TCRLA_Public/040917.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, September 17, 2004, Vol. 5, Issue 185



AIRSYS S.A.: Asks Court for Reorganization
EDESUR: Fitch Rates Proposed $120M Bond Issue BBB
ENRIQUE CALCAGNO: Gets Court Ok for Reorganization
GATIC: Judge's Bankruptcy Ruling Surprises Creditors

GRANJA LOS TILOS: Court Grants Reorganization Plea
LOCK SECURITY: Court Orders Liquidation
METALURGICA VIALE: Individual Reports Up for Submission
METROGAS: S&P Maintains Junk Rating Assigned to Various Bonds
PESQUERA AUSTRAL: General Report Due Today

REJIAR: Claims Verification Period Closes
TELEFONICA DE ARGENTINA: To Spend $16.6M In Fiber-Optic Network
TGS: $400M in Bonds Remain at Junk Level


FOSTER WHEELER: Recalculates Interest on New Notes to 10.422%
GLOBAL CROSSING: Provides Telecom Services to CIMSA
NORTHERN OFFSHORE: Restructuring Plan Gets Bondholders' OK


LIGHT: Restructures $650M Debt With Creditors


ENAMI: Back in the Black With $9M Profits


TERMOEMCALI: S&P Cuts Ratings To `D'


JPSCo: Mirant Settles Issues on Technical Loan Breach


CYDSA: Shareholders OK $167M Capital Hike
EMPRESAS ICA: Unit Wins $684M Refinery Overhaul Contract
GRUPO POSADAS: To Issue $150M Senior Notes Due 2011
HOST MARRIOTT: S&P Rates Amended $575M Facility B+

P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: To Elect Directors at Sept. 30 AM


CANTV: Works with Alcatel to Develop Networks
PDVSA: Former Workers Claim They Are Owed $1.3B

     -  -  -  -  -  -  -  -


AIRSYS S.A.: Asks Court for Reorganization
Airsys S.A., a company operating in Buenos Aires, requested
reorganization after defaulting on its debt obligations. The
reorganization petition, once approved by the court, will allow
the company to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

The case is pending before court no. 4 of the city's civil and
commercial tribunal. Clerk no. 8 assists on this case.

CONTACT: Airsys S.A.
         Viamonte 1454
         Buenos Aires

EDESUR: Fitch Rates Proposed $120M Bond Issue BBB
The Argentine arm of credit ratings agency Fitch Ratings
assigned a BBB rating to local power distributor Edesur SA's
proposed US$120-million bond issue, reports Business News
Americas. The outlook is stable.

Concurrently, Fitch confirmed the local scale BBB rating on
Edesur's US$450 million debentures program, under which the
bonds will be issued.

The rating reflects successful refinancing carried out in 2003
and 2004, which stretched the maturity of Edesur debts, as well
as an improvement in the company's liquidity.

Edesur proposes to issue up to US$120 million bonds in two
series - Classes 5 and 6. Details of the offering will be
presented to a group of selected banks and private investors
this week, Business News Americas reports, citing a company

Bond issue proceeds will be used to finance investments and to
pay debt in US dollars, thereby increasing the portion of debt
in pesos, which reduces the company's exposure to the exchange
rate, Fitch said.

Edesur reported net losses of US$2.3 million for the first half
of 2004 and Net Equity of ARS2.1 billion as of June 30, 2004.

Edesur holds an exclusive license to provide electricity
distribution services in the central and southern areas of
Buenos Aires as well as the southeastern portion of the Greater
Buenos Aires area. It serves a population of over 6 million
people making it the largest electric distribution outfit in
Argentina in terms of volume distributed.

CONTACT: Edesur S.A.
         San Jos, 140
         Buenos Aires
         Tel: 4383-0200

ENRIQUE CALCAGNO: Gets Court Ok for Reorganization
Enrique Calcagno S.R.L. will begin reorganization proceedings
following the approval of its petition by court no. 3 of Junin's
civil and commercial tribunal. The opening of the reorganization
will allow the company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Mr. Luis A. Mathieu will oversee the reorganization proceedings
as the court-appointed trustee. He will verify creditors' claims
until October 15, 2004. The validated claims will be presented
in court as individual reports on November 5, 2004.

The trustee is also required by the court to submit a general
report essentially auditing the company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on December 15, 2004.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on April 25 next year.

