TCRLA_Public/040810.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, August 10, 2004, Vol. 5, Issue 157

                            Headlines


A R G E N T I N A

ACINDAR: Net Profit Shrinks in 1H04
ADECK CONFECCIONES: Required Reports Due Tomorrow
AEROLINEAS ARGENTINAS: Meets With Government Conflict Once Again
CENTRAL COSTANERA: Nets ARS32.4M in 1H04
CEREALES DEL SOL: Individual Reports to Be Filed Wednesday

COPEMA S.R.L.: Claims Verification Deadline Nears
EDITORIAL CULTURA: Court Orders Asset Liquidation
ESCUELA SUPERIOR: Initiates Bankruptcy Proceedings
GRINGO S.A.: Court Anticipates General Report Today
JORGE MIRNER: Liquidates Assets to Pay Debts

KEF S.R.L.: Begins Court-Ordered Liquidation Proceedings
MAYRAL S.R.L.: Seeks Authorization to Restructure Debts
MEDECAL S.A.: Bankruptcy Initiated on Court Orders
PEDRO ALESSIO: Trustee to Close Validation Phase
PRIDE INTERNATIONAL: Records $.02 Earnings Per Share in 2Q04

PURITY ARGENTINA: Trustee Submits Individual Reports
STOK S.A.: Court Orders Asset Liquidation
TRANSENER: Losses Follow Exchange Rate Variation
TUFICNADER S.A.: Debt Payments Halted, Set To Reorganize
UBOLDO S.A.: Files Voluntary Bankruptcy Motion


B A R B A D O S

C&W BARBADOS: Seeks Review of Rates Hike Petition


B E L I Z E

Moody's Cuts Belize's Ratings on Increasing Debt


B E R M U D A

LORAL SPACE: Names Patrick K. Brant President of Loral Skynet


B R A Z I L

LIGHT SERVICOS: BNDES to Review Debt Plan
NET SERVICOS: Board Approves CMA Registration Cancellation
PARMALAT: Extraordinary Commissioner Files Claim vs UBS


C H I L E

ENERSIS: Offers to Exchange $350M Worth of Unregistered Notes
MADECO: Higher Sales, Tax Recovery Boost Financial Performance


C O L O M B I A

AVIANCA: Pilots Agree to Negotiate Once Again
BELLSOUTH COLOMBIA: SIC Approves Sale to TEM


C O S T A   R I C A

RICA FOODS: Appoints New Board of Director Members


D O M I N I C A

IMF Completes Second PRGF Performance Review On Dominica


D O M I N I C A N   R E P U B L I C

Dominican Republic Interest Payment Default Expected


M E X I C O

DESC: Moody's Withdraws Ratings Following Debt Prepayment
GRUPO MEXICO: BCP "Hold" Recommendation on SPCC Shares Unchanged
GRUPO TMM: Completes Exchange Offer, Consent Solicitation
HYLSAMEX: Expects To Reduce Debt by Half This Year
ISPAT INTERNATIONAL: S&P Raises Corporate Credit Rating To 'B'

T R I N I D A D   &   T O B A G O

BWIA: Minister Accuses Company of Over Spending


   - - - - - - - - - - -


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

ACINDAR: Net Profit Shrinks in 1H04
-----------------------------------
Argentine steelmaker Acindar (ACI.BA) reported a net profit of
ARS244.1 million in the first-half of 2004, lower than the
ARS353.3 million posted in the same period a year earlier.
According to Reuters, Acindar's investor relations manager, Jose
Giraudo, attributed the decline to the ARS117 million in
earnings tax that the firm paid this year, as opposed to the tax
credits it received last year. In addition, higher iron ore
prices helped push production costs up 24% over the first half
of 2003.

"This year due to strong worldwide demand for steel, prices for
iron ore, which is our main raw material, have risen 18
percent," Reuters quoted Giraudo as saying.

Net sales for the first half of 2004 rose to ARS922.5 million
from ARS625.7 million in the first half of 2003. Operating
profits totaled ARS378.7 million.

Acindar gave no update on its US$230 million debt-restructuring
offer, which is still waiting for formal judicial approval. The
proposal was filed in the courts in early March after it gained
creditor approval in December 2003. However, thanks to its
strong performance over the last year, Acindar has been able to
make US$100 million in early cash payments to creditors, even
without legal clearance for its debt offer.

Brazil's Belgo Mineira owns about 66% of Acindar after buying in
May a 21% stake formerly held by Grupo Acevedo, the investment
vehicle owned by the family that founded Acindar.

It's expected that Belgo Mineira will further increase its stake
and possibly fully take over the Company in 2006. Acindar held
an US$80 million convertible bond issue in January that ended
with a 98.2% subscription rate. The Company didn't break down
the identities of the buyers, but analysts say it's likely Belgo
Mineira snapped up many of the convertible bonds, which can be
swapped into shares on Jan. 1, 2006.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Web Site: http://www.acindar.ar.com


ADECK CONFECCIONES: Required Reports Due Tomorrow
-------------------------------------------------
Accounting firm "Gutierrez, Marchese, Parada", acting as trustee
in the Adeck Confecciones S.A. bankruptcy, is set to submit in
court individual reports from the case tomorrow, August 11,
2004.

The individual reports, culled from all proofs of claims
submitted by creditors during the verification period, will be
used by the court as basis for the final listing of creditors
qualified for post-liquidation payments.

Court No. 20 of Buenos Aires' Civil and Commercial Tribunal
handles this case with the assistance of Clerk No. 39.

CONTACT:  "Gutierrez, Marchese, Parada", Trustee
          Calderon de la Barca 3231
          Buenos Aires


AEROLINEAS ARGENTINAS: Meets With Government Conflict Once Again
----------------------------------------------------------------
In the latest battle between the Argentine government and
national flag carrier Aerolineas Argentinas, the former asked
the courts to reject the 2003 results presented by the airline.
In a statement Friday, the office of the Under Secretary of
Commercial Air Transport announced that the government was
pursuing legal action regarding the 2003 results "with the aim
of defending its rights as a shareholder and fulfilling its
obligations as a regulator of the public service of air
transport."

In November 2003, the government had asked the courts to reject
Aerolineas Argentinas' 2002 results, but a Commercial Appeals
Court rejected that request earlier this year.

Friday's statement questioned the inclusion of a ARS266-million
capitalization of debts by Spain's Air Comet in the results.

It said the 2002 balance sheet hadn't "reflected the true
situation" of the Company and implied the government had the
same objections regarding the 2003 results.

The government has a stake of between 1%-2% in Aerolineas, which
has been controlled by Spanish travel group Grupo Marsans
(GSMN.YY) since 2001.


CENTRAL COSTANERA: Nets ARS32.4M in 1H04
----------------------------------------
Increased energy consumption, fueled by Argentina's economic
recovery, pulled-up Central Costanera S.A.'s bottom line to
ARP32.4 million for the first half of this year from the
previous period's ARP18.2 million, Dow Jones Newswires reports.

Government initiatives, such as the decision to peg electricity
prices with the value of natural gas even if generators were
using more expensive fuels, caused spot market sales to drop
ARP139 million during the period.

However, overall sales were still higher compared to 1H03. Spot
market sales amounted to ARP213.3 million, compared with ARS46.5
million a year ago. Net Sales also jumped ARP312.2 million for
the first half of the year, compared with ARP172.7 million in
2003.

Also, the increase in natural gas rates reflected into higher
costs for Central Costanera. Operating costs totaled ARS211.8
million in the first half of the year, higher than ARS98 million
from a year earlier. Higher costs for fuel alternatives also
affected the Company. The first half of 2004 saw this expense
rising to ARS156.2 million from ARS29.3 million a year earlier.

The company did not give updates on the approaching conclusion
of its debt settlement. A preliminary agreement with creditor
banks last June sees the refinancing of a US$95 million
syndicated loan. The restructuring plan will be finalized by
September 25.


CEREALES DEL SOL: Individual Reports to Be Filed Wednesday
----------------------------------------------------------
Mr. Orlando Omar Vegega, court-appointed trustee for the
Cereales del Sol S.R.L. Bankruptcy case, is ready to submit the
case's individual reports on Wednesday, August 11, 2004. The
trustee will also provide the court with a general report on
September 23, 2004.

Court No. 11 of Buenos Aires' Civil and Commercial Tribunal
handles this case that will end with the sale of all the
Company's assets to repay creditors.

