TCRLA_Public/041001.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, October 1, 2004, Vol. 5, Issue 195

                            Headlines

A R G E N T I N A

CAFERAL S.R.L.: Bankruptcy Proceeding
COMPACT COMPANY: Enters Bankruptcy on Court Orders
DALVIK S.A.: Reorganization Request Approved
FANTASTICO PRODUCCIONES: Liquidating Assets to Pay Debts
GIT S.A.: Verification Deadline Set

MENDOZA BURSATIL: Trustee to Wrap-Up Verification Phase
MUTUAL DE AYUDA: Verification Deadline Approaches
PREVENT ARC: Debt Payments Halted; Asks To Reorganize
PROCONSULT S.A.: Court Declares Company Bankrupt
SARSIS S.A.: Files Petition to Reorganize

SIDERAR: Makes Early Debt Payment of $77M
TRANSPORTES DOMCAR: Court OKs Creditor's Bankruptcy Call
TUBOS TRANS: Enters Into Extra-Judicial Workout With Creditors


B E R M U D A

DANIEL'S HEAD: Worker Urges Receiver to Pay Redundancy Packages
GRN REINSURANCE: Court Issues Wind-Up Notice
SENATE INSURANCE: Presents Wind-Up Petition in Court


B R A Z I L

BANCO BRADESCO: Fitch Ups Ratings Following Sovereign Upgrade
BANCO BRASCAN: Fitch Ups LT Foreign, Local Currency Ratings
BANCO DO BRASIL: Long-term Currency Ratings Upgraded
BANCO ITAU: Sovereign Rating Upgrade Sends Ratings Up
BANCO PACTUAL: Fitch Raises Long-term Currency Ratings

BANCO SAFRA: Fitch Ups Ratings Following Sovereign Upgrade
BANCO SANTANDER BRASIL: Fitch Ups LT Currency Ratings
BANCO SANTANDER MERIDIONAL: Long-term Currency Ratings Upgraded
BANCO VOTORANTIM: Fitch Raises LTFC Ratings
BANESPA: Currency Ratings Climb Following Sovereign Upgrade

CSN: Board Approves Resignation of Executive
NET SERVICOS: Bndespar OKs Globo's Share Acquisition Proposal
TELEMAR: Proceeds With Registered Exchange Offer
UNIBANCO: Fitch Ups Ratings Following Sovereign Upgrade
VASP: Striking Workers Return to Work


C H I L E

EDELNOR: S&P Ups Rating to 'B' on Better Financial Performance


C O L O M B I A

* COLOMBIA: IDB Approves $600M Loan


M E X I C O

CEMEX: Moody's Puts Ratings Under Review for Possible Downgrade
TV AZTECA: To Make $210M Cash Distribution to Shareholders


T R I N I D A D   &   T O B A G O

FNCU VENTURE CAPITAL: Transaction Raises Concerns in Senate


V E N E Z U E L A

* Venezuela: Reports Clearing Spreads, Results of Invitation

     -  -  -  -  -  -  -  -

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

CAFERAL S.R.L.: Bankruptcy Proceeding
-------------------------------------
Judge Gonzalez of Buenos Aires' Civil and Commercial Tribunal
Court no. 8 declared Caferal S.R.L. bankrupt, says La Nacion.
The ruling comes in approval of the bankruptcy petition filed by
the Company's creditor, Internacional de Productos S.A., for
nonpayment of US$5,478.34 in debt.

The Company's trustee, Mr. Felipe Florio, will examine and
authenticate creditors' claims until November 24, 2004. This is
done to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the said date
in order to qualify for the payments that will be made after the
Company's assets are liquidated.

Dr. Saravia, the city's clerk no. 16, assists the court on the
case that will conclude with the liquidation of the Company's
assets.

CONTACT: Caferal S.R.L.
         Grecia 4154
         Buenos Aires

         Mr. Felipe Florio, Trustee
         Uruguay 618
         Buenos Aires


COMPACT COMPANY: Enters Bankruptcy on Court Orders
--------------------------------------------------
Compact Company S.A. enters bankruptcy protection upon orders
from Court no. 19 of Buenos Aires' Civil and Commercial
Tribunal. 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. Alfredo Donatti as
trustee.  He will be verifying creditors' proofs of claims until
the end of the verification phase on October 25, 2004.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on December 6, 2004 followed by the general report, which is due
on February 18, 2005.

CONTACT: Mr. Alfredo Donatti, Trustee
         Montevideo 31
         Buenos Aires


DALVIK S.A.: Reorganization Request Approved
--------------------------------------------
Judge Braga, serving for Court no. 22 of Buenos Aires' Civil and
Commercial Tribunal, approved the "Concurso Preventivo" petition
filed by Dalvik S.A., reports local news source La Nacion.

The agricultural products company will undergo a reorganization
process, with Ms. Ines Clos as Trustee. Ms. Clos will verify
creditors' proofs of claim until November 1, 2004. Verifications
are done to ascertain the nature and amount of the Company's
debts. The presentation of the Company's settlement proposal is
scheduled on August 4 next year.

Dr. Julianelli, clerk no. 44, assists the court on the case.

CONTACT: Dalvik S.A.
         Junin 55
         Buenos Aires

         Ms. Ines Clos, Trustee
         Lavalle 715
         Buenos Aires


FANTASTICO PRODUCCIONES: Liquidating Assets to Pay Debts
--------------------------------------------------------
Buenos Aires-based Fantastico Producciones S.A. will begin
liquidating its assets following the bankruptcy pronouncement
issued by court no. 2 of the city's civil and commercial
tribunal.

