TCRLA_Public/040722.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

             Thursday, July 22, 2004, Vol. 5, Issue 144

                            Headlines


A R G E N T I N A

AEROPUERTOS ARGENTINA: Court Ruling Clouds Planned IPO
CABLEVISION: Judge Wants Company to Schedule New Debt Offer Vote
FAHOA S.R.L.: Court Orders Liquidation
GATIC: Five Factories Returning To Operation
MAKLAYR: Initiates Bankruptcy Proceedings

MANUEL NEIRA: Reorganization Concluded
MENSAJET: Declared Bankrupt by Court
OA'HIGGINS PUBLICIDAD: Liquidates Assets to Pay Debts
PLAN MEDICO: Claims Verification Deadline Set
SIDECO AMERICANA: Judge Authorizes APE

VANGUARDIA TEXTIL: Moves To Liquidate Assets
VOLWAR: Court Converts Bankruptcy to Reorganization
ZELKOVA: Court Outlines Report Submission Schedules


B E L I Z E

* Outlooks on Belize Long-Term Ratings Revised to Negative


B E R M U D A

ANNUITY & LIFE: To Pay $5M to Settle Shareholder Suit
GLOBAL CROSSING: Details Retirement Plan Settlements
SEA CONTAINERS: Declares Cash Dividends on Common Shares

B R A Z I L

CEMIG: Analyzing JV Proposals for Transmission Bidding
EUCATEX: Creditors Draft Debt Plan
PARMALAT: Italian Government OKs Settlement Plan
VARIG: BNDES Presents Restructuring Plan for Airline


C H I L E

ENERSIS: Fires-Up Ralco Plant


D O M I N I C A

* Debt Restructuring For Dominica


H A I T I

* Haiti Secures Over $1B in Pledges


M E X I C O

AHMSA: Directors to Remain Locked Up in Spain
CINTRA: Forges Code-Share Alliance With Alianza LAN
GRUPO IMSA: S&P Puts Local Currency On CreditWatch Positive
GRUPO MEXICO: Projects $6.3M Losses After One Week Of Strike
UNEFON: Second Quarter 2004 Ends in Red Ink

UNEFON: Sale Plans Include Talks With Nextel, Others


V E N E Z U E L A

PDVSA: $170M Gas Pipeline Completion Expected in 2006


     - - - - - - - - - -

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

AEROPUERTOS ARGENTINA: Court Ruling Clouds Planned IPO
------------------------------------------------------
An Argentine lower court ruled last week that airport operator
Aeropuertos Argentina 2000 erroneously charged a dollar fee to
air travelers. Therefore, the airport operator must return the
excess amount charged to customers, according to a Dow Jones.

The issue dates back to February 2002, when Argentina converted
loans, deposits and utility rates, among other things, from
dollars into devalued pesos amid an economic crisis.

In the following months, the government exempted several areas
from the pesification, including most items connected with
international travel and foreign trade. The government then
ordered the airport tax, which varies from US$8 to US$18, to
remain in dollars.

Sergio Resumil, head of communications at Aeropuertos, said the
airport operator will appeal the ruling. He wouldn't say how
much Aeropuertos would have to pay if the ruling is upheld but
according to an unnamed consumer group, the total would be
ARS120 million ($1=ARS2.9425).

The court's ruling comes at a very inopportune time for the
Company, which last month said it planned to float up to 33% of
its capital on the local stock exchange when it launches its
long-awaited initial public offering.

Resumil has said the ruling would have no immediate financial
impact on Aeropuertos until the matter was fully resolved in the
courts. However, potential investors are likely to be flustered
by any financial uncertainties overhanging the firm.


CABLEVISION: Judge Wants Company to Schedule New Debt Offer Vote
----------------------------------------------------------------
The Argentine commercial judge overseeing Cablevision SA's out-
of-court debt restructuring ruled on July 6 that the cable
television operator must organize a creditor assembly to count
approval votes for the offer, reports Dow Jones Newswires.

In early March, Cablevision held a vote for its US$725 million
debt-restructuring offer and said it received the two-thirds
majority required under Argentine bankruptcy law to submit its
proposal for legal approval. In this kind of restructuring
process, known as an APE, two-thirds agreement from creditors
clears the offer for judicial approval, which then makes the
terms binding on all creditors.

In April however, Cablevision said it discovered a "holder of a
substantial amount" of its debt had erroneously voted twice for
its debt restructuring, effectively doubling this creditor's
representation in the calculation of the approval majorities.

In May, after checking over the documentation and clearing up
the error, the Company filed its APE in the courts. It also said
it was able, under the bankruptcy law, to "exclude some debt
holders" when it comes to APE voting rights.