CONTACT: Mr. Luis A. Mathieu, Trustee
         P. Respuela 321

Court no. 12 of Buenos Aires' civil and commercial tribunal
declared local company Equipamientos Profesionales S.A.
bankrupt, says Clarin. The ruling comes in approval of the
bankruptcy petition filed by the Company's creditor, Mr. Carlos
Alonso, for nonpayment of US$9,008.60 in debt.

Clerk No. 23 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

CONTACT: Equipamientos Profesionales S.A
         Pieres 1965
         Buenos Aires

GATIC: Judge's Bankruptcy Ruling Surprises Creditors
Buenos Aires Civil and Commercial Judge Juan Manuel Gutierrez
Cabello declared textiles and apparel company Gatic bankrupt at
the behest of a creditor whose name has not been disclosed,
reports La Nacion.

The court's declaration stunned creditors, which were
negotiating for the reopening of four of the company's plants in
Buenos Aires and the reinstatement of 2,500 workers. The plants
were set to return to operation under the management of US-based
Indular, which is headed by Argentine businessmen Guillermo
Gotelli. Earlier, Mr. Gotelli said he would invest US$25 million
in Gatic.

The three main creditors of Gatic are the state-owned banks
Banco de la Nacion and Banco Ciudad and a Buenos Aires trust

GRANJA LOS TILOS: Court Grants Reorganization Plea
Granja Los Tilos Zarate S.R.L., a company operating in Zarate-
Campana, successfully petitioned for reorganization after court
no. 1 of the city's civil and commercial tribunal issued a
resolution opening the company's insolvency proceedings.

Under insolvency protection, the company will continue to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee.

Infobae relates that Mr. Daniel E. Masaedo will serve as trustee
during the course of the reorganization. The firm will be
accepting creditors' proofs of claims for verification until
September 30, 2004.

After the verification deadline, the trustee will prepare the
individual reports and submit it in court on November 11, 2004.
The firm will also present a general report for court review on
December 27, 2004.

CONTACT: Mr. Daniel E. Masaedo, Trustee
         Belgrano 156

LOCK SECURITY: Court Orders Liquidation
Lock Security S.A. prepares to wind-up its operations following
the bankruptcy pronouncement issued by court no. 14 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

Infobae reports that the court appointed Mr. Alberto Jorge
Rotenberg as trustee. He will be reviewing creditors' proofs of
claims until November 16, 2004. The verified claims will be the
basis for the individual reports to be presented for court
approval on December 30, 2004. Afterwards, the trustee will
submit a general report on March 14 next year.

Clerk No. 27 assists the court on this case, which will end with
the disposal of the company's assets to repay its debts.

CONTACT: Mr. Alberto Jorge Rotenberg, Trustee
         Avda Cordoba 1336
         Buenos Aires

METALURGICA VIALE: Individual Reports Up for Submission
Mr. Juan Carlos Pitrelli, the trustee supervising the
Metalurgica Viale S.R.L. bankruptcy, will submit individual
reports from the case today.

These reports, based on claims forwarded by the Company's
creditors during the verification period, will be used in
determining the list of creditors eligible for post-liquidation

Court No. 5 of Buenos Aires civil and commercial tribunal
handles this case with the assistance of clerk no. 9

CONTACT: Mr. Juan Carlos Pitrelli, Trustee
         Avda de Mayo 1343
         Buenos Aires

METROGAS: S&P Maintains Junk Rating Assigned to Various Bonds
The Argentine arm of Standard & Poor's International Ratings,
Ltd. reaffirms the `raD' rating assigned to various corporate
bonds issued by natural gas distributor Metrogas SA, the CVN
reveals on its Web site.

The action affects the following bonds:

- US$130 million worth of bonds described as " Serie C por U$S
130.000.000 dentro del Programa Global de U$S 600 millones," and
which matured on May 7, 2004;

- EUR110 million worth of bonds described as "Serie B por euros
110 millones" and which matured on Sep. 27, 2002;

- US$100 million worth of bonds described as "Serie A por U$S
100.000.000 dentro del Programa Global de U$S 600 millones" and
which matured on April 1, 2003; and

- US$600 million worth of bonds described as "obligaciones
negociables simples" with undisclosed maturity date.

The rating action is based on Metrogas' financial status as of
June 30, 2004.

An obligation is rated 'raD' when it is in payment default, or
the obligor has filed for bankruptcy, said the S&P. The rating
is used when interest or principal payments are not made on the
date due, even if the applicable grace period has not expired,
unless S&P believes that such payments will be made during such
grace period.

