TCRLA_Public/040907.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, September 7, 2004, Vol. 5, Issue 177

                            Headlines



A R G E N T I N A

CABLEVISION: $725M Debt Workout Gets Timing Extension
CAPEX: Local Fitch Assigns CC(arg) Rating to $190M Debentures
COMPACT COMPANY: Court Rules In Creditor's Favor on Bankruptcy
CONYLOT: Proceeds Toward Asset Liquidation
DAJUEL S.R.L.: Liquidates Assets to Pay Debts

FABRIBOLS: Report Submission Schedule Set
HOLGER JENSEN: Bankruptcy Process Initiated by Court Order
HUECA S.A.: Seeks Reorganization Approval from Court
METROGAS: Extends Solicitation of Consents To Restructure Debts
N.S. COMERCIAL: Files Petition to Reorganize

PREVIAL S.A.: Court Declares Company Bankrupt
RIOMAR S.A.: Initiates Bankruptcy Proceedings
TELECOM PERSONAL: Debt Offer Gets Overwhelmeing Creditor OK
WAX S.R.L.: Court OKs Creditor's Bankruptcy Request
WILLIAM BLAKE: Court Approves Liquidation


B E R M U D A

DOLPHIN NETWORKS: Creditors. Contributories Meeting Set
NAVA NETWORKS: Creditors, Contributories to Meet Sept. 10
NAVA I HOLDINGS: Liquidator to Meet Creditors, Contributories
NAVA 1 NETWORKS: Court Sets Initial Meeting Dates
PETROLERA DEVON: Member Appoints Gail Chamberlain as Liquidator

PVM OIL: Files for Bankruptcy
SOMERSET CAPITAL: Transfering Operations in Malta


B O L I V I A

COEUR D'ALENE: Reports San Bartolome Project Update


B R A Z I L

CESP: Moves to Reduce Debt With New Share Sale
GERDAU: CEO, Senior VP to Give Up Posts in 2-3 Years
GUARANIANA: To Get $308M BNDES Loan Soon
ROYAL SHELL: Local Assets Not Going Under the Hammer
* BRAZIL: IMF Director Praises Structural Reform Agenda


C O L O M B I A

HORNASA: Forecasts Profits This Year


D O M I N I C A N   R E P U B L I C

CDEEE: Seeks Review on Various Contracts


M E X I C O

GRUPO MEXICO: Hires Banamex to Arrange $600M Syndicated Loan
LUZ Y FUERZA: Financial Crisis Solution Expected This Month


P E R U

FAMIA: Poor Sales Force Company to Restructure Debt


U R U G U A Y

* URUGUAY: Outlines Economic Policies to IMF


V E N E Z U E L A

AEROPOSTAL: Fares Rising Amid Escalating Oil Prices

     - - - - - - - - - -


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

CABLEVISION: $725M Debt Workout Gets Timing Extension
-----------------------------------------------------
A New York judge granted Argentina's Cablevision SA (CBV.YY) a
preliminary injunction to allow time to hear the cable
operator's petition for protection against U.S. creditor actions
while it seeks a debt restructuring, Dow Jones Newswires
reports, citing a filing with the bourse.

In the filing, the company, which is seeking to restructure
US$725 million in debt, said that the judge decided to hear its
petition on Sep. 14 under Bankruptcy Code Section 304, which
allows a court to prohibit and stay actions against both a
company and its property.

A creditor meeting to vote on the company's latest offer is
scheduled for Oct. 15. According to Dow Jones, Cablevision filed
the petition Wednesday and gained the judge's approval on the
same day.

The injunction, which will last until such time as the 304
petition's hearing is conducted and decided upon, "suspends the
proceedings of certain judicial actions against Cablevision in
the United States" and "initiation of similar procedures and
legal actions or other procedures against Cablevision or its
assets."

The ruling is designed to temporarily prevent actions against
the company that "persecute the payment and recovery of its
debt...that can create obstacles or difficulties for
Cablevision" in its efforts to "perfect the restructuring," the
company said.

Cablevision, which is owned by Liberty Media Corp. (L) and
private equity fund Hicks Muse Tate & Furst (HIX.XX), both of
the U.S., has sought an out-of-court debt restructuring under
Argentine law, known as an APE. The initial offering was
rejected in late 2003, but after terms were changed, Cablevision
said it had the two-thirds majority needed to move ahead with
the offer.

However, the vote count was found to be in error, and an
Argentine judge has since said the company must hold another
vote - the one set for October.

The process has been aggressively challenged by one of the
company's major creditors, New Jersey investment fund W.R. Huff
Asset Management, whose managing general partner, Bill Huff, is
said to own enough of the company's debt to block the
restructuring.

W.R. Huff Asset Management is the investment adviser to the
noteholders that comprise SHL Co., which filed suit against
Cablevision in U.S. District Court in Manhattan alleging the
company violated U.S. laws by issuing securities here and then
seeking to restructure the debts in Argentina.

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


CAPEX: Local Fitch Assigns CC(arg) Rating to $190M Debentures
-------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned its CC(arg)
local scale rating to US$190 million of debentures that gas
producer and power generator Capex plans to issue, reports
Business News Americas.