The ruling places the Company under the supervision of court-
appointed trustee Andrea Rut Cetlinas. Ms. Cetlinas will verify
creditors' proofs of claims until November 16, 2004. Next, the
validated claims will be presented in court as individual
reports on February 16, 2005.

The trustee 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 30, 2005.

Clerk no. 4 assist the court on this case that will end with the
disposal of Company assets in favor of its creditors.

CONTACT: Ms. Andrea Rut Cetlinas, Trustee
         Lavalle 1678
         Buenos Aires


GIT S.A.: Verification Deadline Set
-----------------------------------
The verification of claims for the Git S.A. bankruptcy will end
on November 12, 2004 according to local news source Infobae.
Creditors with claims against the bankrupt company must present
proof of the liabilities to trustee Francisco Rogelio Cano
before the deadline.

Court no. 4 of Buenos Aires' Civil and Commercial Tribunal
handles the Company's case with assistance from clerk no. 8. The
bankruptcy proceedings will conclude with the liquidation of the
Company's assets to pay its creditors.

CONTACT: Mr. Francisco Rogelio Cano, Trustee
         Uruguay 618
         Buenos Aires


MENDOZA BURSATIL: Trustee to Wrap-Up Verification Phase
-------------------------------------------------------
The verification of creditors' claims for the Mendoza Bursatil
S.A. bankruptcy case is set to close on Monday, October 4, 2004.
Creditors must submit all required documents to trustee Norberto
Markel before the deadline to qualify for the official list of
creditors who will receive post-liquidation payments. Judge
Ferrario, serving for Court no. 6 of Buenos Aires' civil and
commercial tribunal, handles this case with assistance from Dr.
Mendez Sarmiento, clerk no. 12.

CONTACT: Mendoza Bursatil S.A.
         Maipu 267
         Buenos Aires

         Mr. Norberto Markel, Trustee
         Tucuman 1657
         Buenos Aires


MUTUAL DE AYUDA: Verification Deadline Approaches
-------------------------------------------------
Accounting firm "Estudio Abella, Fernandez Martinez y Asociados"
will close the verification of creditors' claims for the Mutual
de Ayuda entre Bomberos Voluntarios, Asociados y Afiliados a
Cajas de Prevision Social reorganization case on Monday, October
4, 2004. Creditors are required to present proof of their claims
to the trustee before the said deadline to qualify for the
official list of creditors covered by the Company's
restructuring plan.

CONTACT: "Estudio Abella, Fernandez Martinez y Asociados"
         Trustee
         Avda Mitre 940
         Zarate-Campana


PREVENT ARC: Debt Payments Halted; Asks To Reorganize
-----------------------------------------------------
Judge Villanueva, serving for Court no. 23 of Buenos Aires'
Civil and Commercial Tribunal, is now analyzing whether to grant
Prevent Arc S.R.L. approval for its petition to reorganize.

La Nacion recalls that the Company filed a "Concurso Preventivo"
petition following cessation of debt payments since December 13,
2001. Dr. Robledo, clerk no. 46, assists the court on this case.

CONTACT: Prevent Arc S.R.L.
         Tapalque 7450
         Buenos Aires


PROCONSULT S.A.: Court Declares Company Bankrupt
------------------------------------------------
Judge Bavastro of Buenos Aires' civil and commercial tribunal
court no. 17 declared local company Proconsult S.A. "Quiebra",
relates La Nacion. The court approved the bankruptcy petition
filed by Medicas S.A., to whom the Company failed to pay debts
amounting to US$ 34,983.29

The Company will undergo the bankruptcy process with Mr. Marcos
Livszyc as its 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. Vanoli, clerk no. 34, assists the court on the case.

CONTACT: Proconsult S.A.
         Bolivar 430
         Buenos Aires

         Mr. Marcos Livszycm, Trustee
         Nunez 3687
         Buenos Aires


SARSIS S.A.: Files Petition to Reorganize
-----------------------------------------
Sarsis S.A. filed a "Concurso Preventivo" motion, reports La
Nacion. The Company opted for voluntary bankruptcy following
cessation of debt payments since 1994. The Company's case is
pending before Judge Ferrario of Buenos Aires's Civil and
Commercial Tribunal Court no.6. Dr. Sicoli, clerk no. 11,
assists the court with the proceedings.

CONTACT: Sarsis S.A.
         Culpina 178
         Buenos Aires


SIDERAR: Makes Early Debt Payment of $77M
-----------------------------------------
Argentine flat steelmaker Siderar SAIC (ERAR.BA) will make an
early debt payment of US$77 million as part of the company's
financial restructuring.

Siderar told the local securities regulator that its board of
directors approved the payment in a Tuesday meeting and will
complete the transaction this week.

The payment will be made "pro rata to creditors including the
holders of bonds issued July 31, 1998," the company said.

The steelmaker reached a US$473.3 million debt restructuring
accord with its creditors in March 2003, agreeing to pay US$85
million up front and the remaining US$388.3 million in 11
installments over 5.25 years.

Siderar, which is 51% owned by Grupo Techint, 5% by Brazil's
CVRD and 5% by fellow Brazilian company Usiminas, posted a net
profit of ARS362.9 million in the second quarter of 2004 - more
than double from a year earlier.