Spain's Repsol-YPF SA (REP) and the U.K.'s BG Group PLC (BRG)
control 70% of Metrogas.

          Gregorio Araoz de Lamadrid 1360
          Buenos Aires
          CPA C 1267
          Phone: +54 11 4309 1010
          Fax:  +54 11 4309 1025

          Web Site:

PESQUERA AUSTRAL: General Report Due Today
A general report on the Pesquera Austral S.A. bankruptcy case is
due for court submission today, September 17, 2004. The general
report, prepared by trustee Ernesto Luis Hilman, provides the
court with an audit of the Company's accounting and business

Court no. 14 of Buenos Aires' civil and commercial tribunal
handles this case with the assistance of clerk no. 27. The
Company's bankruptcy case will close with the liquidation of its
assets to pay its creditors.

CONTACT:  Mr. Ernesto Luis Hilman, Trustee
          Viamonte 1446
          Buenos Aires

REJIAR: Claims Verification Period Closes
Creditors of bankrupt Rejiar S.A. have until today to present
proofs of their claims to court-appointed trustee Federico
Mansbach. Failure to comply with the verification deadline will
mean disqualification from any post-liquidation payments to be

Rejiar entered bankruptcy upon the petition of its creditor
Cooperativa Concred de Credito y Vivienda Ltda for ARS4,956.22
in unpaid debts.

Judge Braga of Buenos Aires' civil and commercial tribunal court
no. 22 has jurisdiction over this case.

         Joaquin V. Gonzalez 3804, Piso 3o
         Buenos Aires

         Mr. Federico Mansbach, Trustee
         Tucuman 1506, Piso 4o "402"
         Buenos Aires

TELEFONICA DE ARGENTINA: To Spend $16.6M In Fiber-Optic Network
Argentine Planning Minister Julio de Vido revealed that
Telefonica de Argentina plans to invest US$16.6 million in a
fiber-optic network that would link the cities of Comodoro
Rivadavia and Ushuaia, reports Business News Americas.

The official, who spoke about the project after meeting with
President Nestor Kirchner, Telefonica de Argentina chief Mario
Vazquez and executives from other multinational companies, said
the project will employ "some 1,000 people for close to a year."

With this kind of project, residents of Ushuaia and Comodoro
Rivadavia will have direct telephone access to the rest of the
country and the world, De Vido said.

Telefonica de Argentina reported a US$31 million net loss for
the six-month period ended June 30, 2004.

          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page:

TGS: $400M in Bonds Remain at Junk Level
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
reaffirms the `raD' rating on corporate bonds issued by
Transportadora de Gas del Sur S.A. (TGS), says the CNV.

The bonds affected are:

- US$300 million worth of bonds described as "Programa Global de
2000" with undisclosed maturity date;

- US$500 million worth of bonds described as "Programa Global de
1999" with undisclosed maturity date; and

- US$100 million worth of bonds described as "Obligaciones
Negociables emitidas bajo el Programa Global de T­tulos de Corot
y Mediano Plazo por USD 500 Mio, vencido en diciembre de 1998."
This issue expired in December 2, 2002.

The rating action is based on the Company's financial status as
of June 30, 2004.

TGS's operates the largest gas pipeline system in Latin America
capable of transporting 2.2 billion cubic feet per day
("bcf/d"). Its system connects the main gas fields in the south
and west areas of Argentina with the gas distributors in the
city of Buenos Aires and other areas.

CONTACT: Transportadora de Gas del Sur S.A.
         Don Bosco 3672, 5th Floor
         1206 Capital Federal
         Buenos Aires,
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         Web Site:


FOSTER WHEELER: Recalculates Interest on New Notes to 10.422%
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday 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 17, 2004, the New Notes will bear interest at a rate
of 10.422% 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 rates
previously announced.

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.
Tel: 212-440-9800(bankers and brokers)
     800-891-3214(all other security holders)

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
Tel: 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)
(2) the Schedule TO (File No. 005-79124).

These and any other documents relating to the proposed exchange
offer, when they are filed with the SEC, may be obtained free at
the SEC's Web site at

The foregoing reference to the exchange offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer
to sell or exchange any securities in Foster Wheeler Ltd. or any
of its subsidiaries.

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.