CONTACT:  Mr. Orlando Omar Vegega, Trustee
          Aguirre 666
          Buenos Aires


COPEMA S.R.L.: Claims Verification Deadline Nears
-------------------------------------------------
The validation of creditors' proofs of claims for the Copema
S.R.L. bankruptcy case will close tomorrow, August 11, 2004. All
claims should be forwarded to the court-appointed trustee, Mr.
Juan Jose Roberto Esturo, before the deadline. Analyzing these
claims is important because the outcome of the process will
determine the amount each creditor will get after all the assets
of the Company are liquidated.

CONTACT: Mr. Juan Jose Roberto Esturo, Trustee
         Reconquista 336
         Buenos Aires


EDITORIAL CULTURA: Court Orders Asset Liquidation
-------------------------------------------------
Editorial Cultura y Lenguaje S.A. prepares to wind-up its
operations following the bankruptcy pronouncement issued by
Court No. 22 of Buenos Aires' Civil and Commercial Tribunal. 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. Carlos Alberto
Bavio as trustee. He will be reviewing creditors' proofs of
claims until September 16, 2004. The verified claims will be the
basis for the individual reports to be presented for court
approval on October 29, 204. Afterwards, the trustee will also
submit a general report on December 13, 2004.

Clerk No. 43 assists the court on this case, which will end with
the disposal of the company's assets to cover its liabilities.

CONTACT: Mr. Carlos Alberto Bavio, Trustee
         Pavon 4374
         Buenos Aires


ESCUELA SUPERIOR: Initiates Bankruptcy Proceedings
--------------------------------------------------
Court No. 9 of Buenos Aires' Civil and Commercial Tribunal
declared Escuela Superior de Ensenanza Informatica S.A.
"Quiebra," reports Infobae.

Mr. Juan Alberto Krimerman, who has been appointed as trustee,
will verify creditors' claims until September 16, 2004 and then
prepare the individual reports based on the results of the
verification process. The individual reports will then be
submitted in court on October 28, 2004, followed by the general
report on December 10, 2004.

Clerk No. 18 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.

CONTACT: Escuela Superior de Ensenanza Informatica S.A.
         Juan B Justo 2225
         Buenos Aires

         Mr. Juan Alberto Krimerman, Trustee
         Uruguay 594
         Buenos Aires


GRINGO S.A.: Court Anticipates General Report Today
---------------------------------------------------
The general report for the Gringo S.A. bankruptcy case is
scheduled for court submission today, August 10, 2004. The
court-appointed trustee, Ms. Maria Cristina Moccia, prepared
this report from the Company's accounting and business records.
The document will also detail relevant events in the bankruptcy
proceedings.

Court No. 17 of Buenos Aires' Civil and Commercial Tribunal,
assisted by Clerk No. 33, has jurisdiction over this case.

CONTACT:  Ms. Maria Cristina Moccia, Trustee
          Superi 1423
          Buenos Aires


JORGE MIRNER: Liquidates Assets to Pay Debts
--------------------------------------------
Buenos Aires-based Company Jorge Mirner Orman S.A. will begin
liquidating its assets following the bankruptcy pronouncement
issued by Court No. 4 of the city's Civil and Commercial
Tribunal, reports Infobae.

The bankruptcy ruling places the company under the supervision
of court-appointed trustee, Mr. Gustavo Pagliere. The trustee
will verify creditors' proofs of claims until September 27,
2004.

The bankruptcy process will end with the disposal company assets
in favor of its creditors.

CONTACT: Mr. Gustavo A. Pagliere, Trustee
         Tucuman 1424
         Buenos Aires


KEF S.R.L.: Begins Court-Ordered Liquidation Proceedings
--------------------------------------------------------
Kef S.R.L. of Buenos Aires will begin liquidating its assets
after Court No. 4 of the city's Civil and Commercial Tribunal
declared the company bankrupt.

Infobae reveals that the bankruptcy process will commence under
the supervision of court-appointed trustee, Mr. Oscar Alfredo
Arias. The trustee will review claims forwarded by the company's
creditors until September 21, 2004.

Clerk No. 8 assists the court on this case.

CONTACT: Mr. Oscar Alfredo Arias, Trustee
         Carlos Pellegrini 1063
         Buenos Aires


MAYRAL S.R.L.: Seeks Authorization to Restructure Debts
-------------------------------------------------------
Mayral S.R.L., a company operating in Buenos Aires, requested
for reorganization after failing to pay its liabilities, says
local daily Infobae. 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 Court No. 15 of the city's Civil and
Commercial Tribunal. Clerk No. 29 assists the court on this
case.

CONTACT: Mayral S.R.L.
         Belgrano 687
         Buenos Aires


MEDECAL S.A.: Bankruptcy Initiated on Court Orders
--------------------------------------------------
Court No. 2 of Buenos Aires' Civil and Commercial Tribunal
declared local Company Medecal S.A. bankrupt after it defaulted
on its debt payments. The order effectively places the company's
affairs as well as its assets under the control of court-
appointed trustee, Mr. Francisco Jose Granja.

As trustee, Mr. Granja is tasked with verifying the authenticity
of claims presented by the company's creditors. The verification
phase is ongoing until September 20, 2004.

Following claims verification, the trustee will submit
individual reports based on the forwarded claims for final
approval by the court on November 15, 2004. A general report
will also be submitted on December 12, 2004.

Infobae reports that Clerk No. 4 assists the court on this case,
which will end with the disposal of the company's assets to
repay creditors

CONTACT: Mr. Francisco Jose Granja, Trustee
         Parana 467
         Buenos Aires


PEDRO ALESSIO: Trustee to Close Validation Phase
------------------------------------------------
Mr. Carlos Daniel Gandini, trustee for the Pedro Alessio e Hijos
S.A.I.C. y F. bankruptcy, will close the verification of
creditors' claims tomorrow, August 11, 2004. Creditors should
forward all claims before the said date to qualify for any
liquidation payments.

The trustee will also prepare individual reports after the
verification process is completed, and have them ready by
September 22, 2004. A general report on the bankruptcy process
is expected on November 4, 2004.

CONTACT: Pedro Alessio e Hijos S.A.I.C. y F.
         Avda del Valle 3932
         Olavarria

         Mr. Carlos Daniel Gandini, Trustee
         Fassina 3157
         Olavarria


PRIDE INTERNATIONAL: Records $.02 Earnings Per Share in 2Q04
------------------------------------------------------------
Pride International, Inc. (NYSE: PDE) reported net earnings for
the second quarter of 2004 of $2,522,000, or $.02 per share, on
revenues of $446,358,000. Excluding construction project losses
totaling $5,267,000, after tax, net earnings would have been
$7,789,000, or $.06 per share (1). For the same period in 2003,
Pride reported a net loss of $18,173,000, or $.14 per share, on
revenues of $408,615,000.

For the six-month period ended June 30, 2004, Pride reported a
net loss of $4,243,000, after tax, or $.03 per share, on
revenues of $879,923,000. Excluding construction project losses
totaling $15,830,000, net earnings would have been $11,587,000
or $.09 per diluted share.(1) For the corresponding six-month
period in 2003, the net loss was $14,193,000, or $.11 per share,
on revenues of $804,036,000.

Results for the Company's operations for the second quarter of
2004 were generally improved sequentially and year-over-year.
The Company's Western Hemisphere segment improved year-over-year
due to an increase in the number of rigs deployed offshore
Mexico, and improved sequentially due to cost reduction measures
implemented and operating efficiencies realized during the
period. Results also benefited from a full quarter's
contribution from the Pride South Atlantic semisubmersible,
located in Brazil, which commenced operations under a new
contract in January.

In the U.S. Gulf of Mexico, results for the second quarter were
significantly improved sequentially and year-over-year due to
improving dayrates and utilization of the jackup and platform
fleets, reflecting stronger market conditions.

Segment profit for the Eastern Hemisphere was essentially
unchanged sequentially and year-over-year.

Results from the Company's Latin America Land segment improved
sequentially. Drilling and workover rig utilization increased in
Argentina and Venezuela during the first quarter 2004 and
remained strong throughout the second quarter, resulting in
improved segment profits.

As previously disclosed, the Company had recorded pretax loss
provisions in connection with the construction of four deepwater
platform rigs on behalf of two customers totaling approximately
$98.4 million in 2003, and $21.3 million in the first quarter of
2004. During the second quarter of 2004, the Company recorded
additional pretax losses relating to these construction projects
of approximately $10.5 million.