TRANSPORTES DOMCAR: Court OKs Creditor's Bankruptcy Call
--------------------------------------------------------
Transportes Domcar S.A. entered bankruptcy after Court no. 13 of
Buenos Aires' Civil and Commercial Tribunal approved a
bankruptcy motion filed by Ms. Maria Amelia Gattellet, reports
La Nacion. The Company's failure to pay US$1,335.34 in debt
prompted the liquidation petition.

Working with Dr. Guerri, the city's clerk no. 25, the court
assigned Mr. Norberto Sapir 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 November 19, 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: Transportes Domcar S.A.
         Carlos Pellegrini 763
         Buenos Aires

         Mr. Norberto Sapir, Trustee
         Uriburu 1010
         Buenos Aires


TUBOS TRANS: Enters Into Extra-Judicial Workout With Creditors
--------------------------------------------------------------
Cordoba-based Tubos Trans Electric S.A. entered into a private
agreement or "Acuerdo Preventivo Extrajudicial" with its
creditors to settle its debts, says Infobae.

While the extra-judicial workout is private in nature, the
procedure still has to be legitimized by the court to ensure
that it contains certain basic provisions. Court no. 8 of
Cordoba's civil and commercial tribunal will handle the brief
proceeding to review the settlement between the Company and its
creditors.

CONTACT: Tubos Trans Electric S.A.
         Eliseo Canton 2342
         Cordoba



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

DANIEL'S HEAD: Worker Urges Receiver to Pay Redundancy Packages
---------------------------------------------------------------
It's been more than two years since Daniel's Head, a Bermuda
resort owned by San Diego based Excel Legacy Corporation,
collapsed but up to now, workers at the failed eco-resort still
have not received redundancy money, reports the Bermuda Sun.

Mr. Graeme Outerbridge, one of 30 staff left without jobs when
the resort collapsed, claims he still hasn't received his pay-
off. According to him, outstanding workers' pay should have been
resolved by the receiver, KPMG.

Kelvin Hastings-Smith, a specialist in employment law with
Appleby, Spurling and Hunter, said that the employees have
priority over all other non-secured creditors.

"It may have been that the Company did not have the wherewithal
to pay them at the time..." "But if it has now been sold then
the liquidator, once the sale has gone through, should pay out.

"The purpose of the employment legislation is to make sure that,
in cases like these, employees do have their claims dealt with."

KPMG is yet to respond to Outerbridge's comments.


GRN REINSURANCE: Court Issues Wind-Up Notice
--------------------------------------------
IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)

       IN THE MATTER OF THE COMPANIES ACT 1981

                      And

IN THE MATTER OF GRN Reinsurance International Ltd.

Take notice that an order was made in the Supreme Court on
September 24, 2004 winding-up GRN Reinsurance International Ltd.
under the provisions of the Companies Act 1981 and appointing
John McKenna of Ernst & Young, Bermuda as the Provisional
Liquidator of the Company.

CONTACT: Conyers Dill & Pearman
         Attorneys for the Petitioner
         Clarendon House
         2 Church Street
         Hamilton, HM 11
         Bermuda


SENATE INSURANCE: Presents Wind-Up Petition in Court
----------------------------------------------------
       IN THE MATTER OF THE COMPANIES ACT 1981

                       And

    IN THE MATTER OF Senate Insurance Company Ltd.

               Advertisement of Petition

Notice is given that a Petition for the winding-up of the above-
named company by the Supreme Court of Bermuda was on September
22, 2004 presented to the Court by the Company and the Petition
is directed to be heard before the Court on Friday, October 22,
2004 at 9.30 a.m.

Any creditor or contributory desirous to support or oppose the
making of an order on the said Petition may appear at the time
of hearing by himself or his counsel for that purpose and a copy
of the Petition will be furnished to any creditor or
contributory of the said Company requiring the same by the
undersigned on payment of the regulated charge for the same.

NOTE: Any person who intends to appear at the hearing of the
said Petition must serve on or send by post to the above-named
notice in writing of his intention to do so. The notice must
state the name and address of the person or the name and address
of the firm, and must be signed by the person or firm, or his or
their attorneys (if any) and must be served (or if posted) must
be sent by post in sufficient time to reach the above-named not
later than four o'clock (4.00 p.m.) on October 21, 2004.

CONTACT: Conyers Dill & Pearman
         Attorneys for the Petitioner
         Clarendon House
         2 Church Street
         Hamilton, HM 11
         Bermuda



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

BANCO BRADESCO: Fitch Ups Ratings Following Sovereign Upgrade
-------------------------------------------------------------
Fitch Ratings upgraded the ratings of Brazilian bank Banco
Bradesco in the wake of Fitch's sovereign rating upgrade.

The ratings affected are: (To/From)

-- Long-term foreign currency rating  'BB-'        'B+'

-- Long-term local currency rating    'BB+'        'BB'

The Rating Outlook remains Stable.

The long-term local currency ratings of Banco Bradesco reflect
the bank's intrinsic financial strength.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO BRASCAN: Fitch Ups LT Foreign, Local Currency Ratings
-----------------------------------------------------------
Fitch Ratings upgraded the long-term foreign and local currency
ratings of Banco Brascan to 'B+' from 'B' in the wake of Fitch's
sovereign rating upgrade. The Rating Outlook remains Stable.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO DO BRASIL: Long-term Currency Ratings Upgraded
----------------------------------------------------
Fitch upgraded the ratings of Brazilian bank Banco do Brasil in
the wake of Fitch's sovereign rating upgrade.

