TCRLA_Public/040902.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, September 2, 2004, Vol. 5, Issue 174

                            Headlines


A R G E N T I N A

ARIANTE S.A.: Bankruptcy Initiated by Court Order
BOBIGRAL S.A.: Required Report Submission Dates Set
BONI S.A.: Debt Payments Halted, Readies To Reorganize
CRONOMETAL: Court Schedules Submission Deadlines
FARGO S.A.: $120M Bond Issue Gets D Rating

HIERROS CAMPANA: Court Deems Liquidation Necessary
INDUSTRIAS METALURGICAS: Enters Bankruptcy on Court Orders
IN TEC: Court Rules in Favor of Creditor's Bankruptcy Petition
LOGISTICA LA SERENISIMA: Danone Looks to Acquire Full Ownership
MARIO ROCHMAN: Initiates Bankruptcy Process

MATTULICH S.A.: Files Petition to Reorganize
PARRI S.A.: Court Declares Company Bankrupt
PILGRIM S.A.: Claims Review Deadline Set
SIDECO AMERICANA: Court Endorses Preventive Agreement
SOUTHERN WINDS: Government Extends Accord With LAFSA

WINE CONSULTING: Proceeds With Restructuring
* ARGENTINA: IMF Supports Kirchner's Economic Programs


B E L I Z E

* S&P Lowers Foreign Currency Ratings; Outlook Negative


B E R M U D A

FOSTER WHEELER: Adjusts Interest Rate on New Notes


B R A Z I L

BRASKEM: Selling 11,700,000,000 Class A Preferred Shares
CEMIG: Stockholders to Vote on Board Proposals
USIMINAS: Expects Financial Aid From JBIC on Expansion Plans


C H I L E

ENAMI: Codelco May Seek New Sources to Fund Ventanas Transfer
ROYAL SHELL: Mining Minister Says ENAP Not Eyeing Local Assets


M E X I C O

GRUPO MEXICO: Railway Unit Strikes Contract Deal With Workers


U R U G U A Y

NUEVO BANCO: Fitch Assigns 'B' to LTFC Debt Rating


     - - - - - - - - - -


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

ARIANTE S.A.: Bankruptcy Initiated by Court Order
-------------------------------------------------
Ariante S.A. will enter bankruptcy protection after Court No. 19
of Buenos Aires' civil and commercial tribunal ordered the
company's liquidation. The bankruptcy 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. Mario Rafael Cabrosi as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on September 22, 2004.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on November 4, 2004 followed by the general report, which is due
on December 17, 2004.

CONTACT: Ariante S.A.
         Suipacha 355
         Buenos Aires

         Mr. Mario Rafael Cabrosi, Trustee
         Uruguay 390
         Buenos Aires


BOBIGRAL S.A.: Required Report Submission Dates Set
---------------------------------------------------
Ms. Irma Aguilera, the trustee assigned to supervise the
liquidation of Bobigral S.A., will submit the validated
individual claims for court approval on November 3, 2004. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report on December 16,
2004.

Infobae reports that Court No. 19 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
Clerk No. 38 assists the court with the proceedings.

CONTACT: Bobigral S.A.
         Larrazabal 1031
         Buenos Aires

         Ms. Irma Aguilera, Trustee
         Luis Saenz Pena 1690
         Buenos Aires


BONI S.A.: Debt Payments Halted, Readies To Reorganize
------------------------------------------------------
Judge Di Noto of Buenos Aires' civil and commercial tribunal
Court No. 15 is now analyzing whether to grant Boni S.A.
approval for its petition to reorganize.

La Nacion recalls that the company sought insolvency protection
after defaulting on its debt obligations. The Company reported
assets worth US$1,179,357 and liabilities totaling US$1,719,640.

Dr. Tevez, Clerk No. 29, assists the court on this case.

