TCRLA_Public/040709.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 9, 2004, Vol. 5, Issue 135

                            Headlines


A R G E N T I N A

ALSE ALTA: Trustee Finalizes Credit Verification
BARCLET: Trustee Readies Final Reports for Filing
BY BITAHON: Buenos Aires Judge Approves Bankruptcy
COLORIN INDUSTRIA: Moody's Assigns `D' Ratings to $47M of Bonds
DELTA CALZADOS: Claims Report Deadline Approaches

EDEMSA: S&P Retains `D' Rating on $150M Bonds
LABOR MED: General Report Due in Court Today
M.C.E. S.A.: Seeks Court Authorization to Reorganize
NESTOR VITIGLIANO: Liquidates Assets to Repay Debts
PARMALAT ARGENTINA: Saputo Remains Silent on Acquisition Bid

TRI ECO: Debt Payments Halted, Prepares To Reorganize


B E R M U D A

ANNUITY & LIFE: Resolves Dispute With Transamerica
NORTHERN OFFSHORE: Misses Bond Interest Payment


B R A Z I L

BANCO RURAL: Obtains B2 Rating for its $25M Notes
CEMIG: Moody's Affirms Ratings on Recent Regulatory Decision
TELEMAR: TRF Scrutinizing Appeal to Reinstate Price Adjustments
TELEMAR: Seeks Co-Billing Agreements With Mobile Operators
* Fitch Assigns Expected 'B+' to Brazil's Global Bonds


D O M I N I C A N   R E P U B L I C

BANCO MERCANTIL: Parent Company Awaits Auditors' Certification


E C U A D O R

PETROECUADOR: Government to Emulate Brazil's Petrobras Success
PETROECUADOR: Seeks New Investment to Boost Production


M E X I C O

GRUPO MEXICO: Monex Issues `Buy' Rating on Shares
ING COMERCIAL: State Judge Yet to Act on Federal Court Ruling
IUSACELL: U.S. Court Denies Creditors Petition
IUSACELL: Lack of Funding May Lead to Bankruptcy
VITRO: Tops "Most Innovative Companies in Mexico" List


P E R U

* Peru Mulling $1B Bond Issue


T R I N I D A D  &  T O B A G O

CDC: Standard's Director Eases Repossession Worries


V E N E Z U E L A

PDVSA: Plans Sale of Orimulsion Facilities


     - - - - - - - - - -

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

ALSE ALTA: Trustee Finalizes Credit Verification
------------------------------------------------
Creditors of insolvent Alse Alta Seguridad S.R.L. must present
proofs of claims against the Company before July 12, 2004 in
order to participate in the settlement plan being prepared by
the Company.

All claims must be submitted to Mr. Esteban D. Morganti, the
court-appointed trustee, who will validate the claims and
prepare the individual reports to be presented in court on
October 4, 2004.

The informative assembly, the final stage in the reorganization,
is scheduled on February 10 next year.

CONTACT: Alse Alta Seguridad S.R.L.
         Calle 122 Bis Nro. 1848
         Berisso
         La Plata

         Mr. Esteban D. Morganti, Trustee
         Calle 12 Nro. 883
         La Plata


BARCLET: Trustee Readies Final Reports for Filing
-------------------------------------------------
The bankruptcy of Buenos Aires-based Barcelt S.A. nears its
conclusion as the case's trustee, Mr. Santos Ernesto Luparelli,
prepares to submit the individual reports on July 12, 2004.

The city's Court No. 8 will review the individual reports and
endorse the final list of creditors that will be included in the
payments to be made after the Company's liquidation.

Apart from the individual reports, the trustee is also obliged
to provide the court with a general report on September 13,
2004. The general report summarizes important events in the
liquidation process and presents an audit of the Company's
accounting and business records.