The ratings affected are: (To/From)

--Long-term foreign currency rating     'BB-'     'B+'

--Long-term local currency rating       'BB'      'BB-'

The Rating Outlook remains Stable.

The long-term local currency rating of Banco do Brasil reflects
its predominant position in Brazil's financial system, as well
as its much improved financial performance over recent years.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO ITAU: Sovereign Rating Upgrade Sends Ratings Up
-----------------------------------------------------
Fitch Ratings announced Wednesday several rating upgrades
affecting the Brazilian banks mentioned below in the wake of
Fitch's sovereign rating: (To/From)

Banco Itau

--Long-term foreign currency rating    'BB-'     'B+'

--Long-term local currency rating      'BB+'     'BB'

Banco Itau BBA

--Long-term foreign currency rating     'BB-'    'B+'

--Long-term local currency rating       'BB+'    'BB'

Banco Itau Holding Financeira

--Long-term foreign currency rating     'BB-'     'B+'

--Long-term local currency rating       'BB+'     'BB'

The Rating Outlook remains Stable.

The long-term local currency ratings of, Banco Itau and Banco
Itau BBA reflect the banks' intrinsic financial strengths, as
evident in their individual ratings.

CONTACT:  Rafael Guedes +5511 4504 2608, Sao Paulo
          Maria Rita Goncalves +5521 4503 2621, Rio de Janeiro
          Peter Shaw +1-212-908-0553, New York

MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York


BANCO PACTUAL: Fitch Raises Long-term Currency Ratings
------------------------------------------------------
Fitch Ratings upgraded the long-term foreign and local currency
ratings of Banco Pactual to 'BB-' from 'B+' in the wake of
Fitch's sovereign rating upgrade. The Rating Outlook remains
Stable.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO SAFRA: Fitch Ups Ratings Following Sovereign Upgrade
----------------------------------------------------------
Fitch upgraded Brazilian bank Banco Safra's ratings in the wake
of Fitch's sovereign rating upgrade.

The ratings affected are: (To/From)

--Long-term foreign currency rating   'BB-'    'B+'

--Long-term local currency rating     'BB'     'BB-'

The Rating Outlook remains Stable.

The long-term local currency rating of Banco Safra reflects the
bank's intrinsic financial strength.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO SANTANDER BRASIL: Fitch Ups LT Currency Ratings
-----------------------------------------------------
Fitch upgraded the ratings of Brazilian bank Banco Santander
Brasil in the wake of Fitch's sovereign rating upgrade. The
ratings affected are: (To/From)

--Long-term foreign currency rating     'BB-'       'B+'

--Long-term local currency rating       'BB+'       'BB'

The Rating Outlook remains Stable.

The long-term local currency rating of Banco Santander Brasil is
based principally on the potential support available from its
parent, Banco Santander Central Hispano.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO SANTANDER MERIDIONAL: Long-term Currency Ratings Upgraded
---------------------------------------------------------------
Fitch upgraded the ratings of Brazilian bank Banco Santander
Meridional in the wake of Fitch's sovereign rating upgrade.

The ratings affected are: (To/From)

--Long-term foreign currency rating    'BB-'     'B+'

--Long-term local currency rating      'BB+'     'BB'

The Rating Outlook remains Stable.

The long-term local currency rating of Banco Santander
Meridional IS based principally on the potential support
available from its ultimate parent, Banco Santander Central
Hispano.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANCO VOTORANTIM: Fitch Raises LTFC Ratings
-------------------------------------------
Fitch Ratings upgraded the long-term foreign currency ratings of
Brazilian bank Banco Votorantim to 'BB-' from 'B+' in the wake
of Fitch's sovereign rating upgrade. The Rating Outlook remains
Stable.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


BANESPA: Currency Ratings Climb Following Sovereign Upgrade
-----------------------------------------------------------
Fitch upgraded the ratings of Brazilian bank Banco do Estado de
Sao Paulo (Banespa) in the wake of Fitch's sovereign rating
upgrade.

The ratings affected are: (To/From)

--Long-term foreign currency rating     'BB-'    'B+'

--Long-term local currency rating       'BB+'    'BB'

The Rating Outlook remains Stable.

The long-term local currency rating of Banespa is based
principally on the potential support available from its parent,
Banco Santander Central Hispano.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


CSN: Board Approves Resignation of Executive
--------------------------------------------
Companhia Siderurgica Nacional S.A. - CSN (NYSE:SID)
(BOVESPA:CSNA3) announced Wednesday that in a general ordinary
meeting held on September 28, 2004, its board of directors
analyzed and, unanimously, approved the resignation presented on
September 22, 2004 by Mr. Marcelo Pereira Malta de Araujo from
his position as Executive Officer of Administration and
Participations of the Company.


NET SERVICOS: Bndespar OKs Globo's Share Acquisition Proposal
-------------------------------------------------------------
Net Servicos de Comunicacao S.A. ("Net"), a publicly held
company, with headquarters in the city and state of Sao Paulo,
pursuant the dispositions of CVM Instruction # 358/02, reports
information received as of Wednesday from its shareholders Globo
Comunicacoes e Participacoes S.A. ("Globopar"), Distel Holding
S.A.("Distel") and Roma Participacoes Ltda. ("Roma") (Globopar,
Distel and Roma, are jointly referred to as "Globo") and BNDES
Participacoes S.A. ("Bndespar").

