TCRLA_Public/040820.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, August 20, 2004, Vol. 5, Issue 165

                            Headlines

A R G E N T I N A

AGUAS ARGENTINAS: Suez Looking Into Possible Stake Sale
ARTES GRAFICAS: General Report Up for Submission
AUTODROMO S.A.: Verification Deadline Approaches
BARONIO S.A.: Begins Liquidation Proceedings
CABLEVISION: Not in Talks With Telmex

CATAG S.R.L.: Reports Submission Deadline Finalized
COMPANIA LACTEA: Verification Deadline Approaches
DAKPLAST S.A.: Court Converts Bankruptcy to Reorganization
DIAGNOSTICOS GAMMA: Trustee to Submit Individual Reports Monday
ECO DESIGN: Liquidates Assets to Pay Debts

FRIO NORTE: Trustee Prepares Individual Reports for Submission
GALARMAX S.A.: Begins Bankruptcy Proceedings
MASTELLONE HERMANOS: Extends Debt Offering Once Again
NICOL S.A.: Seeks to Restructure Debt
SAN ANTONIO PRODUCTOS: Enters Bankruptcy on Court Orders

THE FOX GROUP: Claims Check Ends Monday
TOTAL INDUSTRIAS: Court Orders Liquidation


B E R M U D A

GLOBAL CROSSING: Connects ITAM to the World With IP Network


B R A Z I L

ELETROPAULO METROPOLITANA: Steps Up Efforts to Stem Losses
MRS LOGISTICA: Fitch Affirms, Withdraws National Scale Ratings
PARMALAT: Bondi Files Suit Against Ex-Auditors


M E X I C O

AEROMEXICO: Grants Ground Personnel 5% Pay Hike
EMPRESAS ICA: Monex Upbeat on Year-End Results
GRUPO IUSACELL: Nears Debt Restructuring
SATMEX: Needs Fresh Funding
VITRO: Moody's Cuts Ratings on Prolonged Economic Slump


N I C A R A G U A

PARMALAT NICARAGUA: Parent Vows to Fight Intervention


P E R U

ROYAL SHELL: Sells Local Assets to Chile's ENAP


V E N E Z U E L A

PDVSA: Should Focus on Capital Investments Says Fitch

     -  -  -  -  -  -  -  -

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

AGUAS ARGENTINAS: Suez Looking Into Possible Stake Sale
-------------------------------------------------------
Analysts at Ibersecurities mentioned in a research note that
French utility Suez (SZE) is reportedly planning to sell its
39.93% stake in Aguas Argentinas, along with its stakes in Aguas
Cordobesas and Aguas Codilleras, News Ratings reports.

Press reports have indicated that Aguas De Barcelona, which
currently holds a 25% stake in Aguas Argentinas, may buy these
stakes.

However, the analysts believe that there is a low probability of
Aguas De Barcelona buying these stakes, given the limited
visibility into a potential near-term improvement in the
Argentinean economic environment.

Suez has suspended its claim against Argentina in ICSID, the
World Bank's arbitration tribunal, as part of an interim accord
with the government. But it hasn't dropped its case, which seeks
redress for a 2002 decree that converted all utility rates into
devalued pesos and froze them.


ARTES GRAFICAS: General Report Up for Submission
------------------------------------------------
Buenos Aires-based Artes Graficas Yerbal S.A. nears the
completion of its restructuring with the submission of the
case's general report on Monday, August 23, 2004.

The general report, to be provided by trustee David Leonardo
Schvarztein, provides the court with an audit of the company's
accounting and business records. The report also details
relevant events during the bankruptcy process.

Court No. 11 of Buenos Aires' Civil and Commercial Tribunal has
jurisdiction over this case.

CONTACT:  Mr. David Leonardo Schvarztein, Trustee
          Uruguay 390
          Buenos Aires


AUTODROMO S.A.: Verification Deadline Approaches
------------------------------------------------
Trustee Ruben Acosta, will examine and authenticate creditors'
claims for the Autodromo S.A. bankruptcy case until Monday,
August 23, 2004. The verification is conducted to determine the
nature and amount of the Company's debts.