CONTACT:  Mr. Santos Ernesto Luparelli, Trustee
          Paraguay 2067
          Buenos Aires


BY BITAHON: Buenos Aires Judge Approves Bankruptcy
--------------------------------------------------
By Bitahon S.R.L. was declared bankrupt after Judge Gonzalez of
Buenos Aires Court No. 8 endorsed the petition of Tecotex
Sacifia for the company's liquidation. La Nacion reports that
the creditor has claims totaling US$1,434 against the troubled
textile company.

The court assigned Mr. Felipe Florio to supervise the
liquidation process as trustee. He will validate creditors'
proofs of claims until September 23, 2004.

CONTACT: By Bitahon S.R.L.
         Avenida Pueyrredon 689
         Buenos Aires

         Mr. Felipe Florio, Trustee
         Uruguay 618
         Buenos Aires


COLORIN INDUSTRIA: Moody's Assigns `D' Ratings to $47M of Bonds
---------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a `D'
rating to the US$47 million bond issued by Colorin Industria de
Materiales Sintet. Comision Nacional de Valores (CNV),
Argentina's securities regulator, reports that the action was
based on the Company's financial status as of March 31, 2004.
Moody's assigns `D' ratings to bonds that are in payment default
and have a poor prospect of repaying all obligations.

The bond issue, described as `Obligaciones Negociables', will
mature on March 31, 2006.


DELTA CALZADOS: Claims Report Deadline Approaches
-------------------------------------------------
Individual reports from claims submitted by the creditors of
Delta Calzados S.H. are due for court presentation on July 12,
2004. Ms. Olga Susana Urriza, the court-appointed trustee will
prepare this report together with a general report on the
Company's reorganization that will be submitted in court on
September 8, 2004.

The Company will present the completed settlement proposal
during the informative assembly on March 1 next year.

CONTACT: Olga Susana Urriza, Receiver
         Calle 18 Nro. 425
         La Plata


EDEMSA: S&P Retains `D' Rating on $150M Bonds
---------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained its default ratings on US$150 million bonds issued by
Empresa Distribuidora de Electricidad de Mendoza S.A. The bond
issue described as "Programa de emisión de Obligaciones
Negociables simples" earned the `D' rating based on EDEMSA's
financial standing as of March 31, 2004, says CNV.

A `D' rating is assigned when the issuer has filed for
bankruptcy or when interest or principal payments are not made
on the due date, even if the applicable grace period has not
expired, unless S&P believes that such payments will be made
during such grace period.

CONTACT: Empresa Distribuidora de Electricidad de Mendoza S.A.
         San Martín 322 (5500)
         Mendoza


LABOR MED: General Report Due in Court Today
--------------------------------------------
Mr. Pedro Luis Santa Maria, the trustee supervising the
liquidation of Labor med S.R.L., will submit the case's general
report on July 12, 2004. The general report provides the court
with an overview of the ongoing bankruptcy and gives an audit of
the Company's business records.

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

CONTACT:  Labor Med S.R.L.
          Talcahuano 438
          Buenos Aires

          Pedro Luis Santa Maria, Receiver
          Lavalle 1430
          Buenos Aires


M.C.E. S.A.: Seeks Court Authorization to Reorganize
----------------------------------------------------
M.C.E. S.A., a Buenos-Aires based company engaged in
construction, has requested for reorganization after failing to
pay its liabilities since May 30, 2004.

Argentine daily La Nacion reports that the case is pending
before Judge Uzal of the city's Court No. 26. Dr.
Dermardirossian, Clerk No.51, assists on this case.

CONTACT: M.C.E. S.A.
         Junin 257
         Buenos Aires


NESTOR VITIGLIANO: Liquidates Assets to Repay Debts
---------------------------------------------------
Buenos Aires-based Company Néstor Vitigliano S.R.L. will begin
liquidating its assets following the bankruptcy pronouncement
issued by Judge Gonzalez of the city's Court No. 8.

