TCRLA_Public/040824.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 24, 2004, Vol. 5, Issue 167

                            Headlines

A R G E N T I N A

CONSULTORA TECNICA: Court To Finalize List of Creditors
CLINICA PRIVADA: Gears for Reorganization
EDENOR: Rejects Violent Attacks From Union Members
FRIGORIFICO BLOCK: Trustee to Submit General Report Today
GESAL: Individual Reports Due Today

HELP S.R.L.: Court Orders Liquidation
LOCUCENTER S.A.: Liquidating Assets to Pay Debts
MUSIMUNDO.COM: Reorganization Concluded
PARMALAT ARGENTINA: Bidders' Interest Starts Waning
PLAN MEDICO: Sets to Liquidate Assets

TRIOMPHE S.A.: Proceeds With Reorganization


B A R B A D O S

CABLE & WIRELESS: Layoffs Over, Says CEO


B R A Z I L

BANCO VOTORANTIM: Starts $100B Eurobond Issue
COSIPA: Issues Audit Statement
EMBRATEL: Telmex Registers Tender Offer for Embrapar Shares
HSBC BANK BRASIL: Ratings Unaffected by Acquisition
HSBC BANK BRASIL: To Acquire Indusval's Consumer Finance Ops

METALLURG INC.: S&P Raises Ratings to `CCC' From `D'
TELEMAR: To Adjust Tariffs By September
TELEMAR: Cuts Interest on Loan Transactions
VARIG: Government Not Mulling Capital Injection


C H I L E

ENERSIS: Fitch Assigns 'BBB-' To SEC Registered Bonds


G U A T E M A L A

MILLICOM INTERNATIONAL: Offers GSM Service in Central America


M E X I C O

GRUPO IUSACELL: Inks 10-Year Contract With Unefon
VOLKSWAGEN: Strike Ends As Workers Accept Wage Proposal


T R I N I D A D   &   T O B A G O

NWRHA: Grants 15% Pay Hike to Employees


V E N E Z U E L A

PDVSA: Delaying Investments
SIDOR: Diaco Stockholders Reject Purchase Offer

     -  -  -  -  -  -  -  -

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

CONSULTORA TECNICA: Court To Finalize List of Creditors
-------------------------------------------------------
Court No. 20 of Buenos Aires' Civil and Commercial Tribunal will
finalize the list of Consultora Tecnica S.R.L. creditors
eligible for post-liquidation payments after reviewing all
individual reports from the case. Mr. Julio Coy, the trustee, is
scheduled to submit the individual reports today.

Clerk No. 20 assists the court on this case.

CONTACT: Mr. Julio Coy, Trustee
         Piedras 181
         Buenos Aires


CLINICA PRIVADA: Gears for Reorganization
-----------------------------------------
Court No. 14 of La Plata's Civil and Commercial Tribunal issued
a resolution opening the reorganization of Clinica Privada Dr. J
J Vaccarini S.R.L., says Infobae.

This announcement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. The reorganization further allows the Company to
retain control of its assets subject to certain conditions
imposed by Argentine law and the oversight of the court
appointed trustee.

Accounting firm "Estudio Genoro y Asociados" will serve as
trustee during the course of the reorganization. The firm will
be validating creditors' proofs of claims until November 12,
2004. Next, the results of the verification will be presented in
court as individual reports on February 18, 2005.

The trustee is also required to give the court a general report
of the case on April 12, 2005. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

The company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on June
3, 2005.

CONTACT: Clinica Privada Dr. J J Vaccarini S.R.L.
         Calle 80 Nro. 570
         La Plata

         Estudio Genoro y Asociados - Trustee
         Calle 80 Nro. 570
         La Plata


EDENOR: Rejects Violent Attacks From Union Members
--------------------------------------------------
Argentine power distributor Edenor SA (DNOR.BA) strongly
rejected an attack lodged by members of Argentina's electricity
workers union on Thursday.

Dow Jones reports that workers threw rocks and Molotov cocktails
at Edenor's administrative headquarters, breaking windows on
three floors and destroying the ground-level customer service
center.

In a statement, the company said: "It expresses its rejection of
these violent actions, taking into account that it was found in
the process of dialogue and negotiations with the directors of
the union at Labor Ministry headquarters."

Power distributor representatives and union leaders are in talks
over new contracts and have asked the Labor Ministry to help
mediate the process. The three groups met last week and
scheduled to meet again today, Tuesday.

