TCRLA_Public/040712.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Monday, July 12, 2004, Vol. 5, Issue 136

                            Headlines

A R G E N T I N A

AGENCIA DE INVESTIGACIONES: Individual Reports Due Tomorrow
ASOCACION MEDICA: Verification Deadline Approaches
ASTILLEROS RIO BRAVO: Court Orders Liquidation
BODEGAS MARGUS: Debt Payments Halted, Set To Reorganize
ECYM S.A.: Judge Approves Bankruptcy

EDEMSA: French Parent Confirms Plans to Sell Stake
EG 12: Credit Verification Ends
ESTUDIO MARITIMO: Court OKs Creditor's Bankruptcy Call
GLASSIER: Individual Reports Due Tomorrow
IANSON S.A.: Seeks Reorganization Approval

LLOYDS ARGENTINA: Bids Goodbye to Argentina
SAMPIERI TRADING: Trustee Readies Reports for Submission
* Argentina Overcomes Important Hurdle to $13B Loan From IMF


B A R B A D O S

RR DONNELLEY BARBADOS: To Shut Down Next Month


B E R M U D A

GLOBAL CROSSING: NASDAQ Approves Request to Continue Trading
OVERSEAS PARTNERS: Sells US Reinsurance Subsidiary for $43M


B R A Z I L

ABRIL: Sells Minority Stake as Part of Efforts To Cut Debt
BANCO VOTORANTIM: S&P Rates $50 MM MTNs 'B+'
BOMBRIL: Files Suit Against Former Owner to Recoup Unpaid Debts
CEMIG: Reorganization Gets Go-Ahead From State Government
CFLCL: SR Rating Upgrades Credit Rating

COPEL: Details Recent Extraordinary Meeting Minutes
EMBRATEL: Issues Extraordinary General Meeting Notice
EMBRATEL/TELEMAR: STJ OKs Rates Hike Implementation
LIGHT SERVICOS: Owed BRL700 Mln in Unpaid Service Bills
MRS LOGISTICA: CVRD to Negotiate Ownership

NET SERVICOS: Globopar, Bradesplan Enter Shares Exchange Accord
* Brazil Sells $750M, 10-year Global Bonds


C H I L E

ENERSIS: Appeals Court Sustains $55M Fine Vs Board


M E X I C O

AXTEL: Expands to San Luis Potosi


P E R U

AEROCONTINENTE: 15 Years in the Pen for Founder - Prosecutors
* Peru Working With IFC to Improve Business Environment


T R I N I D A D   &   T O B A G O

BWIA: Likely to Spend More Than $2.4M to Repair Damaged Planes
CDC: Unionist Calls for Dialogue, Law Reforms in Strike
NWRHA: Asked to Pay $24M Debt


V E N E Z U E L A

EDC: Receives $50M Loan From ABN AMRO

     -  -  -  -  -  -  -  -

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

AGENCIA DE INVESTIGACIONES: Individual Reports Due Tomorrow
-----------------------------------------------------------
Mr. Mario Isaac Bekierman, the trustee assigned in the Agencia
de Investigaciones y Seguridad Marcama S.R.L. bankruptcy, is
scheduled to submit individual reports from the submitted
creditors' claims tomorrow, July 13, 2004.

Following the submission of the individual reports, the trustee
is also obliged by the court to prepare a general report and
submit it on September 7, 2004.

The Company's bankruptcy case is under the jurisdiction of Court
No. 5 of the San Isidro Civil and Commercial Tribunal.

CONTACT: Agencia de Investigaciones y Seguridad Marcama S.R.L.
          Nelly y Obes 2746 Talar de Pacheco
          San Isidro

          Mario Isaac Bekierman
          Av Callao 420
          Buenos Aires


ASOCACION MEDICA: Verification Deadline Approaches
--------------------------------------------------
Creditors with claims against troubled San Isidro medical group
Asocacion Medica del Norte must present proofs of the Company's
indebtedness to Mr. Leonardo Martin Zoroza before July 13, 2004.

Failure to submit the claims within the prescribed verification
period will mean disqualification from the settlement plan being
prepared by the Company.

San Isidro Court No. 19, assisted by Clerk No. 3, has
jurisdiction over this case.

CONTACT: Asociacion Medica del Norte
         Av Cazon 349 Tigre
         San Isidro

         Mr. Leonardo Martin Zoroza, Trustee
         Martin y Omar 129
         San Isidro


ASTILLEROS RIO BRAVO: Court Orders Liquidation
----------------------------------------------
Mr. Claudio Juarez successfully sought for the bankruptcy of
Astilleros Rio Bravo S.A. after Judge Herrera of Buenos Aires
Court No. 3 declared the Company "Quiebra," reports La Nacion.

As such, the Company will now start the bankruptcy process with
Mr. Santiago Quiben as trustee. Creditors of the Company must
submit their proofs of claim to the trustee before September 23,
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 the Company's bankruptcy after the latter
failed to pay debts amounting to US$28,690.51. Clerk No. 6, Dr.
Gutierrez Huertas assists the court on the case, which will end
in the liquidation of all Company assets.

CONTACT: Astilleros Rio Bravo
         Congreso 2056
         Buenos Aires

         Mr. Santiago Quiben, Trustee
         Esmeralda 783
         Buenos Aires


BODEGAS MARGUS: Debt Payments Halted, Set To Reorganize
-------------------------------------------------------
Judge Garibotto of Buenos Aires Court No. 2 is currently
reviewing the merits of the reorganization petition filed by
Bodegas Margus S.R.L. La Nacion recalls that the company filed
the petition following cessation of debt payments.
Reorganization will allow the Company to avoid bankruptcy by
negotiating a settlement with its creditors.

Bodegas Margus, a wine distributor in Buenos Aires, has stated
assets of US$2,100,398.54 with liabilities of US$851,494

Clerk No. 4, Dr. Romero, assists the court on the Company's
case.

