TCRLA_Public/040713.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

            Tuesday, July 13, 2004, Vol. 5, Issue 137

                           Headlines


A R G E N T I N A

ADSUM: Trustee Readies for Close of Verification Phase
BANCO HIPOTECARIO: Looking to Snap Up BNL's Argentine Subsidiary
EXPRESO NOR SUR: Trustee Submits General Report
FINCA EL MOLINO: Trustee Wraps-Up Verification Period
IMPROTADORA CAMFER: Verification Deadline Approaches

RUTA PUBLICIDAD: Claims Verification Ends
SIDECO AMERICANA: Debt Accord Meets Resistance
TECNOMOVIL: Individual, General Report Due
* Argentina's SEC Filing Reveals Hurdles To Debt Repayment


B E R M U D A

FOSTER WHEELER: Foster Wheeler Extends Exchange Offer


B R A Z I L

ELETROPAULO METROPOLITANA: To Spend $90M to Boost Power Quality


C H I L E

TELEFONICA CTC: Parent Buys Three Million ADRs


C O L O M B I A

AVIANCA: Submits Debt Plan Under Chap. 11 U.S. Bankruptcy Law


C U B A

CLUB MED: Ownership of Cuban Property Questioned


H O N D U R A S

* Statement by IMF Managing Director on Visit to Honduras


M E X I C O

BANCOMEXT: Needs To Find Way Out of Slump
GRUPO MEXICO: Makes Early $50M Debt Payment to Citibank Unit
LUZ Y FUERZA: Losses Escalate During Jan-May Period


P E R U

AERO CONTINENTE: Govt. Steps In to Ensure Continued Operations


T R I N I D A D   &   T O B A G O

CDC: Workers Will Remain Locked-Out for Three Weeks


V E N E Z U E L A

SIDOR: Acquisition of Posven Completed


     -  -  -  -  -  -  -  -


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

ADSUM: Trustee Readies for Close of Verification Phase
------------------------------------------------------
The Validation of claims for the Adsum S.R.L. reorganization
case will end on July 14, 2004. All parties with claims against
the Buenos Aires-based Company must present proofs of the
indebtedness to the court-appointed trustee, Mr. Santiago Manuel
Quiben, before the said deadline.

The city's court no. 3 has scheduled the informative assembly,
where the settlement plan will be presented to creditors, on
April 25, 2004.

CONTACT: Adsum S.R.L.
         Malabia 2174
         Buenos Aires


BANCO HIPOTECARIO: Looking to Snap Up BNL's Argentine Subsidiary
----------------------------------------------------------------
Banco Hipotecario, one of Argentina's largest banks, is
reportedly in advanced talks with Italian banking group Banca
Nazionale del Lavoro (BNL) over plans to buy BNL's subsidiary in
Argentina.

Both camps however, have remained mum about the issue, although
BNL's director general, Mario Girotti, said in March that BNL
had received expressions of interest for its Argentinean unit.

Citing Rafael Ber, managing director at local consultancy
Argentine Research, Business News Americas reports that Banco
Hipotecario is a likely contender for BNL Argentina because it
fits well into the former's new retail strategy.

BNL Argentina, with its distribution network of some 100
branches, is a "logical buy" for Hipotecario with "clear synergy
advantages," Ber pointed out.

Ber also added that Hipotecario could get BNL's local unit for
an attractive price tag since the parent is bent on leaving
Argentina to reduce its emerging market exposure. As part of its
strategic exit plan from Latin America, BNL has already sold its
operations in Brazil and Uruguay.


EXPRESO NOR SUR: Trustee Submits General Report
-----------------------------------------------
Ms. Maria Cenatiempo, court-appointed trustee for the Expreso
Nor Sur S.A. bankruptcy, is scheduled to submit the case's
general report in court on July 14, 2004. The general report
provides an audit of the company's accounting and business
records and summarizes relevant events pertaining to the
bankruptcy.

Buenos Aires Court No. 8, assisted by Clerk No. 16, has
jurisdiction over this case.

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


FINCA EL MOLINO: Trustee Wraps-Up Verification Period
-----------------------------------------------------
Mr. Juan Ignacio Estevez, the trustee assigned to the Finca el
Molino S.A. bankruptcy, will review claims forwarded by the
Company's creditors until July 14, 2004.