Edenor, which is owned by Electricite de France SA (EDF.YY), has
the power distribution concession for half of Buenos Aires city.


FRIGORIFICO BLOCK: Trustee to Submit General Report Today
---------------------------------------------------------
Ms. Maria Elena Mercante, the trustee handling the liquidation
of Frigorifico Block S.A., submits the general report of the
case today, August 24, 2004. The report provides the court with
an audit of the Company's accounting and business records.

Court No. 20 of Buenos Aires' Civil and Commercial Tribunal has
jurisdiction over this case, which will end with the sale of the
Company's assets to repay its debt obligations.

CONTACT: Frigorifico Block S.A.
         Murguiondo 1846
         Buenos Aires

         Ms. Maria Elena Mercante
         Uruguay 772
         Buenos Aires


GESAL: Individual Reports Due Today
-----------------------------------
Individual reports from the Gesal S.A. bankruptcy case will be
submitted today at Court No. 1 of Villa Mercedes' Civil and
Commercial Tribunal.

Court-appointed trustee Ms. Adriana Noemi Piccolo, will prepare
these documents from the creditors' claims submitted during the
credit verification period. The court will use the individual
reports to come up with a list of creditors eligible to receiver
post-liquidation payments.

CONTACT: Ms. Adriana Noemi Piccolo, Trustee
         Hipolito Irigoyen 215
         Villa Mercedes (San Luis)


HELP S.R.L.: Court Orders Liquidation
-------------------------------------
Court No. 18 of Buenos Aires' Civil and Commercial Tribunal
ordered the liquidation of Help S.R.L. after the company
defaulted on its debt obligations, Infobae reveals. The
pronouncement will effectively place the company's affairs as
well as its assets under the control of Mr. Walter Arturo
Calleja, the court-appointed trustee.

Mr. Calleja 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. 35 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Mr. Walter Arturo Calleja, Trustee
         Lambare 1140
         Buenos Aires


LOCUCENTER S.A.: Liquidating Assets to Pay Debts
-------------------------------------------------
Locucenter S.A., a Buenos Aires-based phone booth installation
firm, prepares to wind-up its operation after receiving a
liquidation order from Court No. 8 of the city's Civil and
Commercial Tribunal, relates Clarin. The Company's assets will
be liquidated in order to repay its debt obligations.

CONTACT: Locucenter S.A.
         Avenida Jujuy 275
         Buenos Aires


MUSIMUNDO.COM: Reorganization Concluded
---------------------------------------
The settlement plan proposed by Musimundo.com S.A. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by the court
and will now be implemented by the company.      

CONTACT: Musimundo.com S.A.
         Buenos Aires
         Tel: (5411) 4555-5555
         Web Site: www.musimundo.com


PARMALAT ARGENTINA: Bidders' Interest Starts Waning
---------------------------------------------------
The sale of the Argentine assets of insolvent Italian dairy
company Parmalat has proven to be much more complicated than
previously assumed, El Cronista suggested.

When the sale was announced in May, several investors came out
to express their desire to place a bid. However, a high asking
price and the company's high debt have seemed to dampen the
interest of some potential investors.

Now, only five bidders remain in the list of potential
acquirers. These are investment funds Pegasus Capital, AIG,
Dolphin Fund and businessmen Jorge Cinque and Sergio Teselli.

Of these bidders, Pegasus Capital and AIG seem to be the
companies with the highest chances to close a deal.

Parmalat has set the price of its Argentinean assets at US$20
million plus debt, which is estimated at more than US$70
million.


PLAN MEDICO: Sets to Liquidate Assets
-------------------------------------
Buenos Aires-based medical benefits company Plan Medico Personal
Oroville entered bankruptcy protection on orders from Court No.
15 of the city's Civil and Commercial Tribunal, reports Clarin.

The bankruptcy order transfers control of the Company to a
court-appointed trustee.

CONTACT: Plan Medico Personal Oroville
         Avenida Gaona 3519
         Buenos Aires


TRIOMPHE S.A.: Proceeds With Reorganization
-------------------------------------------
Court No. 17 of Buenos Aires' Civil and Commercial Tribunal
approved the "Concurso Preventivo" petition filed by Triomphe
S.A., reports local news source Clarin.

The Company, which listed liabilities of US$4,887.661.17, will
undergo a reorganization process under the supervision of a
court-appointed trustee.

Clerk No. 33 assists the court on this case.