Infobae reports that the bankruptcy ruling places the company
under the supervision of court-appointed trustee, Mr. Norberto
Jose Perrone. The trustee will verify creditors' proofs of
claims until September 23, 2004.

CONTACT: Nestor Vitigliano S.R.L.
         Nahuel Huapi 4929
         Buenos Aires

         Mr. Norberto Jose Perrone, Trustee
         Constitucion 2894
         Buenos Aires


PARMALAT ARGENTINA: Saputo Remains Silent on Acquisition Bid
------------------------------------------------------------
Saputo Inc. refused to comment on rumors that it is one of six
companies eyeing the assets of troubled dairy-company Parmalat
Argentina. Mr. Claude Pinard, the company's spokesman,
reiterated this non-disclosure policy in a Reuters report.

While Parmalat's Argentine subsidiary has not been placed in the
market, the parent company's plans to concentrate on its Italian
operations have fueled speculation that its Latin American
assets may eventually be sold.

Along with Saputo Inc., companies like Pegasus, Coinvest S.A.,
American Invest Group; Dolphin Fund and HSBC Holdings have also
shown interest in acquiring Parmalat Argentina.


TRI ECO: Debt Payments Halted, Prepares To Reorganize
-----------------------------------------------------
Judge Vasallo of Buenos Aires Court No. 5 is currently reviewing
the merits of the reorganization petition filed by Tri Eco S.A.
La Nacion recalls that the company filed the petition after
defaulting on its debt payments.

Once approved by the court, reorganization will allow the
industrial residue processing company to avoid bankruptcy by
negotiating a settlement with its creditors.

Dr. Perez Cazado, Clerk No. 9, assists the court on this case.

CONTACT: Tri Eco S.A.
         Lavalle 534
         Buenos Aires


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

ANNUITY & LIFE: Resolves Dispute With Transamerica
--------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) reported
Wednesday that the Company and Transamerica have agreed to
settle all disputes relating to the current arbitration
proceedings between the two parties. Pursuant to the terms of
the settlement agreement, Transamerica and the Company will
calculate monthly settlements under their reinsurance treaty in
a manner the Company believes is consistent with the original
terms of the treaty. Transamerica also agreed to the Company's
$5.0 million offset of amounts owing to Transamerica at October
31, 2003.

The Company will pay Transamerica approximately $8.7 million,
representing amounts currently due under the reinsurance treaty
as of April 30, 2004. The Company does not expect an adverse
impact on its financial results as a result of the settlement.
Jay Burke, Chief Executive Officer of the Company, commented,
"We are very pleased that Transamerica and the Company were able
to amicably resolve their differences. The Company's future is
heavily dependent upon the performance of this contract, and we
are hopeful that with this dispute out of the way we can have a
more constructive dialogue with Transamerica."

Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.

CONTACT: Mr. John Lockwood
         Annuity & Life Re (Holdings), Ltd.
         Cumberland House
         1 Victoria Street
         Hamilton HM 11
         P.O. Box HM 98
         Hamilton HM AX
         Bermuda
         Tel: (441) 296-7667
         Fax: (441) 296-7665


NORTHERN OFFSHORE: Misses Bond Interest Payment
-----------------------------------------------
Northern Offshore will, due to the Company's overall financial
situation, not be in position to pay interest on the Norwegian
Bond loan ISIN 001009351.1 due July 6th.

As stated in an earlier press release, the Board of Directors of
Northern Offshore does not believe its is appropriate to pay
funds to any stakeholder without agreement on a comprehensive
financial restructuring of the group.

CONTACT: Mr. Tor Olav Troim
         Northern Offshore
         Tel + 44 77 34 97 65 75

         Mr. Joseph Swanson
         Houlihan Lokey Howard & Zukin
         Tel + 44 20 7747 2727



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

BANCO RURAL: Obtains B2 Rating for its $25M Notes
-------------------------------------------------
Moody's Investors Service assigned a B2 rating to US$25 million
notes issued by Rio de Janeiro-based Banco Rural S.A. The
outlook on the rating is stable. The affected notes, which
mature on July 2005, were issued under the US$500 million Euro-
medium term note program established by Banco Rural in October
2003.