Bndespar accepted Globo's proposal (the "Proposal") for the
acquisition by Globo of total 60,138,289 common shares, which
represent 7.26% of Net's voting capital, held by Bndespar.

The completion of such acquisition is subject to the execution
of a final agreement between the parties. Among other applicable
preceding conditions, Globo's obligation to acquire the common
shares held by Bndespar is subject to the conclusion of the sale
by Globo of its minor interest in Net to Telefonos de Mexico,
S.A de C.V ("Telmex") and to the execution of a new Net's
Shareholders' Agreement between Globo and Telmex, which was the
object of relevant notices released by the Company on June 28
and 30, 2004.

Assuming the completion of the proposed acquisition until
December 31, 2004, the price per common share held by Bndespar
will be R$ 0.90, totaling R$ 54,124,459.74. After December 31,
2004, the price will be monetarily readjusted. Also, the price
per share payable to Bndespar can not be lower than the price
per common share to be received by Globo from Telmex that,
subject to certain variables, should range from R$ 0.60 to R$
0.80, as announced by means of relevant notices on June 28 and
30, 2004.

The Proposal also foresees the exclusion of Bndespar as one of
the parties of Net's existing Shareholders' Agreement, as well
as, the execution of a new Shareholders' Agreement between
Globo, Telmex and Bndespar to ensure Bndespar the right to
register its preferred shares in eventual public offerings to be
made by Net.

After the execution of the final agreements between Bndespar and
Globo, the common shares held by Bndespar will be offered to the
other signatories of Net's existing Shareholders' Agreement.

The Proposal will be effective until June 30, 2005. The
acceptance of the Proposal by Bndespar will be informed to
appropriate governmental authorities.

CONTACT: NET Servicos de Comunicacao S.A.
         Rua Verbo Divino 1356
         Chacara Santo Antonio
         Sao Paulo
         SP 04719-002
         Brazil
         Phone: 5511-5186-2000

         Web Site: http://globocabo.globo.com/


TELEMAR: Proceeds With Registered Exchange Offer
------------------------------------------------
Tele Norte Leste Participacoes S.A.(Telemar) announced that it
has commenced an offer to exchange up to US$300 million
aggregate principal amount of its registered Series B 8.0% Notes
due 2013 (the new notes) for a like principal amount of its
unregistered Series A 8.0% Notes due 2013 (the old notes). The
expiration date for the exchange offer will be 5:00 p.m.,
Eastern Standard Time, on October 29, 2004, unless extended.

The new notes are substantially identical to the old notes,
except that the new notes have been registered under the
Securities Act of 1933, as amended, and will not bear any legend
restricting their transfer. The purpose of the exchange offer is
to allow holders that meet the conditions described in the
prospectus to receive new notes that may be resold in the United
States without further registration under the Securities Act.

The terms of the exchange offer and other information relating
to Telemar are set forth in a prospectus dated September 29,
2004. Copies of the prospectus and the related letter of
transmittal may be obtained from the exchange agent:

HSBC Bank USA
National Association
One Hanson Place, Lower Level
Brooklyn, NY 11243
Attn: Paulette Shaw
      Phone:(718) 488-4475
      Fax: (718) 488-4488

This announcement is neither an offer to sell nor a solicitation
of an offer to buy or exchange the new notes or the old notes.
The exchange offer is made solely by the prospectus dated
September 29, 2004.

CONTACT: TNE - INVESTOR RELATIONS
         Mr. Roberto Terziani
         Phone: 55 21 3131 1208
         e-mail: (terziani@telemar.com.br)

         Mr. Carlos Lacerda
         Phone: 55 21 3131 1314
         Fax: 55 21 3131 1155
         e-mail: (carlosl@telemar.com.br)

         GLOBAL CONSULTING GROUP
         Mr. Kevin Kirkeby
         Tel: 1-646-284-9416
         Fax: 1-646-284-9494
         e-mail: (kkirkeby@hfgcg.com)

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


UNIBANCO: Fitch Ups Ratings Following Sovereign Upgrade
-------------------------------------------------------
Fitch upgraded Brazilian bank Unibanco's (Uniao de Bancos
Brasileiros) ratings in the wake of Fitch's sovereign rating
upgrade.

The ratings affected are: (To/From)

--Long-term foreign currency rating      'BB-'      'B+'

--Long-term local currency rating        'BB'       'BB-'

The Rating Outlook remains Stable.

The long-term local currency rating of Unibanco reflects the
bank's intrinsic financial strength.

CONTACTS:  FITCH RATINGS
           Rafael Guedes, +5511 4504 2608
           Maria Rita Goncalves, +5521 4503 2621
           Peter Shaw, 212-908-0553
           Kenneth Reed, 212-908-0540 (Media Relations)


VASP: Striking Workers Return to Work
-------------------------------------
Striking workers of Vasp, Brazil's fourth-largest airline,
returned to work Wednesday after receiving their August
salaries, the Associated Press reports.

Vasp, which controls about 10% of the air passenger market in
Brazil, saw more than 1,000 of its 5,100-workforce walk off the
job on Tuesday because the financially troubled carrier failed
to pay August salaries. The action forced the airline to cancel
flights Tuesday. But flights resumed Wednesday because workers,
which received payments Tuesday night, went back to work.