CONTACT: Bodega Margus S.R.L.
         Lavalle 2628
         Buenos Aires


ECYM S.A.: Judge Approves Bankruptcy
------------------------------------
Ecym S.A. was declared bankrupt after Judge Dieuzeide of Court
No. 1 endorsed the petition filed by Cisilotto Hermanos Sacifi
for the company's liquidation. Argentine daily La Nacion reports
that the credior has claims totaling US$5,098.02 against the
Company.

The court assigned Mr. Ricardo Bataller to supervise the
liquidation process as trustee. He will validate creditors'
proofs of claims until September 7, 2004.

CONTACT: Ecym S.A.
         Lo-yola 527
         Buenos Aires

         Mr. Ricardo Bataller, Trustee
         Junin 684
         Buenos Aires


EDEMSA: French Parent Confirms Plans to Sell Stake
--------------------------------------------------
French state power company EDF confirmed in a press release that
its international unit EDFI is selling a controlling stake in
the Argentine power distribution company Edemsa to the local
Iadesa consortium, Business News Americas relates.

The Iadesa consortium is composed of Argentine businessmen Jose
Angulo, Juan Carlos Angulo, Omar Alvarez and Jacques Matas. They
currently own a 12% stake in Sodemsa consortium that owns 51% of
Edemsa. EDFI is selling an 88% stake in the Sodemsa consortium,
meaning, if the purchase goes through, Iadesa will have a 100%
stake in Sodemsa and therefore 51% control of Edemsa.

The transaction is expected to close in about three months once
the French government, EDF's controller, approves it. During
these next three months, EDF and the new owners will jointly
manage Edemsa.

The sale is subject to various administrative conditions,
including the renegotiation of Edemsa's US$115 million debt,
which will be assumed by Iadesa, according to the local press.

EDF didn't reveal the size of the amount involved in the
transaction but earlier reports say Iadesa will pay US$50
million cash for the stake.

EDF, through the Sodemsa consortium, purchased Edemsa for US$237
million in a 1998 privatization. Edemsa has over 1,000km of high
voltage transmission lines, over 12,000km of distribution lines,
and an 110,000-square-kilometer concession area.

Edemsa has been buffeted by the country's rates freeze in recent
months. The pesofication of these rates as well as the end of
dollarization has also affected the company's bottom line. Of
the Company's total US$115 million debt, US$80 million is with
the banks Regional de Cuyo, Galicia, European bank for Latin
America BEAL, and French banks Societe Generale, Credit Agricole
and Credit Lyonnais.


EG 12: Credit Verification Ends
-------------------------------
Creditors of bankrupt Argentine company EG 12 S.A. will have
until July 13, 2004 to submit their claims for verification.
Failure to comply with the verification deadline will mean
disqualification from the payments to be made once the Company's
assets are liquidated.

CONTACT: Mr. Mario Suez, Trustee
         Rodriguez Pena 454
         Buenos Aires


ESTUDIO MARITIMO: Court OKs Creditor's Bankruptcy Call
------------------------------------------------------
Estudio Maritimo Internacional S.A. entered bankruptcy after
Judge Dieuzeide of Buenos Aires Court No. 1 approved a
bankruptcy motion filed by Banco Frances S.A., reports La
Nacion. The Company's failure to pay US$5,684 in debt prompted
the liquidation petition.

Working with Dr. Galli, the city's Clerk No. 2, the Company
assigned Mr. Jorge Mencia 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 September 15, 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: Estudio Maritimo Internacional S.A.
         Avenida Cordoba 950
         Buenos Aires

         Mr. Jorge Mencia, Trustee
         Uruguay 328
         Buenos Aires


GLASSIER: Individual Reports Due Tomorrow
-----------------------------------------
Glassier s Shop S.R.L. crossed an important part in its
liquidation with the closing of the verification period on June
1, 2004. Following claims verification, Mr. Ricardo Felix
Fernandez, the trustee, will prepare the individual reports for
court review on July 13, 2004. Results from this review will
determine the payment ratios to be implemented after the assets
of the Company are liquidated.

CONTACT: Glassier s Shop S.R.L.
         Grito de Asencio 3448
         Buenos Aires

         Ricardo Felix Fernandez
         Tucuman 1567
         Buenos Aires


IANSON S.A.: Seeks Reorganization Approval
------------------------------------------
Ianson S.A., a sports apparel retailer operating in Buenos
Aires, has requested reorganization after defaulting on its debt
payments.

The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Judge Uzal of Court No. 26. Dr.
Moron, Clerk of Court No. 52, assists on this case.

CONTACT: Ianson S.A.
         Migueletes 1050
         Buenos Aires


LLOYDS ARGENTINA: Bids Goodbye to Argentina
-------------------------------------------
Lloyds Bank ends its 140-year affair with Argentina as it closes
shop in the wake of the country's banking crisis. The decision
will affect 34 branches in the country with combined deposits of
US$742 million.

Prior to the closure, Lloyds Bank Argentina received a large
capitalization loan from its London headquarters as part of a
restructuring package.

The Economist says that Lloyds Argentina is the second
subsidiary to close since October 2003 when Lloyds TSB sold its
Brazilian operations, involving US$815 million, to Hong Kong
Shanghai Bank Corporation (HSBC).

The recent divestments indicate that Lloyds TSB is re-evaluating
its emerging market activities in Latin America. However, the
bank has confirmed that it will continue to operate in Uruguay.

Banex, Patagonia-Sudameris and Comafi have reportedly shown
interest in taking over Lloyds Argentina.


SAMPIERI TRADING: Trustee Readies Reports for Submission
--------------------------------------------------------
The individual reports culled from creditors' claims submitted
during the verification phase of the Sampieri Trading S.R.L.
bankruptcy is due for court presentation on July 13, 2004.

Mr. Guillermo Hector Fernandez, the court-appointed trustee
preparing these documents, will also provide the court with a
general report on the Company's bankruptcy on September 8, 2004.