The additional construction losses recorded in the second
quarter are attributable to revisions of previous estimates due
principally to completion issues at the shipyards constructing
the final two rigs and renegotiations of commercial terms with
shipyards, equipment vendors and other subcontractors. Three of
the rigs have been completed and installed on the customers'
platforms. The final rig has been loaded on a heavy-lift vessel
for shipment to the customer's platform construction site for
integration into the unit. The Company will continue
commissioning of the rig at that location through the middle of
the fourth quarter.

Pride International, Inc., headquartered in Houston, Texas, is
one of the world's largest drilling contractors. The Company
provides onshore and offshore drilling and related services in
more than 30 countries, operating a diverse fleet of 328 rigs,
including two ultra-deepwater drillships, 11 semisubmersible
rigs, 35 jackup rigs, and 31 tender-assisted, barge and platform
rigs, as well as 249 land rigs.

Pride has over 40 years experience in Latin America, with
operations in Argentina, Brazil, Bolivia, Colombia, Ecuador,
Peru and Venezuela. The Company provides onshore and offshore
drilling and E&P services in these countries, with over 250 rigs
and 6,000 employees.

Note:

(1) See Exhibit A for a consolidated statement of operations
adjusted to exclude rig construction projects for the three-and
six-month periods ended June 30, 2004.  Operating results
excluding construction projects is a non-GAAP measure. The
Company believes it is important to present the results from
operations excluding construction projects as we do not
currently intend to enter into any additional construction
contracts on a lump-sum basis to build rigs to be owned by
others.

To view financial statements, please visit:
http://bankrupt.com/misc/Pride_2Q04.htm

CONTACT: Mr. Steven D. Oldham
         Mr. Louis A. Raspino
         Pride International
         5847 San Felipe
         Suite 3300
         Houston, TX 77057
         Tel (713) 789-1400
         Fax: (713)789-1430

         Web Site: www.prideinternational.com


PURITY ARGENTINA: Trustee Submits Individual Reports
----------------------------------------------------
Mr. Jorge David Jalfin, trustee for the Purity Argentina S.R.L.
bankruptcy, will submit individual reports from the case today,
August 10, 2004. These reports are based on the proofs of claims
submitted by the Company's creditors during the credit
verification period.

Court No. 10 of Buenos Aires' Civil and Commercial Tribunal
handles this case with assistance from Clerk No. 20.

CONTACT: Mr. Jorge David Jalfin, Trustee
         Sarmiento 1452
         Buenos Aires


STOK S.A.: Court Orders Asset Liquidation
-----------------------------------------
Court No. 25 of Buenos Aires' Civil and Commercial ordered the
liquidation of local Company Stok S.A. after it failed to pay
its debts, Infobae reveals.

Court-appointed trustee, Mr. Luis Marcelo Oropesa will verify
creditors' proofs of claims until September 20, 2004. The
verified claims will serve as basis for the individual reports
to be submitted in court on November 2, 2004. The submission of
the general report follows on December 15, 2004.

Clerk No. 49 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Mr. Luis Marcelo Oropesa, Trustee
         Libertad 293
         Buenos Aires


TRANSENER: Losses Follow Exchange Rate Variation
------------------------------------------------
Argentine transmission company Transener SA (TRAN.BA) revealed
Thursday a net loss of ARS53.3 million for the six months ended
June 30, against a net profit of ARS174.4 million a year
earlier. The Company blames exchange rate variation and higher
financial expenses for the loss. Exchange rate losses were
ARS11.8 million compared to ARS215 million in profits in the
first half of 2003. At the same time, financial expenses during
the first half of 2004 increased 123% to ARS10.5 million.

Non-operating losses during the recent first half were ARS63.7
million, against a net financial gain of ARS161.4 million a year
earlier.

Net sales for the period totaled ARS139.4 million, up from
ARS132.7 million a year ago. However, operating costs spiked to
ARS108.5 million from ARS97.1 million. This dragged down gross
profit to ARS30.9 million from ARS35.6 million in the same
period of 2003.

Transener, which has a debt burden of about US$520 million, said
it is in negotiations with its creditors on new repayment terms,
though "it's not in a position to predict if the result of these
negotiations will be satisfactory or not."

CONTACT:  Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


TUFICNADER S.A.: Debt Payments Halted, Set To Reorganize
--------------------------------------------------------
Court No. 26 of Buenos Aires' Civil and Commercial Tribunal is
currently reviewing the merits of a reorganization petition
filed by Tuficnader S.A.

Infobae 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.

Clerk No. 52 assists the court on this case.

CONTACT: Tuficnader S.A.
         Humboldt 57
         Buenos Aires


UBOLDO S.A.: Files Voluntary Bankruptcy Motion
----------------------------------------------
Buenos Aires-based Uboldo S.A. filed for bankruptcy protection,
reports local daily Infobae. The Company's petition is pending
before Court No. 11 of the city's Civil and Commercial Tribunal.
Clerk No. 21 assists the court on this case.

CONTACT: Uboldo S.A.
         Sarmiento 1169
         Buenos Aires



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

C&W BARBADOS: Seeks Review of Rates Hike Petition
-------------------------------------------------
Cable & Wireless Barbados is not giving up on its bid for a rate
adjustment despite the Fair Trading Commission's (FTC) thumbs
down last month.

Mr. Donald Austin, C&W Barbados president, said in a Barbados
Nation interview that legal advisers found comprehensive grounds
for review after studying the decision handed out by FTC deputy
chairperson Viviane Anne-Gittens. He adds that the company will
refer to its previous submissions during the review process.

The rate adjustment was intended to recover $24.7 million of the
$29 million subsidy given by C&W's international business to
support local operations.



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

* Moody's Cuts Belize's Ratings on Increasing Debt
--------------------------------------------------
Moody's Investors Service downgraded Belize's credit ratings on
Thursday as the country struggles to deal with mounting debts.

Moody's lowered Belize's country ceiling for bonds and notes to
B2 from Ba3 and its foreign-currency country ceiling for bank
deposits to B3 from B1. The ratings agency also reduced Belize's
foreign-currency bond ratings to B2 from Ba3.

"The debt buildup that led to the downgrade was largely a direct
consequence of expansionary policies, although it also
incorporates financing incurred to cover the reconstruction
costs associated with various infrastructure projects," Moody's
said in a statement.



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B E R M U D A
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LORAL SPACE: Names Patrick K. Brant President of Loral Skynet
-------------------------------------------------------------
Loral Space & Communications announced Friday that Mr. Patrick
K. Brant has been named president of subsidiary Loral Skynet.
Mr. Brant succeeds Terry Hart.

Mr. Brant, 53, takes the helm at Loral Skynet as Loral prepares
to file a plan of reorganization that should allow it to emerge
from bankruptcy before the end of the year. Loral Skynet owns
and operates a fleet of four telecommunications satellites that,
in combination with its established hybrid VSAT/fiber global
network infrastructure, provides secure, high-quality video
broadcasting, broadband data transmission, Internet services and
other value-added communications services to commercial and
government customers.

Mr. Brant served as an executive at Loral Cyberstar from 1999 to
2003, ultimately as its president and chief operating officer.
He was a leading participant in Cyberstar's integration into
Loral Skynet in 2003. His strong sales, marketing and business
development background includes senior management positions at
satellite companies, including Orbital Communications and
American Mobile Satellite Corporation. Mr. Brant holds a
Bachelor of Science degree in Economics from the University of
Maryland.

"Pat Brant's strong sales and marketing experience, knowledge of
the industry, and leadership capabilities will unquestionably
enhance our efforts to build out our international network of
satellite services," stated Bernard L. Schwartz, chairman and
chief executive officer of Loral.

Terry Hart, who served as president of Loral Skynet for seven
years, left the company to pursue a career in academia, a
longstanding objective. "We are grateful to Terry Hart, under
whose leadership Loral Skynet grew from a one-satellite company
in 1997 to an international satellite services company today. He
has our respect and admiration for staying the course through
the recent difficult time at Loral and in our industry," Mr.
Schwartz continued, "and we wish him well."

Loral Space & Communications is a satellite communications
company. In addition to having Loral Skynet as its subsidiary,
Loral, through its Space Systems/Loral subsidiary is a world-
class leader in the design and manufacture of satellites and
satellite systems for commercial and government applications
including direct-to-home television, broadband communications,
wireless telephony, weather monitoring and air traffic
management.

