena's debt," said Standard & Poor's credit
analyst Jose Coballasi.

The ratings on Monterrey, Mexico-based Vitro are constrained by
its high financial leverage and the negative trend in
profitability because of increased competition in the domestic
market and the strength of the Mexican peso across Vitro's
business lines. The ratings are supported by the company's
leading position in flat glass, glass containers, and glassware
business in Mexico; and by Vitro's export activities and
international operations (particularly in the U.S.), which
combined accounted for 50% of total sales.

The negative outlook reflects the challenging operating and
economic environment faced by Vitro's business, which could lead
to continued weakness in the company's operating performance and
key financial measures. A recovery in the company's operating
and financial performance and the success of its refinancing
plans could lead to a stable outlook.

CONTACT: Jose Coballasi, Mexico City (52) 55-5081-4414
         Federico Mora, Mexico City (52) 55-5081-4436


VITRO: Moody's Assigns Ratings to Subsidiary's Debt
---------------------------------------------------
Moody's Investors Service assigned ratings for the first time to
the debt of Vitro Envases Norteamerica, S.A. de C.V. (VENA), a
wholly-owned subsidiary of Vitro, S.A. de C.V..

Moody's assigned the following ratings:

- B2 for the proposed $150 million senior secured guaranteed
note, due 2014
- B2 senior implied rating
- Caa1 senior unsecured issuer rating (non-guaranteed exposure)

The ratings outlook is stable.

The ratings, according to Moody's, are subject to the review of
executed documentation.

Moody's said the ratings reflect VENA's weak financial position,
on a stand-alone basis, and its vulnerabilities to foreign
exchange fluctuations, conversion of products away from glass,
seasonality, and rising natural gas costs. Free cash flow is
modest and is likely to remain pressured given the sizable
capital investment required to maintain its business.

Moody's believes that the run-rate free cash flow is
insufficient to retire the Company's pro-forma debt in 10 years.
VENA's significant historical reliance on financing from Vitro
(pro-forma intercompany debt approaches $350 million) further
constrains the rating.

The ratings also acknowledge VENA's leadership in Mexico and
Central America and its successful niche strategy of short-run,
value-added production.

The ratings outlook is stable, however there is little tolerance
for negative variance under expected performance before the
outlook could be moved to negative.

VENA is the leading manufacturer of glass containers in Mexico
and Central America and a leading global provider of glass
containers used in the food, beverage, pharmaceutical, and
cosmetics industries.



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

PDVSA: Misses Deadline for Submission of Annual Reports to SEC
--------------------------------------------------------------
Petroleos de Venezuela SA missed Wednesday's deadline for filing
annual financial results with the U.S. Securities and Exchange
Commission.

Chief Financial Officer Jose Rojas blamed the delay to the
December 2002-January 2003 oil strike that disrupted its finance
department.

PDVSA lacked accounting systems until June 2003, Rojas said,
adding: "We have been doing all the accounting by hand."

The Company fired 18,000 employees last year to break the
strike, which was aimed at pushing President Hugo Chavez from
office. Among those fired were many employees in the company's
financial department.

Rojas gave no new date for turning in the results, but said the
Company is further along in completing the report than it was at
the same time last year.

Last year, PDVSA asked for two extensions before filing its 2002
financial results, which it finally turned in last October.
Extensions from the SEC are not uncommon. PDVSA is required to
file to the SEC because several wholly owned units operate in
the U.S.



                            ***********


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