According to Moody's, the B2 rating incorporates Banco Rural's
fundamental credit quality, which is reflected by its Ba3 global
local currency rating and which includes all relevant country
risks. The B2 rating reflects the probability of a sovereign
default implied by the Brazilian government's sub-investment-
grade B2 foreign currency bond rating, and the likelihood that
the Brazilian government could impose a debt moratorium in the
event of default on its own foreign currency obligations.


CEMIG: Moody's Affirms Ratings on Recent Regulatory Decision
------------------------------------------------------------
Moody's America Latina Ltda. affirmed the following the ratings
of Companhia Energetica de Minas Gerais (Cemig):

- Baa2.br Brazil National Scale rating for issuer and senior
unsecured debentures

- B1 Global Local Currency Scale ratings for issuer and senior
unsecured debentures

- Baa2.br Brazil National Scale rating and the B1 Global Local
Currency Scale rating on Cemig's proposed BRL400 million senior
unsecured debenture issuance due 2014.

The affirmation of the ratings is a reflection of the federal
regulator's recent decision to amend Resolution 83, which
establishes the distribution tariffs that Cemig charges its
consumers as of April 2004, resulting in a reduction of the
percentage increase in tariffs from 19.13% to 14.0%.

Moody's indicated that Cemig plans to appeal the decision. If
the regulator decides to uphold the ruling, the rating agency
expects a reduction of approximately BRL250 million in Cemig's
2004 regulated net revenues and BRL50 million in its gross cash
flow.

While the recent ruling reflects a less than supportive
regulatory environment, considering that Cemig's debt protection
measures are currently strong for its rating category, it is
unlikely that the modest impact of the lower tariff on its 2004
results would affect the ratings or the outlook.

Cemig's ratings are principally constrained by the B3 rating of
the state of Minas Gerais, the company's controlling
shareholder, which reflects the state's heavy, growing debt
burden and a structural fiscal imbalance. Moody's America Latina
observes that there is no clear ring-fencing of Cemig's cash
flows from its controlling shareholder, thus leaving the Company
exposed to the risk of a cash drain in a scenario under which
the state experiences a serious fiscal crisis.


TELEMAR: TRF Scrutinizing Appeal to Reinstate Price Adjustments
---------------------------------------------------------------
A spokesperson from Brazil's second regional federal court (TRF)
revealed that TRF Pesident Valmir Pecanha is now studying an
appeal lodged by telecoms operator Telemar seeking to reinstate
annual telephone price adjustments, relates Business News
Americas.

As part of the annual price adjustment process, telecoms
regulator Anatel authorized an average increase of 7.43% for
local line services but a reduction for long-distance prices.

However, Judge Luis Eduardo Bianchi Cerqueira of the 9th federal
court stopped Telemar from applying price hikes authorized by
Anatel, following a motion brought by local consumer association
Afcont.

In its motion, Afcont stated that the use of the IGP-DI index
for measuring inflation was harmful to consumers because it does
not adequately reflect inflation in Brazil.

In June 2003, a Brasilia court switched the IGP-DI index for the
IPCA index using the same argument.

Cerqueira's rejection prompted Telemar to bring its appeal to
the TRF. If Pecanha's decision is contested by either party, the
case will move directly to the federal appeals court, the STJ,
which last week ruled that the IGP-DI index must be used for the
annual price readjustments as it is laid down in the incumbents'
concession contracts.

STJ president Edson Vidigal said that lower courts had the right
to question the STJ's decisions and that if the case makes it
back to the STJ he would "not waste time in applying the law and
what the constitution determines."