CONTACT: Mr. John McCarthy
         Loral Space & Communications
         Tel: 212/338-5345

         Web Site: www.loral.com



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

LIGHT SERVICOS: BNDES to Review Debt Plan
-----------------------------------------
Power distributor Light Servicos de Electricidade (LIGH3.SA)
crosses a crucial phase in the restructuring of its US1.5
billion liability when it submits a debt plan to the BNDES later
this month, says Reuters.

The plan, created together with the Company's 16 creditor banks,
comprises US$660 million of the Company's debts. Last September
BNDES, Brazil's National Economic and Social Development Bank,
agreed to cover US$200 million of this amount in the form of
debentures if Light succeeds in forging a settlement with the
creditor banks.

Mr. Paulo Roberto Pinto, the Company's finance director, said
that BNDES would take around 45 days to come up with the funds
once it had reviewed the terms of the debt plan. He adds that
"In three years, the BNDES will be able to convert the
debentures into shares and we will have a new partner which will
make Light attractive again on the stock market."

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


NET SERVICOS: Board Approves CMA Registration Cancellation
----------------------------------------------------------
NET SERVI€OS DE COMUNICACAO S.A. ("NET") board members, the
controlling shareholder of CMA PARTICIPACOES S.A. ("CMA"),
approved the cancellation of CMA public company registration.
Therefore, NET will make a public offering for the acquisition
of 100,001 (one hundred thousand and one) common shares
outstanding, representing 0.01% (zero point zero one percent) of
CMA's voting capital and 94,315,540 (ninety-four million, three
hundred fifteen thousand and five hundred forty) preferred
shares, representing 4.10% (four point ten percent) of CMA's
voting capital ("OPA").

1. The offering share price for the acquisition of CMA's common
and preferred shares will be R$1.35 (one real and thirty-five
centavos) per 1,000 shares ("Price").

2. The Price should be paid in cash, in legal tender (Real),
adjusted according to the variation of monthly referential
interest rate ("TR"), calculated pro rata temporis as of the
presented date until the date of its financial liquidation or
other payments resulting from subsequent events, if applicable.

3. NET makes available as of today and during the OPA period,
the valuation report prepared by Boucinhas & Campos Soteconti
Auditores Independentes S/C, as provided by CVM Instruction #
361, as of March 05, 2002 ("Valuation Report"),

(i) at its headquarters, located in the City and State of Sao
Paulo, at Rua Verbo Divino, n§ 1.356 - 1§ andar (parte), CEP
04719-002, Chacara Santo Antonio,

(ii) at CMA's headquarters, located in the City and State of Sao
Paulo, at Rua Verbo Divino, n§ 1.356 - 1§ andar (parte), CEP
04719-002, Chacara Santo Antonio,

(iii) at CMA/NET's website: www.ri.netservicos.com.br,

(iv) at Agora Senior Corretora de T”tulos e Valores Mobiliarios
S.A ("Intermediate Institution"), located in the City and State
of Rio de Janeiro, at Rua Dias Ferreira, n§ 190, 6§ andar,

(v) at the Brazilian Securities and Exchange Commission ("CVM"),
located in the City and State of Rio de Janeiro, at Rua Sete de
Setembro, n§ 111, 5§ andar, "Consulting Center", and in the City
and State of Sao Paulo, at Rua Formosa, n§ 367, 20§ andar,
Centro,

(vi) at CVM's website: www.cvm.gov.br,

(vii) at the Sao Paulo Stock Exchange ("BOVESPA"), located in
the City and State of Sao Paulo, at Rua XV de Novembro, 275, and

(viii) at BOVESPA's website: www.bovespa.com.br

4. As provided by Article 4-A of Law # 6,404/76 and Article 24
of CVM's Instruction # 361/02, CMA's shareholders willing to
submit a Price revision request, should address such request,
until August 24, 2004, at 6 p.m., against receipt, to Mr.
Leonardo Porciuncula Gomes Pereira, NET's Chief Financial and
Investor Relations Officer, at NET's abovementioned address.

Requests should be in written form, duly justified including
certainty facts that show failures or error in applying either
the calculation methodology or the valuation criteria when
preparing the Valuation Report, as well as, information
referring to the qualification and total number of shares
individually held by the request applicant, in order to request
that a special meeting of the holders of outstanding shares
("Special Meeting") is called.

5. The OPA should be previously registered at CVM, including the
eventual use of different procedures, as provided by Article 34
of CVM Instruction # 361/02.

Closing: Having no further issues to be discussed, the meeting
was ended and these minutes drawn up, which were read, approved
and signed by all attendees.

Sinatures : Mr. Jorge Luiz de Barros Nobrega, Mr. Ronnie Vaz
Moreira, Mr. Stefan Alexander, Mr. Rossana Fontenele Berto, Mr.
Guilherme Perboyre Cavalcanti, Mr. Edgard Lobao dos Santos, Mr.
Romulo de Mello Dias and Mr. Nelson Pacheco Sirotsky.

I certify that this is a free translation of the original
minutes drawn up in the Company's proper book.

Mr. Andre Muller Borges
Secretary
Sao Paulo, August 6, 2004.

DETAILS:

Date, Time and Venue: August 6, 2004, at 6 p.m., at the
Company's headquarters, at Rua Verbo Divino, 1.356 - 1o andar,
Chacara Santo Antonio, Sao Paulo, SP.

Attendance: Members of the Board of Directors representing the
necessary quorum, in accordance to the signatures below.

Board of the Meeting: Jorge Luiz de Barros Nobrega - Chairman.
Andr‚ Mller Borges - Secretary.

CONTACTS: Net Servicos de Comunicacao S.A.
          Mr. Marcio Minoru, 5511-5186-2811
          minoru@netservicos.com.br

          or

          Mr. Rodrigo Alves, 5511-5186-2637
          rodrigo.alves@netservicos.com.br


PARMALAT: Extraordinary Commissioner Files Claim vs UBS
-------------------------------------------------------
- Extraordinary Commissioner Enrico Bondi launches first
revocatory action against UBS.
- Reserves the right to seek damages from UBS.

Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates that Dr. Enrico Bondi, in his role as Extraordinary
Commissioner of Parmalat Finance Corporation BV ("Parmalat BV")
has filed a claim with the Court of Parma against UBS Limited
("UBS"), in the form of a revocatory action under article 67 of
the Italian bankruptcy law in connection with the transaction
carried out in July 2003 which saw the issue of two bonds for a
total nominal value of ?420 million in the context of which
Parmalat BV acquired from UBS ?290 million in bonds from Banco
Totta & A‡ores S.A.

The latter were Credit Linked Notes that were underwritten by
UBS by way of protection against a default risk of the Parmalat
Group. The amount being sought under this revocatory action is
?290 million plus interest. Further, the Extraordinary
Commissioner has reserved the right to act separately to recover
damages from UBS.

CONTACT: Parmalat Finanziaria
         Piazza Erculea 9, 20122
         Milano (MI), ITALIA.
         Phone: +39 02 8068801
         Fax: +39 02 8693863



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

ENERSIS: Offers to Exchange $350M Worth of Unregistered Notes
-------------------------------------------------------------
Enersis S.A., acting through its Cayman Islands branch offer to
exchange all of our outstanding unregistered US$350,000,000
7.375% notes due 2014 for US$350,000,000 7.375% notes due 2014
which have been registered under the Securities Act of 1933.

Principal Terms of the Exchange Offer:

- We are offering to exchange the notes that we sold previously
in a private offering for new SEC-registered notes.

- The terms of the new notes are identical to the terms of the
old notes, except for the transfer restrictions and registration
rights relating to the outstanding old notes, which do not apply
to the new notes.

- The exchange offer will expire at 12:00 midnight, New York
City time, on September 3, 2004 unless we extend it.

- We will exchange all old notes that are validly tendered and
not validly withdrawn.

- We will pay the expenses of the exchange offer.

- You may withdraw tenders of old notes at any time before 12:00
midnight, New York City time, on the date of the expiration of
the exchange offer.

- Application has been made to list the new notes on the
Luxembourg Stock Exchange.

- We will not receive any proceeds from the exchange offer.

- No dealer-manager is being used in connection with the
exchange offer.

- The exchange of old notes for new notes will not be a taxable
exchange for United States federal income tax purposes.

PROSPECTUS SUMMARY:

This summary contains material information about us and this
offering. Before making a decision to participate in the
exchange offer, you should read this entire prospectus,
including the section entitled "Risk Factors," our annual report
on Form 20-F/ A for the fiscal year ended December 31, 2003,
including our audited consolidated financial statements and the
notes thereto.