CONTACT:  Guillermo Hector Fernandez, Trustee
          Cerrito 520
          Buenos Aires


* Argentina Overcomes Important Hurdle to $13B Loan From IMF
------------------------------------------------------------
The Argentine Senate finally approved late Wednesday the
controversial fiscal responsibility bill aimed at regulating
spending by the country's different provincial governments,
according to a report release by United Press International.

The bill is one of the main demands set forth by the
International Monetary Fund (IMF) to grant Argentina a three-
year, US$13-billion assistance loan.

The IMF is presently conducting its third review of the loan
agreement it signed last year with Argentina.

The bill's main provision calls for debt servicing not to exceed
15% of a province's income. Provincial indebtedness and debt
issuance were pivotal for precipitating Argentina's bond default
in early 2002.

Although Argentina has far exceeded market expectations in its
economic recovery, it is still lacking in other pledges to the
IMF such as restructuring public banks and implementing new tax-
evasion regulations.



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

RR DONNELLEY BARBADOS: To Shut Down Next Month
----------------------------------------------
RR Donnelley, Barbados, which prepares financial documents for
international companies and legal firms, is closing its doors
next month, costing 100 people their jobs.

Confirming the plan to the Daily Nation, Judy Poole, director of
communications with RR Donnelley, New York, said that the
closure was part of the company's "strategy alignment" to cut
cost following a downturn in the world economy in 2001 and 2002.

The closure of the Wildey, St Michael facility will be
undertaken in phases, Poole said. Some staff had already been
sent home, while others will go at the end of this month and the
final group of employees to be displaced by the end of August.



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

GLOBAL CROSSING: NASDAQ Approves Request to Continue Trading
------------------------------------------------------------
Global Crossing (Nasdaq: GLBCE) announced Tuesday, July 6, 2004
that a NASDAQ Listings Qualifications Panel has granted the
company's request that its common stock continue to be traded on
the NASDAQ National Market until July 30, 2004, giving the
company until that date to return to full compliance with
exchange listing requirements.

To return to compliance, the company will need to provide
additional information to NASDAQ regarding the company's
response to the cost of access issue and to re-file with the SEC
audited 2002 and 2003 financial statements and unaudited first
quarter 2004 financial statements, and related periodic reports.
The company is working toward meeting the July 30, 2004 deadline
and reported making progress toward that goal. The panel also
conditioned the company's ongoing listing on timely filing of
all periodic reports with the SEC for the next year.

"We've made significant progress on both internal and
independent reviews of cost of access issues, including the
completion of Deloitte and Touche's investigation which did not
reveal any management integrity issues," said John Legere,
Global Crossing's chief executive officer. "We're grateful for
the panel's decision today, which gives us time to finalize our
financials and return to compliance."

Grant Thornton LLP is in the process of conducting audit
procedures with respect to the company's cost of access
liabilities and cost of access expenses and evaluating the
appropriate accounting treatment for any potential
understatement to determine whether it can reissue its
previously withdrawn audit reports. Once Grant Thornton
completes its audit work, the company hopes to make the
appropriate filings with the SEC to regain compliance with SEC
requirements.

ABOUT GLOBAL CROSSING

Global Crossing (Nasdaq: GLBCE) provides telecommunications
solutions over the world's first integrated global IP-based
network. Its core network connects more than 300 cities and 30
countries worldwide, and delivers services to more than 500
major cities, 50 countries and 6 continents around the globe.
The company's global sales and support model matches the network
footprint and, like the network, delivers a consistent customer
experience worldwide.

Global Crossing IP services are global in scale, linking the
world's enterprises, governments and carriers with customers,
employees and partners worldwide in a secure environment that is
ideally suited for IP-based business applications, allowing e-
commerce to thrive. The company offers a full range of managed
data and voice products including Global Crossing IP VPN
Service, Global Crossing Managed Services and Global Crossing
VoIP services, to more than 40 percent of the Fortune 500, as
well as 700 carriers, mobile operators and ISPs.

     CONTACT GLOBAL CROSSING:
     Press Contacts
     Becky Yeamans
     + 1 973-937-0155
     PR@globalcrossing.com

     Tisha Kresler
     + 1973-937-0146
     PR@globalcrossing.com

     Fernanda Marques
     Latin America
     + 1 305-808-5912
     LatAmPR@globalcrossing.com

     Mish Desmidt
     Europe
     + 44 (0) 7771-668438
     EuropePR@globalcrossing.com

     Analysts/Investors Contact
     Mitch Burd
     + 1 800-836-0342
     glbc@globalcrossing.com

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


OVERSEAS PARTNERS: Sells US Reinsurance Subsidiary for $43M
-----------------------------------------------------------
Bermuda-based Overseas Partners Limited (OPL) sold its US
reinsurance arm Opus Re to Odyssey Re Holdings Corp. (ORH) for
US$43 million, the Royal Gazette reports.

OPL, which went into run off in early 2002, had hoped to sell
Opus Re as a going concern. But it revealed earlier this year
that Opus was now also in run off after incurring losses that
were expected to exceed premium earned.

OPL said the casualty and long tail business that Opus Re wrote
previously was behind a net underwriting loss of US$8.5 million
posted by OPL during the first quarter of 2003. Now Odyssey Re
has bought up Opus Re as a run off company.

Prior to its previously announced exit from the U.S. reinsurance
business, Opus Re had underwritten business primarily in 2001
and 2002. At March 31, 2004, Opus Re had total assets of
approximately US$248 million and loss reserves of US$161
million.

Standard & Poor's Ratings Services said Wednesday that its
ratings on Odyssey Re (BBB-/Stable/--) and related subsidiaries
will not be affected by the recent announcement of ORH's
proposed acquisition of Opus Re. S&P expects the US$43 million
purchase price to be paid in cash, with no material change in
the group's financial leverage.