In its latest ruling, the judge didn't set a date for the new
meeting, nor did he say whether the resulting vote would replace
the first one. But the court did say the votes would be
tabulated from those creditors that attend a meeting - not from
the entire universe of creditors.


FAHOA S.R.L.: Court Orders Liquidation
--------------------------------------
Fahoa S.R.L. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Buenos Aires Court No. 6. The
declaration effectively prohibits the company from administering
its assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Mr. Roberto Boffa as
trustee. He will be reviewing creditors' proofs of claims until
October 6, 2004. Individual reports to be presented for court
approval on November 18, 2004 will be based from these claims.
The trustee will also submit a general report on February 1 next
year.

Clerk No. 11 assists the court on this case, which will end with
the disposal of the company's assets to cover its liabilities.

CONTACT: Mr. Roberto Boffa, Trustee
         Uruguay 390
         Buenos Aires


GATIC: Five Factories Returning To Operation
--------------------------------------------
Some 2,700 workers of Gatic are expected to return to work when
the bankrupt Argentine textile company reopens five factories in
Buenos Aires province this month. According to a just-style.com
report, these factories, which owe the Buenos Aires province
ARS50 million (US$17m), have been closed since 2003.

The factories are set to return to operation under the
management of US-based company Indular, which is headed by
Argentine businessmen Guillermo Gotelli. Last month Mr. Gotelli
said he would invest US$25 million in Gatic.


MAKLAYR: Initiates Bankruptcy Proceedings
-----------------------------------------
Court No. 23 of the Buenos Aires Civil and Commercial Tribunal
declared Maklayr S.A. "Quiebra," reports Infobae. Ms. Laura
Marletta, who has been appointed as trustee, will verify
creditors' claims until September 10, 2004 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will be submitted in court on October 27,
2004, followed by the general report on December 10, 2004.

Clerk No. 46 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.

CONTACT: Ms. Laura Marletta, Trustee
         San Jose de Calasanz 530
         Capital Federal


MANUEL NEIRA: Reorganization Concluded
--------------------------------------
The settlement plan proposed by Manuel Neira S.A.I.C.F. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by the court
and will now be implemented by the company.

CONTACT: Manuel Neira S.A.I.C.F.
         Entre Rios 1457
         Buenos Aires


MENSAJET: Declared Bankrupt by Court
------------------------------------
Mensajet S.R.L. will begin liquidation proceedings after Court
No. 26 of Buenos Aires' Civil and Commercial Tribunal authorized
the Company's bankruptcy, says Infobae.

Under bankruptcy protection, the company's assets will be placed
under the control of a trustee. The report did not reveal the
name of the trustee or the schedules for the required bankruptcy
submissions.

Clerk No. 52 assists the court on this case, which will close
with the sale of the company's assets to repay debts.

CONTACT: Mensajet S.R.L.
         Montevideo 665
         Buenos Aires


OA'HIGGINS PUBLICIDAD: Liquidates Assets to Pay Debts
-----------------------------------------------------
OA'Higgins Publicidad S.A. will begin liquidating its assets
after Court No. 23 of Buenos Aires' Civil and Commercial
Tribunal issued a bankruptcy declaration against the Company.

The ruling places the company under the supervision of court-
appointed trustee, Mr. Pedro Alfredo Valle. The trustee will
verify creditors' proofs of claims until September 8, 2004.
Afterwards, the validated claims will be presented in court as
individual reports on October 21, 2004.

The trustee will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, December 2, 2004.

CONTACT: OA' Higgins Publicidad S.A.
         Conesa 3751
         Buenos Aires

         Mr. Pedro Alfredo Valle, Trustee
         Avda de Mayo 1260
         Buenos Aires


PLAN MEDICO: Claims Verification Deadline Set
---------------------------------------------
Official validation of claims for the Plan Medico Personal
Oroville S.A. bankruptcy will end on October 11,2004 according
to Infobae. Creditors with claims against the bankrupt company
must present proof of the liabilities to Mr. Miguel Angel
Tregob, the court-appointed trustee, before the deadline.

Buenos Aires Court No. 15 handles the company's case with the
assistance of Clerk No. 29. The bankruptcy will conclude with
the liquidation of the company's assets to pay its creditors.

CONTACT: Mr. Miguel Angel Tregob, Trustee
         Lima 287
         Buenos Aires


SIDECO AMERICANA: Judge Authorizes APE
--------------------------------------
Argentine public service and infrastructure conglomerate Sideco
Americana SA obtained endorsement from a commercial court judge
on its out-of-court agreement to restructure US$125 million in
debt. Under the proceeding, known in Spanish as Acuerdo
Preventivo Extrajudicial (APE), a Company must secure two-thirds
approval from creditors before it can submit its offer to a
court for legal clearance that would then make the restructuring
terms binding on all creditors.