Creditors must have their claims authenticated by the said date
in order to qualify for the payments that will be made after the
Company's assets are liquidated.

Judge Villar serving for Court No. 13 of Buenos Aires Civil and
Commercial Tribunal handles the Company's liquidation.

CONTACT: Autodromo S.A.
         Cuenca 2120
         Buenos Aires

         Mr. Ruben Acosta, Trustee
         Tucuman 1545
         Buenos Aires


BARONIO S.A.: Begins Liquidation Proceedings
--------------------------------------------
La Carlota-based Company Baronio S.A. will begin liquidating its
assets after the local Civil and Commercial Tribunal declared
the company bankrupt. Infobae reveals that the bankruptcy
process will commence under the supervision of court-appointed
trustee, Mr. Felix Epifanio Jimenez. He is scheduled to present
a general report on the case on September 16, 2004.

CONTACT: Baronio S.A.
         Belgrano 827
         Arias (Cordoba)


         Mr. Felix Epifanio Jimenez, Trustee
         Dea Funes 546
         La Carlota (Cordoba)


CABLEVISION: Not in Talks With Telmex
-------------------------------------
Argentine cable operator Cablevision SA (CBV.YY) said Wednesday
it is not in talks for a possible sale to Mexican phone company
Telefonos de Mexico SA (Telmex), relates Dow Jones.

Telmex has extensive telecommunications infrastructure in
Argentina but lacks cable facilities to make the last mile
connection into the country's households. Telecommunications
consultant Enrique Carrier suggested earlier that Cablevision is
Telmex's best option if it is looking for such a facility.

Local daily El Cronista earlier cited unnamed sources as saying
that Telmex's Carlos Slim is already in talks to buy into
Cablevision. The report added that Mr. Slim could take in US$400
million of Cablevision's US$725 million debt as part of the
deal.

But in a statement filed to the Buenos Aires stock exchange,
Cablevision said its U.S.-based owners, Liberty Media Corp. (L)
and private equity fund Hicks Muse Tate & Furst (HIX.XX), "find
themselves obligated to deny media reports that speak of
negotiations in progress with Telmex for the sale of
Cablevision."

CONTACT:  Santiago Pena
          (5411) 4778-6520
          E-mail: spena@cablevision.com.ar

          Martin Pigretti
          (5411) 4778-6546
          E-mail: mpigretti@cablevision.com.ar

Web site: http://www.cablevision.com.ar


CATAG S.R.L.: Reports Submission Deadline Finalized
---------------------------------------------------
Mr. Ruben Daniel Sarafian, the trustee supervising the
liquidation of Catag S.R.L., is scheduled to submit individual
reports from the case on November 16, 2004, says Infobae. After
the individual reports, the trustee is also required by the
court to present a general report of the case on December 29,
2004.

Judge Herrera serving for Court No. 3 of Buenos Aires' Civil and
Commercial Tribunal issued the bankruptcy order upon the request
of Banco Rio de la Plata S.A., to whom the Company failed to pay
debts amounting to US$17,044.28.

CONTACT: CONTACT: Catag S.R.L.
         Avenida Cordoba 1523
         Buenos Aires

         Mr. Ruben Sarafin, Trustee
         Tucuman 1657
         Buenos Aires


COMPANIA LACTEA: Verification Deadline Approaches
-------------------------------------------------
Creditors of Compania Lactea Argentina S.A. must submit proof of
the company's indebtedness before the verification period closes
on Monday, August 23, 2004. All claims should be forwarded to
trustee Ernesto Iob for verification.

Obra Social del Personal de la Industria Lactea asked for the
Company's liquidation due to unpaid debts totaling US$13,449.05.