After claims verification, the trustee will submit the
individual reports for court approval on September 09, 2004. The
presentation of the general report will also follow on October
22, 2004.

CONTACT: Mr. Juan Ignacio Estevez, Trustee
         Uruguay 750
         Buenos Aires


IMPROTADORA CAMFER: Verification Deadline Approaches
----------------------------------------------------
Creditors of bankrupt Importadora Camfer S.A. must present proof
of their claims before the verification period closes on July
14, 2004. Ms. Raqel Poliak, the court-appointed trustee, will
receive and validate these claims.

TCR-LA reports that Judge Gutierrez Cabello issued the
bankruptcy ruling against the Company after it defaulted on a
US$3,885 debt to Importadora y Exportadora Irmaos Leffa Ltda.

CONTACT:  Importadora Camfer S.A.
          Viamonte 1328, piso 5
          Buenos Aires

          Ms. Raquel Poliak, Trustee
          Lavalle 1527, piso 4 "16"
          Buenos Aires


RUTA PUBLICIDAD: Claims Verification Ends
-----------------------------------------
Ruta Publicidad S.A. nears the completion of its bankruptcy
after the claims verification period ends on July 14, 2004. Mr.
Jorge Feito, the trustee, will accept the claims and submit them
in court as individual reports.

TCR-LA earlier reported that Judge Garibotto of Buenos Aries
Court No. 2 ordered the Company's liquidation upon the request
of HSBC Bank of Argentina. Court records show that the Company
has outstanding debts worth US$16,717.32 from HSBC.

CONTACT:  Ruta Publicidad S.A.
          Iparraguirre 740
          Buenos Aires

          Mr. Jorge Fieto, Trustee
          Avenida Medrano 537
          Buenos Aires


SIDECO AMERICANA: Debt Accord Meets Resistance
----------------------------------------------
A group of creditors holding an important part of Sideco
Americana filed complaints against the Argentine company's
US$125-million debt restructuring agreement signed two months
ago.

Argentina's tax bureau AFIP, Aseguradora de Creditos y
Garantias, LG&E International and Mr. Juan Agustin Foglia
submitted a series of objections to commercial court 18,
secretariat 36, which is in charge of Sideco's bankruptcy
proceedings.

These creditors intend to make some amendments to the Company's
debt restructuring offer, which takes the form of an out-of-
court settlement, or APE.

Sideco is offering to repurchase debt for cash at 35% of face
value, a 5-year par guaranteed bond in which the Company keeps
the right to repurchase it for 40% of its value during the first
year or 45% in the second year, and a 10-year par bond with a
US$15 million subscription limit.

Sideco spokespersons said these complaints will not hamper the
restructuring process.


TECNOMOVIL: Individual, General Report Due
------------------------------------------
The general and individual reports pertaining to the Tecnomovil
S.A. bankruptcy case will be submitted in court on July 14,
2004. The court-appointed trustee, Ms. Ana Maria Varela, will
base these reports from the proofs of claims submitted by the
Company's creditors.

Buenos Aires Court No. 3, with the assistance of Clerk No. 5,
handles this case, which will end with the liquidation of assets
in order to satisfy creditor's claims.

CONTACT: Ms. Ana Maria Varela, Trustee
         Talcahuano 768
         Buenos Aires


* Argentina's SEC Filing Reveals Hurdles To Debt Repayment
----------------------------------------------------------
Economic instability, lawsuits from foreign creditors, and the
energy crises will play dominant roles in Argentina's continuing
struggle to settle its US$100 billion debt.

The Daily Times says that a report filed by the country's
Economic Ministry with the U.S. Securities and Exchange
Commission pointed that a significant decline in prices for main
Argentine commodity exports could affect the country's debt
servicing capability.

The government also said that contingent liabilities arising
from lawsuits filed by its creditors could limit future debt
repayments. A proposed class action suit pending in the U.S.
court would cover more than five hundred thousand investors in
Italy, Germany, France and the United States.

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

Natural gas shortages early this year coupled with the slump in
hydroelectric power production due to draught has also fueled
speculations of an economic slowdown.

The S.E.C. filing is part of the conditions for issuing new
bonds to be swapped for its defaulted public debt. Argentina's
recent debt restructuring proposal has not gained much support
from creditors.



