TCRLA_Public/040923.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

         Thursday, September 23, 2004, Vol. 5, Issue 189

                            Headlines

A R G E N T I N A

BIB INC S.A.: Trustee To Close Verifications
CARLOS DULCE: Claims Check Ends Tomorrow  
DISI-NET S.A.: Enters Bankruptcy on Court Orders
GAS ARGENTINO: Moody's Reaffirms `D' Ratings on $130M of Bonds
INCOMETAL S.R.L.: Verification Deadline Approaches

MEILS S.A.: Court Rules for Liquidation
MENSAJET S.R.L.: Trustee to End Verification Period
METROGAS: Moody's Retains `D' Ratings on Corporate Bonds
OBRA SOCIAL: Gets Court Ok for Reorganization
PHARMLAB S.A.: Court Orders Liquidation

STAR MARKETING: Court Approves Creditor's Bankruptcy Motion
WINGMAN S.A.: Reorganization Concluded
YESERIA LEZAMA: Validation Deadline Approaches


B E R M U D A

FOSTER WHEELER: Pulls-off $450M Debt Reduction    
GLOBAL CROSSING: Investor Increases Ownership


B R A Z I L

PARMALAT: Board Approves Move to List Parmalat S.p.A.
TELEMAR: Growth in Mobile Clients Astonishing    


J A M A I C A

C&W JAMAICA: Speeds-up Mobile Service Restoration in Cayman


M E X I C O

ISPAT MEXICANA: Moody's Drops Caa1 Rating On Certificates


P E R U

MILPO: Obtains $30M Loan From Citibank


V E N E Z U E L A

CITGO: Moody's Raises Debt Rating Outlook
HAMACA: Moody's Raises Senior Secured Debt Rating to B1 From B3
PETROZUATA/CERRO NEGRO/SINCOR: Ratings Under Review for Upgrade

     -  -  -  -  -  -  -  -                            


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

BIB INC S.A.: Trustee To Close Verifications
--------------------------------------------
Court-appointed trustee Mr. Cesar Alejandro de Virgilis will be
reviewing creditors' proofs of claims for the Bib Inc. S.A.
until tomorrow, September 24, 2004.

The verified claims serve as basis for the individual reports to
be presented for court approval on November 12, 2004.
Afterwards, the trustee will submit a general report on February
8 next year.

CONTACT: Mr. Cesar Alejandro de Virgilis, Trustee
         San Isidro Labrador 4040
         Buenos Aires


CARLOS DULCE: Claims Check Ends Tomorrow  
----------------------------------------
All proofs of claims pertaining to bankrupt company Carlos Dulce
S.R.L. must be presented to Mr. Gustavo Vignale, the court-
appointed trustee, by tomorrow, September 24, 2004. Failure to
comply with the submission requirements would mean
disqualification from the payments to be made after the
Company's assets are liquidated.

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

CONTACT: Carlos Dulce S.R.L.
         Dean Funes 1750
         (1244) Buenos Aires
         Tel.: 4941-1229

         Mr. Gustavo Vignale, Trustee
         Vuelta de Obligado 2717
         Buenos Aires


DISI-NET S.A.: Enters Bankruptcy on Court Orders
------------------------------------------------
Disi-Net S.A. entered bankruptcy protection after court no. 18
of Buenos Aires' civil and commercial tribunal ordered the
company's liquidation. The order effectively transfers control
of the company's assets to the court-appointed trustee who will
supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Luis Maria
Guastavino as trustee. She will be verifying creditors' proofs
of claims until the end of the verification phase on November 9,
2004.

Dr. Estevarena, clerk no. 35, assists the court on this case.

CONTACT: Disi-Net S.A.
         Avenida Cordoba 1646
         Buenos Aires
   
         Mr. Luis Maria Guastavino, Trustee
         Nicolas Repetto 1115
         Buenos Aires


GAS ARGENTINO: Moody's Reaffirms `D' Ratings on $130M of Bonds
--------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on US$130 million worth of corporate bonds issued by
Argentine company Gas Argentino S.A., says the CNV. The bonds,
classified under "Simple Issue", matured on June 07, 2000.

The rating, which is assigned to financial obligations that are
in default, applies to bonds described as "Obligaciones
negociables simples por US$130.000.000".

The Company's financial status as of the end of June 30, 2004
determined the rating action.