In Sideco Americana's case, the Company secured about 91%
agreement from its creditors in December 2003 and submitted its
APE for legal approval in May. It is offering three options: a
cash payment worth 35% of the original amount, five-year secured
notes and 10-year unsecured notes.

The holding company has pressed ahead with its debt
restructuring despite financial and legal problems with its
unit, national postal service Correo Argentino SA. Currently,
the unit is being run by trustee managers as it goes through
bankruptcy proceedings.

The government rescinded Correo Argentino's contract to run the
national mail system in November and claims a debt of ARS400
million ($1=ARS2.9475) in missed royalty payments.


VANGUARDIA TEXTIL: Moves To Liquidate Assets
--------------------------------------------
Vanguardia Textil S.A. of Buenos Aires will begin to liquidate
its assets after the city's Court No. 15 declared the company
bankrupt. Infobae reveals that the bankruptcy process will
commence under the supervision of court-appointed trustee, Mr.
Carlos Alberto Lausi. The trustee will review claims forwarded
by the company's creditors until August 24, 2004.

CONTACT: Mr. Carlos Alberto Lausi, Trustee
         Avda Cordoba 456
         Buenos Aires


VOLWAR: Court Converts Bankruptcy to Reorganization
---------------------------------------------------
Volwar S.A. will proceed with reorganization after Bahia Blanca
Court No. 2 converted the Company's ongoing bankruptcy case into
a "concurso preventivo", states Infobae. Under Insolvency
protection, the Company will be able to draft a proposal
designed to settle its debts with creditors. The reorganization
also prevents the Company's outright liquidation.

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

CONTACT: Volwar S.A.
         Lavalle 327
         Bahia Blanca


ZELKOVA: Court Outlines Report Submission Schedules
---------------------------------------------------
Court No. 2 of the Buenos Aires Civil and Commercial Tribunal
released a schedule of relevant dates pertaining to the Zelkova
S.A. bankruptcy, says Infobae.

The verification period, where creditors submit proofs of their
claims for validation, will end on September 9, 2004.
Afterwards, the trustee, Mr. Claudio Jorge Haimovici, is
expected to submit individual reports on November 4, 2004. He is
also scheduled to present a general report of the case on
December 16, 2004.

Clerk No. 4 assists the court on the resolution of this case.

CONTACT: Mr. Claudio Jorge Haimovici, Trustee
         Sarmiento 3843
         Buenos Aires



===========
B E L I Z E
===========

* Outlooks on Belize Long-Term Ratings Revised to Negative
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlooks on its
'B+' long-term foreign and 'BB-' long-term local currency
sovereign credit ratings on Belize to negative from stable.

According to Standard & Poor's Ratings Services credit analyst
Olga Kalinina, the change in outlooks reflects the increasing
challenges in tightening the government's fiscal stance, coupled
with mounting external liquidity pressures. "On the fiscal
front, results may fall short of the original projection of a
0.9% general government deficit (including a social security
surplus of 0.7%) in fiscal year 2004-2005, due to delays in
levying a new one-time land tax and in eliminating some tax
exemptions," explained Mrs. Kalinina. "Past high deficits have
led to a rapidly rising debt level. Public-sector debt will
increase to an estimated 98% of GDP at year-end 2004, up from
75% of GDP at year-end 2000," she added.

On the external side, the country's growing financing needs
(defined as current account deficit, medium- and long-term
amortizations, and short-term debt) are estimated to total 436%
of reserves in 2004, up from 326% in 2003.

"The government's amortization of US$38 million (to be repaid in
the second half of the year) is high compared with the US$70
million in net international reserves held by the central bank
as of the beginning of
July 2004, although the government's plans to tap the
international markets should help to ease external pressure,"
Mrs. Kalinina said.

"Additional financing needs for 2004 include the projected
current account deficit net of foreign direct investment,
estimated at US$90 million, and the amortization needs of the
private sector," she added.

The negative outlooks indicate that downward pressure on the
ratings exceeds upward pressure. "Should the government falter
in effecting its fiscal consolidation or should the country's
external liquidity position become more stretched, Belize's
ratings could fall," Mrs. Kalinina noted.

"Firm government resolve on the fiscal front and adept debt
management on the external side will be required to maintain the
ratings at their current levels," she concluded.