The completion of the transaction is subject to customary
closing conditions, including the receipt of regulatory
approvals. ORH expects the closing of the transaction will occur
on or about September 30, 2004.

ORH had stockholders' equity of $1.4 billion and total assets of
$6.6 billion as of March 31, 2004. The group's operating
performance remained strong through the first three months of
the year, with a GAAP combined ratio of 95% and ROR of 9.3%.



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

ABRIL: Sells Minority Stake as Part of Efforts To Cut Debt
----------------------------------------------------------
Abril, publisher of Brazil's biggest weekly magazine, Veja, and
owner of cable television TVA, said it sold a 14% stake to
private equity funds managed by a unit of Los Angeles-based
Capital Group Cos. for BRL150 million (US$49 million), relates
Bloomberg.

Citing a statement from the Sao Paulo-based company, Bloomberg
reports that the Civita family will continue to control the
media company,

The sale of a stake "is a result of all our efforts to solve our
debt problem in the last years," said Roberto Civita, president
of Abril, in a statement. "It will also give us better
conditions to continue to grow."

Last year, Abril sold stakes in Internet company UOL Inc. and
software unit Lab One Systems SA in a bid to reduce debt. It
also discontinued publication of certain unprofitable magazine
titles.

Founded in 1950 by the late Victor Civita, who was born in New
York and raised in his parents' native Italy, Abril started out
as a small publishing house whose first title was the Brazilian
edition of Walt Disney Co.'s Donald Duck. Mr. Civita's son
Roberto is now chairman of the board.


BANCO VOTORANTIM: S&P Rates $50 MM MTNs 'B+'
--------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' foreign-
currency long-term credit rating to Banco Votorantim S.A.'s
(Banco Votorantim) $125 million fixed-rate notes (under its Euro
medium-term notes program), to be launched on July 19, 2004 with
a coupon of 5% (annual), maturing on July 19, 2006. The
repayment of these notes will be in full at maturity. The local-
currency credit ratings on the bank are BB/Stable/B and the
foreign-currency credit ratings are B+/Positive/B.

The ratings on Banco Votorantim S.A. consider the potential
risks associated with the bank's treasury business, its exposure
to sovereign risk through its securities portfolio, a common
issue for Brazilian banks, and the risks associated with the
economic environment in Brazil. The ratings also benefit from
the implicit support of the Votorantim Group (foreign currency,
B+/Positive/--; local currency, BBB-/Stable/--); the group's
strong brand name recognition; and the bank's good
profitability, experienced management team, and efficient
decision-making processes.

"The Votorantim Group is one of the largest and most influential
industrial conglomerates in Brazil. Its brand name recognition
has helped the bank to leverage on its business, and the images
of both organizations are closely linked," said Standard &
Poor's credit analyst Daniel Araujo. The conglomerate supervises
the bank's activities and operations, and its conservatism
permeates the bank's activities. Banco Votorantim's management
is made up of professionals with vast experience in the
financial markets and the Group's companies.

Banco Votorantim has taken advantage of its competitive business
profile to grow its business. In 2003, for instance, market
share related to the auto finance business reached approximately
10% as compared to 7% in 2002, reflecting a well-based strategy
aimed at organic growth and higher penetration in some regions
of the country.

The stable outlook on Banco Votorantim's local-currency credit
rating incorporates the economic risks of the Brazilian banking
industry and the balance between its good business profile, good
management, high profitability, and the potential risks related
to the quality of its growing private loan portfolio, especially
its consumer loans segment and its government securities.

In the event of a downgrade or negative change for the local-
currency sovereign credit rating and/or outlook on Brazil, the
local-currency credit rating and/or outlook on Banco Votorantim
would move in tandem. If, on the other hand, the sovereign local
credit rating has positive changes or upgrades, Banco Votorantim
would be assessed on a case-by-case basis. The main negative
item that could generate downward pressure on the ratings on
Banco Votorantim is asset quality-related. On the upward side,
the rating would benefit from maintaining asset quality under
control and qualitative improvements in profitability and
capitalization.


BOMBRIL: Files Suit Against Former Owner to Recoup Unpaid Debts
---------------------------------------------------------------
Bombril SA, a Brazilian maker of cleaning products, is suing its
former owner, the insolvent Italian food group Cirio, as part of
an attempt to recoup unpaid debts, reports Reuters.

The suit, which was filed Wednesday in Rome, named other
defendants including Bombril Cirio International SA, Capitalia
SpA, Banca di Roma SpA, Cragnotti & Partners Capital Investment
NV, C&P Overseas Ltd. and Cirio's former boss Sergio Cragnotti.

Cirio is seeking to recover unpaid money, which is related to
the 1998 sale of 100% of Cirio Holding SA SpA to Bombril
International SA, says Reuters. Bombril did not say how much
money it was looking to recover, but earlier this year Bombril
took provisions worth BRL3 billion (US$988 million) as a result
of the unpaid debts.

Bombril was placed under the control of a court-appointed
administrator in July 2003 while its former Brazilian owner
battles for control of the firm with Cirio. In the latest legal
update, the court favored the former owner, Ronaldo Sampaio
Ferreira. The justice system however, will have the final say on
the matter.


CEMIG: Reorganization Gets Go-Ahead From State Government
---------------------------------------------------------
Brazil's Minas Gerais state-owned integrated power company Cemig
obtained a green light from the state government to implement
its planned reorganization, Business News Americas reports.

The reorganization will involve dividing the business into
generation, transmission and distribution units, and putting
these units under the Cemig holding company.

The move is part of sweeping reforms to Brazil's power sector,
which call for state-owned companies to abandon their vertical
structure and divide their generation, transmission and
distribution activities into separate companies. The reforms
have been approved in Brazil's Congress this year and are
starting to be implemented.