Judge Ottolenghi of Buenos Aires Court No. 4 has jurisdiction
over the Company's liquidation.

CONTACT: Compania Lactea Argentina SA
         Monroe 1199
         Buenos Aires

         Mr. Ernesto Iob, Trustee
         Teniente General Juan Domingo Peron 1186
         Buenos Aires


DAKPLAST S.A.: Court Converts Bankruptcy to Reorganization
----------------------------------------------------------
Buenos Aires-based Dakplast S.A., which was undergoing
bankruptcy, entered reorganization on orders from Court No. 9 of
Buenos Aires' Civil and Commercial Tribunal.

Infobae reports that the court assigned accounting firm "Estudio
Moyano, Guelman y Asociados" as trustee for the case.

The credit verification process will be done "por via
incidental", says the report, adding that the court ordered the
trustee to submit the general report on December 15, 2004.

CONTACT: Estudio Moyano, Guelman y Asociados - Trustee
         Riobamba 1234
         Buenos Aires


DIAGNOSTICOS GAMMA: Trustee to Submit Individual Reports Monday
---------------------------------------------------------------
Mr. Carlos Pisa Barros Garcia, acting as trustee for the
Diagnosticos Gamma S.A. bankruptcy, is scheduled to submit
individual reports from the case on Monday, August 23, 2004. The
individual reports are culled from creditors' claims forwarded
during the verification period. The trustee is also required to
submit a general report on October 4, 2004.

Court No. 25 of the city's Civil and Commercial Tribunal has
jurisdiction over this case.

CONTACT:  Mr. Carlos Pisa Barros Garcia, Trustee
          Av Corrientes 3150
          Buenos Aires


ECO DESIGN: Liquidates Assets to Pay Debts
------------------------------------------
Buenos Aires-based Eco Design S.A. will begin liquidating its
assets following the bankruptcy pronouncement issued by Court
No. 13 of the City's Civil and Commercial Tribunal.

Local news source Infobae reports that the ruling places the
company under the supervision of court-appointed trustee, Mr.
Ricardo Jorge Randrup. The trustee will verify creditors' proofs
of claims until September 24, 2004.

Clerk No. 25 assists the court on this case, which will end with
the disposal company assets in favor of its creditors.

CONTACT: Mr. Ricardo Jorge Randrup, Trustee
         Avda Cordoba 1351
         Buenos Aires


FRIO NORTE: Trustee Prepares Individual Reports for Submission
--------------------------------------------------------------
Court-appointed trustee Alejandro Jose Karanicolas will submit
individual reports from the Frio Norte S.R.L. bankruptcy case on
Monday, August 23, 2004. The court will use these documents to
finalize the list of creditors eligible for post-liquidation
payments.

Court No. 2 of Salta's Civil and Commercial Tribunal has
jurisdiction over this case.

CONTACT: Frio Norte S.R.L.
         Aniceto Latorre 699
         Salta

         Mr. Alejandro Jose Karanicolas, Trustee
         Avenida Belgrano 1277
         Salta


GALARMAX S.A.: Begins Bankruptcy Proceedings
--------------------------------------------
Galarmax S.A. of Buenos Aires enters bankruptcy protection after
Court No. 13 of the city's Civil and Commercial Tribunal ordered
the Company's liquidation. The order effectively transfers
control of the Company's assets to the court-appointed trustee
who will supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Oscar Leonardo
Epstein as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on September 22,
2004.

Clerk No. 25 assists the court on this case.

CONTACT: Mr. Oscar Leonardo Epstein, Trustee
         Viamonte 1620
         Buenos Aires


MASTELLONE HERMANOS: Extends Debt Offering Once Again
-----------------------------------------------------
Mastellone Hermanos, the Argentine company that owns the dairy
product brand La Serenisima, announced Wednesday that it has
received tenders from all holders of US$104.1 million in
commercial bank debt, relates Dow Jones.

However, the company has again extended its offer to restructure
US$225 million in defaulted notes after again failing to receive
sufficient tenders for an offering that was to expire Friday.