Vasp continues to operate amid turbulent times. Besides labor
problems, the Company has an aging fleet. Government officials
last week grounded six Vasp Boeing 737s for failure to have
detailed maintenance plans in place, forcing Vasp to cancel
numerous flights around the country and scramble to find seats
on other airlines for its passengers.



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

EDELNOR: S&P Ups Rating to 'B' on Better Financial Performance
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Chilean power generator Empresa
El‚ctrica del Norte Grande S.A. (Edelnor) to 'B' from 'B-',
reflecting better-than-expected financial performance since
2003, which should stay adequate for the rating category in the
next five years. In addition, Edelnor's diversified power
generation portfolio should protect the company from natural gas
shortages in the Northern Electric System (SING). The outlook
remains stable.

Edelnor had about $220 million in outstanding debt with third
parties as of June 30, 2004.

The ratings on Edelnor reflect a still-weak financial profile
and the cash flow volatility derived from projected volatile
spot prices in the
SING.

"These weaknesses are counterbalanced by Edelnor's diversified
generation base, the ownership of transmission assets, a
competitive advantage for Edelnor, and its 21% equity stake in
the Gasoducto Norandino pipeline, which provides a stable cash
flow stream," said Standard & Poor's credit analyst Sergio
Fuentes.

The stable outlook incorporates Standard & Poor's expectations
that Edelnor's will be able to offset the effect of potential
natural gas shortages to its natural gas-fired units by selling
its noncontracted coal-fired capacity at high prices in the spot
market. Therefore, projected debt and interest coverage ratios
should not be affected in the context of natural gas supply
shortages in the SING. If the effect of the crisis is
significant, Standard & Poor's could revise its ratings.

However, the ratings could be revised upward if the company's
financial ratios continue improving in spite of natural gas
shortages and if the company recovers access to the financial
markets before its financial debt starts coming due in May 2008.

ANALYSTS:  Sergio Fuentes, Buenos Aires (54) 114-891-2131
           Marta Castelli, Buenos Aires (54) 114-891-2128



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

* COLOMBIA: IDB Approves $600M Loan
-----------------------------------
The Inter-American Development Bank approved Wednesday a $600
million policy-based loan to Colombia to support policy and
institutional reforms to promote greater efficiency, equity and
quality in public services while at the same time enhancing the
climate for private investment.

The resources will be disbursed over a period of from 18 to 36
months in three tranches of $200 million each as the government
carries out its reform program in the electricity,
telecommunications and water and sanitation sectors.

The program will support measures to improve the business
climate and increase the participation of private investment in
public services as well as improve the targeting of subsidies to
low income groups so these resources benefit families that need
assistance the most.

Regulatory and supervisory frameworks for public utilities will
be strengthened through measures to enhance capacity and promote
transparency and public accountability. The competitive
functions in the electricity and telecommunications sectors will
be strengthened.

The program will also support measures in the water and
sanitation sectors that will contribute to meeting United
Nations Millennium Development Goals.

While carrying out the reform process, the Colombian government
is committed to maintaining the country's present climate of
macroeconomic stability.

The program reflects the IDB joint strategy with Colombia of
reducing fiscal and regulatory constraints on economic growth
and social investment, protecting socially vulnerable groups and
strengthening governance. It will be carried out by the Ministry
of Finance* through its Technical Vice Ministry in coordination
with the National Planning Department.

The Executive Director for Colombia on the IDB Board of
Executive Directors, Luis Guillermo Echeverri, said, "This
operation signifies a vote of confidence by the IDB in Colombia
and a positive signal for foreign investment. Clarity in the
rules of the game, professionalization of public enterprises
that provide essential services and strengthening of regulatory
agencies will improve the country's business climate."

Other members of the Board of Executive Directors reaffirmed
their support for the reform agenda now being carried out by the
Colombian government and expressed their satisfaction at the
macroeconomic results that have been achieved.

Earlier this year the IDB approved three loans to Colombia
totaling $102.3 million to support the modernization and
redesign of health services networks, environmental protection
and public service reform.

CONTACT: Inter-American Development Bank
         Mr. Daniel Drosdoff
         danieldr@iadb.org
         Phone: (202) 623-2407

         Web Site: http://www.iadb.org/



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

CEMEX: Moody's Puts Ratings Under Review for Possible Downgrade
---------------------------------------------------------------
Cemex's recent announcement of its offer to acquire UK-based RMC
Group p.l.c. (RMC) prompted Moody's Investors Service to put the
Mexican cement company's ratings under review for possible
downgrade.

The ratings under review are:

- Senior implied -- Ba1
- Senior unsecured issuer rating -- Ba2
- Senior unsecured eurobonds due 2006 -- Ba1
- Senior unsecured global bonds due 2009 -- Ba1

Cemex is looking to acquire RMC in a transaction valued at
roughly US$5.8 billion. The entire transaction is to be funded
with debt. The Boards of Directors of both companies unanimously
approved the transaction and RMC's directors recommended that
its shareholders approve the acquisition, which will be the
largest acquisition ever undertaken by Cemex.

Moody's said its review will address concerns over the ambitious
size of the acquisition, as RMC revenues exceed those of Cemex,
and the significant redirection of management attention over the
medium-term associated with integration of RMC.

Also, Cemex's pro forma capital structure and leverage are of
concern given the substantial incremental debt burden associated
with its use of 100% debt financing for the acquisition.