INCOMETAL S.R.L.: Verification Deadline Approaches
--------------------------------------------------
The verification of creditors' claims for the Incometal S.R.L.
bankruptcy case will end on October 29, 2004 according to local
news source Infobae. Creditors with claims against the bankrupt
company must present proof of the liabilities to Mr. Jorge
Ernesto del Hoyo, the court-appointed trustee, before the
deadline.

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

CONTACT: Mr. Jorge Ernesto del Hoyo, Trustee
         Julio A Roca 610
         Buenos Aires


MEILS S.A.: Court Rules for Liquidation
---------------------------------------
Judge Gonzalez, serving for court no. 8 of Buenos Aires' civil
and commercial tribunal, ordered the liquidation of Meils S.A.
after the company defaulted on a US$13,023 debt to Ms. Lucia
Magdalena Nass.

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

La Nacion reports that Mr. Luparelli will verify creditors'
proofs of claims until December 13, 2004.

Dr. Lezaeta, clerk no. 15, assists the court on this case, which
will end with the disposal of the company's assets to repay its
creditors.

CONTACT: Meils S.A.
         San Martin 987
         Buenos Aires
  
         Mr. Santos Ernesto Luparelli
         Paraguay 2067
         Buenos Aires


MENSAJET S.R.L.: Trustee to End Verification Period
---------------------------------------------------
Ms. Nelida Cunarro, the trustee overseeing the Mensajet S.R.L.
liquidation, will verify creditors' proofs of claims until
tomorrow, September 24, 2004. The submitted claims will serve as
basis for the individual reports to be submitted on November 8,
2004.

Ms. Cunarro will also present a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on November 22, 2004.

Court no. 26 of Buenos Aires' civil and commercial tribunal
handles this the assistance of clerk no. 52.

CONTACT: Mensajet S.R.L.
         Montevideo 665
         Buenos Aires

         Ms. Nelida Cunarro, Trustee
         Paraguay 1269
         Buenos Aires


METROGAS: Moody's Retains `D' Ratings on Corporate Bonds
--------------------------------------------------------
Moody's Latin America Calificadora de Reisgo S.A. maintains a
'D' rating on corporate bonds issued by Metrogas S.A., according
to data revealed by the CNV on its Web site. The action, which
was taken based on Metrogas' financial health as of June 30,
2004, applies to these bonds:

- US$600 million worth of "obligaciones negociables simples",
classified under "program." The maturity of the bonds was not
disclosed;

- US$100 million worth of "Serie A por U$S 100.000.000 dentro
del Programa Global de U$S 600 millones." These bonds,
classified under "series and/or class", matured on April 1,
2003;

- EUR110 million worth of "Serie B por euros 110 millones."
These bonds classified under "Series and/or Class," matured on
September 27, 2002;

- US$130 million worth of "Serie C por U$S 130.000.000 dentro
del Programa Global de U$S 600 millones." These bonds, which are
classified under "Series and/or Class," will mature on May 7,
2004.

CONTACT: Metrogas S.A.
         Gregorio Araoz de Lamadrid 1360
         Buenos Aires, CPA C 1267
         Argentina
         Phone: +54 11 4309 1010
                +54 11 4309 1025


OBRA SOCIAL: Gets Court Ok for Reorganization
---------------------------------------------
Obra Social del Personal de Entidades Deportivas y Civiles will
begin reorganization proceedings following the approval of its
petition by court no. 4 of Buenos Aires' 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.

Accounting firm "Estudio Estevez Musante" will oversee the
reorganization proceedings as trustee. The firm will verify
creditors' claims until November 24, 2004. Next, the validated
claims will be presented in court as individual reports on
February 8, 2005.

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 March 22, 2005.

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 July 4, 2005.

CONTACT: "Estudio Estevez Musante" - Trustee
          Sarmiento 1426
          Buenos Aires


PHARMLAB S.A.: Court Orders Liquidation
---------------------------------------
Pharmlab S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by court no. 16 of Buenos Aires'
civil and commercial tribunal. The declaration effectively
prohibits the company from administering its assets, control of
which will be transferred to a court-appointed trustee.

Infobae reports that the court appointed Mr. Bartolome Horacio
Bavio 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 February 4, 2005. Afterwards, the trustee will also
submit a general report on March 22, 2005.

Clerk no. 32 assists the court on this case, which will end with
the disposal of the company's assets to cover its liabilities.