CONTACT:  TNE - INVESTOR RELATIONS
          Email: invest@telemar.com.br
          Roberto Terziani - 55 (21) 3131-1208
          Carlos Lacerda - 55 (21) 3131-1314
          Fax: 55 (21) 3131-1155


TELEMAR: Seeks Co-Billing Agreements With Mobile Operators
----------------------------------------------------------
Telemar is asking mobile operators to implement a full co-
billing system for long-distance calls made from mobile phones,
reports Business News Americas. According to Telemar long-
distance manager Jorge Braga, full co-billing agreements would
allow Telemar to provide tailored promotions to individual
mobile customers.

Telemar wants to sign co-billing agreements with mobile
operators Vivo, TIM and Claro, Braga said. Telemar's own mobile
unit, Oi, has already met the regulatory requirements by signing
full co-billing agreements with all fixed line operators.


* Fitch Assigns Expected 'B+' to Brazil's Global Bonds
------------------------------------------------------
Fitch, the international rating agency, assigned the forthcoming
U.S. dollar-denominated 10-year global bond issue of the
Republic of Brazil an expected long-term foreign currency rating
of 'B+' with a Stable Rating Outlook.

Brazil's credit fundamentals have improved in the past year but
still remain vulnerable to market sentiment, given the
sovereign's heavy debt rollover needs, as well as the external
financing needs of the country as a whole. Credit improvements
have included a marked turnaround in international trade
performance, with the trade surplus rising 45% (to US$15
billion) in the year to June 2004, and the current account
likely to post its second straight annual surplus this year. As
a result, international reserves net of IMF borrowings and other
items should rise modestly this year to more than US$22 billion.

In addition, the public sector continues to run sizable primary
budget surpluses (excluding interest payments), driven by
buoyant tax performance. The primary surplus in the 12 months to
May totaled 4.3% of GDP, yielding a budget deficit of 4.1%, down
from 5.2% in calendar year 2003, as moderating inflationary
pressures have allowed interest rates to decline. The
sovereign's debt profile has improved markedly, with over US$18
billion in dollar-indexed liabilities being withdrawn from the
market in the year to mid-July and such liabilities representing
only 16.6% of government debt in May 2004, down from 30.7% one
year earlier.

Some momentum on the reform front continues, evidenced by the
government holding the line on minimum wage growth and moving
ahead in the legislative process to pass bankruptcy reform. This
follows on the modest successes last year in the areas of social
security and tax reform. Finally, signs of a growing economy
have emerged with industrial production, real incomes, and bank
lending on the rise during the first half of the year,
indicating that GDP could expand 3.5% or more this year.

Nevertheless, Brazil's sovereign ratings remain constrained by
medium-term debt sustainability concerns as well as nearer term
heavy financing needs. Gross general government debt to GDP of
above 75% compares unfavorably with the median of Fitch-rated
'B' sovereigns. Likewise, net external debt of nearly 150% of
current external receipts exceeds the 'B' median.

Regarding near-term financing needs, in April and May, as market
sentiment turned more bearish regarding the outlook for U.S.
interest rates, rollover rates on public domestic debt and on
external debt plummeted. These rollover rates have improved in
recent weeks; however, Brazil remains highly leveraged to market
sentiment, given US$20.7 billion in medium- and long-term
external debt amortizations due during the rest of the year.
Furthermore, the treasury's domestic debt rollover requirements
for the rest of the year are not light, representing
approximately 7.6% of 2004 GDP and about 17% of GDP in the next
12 months.

CONTACT: Roger M. Scher +1-212-908-0240, New York.
MEDIA RELATIONS: James Jockle +1-212-908-0547, New York.



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

BANCO MERCANTIL: Parent Company Awaits Auditors' Certification
--------------------------------------------------------------
Mr. Ronald Harford, Chairman of the Republic Bank Limited,
expects auditors to complete its certification of the records of
Banco Mercantil, the group's subsidiary in the Dominican
Republic, before the end of the week, says The Trinidad
Guardian.