ANALYSTS:  Olga Kalinina, CFA, New York (1) 212-438-7350
           John Chambers, CFA, New York (1) 212-438-7344



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

ANNUITY & LIFE: To Pay $5M to Settle Shareholder Suit
-----------------------------------------------------
Annuity & Life Re (Holdings), Ltd. announced Tuesday that it has
reached an agreement in principle with plaintiffs to settle the
shareholder lawsuit pending against it and certain of its
present and former directors and officers in the United States
District Court for the District of Connecticut. The settlement
is without any admission of liability or wrongdoing.

The Company's directors and officers' liability carrier, and
another defendant have agreed to pay an aggregate of $16.5
million. The Company's share of the settlement is $2.5 million
in cash and an additional $2.5 million in common stock, although
it has reserved the right to elect to pay this portion in cash.

The settlement is subject to final Board approval, full
documentation among the parties to the settlement, notice to the
class, Court approval and other steps required to consummate a
class action settlement.

CONTACT: Mr. John Lockwood
         Annuity & Life Re (Holdings), Ltd.
         Phone: 441-298-9902


GLOBAL CROSSING: Details Retirement Plan Settlements
----------------------------------------------------
U.S. Secretary of Labor Elaine L. Chao announced Tuesday
settlements with former directors and officers of Global
Crossing stemming from the Department's investigation of the
Global Crossing Retirement Savings Plan. The 401(k) plan lost
tens of millions of dollars as a result of its extensive stock
holdings in Global Crossing stock, which lost virtually all of
its value.

The settlement covers the two former inside directors of Global
Crossing, Thomas Casey (former Chief Executive Officer) and Gary
Winnick (former Chairman of the Board), as well as the three
former members of the Employee Benefits Committee, Dan J. Cohrs,
Joseph Perrone, and John Comparin.

The Secretary entered into the agreements in connection with the
proposed settlement of the private class action lawsuit brought
on behalf of the participants of the plan. If the court approves
the class-action settlement, the total recovery will be $79
million, including $25 million that Winnick placed in an
irrevocable escrow account for the plan at the Secretary's
behest, and an additional $54 million funded by defendants'
insurance policies in the private action.

"I am pleased that the Global Crossing workers, retirees and
their families will receive a significant financial recovery,"
said U.S. Secretary of Labor Elaine L. Chao. "Fiduciaries have a
serious and significant responsibility to protect the long term
pension security of their workers. I hope this lesson gets
through to others."

Under the terms of the new agreements, the former Global
Crossing fiduciaries are prohibited from acting as fiduciaries
to ERISA-covered benefit plans for five years unless they first
notify the Department of Labor of their intention to serve as
fiduciaries, and the Department agrees. The agreements are
predicated upon approval of the class action settlement, and may
be terminated by the Department if the class action settlement
is not approved.

The settlement resulted from a comprehensive investigation
conducted by the Los Angeles Regional Office of the Department's
Employee Benefits Security Administration and the Office of the
Solicitor. It was coordinated through President Bush's Corporate
Fraud Task Force.


SEA CONTAINERS: Declares Cash Dividends on Common Shares
--------------------------------------------------------
The Board of Directors of Sea Containers Ltd. declared Tuesday
quarterly cash dividends on the Company's Class A and Class B
common shares. The dividend will be $0.025 per share on the
Class A common shares and $0.0225 per share on the Class B
common shares. Class B common shares are convertible at any time
into Class A common shares. The dividends will be payable August
20, 2004 to shareholders of record August 5, 2004.

The Class A and B common shares of Sea Containers Ltd. are
listed on the New York Stock Exchange under the symbols SCRA and
SCRB, respectively.



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

CEMIG: Analyzing JV Proposals for Transmission Bidding
------------------------------------------------------
Brazilian power company Cemig (NYSE: CIG) received a number of
proposals from companies, which are interested to form a joint
venture with the utility to bid in the upcoming tender of
2,862km of high-voltage transmission lines.

"Cemig will now study the proposals for joint ventures and
decide on which stretches it will bid for," a Cemig spokesperson
told Business News Americas.

The government will tender 12 transmission line stretches on
September 30. Three of these stretches pass through Minas Gerais
state, where Cemig produces and sells power.

The three stretches are: the 811km Cuiaba-Itumbiara 500kV line,
with estimated investments of BRL831 million; the 75km Furnas-
Pimenta 345kV line, with estimated investment of BRL45.4
million; and the 140km Itutinga-Juiz de Fora 345kV line, with
estimated investment of BRL74.1 million.

The pre-qualified bidders will be announced on August 6.

The spokesperson recalls that at the beginning of the year,
Cemig set aside BRL105 million (US$35mn) for transmission sector
investment in 2004.