CONTACT: Pharmlab S.A.
         Avda Saenz 165
         Buenos Aires

         Mr. Bartolome Horacio Bavio, Trustee
         Avda de Mayo 1324
         Buenos Aires


STAR MARKETING: Court Approves Creditor's Bankruptcy Motion
-----------------------------------------------------------
Judge Braga of Buenos Aires' civil and commercial tribunal court
no. 22 declared Star Marketing S.R.L. bankrupt, says La Nacion.

The Company's trustee, Ms. Ana Calzada Percivale, will examine
and authenticate creditors' claims until October 22, 2004. This
is done to determine the nature and amount of the Company's
debts. Creditors must have their claims authenticated by the
trustee by the said date in order to qualify for the payments
that will be made after the Company's assets are liquidated.

Dr. Julianelli, clerk no. 44, assists the court on the case,
which will conclude with the liquidation of the Company's
assets.

CONTACT: Star Marketing S.R.L.
         Parana 467
         Buenos Aires

         Ms. Ana Calzada Percivale, Trustee
         Avenida San Martin 2805
         Buenos Aires


WINGMAN S.A.: Reorganization Concluded
--------------------------------------
The settlement plan proposed by Wingman S.A., formerly Stop-Car
System S.A., for its creditors acquired the number of votes
necessary for confirmation. As such, the plan has been endorsed
by court no. 5 of Buenos Aires' civil and commercial tribunal
and will now be implemented by the Company.      

CONTACT: Wingman S.A.
         Avenida Rivadavia 15602
         haedo - Buenos Aires


YESERIA LEZAMA: Validation Deadline Approaches
----------------------------------------------
The verification of creditors' claims for the Yeseria Lezama
S.R.L. bankruptcy is scheduled to close tomorrow, September 24,
2004. Creditors are required to submit proof of the Company's
indebtedness to trustee Juan Carlos Rico before the deadline in
order to qualify for any post-liquidation payments that will be
made.

Court no. 1 of Buenos Aires' civil and commercial tribunal
handles this case with assistance from clerk no. 2.

CONTACT: Mr. Juan Carlos Rico, Trustee
         Viamonte 1546
         Buenos Aires



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

FOSTER WHEELER: Pulls-off $450M Debt Reduction    
----------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Tuesday that its
equity- for-debt exchange offer has succeeded by meeting its
minimum participation thresholds. Foster Wheeler will close on
the exchange within the next several days.

The exchange reduces Foster Wheeler's existing debt by
approximately $450 million, reduces interest expense by
approximately $28 million per year, and, when combined with the
sale of new notes to repay amounts currently outstanding under
Foster Wheeler's existing domestic credit agreement, eliminates
substantially all material scheduled corporate debt maturities
prior to 2011.

"The completion of this equity-for-debt exchange is the most
significant accomplishment at Foster Wheeler in many years,"
said Raymond J. Milchovich, chairman, president, and chief
executive officer. "We have provided a dramatically improved
capital structure to support our worldwide operating
subsidiaries. Our post-exchange debt level is the lowest we have
had since 1995, and we have eliminated all material corporate
debt maturities through early 2011."

"I would like to express our sincere appreciation to our clients
and employees who have provided continued support and dedication
throughout our restructuring," continued Mr. Milchovich. "I
would also like to thank our debt holders who have shown their
confidence in Foster Wheeler by becoming shareholders in our
newly recapitalized company. We now look forward to focusing on
providing world class products and services to our clients,
pursuing our full business potential, and competing for quality
contracts in the world arena."

Foster Wheeler has accepted those securities that have been
validly tendered as part of its equity-for-debt exchange offer.
The accepted securities, and the Foster Wheeler securities for
which they are being exchanged are as follows:

1) Foster Wheeler's Common Shares and its Series B Convertible
Preferred Shares (the "Preferred Shares") and warrants to
purchase Common Shares for any and all outstanding 9.00%
Preferred Securities, Series I issued by FW Preferred Capital
Trust I (liquidation amount $25 per trust security) and
guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC,
including accrued dividends;

2) Foster Wheeler's Common Shares and Preferred Shares for any
and all outstanding 6.50% Convertible Subordinated Notes due
2007 issued by Foster Wheeler Ltd. and guaranteed by Foster
Wheeler LLC;