The audit reportedly found a US$300 million hole in Banco
Mercantil's accounts. But the executive claims Republic Bank has
received a commitment from the DR's Central Bank Governor Jose
Lois Malkum that he (Malkum) will resolve the issue once
Mercantil's accounts have been certified.

Banco Mercantil became a 99.97% owned subsidiary of Republic
Bank Limited in October last year.

CONTACT: Roberto Pastoriza 303
         Apartado Postal 20203
         Santo Domingo
         Dominican Republic

Website: http://www.mercantil.com.do



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

PETROECUADOR: Government to Emulate Brazil's Petrobras Success
--------------------------------------------------------------
The government of Ecuador is scheduled to meet with executives
of Brazilian energy giant Petroleo Brasileiro SA (Petrobras) in
Ecuador next week, Dow Jones reports, citing Energy Minister
Eduardo Lopez. Ecuador, which is seeking to overhaul the state-
owned, cash-strapped oil company Petroecuador, wants to get
ideas from the Petrobras executives on how they successfully
created a "mixed" company.

Brazil sold a significant portion of Petrobras' shares on
international equity markets while still retaining control of
the company. Ecuador wants to follow the same steps with regards
to Petroecuador. Yet the move would require legislative
approval. But according to Lopez, most lawmakers would back a
plan to partially privatize the Company, as long as the
government retained control.


PETROECUADOR: Seeks New Investment to Boost Production
------------------------------------------------------
Petroecuador president Luis Camacho Barrios revealed that the
state oil company produced 200,154 barrels of oil on July 6,
relates Business News Americas. A Petroecuador spokesperson said
that the Company aims to up production to 205,000b/d by year-end
by drilling a total of about 20 new wells and rehabilitating
some 40 existing wells.

According to the government, Petroecuador has seen its output
dwindle at an average annual rate of around 7% in recent years.
To address this problem, the government plans to attract foreign
investment. Ecuador's energy and mines ministry could reopen a
tender to boost production in four state-owned Amazon oil and
gas fields by end-September if congress passes a new
hydrocarbons reform bill by end-July.



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

GRUPO MEXICO: Monex Issues `Buy' Rating on Shares
-------------------------------------------------
Mexican financial group Monex is advising investors to purchase
shares in the mining and metals giant Grupo Mexico, reports
Business News Americas. Monex is setting a three-month target
share price of MXN39.50 compared to Tuesday's MXN35.72 close on
expectations that the Company will post higher sales this year.
In a report, Monex projects a 36.9% increase in net sales this
year to MXN39.3 billion (US$3.42 billion) over 2003 and a 118%
increase in EBITDA to MXN18.7 billion.

High metal prices are bolstering the Company's financials, Monex
said, adding that copper prices will average US$1.15/lb during
the second half of the year. Copper closed at US$1.25/lb on the
London Metal Exchange (LME) on July 7.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


ING COMERCIAL: State Judge Yet to Act on Federal Court Ruling
-------------------------------------------------------------
ING Comercial America, the Mexican subsidiary of Dutch financial
services giant ING (NYSE: ING), awaits a decision by a state
court judge regarding a lawsuit lodged against it by local
fertilizer company Fertinal, reports Business News Americas.

Fertinal sued ING Comercial America and 21 of its employees last
year seeking damages relating to an insurance claim on its
fertilizer mine in Baja California, which was damaged by
Hurricane Juliette in 2001.

On August 27, a small town judge in Morelos state ruled in
Fertinal's favor and froze all of the insurer's bank accounts.
ING managed to free up all of its assets except for US$300
million.

In May, however, a federal court decided that the Morelos judge
overstepped his authority and left the state court judge to
overturn the earlier judge's ruling.

"That is what we are waiting for," Hans Porias, ING
communications director for Latin America, said in an interview
with Business News Americas. It could be several months before
the judge reviews the federal court's decision and lifts the
asset embargo, he added.