CONTACTS: CEMIG
          Av.Barbacena, 1200 - Santo Agostinho - CEP 30190-131
          Belo Horizonte - MG - Brasil
          Fax (0XX31)299-4691
          Tel.: (0XX31)349


CFLCL: SR Rating Upgrades Credit Rating
---------------------------------------
The Rating agency SR Rating upgraded the credit rating
attributed to the company Companhia Forca e Luz Cataguazes-
Leopoldina (CFLCL) to "BBSR" on the global scale and "brA-" on
the "br" equivalence scale, which denote a low credit risk. This
upgrade was basically based on the successful restructuring of
Cataguazes-Leopoldina's debt, which reduced the overall
proportion of the consolidated short-term debt (from 45% of
total indebtedness in 2002 to 29% in 2003) and the better
revenue and results figures posted by the company (revenue up by
25% on previous year and net income of R$16.9 million in 2003)
and its subsidiaries - CENF, CELB, Energipe and Saelpa - which
also recorded profits in 2003. This rating was also awarded to
the 6th issue of simple debentures by CFLCL - performed in two
series and amassing R$130 million - on account of the additional
risk-lowering guarantees included under the issue.

Subsidiary Cat Cat-Leo Energia wins tender to build Ombreiras
SHP

Subsidiary Cat-Leo Energia S/A, the company in charge of all the
power station construction projects executed by the Sistema
Cataguazes-leopoldina Cataguazes-Leopoldina, is contracting out
its experience and providing services to third parties. It has
been contracted by the company Arapucel Ombreiras S/A, which
belongs to the Brennand Group, to execute the civil construction
work on the Ombreiras SHP (26 MW) which is located in the
municipality of Araputanga in Mato Grosso State. The
construction work was initiated on June 01 and shall run for 16
months.

Consolidated revenue of Cataguazes Cataguazes-Leopoldina is
R$648 million in 5 months

The gross operating revenue of the Sistema Cataguazes-Leopoldina
in the first five months of 2004 rose by 34% as compared to the
same period in 2003, reaching a total of R$648 million. Physical
energy sales amounted to 2,720 GWh, rising by 5.0% as compared
to the same period last year.

This performance was mainly due to sales to the MAE - Wholesale
Energy Market, given that sales to retail markets at the
companies comprising the Sistema Cataguazes-Leopoldina has
decreased by 2.6% (4,6% at parent company) during the same
period. Such reduction was caused mainly due to loss of three
free consumers in the concession area of the Sistema Cataguazes-
Leopoldina, one of which was lost by CFLCL and two by subsidiary
Energipe, which reflected a 10.7% drop in consolidated physical
sales to the industrial sector. On the other hand, the
distributions are billing these clients the usage of the
distribution system, which cushioned the financial impacts
resulting from this reduction.

CONTACT:  (In Cataguases)
          Phone: +55 32 3429-6000
          Fax: +55 32 3429-6480 / 3429-6317

          (In Rio de Janeiro)
          Phone: +55 21 2122-6900
          Fax: +55 21 2122-6931

          Web site: http://www.cataguazes.com.br

          E-mail: stockinfo@cataguazes.com.br


COPEL: Details Recent Extraordinary Meeting Minutes
---------------------------------------------------
1. PLACE: Rua Coronel Dulcidio n§ 800, Curitiba - state of
Parana.

2. DATE AND TIME: July 6, 2004 at 9.00 a.m.

3. BOARD OF THE MEETING: Joao Bonifacio Cabral Junior -
Chairman, Paulo Cruz Pimentel - Executive Secretary.

4. DELIBERATIONS: In order to reach a decision about the First
Amendment to the Commitment for Disposing the Shares pertaining
to the Capital Stock of the Company named Centrais Eletricas do
Rio Jordao S.A. - Elejor, referring to the increase of stock
interests held by Copel in that Venture, the Board of Directors
resolved to await the approval of the issue by both CADE
(Administrative Council for Economic Defense) and Aneel
(Brazilian Electricity Regulatory Agency). Regarding the sixth
installment of the loan agreement tied to the original
agreement, the Board of Directors decided to wait for the
conclusion of auditing works in process at Elejor scheduled to
occur within 10 days to settle the payment.

5. SIGNATURES: JOAO BONIFACIO CABRAL JUNIOR - Chairman; ACIR
PEPES MEZZADRI; AMERICO ANTONIO GAION; LINDSLEY DA SILVA RASCA
RODRIGUES; SERGIO BOTTO DE LACERDA; LAURITA COSTA ROSA; PAULO
CRUZ PIMENTEL - Executive Secretary.

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


EMBRATEL: Issues Extraordinary General Meeting Notice
-----------------------------------------------------
The stockholders of EMBRATEL PARTICIPACOES S/A are hereby
invited to the Extraordinary General Meeting that will be held
in the Company's registered offices, located in the Capital of
the State of Rio de Janeiro, at Rua Regente Feijo, No. 166,
suite 1687-B, in the downtown (Centro) district, City and State
of Rio de Janeiro (RJ), Federal Republic of Brazil, at 5 PM
Friday, July 23, 2004, to decide on the following Agenda: (i)
Election of the members of the Board of Directors.

GENERAL INSTRUCTIONS:

(a) The power-of-attorney (proxy) instruments are to be
deposited at the Company's registered offices forty-eight (48)
hours prior to the date set for the Meeting to be held.

(b) The stockholders participating in the Fungible Custody of
Registered Shares of Stock Markets wishing to take part in this
Meeting are to submit a statement issued by the appropriate body
containing their respective equity stake at least two (2) days
before the Meeting is held.

(c) In the manner provided by CVM Normative Instruction No. 165
of December 11, 1991, as worded by Article 1 of CVM Instruction
No. 282 of June 26, 1998, the percentage required for requesting
multiple voting will be five per cent (5%) of the voting capital
stock.