3) Foster Wheeler's Common Shares and Preferred Shares for any
and all outstanding Series 1999 C Bonds and Series 1999 D Bonds
(as defined in the Second Amended and Restated Mortgage,
Security Agreement, and Indenture of Trust dated as of October
15, 1999 from Village of Robbins, Cook County, Illinois to
SunTrust Bank, Central Florida, National Association, as
Trustee); and

4) Foster Wheeler's Common Shares and Preferred Shares and up to
$150,000,000 of Fixed Rate Senior Secured Notes due 2011 of
Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain
Subsidiary Guarantors for any and all outstanding 6.75% Senior
Notes due 2005 of Foster Wheeler LLC guaranteed by Foster
Wheeler Ltd. and certain Subsidiary Guarantors; and solicitation
of consents to proposed amendments to the indenture relating to
the 9.00% Junior Subordinated Deferrable Interest Debentures,
Series I of Foster Wheeler LLC, the indenture relating to the
6.50% Convertible Subordinated Notes due 2007 and the indenture
relating to the 6.75% Senior Notes due 2005. Foster Wheeler will
promptly complete the above exchange as described in the
registration statement on Form S-4 (File No. 333-107054)

The exchange offer expired at 5:00 p.m., New York City time, on
September 21, 2004.

As of 5:00 p.m. on September 21, 2004, holders have tendered the
following dollar amounts and percentages of the following
original securities:

1) 9.00% Preferred Securities, $103,750,350 (59.3%);

2) 6.50% Convertible Subordinated Notes, $209,930,000 (99.97%);

3) Robbins Series C Bonds due 2024, $56,643,071 (73.4%), Robbins
Series C Bonds due 2009, $12,032,282 (99.2%), and Robbins Series
D Bonds, $35,489,277 based on the balance due at maturity
(99.1%); and

4) 6.75% Senior Notes, $192,118,000 (96.1%).

Subsequent Offering Period

In order to allow additional investors to participate in the
exchange, Foster Wheeler also announced the commencement of a
subsequent offering period. This period commences September 22,
2004 and will expire at 5:00 p.m., New York City time, on
October 20, 2004. Remaining securities tendered during the
subsequent offering period will be immediately accepted and
promptly exchanged for new securities, as described in the
registration statement on Form S-4 (File No. 333-107054).
Holders tendering securities during the subsequent offering
period will receive the same consideration as holders who
tendered during the initial offering period. Securities tendered
during the subsequent offering period may not be withdrawn.

The subsequent offering period will not delay the prompt closing
on all securities tendered through and accepted on September 21.

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the exchange offer because they contain important
information: (1) the registration statement on Form S-4 (File
No. 333-107054) and (2) the Schedule TO (File No. 005-79124).
These and any other documents relating to the exchange offer,
when they are filed with the SEC, may be obtained free at the
SEC's Web site at www.sec.gov.

The foregoing references 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.

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

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


GLOBAL CROSSING: Investor Increases Ownership
---------------------------------------------
Texas billionaire Richard Rainwater upped his stake in
telecommunications firm Global Crossing Ltd. to 8.1%, Reuters
reports, citing a filing with the U.S. Securities and Exchange
Commission Tuesday.

The filing revealed that Rainwater owns 3.2 million shares, and
has bought 235,000 shares from September 16 through September 20
using US$3,486,989.80 in personal funds.

Rainwater began buying Global Crossing shares in March and
accelerated his purchases following the company's announcement
of an accounting investigation in April.

Global Crossing emerged from bankruptcy in December after
Singapore Technologies Telemedia took a 61.5% stake in the
company for US$450 million.

CONTACT: Press Contacts
         Ms. Becky Yeamans
         Phone: + 1 973-937-0155
         e-mail: PR@globalcrossing.com
                  or
         Ms. Tisha Kresler
         Phone: + 1 973-937-0146
         e-mail: PR@globalcrossing.com

         Analysts/Investors Contact
         Mr. Mitch Burd
         Phone: + 1 800-836-0342
         e-mail: glbc@globalcrossing.com

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



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

PARMALAT: Board Approves Move to List Parmalat S.p.A.
-----------------------------------------------------
Parmalat's Extraordinary Commissioner communicates that on
Tuesday, in implementation of the Parmalat Group's Restructuring
plan as recently approved by the Minister of Production
Activities in agreement with the Minister for Agricultural and
Forestry Affairs, the Board of Directors of the Parmalat S.p.A.
(Assumptor) met and approved the launching of the process for
the offering and listing of shares and warrants of the company
on the Milan Stock Exchange.