The Exchange Offer:

Securities Offered

We are offering up to US$350,000,000 aggregate principal amount
of 7.375% notes due 2014, which have been registered under the
Securities Act.

The Exchange Offer

We are offering to issue the new 7.375% notes due 2014 for a
like principal amount of unregistered old 7.375% notes due 2014.
We are offering to issue the new notes to satisfy our
obligations contained in the registration rights agreement
entered into when the old notes were sold in transactions
permitted by Rule 144A and Regulation S under the Securities Act
and therefore not registered with the SEC.

Tenders, Expiration Date, Withdrawal

The exchange offer will expire at 12:00 midnight. New York City
time on September 3, 2004 unless it is extended. If you decide
to exchange your old notes for new notes, you must acknowledge
that you are not engaging in, and do not intend to engage in, a
distribution of the new notes.

If you decide to tender your old notes in the exchange offer,
you may withdraw them at any time prior to 12:00 midnight New
York City time on September 3, 2004. If we decide for any reason
not to accept any old notes for exchange, your old notes will be
returned to you without expense to you promptly after the
exchange offer expires.

Taxation

Your exchange of old notes for new notes in the exchange offer
will not result in any income, gain or loss to you for United
States federal income tax purposes. See the section of this
prospectus entitled "Taxation" beginning on page 53 for further
details.

Use of Proceeds

We will not receive any proceeds from the issuance of the new
notes in the exchange offer.

Exchange Agent

Deutsche Bank Trust Company Americas, and its affiliate in
Luxembourg, Deutsche Bank Luxembourg S.A., are the exchange
agents for the exchange offer. You can find the address and
telephone number for Deutsche Bank Trust Company Americas and
Deutsche Bank Luxembourg S.A. on the inside of the back cover of
this prospectus.

Information Agent

D. F. King & Co., Inc. is serving as the information agent for
the exchange offer. You can find the address and telephone
number for D. F. King and Co., Inc. on the inside of the back
cover of this prospectus.

Failure to Tender Your Old Notes

If you fail to tender your old notes in the exchange offer, you
will not have any further rights under the Registration Rights
Agreement, including any right to require us to register your
old notes or to pay you additional interest.

Except for registration of the new notes under the U.S.
Securities Act of 1933 and authorization by the Luxembourg Stock
Exchange for listing the new notes, we are not aware of any
approval or other action by any government or governmental
administrative regulatory authority or agency, domestic or
foreign, or any consent, waiver or other approval that would be
required as a result of or in connection with this exchange
offer. Should any such approval or other action be required, we
currently contemplate that such approval or other action will be
sought. This exchange offer is subject to the law and
regulations governing exchange offers in the United States,
Luxembourg and Chile and we believe that the exchange offer is
being conducted in compliance with such laws and regulations.

Under existing interpretations of the staff of the SEC contained
in several no-action letters to third parties, the new notes
would in general be freely transferable after the exchange offer
without further registration under the Securities Act. The
relevant no-action letters include the Exxon Capital Holdings
Corporation letter, which was made available by the SEC on May
13, 1988, and the Morgan Stanley & Co. Incorporated letter, made
available on June 5, 1991.

By participating in this exchange offer and executing, or
otherwise becoming bound by, the letter of transmittal each
holder of the old notes represents that:

(1) it is not our "affiliate", within the meaning of Rule 405
under the Securities Act;

(2) any new notes received by it will be acquired in the
ordinary course of its business;

(3) it has no arrangement or understanding with any person to
participate in the distribution of the old notes or new notes
within the meaning of the Securities Act;

(4) it is not engaged in, and does not intend to engage in, the
distribution of the new notes within the meaning of the
Securities Act;

(5) if that holder is a broker-dealer, it will receive new notes
in exchange for old notes that were acquired for its own account
as a result of market-making activities or other trading
activities and it will deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale
of such new notes; and

(6) if that holder is a broker-dealer, it did not purchase the
old notes being tendered in the exchange offer directly from us
for resale pursuant to Rule 144A or any other available
exemption from registration under the Securities Act.

Any purchaser of old notes who is not able to make these
representations is a "restricted holder." As a restricted holder
you:

(1) will not be able to rely on the interpretation of the staff
of the SEC set forth in the no-action letters referred to above;

(2) will not be able to tender your old notes in the exchange
offer; and;

(3) must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with any sale
or transfer of the old notes unless that sale or transfer is
made using an exemption from those requirements or in a
transaction not subject to the Securities Act.

Any broker-dealer who holds old notes acquired for its own
account as a result of market-making or other trading activities
and who receives new notes in exchange for such old notes
pursuant to the exchange offer may be a statutory underwriter
and must deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such new notes.

The SEC has taken the position that participating broker-dealers
may fulfill their prospectus delivery requirements with respect
to such new notes with the prospectus contained in the exchange
offer registration statement.

Under the registration rights agreement, for a period of 90 days
following the expiration date of the exchange offer,
participating broker-dealers will be entitled to use the
prospectus contained in the exchange offer registration
statement in connection with the resale of exchange notes,
subject to exceptions, including our right to suspend the use of
that prospectus.

Except as described above, this prospectus may not be used for
an offer to resell, resale or other transfer of new notes.

Summary Description of the New Notes

The terms of the new notes and the old notes are identical in
all material respects, except that the new notes have been
registered under the Securities Act, and the transfer
restrictions and registration rights relating to old notes do
not apply to the new notes.

Issuer: ENERSIS S.A., acting through its Cayman Islands branch.

New Notes: US$350,000,000 aggregate principal amount of 7.375%
notes due 2014.

Interest Rates: 7.375% per year.

Maturity: The new notes will mature on January 15, 2014.

Interest Payment Dates: January 15 and July 15 of each year,
commencing July 15, 2004.

Redemption Price at Maturity: 100%.

Sinking Fund: None.

Book Entry System and Form and Denomination of the New Notes:

The new notes will be issued only in fully registered form,
without coupons, in the form of beneficial interests in one or
more global securities in denominations of US$1,000 and integral
multiples thereof. Beneficial interests in the global securities
will be shown on, and transfers thereof will be effected only
through, the book-entry records maintained by The Depository
Trust Company, or DTC, and its participants, including Euroclear
and Clearstream. The new notes will not be issued in definitive
form except under certain limited circumstances described
herein.

Optional Tax Redemption:

The new notes are redeemable at our option in whole (but not in
part), at any time, at the principal amount thereof plus accrued
and unpaid interest and any additional amounts due thereon if
the laws or regulations affecting taxes in the Republic of Chile
or in the Cayman Islands change in certain respects.

Ranking of the Notes:

The new notes will be our direct, unsecured and unconditional
general obligations and subject to customary exceptions, such as
bankruptcy administrative expenses, employee wages, social
security payments, legal and contractual worker's compensation
payments and taxes, the notes will rank at least equally among
themselves and at least equally in right of payment with all of
our other present and future unsecured and unsubordinated
obligations.

At June 30, 2004, Enersis, on a stand-alone basis, had Ch $906.5
billion (US $1.4 billion) of financial indebtedness.

This indebtedness is unsecured and will rank pari passu with the
new notes. We had no financial indebtedness as of that date that
was secured or ranked senior to the new notes.

We conduct a substantial part of our operations through our
subsidiaries. The new notes will effectively rank junior to any
indebtedness and obligations (including trade payables) of our
subsidiaries to the extent of the assets of such subsidiaries.

At June 30, 2004, our subsidiaries had outstanding aggregate
indebtedness of Ch $3.0 trillion (US$4.7 billion) (excluding
indebtedness owed to us and to other subsidiaries), including
indebtedness secured by liens on or other security interests in
assets of our subsidiaries of approximately Ch $203.6 billion
(US$319.9 million) at June 30, 2004. None of this indebtedness
is secured by us.

The indenture for the new notes (described below) contains no
restrictions on the amount of additional indebtedness that may
be incurred by us or our subsidiaries; however, the Indenture
contains certain restrictions on our ability and the ability of
our subsidiaries to incur secured indebtedness. Our ability to
make payments with respect to the new notes is dependent in part
upon the receipt of distributions, dividends, interest or other
amounts from our subsidiaries and equity investees. We are a
holding company and depend on payments from our subsidiaries and
related companies to meet our payment obligations.

Indenture:

The new notes will be issued under an indenture, as amended,
dated as of November 1, 1996, between us, acting through our
Cayman Islands branch and JPMorgan Chase Bank (formerly The
Chase Manhattan Bank), as trustee.