The review will also address Moody's concerns over the
significant operational problems experienced by RMC that
prompted a substantial turnover among its senior management and
directors, and also resulted in a significant restructuring
charge to earnings during 2003.

Cemex S.A. de C.V. is the world's third largest cement company.
the company generated revenues of US$7.2 billion in 2003.


TV AZTECA: To Make $210M Cash Distribution to Shareholders
----------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the
two largest producers of Spanish language television programming
in the world, announced Wednesday that its board of directors
unanimously approved US$210 million cash distributions to
shareholders, of which US$130 million are expected to be
distributed during the fourth quarter of 2004 and US$80 million
in 2005. The recently convened distributions are in addition to
the approximately US$22 million of cash disbursements scheduled
for November 11, 2004, which were approved by the company's
shareholders on April 15.

The cash distributions are part of TV Azteca's six-year plan for
uses of cash, which entails making disbursements to shareholders
above US$500 million and reducing the company's debt by
approximately US$250 million within a six-year period that
started in 2003.

Within the cash plan, TV Azteca has made aggregate distributions
to shareholders of US$173 million, consisting of a US$125
million disbursement on June 30, 2003, US$15 million on December
5, 2003, and US$33 million on May 13, 2004. The accumulated
distributions are equivalent to a 10% yield, based on the
closing price of the TV Azteca ADR on September 28, 2004.

The distributions made to date, when added to the upcoming US$22
million and US$210 million disbursements, will represent an
aggregate amount of US$405 million cash disbursements,
equivalent to a 22% yield on the September 28, 2004 ADR closing
price.

The Company noted that the newly approved distributions reflect
the solid track record and prospects for cash generation of TV
Azteca, and confirm the board's commitment to the company's
strategic cash plan. The distributions will be subject to
approval at the shareholders' meeting to be held in October.

Under the cash plan, TV Azteca has also reduced its total debt
by US$79 million, on a nominal U.S. dollar basis, since June
2003. Additionally the company has announced the prepayment of
its US$300 million 101/2% note due February 15, 2007, during the
fourth quarter of 2004, with resources coming from the execution
of a committed secured credit line denominated in pesos with
Banco Inbursa, S.A., which represents extended maturity and an
anticipated improvement in financial costs.

The Company also noted the advances on its cash plan further
strengthen its overall capital structure, reduce financial
expense and contribute to increased free cash generation, while
distributing to shareholders the benefits of its solid
profitability.

TV Azteca operates two national television networks in Mexico,
Azteca 13 and Azteca 7, through more than 300 owned and operated
stations across the country. TV Azteca affiliates include Azteca
America Network, a broadcast television network focused on the
rapidly growing US Hispanic market; and Todito.com, an Internet
portal for North American Spanish speakers.

CONTACT: TV Azteca S.A.

         Investor Relations
         Mr. Bruno Rangel
         Phone: 5255 1720 9167
         e-mail: jrangelk@tvazteca.com.mx

         Mr. Omar Avila
         Phone: 5255 1720 0041
         e-mail: oavila@tvazteca.com.mx

         Media Relations
         Mr. Tristan Canales
         Phone: 5255 1720 5786
         e-mail: tcanales@tvazteca.com.mx

         Mr. Daniel McCosh
         Phone: 5255 1720 0059
         e-mail: dmccosh@tvazteca.com.mx



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

FNCU VENTURE CAPITAL: Transaction Raises Concerns in Senate
-----------------------------------------------------------
FNCU Venture Capital Company and its fund manager, Financial
Concepts Ltd., comes under fire as senators asked for a full
inquiry into alleged financial irregularities at the two
companies.

The Trinidad Express reports that key shareholders have voiced
their complaints regarding questionable transactions entered by
Financial Concepts. These transactions include a US$2.17 million
outlay to Salybia Village Spa that has been the object of an
investigation by industry regulator Venture Capital Incentive
Programme (VCIP) and the Securities and Exchange Commission.

At the hearing on the Venture Capital Amendment Bill on Tuesday,
senator Wade Mark of the Opposition Business in the Senate
claimed that millions of investors' money is now at risk. He
adds that Financial Concept's operations have raised doubts on
the status of the investors' money.

During the same hearing, Independent Senator Dana Seetahal asked
for a probe into FCL's operations. She stressed the importance
of finding the truth behind the fund manager's actions
concerning the capital of FNCU Venture Capital Company and in
particular the investment in Salybia.

The Stock Exchange has suspended trading of the company's shares
pending the outcome of the investigations.



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

* Venezuela: Reports Clearing Spreads, Results of Invitation
------------------------------------------------------------
The Bolivarian Republic of Venezuela (the "Republic") announced
Wednesday that it expects to issue approximately
U.S.$710,000,000 aggregate principal amount of its 8.5% Global
Bonds due 2014 (the "Global Bonds") pursuant to its previously
announced invitation (the "Invitation") to holders of several
series of its outstanding Brady bonds (together, the "Old
Bonds") to submit offers to exchange the Old Bonds for Global
Bonds. The Republic also announced Wednesday that it will also
issue and sell approximately U.S.$790,000,000 aggregate
principal amount of Global Bonds pursuant to an underwritten
offering (the "Cash Offering" and, together with the Invitation,
the "Global Bond Offering"). The aggregate principal amount of
Global Bonds expected to be issued in the Global Bond Offering
is approximately U.S.$1,500,000,000. Capitalized terms used but
not defined in this notice are defined in the prospectus
supplement, dated September 22, 2004, describing the Global Bond
Offering and the terms of the Global Bonds. The aggregate
principal amount of Global Bonds to be issued is subject to
final confirmation by the exchange agent.