CONTACTS: Ms. Silvia M.R. Pereira
          Investor Relations
          tel: (55 21) 2121-9662
          fax: (55 21) 2121-6388
          email: silvia.pereira@embratel.com.br
                 invest@embratel.com.br

          Web site: www.embratel.net.br


EMBRATEL/TELEMAR: STJ OKs Rates Hike Implementation
---------------------------------------------------
Brazilian telecoms operators Embratel and Telemar can now
implement the average hike of 7.43% in local and long-distance
fixed line telephony authorized by telecoms regulator Anatel on
June 29, reports Business News Americas.

This, after Mr. Edson Vidigal, president of federal appeals
court STJ, canceled an injunction preventing the companies from
applying such adjustments.

However, the STJ decision does not deal with the merits of the
case brought by a Rio de Janeiro consumer defense organization,
Afcont, which must still be examined by the 9th federal district
court in Rio de Janeiro. Afcont claimed that the use of the IGP-
DI inflation index unfairly hurts consumers because it
disproportionately reflects volatility in the exchange rate
against the US dollar.


LIGHT SERVICOS: Owed BRL700 Mln in Unpaid Service Bills
-------------------------------------------------------
Brazilian power distributor Light Servicos de Eletricidade,
owned by France's Electricite de France (EDF), is owed about
BRL700 million (US$1=BRL3.08) in unpaid bills, the Company said
Friday.

Light is the distributor that suffers the most losses in Brazil
with power theft and illegal connections. Out of the BRL700
million in payments Light has yet to receive, about 40% relates
to state-owned companies and the state and city government. Rio
de Janeiro's water company Cedae, for example, owes BRL100
million to Light, the Company said.

The utility provides electricity to 3.4 million clients in the
state of Rio de Janeiro.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO

MRS LOGISTICA: CVRD to Negotiate Ownership
------------------------------------------
The Brazilian mining company CVRD has until today, Monday, to
present a proposal to the national agency ANTT (Agencia Nacional
de Transporte Terrestre) regarding its ownership in the railroad
manager MRS Logistica.

According to the ANTT, no shareholder can own more than a 20%
stake in MRS Logistica's voting capital, meaning, CVRD has got
to rid of some of its 35.9% stake in the Company.

In 2001, Vale held 18.8% common stocks and in 2003, it added
17.6% more with the acquisition of Caemi.

In order to keep its 17.6% stake, market sources suggested Vale
would be negotiating the distribution of the 18.3% stake among
other shareholders - CSN (Companhia Siderurgica Nacional),
Usiminas, Gerdau and MBR. As a result of this plan, CSN and MBR,
which jointly own a 32% stake, would hold 27% each, while
Usiminas would have 20% and Gerdau, more 2.2%.

MRS Logistica reported a net debt of BRL623.6 million in the
1Q04, 5.5% lower than the BRL659.5 million recorded in December
2003 and 33% less than at 1Q03, as a result of the strong cash
generation during the
period.

MRS is a railway that provides freight transportation of iron
ore, steel and other industrial products in Brazil. Three
principal rail lines of 1,700 kilometers serve as key
transportation links connecting Rio de Janeiro, Belo Horizonte,
Sao Paulo and the region's main ports.

CONTACT:  MRS LOGISTICA S.A.
          Praia de Botafogo, 228/1201-E
          22250-906 - Rio de Janeiro - RJ
          Brasil
          Contacts: Eduardo Cassinelli - Treasurer Marco Andre
                    Guimaraes - Financial Manager
                    Maria Lucia Silveira - Financial Analyst

                    Tel.: 55-21-2559-4600
                    Fax: 55-21-2552-2635
                    E-mail: daf@mrs.com.br
                    Home-Page: www.mrs.com.br


NET SERVICOS: Globopar, Bradesplan Enter Shares Exchange Accord
---------------------------------------------------------------
Net Servicos de Comunicacao S.A. (the "Company" or "Net"), a
publicly-held company, with address in the City and State of Sao
Paulo, at Rua Verbo Divino, 1.356 - 1§ andar, Chacara Santo
Antonio, enrolled with the CNPJ/MF under number 00.108.786/0001-
65, under the terms of CVM Rule nr. 358/02, hereby reports the
information received July 8, 2004 from its shareholders Globo
Comunicacoes e Participacoes S.A. ("Globopar"), Distel Holding
S.A. ("Distel"), Roma Participacoes Ltda. ("Roma") (Globopar,
Distel and Roma are jointly referred to as "Globopar") and
Bradesplan Participacoes S.A. ("Bradesplan").

On July 7, 2004, Globopar and Bradesplan entered into an
exchange of shares agreement, by means of which Globopar will
transfer to Bradesplan one hundred and thirty million, five
hundred eleven thousand, and ten (130,511,010) preferred shares
issued by Net, representing 6.4% of the Company's total capital
stock, and Bradesplan will transfer to Globopar an equal number
of common voting shares issued by the Company, representing 6.4%
of the Company's total capital stock. In addition, Globopar will
pay to Bradesplan, as a condition precedent to the effectiveness
of the exchange, the amount of R$ 0.119368117 per exchanged
common voting share.

The common voting shares owned by Bradesplan will be offered to
the other parties to the Net Shareholders' Agreement currently
in force and, in the event such other parties exercise their
right of first refusal, the exchange will be contracted by and
among Bradesplan, Globopar and such other parties, in the
proportion of the exercised preemptive right, under the exact
terms of the exchange agreement entered into by and between
Globopar and Bradesplan.

The exchange will be concluded no later than October 7, 2004.
Once concluded, the rights of Bradesplan and Bradespar S.A.,
respectively as a party and an intervening party to the Net
Shareholders' Agreement currently in force, will be terminated
for all intents and purposes.

The appropriate governmental authorities will be notified of the
exchange agreement.

CONTACT:  NET SERVICOS DE COMUNICACAO S.A.
          Marcio Minoru or Rodrigo Alves, 55 11 5186-2811
          E-mail: ri@netservicos.com.br


* Brazil Sells $750M, 10-year Global Bonds
------------------------------------------
Brazil sold Wednesday US$750 million in 10-year global bonds,
seizing the opportunity presented by the interest increase
implemented by the U.S. Federal Reserve.

According to Dow Jones Newswires, the deal, via Deutsche Bank
and Morgan Stanley, carried a 10.80% yield, in line with initial
indications. The notes were priced at 98.192 and pay a 10.50%
coupon, according to a person involved with the transaction.

Offers for the bonds totaled US$1.6 billion, proving that
Brazilian debt is still an attractive investment.

The bonds are rated single-B-plus by Fitch Ratings and are
expected to receive a B2 rating by Moody's Investors Service and
single-B-plus by Standard & Poor's.



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

ENERSIS: Appeals Court Sustains $55M Fine Vs Board
--------------------------------------------------
Six former Enersis stockholders accused of manipulating the
Chilean Company's sale to Endesa move closer to paying a US$55
million fine imposed seven years ago by the country's securities
regulator.

Mr. Jose Yuraszeck, the CEO at the time of the sale, along with
Mr. Luis Fernando Mackenna, Mr. Marcelo Brito, Mr. Arsenio
Molina, Mr. Marcos Zylberberg and Mr. Eduardo Gardella lost
their case in Santiago after the appeals court ruled that the
executives took advantage of their position to cash in on the
sale while concealing vital information from other board
members.

The court ruling quoted by EFE says that the group obtained
inordinate compensation for their shares as "a clear reward for
the benefits, cooperation pledges and loyalty they gave
purchaser Endesa Espa¤a."

Mr. Yuraszeck's group took in US$500 million, almost half of the
purchase price, although they collectively control only 0.05
percent of Enersis.

The counsel representing Yuraszeck, Attorney Pablo Rodriguez
Grez, will appeal the ruling.



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

AXTEL: Expands to San Luis Potosi
---------------------------------
Mexican startup telco Axtel commenced operations Wednesday in
San Luis Potosi, where it plans to spend US$25 million over the
next five years, reports local paper Reforma.

The expansion is part of this year's US$145-million plan to
expand services in six cities. During the first phase of the
expansion in San Luis Potosi, the Company will be offering its
local telephony, Internet and data services for 80% of the
population.

According to a Business News Americas report, Axtel recently
started operations in Queretaro, also accompanied by a US$25
million investment. One of the packages Axtel is offering is a
two-line contract that would prevent a home's Internet users
having a connection interrupted by telephone calls.

Axtel's executive director for the northwest region Samuel Lee
revealed that the Company is targeting cities where the only
competition is Telmex or others who are focused mostly on long-
distance services. The Company has 370,000 subscribers, 62% of
which are residential and the rest business



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

AEROCONTINENTE: 15 Years in the Pen for Founder - Prosecutors
-------------------------------------------------------------
Peru's airline mogul could face a steep jail term if prosecutors
in his drug trafficking and money laundering trial would have
their way.

Accusations of involvement in a cocaine smuggling operation in
the mid 90's has once again landed Mr. Fernando Zevallos, Aero
Continente's founder, in the midst of a legal battle that could
place him behind bars for 15 years.

This time, testimony from the prosecution's star witness,
convicted drug lord Jorge Lopez, might prove key to the outcome
of the case. Mr. Lopez has claimed that he used AeroContinente
to ferry cocaine.

While numerous probes have hounded Mr. Zevallos in the past
years, his involvement in the drugs business has never been
established and he continues to deny the charges.

Dow Jones Business News reports that the court has barred Mr.
Zevallos from leaving the country during the run of the trial,
which prosecutors say could take several months.


* Peru Working With IFC to Improve Business Environment
-------------------------------------------------------
The International Finance Corporation's Latin America and
Caribbean Small and Medium Enterprise Facility (LAC SME
Facility, a regional technical assistance program headquartered
in Lima) and the Foreign Investment Advisory Service (FIAS, a
joint service of the World Bank and IFC) are working with the
Metropolitan Municipality of Lima to improve the local business
environment through simplifying municipal business regulations.

The project launched yesterday by the LAC SME Facility, FIAS,
and the Metropolitan Municipality of Lima aims to reduce
informality through simplifying municipal business regulations,
as municipal regulations account for the bulk of obstacles to
formalization.  The project will focus initially on simplifying
procedures for obtaining Operating Licenses, municipal permits
for business activity, and, where possible, urban development
regulations.

"This project builds on both FIAS' comprehensive analysis of
municipal investment barriers and the LAC SME Facility's success
in simplifying municipal business regulations in other
countries, deepening the impact of both FIAS' and the Facility's
work in the region," noted Michael Klein, Vice President of
Private Sector Development and Chief Economist.

"The LAC SME Facility's work with FIAS on this project
underscores IFC's strategy of making technical assistance an
integral, viable part of our work program.  This kind of work
which improves the business environment contributes to
attracting more private investment into countries," affirmed
Atul Mehta, Director for Latin America and the Caribbean.

According to the World Bank's Doing Business 2004 report that
provides objective measures of business regulations and their
enforcement, administrative barriers for business in Peru are
among the highest in the region.  For example, opening a
business requires, on average, 100 days, over 60% longer than in
neighboring Colombia.  Consequently, the percent of businesses
operating informally in Peru is over 50%, considerably higher
than in other countries in the region.

Such informality is detrimental to both the municipality and the
businesses themselves.  For businesses, it limits access to key
resources and support and, thus, potential for growth.  For
municipal governments, high informality prevents the collection
of accurate, precise information about local economic activity,
which can be used to develop more effective support programs.

Moreover, informal enterprises do not contribute to the
municipal resources (through taxes, licensing fees, etc.),
further constraining the government's ability to support them.

In a separate study, "Municipal Administrative Barriers to
Investment," FIAS confirmed the Doing Business findings and
noted that complicated municipal regulations, particularly
related to Urban Development, actually work as a disincentive to
new investment.