         Ms. Maureen Bingert
         Tel: 908-730-4444
         Mr. John Doyle
         Tel: 908-730-4270
         Other Inquiries:
         Tel: 908-730-4000

         Web Site:

GLOBAL CROSSING: Provides Telecom Services to CIMSA
Global Crossing (NASDAQ: GLBCE) announced Wednesday a service
agreement signed in February to provide managed IP VPN services
and International Private Line (IPL) to Centro Interaccion
Multimedia S.A. (C.I.M.S.A.), a growing Argentine offshore
contact center company that provides high-quality contact center
services to international clients.

As a result of the agreement, Global Crossing Managed IP VPN
Service will provide data transmission for C.I.M.S.A's customer
support software applications over the company's seamless,
fiber-optic network. This will provide C.I.M.S.A. the
performance and security of a private network while capitalizing
on the flexibility, scalability and economics only available in
a shared network environment. Similarly, Global Crossing's IPL
service will carry voice traffic between C.I.M.S.A's contact
centers in Cordoba, Argentina, and customers in the United
States in a reliable and efficient manner.

"Our clients require fast and accurate customer support and
services," said Humberto Sahade, executive director for
C.I.M.S.A. "We were looking for a first-class IP VPN IPL and
service provider to meet the demands of our clients, and we are
pleased to see that the reach and capabilities of Global
Crossing's worldwide network have enabled us to better serve our
customers' international requirements."

"Enterprises like C.I.M.S.A. require the highest level of
reliability, and Global Crossing delivers it," said Pablo
Mlikota, Global Crossing's vice president of enterprise sales
for Latin America, Caribbean and the southeastern United States.
"We met and exceeded C.I.M.S.A's expectations in terms of
delivery timeframe, competitive price and service quality."

C.I.M.S.A. will also benefit from Global Crossing's Managed
Services, which provide full end-to-end turnkey service
lifecycle support for IP VPN, including 24-hour customer
service, engineering and design, equipment procurement,
installation and maintenance and network monitoring. Global
Crossing's Managed Services build upon Global Crossing's success
in supporting more than 10,000 routers worldwide.

Global Crossing IP VPN service is a feature-rich IP VPN solution
that provides enterprises and carriers worldwide with three
classes of service and multiple access options in a highly
secure platform that provides a roadmap for the convergence of
voice, video, Internet and data traffic onto a single

"This agreement is another example of Global Crossing's
leadership in delivering innovative network services that
support a truly unique customer experience," said Mlikota. "We
are excited to count C.I.M.S.A. among our customers as we
continue to expand our business in Latin America."

Available in more than 500 cities and 50 countries, Global
Crossing provides one of the most powerful and versatile IP VPN
solutions available today, providing true global reach, wider
connectivity, multiple access and billing options, and
supporting integrated corporate data, VoIP, IP Video and
Internet access, all over the same connection.

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

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

CONTACT: Press Contacts:
         Ms. Fernanda Marques
         Tel: + 55 21-3820-4712

         Ms. Kirstie Phimister
         Tel: + 44 (0) 1256-734063

         Analysts/Investors Contact:
         Mr. Mitch Burd
         Tel: +1 800-836-0342

         Web Site:

         Ms. Mariana Caviglione
         Tel: + 54 11-4775-8181

NORTHERN OFFSHORE: Restructuring Plan Gets Bondholders' OK
Mike Morrison and Philip Wallace, the joint provisional
liquidators (the "JPLs") of Northern Offshore Limited ("NOL"),
have announced that NOL has entered into an agreement with a
significant majority of the holders of NOL's outstanding US
dollar notes and Norwegian kroner bonds, which is expected to be
sufficient to achieve a financial restructuring of the company.
The agreement follows a review by the JPLs of the restructuring
options available to the company following their appointment by
the Supreme Court of Bermuda on 13 July 2004.

Under the terms of the restructuring agreement, NOL's
bondholders will receive at least 98% of the post-restructuring
share capital of the Northern Offshore group in settlement of
their debts. The agreement provides for a number of ways of
achieving this, including through the implementation of a scheme
of arrangement in Bermuda. The bondholders who have signed up to
the agreement have agreed to vote in favour of a restructuring
on these terms at the relevant meetings of NOL's creditors and
bondholders which will be held in due course to implement the

Prior to the appointment of the provisional liquidators, the
informal committee of NOL's bondholders (the "Committee") were
prepared to support a consensual restructuring of the company
which allowed shareholders to retain 5% of the company's share
capital.  However, no acceptance of this was forthcoming.
Following the JPLs' appointment, the Committee indicated to the
JPLs that they would still be prepared to support a
restructuring which would provide for the listing on the Oslo
Stock Exchange being maintained and for 2% of the post-
restructuring share capital being retained by NOL's existing
shareholders. However, approval at a shareholders' meeting of
NOL would be necessary to implement such a restructuring.  The
JPLs wrote to NOL's largest shareholder, World Shipholding Ltd
("World"), to see if it wished to accept this offer, but to date
have received no reply.