IUSACELL: U.S. Court Denies Creditors Petition
----------------------------------------------
Grupo Iusacell, S.A. de C.V. [BMV: CEL, NYSE: CEL] informs that
on June 30, 2004, the Supreme Court, New York County entered a
decision and order denying in its entirety the request of
certain holders of 2004 senior notes that the Company be
preliminarily enjoined from selling or otherwise transferring
certain assets.

This in connection with the extension of the lawsuit filed on
January 2004, by certain holders of the Senior Notes due 2004
against our principal subsidiary, Grupo Iusacell Celular, S.A.
de C.V. ("Iusacell Celular") and others.

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is
a wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.

Independently of the negotiations towards the restructure of its
debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, as the new 3G network, in more populations, thanks
to its aggressive expansion plan.

CONTACT: Mr. Jose Luis Riera
         Chief Financial Officer,
         +5255-5109-5927

         Mr. J. Victor Ferrer
         Finance Manage
         +5255-5109-5927
         vferrer@iusacell.com.mx

         Web Site: www.iusacell.com


IUSACELL: Lack of Funding May Lead to Bankruptcy
------------------------------------------------
Iusacell faces impending bankruptcy after the company failed to
attract more funds to relieve its looming US$10 million debt.
Industry insiders interviewed by El Economista say the company's
creditors could call for technical bankruptcy because Mr.
Ricardo Salinas Pliego has not injected more capital to the
troubled telecommunications firm.

Iusacell was scheduled to make a US$3.7 million payment on June
15, 2004. However, the Company announced that it does not have
enough resources to make the payements.


VITRO: Tops "Most Innovative Companies in Mexico" List
------------------------------------------------------
Due to a strategy well supported by a solid IT infrastructure in
all of its businesses initiatives in Mexico and international
operations, Vitro (BMV: VITROA; NYSE: VTO) achieved the first
place in the fourth edition of the "50 most innovative companies
in Mexico" annual survey coordinated by the Mexican edition of
the InformationWeek Magazine.

According to the IT specialized magazine, Vitro's position
demonstrates that large corporations, consolidated companies and
field pioneers, can continue to re-invent themselves depending
on market conditions.

A large number of corporations participated in the annual survey
by submitting their answers to be evaluated by Mancera Ernst &
Young and the Editorial Council of the InformationWeek México
magazine.

"Top management's support and the internal management practices
in the IT area have allowed us to incorporate new technologies
and apply them into our Company. We have defined the corporate
government model to segment all initiatives and approvals,
therefore all of the initiatives are aligned to the business
strategy and justified under the Economic Value Creation (EVC)
methodology" said Hector Pro, Vitro's Director of e-business and
IT.

The magazine assures that the fourth edition of the "50 Most
Innovative Companies in Mexico" is considered as an significant
reference for many industries and observers of the IT creative
application to achieve business objectives.

In 2003, Vitro implemented new technologies throughout the
company, applying all initiatives, from the Help Desk
outsourcing, to the CRM, mobile applications, SCM, B2E, among
other.

Thanks to e-procurement, Vitro purchases more than 90% of its
requirements via electronic transactions, which brings
significant savings in time and money.

Another initiative that allows the company to reduce costs
between 10 and 20% is the outsourcing infrastructure, meanwhile
systems applications allow Vitro to save between 15 and 30%.

Due to the use of the Economic Value Creation (EVC) methodology,
Vitro's IT staff may justify technology investments and clearly
explain company benefits. The same methodology allows the
Company to keep track of the benefits after solutions have been
implemented, a fact that helps the IT department to ensure
credibility. And at the same time, the Total Quality Management
model, as well as top management's support has made us one of
the most recognized companies in the Technology Management
practices.

This ranking includes a wide variety of economic sectors, public
and private companies that apply IT in Mexico, which
demonstrates the survey has been applied to most national
industrial activities.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.

Its subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses; plastic and aluminum
containers.