CONTACT:  Luiz Fernando Rolla, Investor Relations
          Superintendencia de Relacoes com Investidores
          COMPANHIA ENERGETICA DE MINAS GERAIS - CEMIG
          Av. Barbacena, 1200 - Terreo
          30190-131 - Belo Horizonte - MG - Brazil
          Phone: 55-31-3299.3930
          Fax: 55-31-3299.3933
          Web site: http://cemig.infoinvest.com.br/english/
          Email Address: lrolla@cemig.com.br


EUCATEX: Creditors Draft Debt Plan
----------------------------------
Creditors of bankrupt Brazilian company Eucatex are finalizing a
debt management plan that could allow the Company to pay BRL200
million of its debt in installments to fall due over a ten-year
period. Valor Economico says that Bradesco, Unibanco and Itau
BBA are working together to complete the debt-restructuring
plan.

However any action taken by the creditors will have to be
approved by Petros, who owns 70 percent of a BRL70 million
debenture issued by Eucatex. Eucatex, engaged in furniture,
construction and agribusiness, applied for bankruptcy protection
in 2003. Its debt currently totals BRL285M.

CONTACT: Eucatex S.A. Industria y Comercio
         Av. Pres Juscelino Kubichek,
         1830 Torres I e II  - 11 e 12 andares
         04543-900 - Sao Paulo - SP
         Tel: ( 0xx11 ) 3049-2233
         Fax: ( 0xx11 ) 3049-2222
         E-mail : eucatex@eucatex.com.br
         Web Site : www.eucatex.com.br


PARMALAT: Italian Government OKs Settlement Plan
------------------------------------------------
Italy's Industry Minister Antonio Marzano approved on Tuesday
the debt for equity settlement plan submitted by bankrupt dairy
group Parmalat Finanziaria. The proposal, drafted under the
supervision of administrator Mr. Enrico Bondi, will give most of
the company's creditors an estimated 10 percent return on their
original investment, says the International Herald Tribune.

Under the plan, all of Parmalat's 85,000 bondholders would get
shares in the new company. Bondholders will also be given one
warrant for each new share issued, up to a maximum of 500
warrants. Each warrant will give bondholders the right to buy
additional shares 2005 and 2015.

The company's creditors are expected to vote on the plan by
year-end. Parmalat could face liquidation if the plan fails to
get the requisite number of votes.

Parmalat's gross debt is reported at EUR14.8 billion, or US$18.3
billion, with EUR9.4 billion in outstanding bonds, EUR4.2
billion in bank loans and EUR1.2 billion in other types of debt.


VARIG: BNDES Presents Restructuring Plan for Airline
----------------------------------------------------
Brazilian development bank BNDES (Banco Nacional de
Desenvolvimento Economico e Social) presented to the federal
government a restructuring plan for the airline transportation
company Varig, reports daily O Globo.

Under the plan, the government will recognize the BRL5.5-billion
credit Varig has been claiming to the Justice, convert this
amount into company assets and then cancel part of the US$2.2-
billion debt (around BRL6.6 billion) contracted with state-owned
creditors like BR Distribuidora, Banco do Brasil, Infraero, INSS
and the Federal Revenue.

The airline has been appealing to the Justice for the payment of
BRL4.5-billion indemnity for ticket prices that were frozen
between 1986 and 1992 and on the payment of BRL1 billion for the
improper collection of ICMS tax over the sales of tickets
between 1989 and 1994.

The new proposal would see a transfer of Varig's management from
Fundacao Ruben Berta to the main creditors.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil



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

ENERSIS: Fires-Up Ralco Plant
-----------------------------
Chilean electricity generator Enersis S.A. expects to start its
new Ralco hydroelectric power plant on August 5, 2005, says el
Mercurio. The plant will initially utilize 5-7 percent of its
570MW capacity, producing an equivalent of 30-40MW of
electricity. Generation will be gradually increased until it
reaches full capacity in September.

Enersis S.A., a subsidiary of the Spanish electricity group
Endesa, serves over 10 million costumers in South America. The
Company is a major private sector electricity generation company
in the region in terms of installed capacity.



===============
D O M I N I C A
===============

* Debt Restructuring For Dominica
---------------------------------
As part of a debt restructuring operation for Dominica, which is
supported by a number of that country's domestic and foreign
creditors, Carribbean Development Bank (CDB) is to provide a
package of exceptional financial assistance to Dominica. The
intervention is intended to help the country to regain fiscal
sustainability. It would reduce Dominica's future debt service
payments to CDB by USD13.2 million in Net Present Value terms.