In this context, Mediobanca has been appointed as Sponsor and
Lazard has been appointed as Financial Adviser. The roles of
Legal Adviser, Tax Adviser and Auditor are in the process of
being defined.

This press release is not an offer for sale in the United
States. Securities may not be offered or sold in the United
States absent registration or exemption from registration. In
the event that any public offering of securities were to be made
in connection with the restructuring plan it will be made by
means of a prospectus that would contain detailed information
about the issuer as well as financial statements of the issuer.

CONTACT: Parmalat Finanziaria S.p.A.
         Piazza Erculea 9
         Milan
         20122
         Italy
         Phone: 3902-8068-801
   
         Web Site: http://www.parmalat.net/


TELEMAR: Growth in Mobile Clients Astonishing    
---------------------------------------------
Tele Norte Leste Participacoes S.A. (NYSE:TNE) announced Tuesday
that its GSM operating unit, Oi (TNL PCS), had reached 5,550,000
subscribers at the end of August 2004, up 5% from the previous
month and more than doubling year over year.

The customer mix at Oi reached 85% with prepaid and 15% with
postpaid plans, and an estimated market share in its operating
region - the same where it operates as a wireline incumbent
under the brand Telemar - of 21.7% (with a 33% share of the
region's net additions in August). The company expects to reach
6.5 million mobile subscribers by year-end 2004.

The Company also announced that its Telemar broadband service,
Velox (ADSL), reached 400,000 subscribers at the end of August,
up from 217,000 in December 2003.

CONTACT: Tele Norte Leste Participacoes S.A.
         Investor Relations
         Mr. Roberto Terziani
         e-mail: terziani@telemar.com.br
         Phone: 55 21 3131 1208  

         Mr. Carlos Lacerda
         e-mail: carlosl@telemar.com.br
         Phone: 55 21 3131 1314



=============
J A M A I C A
=============

C&W JAMAICA: Speeds-up Mobile Service Restoration in Cayman
-----------------------------------------------------------
Cable & Wireless Jamaica is helping its sister company in Cayman
with the speeding up of efforts to have mobile services there
fully restored as quickly as possible.

The Jamaican operation is shipping eight complete 1900MHz
transmission sites to be deployed in the Cayman Islands. Cable &
Wireless' bmobile service in Cayman is currently functional and
serving customers, and the cell sites being sent from Jamaica
will help Cable & Wireless Cayman cope with the growing demand
now being placed on its services.

Similar assistance is being extended by Cable & Wireless
Barbados to Cable & Wireless Grenada where the situation is much
the same, with the Cable & Wireless bmobile service facing
increasing demand from customers.

The ability of Cable & Wireless in Jamaica and Barbados to
assist companies in neighboring islands is a critical advantage
for the company as time required for manufacture and delivery of
equipment that is needed is normally in the range of 8 - 12
weeks.

`We are happy to be in a position to help the people of Cayman
in this way', commented Gary Barrow President of Cable &
Wireless Jamaica. The equipment being sent to Cayman is a small
portion of the inventory being held for deployment under Cable &
Wireless Jamaica's ongoing development program.

CONTACT: Cable & Wireless Jamaica
         47 Halfway Tree Road
         PO Box 21
         Kingston 5
         Jamaica
         Phone: 876) 926-9700

         Web Site: http://home.cwjamaica.com/



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

ISPAT MEXICANA: Moody's Drops Caa1 Rating On Certificates
---------------------------------------------------------
Moody's Investors Service has withdrawn its Caa1 senior rating
on Ispat Mexicana, S.A. de C.V.'s (Imexsa) Export Trust No. 96-
1, 10-5/8% Senior Structured Export Certificates, due 2005.

The move follows the full repayment of the certificates by
Imexsa.

Based in Lazaro Cardenas in western Mexico's Michoacan state,
Imexsa is a 99.9%-owned subsidiary of Rotterdam-based steel
group Ispat International (NYSE: IST).



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

MILPO: Obtains $30M Loan From Citibank
--------------------------------------
Peruvian zinc miner Milpo secured a US$30-million loan from
Citibank of Peru to help it pay down debts with WestLB, Business
News Americas reports.