While the agreement reached with a significant majority of the
bondholders does allow for the possibility of existing
shareholders retaining a 2% interest in the company, the lack of
any positive response from World has led the JPLs to conclude
that this form of restructuring would be unlikely to receive the
appropriate level of support from shareholders.  Consequently
the JPLs intend to propose an alternative restructuring whereby
bondholders will own 100% of the post-restructuring share
capital in the Northern Offshore group. Under such a proposal it
will not be possible to maintain NOL's current listing.

Mike Morrison said: "We are delighted to have already reached
agreement with a majority of the company's bondholders, and to
provide some clarity to creditors, suppliers and customers for
the company's restructuring going forward.  Meanwhile, the
business is continuing as normal."

Mr Morrison continued: "Given that the company has entered into
a non-consensual insolvency process, the possibility for
shareholders to receive anything at all is most unusual.  In the
absence of support from the main shareholder, World Shipholding
Limited, we cannot justify spending further time and cost
pursuing a consensual deal that leaves 2% for shareholders."

It is currently expected that the terms of the scheme of
arrangement will be finalized and sent to bondholders in

Bondholders who wish to receive more information about the
restructuring agreement should contact the London office of
Bingham McCutchen LLP, the law firm acting for the Committee.

CONTACT: Northern Offshore Limited (in provisional liquidation)
         c/o KPMG Financial Advisory Services Limited
         Crown House
         4 Par-la-Ville Road
         Hamilton HM 08

         Tel: +1 441 294 2653
         Fax: +1 441 295 8280

         Mr. Adrian Bourne
         KPMG in London
         Tel: (+ 44 (0) 207 694 3018)

         Mr. Chris Giddens
         KPMG Financial Advisory Services Limited in Bermuda
         Tel: (+ (1) 441 294 2653)

         Ms. Judith Dow
         KPMG Corporate Communications (London)
         Tel:  0207 694 8584
         Mobile: 07786 197 718
         KPMG Press Office: 0207 694 8773

         Mr. Phil Knott
         Mr. James Terry
         Bingham McCutchen LLP
         Tel: + 44 (0)20 7661 5300


LIGHT: Restructures $650M Debt With Creditors
Brazilian power distributor Light Servicos de Eletricidade
(E.LSE), a unit of Electricte de France (EdF), struck an accord
with creditors to restructure some US$650 million in debt,
reports financial daily Valor Economico.

About two-thirds of the debt would have matured at the end of
the year, but Light creditors have agreed to extend the debt for
four-and-a-half years.

With the agreement, Light moves a step closer to becoming
eligible for about US$200 million in financing under a
government program being administered by Brazil's state-run
development bank, the BNDES.

EdF's chief executive in Brazil, Eduardo Vieira, told Valor that
Light will meet other requirements and apply for the financing
before the end of the month.

Light operates in 31 municipalities in Rio de Janeiro state,
including the capital city.

          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


ENAMI: Back in the Black With $9M Profits
The negative impact of Enami's US$454-million debt didn't
prevent the Chilean state mining company from posting profits in
the first six months of 2004.

According to El Mercurio, Enami reported profits of US$9 million
during the period, reversing losses of US$19 million in the
first half of 2003. The company attributed good results to the
rising cathode copper future prices and lower production costs.

Operating profits increased to US$18.39 million in the first
half of the year against US$4.56 million in the same year-ago
period, while non-operating losses narrowed to US$9.27 million
from US$23.82 million.

The Chilean Senate was due to vote on Sep. 15 a bill, which
would pave the way for the transfer of Enami's Ventanas Smelter
to state company Codelco. But due to undisclosed circumstances,
the voting was postponed to a yet-to-be determined date.

A Ventanas transfer would shave as much as US$30 million off
Enami's US$160 million debt from unpaid taxes.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Home Page:
          Jorge Rodriguez Grossi, President


TERMOEMCALI: S&P Cuts Ratings To `D'
Standard & Poor's Rating Services lowered its rating on
TermoEmcali Funding Corp.'s US$165 million senior secured notes
to 'D' from 'CC'.