Covenants:

The indenture contains, among other things, a limitation on
liens covenant and a limitations on sale and lease-back
transactions covenant. The limitation on liens covenant
precludes us or any of our subsidiaries, with certain
exceptions, from issuing, assuming or guaranteeing any
indebtedness, if such indebtedness is secured by a lien upon any
specified property or any capital stock or indebtedness of any
person, now owned or hereafter acquired unless the new notes are
equally and ratably secured by that lien. The limitations on
sale and lease-back transactions covenant precludes us, with
certain exceptions, from entering into sale and lease-back
transactions similar to secured borrowings that would be
prohibited under the limitations on lien covenant. See
"Description of the New Notes - Covenants" beginning in page 33
for a more detailed description of these covenants.

Use of Proceeds:

We will not receive any proceeds from the exchange of new notes
for old notes.

Withholding Tax:

Under current Chilean and Cayman Islands laws and regulations,
payments of interest to a holder of the new notes by Enersis'
Cayman Islands branch generally will not be subject to Chilean
or Cayman Islands withholding tax. However, if payments of
interest to a holder of the new notes become subject to Chilean
or Cayman Islands withholding tax then, subject to certain
exceptions, we will pay additional amounts so that the amount
received by the holder that is not a resident of Chile, after
Chilean or Cayman Islands withholding tax, will equal the amount
that would have been received if no such taxes had been
applicable. For a discussion of the tax consequences of, and
limitations on, the payment of additional amounts with respect
to any withholding taxes, see "Description of the New Notes -
Payment of Additional Amounts" beginning in page 32, "Taxation -
Chilean Taxation" beginning in page 53 and "Taxation - Cayman
Islands Taxation" in page 54.

Listing:

Application has been made to list the new notes on the
Luxembourg Stock Exchange. The new notes will not otherwise be
listed on any national security exchange.

Governing Law:

The indenture and the new notes will be governed by, and will be
construed in accordance with, the laws of the State of New York,
without giving effect to applicable conflict of laws principle

Our Company:

Summary of Enersis and Our Business

Enersis is one of the largest private sector electricity
companies in South America in terms of consolidated assets and
operating revenues, with over ten million customers, and the
largest electricity company in Chile. We are primarily engaged,
through our principal subsidiaries and related companies, in the
generation and distribution of electricity in Chile, Argentina,
Brazil, Colombia and Peru and secondarily engaged in the
transmission of electricity through a transmission line between
Argentina and Brazil. Please see "The Company" beginning in page
21 for additional information on our South American operations.

We believe that there is long-term potential for significant
growth in per capita energy demand in South America, as well as
for significant growth attributable to demographic trends, and
we seek to take advantage of our know-how and market position as
the leading private sector electricity company in the region to:

- enhance earnings through expansion of our unregulated client
base;

- improve our operating margins by reducing the operating costs
of our existing businesses; and

- focus on our core business by disposing of our interests in
non-strategic business lines .

CONTACT: Enersis S.A.
         Santo Rosa 76
         Santiago,
         Phone: (562) 688-6840

         Web Site: http://www.enersis.cl


MADECO: Higher Sales, Tax Recovery Boost Financial Performance
--------------------------------------------------------------
Chilean copper cable maker Madeco saw its net profits soar in
the second-quarter of the year due to higher sales and a tax
recovery, reports Reuters. In a statement, Madeco revealed that
net profit during the April-June 2004 period rose to CLP3.018
billion from a profit of CLP17 million in the same period in the
previous year.

The Company, which is 77% owned by financial and industrial
conglomerate Quinenco, reported a 52% increase in revenues to
US$135.6 million in the recent quarter due to higher sales of
copper rod and cable products in Chile, Argentina, Peru and
Brazil.

In addition, the Company's quarterly net income was boosted by
an income tax gain of US$1.2 million versus a loss of US$0.3
million a year ago.

"In June 2004, the company received a tax recovery in Chile for
a total amount of 1.519 billion (pesos)," Madeco said.



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

AVIANCA: Pilots Agree to Negotiate Once Again
---------------------------------------------
Pilots at Avianca, Colombia's ailing flagship airline, have
decided to call off a threat to go on strike, reports Dow Jones
Newswires. Instead, they agreed to resume negotiations with the
airline's owners on Monday, Social Welfare Diego Palacio, who
has been mediating in the conflict, said.

Alberto Padilla, president of the pilots' union, earlier
revealed that the pilots are demanding that the Company pay
US$97.6 million it owes retired pilots; renegotiate the
collective agreements it has with five different unions; and
approve a salary increase of 19% after two years without raises.

A strike at Avianca could potentially throw into jeopardy a
takeover bid from Grupo Sinergy, which is owned by Brazilian
entrepreneur German Efromovich.

Sinergy offered in March to inject US$64 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.

Efromovich met with 54 pilots last week in a bid to avert the
strike. He asked pilots to stop hostilities and to try to work
normally during the next 45 days, when the Company is expected
to emerge from bankruptcy.

Avianca is owned by Colombia's National Federation of Coffee
Growers and Valores Bavaria (VALBAVARI.BO), a leading local
conglomerate. A U.S. bankruptcy court has been overseeing the
airline's Chapter 11 case since it was filed in March 2003.


BELLSOUTH COLOMBIA: SIC Approves Sale to TEM
--------------------------------------------
Bellsouth Corp. (NYSE: BLS) has cleared regulatory hurdles to
sell its Colombian unit to Spain's Telefonica Moviles (NYSE:
TEM). According to Business News Americas, Colombia's trade and
industry ministry SIC approved the sale of mobile operator
BellSouth Colombia to TEM.

BellSouth has a 66% stake in the Colombian operation and it is
still unclear whether TEM will buy the other shareholders'
stakes.

BellSouth Colombia reported a first-half net profit of COP78.2
billion (US$29.9 million), higher than the previous year's
COP52.53 billion. Operating income rose to COP645.11 billion
(US$246.8 million) from COP516.6 billion. Net worth rose to
COP2.53 trillion (US$969.3 million) from COP1.77 trillion.

TEM is expected to re-brand BellSouth Colombia to Telefonica
Movistar, completing the changeover during September or October.

BellSouth Colombia is one of 10 operators which BellSouth is
selling to TEM in a US$5.85 billion deal announced March. The
other nine operations are in Chile, Argentina, Peru, Uruguay,
Ecuador, Venezuela, Guatemala, Nicaragua and Panama.



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

RICA FOODS: Appoints New Board of Director Members
--------------------------------------------------
Rica Foods, Inc. (Amex: RCF) (the "Company") announced Friday
that, effective August 1, 2004, the Board of Directors of Rica
Foods, Inc. appointed Victor Oconitrillo, Alfonso Gutierrez,
Carlos Ceciliano and Eladio Villalta (collectively, the "New
Directors") to fill four of the vacancies on the Board of
Directors created by the resignations of Calixto Chaves, Monica
Chaves, Jorge Quesada, Federico Vargas and Jose Vidal, discussed
below. In addition, as of the same date, the Board of Directors
appointed Mr. Oconitrillo as President and Chairman of the
Board, Mr. Gutierrez as Secretary of the Company and Mr.
Villalta as Treasurer of the Company. As discussed further
below, each of the New Directors has had experience working
and/or consulting with the Company's wholly owned subsidiaries
(the "Subsidiaries") since at least December 2003.

Between August 1, 2004 and August 5, 2004, Calixto Chaves,
Monica Chaves, Jose Vidal, Federico Vargas and Jorge Quesada
each resigned from the Board of Directors of the Company. Mr.
Chaves resigned as President and Chairman of the Board, Ms.
Chaves resigned as Secretary, Mr. Quesada resigned as Treasurer
and Carlos Zamora resigned as Chief Operating Officer. Neither
Mr. Chaves, Ms. Chaves, Mr. Quesada, Mr. Zamora, Mr. Vargas nor
Mr. Vidal indicated upon resignation or at any other time that
he or she disagreed with the Company on any matter relating to
the Company's operations, policies or practices.

On December 22, 2003, Mr. Chaves, Ms. Chaves, Jose Pablo Chaves,
Comercial Angui and certain other shareholders sold (the "Stock
Sale") common stock representing approximately 77.2% of the
Company's issued and outstanding shares of common stock to
Avicola Campesinos, Inc. ("Avicola"). Mr. Oconitrillo indirectly
beneficially owns approximately 38.3% of Avicola's equity
through Mavipel, S.A., a corporation wholly owned by Mr.
Oconitrillo's wife. Mr. Gutierrez indirectly beneficially owns
approximately 2.8% of Avicola's equity through Quirinal, S.A., a
corporation wholly owned by Mr. Gutierrez.