The loan is payable in quarterly payments over seven years,
including a two-year grace period, at a rate of Libor plus 3%

Milpo, which operates the El Porvenir polymetallic mine in
central Peru's Pasco department and the Ivan-Zar copper mine in
Chile, said it will use the funds partly to prepay an existing
US$40-million loan with WestLB. The company expects to
restructure the remaining US$10 million debt with WestLB in the
next few weeks.



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

CITGO: Moody's Raises Debt Rating Outlook
-----------------------------------------
Moody's Investors Service raised the outlook for Citgo Petroleum
Corp.'s senior unsecured obligations, rated Ba3, to positive
from negative.

The move reflects Citgo's improving financial condition and the
recent upgrade of Petroleos de Venezuela's (PDVSA) foreign
currency issuer rating to B2 from Caa1. Citgo is a U.S. based
wholly-owned subsidiary of PDVSA, the state oil company of
Venezuela.

An outlook change to positive from negative indicates the
company has a higher chance of its rating being raised over the
next 18 months, rather than lowered.


HAMACA: Moody's Raises Senior Secured Debt Rating to B1 From B3
---------------------------------------------------------------
Moody's Investors Service upgraded, to B1 from B3, the senior
secured debt issued by Hamaca Holding LLC, a heavy oil project
in Venezuela.

The rating remains under review for possible further upgrade.

The rating action follows an upgrade of the foreign currency
Issuer Rating of PDVSA to B2 from Caa1.

Moody's has previously maintained the Hamaca project rating two
notches below the B1 rating of the other Venezuelan heavy oil
projects (Petrozuata Finance Inc., Cerro Negro Finance, Ltd.,
and Sincrudos de Oriente SINCOR C.A.) due to its dependence on
PDVSA for funding until completion is achieved.

The upgrade of Hamaca reflects the upgrade of PDVSA, as well the
view that completion of the project is highly likely now that
construction is nearly completed.

Moody's review of Hamaca's rating will focus on the project's
operational improvements and its financial flexibility for debt
service and capital programs. The outcome of the continuing
review for possible upgrade of PDVSA's ratings could be a
significant factor for the heavy oil project's rating. The
creditworthiness of PDVSA is particularly meaningful to the
project due to the reliance upon PDVSA to supply natural gas
that is needed to upgrade the very heavy crude prior to its
export.

The borrowers include Hamaca Holding LLC, jointly controlled
ultimately by ConocoPhillips and ChevronTexaco, and
Corpoguanipa, S.A., whose ultimate parent is PDVSA.


PETROZUATA/CERRO NEGRO/SINCOR: Ratings Under Review for Upgrade
---------------------------------------------------------------
Moody's Investors Service placed the B1 senior secured debt
rating of three Venezuelan heavy oil projects under review for
upgrade: Petrozuata Finance Inc. ("Petrozuata"), Cerro Negro
Finance, Ltd. ("Cerro Negro"), Sincrudos de Oriente SINCOR C.A.
("Sincor"), all of which have senior secured debt that is rated
B1.

The rating action came as a result of the recent upgrade of the
foreign currency Issuer Rating of Petroleos de Venezuela (PDVSA)
to B2 from Caa1.

Petrozuata, Cerro Negro, and Sincor are separate heavy oil
projects in
Venezuela. PDVSA is a partial owner of each of the projects.

According to Moody's, the three projects have achieved
completion under the terms of their respective financing
agreements. The projects in Venezuela continue to operate at
high levels of output, with each project attaining a new
production record during the first half of 2004. Higher
production in combination with substantially higher market
prices has enabled these projects to reduce debt and make
substantial payments to sponsors in 2004. Additionally, all the
projects are currently undergoing significant debottlenecking or
restoration projects that are intended to increase production
levels by up to 20%.

Moody's review of the ratings of the heavy oil projects will
focus on the projects' operational improvements and their
financial flexibility for debt service and capital programs. The
outcome of the continuing review for possible upgrade of PDVSA's
ratings could be a significant factor for the ratings of the
heavy oil projects. The creditworthiness of PDVSA is
particularly meaningful to the projects due to the reliance upon
PDVSA to supply natural gas that is needed to upgrade the very
heavy crude prior to its export.

The projects are separately owned and operated, and are located
in the Orinoco region in Southeastern Venezuela.



                            ***********


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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.


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