At the same time, the local arm of Fitch Ratings is maintaining
its D(arg) rating on US$80 million debentures already in
circulation.

As of April 2004, Capex's total financial debt stood at ARS823
million, of which 93% was in US dollars (US$275 million). The
dollar debt was made up of US$75.5 million in debentures, US$172
million bank debt and short-term debt - most of which had
matured - of US$6.6 million, reveals Business News Americas.

Matured and unpaid debt at the time reached US$227 million.

Capex produces gas and generates electric power at the well head
in Neuquen province.

CONTACT:  Capex SA
          5/F DepartmentC
          948/950 Av Cordoba
          Buenos Aires
          Argentina
          Phone: +54 11 4322 4884
          Home Page: http://www.capex.com.ar
          Contact:
          Enrique Gotz, Chairman
          Dr. Alejandro Enrique Gotz, Vice Chairman


COMPACT COMPANY: Court Rules In Creditor's Favor on Bankruptcy
--------------------------------------------------------------
Osecac successfully sought the bankruptcy of Compact Company
S.A. after Judge Fernandez, serving for Court No. 19 of Buenos
Aires' civil and commercial tribunal, declared the Company
"Quiebra," reports La Nacion. As such, the Company will now
enter the bankruptcy process with Mr. Alfredo Donatti as
trustee. Creditors of the Company must submit their proofs of
claim to the trustee before October 25, 2004 for authentication.
Failure to do so will mean disqualification from the payments
that will be made after the Company's assets are liquidated.

The creditor petitioned the court the Company failed to pay
debts amounting to US$32,701.93. Dr. Johnson, Clerk No. 38,
assists the court on the case, which will end with the
liquidation of all of its assets.

CONTACT: Compact Company S.A.
         Avenida Avellaneda 3057
         Buenos Aires


CONYLOT: Proceeds Toward Asset Liquidation
------------------------------------------
Conylot S.A.C.I.F.I.A. of Buenos Aires will begin liquidating
its assets after Court No. 12 of the city's civil and commercial
tribunal declared the company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee, Mr. Humberto Enrique Zaina.

The trustee will review claims forwarded by the company's
creditors until October 14, 2004. After claims verification, the
trustee will submit the individual reports for court approval on
November 25, 2004. The general report submission follows on
February 4 next year.

Clerk No. 23 assists the court on this case.

CONTACT: Mr. Humberto Enrique Zaina, Trustee
         Esmeralda 320
         Buenos Aires


DAJUEL S.R.L.: Liquidates Assets to Pay Debts
---------------------------------------------
Dajuel S.R.L. will begin liquidating its assets following the
bankruptcy pronouncement issued by Court No. 9 of Buenos Aires'
civil and commercial tribunal, Infobae reports. The bankruptcy
ruling places the company under the supervision of court-
appointed trustee, Mr. Shizue Matayoshi. The trustee will verify
creditors' proofs of claims until November 8, 2004. The
validated claims will be presented in court as individual
reports on December 21, 2004.

Mr. Matayoshi 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 March 4 next year.

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

CONTACT: Dajuel S.R.L.
         San Jose de Calasanz 234/238
         Buenos Aires

         Mr. Shizue Matayoshi, Trustee
         Viamonte 1337
         Buenos Aires


FABRIBOLS: Report Submission Schedule Set
-----------------------------------------
Ms. Marcela Adriana Folco, the trustee assigned to supervise the
liquidation of Fabribols S.R.L., will submit the validated
individual claims for court approval on November 26, 2004. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report on February 10
next year.

Infobae reports that Court No. 9 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
Clerk No. 18 assists the court on this case.

CONTACT: Fabribols S.R.L.
         Carlos Calvo 2654
         Buenos Aires

         Ms. Marcela Adriana Folco, Trustee
         Avda Rivadavia 10444
         Buenos Aires


HOLGER JENSEN: Bankruptcy Process Initiated by Court Order
----------------------------------------------------------
Court No. 6 of Cordoba's civil and commercial tribunal declared
Holger Jensen e Hijos S.H. bankrupt after the company defaulted
on its debt payments. The bankruptcy order effectively places
the company's affairs as well as its assets under the control of
court-appointed trustees, Mr. Oscar Santiago Luchino, Ms. Nora
Margarita Maldonado and Ms. Elsa Maria Tossen.

The trustees are tasked with verifying the authenticity of
claims presented by the company's creditors. The verification
phase closed Friday, September 3, 2004, reports Infobae.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on November 8, 2004. A general report will
also be submitted on March 18 next year. A completed settlement
plan will be presented for the approval of creditors on July 29,
2005.

CONTACT: Holger Jensen e Hijos S.H.
         Ruta Nacional 19 Km. 251
         Los Chanaritos Depto Rio Segundo
         Cordoba  
   
         Mr. Oscar Santiago Luchino
         Ms. Nora Margarita Maldonado
         Ms. Elsa Maria Tossen
         Trustees
         Coronel Olmedo 51
         Cordoba


HUECA S.A.: Seeks Reorganization Approval from Court
----------------------------------------------------
Court No. 18 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Hueca S.A., reports Argentine daily La Nacion.