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

FOSTER WHEELER: Foster Wheeler Extends Exchange Offer
-----------------------------------------------------
Foster Wheeler Ltd.(OTCBB:FWLRF) announced Friday that it is
extending, until 5 p.m. New York City time on Friday, July 30,
2004, its offer to exchange:

(1) its Common Shares and its Series B Convertible Preferred
Shares (the "Preferred Shares") for any and all outstanding
9.00% Preferred Securities, Series I issued by FW Preferred
Capital Trust I (liquidation amount $25 per trust security) and
guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC,
including accrued dividends;

(2) its Common Shares and Preferred Shares for any and all
outstanding 6.50% Convertible Subordinated Notes due 2007 issued
by Foster Wheeler Ltd. and guaranteed by Foster Wheeler LLC;

(3) its Common Shares and Preferred Shares for any and all
outstanding Series 1999 C Bonds and Series 1999 D Bonds (as
defined in the Second Amended and Restated Mortgage, Security
Agreement, and Indenture of Trust dated as of October 15, 1999
from Village of Robbins, Cook County, Illinois, and to SunTrust
Bank, Central Florida, National Association, as Trustee); and

(4) its Common Shares and Preferred Shares and up to
$150,000,000 of Fixed Rate Senior Secured Notes due 2011 of
Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain
Subsidiary Guarantors for any and all outstanding 6 3/4% Senior
Notes due 2005 of Foster Wheeler LLC guaranteed by Foster
Wheeler Ltd. and certain Subsidiary Guarantors; and solicitation
of consents to proposed amendments to the indenture relating to
the 9.00% Junior Subordinated Deferrable Interest Debentures,
Series I of Foster Wheeler LLC, the indenture relating to the
6.50% Convertible Subordinated Notes due 2007 and the indenture
relating to the 6 3/4% Notes due 2005.

As of the close of business on July 8, 2004, holders have
tendered the following amounts of the following securities: (1)
9.00% Preferred Securities, $2,513,675; (2) 6.50% Convertible
Subordinated Notes, $23,000; (3) Robbins Series C Bonds due
2024, $21,000, Robbins Series C Bonds due 2009, $7,000, and
Robbins Series D Bonds, $2,000; and (4) 6 3/4% Senior Notes,
$7,093,000.

As previously announced, Foster Wheeler intends to modify the
terms of the exchange offer. The modified terms and conditions
of the exchange offer are set forth in Foster Wheeler's
registration statements on Form S-4 (File Nos. 333-107054 and
333-117244) filed on July 8, 2004. 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 dealer manager for the exchange offer and consent
solicitation is Rothschild Inc., 1251 Avenue of the Americas,
51st floor, New York, New York 10020. Contact Rothschild at 212-
403-3784 with any questions on the exchange offer.

The exchange agent for the exchange offer is the Bank of New
York, London Branch.

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 statements on Form S-4 (File Nos. 333-
107054 and 333-117244); 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.

CONTACT: Foster Wheeler Ltd.
         Media Contact
         Ms. Maureen Bingert
         908-730-4444

         Investor Contact
         Mr. John Doyle, 908-730-4270

         Other Inquiries
         908-730-4000

         Web Site: www.fwc.com



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

ELETROPAULO METROPOLITANA: To Spend $90M to Boost Power Quality
---------------------------------------------------------------
Brazil's biggest power distributor Eletropaulo Metropolitana SA
revealed a five-year, BRL257-million (US$90 million) investment
plan to improve the power supply quality of its sub-transmission
network.

According to Business News Americas, most of the investment
projects will be planned together with state-owned transmission
company CTEEP.

For 2004 alone, the Company plans to invest BRL43 million in 50
projects to reduce the frequency of power cuts and meet quality
targets set by power regulator Aneel.

Eletropaulo is controlled by US power company AES Corp (NYSE:
AES) and operates in the city of Sao Paulo and surrounding
region. CTEEP covers the whole of Sao Paulo state.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations



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

TELEFONICA CTC: Parent Buys Three Million ADRs
----------------------------------------------
The Santiago bourse revealed Friday that Spain's Telefonica SA
bought 3 million American Depositary Receipts in its Chilean
unit Compania Telefonica de Chile SA (CTC), equivalent to 12
million shares and 1.3% of CTC's outstanding shares, the AP
reports.