The offering will now expire at 5 p.m. EDT on Aug. 30 in a bid
to get the outstanding noteholders to sign on.

Mastellone Hermanos revealed that it has now received tenders
for about US$27.7 million in principal from noteholders. Of
those, holders of some US$17.5 million in principal have chosen
to receive new 7% collateralized senior notes due 2014, while
the remainder have elected a cash payment option worth 60% of
their original holding.

Meanwhile, holders of some US$39 million of bank debt have
elected the cash option, while others holding about US$1.1
million in bank debt chose the 2014 fixed-rate notes. Holders of
the remaining US$64.3 million in bank debt have chosen a third
option, a floating-rate note that matures in 2011.

Under an earlier alteration to the offering, creditors who
accept the early tender offer could choose between dollars,
euros or Argentine pesos for the three swap options.

CONTACT:  Mr. Pascual Mastellone, President
          MASTELLONE HERMANOS S.A.
          Av. Leandro N. Alem 720
          (1001) - Buenos Aires
          Argentina
          Phone: 54 1 318-5000
          Fax: 54 1 313-6822


NICOL S.A.: Seeks to Restructure Debt
-------------------------------------
Creditors of insolvent construction company Nicol S.A. are
required to present proof of their claims to the trustee, Mr.
Jorge Wilcke, before the verification period closes on October
1, 2004.

The trustee will present the result of the verifications as
individual reports on November 15, 2004. He will also submit a
general report, containing a summary of the company's financial
status as well as relevant events pertaining to the bankruptcy,
on December 29, 2004.

On August 2 next year, the company intends to present a
completed settlement plan for the approval of its creditors.

CONTACT: Nicol S.A.
         Moreno 634
         Buenos Aires

         Mr. Jorge Wilcke, Trustee
         Teodorp Roosevelt 1877
         Buenos Aires


SAN ANTONIO PRODUCTOS: Enters Bankruptcy on Court Orders
--------------------------------------------------------
Court No. 1 of Villa Maria's Civil and Commercial Tribunal will
handle the liquidation of local Company San Antonio Productos
Lacteos S.R.L., says Infobae. The court issued the bankruptcy
order after the Company defaulted on its debt obligations.

CONTACT: San Antonio Productos Lacteos S.R.L.
         Sargento Cabral 649
         Villa Maria (Cordoba)


THE FOX GROUP: Claims Check Ends Monday
---------------------------------------
The verification of claims for The Fox Group S.A. bankruptcy
case will close on Monday, August 23, 2004. Creditors should
submit proof of the Company's indebtedness to Ms. Mirta Calfun
de Bendersky, the trustee, before the deadline.

The Company's failure to pay US$936.80 in debt to La Caja
Aseguradora de Riesgos de Seguros ART S.A. paved the way for the
bankruptcy.

Judge Villanueva of Buenos Aires Court No. 23, assisted by Clerk
No. 45 Dr. Timpanelli, has jurisdiction over this case.

CONTACT: The Fox Group S.A.
         Viamonte 1181
         Buenos Aires

         Ms. Mirta Calfun de Bendersky, Trustee
         Humahuaca 4156
         Buenos Aires


TOTAL INDUSTRIAS: Court Orders Liquidation
------------------------------------------
Total Industrias Graficas S.A., a company operating in Buenos
Aires, prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 11 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. Jose Luis Abuchdid
as trustee. He will be reviewing creditors' proofs of claims
until September 30, 2004. The verified claims will serve as
basis for the individual reports to be presented for court
approval on November 12, 2004. Afterwards, the trustee will also
submit a general report of the case on December 28, 2004.

Clerk No. 21 assists the court on this case, which will end with
the disposal of the company's assets to repay its liabilities.