The reorganization petition, if granted by the court, will allow
the Company to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

Clerk No. 35 assists the court on this case.

CONTACT: Hueca S.A.
         Treinta y Tres Orientales 1326
         Buenos Aires


METROGAS: Extends Solicitation of Consents To Restructure Debts
---------------------------------------------------------------
MetroGAS S.A. (the "Company") announced Friday that it is
further extending its solicitation (the "APE Solicitation") from
holders of its 9-7/8% Series A Notes due 2003 (the "Series A
Notes"), its 7.375% Series B Notes due 2002 (the "Series B
Notes") and its Floating Rate Series C Notes due 2004 (the
"Series C Notes" and, together with the Series A Notes and the
Series B Notes, the "Existing Notes") and its other unsecured
financial indebtedness (the "Existing Bank Debt" and, together
with the Existing Notes, the "Existing Debt"), subject to
certain eligibility requirements, of powers of attorney
authorizing the execution on behalf of the holders of its
Existing Notes of, and support agreements committing holders of
its Existing Bank Debt, to execute an acuerdo preventivo
extrajudicial (the "APE") until 5:00 p.m., New York City time,
on October 1, 2004, unless further extended by the Company.

APE Solicitation

As of 5:00 p.m., New York City time, on September 2, 2004,
powers of attorney and support agreements had been received with
respect to approximately U.S.$ 100,848,750 principal amount of
Existing Debt.

The APE Solicitation will remain in all respects subject to all
terms and conditions described in the Company's Solicitation
Statement dated November 7, 2003.

CONTACT:  MetroGAS S.A.
          Pablo Boselli, Financial Manager
          E-mail: pboselli@metrogas.com.ar
          Tel: 5411-4309-1511

          Citigate Financial Intelligence
          Lucia Domville
          E-mail: Lucia.Domville@citigatefi.com
          Tel: 201-499-3548

N.S. COMERCIAL: Files Petition to Reorganize
--------------------------------------------
N.S. Comercial Group S.A. filed a "Concurso Preventivo" motion,
reports La Nacion. The Company is seeking to reorganize its
finances following cessation of debt payments since September 1,
2003. The Company's case is pending before Court No. 13 of
Buenos Aires' civil and commercial tribunal, under Judge Villar.
Dr. Cardama, Clerk No. 26, assists the court on this case.

CONTACT: N. S. Comercial Group S.A.
         Paraguay 3535
         Buenos Aires


PREVIAL S.A.: Court Declares Company Bankrupt
---------------------------------------------
Judge Chomer declared local company Previal S.A. "Quiebra",
relates La Nacion. The court approved the bankruptcy petition
filed by Mr. Juan Carlos Sarno, to whom the Company failed to
pay debts amounting to US$40,000.

The Company will undergo the bankruptcy process with Mr. Eduardo
Vasini as trustee. Creditors are required to present their
proofs of claims to the trustee for verification before November
17, 2004. Creditors who fail to have their claims authenticated
by the said date will be disqualified from the payments that
will be made after the Company's assets are liquidated at the
end of the bankruptcy process.

Dr. Gigglberger, Clerk No. 20, assists the court on the case.

CONTACT: Previal S.A.
         Avenida Corrientes 659
         Buenos Aires

         Mr. Eduardo Vasini, Trustee
         Avenida Rivadavia 4783
         Buenos Aires


RIOMAR S.A.: Initiates Bankruptcy Proceedings
---------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal
declared Riomar S.A. de Construcciones Maritimas "Quiebra,"
reports Infobae. Ms. Isabel Ana Ramirez, who has been appointed
as trustee, will verify creditors' claims until December 9, 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
February 18, 2005 followed by the general report on April 01,
2005. Clerk No. 41 assists the court on the case, which will
close with the liquidation of the Company's assets to repay
creditors.

CONTACT: Riomar S.A. de Construcciones Maritimas
         25 de Mayo 347
         Buenos Aires

         Ms. Isabel Ana Ramirez, Trustee
         Presidente Peron 2082
         Buenos Aires


TELECOM PERSONAL: Debt Offer Gets Overwhelmeing Creditor OK
-----------------------------------------------------------
Telefonica Argentina SA's wireless division, Telecom Personal
SA, announced Friday it has reached a creditor agreement rate of
more than 99% on its debt exchange offer and that it aims to
finish its US$599 million restructuring without court approval.

Telecom Personal informed in a press release that under the
terms of its out-of-court agreement, or APE, an acceptance rate
higher than 95% allows the company to carry out the
restructuring without court approval.

The fact that the process won't go by court means that Personal
will be able to carry out its restructuring and balance its
accounts faster. The company said it will be announcing the
final results of the restructuring soon.


WAX S.R.L.: Court OKs Creditor's Bankruptcy Request
---------------------------------------------------
Wax S.R.L. entered bankruptcy after Judge Villar approved a
bankruptcy motion filed by Bayer S.A., reports La Nacion.
Working with Dr. Cardama, the city's Clerk No. 26, the court
assigned Mr. Ricardo Randrup as trustee for the bankruptcy
process.

The trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claims to the
trustee before October 10, 2004.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Wax S.R.L.
         Hipolito Yrigoyen 1144
         Buenos Aires

         Mr. Ricardo Randrup, Trustee
         Avenida Cordoba 1351
         Buenos Aires


WILLIAM BLAKE: Court Approves Liquidation
-----------------------------------------
William Blake Asociacion Civil prepares to wind-up its
operations following the bankruptcy pronouncement issued by
Court No. 12 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 Ms. Silvia Beatriz
Giambone as trustee. She will be reviewing creditors' proofs of
claims until October 14, 2004. The verified claims will be the
basis for the individual reports to be presented for court
approval on November 25, 2004. Afterwards, the trustee will also
submit a general report on February 4, 2005.

Clerk No. 23 assists the court on this case, which will end with
the disposal of the company's assets to cover its liabilities.

CONTACT: Ms. Silvia Beatriz Giambone, Trustee
         Roque Saenz Pea 651
         Buenos Aires



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B E R M U D A
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DOLPHIN NETWORKS: Creditors. Contributories Meeting Set
-------------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                                and

             IN THE MATTER OF Dolphin Networks Limited

Notice is hereby given that the first meeting of creditors of
Dolphin Networks Limited will be held at the offices of KPMG
Financial Advisory Services Limited, Crown House, 4 Par la Ville
Road, Hamilton, Bermuda September 24, 2004 at 11:00 a.m.

Also, the first meeting of contributories will be held at the
offices of KPMG Financial Advisory Services Limited on September
10, 2004 at 10:00 a.m.

Proxy forms to be used at the meeting have been mailed to all
known creditors and contributories and must be lodged with the
provisional liquidator at the offices of KPMG Financial Advisory
Services Limited on September 9, 2004 at 5:00 p.m.

Mr. Michael Morrison
Provisional Liquidator
August 24, 2004

CONTACT: KPMG
         Crown House
         4 Par la Ville
         Hamilton, HM 08
         Bermuda
         Tel.: +1 (441) 295-5063
         Fax: +1 (441) 295-9132
         E-mail: kpmg@kpmg.bm


NAVA NETWORKS: Creditors, Contributories to Meet Sept. 10
---------------------------------------------------------
               IN THE MATTER OF THE COMPANIES ACT 1981

                                and

               IN THE MATTER OF Nava Networks Limited

Notice is hereby given that the first meeting of contributories
in the above matter will be held at the offices of KPMG
Financial Advisory Services Limited, Crown House, 4 Par la Ville
Road, Hamilton, Bermuda September 10, 2004 at 10:15 a.m.

Also, notice is herby given that the first meeting of creditors
in the above matter will be held at the offices of KPMG
Financial Advisory Services Limited September 10, 2004 at 11:15
a.m.

Proxy forms to be used at the meeting have been mailed to all
known contributories and creditors and must be lodged with the
provisional liquidator at the offices of KPMG Financial Advisory
Services Limited on September 9, 2004 at 5:00 p.m.

Mr. Michael Morrison
Provisional Liquidator
August 24, 2004

CONTACT: KPMG
         Crown House
         4 Par la Ville
         Hamilton, HM 08
         Bermuda
         Tel.: +1 (441) 295-5063
         Fax: +1 (441) 295-9132
         E-mail: kpmg@kpmg.bm

         Web Site: http://www.kpmg.com/


NAVA I HOLDINGS: Liquidator to Meet Creditors, Contributories
-------------------------------------------------------------
               IN THE MATTER OF THE COMPANIES ACT 1981

                                and

               IN THE MATTER OF Nava 1 Holdings

Notice is hereby given that the first meeting of contributories
of Nava 1 Holdings will be held at the offices of KPMG Financial
Advisory Services Limited, Crown House, 4 Par la Ville Road,
Hamilton, Bermuda September 10, 2004 at 10:45 a.m.

Also, the first meeting of creditors of Nava 1 Holdings will be
held at the offices of KPMG Financial Advisory Services Limited
on September 10, 2004 at 11:45 a.m.

Proxy forms to be used at the meeting have been mailed to all
known contributories and creditors and must be lodged with the
provisional liquidator at the offices of KPMG Financial Advisory
Services Limited.

Mr. Michael Morrison
Provisional Liquidator
August 24, 2004

CONTACT: KPMG
         Crown House
         4 Par la Ville
         Hamilton, HM 08
         Bermuda
         Tel.: +1 (441) 295-5063
         Fax: +1 (441) 295-9132
         E-mail: kpmg@kpmg.bm


NAVA 1 NETWORKS: Court Sets Initial Meeting Dates
--------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                             and

          IN THE MATTER OF Nava 1 Networks Limited

NOTICE IS HEREBY GIVEN that the first meeting of contributories
of Nava 1 Networks Limited will be held at the offices of KPMG
Financial Advisory Services Limited, Crown House, 4 Par la Ville
Road, Hamilton, Bermuda on September 10, 2004 at 10:30 a.m.