While the purchase brings Telefonica closer to a majority in the
Company, it still only holds 44.9% of CTC, meaning it continues
to need approval from minority shareholders for the planned
spinoff of its mobile unit.

An extraordinary shareholders' meeting is scheduled for July 15
to approve CTC's plan to group its mobile unit under the wing of
Telefonica's Telefonica Moviles (TEM) unit.

Telefonica will pay CTC US$1.01 billion and assume a debt of
US$243 million for the mobile unit, which it plans to merge with
the Bell South (BLS) Latin American mobile assets it agreed to
buy in March.

CONTACT: TELEFONICA CTC CHILE
         Sofia Chellew
         E-mail: schelle@ctc.cl
         Tel.:56-2-691 3867

         Veronica Gaete
         E-mail: vgaete@ctc.cl
         Tel.:56-2-691 3867

         M.Jose Rodriguez
         E-mail: mjrodri@ctc.cl
         Tel.:56-2-691 3867

         Florencia Acosta
         E-mail: macosta@ctc.cl
         Tel.:56-2-691 3867



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

AVIANCA: Submits Debt Plan Under Chap. 11 U.S. Bankruptcy Law
-------------------------------------------------------------
Colombian troubled flagship carrier Aerovias Nacionales de
Colombia S.A. (Avianca) has submitted a debt restructuring plan
under Chapter 11 of the US Bankruptcy Law.

The proposal is based on a US$63-million investment proposal
from Brazil's Grupo Sinergy and Colombia's National Federation
of Coffee Growers, one of Avianca's owners.

The plan, submitted on July 1st with no corporate public
announcement, would offer general non-secured creditors 10% of
new seven-year notes, a percentage of the reorganized airline's
cash flow and any remaining cash after the repayment of
administrative, priority and secured debts.

Avianca's lawyers said the Company expects to release the
details of the plan on July 16, when the new audience on the
investment pact is to take place.

On June 1, Avianca said its board of directors prefers a
takeover bid from Grupo Sinergy over a rival one involving U.S.-
based Continental Airlines Inc.

"The initial Sinergy/OceanAir offer accomplishes the necessary
requirements that will allow the company to emerge from the
Chapter 11 bankruptcy filing," Avianca stated in a press
release.

Sinergy, led by Brazilian entrepreneur German Efromovich,
offered in March to inject US$63 million of capital into Avianca
and assume its debt of nearly US$300 million in return for a 75%
stake in Colombia's largest airline.

In April, Continental's chief executive, Gordon Bethune, said
its Latin American partner, Copa Airlines, also was bidding on
Avianca's assets.

The Colombian airline filed for Chapter 11 protection in the
U.S. in March 2003.

Avianca is currently owned by Colombia's National Federation of
Coffee Growers and Valores Bavaria, a leading Colombian
conglomerate.

Avianca, one of the world's oldest airlines, operates 290
national and international flights a day. It has fallen on hard
times recently due to lagging demand and heightened fuel costs.

Sinergy owns OceanAir, an air taxi company that serves Brazil's
oil industry but also operates regional routes serving more than
30 cities.



=======
C U B A
=======

CLUB MED: Ownership of Cuban Property Questioned
------------------------------------------------
A suit claiming that Club Med built on confiscated land has been
filed in the U.S. by Elvira de la Vega Glen, a Cuban immigrant.

Ms. de la Vega Glen, now 95, claims that the Varadero Beach
property where Club Med built a 337-room hotel in 1997 belonged
to her family before Fidel Castro came to power in Cuba.

She says that she inherited the property from her mother in 1943
and lost it in 1959 when she fled Castro's Cuba for the United
States. Ms. de la Vega Glen's son, who inherited half of the
property from her sister, is also a plaintiff.

The de la Vega Glen's counsel, Mr. Stuart Newberger, states that
Club Mediterranee Group may also face charges under the Trading
with the Enemy Act because of the company's substantial holdings
in Florida.

The Trading with the Enemy Act regulates and prescribes
penalties to American entities engaging in trade with identified
U.S. enemies in times of war. The current blacklist includes
Cuba.