This package involves the reduction of interest rates and the
extension of maturities on existing loans. It also includes the
provision of a grant equivalent to USD6.4 million in support of
the country's structural and fiscal policy reform agenda. The
reforms are designed to reinvigorate growth and development and
reduce the incidence of unemployment-related poverty.

These arrangements should take effect from October 1, 2004

CONTACT: Caribbean Development Bank
         P.O. Box 408
         Wildey
         St. Michael
         Barbados, W.I.

         Tel. No. (246)431-1600
         Fax No. (246)426-7269
         Email: info@caribank.org



=========
H A I T I
=========

* Haiti Secures Over $1B in Pledges
-----------------------------------
International organizations and Governments pledged on Tuesday
$1.085 billion towards Haiti's recovery over the next two years.
Commenting on the amount raised, Interim Haitian Prime Minister
Gerard Latortue said, "I am delighted with the result of this
conference which demonstrates the level of solidarity of the
international community with the people of Haiti." He added, "On
behalf of the people of Haiti and of the government team, I
heartily thank the friends of Haiti and I repeat here the
Government's commitment to work in close collaboration with all
sectors of Haitian society to make sure that these funds are
used efficiently and transparently."

The international community praised the significant
accomplishments achieved by the Interim Haitian Government in a
short time under difficult circumstances.  These include a
dramatic increase in power generation and visible improvements
in urban sanitary conditions.  They also endorsed Haiti's recent
steps towards fiscal responsibility. Conference participants
welcomed the government's commitment to restore the rule of law,
respect human rights for all, and organize free and fair
elections next year.

Co-hosted by the European Union, Inter-American Development
Bank, the United Nations and the World Bank, the Conference drew
representatives from 30 countries and 32 international
organizations. It sought $924 million to support the Haitian
Government's Interim Co-operation Framework (ICF) outlining
Haiti's priority needs and programs over the next two years. The
ICF had identified $924 million as the two-year funding gap in
an overall needs assessment totaling $1.37billion.

Addressing the Conference, U.S. Secretary of State Colin Powell
described this funding achievement as, "A testament to the
importance that the international community places on Haiti's
return to the path of democracy, stability and prosperity."
Powell welcomed Haiti's new leaders as, "partners who are
determined to seize this opportunity to shape a better future
for their country."

Conference participants all underscored the vital connection
between ensuring security for every Haitian and fostering
economic development.

Special Representative of the UN Secretary General, Juan Gabriel
Valdes, stated that, "Success in democracy and development
requires all Haitian stakeholders to engage in an inclusive
political dialogue."

UN Secretary-General Kofi Annan transmitted a message to the
conference, "I welcome the new partnership that has emerged
between the international community and the transitional
government in preparation of the ICF. It has truly been a
cooperative endeavor."
To support a process of national reconciliation and ensure a
coordinated and rapid response to the country's urgent and
medium term development needs, the Interim Cooperation Framework
identifies four priority areas for action:

1) Improving political governance and promoting national
dialogue

2) Strengthening economic governance and promoting institutional
development

3) Promoting economic recovery

4) Improving access to basic services

In his statement, Commissioner of the European Commission, Joe
Borg, referred to the Government's commitments for the
transition to constitutional democratic governance and for rapid
progress on the development front and said, "You have set
yourselves a very comprehensive and ambitious programme and high
goals with tight deadlines, and we commend you for it."

He added, "We wish you every success in your challenging
journey, and I reconfirm to you that as you move towards the
achievement of these objectives, we will accompany your efforts
with substantial resources."

The Government and the international community agreed to take
steps to ensure that these assistance commitments translate into
rapid and visible improvements in the lives of the Haitian
people.

Addressing the conference, World Bank President James D.
Wolfensohn said, "We must measure our success not by the total
amount raised today, but by our ability to translate these funds
into tangible improvements in the everyday lives of the millions
of Haitians who are pinning their hopes on all of us here today.
We must not fail them"

Quick impact programs identified by the ICF to meet the
country's priority needs over the next two months include the
creation of 44,000 jobs, the collection and disposal of 50
percent of garbage in urban areas, the upgrading of 500 slum
dwellings in Port-au-Prince, and ensuring 12 hours per day of
electricity services in Port au-Prince. These programs are aimed
at restoring stability and improving the quality of life
following the months of violence that earlier this year closed
businesses, prevented children from going to school, shut off
power and water services, and left piles of garbage in the
streets.

Over the next two years, in the social sector alone, the ICF
outlines programs to improve nutrition for over one million poor
children and their mothers, students, orphans, street children
and destitute elderly, immunize 80 percent of children under age
one against diphtheria-tetanus-pertussis (DPT3) in fifteen key
districts, and rehabilitate 1,500 schools.