In addition, the first meeting of creditors will also be held at
the offices of KPMG Financial Advisory Services Limited on
September 10, 2004 at 11:30 a.m.

Proxy forms to be used at the meeting have been mailed to all
known contributories and creditors and must be lodged with the
provisional liquidator at the offices of KPMG Financial Advisory
Services Limited by 5:00 p.m. on September 9, 2004.

Mr. Michael Morrison
Provisional Liquidator
August 24, 2004

CONTACT: KPMG
         Crown House
         4 Par la Ville
         Hamilton, HM 08
         Bermuda
         Tel.: +1 (441) 295-5063
         Fax: +1 (441) 295-9132
         E-mail: kpmg@kpmg.bm

         Web Site: http://www.kpmg.com/


PETROLERA DEVON: Member Appoints Gail Chamberlain as Liquidator
---------------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                             and

       IN THE MATTER OF Petrolera Devon (Columbia) Ltd.

These resolutions were duly passed by Written Resolutions of the
Sole Member of Petrolera Devon (Columbia) Ltd. on August 20,
2004:

(1) the Company be wound up voluntarily pursuant to the
provisions of the Companies Act, 1981; and

(2) Ms Gail E. Chamberlain, of "Milner House", 18 Parliament
Street, Hamilton, Bermuda be and is hereby appointed Liquidator
for the purposes of winding-up, such appointment to be effective
forthwith."

The appointed liquidator informs that the Creditors of the
Company are required on or before September 9, 2004, to send
their names and addresses and the particulars of their debts or
claims to the Liquidator of the Company and, if so required by
notice in writing from the said Liquidator, to come in and prove
their said debts or claims at such time and place as shall be
specified in such notice or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

Further, the Final General Meeting of the Sole Member of the
Company will be held at the offices of Cox Hallett Wilkinson at
Milner House, 18 Parliament Street, Hamilton, Bermuda, on
September 27, 2004 at 10:00 p.m. to take up:

(1) receiving an account showing the manner in which the
winding-up of the Company has been conducted and its property
disposed of and hearing any explanation that may be given by the
Liquidator; (

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

Ms. Gail E. Chamberlain
Liquidator
August 25, 2004

CONTACT: Ms. Gail E. Chamberlain
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


PVM OIL: Files for Bankruptcy
-----------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                             and

         IN THE MATTER OF PVM Oil Eastern Services Ltd.

Members of PVM Oil Eastern Services Ltd. passed these
resolutions on August 20, 2004:

(1) the Company be wound up voluntarily pursuant to the
provisions of the Companies Act, 1981; and

(2) Mr Ernest A. Morrison, of "Milner House", 18 Parliament
Street, Hamilton, Bermuda be and is hereby appointed Liquidator
for the purposes of winding-up.

Also, the provisional liquidator informs that the Creditors of
the Company are required to send their names and addresses and
the particulars of their debts or claims to the Liquidator of
the Company on or before September 9, 2004. If so required by
notice in writing from the said Liquidator, creditors are asked
to come in and prove their said debts or claims at such time and
place as shall be specified in such notice or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.

Further, the Final General Meeting of the Members of the above-
named Company will be held at the offices of Cox Hallett
Wilkinson at Milner House, 18 Parliament Street, Hamilton,
Bermuda, on September 27, 2004 at 10:00 p.m.

The members will meet to discuss:

(1) receiving an account showing the manner in which the
winding-up of the Company has been conducted and its property
disposed of and hearing any explanation that may be given by the
Liquidator;

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

Mr. Ernest A. Morrison
Liquidator
August 25, 2004

CONTACT: Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


SOMERSET CAPITAL: Transfering Operations in Malta
-------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                           and

    IN THE MATTER OF Somerset Capital Fund (Bermuda) Ltd.

Notice is hereby given that Somerset Capital Fund (Bermuda) Ltd.
intends to discontinue in Bermuda as per Section 132(G) of the
Companies Act 1981 and continue in Malta as if the Company had
been incorporated under the laws of Malta.



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B O L I V I A
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COEUR D'ALENE: Reports San Bartolome Project Update
---------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE) announced Friday
that, based on work completed to date by the independent
engineer at San Bartolome, the Company estimates capital
expenditures at San Bartolome to be approximately US $105
million and anticipates operating costs of approximately US
$3.55 per ounce of silver. Coeur has filed an updated technical
report in Canada that includes these estimates.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.

CONTACT:  Coeur d'Alene Mines Corporation
          Tony Ebersole, Director of Investor Relations
          Tel: +1-800-523-1535



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B R A Z I L
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CESP: Moves to Reduce Debt With New Share Sale
----------------------------------------------
Mauro Arce, chairman of the board of Sao Paulo state generator
CESP, revealed that the utility plans to sell new shares as part
of an effort to cut its debt, reports Business News Americas.
CESP will offer the shares in Brazil.

The company has US$3.4 billion in debt, 60% of which is dollar-
denominated. The company recently obtained a BRL1.2-billion loan
from the national development bank BNDES that will guarantee
debt payments to the federal government through June next year.
It is again in talks with BNDES and the federal treasury for new
financing.