CONTACT: Mr. Jose Luis Abuchdid, Trustee
         Tacuari 119
         Buenos Aires



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

GLOBAL CROSSING: Connects ITAM to the World With IP Network
-----------------------------------------------------------
Global Crossing (NASDAQ: GLBCE) announced Wednesday a multi-year
agreement to provide one of Mexico's most prestigious
universities and technological institutes, the Instituto
Tecnologico Autonomo de Mexico (ITAM), with Dedicated Internet
Access (DIA) services. These services enable ITAM's faculty,
administrative personnel and students, who jointly represent
close to 7,000 users, to connect and collaborate directly with
other education and research institutions worldwide.

"Global Crossing is committed to expanding the reach of
educational and research networks in Latin America and around
the world through our world-class IP-based network," said Jose
Antonio Rˇos, Global Crossing's chief administrative officer and
international president. "We are delighted to be working with
such a prestigious and highly regarded university as ITAM."

Global Crossing's IP network was selected by a panel of PhD's
and experts in telecommunications because of Global Crossing's
complete suite of solutions, GigE bandwidth availability, direct
connectivity, pricing options, flexible technical solutions, and
commitment to research and education.

"Global Crossing's impressive offering for research and
education networks provides us with an exceptional array of
options," said Arturo Fern ndez Perez, president of ITAM.
"Global Crossing offered the best solution, and its state-of-
the-art technology will strengthen ITAM's positioning as one of
the leading universities in Mexico."

ITAM was founded on March 29, 1946, by the Asociacion Mexicana
de Cultura (Mexican Cultural Association), a distinguished group
of bankers, industrialists and businessmen that worked to make
higher education the driving force behind industrial and
economic change in Mexico. Since its inception, ITAM has
extended its infrastructure and services and increased the
variety of academic programs it offers, including economics,
business administration, political science, applied mathematics,
law, accounting and financial strategy, international relations,
actuarial science, computer science, telematics engineering and
joint programs. In 1991, ITAM inaugurated its Centro de
Investigacion y Estudios de Posgrado, dedicated to research,
graduate studies and continuing education.

The companies' agreement builds on Global Crossing's growing
status as the network provider of choice for academic and
research networks around the world. Last year Global Crossing
announced agreements to provide International Private Line (IPL)
and Dedicated Internet Access (DIA) services to Florida
International University (FIU) and the Brazilian National
Research and Education Network (RNP). The company has also been
commissioned for multi-Gigabit IP Transit Service to DANTE --
the organization responsible for managing the world's largest
academic and research network, GEANT. This 10-Gbps European IP
backbone provides international connectivity to more than 3,500
research and educational establishments in more than 30
countries around Europe. In addition, Global Crossing has a
three-year agreement with Funda‡ao de Amparo … Pesquisa do
Estado de Sao Paulo (FAPESP), the second largest academic
research institution in Brazil, to provide rapid data
transmission between universities and research centers in the
United States and Brazil.

As a Global Tier 1 provider, Global Crossing is connected with
every major Tier 1 ISP in the world, reaching 100 percent of the
Internet. Global Crossing's Dedicated Internet Access service
offers Internet connectivity to all worldwide domains using a
meshed network that incorporates true global IP over
Multiprotocol Label Switching-traffic engineering (MPLS-te) as a
backbone transport technology, providing the ultimate in network
resiliency and flexibility. Global Crossing provides customers
with always on, direct high-speed connectivity to the Internet
at speeds ranging from 56 Kbps/64 Kbps to OC48/STM16 and Fast
Ethernet and Gigabit Ethernet on a global basis. DIA service can
also be accessed via a Frame Relay or ATM network using FR to IP
or ATM to IP interworking.

Global Crossing's significant Mexican operations are
headquartered in Mexico City, and the company has a redundant,
terrestrial network connecting Mexico City, Monterrey,
Guadalajara and Mazatlan. Through its submarine fiber-optic
cable network, Global Crossing connects its facilities in
Tijuana with the rest of its global network, delivering services
to more than 500 major cities in 50 countries around the world.