The Invitation expired on September 28, 2004 at 4:00 P.M., New
York City time.

The Global Bonds will mature on October 8, 2014 and will bear
interest at a fixed rate of 8.5% per year. Interest will be
computed on the basis of a 360-day year comprised of twelve 30-
day months and will be paid in U.S. dollars semi-annually in
arrears in equal installments on April 8 and October 8,
commencing on April 8, 2005.

The Global Bond New Issue Price per U.S.$1,000 principal amount
of Global Bonds will be U.S.$950.56. The Global Bond New Issue
Price was determined as to result in a yield to maturity of the
Global Bonds on the Settlement Date equal to the sum of: (i) the
UST Benchmark Rate of 4.069% (i.e., the yield to maturity
corresponding to the bid-side price, as reported on Telerate
page 500 as of 10:00 A.M., New York City time, Wednesday for the
U.S. Treasury 4.25% Bond due August 15, 2014), plus (ii) the New
Issue Spread selected by the Republic of 520 basis points (bps).

The Republic has selected 520 bps as the FLIRB Clearing Spread
and 520 bps as the DCB Clearing Spread.

    The following table sets forth:

    --  the Currency Exchange Rate for each series of Old Bonds;
    --  the Exchange Ratio for each series of Old Bonds; and
    --  the aggregate principal amount of each series of Old
        Bonds to be acquired in exchange for Global Bonds
        pursuant to accepted exchange offers.

  Series of    Currency      Exchange Ratio  Aggregate Principal
  Old Bonds    Exchange Rate   for each      Amount of Old Bonds
               for each        Series of     Accepted for
               Series of         Old Bonds        Exchange
               Old Bonds                          for Global
Bonds*

    Front-Loaded
     Interest Reduction
     Bonds Due 2007,
     USD Series A    1           0.2505       U.S.$531,250,000
    Front-Loaded
     Interest Reduction
     Bonds Due 2007,
     USD Series B    1           0.2505       U.S.$317,971,000
    Debt Conversion
     Bonds Due 2007,
     USD Series DL   1           0.3507       U.S.$1,153,130,000
    Debt Conversion
     Bonds Due 2008,
     USD Series IL   1           0.4117         U.S.$206,250,000
    Front-Loaded
     Interest Reduction
     Bonds Due 2007,
     Deutsche Mark   0.6300      0.6628           DM 900,000
    Debt Conversion
     Bonds Due 2007,
     Deutsche Mark   0.6300      0.6628           DM 3,355,000
    Front-Loaded
     Interest Reduction
     Bonds Due 2007,
     Pounds Sterling  1.8013     0.4512          GBP 3,243,500
    Debt Conversion
     Bonds Due 2007,
     Pounds Sterling  1.8013     0.6317              GBP --
    Front-Loaded
     Interest Reduction
     Bonds Due 2007,
     Swiss Franc      0.7945     0.1990          CHF 20,000,000

     *  Assumes all of the exchange offers have been validly
        submitted and will settle pursuant to the Invitation.
        To the extent certain failures occur, these numbers may
         be revised.

    The clearing numbers for the Old Bonds are as follows:

    Bond Series                      Common Code    ISIN Number

    Front-Loaded Interest Reduction Bonds
     Due 2007, USD Series A           002943930   XS0029439303
    Front-Loaded Interest Reduction Bonds
     Due 2007, USD Series B           003438040   XS0034380401
    Debt Conversion Bonds Due 2007,
     USD Series DL                    002943549   XS0029435491
    Debt Conversion Bonds Due 2008,
     USD Series IL                    002945606   XS0029456067
    Front-Loaded Interest Reduction Bonds
     Due 2007, Deutsche Mark          003807720   DE0004019724
    Debt Conversion Bonds Due 2007,
     Deutsche Mark                    004224558   DE0004019732
    Front-Loaded Interest Reduction Bonds
     Due 2007, Pounds Sterling        002943875   XS0029438750
    Debt Conversion Bonds Due 2007,
     Pounds Sterling                  002947048   XS0029470480
    Front-Loaded Interest Reduction Bonds
     Due 2007, Swiss Franc            002943662   XS0029436622

In addition, holders of Old Bonds with certain ISIN numbers that
are different than those listed in the table above were also
allowed to participate in the exchange.

Application has been made to list the Global Bonds on the
Luxembourg Stock Exchange. The Global Bonds have been accepted
for clearance through DTC's book-entry settlement system,
Euroclear System and Clearstream Banking, societe anonyme
(Common Code: 020241519; ISIN: US922646BM57; and CUSIP No.:
922646BM5).

The Global Offering is scheduled to settle on October 8, 2004.

            The Dealer Managers for the Invitation are:

    Barclays Capital Inc.                Merrill Lynch & Co.
200 Park Avenue, 5th Floor            4 World Financial Center
   New York, New York 10166            New York, New York 10080

Inside the U.S.:  Toll-Free         Inside the U.S.:  Toll-Free
      1-866-307-8991                       1-888-654-8637
Outside the U.S.: Call Collect   Outside the U.S.: Call Collect
      212-412-4072                         212-449-4914



                            ***********


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
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Information contained herein is obtained from sources believed
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* * * End of Transmission * * *