CESP posted losses of BRL367 million (US$125mn) in the second
quarter of 2004, reversing net profits of BRL794 million in the
same year ago period.

The company, which has 7,500MW installed capacity, is seeking to
conclude the 1,980MW Porto Primavera hydroelectric complex this
year so that it can focus on the restructuring of its debts next
year.

CONTACT:    Companhia Energetica De Sao Paulo
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


GERDAU: CEO, Senior VP to Give Up Posts in 2-3 Years
----------------------------------------------------
Jorge Gerdau Johannpeter plans to quit his post as Chief
Executive Officer of Brazilian long steelmaking group Gerdau
(NYSE: GGB) in 2-3 years but will remain chairman of the board,
Business News Americas reports, citing a Gerdau spokesperson.

Frederico Gerdau Johannpeter, his brother, would also resign as
senior vice-president but continue as vice-chairman on the
board, the source added.

"This will be the second phase of the old generation stepping
aside for the younger ones," London-based financial newspaper
Financial Times quoted the CEO as saying.

The company's spokesperson said no decision has been made yet on
who will be Gerdau's successor. Possible candidates include two
family members who are currently VPs, Andre B. Gerdau
Johannpeter and Claudio Gerdau Johannpeter.

Jorge Gerdau insisted the group would remain under family
control.

"In the steel industry it is essential to have a consistent,
long-term policy and you can only assure that with firm
control," he told the newspaper. "For our shareholders it is
important to know who will answer the door when they come
knocking."

Citing sources close to Jorge Gerdau, FT said the current CEO
does not rule out a candidate from outside the family.

CONTACT: Press Office
        +55(51) 3323-2170
         imprensa@gerdau.com.br
         www.gerdau.com.br

         Web Site: www.gerdauameristeel.com


GUARANIANA: To Get $308M BNDES Loan Soon
----------------------------------------
Brazilian holding company Guaraniana is finalizing talks with
national development bank BNDES for the disbursement of a BRL905
million (US$308 million) loan to restructure its debt, Business
News Americas reveals. BNDES approved the loan in July as part
of the development bank's BRL3-billion bailout package to the
power distribution sector.

However, disbursement of the said loan is conditioned upon
electricity regulator Aneel's approval of a proposed solution
for power output problems at Guaraniana's two generation plants
- Termopernambuco and Termoacu. Guaraniana has been
restructuring debt since 2003, one of the conditions for the
BNDES loan.

As of June, the group's short-term debt stood at BRL810 million,
down from BRL2.4 billion in December 2003. The group is
targeting short-term debt of BRL500 million by year-end, says
the report.



ROYAL SHELL: Local Assets Not Going Under the Hammer
----------------------------------------------------
Anglo-Dutch oil company Royal Shell tried to quell rumors of a
possible sale of its Brazilian assets, reports Business News
Americas. In a memo sent to local employees, Shell's CEO in
Brazil, Aldo Castelli, said that the Brazilian assets of Shell
will not be included in the company's global asset-sale plan.

Shell has retail and exploration and production operations in
the country. In retail, the company has a 15% market share with
2,400 gas stations, making it the third largest retail chain in
the country.

In E&P, the company produces 60,000 barrels of oil a day from
the Bijupira-Salema oil field it operates in a joint venture
with Petrobras, and has hydrocarbon exploration licenses in 17
blocks in the country.


* BRAZIL: IMF Director Praises Structural Reform Agenda
-------------------------------------------------------
International Monetary Fund (IMF) Managing Director Rodrigo de
Rato made the following statement Friday in Brasilia:

"I am very pleased to be in Brazil, where I have had many
productive meetings. I was privileged to meet with President
Luiz Incio Lula da Silva, and I would like to thank his
Excellency for his warm welcome. I also met with Minister
Antonio Palocci and Central Bank President Henrique Meirelles.
Later this afternoon, I will meet with representatives from NGOs
and other members of the civil society.

"The advances made by the Brazilian government are very
impressive. President Lula's administration has adhered to
disciplined macroeconomic policies and developed an ambitious
structural reform agenda. These courageous policies have paid
off. Brazil's vulnerabilities have been reduced, and the
increased resilience has helped to weather recent global market
turbulences. GDP growth is now robust, benefiting from continued
strong export performance, a pick-up in domestic demand, and
rising wages and employment. Moreover, we strongly support the
government's commitment to strengthening social programs, which
is helping to ensure that all Brazilians benefit from improving
economic conditions. The IMF program is well on track, and our
Board will complete the eighth review later this month.

"My discussions with President Lula focused on the challenges
that lie ahead. I shared the president's optimism about the
prospects for growth in Brazil. We agreed that it was critical
to ensure that the current economic recovery is sustained into
the medium term through a continuation of prudent macroeconomic
policies and further progress on structural reforms, and
continued attention to ensuring that the least advantaged share
in the benefits of growth. Key priorities for reforms include
initiatives to reduce the cost of borrowing, improve Brazil's
attractiveness for private investment, and strengthen social
programs further.