ABOUT ITAM

The Instituto Tecnologico Autonomo de Mexico (ITAM) is a
private, non-denominational, non-profit Mexican institution of
higher education. Its mission is to contribute to the
comprehensive education of students and to the development of a
more free, more just and more prosperous society. In order to
carry out its teaching and research objectives, ITAM aspires to
the highest levels of academic excellence, while supporting a
diversity of ideas and a community characterized by respect for
ethnic, cultural and religious differences.

ABOUT GLOBAL CROSSING

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

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

CONTACT: Global Crossing
         Press Contacts
         Ms. Becky Yeamans
         + 1 973-937-0155
         PR@globalcrossing.com

         Ms. Fernanda Marques
         + 55 21-3820-4712
         LatAmPR@globalcrossing.com

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

         Analysts/Investors Contact

         Mr. Mitch Burd
         +1 800-836-0342
         glbc@globalcrossing.com

         Web Site: www.globalcrossing.com



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

ELETROPAULO METROPOLITANA: Steps Up Efforts to Stem Losses
----------------------------------------------------------
As part of an effort to curtail power theft, Brazilian power
distributor Eletropaulo Metropolitana launched a publicity
campaign and hired 170 new electricians, reports Business News
Americas.

The utility said the new staff will join the current technicians
who patrol the streets of the 24 towns, where power theft is
rampant.

The company added that the BRL700,000 publicity campaign will be
aired on TV and radios and will use leaflets and street
advertising to warn consumers that power theft is a crime.

Eletropaulo, controlled by US power company AES Corp (NYSE:AES),
has reported BRL600 million (US$201mn) in annual losses due to
power theft.

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


MRS LOGISTICA: Fitch Affirms, Withdraws National Scale Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the long-term national
scale ratings 'A-(bra)' and 'A(bra)' of MRS Logistica S.A.
(MRS). The 'A(bra)' rating applies to the company's second
debenture issuance in the amount of BRL700 million. Fitch will
no long monitor the company's issuances on the national scale.

Fitch will continue to monitor MRS' international scale ratings.
Fitch currently maintains local and foreign currency ratings for
MRS of 'BB' and 'B+', respectively, and rates the company's
outstanding senior secured notes of approximately US$100 million
due 2005 'B+'. All ratings have a Stable Rating Outlook.

CONTACT: Ricardo Carvalho, +55-21-4503-2600, Rio de Janeiro
         Anita Saha, CFA +1-312-368-3179, Chicago
         Joe Bormann, CFA +1-312-368-3349, Chicago

MEDIA RELATIONS: Jaqueline Ramos de Carvalho, +55-21-4503-2623,
Rio de Janeiro


PARMALAT: Bondi Files Suit Against Ex-Auditors
----------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates that Dr. Enrico Bondi, Parmalat's Extraordinary
Commissioner, filed an action Wednesday in the Circuit Court of
Cook County, Illinois ("the action") to recover damages from
Parmalat's former outside auditors Grant Thornton International
and Deloitte Touche Tohmatsu and their U.S. and Italian
affiliates.

The action is part of a process through which the Extraordinary
Commissioner, following the approval of Parmalat's Industrial
and Financial Restructuring Plan, will seek recovery from third
parties believed to have played a role in Parmalat's collapse.

Parmalat's Industrial and Financial Restructuring Plan
contemplates the distribution to its future shareholders of an
amount equal to 50% of Parmalat's distributable earnings arising
from the next 15 years' annual results, including any eventual
proceeds derived from revocatory actions or actions for damages.

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

         Parmalat Partecip. Do Brasil Ltda
         Rua Gomes de Carvalho
         1629 - CEP 04547-005
         Sao Paulo, SP.



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

AEROMEXICO: Grants Ground Personnel 5% Pay Hike
-----------------------------------------------
Mexican airline company Aeromexico and its union members on
Wednesday reached an agreement over salary increases.

According to EFE, both sides agreed on a 5% pay increase - 3%
increase in salary and a 2% increase in benefits - for ground
personnel. The increase was made official with the Labor
Ministry and will come into effect in the 12 months following
Oct. 13, 2004.

Mr. Tomas del Toro, the head of the 2,250 employees grouped
within the Airline Service Workers union, said he was satisfied
with the agreement.


EMPRESAS ICA: Monex Upbeat on Year-End Results
----------------------------------------------
Mexican financial group Monex advised investors to buy shares in
local engineering and construction company Empresas ICA (NYSE,
BMV: ICA), reports Business News Americas.

The group believes the company will finish this year with "very
good" results. Net sales are expected to total MXN12.46 billion
(US$1.1bn) this year, which would represent a 25.1% increase
over 2003, while EBITDA is forecast to grow 131% to MXN1.43
billion, according to Monex estimates.

Nevertheless, the group expects ICA to post a MXN76.2 million
loss this year compared with a MXN1.115 billion loss in 2003.

Earlier this month, Standard & Poor's raised its long-term local
and foreign currency corporate rating for ICA to 'B-' from 'CCC'
after reviewing the company's operating and financial prospects.

CONTACT:  Empresas ICA Sociedad Controladora SA de CV
          Mineria No. 145, Edificio Central
          11800 Mexico, D.F.,
          Phone: (212) 688-6840
          Email: jose.guerrero@ica.com.mx
          Web Site: http://www.ica.com.mx/


GRUPO IUSACELL: Nears Debt Restructuring
----------------------------------------
Talk is rife in the market that Grupo Iusacell, Mexico's No. 3
cellular firm, is nearing a much-needed debt restructuring.

Citing a source familiar with Iusacell and debt holders, Reuters
reports that the company "is engaged in substantive negotiations
with creditors," although the timing of any possible agreement
is uncertain.

Iusacell, owned by retail and media tycoon Ricardo Salinas, has
defaulted on debt obligations over the past year, sparking legal
battles with some of its creditors. The company has not been
able to renegotiate its debt pile of about US$800 million.

Earlier this year, Iusacell hired New York-based financial
advisory firm Hill Street Capital to help it with debt
negotiations. Representatives of the boutique firm met with
Iusacell in Mexico this week.

CONTACTS:  Ricardo Salinas Pliego, Chairman
           Gustavo Guzman, CEO, Director
           GRUPO IUSACELL SA DE CV
           Prolongacion Paseo, De La Reforma 1236
           Mexico, D.F.,  05348
           Phone: (525) 109-4400
           Web Site: http://www.iusacell.com.mx


SATMEX: Needs Fresh Funding
---------------------------
Satmex remains confident that it can hold the specter of
bankruptcy at bay as it continues to negotiate for the
restructuring of its debt while courting new investors to tide
the company over its money woes.

El Financiero says that the embattled company needs US$40 - 50
million for insurance premium on the launch of its latest
venture, Satmex 6. The Company sees the satellite's successful
launch as a crucial step towards regaining financial health.

General Director Lauro Gonzalez told the paper that the Company
is currently in talks with prospective investors. Unconfirmed
reports say that the Constellation Group and Carlos Slim's
Telmex are separately interested in placing a stake on the
Company. Constellation is rumored to have offered US$250 million
to Satmex and absorb its debt with the government.

Satmex's payment for a US$205 million syndicated loan has been
overdue since June. Also, the Company faces US$320 million worth
of debit bonds maturing in November and a US$190 million loan
from the Mexican government due in December.


VITRO: Moody's Cuts Ratings on Prolonged Economic Slump
-------------------------------------------------------
Moody's Investors Service downgraded Wednesday the ratings for
Vitro, S.A. de C.V. Rating affected are: (to/from)

- US$225 million 11.750% senior note     Caa1      B2
    due 2013

- US$163 million 11.375% senior note     Caa1      B2
    due 2007 (original face value was
    $250 million before buy backs)

- Senior implied                          B2       B1

- Senior unsecured issuer rating         Caa1      B2
    (non-guaranteed exposure) lowered

The ratings outlook is changed to stable from negative for prior
ratings.

The downgrades, says Moody's, reflects the cumulative effects on
Vitro's financial profile of prolonged economic depression
combined with high natural gas costs.

Furthermore, the downgrades incorporate the likely continued
pressure on consolidated operating performance from macro-
economic uncertainties.

Vitro, S.A. de C.V., through its subsidiaries, is a leading
global producer of glass serving multiple product markets
including construction and automotive lass; fiberglass; food and
beverage, wine, liquor, cosmetics and pharmaceutical glass
containers; and glassware for commercial, industrial and retail
uses.

CONTACT: Vitro SA de CV
         Col. Valle del Campestre,66265
         San Pedro Garza Garcia
         Nuevo Leon, 66250
         Phone: (528) 329-1210
         Fax: (528) 335-7210
         Email: bemartinez@vitro.com

         Web Site: www.vitro.com



=================
N I C A R A G U A
=================

PARMALAT NICARAGUA: Parent Vows to Fight Intervention
-----------------------------------------------------
Parmalat Finanziaria SpA vows to make use of "all the legal
actions and resources in order to revoke the recent
intervention" of its Nicaragua unit.

In a press release issued Tuesday in Managua, the group called
banker Haroldo Montealegre to resign to the position of receiver
in the company, because the action "does not have legal
justification."

Montealegre is a former banker that claims around US$5 million
from Banco de Credito Centroamericano (Bancentro), which in the
beginning of the year rescued Parmalat from bankruptcy giving it
a loan for this amount.

The banker took control of Parmalat through a court order so as
to secure the payment of the US$5 million Bancentro owes him.

Nicaragua's Minister of Industry and Commerce, Mario Arana, said
Tuesday that the government "will use all the necessary
resources, among permitted limits, if Parmalat or the dairy
sector resulted damaged."

The National Council of Economic and Social Planning criticized
the embargo ruling in favor of Montealegre and affirmed these
are "arbitrary rulings and resolutions that are contrary to
law."

The entity called President Enrique Bolanos to use his power as
"chief of State and government and head of the armed forces, to
"reform the Judicial Power."



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

ROYAL SHELL: Sells Local Assets to Chile's ENAP
-----------------------------------------------
Royal Dutch/Shell Group has formally agreed to sell its fuels
businesses in Peru to Chile's Empresa Nacional del Petroleo
(ENAP) for an undisclosed value.

In a statement, the company said the decision came "after a
thorough and deep evaluation of its portfolio in Peru."

The sale includes a service station network and industrial and
marine fuels businesses.

In July, Shell Peru SA announced it was selling its Peruvian
retail, commercial and marine businesses.

Shell said it will continue to keep operating its lubricants
business under the name Shell Lubricantes del Peru SA.



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

PDVSA: Should Focus on Capital Investments Says Fitch
-----------------------------------------------------
State-owned oil company PDVSA needs continued and sustained
investments to maintain current production levels and achieve
its growth prospects, says analysts from Fitch Ratings in a
Business News Americas Report.

However, lead PDVSA analyst Jason Todd said that the Company
seems to be behind schedule on its US$6 billion investment plan
intended for refineries and production increases in 2004.

The analyst revealed that PDVSA's non-commercial expenses, such
as social spending projects, has raised doubt on the Company's
ability to achieve its capital investment targets. A failure on
this aspect could lead further lower production, Mr. Todd adds.

PDVSA has spent US$1.2 billion in the year through June for the
government's social programs. Mr. Morgan Harting, another
analyst from Fitch, estimates that the amount could go as high
as US$2 billion this year.

In addition, PDVSA carries a US$4 billion debt burden. Fitch
says that the oil company will have to appropriate US$400 - 500
million for debt payments for the next few years.



                            ***********


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

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