ABOUT IFC
The mission of IFC (www.ifc.org) is to promote sustainable
private sector investment in developing countries, helping to
reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in
the international financial markets, helps clients improve
social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its
founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in
syndications for 2,990 companies in 140 developing countries.
IFC's worldwide committed portfolio as of FY03 was $16.8 billion
for its own account and $6.6 billion held for participants in
loan syndications.

ABOUT IFC LAC SME FACILITY
IFC's Latin America and Caribbean Small and Medium Enterprise
Facility, headquartered in Lima, Peru, promotes private sector
development by supporting small and medium enterprises, thus
contributing to job creation and poverty reduction in the
region.  It is a multidonor initiative backed by a $10 million
commitment from IFC and an expected $20 million in donor
contributions. Its areas of focus are strengthening SME
competitiveness; making it easier for SMEs to do business by
simplifying business regulations; broadening access to finance;
and fostering indigenous and socially responsible enterprises.

ABOUT FIAS
The Foreign Investment Advisory Service (FIAS) was founded in
1985 as a joint service of the International Finance Corporation
and the World Bank.  As part of the Investment Climate Unit of
the Private Sector Development Department, FIAS provides a wider
perspective on how to assess and respond to investment
constraints in the business environment.  FIAS offers much more
than one-way advice and written reports: through interactive
workshops and roundtable meetings that often include business
executives and other stakeholders, FIAS helps governments chart
technically and politically practical paths to change. Creating
a stable, neutral, and efficient environment for business can
bring in new investment and improve the productivity of existing
investment(s). Higher levels of investment and productivity are
key to stimulating growth in developing countries and raising
living standards.

CONTACT:  In Washington, D.C.
          Paul Melton
          Communications Officer
          IFC LAC SME Facility
          Phone: +1.202.473.7349
          E-mail: pmelton@ifc.org



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

BWIA: Likely to Spend More Than $2.4M to Repair Damaged Planes
--------------------------------------------------------------
Cash-strapped Trinidad carrier BWIA expects to lose another
US$1.2 million or more after a ServisAir vehicle crashed into
its Airbus A340 aircraft Wednesday night.

It is the second time a ServisAir truck has crashed into a BWIA
aircraft at Piarco International Airport. The first BWIA
aircraft, a Boeing 737, was damaged last month by another
ServisAir truck, costing the airline US$1.2 million in physical
losses and additional losses are still being calculated. The
aircraft was out of service for a month.

"A preliminary assessment of the A340 suggests it could be out
of service for a similar period and costs may exceed US$1.2
million," BWIA said in a statement.

With two aircraft out of service, BWIA is seeking new lease
arrangements to maintain its schedule during the peak summer
season.

According to BWIA's new corporate communications manager Dionne
Ligoure, the airline has been communicating with aircraft
lessors to acquire an aircraft to replace the A340.

"I can't say when we will finalise it. We are looking for any
aircraft that would suitably facilitate the operations. The
focus is on finding solutions to rectify this problem," Ligoure
said.

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


CDC: Unionist Calls for Dialogue, Law Reforms in Strike
-------------------------------------------------------
Labor Leader Owen Hinds urged a dialogue and proposed a
retooling of Trinidad and Tobago's Industrial Relations Act,
when asked to comment on the lingering strike at Caribbean
Development Company (CDC).

According to the Trinidad Guardian, the vice president of
umbrella union NATUC said that a solution to the strike would
only be reached if CDC workers and the management return to the
bargaining table.

Mr. Hinds also criticized the bias of Trinidad's labor law
against employees. He cited a current legislation allowing
companies to continue operations despite a worker lockout, a
situation similar to what has happened in CDC.

He suggested that the law should prevent companies from
operating when a lockout is in effect in order to promote "A
level playing field [that} will most surely accommodate
healthier, meaningful and responsible industrial relations in
the future."


NWRHA: Asked to Pay $24M Debt
-----------------------------
It's tough times ahead for Trinidad & Tobago's North West
Regional Health Authority (NWRHA) as government agencies close
in on unpaid debts and allegations of fiscal and management
deficiencies.

Trinidad Express reports that NWRHA has until the end of this
month to settle more than US$24 million in unpaid electric bills
before the Trinidad and Tobago Electricity Commission (T&TEC)
"[would] be forced to look at other alternatives to collect it."
Mr. Carl Nurse, acting CEO for NWRHA, is scheduled to meet T&TEC
officials next week to reconcile the account.

NWRHA has not paid its electricity charges since April 2001, a
large portion of which comes from The Eric Williams Medical
Sciences Complex at Mt. Hope, despite the US$10,830,550 million
allowance given by the Ministry of Health in November.

Apart from its T&TEC liability, NWRHA also failed to regularly
remit PAYE deductions to the Board of Inland Revenue (BIR). A
special audit made by the Auditor General's department in 2001
revealed significant non-compliance with the Income Tax Act
referring to the non-payment of Health Surcharge and PAYE.

The audit also stated that some NWRHA executives received
allowances in excess of the terms and conditions stipulated in
their contract and were made without approval of the Minister
and the Board.

Meanwhile, Prime Minister Patrick Manning recently created a
Commission of Enquiry to look into the qualifications of
management, professional and non-professional staff working for
the country's health care facilities.



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

EDC: Receives $50M Loan From ABN AMRO
-------------------------------------
Private energy generator Electricidad de Caracas (EDC) obtained
a three-year, US$50-million loan from Dutch bank ABN Amro to
fund investment projects, Business News Americas reports, citing
Reuters.

The recently obtained loan follows a three-year, US$104-million
syndicated loan with local banks Banco de Venezuela, Banesco and
Banco Mercantil for investment in the maintenance and expansion
of its power network.

EDC, a unit of US power firm AES Corp. (NYSE: AES), reported a
net loss of US$41.3 million in the first quarter of 2004 due to
devaluation in the local bolivar currency and an increase in
fuel costs. The Company reduced its debt in the quarter by 12.4%
to US$651 million.



                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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