"Increasing public investment also has an important role to play
for raising productivity and overcoming bottlenecks that are
hampering economic development. Given Brazil's still high level
of public debt, it will be crucial to maintain the government's
commitment to high primary surpluses, implying that over the
medium term the scope for a sustained increase in public
investment will have to come largely from shifting resources
from lower priority current spending. The current program
already provides room to accommodate higher investment by the
state oil company, Petrobras, and for additional investment in
high-quality sanitation projects. Looking ahead, there could be
some further limited room for modifying the fiscal objectives to
provide further space for public investment, provided that this
is done in a manner that is fully consistent with debt
sustainability. At the same time, it will be key to improve
project selection and evaluation and encourage higher private
investment in infrastructure through concessions, public-private
partnerships, and improvements in the regulatory environment.
The Fund is working closely with the Brazilian authorities as
well as with a number of other countries in the region on these
issues.

"The IMF certainly stands ready to offer Brazil its support and
expertise in helping to develop the country's vast economic
potential and improve the living standards of the population,
particularly for the most vulnerable segments of society. We
wish the government and the people of Brazil every success in
achieving their goal of a prosperous, inclusive, and equitable
country."

CONTACT: International Monetary Fund
         External Relations Department
         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278
         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772



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

HORNASA: Forecasts Profits This Year
------------------------------------
Ricardo Prada, CEO of Hornos Nacionales SA (Hornasa), expects
the Colombian iron and steel company to return to profitability
this year, reports Business News Americas. In 2002, Hornasa
announced that it did not expect to post profits for at least
five years as it paid total debts of US$10.7 million to
creditors such as the tax and customs agency DIAN, industrial
promotion institute IFI and Banco de Colombia.

The move allows the company to reschedule debt from the short to
long term with a lower interest rate, giving it more economic
freedom to operate, Prada said. Also, the improved metals market
will help the company to steer it back to profitability.

At the moment, Hornasa is reviewing the possibility of uniting
synergies with neighboring iron and steel company Paz del Rio,
one year after the proposal for mutual support was originally
posed, Prada said.

"At least the new Paz del Ro president [Alberto Hadad] already
knows of the plan. He knows we have the train line and we are
willing to do it," Prada said.

This plan may be at risk of failure with the equipment
acquisition, which Paz del Rio is about to announce.

However, Prada insisted that "[the plan] may work until they
have the whole process [installed], which they don't have yet -
they haven't even placed the purchase order."

Hornasa is situated in Sogamoso city, while Paz del Ro is in
Belencito. Both companies are in the country's central Boyaca
department.



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

CDEEE: Seeks Review on Various Contracts
----------------------------------------
DR1 Daily News reports that the administrative board of the
Dominican Republic's state power company CDEEE seeks to carry
out the following:

- a review of the terms under which the previous administration
bought back distributors Edenorte and Edesur from Spain's Union
Fenosa;

- a renegotiation of the contracts that govern the purchase of
electricity from the IPPs (Independent Power Producers), such as
Cogentrix, Smith-Enron or Monte Rio;

- a review of the infamous "Madrid Agreement" that fixed the
rates per kilowatt to all-time highs;

- an audit by the General Accounting Office of the operations
conducted in the previous administration, with a parallel audit
to be performed by an international company contracted
especially for this purpose; and

- an inventory of the two distributors' (Edenorte and Edesur)
assets.



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

GRUPO MEXICO: Hires Banamex to Arrange $600M Syndicated Loan
------------------------------------------------------------
Grupo Mexico SA (GMEXICOB MM), the world's third-biggest copper
producer, revealed Friday it hired Banamex, Citigroup Inc.'s
local unit, to arrange a US$600 million syndicated loan, relates
Bloomberg. The company's Minera Mexico SA unit will use the loan
to pay off US$881 million it owes to creditors, including 14
banks that participated in a previous syndicated loan.

"The conditions of the new loan reflect the significant
improvement in Minera Mexico's performance and will allow it to
decrease its cost of debt substantially and extend the period of
amortizations until the year 2009," the company said in a
statement.

The company has pledged to improve the financial profile of the
debt held by its subsidiaries. The miner cut US$650 million of
the debt held at its U.S. division, Asarco, to US$437 million
last year, and it hopes to soon reduce Minera Mexico's debt of
more than US$1 billion to US$800 million.

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


LUZ Y FUERZA: Financial Crisis Solution Expected This Month
-----------------------------------------------------------
Mexico's state-owned electricity company Luz y Fuerza del Centro
(LyFC) is expected to present to the Public Function Secretariat
and the Treasury Secretariat (SHCP) this month a strategy on how
to reverse the firm's technical and non-technical losses, says
El Economista. Losses (technical and non-technical) at LyFC
reportedly stand at approximately MXN13 billion (US$1.12
billion).

However, based on LyFC's financial statements, there is a
segment displaying accumulated losses of another MXN52.45
billion (US$4.55 billion), some 156% more than the MXN20.43-
billion (US$1.77 billion) budget allocated to the state-owned
firm for 2004.