Conference participants underscored the need to learn from past
mistakes. Donors agreed to coordinate their respective
activities more closely, and the Haitian government agreed to
take steps to enable those responsible for implementation of
projects to move forward expeditiously.  All underscored the
importance of focusing aid on measurable results. The Haitian
government further acknowledged the importance of reaching out
to the private sector and civil society in the development,
monitoring and oversight of the process and in specific project
implementation.

In his statement Tuesday, Inter-American Development Bank
President Enrique Iglesias said, "During implementation of the
ICF, the emphasis should be on finding practical solutions to
speed execution and simultaneously strengthen institutional
capacity for the medium and long term, while emphasizing
accountability and transparency."

The central importance of Haitian ownership of the
reconstruction and development of their country was underscored
by all. To ensure timely assistance consistent with the
priorities identified by the ICF, the government emphasized its
intention to establish a process to co-ordinate implementation.
The Government also announced its intention to host a follow-up
meeting in September in Port-au-Prince to advance this
objective.

With an estimated per capita income of $361 in 2003, Haiti is
the poorest country in the Western Hemisphere. Half of the urban
population has no access to safe water, the incidence of
HIV/AIDS is estimated at 5 percent, and the average Haitian can
expect to live only 53 years. The effects of a three-year
economic embargo in the early 1990s, followed by years of
political upheaval, conflict and insecurity have hindered
sustainable economic and social progress and contributed to
increased violence.

CONTACTS: The World Bank
          Mr. Lee Morrison (202)-458-8741
          Lmorrison1@worldbank.org

          Inter-American Development Bank
          Mr. Peter Bate (202) 623-2609
          PETERB@IADB.org

          The United Nations
          Ms. Deborah DeYoung (202) 454-2107
          DDeYoung@unicwash.org

          European Commission
          Mr. Anthony Gooch (202)-862-9523
          anthony.gooch@cec.eu.int



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

AHMSA: Directors to Remain Locked Up in Spain
---------------------------------------------
A former director of Mexican steelmaker Ahmsa (BMV: AHMSA) and
his advisor, who were detained in Spain on July 12 on charges of
tax evasion, will remain incarcerated while the extradition
process continues.

According to a Business News Americas report, Ahmsa former
chairman Xavier Autrey Maza and his advisor Juan Carlos
Carredano has been denied bail by a judge in Spain. Ahmsa has
condemned the charges made against the two directors, saying
these are politically motivated and driven by creditors such as
Citibank-Banamex.

Monclova, Mexico-based Ahmsa, one of the country's biggest steel
producers, defaulted on US$1.8 billion in debt in 1999. The
Company later reached a restructuring agreement with creditors,
but reneged on the deal in an effort to secure better terms.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.AHMSA.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


CINTRA: Forges Code-Share Alliance With Alianza LAN
---------------------------------------------------
Traveling to South America will become more convenient once
CINTRA and Alianza LAN begins implementing a code-sharing
agreement designed to develop links between Mexico and the Latin
countries in the Southern Cone.

The agreement, signed on Monday, will expand the reach of
CINTRA's Mexicana and Aeromexico fleet allowing passengers to
fly to destinations in South America by way of Santiago, Chile
and Lima in Peru. Likewise, LAN clients will benefit from
greater flight frequencies and schedules to Mexico.

With the agreement, passengers will also benefit from free sales
tickets, the accumulation of frequent flyer miles and the use of
executive rooms.

Alianza LAN operates Chilean carrier LAN and its subsidiaries in
Ecuador, Peru and the Dominican Republic.


GRUPO IMSA: S&P Puts Local Currency On CreditWatch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BBB-' long-term
local currency corporate credit rating on Mexico-based company
Grupo IMSA (IMSA) on CreditWatch with positive implications,
following the announcement by the company that it has agreed to
sell its 51% ownership in Enermex, the automotive battery
division, to its partner in this joint venture, Johnson Controls
(A/Stable/A-1).

The 'BBB-' long-term foreign currency corporate credit rating on
IMSA is affirmed. The outlook for the foreign currency rating is
stable.

"The CreditWatch listing reflects the likely improvement of
IMSA's credit quality following its debt reduction," said
Standard & Poor's credit analyst Juan P. Becerra. Although the
company exposure to the steel cycles increases, the expected
reduction in IMSA's debt could increase its free cash flow.
Enermex represents 13% and 24% of IMSA's sales and EBITDA,
respectively.

The transaction is expecting the approval of the Antitrust
Authorities in both Mexico and the U.S. With the transaction
proceeds, IMSA will reduce debt by 50% or at least $450 million.

IMSA is a diversified Mexican industrial company that
participates in the steel industry through its steel-processing
and construction divisions. With recorded annual sales in 2003
of $2,780 million, IMSA has facilities in the U.S., Central, and
South America.


GRUPO MEXICO: Projects $6.3M Losses After One Week Of Strike
------------------------------------------------------------
The strike at the La Caridad copper mine caused Grupo Mexico
US$6.3 million in just one week. Citing Mexican stock exchange
analyst Pablo Ruiz, the Editorial Milenio reported that of the
Company's total sales of 240,000t of copper, some 140,000t are
produced at La Caridad in Sonora state, representing a daily
loss of EBITDA of US$900,000.

Workers at the La Caridad mine and refinery have been on strike
since July 12, demanding profit-sharing, payment of overtime and
temporary promotions, as well as improved safety measures and a
return in the size of work crews to between 11 and 14 workers
from the current six or seven.

Another strike looms at Grupo Mexico's Cananea complex, where
workers are making similar demands as with the La Caridad
workers. A work stoppage would halt the mine's production,
adding to losses in output caused by the La Caridad shutdown.

Combined, the strikes would paralyze all of Grupo Mexico's
operations in northern Mexico and temporarily cut the Company's
global output in half, said a Bloomberg report.

CONTACT:  Mr. German Larrea Mota Velasco
          Chairman & CEO
          GRUPO MEXICO
          Av. Baja California No. 200
          Colonia Roma Sur
          06760 Mexico, D.F.
          Tel. Conm. 52 (55) 5080-0050


UNEFON: Second Quarter 2004 Ends in Red Ink
-------------------------------------------
Mexican wireless telco Unefon ended the second quarter of 2004
with a net loss of MXN109 million (US$9 million), compared to a
net profit of MXN415 million in the year-earlier period, reports
Business News Americas.

Ana Gabriela Ocejo, an analyst at local investment firm
Scotiabank Inverlat, told Business News Americas: "The principal
effect on the margins is derived from the establishment of a new
pricing policy for telephone equipment to put themselves in a
better position to compete with other mobile firms,"

"This reduction in equipment prices contributed to an
acceleration in new users," she added.

Meanwhile, total sales rose 9% to MXN1.04 billion for the
period, and the Company signed on 60,000 new users to end June
with 1.3 million clients. It expects to sign on another 200,000
customers to end 2004 with around 1.5 million clients, chief
executive Adrian Steckel told analysts during a conference call.

"We're being conservative (with those estimates)", he said.

Unefon recorded a comprehensive financing cost of MXN159
million, which was made up of a MXN121-million foreign exchange
loss, a net interest cost of MXN57 million and a MXN19-million
monetary gain.


UNEFON: Sale Plans Include Talks With Nextel, Others
----------------------------------------------------
Unefon, owned by Mexican millionaire Ricardo Salinas via
broadcaster TV Azteca and his business partner, Moises Saba, has
held talks with several telecommunications companies as part of
its plans to sell part or all of the firm.

Citing a Unefon official, Reuters relates that these talks
include U.S. carrier Nextel Communications Inc..

"There are talks with Nextel, but there's nothing official yet,"
said Peter Bauer, a spokesman for Saba, who is Unefon's
chairman.

"Talks have intensified over the past three weeks, particularly
after (Unefon's) launch of the push-to-talk" service," Bauer
added. "There are talks with them (Nextel) and with others."

Nextel Communications Inc. is yet to comment on the report.

Unefon competes in the Mexican market against leaders Telcel,
owned by America Movil, and Telefonica MoviStar, a unit of
Spain's Telefonica Moviles. Talk about a possible sale of
Unefon, which is being spun-off from TV Azteca, has been around
for several years.



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

PDVSA: $170M Gas Pipeline Completion Expected in 2006
-----------------------------------------------------
Colombia will begin supplying natural gas to neighboring
Venezuela once a 106-mile pipeline project connecting the two
countries is completed in 2006. PDVSA President Ali Rodriguez
stated in a Venpres interview that the pipeline's US$170 million
cost will be financed by Colombia's Ecopetrol and ChevronTexaco
Corporation.

The pipeline is expected to supply 150-200 million cubic feet of
Natural gas per day. This allocation will help to alleviate
Venezuela's natural gas shortage and raise PDVSA's oil and
petrochemical production.

PDVSA uses natural gas as an important raw material for its
petrochemical products. It is also injected into oil fields to
push crude to the surface.



                            ***********


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
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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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