In connection with the Stock Sale, Mr. Oconitrillo was appointed
as President and as a member of the Boards of Directors of the
Company's Subsidiaries, Mr. Gutierrez was appointed as Secretary
and as a member of the Boards of Directors of the Subsidiaries
and Mr. Villalta was appointed as Treasurer and as a member of
the Boards of Directors of the Subsidiaries. In addition, Mr.
Ceciliano was appointed as Supervisor of the Subsidiaries'
Boards of Directors.

Mr. Oconitrillo, in addition to being appointed as President of
the Board of Directors of each of the Company's Subsidiaries,
has served, since August 1994, as the General Manager and as a
director of Grupo Consolidado SAMA, S.A. ("SAMA"), a privately
held financial advisory corporation and brokerage house, and
certain of its privately held affiliated companies, including
Inversiones Sama, S.A., Sama Puesto de Bolsa, Sama Internacional
(G.S.), S.A. and Sama Valores (G.S.), S.A. Mr. Oconitrillo
received his bachelor's degree in sociology and his master's in
business administration with an emphasis in international
business from National University of Costa Rica. Since 1982, Mr.
Oconitrillo has also been accredited as a stockbroker with the
Bolsa Nacional de Valores, S.A, the Costa Rican stock exchange.

Mr. Gutierrez, in addition to being appointed as Secretary of
the Company's Subsidiaries, has worked, since 1976, as an
attorney for a private law firm owned by him. Mr. Gutierrez has
also served as President of SAMA's Board of Directors since
November 2002. Mr. Gutierrez received his law degree from the
Universidad de Costa Rica in 1976 and has engaged in post-
graduate study in commercial law at the Instituto de Comercial y
Comparado Lorenzo Moss.

Mr. Villalta, in addition to being appointed as Treasurer of the
Company's Subsidiaries in August 2003, worked from 1988 to June
1993, as an Independent Accounting Advisor to Conferencia
Episcopal. Mr. Villalta retired in June 1993. Mr. Villalta has
served as a member of the Board of Directors of SAMA since April
2003. Mr. Villalta received his degree in business
administration with an emphasis in accounting from the
Universidad de Costa Rica and has engaged in post-graduate study
at the University CEARA de Brasil and the University of
California in Los Angeles. Mr. Villalta is a Certified Public
Accountant.

From June 2002 until the present, Mr. Ceciliano has served as
the President of Ceciliano Consultores, S.A., a business
consulting firm that he owns and operates. From June 1974 to
September 2000, Mr. Ceciliano was a partner in Ceciliano y
Compania, a Costa Rican privately held accounting firm. Mr.
Ceciliano has also served as the Supervisor of the Board of
Directors of SAMA from 1976 until the present. Mr. Ceciliano
received his bachelor's degree in Economics and Social Science
with an emphasis in business administration from the University
of Costa Rica.

CONTACT:  Rica Foods, Inc.
          Mauricio Marenco
          Tel: +1-305-858-9480
          E-mail: mmarenco@pipasa.net
          Web site: http://www.ricafoods.com



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

* IMF Completes Second PRGF Performance Review On Dominica
----------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the second review of the Dominica's performance under
its three-year Poverty Reduction and Growth Facility (PRGF)
arrangement. In doing so, the Executive Board approved
Dominica's request for a waiver on the nonobservance of the
continuous performance criterion on non-accumulation of external
payment arrears. (1)

This decision enables Dominica to draw an amount equivalent to
SDR 0.31 million (about US$450,000) under the arrangement, and
would bring total disbursements to SDR 2.97 million (about
US$4.3 million). The IMF's Executive Board approved Dominica's
three-year PRGF arrangement on December 29, 2003 for an amount
equivalent to SDR 7.7 million (about US$11.2 million).

Following the Executive Board's discussion of Dominica, on
August 4, 2004, Mr. Agust”n Carstens, Deputy Managing Director
and Acting Chair said:

"The Dominican authorities' consistently strong implementation
of the economic program supported by the Poverty Reduction and
Growth Facility (PRGF) arrangement has contributed to a rebound
of economic growth, with continued low inflation. The prospects
for sustained economic recovery will depend on the authorities'
successful execution of the 2004/05 budget, the timely
implementation of comprehensive structural reforms, and
completion of the ongoing debt restructuring needed for
Dominica's medium-term sustainability.

"The authorities have strengthened their fiscal consolidation
efforts, as seen in the 2004/05 budget. They are aiming for a
larger primary surplus for this fiscal year, and are advancing
the timetable for reaching the medium-term primary surplus
target to FY 2005/06. However, a large financing gap remains,
which is expected to be covered by the debt restructuring.

"It was noted that the authorities were observing the best
international practices regarding transparency, creditor
consultations, and the safeguarding of inter-creditor equity in
their debt restructuring efforts. While the initial slow pace of
engagement on the part of some of Dominica's creditors was
regrettable, the recent progress in advancing the debt
restructuring process is encouraging. Over the last few weeks,
the authorities reached agreement with creditors including the
Caribbean Development Bank, several bilateral creditors, private
investors with participatory rights in one of the two large
external bonds, and the bulk of domestic creditors. The banking
system and treasury bill market have remained stable in the wake
of the ongoing debt restructuring.

"Timely implementation of comprehensive structural reforms will
improve the investment climate, enhance competitiveness, and
strengthen the financial sector. These reforms include:
downsizing the civil service; raising civil servants' retirement
age; rationalizing tax exemptions; introducing a VAT;
implementing the Fiscal Responsibility Law; and improving the
budgetary framework," Mr. Carstens said.

Note:

(1) The Board also reviewed four noncomplying
purchases/disbursement during 2002-04 and a breach of
obligations under Article VIII, Section 5 of the Fund's Articles
of Agreement, which arose as a result of misreporting on the
observance of the continuous performance criterion on
nonaccumulation of external payments arrears due to a
misclassification of a small external claim. The Board was
satisfied with the authorities' swift actions to correct this
problem and granted waivers for the noncomplying purchases and
disbursement and decided not to take action for the breach of
obligations under Article VIII, Section 5.

CONTACTS: IMF External Relations Department
          International Monetary Fund
          700 19th Street, NW
          Washington, D.C. 20431 USA

          Public Affairs
          Phone: 202-623-7300 - Fax: 202-623-6278

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



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

* Dominican Republic Interest Payment Default Expected
------------------------------------------------------
The Dominican Republic is on the verge of defaulting on its
foreign debt, says International Herald Tribune. Two weeks ago,
the central bank missed a US$27 million interest payment on an
international bond. The bank's outgoing officials have declared
their desire to make the payment within a 30-day grace period,
which would technically avoid a default.

Nonetheless, investors and analysts are growing skeptical about
the government's ability to honor its obligations.

"It's an extremely acute situation," said Richard Francis, the
primary credit analyst of the Dominican Republic at Standard
Poor's in New York. "We think a default is a lot more likely
than not at this point."



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

DESC: Moody's Withdraws Ratings Following Debt Prepayment
---------------------------------------------------------
Moody's Investor Service withdrew its ratings for Desc, S.A. de
C.V. after the Company prepaid its Senior Secured Notes due 2007
(formerly the Dine Bonds) in June 2004 with proceeds from a
US$240 million rights offering completed in April 2004. As a
result of the prepayment, Desc no longer has public debt
instruments rated by Moody's.

Ratings Withdrawn:

- B3 Senior Implied rating

- Caa2 Senior Unsecured Issuer rating

DESC, S.A. de C.V. is one of the largest industrial groups in
Mexico, with 2003 sales of approximately US$ 2 billion and
nearly 14,000 employees, which through its subsidiaries is a
leader in the Automobile Parts, Chemical, Food and Property
sectors.

CONTACTS: Ms. Marisol Vazquez Mellado
          Mr. Jorge Padilla Ezeta
          Tel: (5255) 5261-8044
          jorge.padilla@desc.com.mx
          Ms. Maria Barona
          Ms. Melanie Carpenter
          Tel: 212-406-3690
          desc@i-advize.com

          Web Site: www.desc.com.mx


GRUPO MEXICO: BCP "Hold" Recommendation on SPCC Shares Unchanged
----------------------------------------------------------------
Peru's Banco de Credito (BCP) is maintaining its "hold"
recommendation for the shares of leading copper producer
Southern Peru Copper (SPCC) (NYSE: PCU), reports Business News
Americas. BCP is awaiting SPCC's decision on a proposal by its
controlling company, Grupo Mexico (54.2%), to transfer shares in
its mining unit Minera Mexico to SPCC in return for additional
shares in the Peruvian copper miner.