CONTACT: Triomphe S.A.  
         Avenida Cordoba 875
         Buenos Aires



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

CABLE & WIRELESS: Layoffs Over, Says CEO
----------------------------------------
The spate of personnel retrenchments that have affected numerous
employees of Cable & Wireless Caribbean in the last three years
is over, says CEO Len de Burros.

Asia Intelligence Wire reports that the Company will now shift
its restructuring exercises towards creating strategies to
improve its services.

Improved service will allow Cable & Wireless Caribbean to fight
tough competition in the region's newly liberalized telecom
marker by providing new technology to its clients.

While new players such as Digicel and AT&T wireless have
challenged the Company's dominance, Mr. de Burros maintains that
Cable & Wireless still stands as the leading telecoms provider
in the region.  



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

BANCO VOTORANTIM: Starts $100B Eurobond Issue
---------------------------------------------
Brazilian bank Banco Votorantim started late Thursday a US$100
million offer of three-year Eurobonds, which are expected to
yield 5.125% to 5.375% annually.

Brazilian bank Banco Itau (NYSE: ITU) is underwriting the
operation and the issue should be completed by August 27.

Sao Paulo-based Banco Votorantim focuses mainly on corporate
banking and it forms part of the Votorantim group, which is one
of Brazil's largest industrial conglomerates.


COSIPA: Issues Audit Statement
------------------------------
The following audit statement is a translation into English of
Independent Auditors' Special Review Report on Quarterly
Information Originally Issued in Portuguese:

The Board of Directors and Shareholders
Companhia Siderurgica Paulista - COSIPA
Belo Horizonte - MG

1. We have carried out a special review of the accompanying
quarterly information (ITR) of Companhia Siderurgica Paulista -
COSIPA as of and for the three-months ended June 30, 2004, which
comprises the balance sheet and the statement of operations of
the parent company and consolidated, notes to quarterly
information and management's discussion and analysis, prepared
in accordance with accounting principles generally accepted in
Brazil. The computation of the technical reserves, on which the
calculation of the actuarial liabilities was based, was carried
out by independent actuaries. Our special review report, with
respect to the determination of these actuarial liabilities,
parent company and consolidated, was solely based upon this
actuarial report, in the amounts of R$371.451 thousand at June
30, 2004 and of R$12.991 thousand for the income for the
semester then ended.

2. We conducted our review in accordance with specific standards
established by the Brazilian Accountants' Institute - IBRACON
and the Brazilian Federal Accounting Council, which consisted
principally of (a) inquiries and discussion with the persons
responsible for the accounting, financial and operating areas
about the criteria adopted in preparing the quarterly
information; and (b) review of the information and subsequent
events that have or could have material effects on the financial
position and operations of the Company and subsidiaries.

3. Based on our special review, and on the actuarial report
issued by the independent actuaries, we are not aware of any
relevant modifications that should be made to the quarterly
information referred to in the first paragraph in order for them
to be in accordance with accounting principles established by
Brazilian Corporate Law and standards issued by the Brazilian
Securities and Exchange Commission (CVM), specifically
applicable to the preparation of the required quarterly
information.

4. The quarterly information for the three-months ended March
31, 2004 and June 30, 2003, included in certain fields of the
attached quarterly information, were reviewed by other
independent auditors, who issued special review reports dated
April 30, 2004 and July 30, 2003, respectively. Both audit
reports included emphasis paragraphs with respect to default
situations in which the Company did not meet certain financial
covenants required by long-term debt contracts. Such defaults
could trigger the acceleration of the long-term financings` due
dates. The auditors mention in their reports that the Company
obtained waivers from the banks for such defaults with respect
to December 31, 2003 and March 31, 2004. Further, the auditors
also emphasize that the Company results from a societary,
financial and net asset restructuring carried out by Usinas
Siderurgicas Minas Gerais S.A. - USIMINAS and by the Company,
approved in 1999. Certain financial information for the year
ended December 31, 2003, included in this quarterly information,
were audited by the same auditors who issued their report on
March 01, 2004 with the same emphasis paragraphs mentioned
above.

Sao Paulo - SP
August 04, 2004

Ernst & Young
Auditores Independentes
CRC - 2SP 015.199/O-6

Mr. Joao Ricardo Pereira da Costa
Contador CRC - 1RJ 066.748/O-3-S-SP

To view financial statements:
http://bankrupt.com/misc/Cosipa_2Q04.pdf

CONTACT: Mr. Gilson Rodrigues Bentes
         CFO's Assistant
         Tel: (11) 5070-8980

         Mr. Leandro Jose Cappa de Oliveira
         Financial Economic Analyst
         Tel.: (11) 5070-8887

         E-mail: investidores@cosipa.com.br
         Web Site: http://cosipa.infoinvest.com.br


EMBRATEL: Telmex Registers Tender Offer for Embrapar Shares
-----------------------------------------------------------
Embratel Participacoes S.A. (Embrapar) announced that it was
informed by its controlling shareholder, Telefonos de Mexico
S.A. de C.V. (Telmex), that last Friday Telmex, through its
Brazilian subsidiary, Telmex Solutions Telecomunicacoes Ltda.,
filed with the Brazilian Securities and Exchange Commission -
Comissao de Valores Mobiliarios (CVM) a request to register a
tender offer for Embrapar's ordinary shares held by the
remaining shareholders of Embrapar.

The tender offer price will be R$15,11 (fifteen reais and eleven
cents) for each lot of 1000 ordinary shares corresponding to 80%
of the amount paid by Telmex in acquiring equity interests
equivalent to each lot of 1000 ordinary shares on the
acquisition of the controlling stake of Embrapar concluded on
July 23, 2004.

Telmex further informs that the tender price of R$15,11 (fifteen
reais and eleven cents) per lot of 1000 ordinary shares will be
paid in cash and in Reais adjusted pro rata temporis by the
"Taxa Referencial" -TR plus 6% per annum (360 days basis) from
the 23/7/04 until the date of the financial settlement of the
tender offer.

The tender will be conducted through a public offering at the
Bolsa de Valores de Sao Paulo according to the format described
in the public offering documentation that has been presented to
be analyzed and approved by CVM.

About Embratel

Embratel is the premium telecommunications provider in Brazil
and offers an ample variety of telecom services -local and long
distance telephony, advanced voice, high-speed data
transmission, Internet, satellite data communications, and
corporate networks. The company is a leader in the country for
data services and Internet, and is highly qualified to be an
all-distance network carrier in Latin America.

Embratel's network spreads countrywide, with almost 29 thousand
kms of optic cables, which represents about one million and
sixty-nine thousand km of fiber optics.

About TELMEX

TELMEX is the leading telecommunications company in Mexico with
16.5 million telephone lines in service, 2.8 million line
equivalents for data transmission and 1.6 million Internet
accounts. TELMEX offers telecommunications services through a
fiber optic digital network.

TELMEX and its subsidiaries offer a wide range of advanced
telecommunications, data and video services, Internet access as
well as integrated telecom solutions for corporate customers.
Additionally, the company offers telecommunications services
through its affiliates in Argentina, Brazil, Chile, Colombia and
Peru.

CONTACT: Ms. Silvia M.R. Pereira
         Investor Relations
         Tel: (55 21) 2121-9662
         Fax: (55 21) 2121-6388
        E-mail: silvia.pereira@embratel.com.br
                invest@embratel.com.br

        Web Site: www.embratel.com.pr


HSBC BANK BRASIL: Ratings Unaffected by Acquisition
---------------------------------------------------
Standard & Poor's Ratings Services said Friday that the
announcement of the acquisition of the financial company Valeu
Promotora de Vendas, the securitization company Indusval
Securitizadora, and the credit portfolio of Indusval Multistock
Financeira (from the Brazilian group Indusval) by HSBC Bank
Brasil S.A. (HSBC; LC: BB/Stable/B; FC: B+/Positive/B) does not
affect the ratings or outlooks on HSBC in Brazil. The
operations' increase in the retail portfolio of Brazilian reais
(BrR) 253 million reveals the consistency of this acquisition
with the bank's strategy in increasing its presence in the
Brazilian retail market to face the rising competition. Valeu's
operations will be incorporated into HSBC's consumer finance
portfolio and will increase its retail customer base by around
1.1 million. Beyond increasing the portfolio and its stores (61
units will be added to the 131 active stores of Losango), one of
the main positive points is the low overlapping with active
clients of HSBC group-only around 15%. Standard & Poor's does
not expect any substantial change in the liquidity or
capitalization positions of HSBC in Brazil, because the sum
involved in the transaction (BrR371 million, from which BrR253
million relates to the credit portfolio and BrR115 million
refers to goodwill that is expected to be amortized in up to 10
years) is substantially lower than the liquidity position of
HSBC group in Brazil (historically above BrR7 billion).

ANALYSTS:  Claudio Gallina, Sao Paulo (55) 11-5501-8938
           Daniel Araujo, Sao Paulo (55) 11-5501-8939  


HSBC BANK BRASIL: To Acquire Indusval's Consumer Finance Ops
------------------------------------------------------------
HSBC Bank Brasil S.A. has entered into an agreement to acquire
the consumer finance operations of Indusval Multistock Group,
which were formerly known as Maxima, for a total consideration
of BRL371 million (approximately US$124 million) subject to
final adjustments at closing. This includes the purchase of
Indusval's consumer finance sales promotion company (`Valeu
Promotora de Vendas'), its securitisation subsidiary and
consumer finance loans amounting to approximately BRL253
million.

Completion of the transaction, which will be funded from
internal resources, is subject to conditions including
regulatory approvals.

Indusval's consumer finance business in Brazil operates in two
main areas - store loans through some 3,250 retailers and
personal loans through its own network of 61 branches and 1.1
million active customers.

Emilson Alonso, CEO of HSBC Bank Brasil, said: "This transaction
reaffirms HSBC's strong commitment to Brazil and to consumer
finance. It will help us grow our share of the country's
consumer finance market where we already have a leading position
through our acquisition of the Losango consumer finance business
in 2003."

Manoel Felix Cintra Neto, president of Indusval Multistock,
said: "We are happy to have built up such a successful business
that will enhance HSBC's presence in Brazil. This transaction
will allow us to focus our efforts in the middle market segment,
including possible acquisitions in order to expand our product
scope."

CONTACT:  Travessa Oliveira Bello
          34 Sobreloja, Centro
          Curitiba, Brazil
          PR 80020-030

Tel: (+55) 41 321 6161
Fax: (+55) 41 321 6549

President: Youssef A Nasr
CEO: Emilson Alonso


METALLURG INC.: S&P Raises Ratings to `CCC' From `D'
----------------------------------------------------
Standard & Poor's Rating Services raised its corporate credit
rating on New York, N.Y.-based Metallurg Inc. and its parent
Metallurg Holdings Inc. to 'CCC' from 'D'. At the same time,
Standard & Poor's raised its ratings on Metallurg's 11% senior
unsecured notes due 2007 to 'CC' from 'D' and Metallurg
Holdings' 12.75% senior discount notes due 2008 to 'CC' from
'D'. The outlook is negative.

The upgrade follows the recent $1.5 million interest payment
made by Metallurg Holdings to public holders of its 12.75%
senior discount notes due 2008 within the 30-day grace period
provided under the bond indenture, and the refinancing of
Metallurg's credit facility. The new credit facility consists of
a $21 million letter of credit facility and a $10 million term
loan at Metallurg and a $1.7 million term loan at Metallurg
Holdings, all maturing on Aug. 31, 2007. The term loan at
Metallurg Holdings was used to help make an interest payment on
its 12.75% notes.

"The ratings reflect an onerous debt burden, limited liquidity,
and dependence on favorable industry conditions," said Standard
& Poor's credit analyst Dominick D'Ascoli.

Metallurg produces and markets metal alloys used by
manufacturers of steel, aluminum, and superalloys from
production facilities located in the U.S., U.K., and Brazil. The
company's poor financial condition resulted from high financial
leverage and a downturn in its end markets, including steel,
aluminum, and aerospace.


TELEMAR: To Adjust Tariffs By September
---------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding
company of telecommunication services providers in the northern,
northeastern and eastern regions of Brazil, announced that, in
accordance with the Superior Court's decision to reinstate the
IGP-DI index as the adjustment factor, tariffs would begin to
reflect the change as of the first day of September. The
adjustments relating to 2003 will be applied, to the tariff
rates in effect on June 30, 2004, in two steps (Sep 1st and Nov
1st) as shown in this table: http://bankrupt.com/misc/TelGra.doc

CONTACT: TNE - INVESTOR RELATIONS
         Mr. Roberto Terziani
         (terziani@telemar.com.br)
         55 21 3131 1208
                 or
         Mr. Carlos Lacerda
         (carlosl@telemar.com.br)
         55 21 3131 1314
         Fax: 55 21 3131 1155

         The Global Consulting
         Mr. Kevin Kirkeby
         Tel: 1 646.284.9416
         (kkirkeby@hfgcg.com)

Web site http://www.telemar.com.br/ir


TELEMAR: Cuts Interest on Loan Transactions
-------------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding
company of telecommunication services providers in the northern,
northeastern and eastern regions of Brazil, announced that on
August 16, 2004, as a result of its improved financial and
credit position, coupled with the more favorable perception of
Brazil country risk, Telemar finalized an unprecedented US$ 816
million loan from a syndicate comprised of more than 20 banks,
with ABN AMRO and Citigroup as the lead arrangers.

Telemar availed itself of a clause in a loan agreement,
originally granted in 2001 to finance the Oi project, to reduce
interest rates on the contracted amounts and to raise new funds.
Pursuant to the original agreement, lenders had two options,
receive prepayment of the loan or enter into a new transaction.

Of the transaction's US$ 816 million total, US$150 million
represents new funds and the balance will bear reduced spreads.
The term of the loan is three years on average, representing
present value interest savings of US$ 25 million. Interest over
Libor ranges from 2.125% p.a. to 3.75% p.a.

CONTACT: TNE - INVESTOR RELATIONS
         Mr. Roberto Terziani
         (terziani@telemar.com.br)
         55 21 3131 1208
                 or
         Mr. Carlos Lacerda
         (carlosl@telemar.com.br)
         55 21 3131 1314
         Fax: 55 21 3131 1155

         The Global Consulting
         Mr. Kevin Kirkeby
         Tel: 1 646.284.9416
         (kkirkeby@hfgcg.com)


VARIG: Government Not Mulling Capital Injection
-----------------------------------------------
Brazil's Finance Minister Antonio Palocci announced Friday that
the government is not considering a capital injection into
troubled flagship airline Varig, reports Reuters.

The official's comment follows an announcement by Carlos Wilson,
the head of state-run airport authority Infraero, that the
government is discussing a plan to take control of Varig
temporarily and then sell it to a private investor.

"At this moment there is no study. And the constitution doesn't
allow me to grant any credit, to individuals or companies,"
Palocci said.

Varig has debts totaling BRL6 billion (US$2 billion), two-thirds
of which is held by the government and state-run companies.

"The company is practically state-owned as it is the government
that is sustaining it. It is us who are injecting funds and
having patience not to execute debts," Wilson said.

Wilson further said Varig's controlling entity, the Ruben Berta
Foundation, would have a symbolic participation in the new Varig
that will be offered for sale.

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

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



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

ENERSIS: Fitch Assigns 'BBB-' To SEC Registered Bonds
-----------------------------------------------------
Fitch Ratings has assigned a 'BBB-' rating to US$350,000,000 of
new 7.375% notes to be issued by ENERSIS S.A., acting through
its Cayman Island's Branch ('Enersis') in its announced Exchange
Offer to replace outstanding unregistered notes due 2014 which
were originally sold in November 2003 in a private offering (the
'old notes'). The terms of the new notes are identical to those
of the old notes except for the fact that the new notes were
publicly registered with the SEC under the Securities Act of
1933. The Exchange Offer commenced on August 6, 2004 and is
expected to expire on September 3, 2004. Final settlement is
expected to occur no later than September 10, 2004. The Rating
Outlook for Enersis' ratings is Stable.

Enersis is the largest private electricity distribution group in
Latin America. The company has varying ownership interests in
electric-distribution companies in Argentina, Brazil, Chile,
Colombia and Peru; electric-generating companies in Argentina,
Brazil, Chile, Colombia and Peru through Endesa-Chile; and
electric utility related service companies throughout Latin
America. Enersis is currently 60.62% owned by Endesa-Spain.



=================
G U A T E M A L A
=================

MILLICOM INTERNATIONAL: Offers GSM Service in Central America
-------------------------------------------------------------
Millicom International Cellular S.A. (NasdaqNM:MICC)
(Stockholmsborsen:MIC), announced Friday that its operations in
Guatemala, El Salvador and Honduras have launched GSM services
in the 850 MHz frequency, under the brand name of Tigo.

The service will cover 92% of the population of El Salvador and
75% of the populations of Guatemala and Honduras. Customers will
benefit from service enhancements including innovative wireless
internet browser (WIB) services through the Tigo Menu. Comcel in
Guatemala and Telemovil in El Salvador will continue to operate
their TDMA cellular services alongside the GSM offering and, in
Honduras, Celtel will continue to operate its CDMA service.

Marc Beuls, President and CEO of Millicom International Cellular
commented:

"Central America is our largest cluster in terms of revenue and
we expect the launch of GSM services to create added momentum in
terms of both customer intake and revenue growth. We are
committed to providing our customers with the most advanced
technology, the best services and the widest regional coverage
at the lowest tariffs, which will enable us to grow our market
share."

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16
cellular operations and licenses in 15 countries. The Group's
cellular operations have a combined population under license of
approximately 387 million people.

CONTACTS:  Millicom International Cellular S.A.
           Luxembourg
           Mr. Marc Beuls
           President and Chief Executive Officer
           Telephone:  +352 27 759 327

           Mr. Andrew Best
           Investor Relations
           Telephone:  +44 20 7321 5022



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

GRUPO IUSACELL: Inks 10-Year Contract With Unefon
-------------------------------------------------
Grupo Iusacell, S.A. de C.V. (NYSE: CEL - News; BMV: CEL), and
Operadora Unefon, S.A. de C.V., principal subsidiary of Unefon,
S.A. de C.V. (BMV: UNEFON), signed the final contract and
annexes that define the technical aspects involved in providing
exchange capacity and roaming services.

The contract period is 10 years, during which time both
companies will exchange services in regions 2, 3, 4, 5, 6, 7, 8
and 9 of Mexico.

The current contract has been approved by both the related
parties committee and the board of directors of Grupo Iusacell.
Both companies are ready to begin exchanging services.

"We believe this contract will benefit Iusacell customers
allowing for an increase in company capacity and service
coverage," said Gustavo Guzman, CEO of Grupo Iusacell.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.

Independent of the negotiations towards the restructuring of its
debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state- of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operate.

CONTACT: 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


VOLKSWAGEN: Strike Ends As Workers Accept Wage Proposal
-------------------------------------------------------
Volkswagen and union members reached an agreement on wages on
Saturday, ending a three-day-old strike at the car plant in the
mountains of Puebla, 65 miles (105 kms) southeast of Mexico
City, reports Dow Jones Newswires.

The plant's 9,500 workers had requested an 8.5% salary increase,
but finally accepted the company's offer of 4.5%, plus a 1.6%
increase in benefits.

Some workers have also wanted to return to a full, five-day work
week after schedules were trimmed to four days last year to save
money. However, that issue didn't appear to have been resolved
in the contract negotiations.



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

NWRHA: Grants 15% Pay Hike to Employees
---------------------------------------
Monthly paid employees of Trinidad's North West Regional Health
Authority (NWRHA) will receive a 15 per cent increase in their
salaries beginning August 26.

Finance Vice President Ravi Ramcharan said in an article from
the Trinidad Express that the agency is working to ensure that
the adjustments will be made on time. He further assures that
the move will not affect NWRHA's financial and payroll systems.

CONTACT: North West Regional Health Authority
         Jerningham Place
         Jerningham Avenue
         Belmont
         Port of Spain
        (868) 624-3845



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

PDVSA: Delaying Investments
---------------------------
State oil company Petroleos de Venezuela SA (PDVSA) still has
US$3 billion left in its US$4.5 billion investment budget for
2004, El Universal reports, citing PDVSA Vice President for
Finances Jose Rojas.

Rojas gave no reason for the spending delays.

The executive also revealed that PDVSA may boost operating
expenses by about US$2 billion to cover increased spending on
social programs. Operating costs may rise to US$11.3 billion
from the previously announced US$9.5 billion.

PDVSA earlier announced that it would spend up to US$3.7 billion
on social, health, educational and infrastructure programs this
year.

According to Bloomberg, former PDVSA managers, who got sacked in
last year's two-month long strike, criticized the spending,
saying it is taking funds from the Company's energy businesses.


SIDOR: Diaco Stockholders Reject Purchase Offer
-----------------------------------------------
Colombian iron and steel group Diaco rejected a purchase offer
from Venezuela's Siderurgica del Orinoco (Sidor), reports
Business News Americas.

In a statement to Colombia's securities regulator, Diaco said
its stockholders rejected the offer.

Diaco's announcement came amid rumors in the market that
suggested Diaco have sold stock to Sidor.

Sector analyst Juan Pablo Gomez suggested to Business News
Americas that Diaco's decision was based on the amount offered -
US$125mn - which he considers too low.



                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

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

This material is copyrighted and any commercial use, resale or
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