Club Med sold its Varadero Beach property to Grupo Pinero last
year.



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

* Statement by IMF Managing Director on Visit to Honduras
---------------------------------------------------------
The Managing Director of the International Monetary Fund,
Rodrigo de Rato, made Friday the following statement in San
Pedro Sula:

"It is a great pleasure for me to visit Honduras and also to
participate in the Third Regional Conference on Central America,
held jointly by the IMF and the Central American Monetary
Council. This is my first visit to Latin America as Managing
Director, and it indicates our strong commitment to supporting
and working with the region. I have had the privilege of meeting
with President Ricardo Maduro and, earlier today, had valuable
discussions with ministers of finance and central bank
presidents from the region. I was impressed by the commitment of
the ministers and governors to outward-oriented growth and
continued regional and global integration-and by their
determination to address the challenges that come with this
process, especially assuring that the benefits of globalization
are more equitably shared.

"Central America can be proud of its achievements over the past
decade. Recent smooth elections in many countries demonstrate
the political maturity of the region, which has entered the new
millennium with an improved potential to achieve sustained
growth and poverty reduction. Macroeconomic policies and reforms
in the 1990s have raised growth rates, brought down inflation,
and strengthened external positions. This has put the region in
a better position to share in the ongoing global recovery, and
resist future shocks, while also providing the favorable setting
to intensify the reforms needed to sustain economic and social
development.

"Thus, fiscal consolidation strategies are key elements of the
economic programs in all countries in the region, and finance
ministers underscored to me their determination to seek the
necessary domestic political consensus for these programs.
Central Bank governors also emphasized their commitment to
prudent monetary management, and I was particularly reassured by
the priority that is being given throughout the region to
building sound and efficient financial systems.

"I have asked the senior leaders I met what more the IMF can do
to assist the region in achieving its objectives of rapid growth
and social development. I assured them that the Fund will
continue to be a strong partner in the region's progress. In
particular, we intend to further strengthen our close policy
dialogue by increasing the regional perspective of our work on
Latin America, fostering the exchange of cross-country
experiences, and assisting regional policy coordination efforts
in core areas such as financial sector supervision, tax policy
and administration, and economic statistics. As part of this
effort, we intend to increase further our technical assistance
to Central America in the coming years. Also, in response to
concerns about the declining trend in public investment in Latin
America and elsewhere, we have launched a number of pilot
studies to assess the scope for accommodating increased public
investment within sustainable and macro-economically sound
fiscal frameworks. The results of these studies are expected to
be discussed by the Fund Executive Board and with member
countries' experts early next year, and to be reflected in the
future approach of the Fund to policy advice and program design
in this area.

"In conclusion, I am optimistic that strong policies and
strengthened regional cooperation will allow the region to seize
this potential. The IMF is ready to lend its support, and we
look forward to continuing our close policy dialogue and
collaboration in the years ahead."



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

BANCOMEXT: Needs To Find Way Out of Slump
-----------------------------------------
Mexico's National Foreign Trade Bank (Bancomext) needs more than
just a restructuring program to escape from the financial slump
that could send it into bankruptcy.

Mr. Hector Reyes Retana, the bank's general director, admitted
in an El Economista article, "It is not an alternative to apply
a program of restructure, because we need a fundamental
solution."

Bancomext has sustained one of the highest losses in the
development- banking sector over the last three years. Its level
of arrears is at 10 percent, or five times the average in the
banking system, while its financial margin has slid 42.05% in
real terms since 2000.

In addition the bank's past-due portfolio has increased, half of
which comes from a US$400 million Cuban loan whose payment has
been frozen since 2002.

Bancomext has adopted painful measures to reverse its fortunes.
Since 2001, it has closed 14 branches, reduced staff by 33
percent and cut expenses by 21 percent.


GRUPO MEXICO: Makes Early $50M Debt Payment to Citibank Unit
------------------------------------------------------------
Grupo Mexico, a mining, metals and railroad company, made an
early US$50-million debt payment to a unit of Citigroup, reports
Business News Americas. Added to other debt prepayments, Grupo
Mexico has reduced its debt by 80%.

With regards to the remaining US$30 million in corporate level
debt, which is not due in the short term, international
relations VP Juan Rebolledo told Business News Americas that the
Company currently as resources to pay off the said debt.