The bank's analysts said SPCC stock presented an upside of 10%
and set a target price of US$41.80 for the Company's shares in
2004, based on SPCC's recent positive financial results and a
good outlook for copper markets, reports Business News Americas.

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


GRUPO TMM: Completes Exchange Offer, Consent Solicitation
---------------------------------------------------------
Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A) ("Grupo TMM" or the
"Company") announced Friday that the exchange offer and consent
solicitation for its 9 «% Notes due 2003 (the "2003 notes") and
its 10¬% Senior Notes due 2006 (the "2006 notes") expired at
midnight, New York City time, on August 5, 2004 (the "expiration
date").

As of midnight on the expiration date, $170,618,000 aggregate
principal amount of the 2003 notes and $197,121,000 aggregate
principal amount of the 2006 notes had been properly tendered
and not withdrawn. All of the conditions to the exchange offer,
including receipt of tenders from holders of at least 95.3% of
the aggregate principal amount of 2003 notes and 97.3% of
aggregate principal amount of 2006 notes, were satisfied at the
expiration date and the Company has accepted all of the tendered
2003 notes and 2006 notes for exchange.

The Company expects to issue its new Senior Secured Notes due
2007 in exchange for the tendered 2003 notes and 2006 notes
Tuesday, August 10, 2004. As of the expiration date, the Company
had also received sufficient consents from holders of 2006 notes
to effect the proposed amendment to the indenture governing the
2006 notes which will remove substantially all of the
restrictive covenants of such indenture. The Company will pay in
cash the principal amount of, plus accrued unpaid interest on,
all of the 2003 notes that were not tendered in the exchange
offer and the accrued unpaid interest on the 2006 that were not
tendered in the exchange offer.

Javier Segovia, president of TMM commented: "Today's economic
climate has made the restructuring of TMM challenging, but the
successful completion of the bond exchange at the levels we were
able to achieve allowed us to avoid bankruptcy proceedings and
will give TMM the financial flexibility needed to move forward
with a new strategy for increasing value and providing healthy
returns to our investors. This is truly a milestone for TMM, and
we would like to thank our advisors, the bondholders' committee
and their advisors, and most importantly, all of our clients and
employees for their continued support."

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides
a dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in TFM, which operates
Mexico's Northeast railway and carries over 40 percent of the
country's rail cargo.

CONTACT: Grupo TMM, S.A.
         Av. de la Cuspide No. 4755 C.P. 14010
         Col. Parque del Pedregal
         Mexico D.F.
         Phone: (5255) 5629 8866
         Fax: (5255) 5629 8899

       Web Sites: www.tmm.com.mx
                  www.tfm.com.mx


HYLSAMEX: Expects To Reduce Debt by Half This Year
--------------------------------------------------
Mexican steelmaker Hylsamex SA, a unit of industrial
conglomerate Alfa, aims to cut debt by half this year, Bloomberg
reports, citing Chief Executive Alejandro Elizondo. The Company,
which defaulted on US$1.3 billion of debt three years ago, plans
to reduce its obligations to about US$500 million this year from
US$1 billion last year, making expansion possible, Elizondo
said.

Hylsamex posted a net profit of MXN1.39 billion in the three
months ended June 30, up from MXN480.4 million a year ago.
According to Elizondo, the Company will take advantage of the
increase in profit to pay back bank loans, and perhaps its
bondholders, ahead of schedule.

After paring the Company's debt, Elizondo said he plans to cut
costs by spending as much as US$100 million on a project to
replace as much as 90% of natural gas demand with lower- cost
alternative fuels. He plans to invest another US$10 million to
set up a plant to process steel in the U.S., which would be the
Company's first facility across the border, he said.

But Jorge Beristain, an analyst with Deutsche Bank AG in New
York, said Hylsamex runs the risk of driving down its stock and
bond prices by expanding so soon after it defaulted.

"They only recently got out of default," Beristain said. "They
have to earn back the market's trust and it's going to take some
time."

CONTACT:  Hylsamex S.A. de C.V.
          101 Ave Munich Cuauhtemoc
          66452 San Nicolas de los Garza
          Nuevo Leon
          Mexico
          Phone: +52 81 8865 2828
          Fax: +52 81 8865 1210
          Home Page: http://www.hylsamex.com.mx
          Contact:
          Engr. Dionisio Garza Medina, Chairman
          Alejandro Elizondo Barragan, Chief Executive Engr


ISPAT INTERNATIONAL: S&P Raises Corporate Credit Rating To 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Dutch-registered steel consortium
Ispat International N.V. (Ispat) to 'B' from 'B-'. The outlook
is positive. At the same time, Standard & Poor's raised its
ratings on Ispat's subsidiaries, Ispat Inland Inc., Ispat Inland
L.P., Ispat Europe Group S.A., Ispat Mexicana S.A de C.V., and
Ispat Sidbec Inc. The outlook is positive.

"The rating actions follow a continued positive outlook for the
steel market, which has resulted in good cash flow generation
and debt reduction at Ispat," said Standard & Poor's credit
analyst Tommy Trask. "The positive outlook reflects the
potential for a further ratings upgrade if present favorable
market conditions persist, and Ispat continues to devote free
cash flows toward debt reduction and strengthen its liquidity
position."

Ispat reported a stellar performance in the second quarter of
2004, with an operating margin of 22.5%, at the high end of
Western steel producers.

Present market conditions favor Ispat's business model, given
its meaningful backward integration into iron ore and its
ability to switch between steel scrap and direct reduced iron in
the steelmaking process. Despite some continued build-up in
working capital, Ispat was able to repay $208 million of debt in
the quarter. Given that the third and fourth quarters are likely
to be equally strong, and that the company's chairman has
reiterated that debt reduction continues to be a high priority
for Ispat, Standard & Poor's expects significant debt reduction
for the remainder of 2004.

The key negative credit factors for the Ispat group are: (i)
weakness in the group's financing structure, with dividend
restrictions preventing cash from moving from stronger to weaker
entities; (ii) weak liquidity, given the increase in cash tied
up in working capital and restrictive debt covenants; and (iii)
high legacy costs (pension and medical liabilities).

Given that most of the group's rated debt, excluding bank debt
at Ispat Sidbec, is guaranteed by Ispat and includes cross-
default provisions, the default probability of the different
legal entities is interlinked.

Consequently, Standard & Poor's analysis for the ratings on
Ispat and its subsidiaries reflects an element of the weakest
link approach. It is Ispat's policy to apply free cash flow
generation at the subsidiary level for debt amortization at the
local level.

These factors more than offset the benefit to the company from
its meaningful backward integration, geographical
diversification, and scale advantages (e.g. in sourcing raw
materials) of the Ispat and LNM groups.

ANALYSTS:  Tommy Trask, New York
           Tel: (1) 212-438-3023
           E-mail: tommy_trask@standardandpoors.com

           Olivier Beroud, London
           Tel: (44) 20-7176-3508
           E-mail: olivier_beroud@standardandpoors.com

           CorporateFinanceEurope@standardandpoors.com



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

BWIA: Minister Accuses Company of Over Spending
-----------------------------------------------
Trinidad's Trade and Industry Minister Kenneth Valley said last
week that national airline BWIA was spending more than it was
earning for way too long, The Trinidad Guardian relates. BWIA
ended 2003 with a loss TTD138.2 million.

"For too long at BWIA they tried to cut below the break even.
When you cut below the break even you increase loss," Mr. Valley
said.

In late July, the Government moved to take control of the
airline after a rights issue of BWIA shares to raise US$40
million (TTD256 million) was snubbed by shareholders. The rights
issue raised just US$500,000.

Just recently, Mr. Valley said BWIA needs another US$20 million
(TTD126 million) to stay alive.

Also last week, Lawrence Duprey said he is still chairman of
BWIA but, if asked to step down, he would have no problems doing
so.

Duprey's made his comments after Valley advised major
shareholders of a meeting with Government to decide on control
of the cash-strapped airline.

Duprey said it was a good idea for Government to take control of
the airline at this juncture in the industry, especially after
it was so hard hit by the events of 9/11.

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)



                            ***********


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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