Vitro also produces raw materials and equipment and capital
goods for industrial use. Founded in 1909 in Monterrey, Mexico-
based Vitro has joint ventures with major world-class partners
and industry leaders that provide its subsidiaries with access
to international markets, distribution channels and state-of-
the-art technology.

Vitro's subsidiaries have facilities and distribution centers in
nine countries, located in North, Central and South America, and
Europe, and export to more than 70 countries worldwide.

CONTACT: Media Mexico D.F.
         Mr. Antonio Ocaranza
         Vitro, S. A. de C.V.
         +52 (55) 5089-6911
         aocaranza@vitro.com

         Web Site: www.vitro.com



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

* Peru Mulling $1B Bond Issue
-----------------------------
Peru hopes to reduce the US$8.543 billion debt it owes to a the
Paris Club by around US$200 million per year over the next five
years through a refinancing plan that would involve another bond
issuance. Mr. Pedro Pablo Kuczynski, the country's Economy
Minister said in a Rueters report that proceeds of the planned
US$1 billion 10 to 15-year bond issue would be used to prepay
part of this debt.

"We owe about $700 (million) to $800 (million) a year in
amortizations for the next five years, and what we'd like to do
is reduce this by around $200 million ... refinancing this in
the market," explained Kuczynski in an RPP radio interview.
However, the minister did not provide a specific schedule for
the new bond issue.

The Paris Club, a loose amalgamation of 19 creditor nations
including Italy, France, Germany, Japan, Britain and the United
States, may accept the offer, claims Mr. Kuczynski, because many
of its member nations are coping with big fiscal deficits which
they can trim down with cash from the debt restructuring.

An April issue worth US$500 million 12-year global bond further
increased Peru's foreign debt, which is now estimated at
US$22.247 billion.



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

CDC: Standard's Director Eases Repossession Worries
---------------------------------------------------
A director from Standard Distributors has denied allegations
made by Mr. Robert Guiseppi, the leader of NUGFW, that CDC's
parent company Ansa McAl used its influence over the furniture
retailer to repossess items from striking CDC workers.

Mr. Nabel Hadeed, the managing director for Standard
Distributors, explained in a report from the Trinidad Express
that the company's computer automatically generates the
repossession letters when a payment is missed. He adds that no
outright repossession will be made because no repossession
authority has been issued and a bailiff has not been notified.

The recent picket in front of the Standard store is an offshoot
of the ongoing seven-week strike at the CDC compound in Champs
Fleurs that began with a dispute between workers and the
management.

NUGFW leaders have said that they want CDC to withdraw the
worker lockout and resume negotiation with the union on a
collective agreement.



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

PDVSA: Plans Sale of Orimulsion Facilities
------------------------------------------
Venezuela's decision to stop producing orimulsion fuel could
mean the sale of the first operational orimulsion plant in the
country and lead to a US$2 million breach of contract lawsuit
from one of its principal clients.

Mr. Rafael Ramirez, the country's Energy Minister stated in a
Petroleumworld article that the government has decided to stop
Orimulsion production because the product has proven to be
unprofitable.

He claims that Venezuela lost US$12.30 a barrel last year from
selling orimulsion because extra heavy crude oil, the product's
main component, could be sold at a much higher price when mixed
with other crudes.

With the orimulsion freeze, Venezuela is exploring the
possibility of unloading its orimulsion facility to Orifuel
Sinovensa, a company controlled by Bitor, China National Oil and
Gas Exploration and Development Corporation and Petrochina Fuel
Oil.

However, the decision to stop production has also contravened
some of Venezuela's orimulsion delivery commitments. One of its
largest clients, New Brunswick Power in Canada, has threatened
to file a US$2 billion lawsuit if it fails to supply the fuel
for its Orimulsion reformulated plant.

Orimulsion, an alternative fuel source successfully used to
replace coal or bitumen, was developed in Venezuela by INTEVEP.


                            ***********


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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