CONTACT: Boni S.A.
         Chile 427
         Buenos Aires


CRONOMETAL: Court Schedules Submission Deadlines
------------------------------------------------
Mr. Oscar Chapiro, the trustee supervising the liquidation of
Cronometal S.R.L., will submit relevant documents from the case
on these dates:

1. Individual Reports (Article 35) - December 7, 2004
2. General Report (Article 39) - February 21, 2005

The Company's creditor, Mr. Jose Moral sought for the Company's
bankruptcy after the latter failed to pay debts amounting to US$
47,951.96.

CONTACT: Cronometal S.R.L.
         Eleodoro Lobos 459
         Buenos Aires

         Mr. Oscar Chapiro, Trustee
         Lavalle 1290
         Buenos Aires


FARGO S.A.: $120M Bond Issue Gets D Rating
------------------------------------------
About US$120 million of corporate bonds issued by Compania de
Alimentos Fargo S.A. was rated `D' by rating agency Evaluadora
Latinoamericana S.A. Calificadora de Riesgo. The bonds,
according to the information on Argentina's National Securities
Commission, is described as "obligaciones de negociables
simples."

Securities regulator Comision Nacional de Valores (CNV) posted
the rating Tuesday. The D rating was assigned based on the
Company's financial status as of June 30, 2004. No further
details accompanied the announcement.

CONTACT: CompanĦa de Alimentos Fargo S.A.
         Panamericana y Marcos Sastre
        (B1618FAU) Gral. Pacheco
         Buenos Aires
         Tel:(5411)4736-6500

         Web Site: http://www.fargo.com.ar/


HIERROS CAMPANA: Court Deems Liquidation Necessary
--------------------------------------------------
Court No. 19 of Buenos Aires civil and commercial tribunal
ordered the liquidation of Hierros Campana S.A. after the
company defaulted on its obligations, Infobae reveals.

The liquidation pronouncement will effectively place the
company's affairs as well as its assets under the control of Mr.
Jaime Feigielson, the court-appointed trustee.

The trustee will verify creditors' proofs of claims until
September 17, 2004. The verified claims will serve as basis for
the individual reports to be submitted in court on November 1,
2004. The submission of the general report follows on December
14, 2004.

Clerk No. 38 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Hierros Campana S.A.
         Jose Evaristo Uriburu 754
         Buenos Aires

         Mr. Jaime Feigielson, Trustee
         Sarmiento 1287
         Buenos Aires


INDUSTRIAS METALURGICAS: Enters Bankruptcy on Court Orders
----------------------------------------------------------
Court No. 2 of Bell Ville's civil and commercial tribunal
declared local company Industrias Metalurgicas Martellono S.R.L.
bankrupt after it defaulted on its debt payments. The
verification of creditors' claims is ongoing until September 30,
2004. Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on November 11, 2004.

Infobae reports that Clerk no. 3 assists the court on this case,
which will end with the disposal of the company's assets in
favor of its creditors.

CONTACT: Industrias Metalurgicas Martellono S.R.L.
         Presidente Peron 37
         Ballesteros (Cordoba)


IN TEC: Court Rules in Favor of Creditor's Bankruptcy Petition
--------------------------------------------------------------
Ms. Gabriela Mariuzza successfully sought for the bankruptcy of
In Tec S.R.L. after Judge Ballerini, serving for Court No. 24 of
Buenos Aires' civil and commercial tribunal, declared the
Company "Quiebra." Infobae reports that the Company will now
start the bankruptcy process under the supervision of Ms. Haydee
Kravetz, the court-appointed trustee. Creditors must submit
their proofs of claim to the trustee before October 5, 2004 for
authentication. Failure to do so will mean a disqualification
from the payments that will be made after the Company's assets
are liquidated.

The creditors sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$24,617.75.

Dr. Diaz, Clerk No. 48, assists the court on this case that will
culminate in the liquidation of all of its assets.

CONTACT: In Tec S.R.L.
         Cahue 9
         Buenos Aires

         Ms. Haydee Kravetz, Trustee
         Tucuman 1484
         Buenos Aires


LOGISTICA LA SERENISIMA: Danone Looks to Acquire Full Ownership
---------------------------------------------------------------
French group Danone is negotiating with its Argentine partner,
Mastellone Hnos., to acquire 100% ownership in Logistica La
Serenissima, the logistics firm they share, in exchange for a
debt of the Argentine dairy company.