The rating action follows the Colombian company's failure to
make the Sept. 15, 2004, debt service payment of about $5.4
million on its 10.125% senior notes due 2014.

In November 2003, TermoEmcali and Empresas Municipales de Cali
(Emcali), the project's offtaker, signed a memorandum of
understanding (MOU), while pursuing an orderly restructuring of
the obligations under the power purchase agreement (PPA). The
MOU expired on June 30, 2004, and although the parties have
discussed extending it, Emcali has indicated it would not
continue payments under the MOU until an Energy Purchase
Agreement, substituting the former PPA, is signed. In light of
the suspension of payments by Emcali under both the PPA and the
MOU, TermoEmcali did not have adequate liquidity to make the
entire debt service payment scheduled for Sept. 15, 2004.

TermoEmcali owns a 234-MW, combined-cycle, natural gas-fired
power generation facility in Colombia that sells capacity and
energy to Emcali under a PPA. Emcali is a Colombian municipal
utility that provides diversified services to two million
inhabitants in and around Santiago de Cali. The owners of the
project company include Emcali, subsidiaries of InterGen
(InterGen is owned by subsidiaries of Bechtel Enterprises and
Royal Dutch Shell), Inversiones INCA, and Corporacion Financiera
del Pacifico (local Cali business groups).

ANALYST:  Federico Mora, Mexico City (52) 55-5081-4436
          Fabiola Ortiz, Mexico City (52) 55-5081-4449


JPSCo: Mirant Settles Issues on Technical Loan Breach
In February 2004, Jamaica Public Service Company Limited, in
which bankrupt U.S.-based Mirant Corporation has an 80%
ownership interest, entered into a $30 million, 7-year
amortizing credit facility ("2004 RBTT credit facility") with
RBTT Merchant Bank Limited. The proceeds from this facility were
used to replace the construction financing of the Bogue
construction project completed in 2003. The loans are non-
recourse to Mirant Corporation. The loan agreements contain a
number of covenants, including:

  (i)   restrictions on change of control;

  (ii)  restrictions on the issuance or purchase of
        borrower's shares;

  (iii) limitations on transactions with affiliates;

  (iv)  limitations on the incurrence of new debt; and

  (v)  limitations on dividends.

Jamaica Public Service Company Limited is also party to a
separate $30 million, 7-year amortizing credit facility with
RBTT Merchant Bank Limited entered into in 2003 ("2003 RBTT
credit facility") and a $45 million, 12-year amortizing credit
facility with International Finance Corporation ("IFC credit

In connection with the 2004 RBTT, 2003 RBTT and IFC credit
facilities, Jamaica Public Service Company Limited was required
to obtain and register a title related to property on which the
120MW facility at Bogue is situated to facilitate registration
of the lenders' mortgages.

At December 31, 2003, Jamaica Public Service Company Limited had
secured title and was actively working with the lender's local
attorneys to register the mortgages, but had not finalized the
registration at that time, which represented a breach of the IFC
credit facility and a potential breach of the 2004 RBTT and 2003
RBTT credit facilities.

As a result, the Company included amounts outstanding under the
2003 RBTT and IFC credit facilities in the current portion of
long-term debt on its condensed consolidated balance sheets at
December 31, 2003.

In June 2004, the registration of the mortgage was finalized and
the amounts outstanding under the 2004 RBTT, 2003 RBTT and IFC
credit facilities were reclassified to long-term debt on its
condensed consolidated balance sheets at June 30, 2004.


CYDSA: Shareholders OK $167M Capital Hike
Shareholders of Mexican chemicals and fibers company Cydsa SA
(CYDSASA.MX) approved a US$167-million capital increase via new
shares, reports Reuters.

The capital increase, which will allow the company to reduce its
debt to around US$200 million, is expected to be completed
before the end of the year, Cydsa chairman Tomas Gonzalez said.

Cydsa reported debt of US$380.6 million at end June.