Lcal financial group Monex said high metal prices are bolstering
the Company's financials. Monex is projecting a 36.9% increase
in the Company's net sales this year to MXN39.3 billion (US$3.42
billion) over 2003 and a 118% increase in EBITDA to MXN18.7
billion.

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


LUZ Y FUERZA: Losses Escalate During Jan-May Period
---------------------------------------------------
Losses at Mexico City's power distributor Luz y Fuerza del
Centro (LFC) swelled 63.4% to MXN2.6 billion in the January-May
2004 period, compared to losses reported in the same period last
year, reports Business News Americas.

Without the government's injection of MXN7.5 billion to cover
operating costs during the period, the Company would have
registered a MXN10.1-billion loss. Total debt at the end of the
Jan-May 2003 period was MXN93.4 billion pesos, while negative
equity stood at MXN6.1 billion.

The Company earlier indicated that theft and fraud, which
includes tampering with meters, illegal hook-ups and altered
billing, have been the primary causes of the burgeoning losses
at the Company.



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

AERO CONTINENTE: Govt. Steps In to Ensure Continued Operations
--------------------------------------------------------------
Peru's leading airline Aero Continente will continue flying even
though its insurance policy officially expired Saturday, the AP
Online reports.

Aero Continente was on the verge of being grounded after Global
Aerospace, the world's largest airline insurer, withdrew its
contract with the airline.

It is illegal under Peruvian law and international regulations
for airlines to fly without insurance policies that cover the
planes and the passengers and cargo they carry.

The government, however, took an unusual step of extending
public coverage to Aero Continente to avoid a disruption of
tourism during the international soccer matches being played
around the country.

In an emergency presidential decree published Saturday in Peru's
official gazette, El Peruano, the Finance Ministry said it would
act as a financial guarantor for Aero Continente for "a period
not to exceed 30 days."



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

CDC: Workers to Remain Locked-Out for Three Weeks
----------------------------------------------
The Trinidad Industrial Court threw out an injunction filed by
the National Union of Government and Federated Workers Union
(NUGFW) against Caribbean Development Company (CDC), The
Trinidad Express reports.

The injunction was filed to allow the locked-out workers to
return to work. With the latest ruling, the workers are expected
to remain locked out for another three weeks.

CDC's management decided to lock workers out on May 24 after
learning that on the previous day, workers voted to go on
strike. The lockout action took place to protect the equipment
and the plant.

NUGFW members voted to go on strike demanding a 17% increase in
salary, which is more than the Company's offer of a 12% hike. In
addition, the workers demand a special bonus plan whereby
workers will receive 50 cents on each saleable carton.

Aside from the demands, the union is also objecting to CDC's
proposal to include random drug testing in the collective
agreement, as well as reduce the number of union officers at the
plant.



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

SIDOR: Acquisition of Posven Completed
--------------------------------------
Tenaris S.A. (NYSE:TS) (Buenos Aires:TS) (BMV:TS) (MTA
Italy:TEN) further to its announcement on April 27, 2004,
confirmed Friday that, together with Sidor, a Venezuelan steel
producer in which it has an indirect investment, it has
completed the acquisition from Posven, of an industrial facility
for the production of pre-reduced hot briquetted iron, or HBI,
located in Ciudad Guayana, Venezuela. The acquisition was made
through Materiales Siderurgicos MASISA S.A., a company
constituted in Venezuela and currently held 50.2% by Tenaris and
49.8% by Sidor, for the price of US$120 million.

The facility, which has a nominal annual design capacity of 1.5
million tons of HBI and was constructed by Raytheon Engineers &
Constructors using technology developed by Hylsamex, a Mexican
steel producer, has been shut down since shortly after
commencing operations in 2000.

Tenaris is a leading global manufacturer of seamless steel pipe
products and provider of pipe handling, stocking and
distribution services to the oil and gas, energy and mechanical
industries and a leading regional supplier of welded steel pipes
for gas pipelines in South America. Domiciled in Luxembourg, it
has pipe manufacturing facilities in Argentina, Brazil, Canada,
Italy, Japan, Mexico and Venezuela and a network of customer
service centers present in over 20 countries worldwide.



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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
Lucilo Junior M. Pinili, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

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