Already, LyFC has embarked on various programs - including the
Loss Reduction Program (PREP), the Past-Due Portfolio Recovery
Program and the Power Station Reduction Program, and the
modernization of the Commercial Management System, etc. - to cut
losses, but to no avail.

Worse yet, the debtors of the company are slowly choking the
firm and preventing it from resolving its difficult financial
situation.



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

FAMIA: Poor Sales Force Company to Restructure Debt
---------------------------------------------------
Peruvian engineering company Fisa (Famia Industrial) seeks to
restructure its US$25 million debt after a prolonged drought in
sales has seriously hurt its bottom line.

According to local news source Gestion, the Company defaulted on
its debt payments in 2001. Since then, creditors have been
unwilling to support investment projects aimed at regaining
liquidity.

CONTACT: Famia Industrial
         Via Heroes de la Brena 2790
         Lima 100 - Peru.
         Apartado 1988
    
         Phones:
         (511) 326-7855
         (511) 326-3774
         (511) 326-3729
         (511) 326-6030
         E-mail: famiacom@amauta.rcp.net.pe



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

* URUGUAY: Outlines Economic Policies to IMF
--------------------------------------------
The following item is a Letter of Intent [dated August 12, 2004]
of the government of Uruguay, which describes the policies that
Uruguay intends to implement in the context of its request for
financial support from the IMF.

Mr. Rodrigo de Rato
Managing Director
International Monetary Fund
700 19th Street NW
Washington DC

Dear Mr. de Rato:

Since the completion of the fourth review under the Stand-By
Arrangement last February, the Uruguayan economy has staged an
impressive recovery, and is expected to grow by at least 7
percent in 2004. Financial indicators have also continued to
strengthen. Available data indicate that the quantitative
performance criteria (PCs) under the program for end-June on
NIR, NDA, and general government noninterest expenditure have
been observed, as were the end-March PCs on the public sector
primary surplus and the nonfinancial public sector gross debt.

This performance reflects the macroeconomic and structural
policies that the Uruguayan government has implemented since the
onset of the financial crisis. The government remains firmly
committed to consolidating the gains achieved so far and to
completing the objectives of the program, through continued
sound fiscal and monetary policies and the implementation of
measures to strengthen further the financial system.

The attached Supplement to the Memorandum of Economic and
Financial Policies updates the economic program of the
government of Uruguay through the end of the Stand-By
Arrangement in March 2005, and establishes end-September and
end-December quantitative performance criteria and structural
performance criteria within that period. The last purchase under
the arrangement is subject to a program review to be completed
by mid-February 2005.

In support of its program, the government requests:

(i) completion of the fifth review under the Stand-By
Arrangement, with availability of a purchase equivalent to SDR
139.8 million;

(ii) waivers of applicability of the end-June performance
criteria on the combined public sector primary balance and the
nonfinancial public sector gross debt, for which data would not
be available by the time of the Board meeting;

(iii) waivers of nonobservance of the end-March 2004 structural
performance criteria on the outsourcing of assets of liquidated
banks and the contracting of specialized asset recovery services
for the fiduciary trust of the public bank BROU. The waivers of
nonobservance of the two structural performance criteria are
requested on the basis of the remedial measures that have been
implemented and our commitment to maintain the policy framework
established under the program. In particular, the structural
performance criterion on BROU's contracting of specialized
services was observed with only a slight delay.

We also request a rephasing of the remaining purchases under the
arrangement (Table A), including a final review of the program
to be held in February 2005. With the improvement of Uruguay's
economic outlook and external position, we have decided to forgo
the purchase originally envisaged for August and reduce the
total remaining access by SDR 139.8 million.

The Government of Uruguay is confident that the policies set out
in the attached Supplement will ensure the success of the
program and justify the requested waivers and completion of the
review. The continued support of the international financial
institutions will be fundamental in sustaining the economic
recovery and maintaining financial stability. The Government
stands ready, in consultation with the Fund, to take additional
measures necessary to ensure the success of the program.

Sincerely yours,

Julio de Brun
President
Central Bank of Uruguay

Isaac Alfie
Minister of Economy and Finance
Oriental Republic of Uruguay

To view supplement: http://bankrupt.com/misc/Table.htm

CONTACT: International Monetary Fund
         External Relations Department
         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278
         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772



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

AEROPOSTAL: Fares Rising Amid Escalating Oil Prices
---------------------------------------------------
Struggling to stay afloat in an increasingly challengin economic
climate, Venezuelan airline Aeropostal will raise fares
beginning this month, reports Dow Jones. In a statement, the
airline said it will charge an additional VEB13,000
($1=VEB1,920) for each domestic flight and US$10 for
international flights.

Aeropostal said gasoline prices for its fleet of planes have
increased 25% since May 2004.

"Everything seems to indicate those prices will remain high for
various months," the statement read. "The increase is necessary
for our survival."

CONTACT:  Administrative Office
          TORRE POLAR OESTE
          Avenida Paseo Colon
          Torre Polar Oeste
          Piso 22, Plaza Venezuela
          Los Caobos, Caracas - Venezuela
          Telefono Master: (058)-0212-708.62.11
          Fax: (058)-0212-782.63.23



                            ***********


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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