          Ave. Ricardo Margain Zozaya # 565
          Parque Corporativo Santa Engracia, Edificio B,
          66267 Garza Garc­a, Nuevo Leon

          Mr. Oscar Casas Kirchner
          Financing Manager
          Direct Phone: (52) (81) 81-52-46-04
          Fax: (52) (81) 81-52-48-13

          Mr. Alberto Balderas Calderon
          Administrative Information Manager
          Direct Phone:(52) (81) 81-52-46-08
          Fax: (52) (81) 81-52-48-13

          Web Site:

EMPRESAS ICA: Unit Wins $684M Refinery Overhaul Contract
ICA Fluor, the industrial engineering company jointly owned by
Mexico's Empresas ICA Sociedad Controladora (NYSE: ICA) and
Fluor Corporation (NYSE: FLR), was awarded a US$684 million
refinery upgrade project by
state oil monopoly Pemex.

The contract, according to Reuters, is part of a US$1.3-billion
overhaul of the Minatitlan oil refinery in Mexico's coastal
Veracruz state, the fifth out of the country's six refineries to
be overhauled in the past few years.

ICA (ICA.MX: Quote, Profile, Research) (ICA.N: Quote, Profile,
Research) is Mexico's biggest construction company and Fluor
(FLR.N: Quote, Profile, Research) is a California-based
engineering and construction firm.

CONTACT:  Empresas ICA Sociedad Controladora SA de CV
          Mineria No. 145, Edificio Central
          11800 Mexico, D.F.,
          Phone: (212) 688-6840
          Web Site:

GRUPO POSADAS: To Issue $150M Senior Notes Due 2011
Mexican hotels operator Grupo Posadas SA (POSADAS.MX) informed
the local stock exchange Wednesday of its plans to issue
approximately US$150 million senior notes due 2011.

The notes, which are to be 100% guaranteed by its subsidiaries,
won't be registered under the Securities Act of 1933. Proceeds
of the operation will be used to pay existing debt.

Posadas reported debt of US$331.5 million at the end of the
second quarter, with an average life of 2.5 years, which it said
it was hoping to extend.

HOST MARRIOTT: S&P Rates Amended $575M Facility B+
Standard & Poor's Ratings Services assigned its 'B+' rating to
the $575 million amended and restated credit facility of hotel
owner Host Marriott Corp. At the same time, Standard & Poor's
affirmed its other ratings, including the 'B+' corporate credit
rating on the company. The outlook is stable. Approximately $5.6
billion in debt (including approximately $475 million of
convertible quarterly income preferred securities) was
outstanding on June 18, 2004.

The amended and restated credit facility will replace the
company's existing $300 million bank credit facility due in June
2005. Under the amendment, the facility will mature in September
2008 but can be extended an additional year under certain

The new credit facility has a unique structure composed of two
parts: a revolving facility A and a revolving facility B.
Maximum borrowings under the revolving facility A may vary from
$0 to $385 million as determined by leverage as defined in the
loan agreement. Revolving facility A has similar covenant levels
to the existing credit facility, while the covenants governing
revolving facility B are more relaxed. For instance, maximum
leverage at the end of 2004 for revolving facility A is 7.0x,
whereas it is 7.5x for revolving facility B. Based on this
covenant differential, it is possible that there would be no
availability under revolving facility A, but Host could continue
to draw on revolving facility B. In return for the higher risk,
revolving facility B borrowings will be priced at a 50 basis
point premium to revolving facility A borrowings.

Both the revolving credit facilities A and B are initially
secured by a perfected first-priority security interest (on an
equal and ratable basis with amounts outstanding under the
senior note indenture) in all capital stock, partnership
interests, and other equity interests owned by Host Marriott and
each guarantor (with certain limitations). Guarantors consist of
each direct and indirect wholly owned subsidiary of Host with
certain limitations on foreign subsidiaries.

"The ratings on Host Marriott reflect the company's substantial
debt levels as well as credit measures that are somewhat weak
for the ratings," said Standard & Poor's credit analyst Sherry
Cai. However, Standard & Poor's expects an improvement in Host's
credit measures to result from a healthier operating environment
and management's focus on improving the balance sheet. The
ratings also consider the high quality of the company's hotels,
the geographic diversity of its portfolio, and its experienced
management team. Moreover, Host's good liquidity position and
historically good access to both debt and equity capital markets
are viewed favorably.

The company owns 112 luxury and upscale, full-service hotels,
predominantly in urban, airport, and resort locations in the
U.S., Canada, and Mexico.

P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: To Elect Directors at Sept. 30 AM
The 2004 Annual Meeting of Stockholders of Centennial
Communications Corp. will be held at The Waldorf-Astoria Hotel,
301 Park Avenue, New York, NY 10022, on Thursday, September 30,
2004, at 11:00 a.m., local time. The purposes of the meeting

1. To elect nine directors to serve until the next Annual
Meeting of Stockholders and thereafter until their successors
are elected and qualified.