The partnership between Danone and Mastellone began in 1995,
when they subscribed an alliance destined to work together in
the yogurt and desserts segments. Then Danone ended up
purchasing the whole division, which currently manages on its
own and has a high market share.

Danone and Mastellone still share the ownership of Logistica La
Serenissima -the company that distributes both companies'
products- with a 51% and 49% stake, respectively.

Mastellone owes Danone around US$30 million.

"It was a loan granted by Danone to Pascual Mastellone during
the post-devaluation crisis in early 2002. Mastellone had
serious cash flow issues and the French partner didn't want the
company to go down. That's why they lent the money under the
condition that they would discuss later how it would be repaid,"
a dairy sector source pointed out.

Although Danone and Mastellone spokespersons declined to comment
on the matter, it is said that the Argentine company would have
offered Danone its 49% stake in Logistica La Serenissima as a
way to pay off the debt.

Logistica La Serenissima has 13 warehouses strategically located
across the country and a fleet of 900 trucks.

A source said that the companies would have already agreed on
the deal off-the-record, though Mastellone doesn't want to
announce it until once it has closed its out-of-court debt
restructuring (APE). Mastellone is trying to refinance ARS457.4
million in debt.


MARIO ROCHMAN: Initiates Bankruptcy Process
-------------------------------------------
Court No. 19 of Buenos Aires' civil and commercial tribunal
declared local company Mario Rochman y Raul Rochman S.H.
"Quiebra," reports Infobae. Mr. Eduardo Fermin Luis Aguinaga,
who has been appointed as trustee, will verify creditors' claims
until September 21, 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
November 3, 2004, followed by the general report on December 16,
2004. Clerk No. 38 assists the court on the case, which will
close with the liquidation of the Company's assets to repay
creditors.

CONTACT: Mario Rochman y Raul Rochman S.H.
         Avda Corrientes 2635
         Buenos Aires

         Mr. Eduardo Fermin Luis Aguinaga, Trustee
         Maipu 374
         Buenos Aires


MATTULICH S.A.: Files Petition to Reorganize
--------------------------------------------
Buenos Aires-based Mattulich S.A. filed for "Concurso
Preventivo" states La Nacion. The Company is seeking to
reorganize its finances following cessation of debt payments
since June 4 this year.

The Company's case is pending before Court No. 5 of Buenos
Aires' civil and commercial tribunal under Judge Vasallo. Dr.
Perez Casado, Clerk No. 9, assist the court on this case.

CONTACT: Mattulich S.A.
         Fernando de Montalvo 158
         Buenos Aires


PARRI S.A.: Court Declares Company Bankrupt
-------------------------------------------
Judge Ferrario, serving for Court No. 6 of Buenos Aires' civil
and commercial tribunal, declared local company Parri S.A.
bankrupt, reports La Nacion. The order comes in approval of the
petition filed by Ms. Leticia Pepili, to whom the Company has
outstanding debts amounting to US$8,800.

The real estate company will undergo the bankruptcy process with
Mr. Luis Traverso as its trustee. Creditors are required to
present their proofs of claims to the trustee for verification
before November 5, 2004. Creditors who fail to have their claims
authenticated by the said date will be disqualified from
receiving post-liquidation payments.

Dr. Mendez Sarmiento, Clerk No. 12, assists the court on this
case.

CONTACT: Parri S.A.
         Av. Triunvirato 5380
         Buenos Aires

         Mr. Luis Traverso, Trustee
         Av. Corrientes 1820
         Buenos Aires


PILGRIM S.A.: Claims Review Deadline Set
----------------------------------------
The verification of claims for the Pilgrim S.A. bankruptcy will
end on October 8, 2004 according to Infobae. Creditors with
claims against the bankrupt company must present proof of the
liabilities to Mr. Adolfo Kupchik, the court-appointed trustee,
before the deadline.

Court No. 13 of Buenos Aires' civil and commercial tribunal
handles the company's case with the assistance of Clerk No. 25.
The bankruptcy will conclude with the liquidation of the
company's assets to pay its creditors.

CONTACT: Mr. Adolfo Kupchik, Trustee
         Adolfo Alsina 1360
         Buenos Aires


SIDECO AMERICANA: Court Endorses Preventive Agreement
-----------------------------------------------------
The extra-judicial settlement proposed by Sideco Americana S.A.
for its creditors acquired the number of votes necessary for
confirmation, says Infobae. As such, the plan was endorsed by
the court and will now be implemented by the company.

Sideco Americana is diversified operations include engineering
and construction, infrastructure development and public
services, with most of its operations in Argentina and Brazil.

CONTACT: Sideco Americana S.A.
         Carlos Maria Della Paolera 299 P 27 1001)
         Buenos Aires
         Tel: (011) 4319-3800
         Fax:(011) 4319-3880


SOUTHERN WINDS: Government Extends Accord With LAFSA
----------------------------------------------------
A spokeswoman for Argentina's Transportation Secretariat
announced Tuesday that the government has extended an accord
between start-up state-owned carrier Lineas Aereas Federales
(LAFSA) and Southern Winds SA, adding another six months to a
fuel subsidy for the private carrier.

Last September, Argentine government authorities, including
president Nestor Kirchner, signed an accord between LAFSA and
Southern Winds, in a move to preserve jobs at Southern Winds
that would be lost if the carrier were to go bankrupt.

Under the accord, the government will pay up to ARS3.2 million
(US$1.08 million) a month for fuel and will also be responsible
for the salaries.

In exchange for the government funds, Southern Winds agreed to
share its fleet and infrastructure with LAFSA, a state company
formed in July 2003 to provide jobs for 800 former workers at
financially troubled airlines Lapa and Dinar.

According to a report from local news agency Diarios y Noticias,
the government said it will allow a maximum ARS4.5 million
($1=ARS3.0075) to subsidize fuel costs, up from the original
ARS3.2 million contained in the September 2003 agreement.

But the Transportation Secretariat spokeswoman said she couldn't
confirm that the government had increased the fuel subsidy as
part of the rollover, saying she didn't have immediate access to
specific numbers.


WINE CONSULTING: Proceeds With Restructuring
--------------------------------------------
Judge Garibotto, serving for Court No. 2 of Buenos Aires' civil
and commercial tribunal approved the "Concurso Preventivo"
petition filed by Wine Consulting S.R.L., reports local news
source La Nacion. The Company, which listed assets of
US$99,281.94 and liabilities of US$121,296.58, will undergo a
reorganization process under the supervision of Ms. Liliana
Oliveros Peralta, the trustee.

Ms. Peralta will verify creditors' proofs of claim until
November 2, 2004. Verifications are done to ascertain the nature
and amount of the Company's debts. The receiver will also
prepare the individual and general reports on the case.

A settlement plan will be presented to creditors during the
informative assembly on August 3 next year. Dr. Romero, Clerk
No. 4, assists the court in resolving this case.

CONTACT: Wine Consulting S.R.L.
         Figueroa Alcorta 3351
         Buenos Aires

         Ms. Liliana Oliveros Peralta, Trustee
         Viamonte 1337
         Buenos Aires


* ARGENTINA: IMF Supports Kirchner's Economic Programs
------------------------------------------------------
Mr. Rodrigo de Rato, Managing Director of the International
Monetary Fund (IMF), made the following statement Thursday at
the conclusion of his visit to Argentina:

"During my brief, but productive, visit to Argentina, my first
stop in South America as Managing Director, I have had the
privilege to meet President Nestor Kirchner and to hold very
constructive meetings with Minister Roberto Lavagna, Central
Bank President Alfonso Prat-Gay and their economic teams.

"My main goal in coming to Buenos Aires was to offer my support
to the President for normalizing Argentina's economy and
standing in the financial markets, with a view to attracting the
new investments necessary for sustaining growth and poverty
reduction for the benefit of all its citizens. There are two
particularly important and inter-twined elements in this regard:
the completion of a comprehensive and sustainable restructuring
of Argentina's sovereign debt to private creditors, and a
supporting medium-term fiscal framework.

"In this context, I discussed with the President the steady
improvement in Argentina's fiscal position since 2002 and the
recovering banking system. Our discussions revealed many common
understandings on the economic policy priorities that lie ahead.
We agreed that prudent budgetary policy, within a framework of
rising public savings, had been a key achievement of Argentina's
federal government and provinces; this recent track record has
bolstered consumer and investor confidence while also allowing
considerable room for meeting the government's poverty reduction
objectives. Safeguarding and building on this good performance
in the future is a key policy priority and we look forward to a
commensurately strong budget framework for 2005 and the medium
term.

"The President and I agreed to resume program discussions at the
first possible opportunity, and once we have had a chance to
assess the outcome of the debt restructuring and the continued
further work on the structural issues outlined in the structural
reform agenda of Argentina's program supported by a Stand-By
Arrangement with the Fund. I was encouraged by the President's
continued commitment to the objectives of the program and his
stated willingness to work together to find shared
understandings on the policy requirements of the program."

CONTACT: International Monetary Fund
         External Relations Department
         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



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

* S&P Lowers Foreign Currency Ratings; Outlook Negative
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
currency sovereign credit rating on Belize to 'B-' from 'B'.
Standard & Poor's also lowered its long-term local currency
sovereign credit rating on Belize to 'B' from 'B+'. The outlook
on the ratings remains negative. At the same time, Standard &
Poor's lowered its short-term local currency sovereign credit
rating on Belize to 'C' from 'B' and affirmed its 'C' short-term
foreign currency sovereign credit rating.

According to Standard & Poor's credit analyst Olga Kalinina, the
downgrades and negative outlook follow the announcement made by
the government of Belize on Aug. 30, 2004, that its long-delayed
offering of bonds in the international capital markets will not
be proceeding. "The government stated in its press release that
'On August 17, 2004, the term of the Government's engagement of
Morgan Stanley & Co. Incorporated as lead manager in respect of
the offering expired in accordance with the terms of the
engagement letter between the Government and Morgan Stanley. In
lieu of the bond offering, the Government presently intends to
refinance the principal amounts involved directly with the
corresponding banks,'" said Mrs. Kalinina. "With the proceeds
from the foregone bond no longer forthcoming, the government
will be challenged to find other financing sources to meet its
amortization needs, an increasingly complex challenge given its
deteriorating credit profile and the country's unsettled
political situation," she added.

The principal repayments from the public sector total US$42
million between Sept. 1, 2004, and year-end 2004, and include
US$33 million from the central government and US$9 million from
the Development Finance Corporation. Of the amount due from the
central government, US$27.2 million is due to various commercial
banks, with the largest repayments outstanding owed to the Bank
of Miami (US$23.3 million), Royal Merchant Bank of Trinidad &
Tobago (US$1.5 million), and Citibank, Trinidad & Tobago
(US$857,000). On a monthly basis, the central government's
amortization repayments to the commercial banks amount to
US$510,000 (September), US$2 million (October), US$60,000
(November), and US$24.6 million (December). In addition to the
public sector financing needs, the private sector is estimated
to require around US$100 million in order to refinance its
obligations through year-end 2004, while the coverage of the
current account deficit will necessitate another US$60 million.

Altogether, the country's financing needs of more than US$200
million are dangerously high compared with the available
official reserves of just above US$70 million.

"Finally, Belize's ratings could fall further if the country's
liquidity situation deteriorates, which may lead to exchange-
rate pressures," noted Mrs. Kalinina. "The worsening of the
political situation will also impair Belize's creditworthiness,"
she concluded.

ANALYSTS:  Olga Kalinina, CFA, New York (1) 212-438-7350
           Helena Hessel, New York (1) 212-438-7349



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

FOSTER WHEELER: Adjusts Interest Rate on New Notes
---------------------------------------------------
Foster Wheeler Ltd. announced Thursday the recalculated interest
rate applicable to the Fixed Rate Senior Secured Notes due 2011,
Series A (the "New Notes"), to be issued by Foster Wheeler LLC
in the equity for debt exchange offer that the company launched
on June 11, 2004.

If the exchange offer expires as currently scheduled on
September 2, 2004, the New Notes will bear interest at a rate of
10.390% per annum. This rate is equal to 6.65% plus the yield on
U.S. Treasury notes having a remaining maturity equal to the
maturity of the New Notes determined as of 2:00 p.m. New York
City time on the second business day prior to the expiration of
the exchange offer. The terms of the New Notes are described in
the registration statement on Form S-4 (File No. 333-107054)
relating to the exchange offer.

The interest rate set forth above supersedes the rate previously
announced on August 26, 2004.

A copy of the prospectus relating to the New Notes and other
related documents may be obtained from the information agent.
The information agent for the exchange offer and consent
solicitation is:

Georgeson Shareholder Communications Inc.
17 State Street, 10th Floor
New York, New York 10014.

Telephone:
Bankers and brokers: 212-440-9800
Other security holders: 800-891-3214

The dealer manager for the exchange offer and consent
solicitation is:

Rothschild Inc.
1251 Avenue of the Americas
51st Floor, New York, New York 10020.
Phone: 212-403-3784

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information:

(1) the registration statement on Form S-4 (File No. 333-107054)
and (2) the Schedule TO (File No. 005-79124).

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         Media:
         Ms. Maureen Bingert
         Phone: 908-730-4444
             or
         Investors:
         Mr. John Doyle
         Phone: 908-730-4270
             or
         Other Inquiries:
         Phone: 908-730-4000

Web site: http://www.fwc.com



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

BRASKEM: Selling 11,700,000,000 Class A Preferred Shares
--------------------------------------------------------
Braskem, a Brazilian petrochemical and utilities generation
company, is selling 7,800,000,000 class A preferred shares in
the form of American Depositary Shares, or ADSs, according to an
amended Form F-1 filed with the Securities and Exchange
Commission.

Each ADS represents 1,000 class A preferred shares.

In the filing, the company said it is selling 7,800,000 ADSs in
the United States and other countries outside Brazil through
international underwriters.

Braskem is also concurrently offering 3,900,000,000 class A
preferred shares in Brazil, the filing added.

The ADSs are listed on The New York Stock Exchange under the
symbol "BAK." The last reported sale price of the ADSs on The
New York Stock Exchange on August 27, 2004 was US$27.41 per ADS.
The class A preferred shares are listed on the Sao Paulo Stock
Exchange in lots of 1,000 shares under the symbol "BRKM5."

The closing price of the class A preferred shares on the Sao
Paulo Stock Exchange on August 27, 2004 was BRL81.40 per 1,000
class A preferred shares, which is equivalent to approximately
US$27.52 per 1,000 class A preferred shares, based upon an
exchange rate of BRL2.957 to US$1.00.

The international underwriters have an option to purchase a
maximum of 1,170,000 additional ADSs to cover over-allotments of
ADSs. The Brazilian underwriters also have an option to purchase
a maximum of 585,000,000 additional class A preferred shares to
cover over-allotments of class A preferred shares in the
concurrent Brazilian offering.

Credit Suisse First Boston, Unibanco and UBS Investment Bank
were listed as underwriters for the offering.

Braskem said it intends to use the net proceeds from the global
offering for general corporate purposes, including working
capital and the repayment of short-term debt.


CEMIG: Stockholders to Vote on Board Proposals
----------------------------------------------
The Companhia Energetica de Minas Gerais (CEMIG) Extraordinary
General Meeting scheduled on September 16, 2004, 10:30 A.M., at
the company's head office, Avenida Barbacena 1200, 18th floor,
Belo Horizonte, in the state of Minas Gerais, Brazil will take
up these proposals submitted by the Company's Board of
Directors:

a) For Cemig to adapt to the new model for the electricity
sector, established by Law 10848 of 15 March 2004, a
stockholding restructuring is necessary;

b) the stockholding reorganization currently in progress
provides for the constitution of two wholly-owned subsidiaries,
one for Generation and Transmission, and one for Distribution,
with Cemig maintaining the role of holding company, and
stockholding control of the two companies to be created;

c) for the transfer of assets to the wholly-owned subsidiaries
which will be constituted it is necessary to contract a
technical expert or specialized company for the preparation of a
Statement of Valuation, which states reasons, of all the assets
of Cemig, related to the activities of generation, transmission
and distribution of electricity;

d) since Cemig is a company with mixed private-public-sector
stockholdings, this contracting was preceded by a tender
process, in view of Law 8666/93, and the Executive Officers were
authorized to start the administrative process of tender, and to
contract services of Valuation of Assets and Physical-Accounting
Reconciliation of the Assets of Cemig for the purpose of the
process of "unbundling" ("de-verticalization") of the Company;

e) the company Servicos Tecnicos de Avaliacoes do Patrimonio e
Engenharia S/C Ltda. was declared winner of the said tender; and

f) in conformity with Article 8 of Law 6404/76, as amended, the
company specialized in valuation of assets must be appointed by
the General Meeting of Stockholders;

The Board of Directors proposes to submit to the approval of the
Extraordinary General Meeting of Stockholders a proposal for
appointment of the company Setape - Servicos Tecnicos de
Avaliacoes do Patrimonio e Engenharia S/C Ltda. to provide
services of Valuation of Assets and Physical-Accounting
Reconciliation of the Assets of Cemig, as provided for by Law
6404/76, as amended, and the valuation assessment to be produced
by the company will be used in the transfer of the assets to the
wholly-owned subsidiaries which will be  constituted to effect
the stockholding reorganization of the Company.

CONTACT: Companhia Energetica de Minas Gerais
         Avenida Barbacena, 1.200 - Terreo
         Belo Horizonte,  30190
         Phone: (877) 248-4237
         e-mail: rv@cemig.com.br
         Web Site: http://www.cemig.com.br/


USIMINAS: Expects Financial Aid From JBIC on Expansion Plans
------------------------------------------------------------
The Minas Gerais state government said in a statement on its Web
site that steelmaker Usiminas is likely to get financial help
from the Japan Bank for International Cooperation (JBIC) on its
expansion plans.

Business News Americas reports that state governor Aecio Neves
and Usiminas CEO Rinaldo Campos Soares met with JBIC's
executives on Monday (August 30) during an ongoing visit of
Minas Gerais state and business officials to Japan.

Usiminas, which has Japan's Nippon Steel as one of its
shareholders, recently gained approval from its board to build a
60MW thermoelectric plant to increase power generation capacity.
No details were provided on the investment required for the
construction of the plant, but company executives earlier
indicated that the thermoelectric project
would involve about US$60 million.

The power project should be ready for commercial operation in
2007, said an Usiminas spokesperson. With the new plant,
Usiminas will produce 53% of the power it uses, up from the
current 24%.



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

ENAMI: Codelco May Seek New Sources to Fund Ventanas Transfer
-------------------------------------------------------------
The board of state copper company Codelco spent their last
meeting trying to figure out how to raise money to finance the
transfer of the Ventanas refinery from state mining company
Enami, Business News Americas reports, citing Chile's mining
minister Alfonso Dulanto.

"We need at least US$400mn to take over Enami operations so we
looked at what possibilities there were to issue a bond or to
look for some financial instrument which would be more
appropriate and allow us to take over operations," Dulanto said.

But first, Codelco needs to know if the Ventanas transfer will
be approved, he said.

"How can we take on a loan if we don't even know yet if this
will be approved by congress?"

The senate mining committee is yet to schedule another meeting
to vote on a bill to transfer Ventanas from Enami to Codelco.
The recent voting came to a tie as committee members could not
come to an agreement to approve the government bill, which seeks
to reduce Enami's debt.

The disagreement was over the government supposedly not living
up to its promise to stop making withdrawals from Enami's
profits until completing the US$164 million in fiscal credit the
state has with the company.

Opposition mining committee senators Baldo Prokurica and Jaime
Orpis had both alleged that the government had not fulfilled its
part of the bargain.

If the next voting comes to a tie once again, the bill's
principal article will be formally rejected.

The Chilean government had proposed the ownership transfer in
order to cut Enami's US$500 million debt, which had began to
cripple the company's finances.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President


ROYAL SHELL: Mining Minister Says ENAP Not Eyeing Local Assets
--------------------------------------------------------------
Chile's Mining Minister Alfonso Dulanto indicated Tuesday that
state energy company Empresa Nacional del Petroleo (ENAP) won't
vie for the local assets of Royal Dutch/Shell, relates Dow Jones
Newswires. Enap, together with a closely held Peruvian
conglomerate, agreed to buy Shell's distribution assets in Peru
last month. Enap had been searching for an export market for its
fuels given the tight competition in the Chilean market.

The Peruvian deal marks the first time that Enap has entered the
retail fuels business, but similar deals - though possible
sometime in the future - won't happen in the near term, Dulanto
said.

Meanwhile, Shell is expected to sell its Chilean assets in a
move to consolidate investments in key countries such as Russia.
Local media have speculated that Brazilian state energy company
Petroleo Brasileiro (Petrobras) and Repsol YPF SA (REP) are the
most likely buyers of the Chilean operation.

Last week, Petrobras executives met industry peers in Chile as
Petrobras continued its quest for an asset purchase in the
Andean country, one of only three South American countries in
which it isn't yet active and whose energy market is a declared
target.



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

GRUPO MEXICO: Railway Unit Strikes Contract Deal With Workers
-------------------------------------------------------------
Grupo Mexico S.A. de C.V. announced Tuesday that its railway
subsidiary, Ferrocarril Mexicano (Ferromex), has satisfactorily
concluded its contractual negotiation with the National Railroad
Workers Union. In a press release, the Mexican copper mining and
railroad concern said that the contract revision covered wage
and benefits increases above inflation.

The agreement with Ferromex workers wrapped up Grupo Mexico's
domestic labor issues, after the company settled a strike late
last month at its La Caridad mining complex and averted another
at Cananea after weeks of negotiations.

Those strikes were in part over disagreements about profit
sharing.

On Tuesday, Grupo Mexico announced that Ferromex workers have
received profit sharing for the past five years, largely as a
result of "a new labor culture that has allowed greater
efficiencies, and above all continuous operations without labor
interruptions."

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President



=============
U R U G U A Y
=============

NUEVO BANCO: Fitch Assigns 'B' to LTFC Debt Rating
--------------------------------------------------
Fitch Ratings assigned a long-term foreign currency debt rating
of 'B' and a support rating of '4' to Uruguay's Nuevo Banco
Comercial S.A. (NBC.YY). The Rating Outlook on the long-term
debt rating is Stable.

The assigned ratings are based on the bank's broad franchise and
important position within the Uruguayan banking system, its good
liquidity, adequate capital levels, and its current shareholder,
the Uruguayan government. At the same time, the ratings also
consider the challenges presented by the process of
restructuring assets and liabilities that were acquired from
three liquidated entities (Banco de Montevideo, Banco Caja
Obrera y Banco Comercial) as well as the challenge of building
its business in the context of a weak operating environment. In
addition, given that NBC is owned by the government, its
relatively high public sector exposure and the risk of political
influence in the bank's management are also factored.

NBC was created by the Uruguayan government in order to purchase
recoverable assets from the three private financial institutions
that were liquidated during the banking crisis of 2002. The bank
offers universal banking services and ranks fourth largest in
the system and second largest among private banks with asset and
deposit market shares of roughly 9.4% and 8.4%, respectively.
NBC has one of the largest networks in Uruguay with 48 branches,
while internationally, it owns a subsidiary in Brazil, Banco
Comercial Uruguai.


                           ***********


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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