2. To ratify the appointment of Deloitte & Touche LLP as
independent auditors for the Company for the fiscal year ending
May 31, 2005.

3. To transact such other business as may properly come before
the meeting.

The Board of Directors has set August 27, 2004 as the record
date for the Annual Meeting. This means that owners of common
stock at the close of business on that date are entitled to
receive notice of and vote at the Annual Meeting.

CONTACT: Centennial Communications Corp.
         3349 Route 138
         Wall, New Jersey 07719


CANTV: Works with Alcatel to Develop Networks
Alcatel and CANTV, the principal operator in Venezuela and a
subsidiary of Verizon, have signed a strategic 5-year agreement
to foster the development of broadband telecommunications
networks and applications.

In accordance with this agreement, Alcatel will contribute its
vast experience in digital subscriber line (DSL) and digital
loop carrier (DLC) access technologies and in SDH and DWDM
transmission. Alcatel also contributes the expertise to enable
operators to incorporate the latest technological breakthroughs
into their networks, and to benefit from economies of scale, in
order to deploy a modern end-to-end network.

"This alliance with Alcatel is an important step forward in our
global strategy, since it gives us access to Alcatel's industry
leading technologies, and allows us to benefit from their
international experience as we incorporate new products and
services into our network", declared Miguel G‚nova, Network
General Manager of CANTV.

The collaboration between CANTV and Alcatel, which began with
the supply of 100,000 DSL lines, will also allow both companies
to analyze the most suitable evolution for the
telecommunications network in Venezuela.

"With this agreement we have the chance to share a common vision
of the network and business. This strategic alliance will enable
us to understand CANTV clients' needs and to determine which is
the best technology to provide the value-added services required
by the residential and corporate clients", stated Michel Rahier,
chief operating officer of Alcatel's fixed communications
activities. "In order to achieve this goal, we offer CANTV our
solutions catalog and our knowledge of the sectors where we
stand out on a global scale, such as optical transmission
solutions for data networks as well as multiservice access and
broadband DSL solutions", added Rahier.

Alcatel is the leading DSL supplier with a global cumulative
market share of 37.7 percent and a total of more than 49 million
lines shipped.

CANTV Corporation is a leading telecommunications service
provider in Venezuela with almost 2.9 million access lines in
service, more than 2.8 million cellular subscribers and more
than 282,000 Internet access subscribers by 30 June 2004.
CANTV's strategic shareholder is Verizon Communications Inc.,
with a 28.5%, the Venezuelan Government holding a 6.6% (class B
shares), employees and retirees of the Company holding a 9%
(class C shares) and Telefonica de Espana S.A. holding a 6.9%
(class A shares). The rest of the share capital (49.0%) is in
hands of different shareholders in Venezuela and other

Alcatel provides end-to-end communications solutions, enabling
carriers, service providers and enterprises to deliver content
to any type of user, anywhere in the world. Leveraging its long-
term leadership in telecommunications network equipment as well
as its expertise in applications and network services, Alcatel
enables its customers to focus on optimizing their service
offerings and revenue streams in a broadband environment. With
sales of Euro 12.5 billion in 2003, Alcatel operates in more
than 130 countries.

CONTACT: CA National Telefonos de Venezuela
         Edificio CANTV, Primer Piso
         Avenida Libertador
         Phone: (800) 269-2377
         Web Site:

PDVSA: Former Workers Claim They Are Owed $1.3B
Venezuelan state oil company Petroleos de Venezuela, S.A.
(PDVSA) owes more than US$1.3 billion to oil workers it
dismissed during a Dec 2002 - Feb 2003 strike, reveals El

Around 18,000 former PDVSA workers have reportedly lodged a
legal action against the oil giant. Venezuelan Labor Minister,
Maria Cristina Iglesias, has been asked to refrain from taking
part in the said action.

Horacio Medina, president of Unapetrol, a labor union
association comprised of executives and managers who were
dismissed from PDVSA, accused Iglesias of acting as "a political
sheriff of the regime, rather than as an official in charge of
defending the interests of workers." He insisted that Iglesias
continues to violate international labor agreements, as she has
disregarded the resolutions of the International Labor
Organization (ILO) intended to protect the former PDVSA workers.

A delegation of the ILO is to visit Venezuela on October 12-16
to "verify violations against trade union freedom," disclosed


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *