TCRLA_Public/041004.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

            Monday, October 4, 2004, Vol. 5, Issue 196



AGUAS ARGENTINAS: Etoss Recommends Concession Reorganization
BANCO SUQUIA: Bansud Sale Moving Forward Pending Approval
CITY ROSS S.A.: Debt Payments Halted, Moves to Reorganize
CONIX S.A.: Court Favors Creditor's Bankruptcy Petition
DUSTON S.A.C.I. Y F.: Bankruptcy Initiated by Court Order

EDEERSA: Roggio Considers Buying Controlling Stake
GRUPO CONCESIONARIO: Signs Debt-Restructuring Deal With Banks
IN TEC: Trustee to Wind-Up Verification Period
LINEAS LEON: Claims Review Nears End
ROCHMAN MARIO: Gets Court Authorization to Reorganize

TRANSENER: Court Denies Creditor's Bankruptcy Petition
WEBESTUDIO S.A.: Court Order Makes Bankruptcy Official
* ARGENTINA: U.S. SEC OKs Shelf Registration Statement


C&W BARBADOS: To File FTC Review Justification Next Week


CERJ: Changes Name to AMPLA
ENRON: Gas Natural Concludes Acquisition of Brazilian Stakes
GERDAU: Secures CADE's Approval on Acominas Stake Purchase
PARMALAT: EBITDA Improves 15.9% From August 2003


COEUR D'ALENE: S&P Affirms Ratings; CreditWatch Removed


AVIANCA: Additional Bidder Surfaces
* Colombia Seeks Renewal of 2-Yr. Loan Accord With IMF

D O M I N I C A N   R E P U B L I C

* Dominican Republic Negotiates Oil Credit Line With Venezuela


KAISER ALUMINUM: Secures Extension of Limited Consent, Waiver


CORPORACION DURANGO: Claims Verification Concluded
HYLSAMEX: Subsidiary Obtains $100M Unsecured Bank Loan

T R I N I D A D   &   T O B A G O

NWRHA: Faces Allegations of Discrimination
WASA: Customers Await Compensation for Sub-Standard Service

     - - - - - - - - - -


AGUAS ARGENTINAS: Etoss Recommends Concession Reorganization
Argentina's waterworks regulator (Etoss) is calling for the
division of water utility Aguas Argentinas' concession, reports
Business News Americas. In a proposal submitted to the federal
government's public service contracts re-negotiation and
analysis unit (Uniren), Etoss attempts to rationalize why it is
better to have multiple operators.

Although having one operator simplifies control, it makes it
difficult to compare one service with another, the report says.
Having one operator generates a "slow advance in areas like
pressure and drinking water leaks and parasitical waters in

An Aguas spokesperson told Business News Americas they knew
Etoss had submitted the proposal to Uniren.

Such a proposal is "economically, financially and technically
not feasible," the spokesperson said, adding that Aguas had
asked for a 10-working day extension regarding the submission of
its contract re-negotiation proposal. The deadline had been

Aguas, whose principal shareholder is France's Suez group, won
its 30-year operating concession in 1993 and provides water to
11.5 million residents and sewerage service to 7.5 million
residents in greater Buenos Aires.

BANCO SUQUIA: Bansud Sale Moving Forward Pending Approval
Argentine bank Banco Suquia is now set to go to the hands of
local private bank Banco Macro Bansud after the latter signed an
agreement with state-owned bank Banco de la Nacion, which is
managing Suquia, reports Dow Jones Newswires. Bansud was pre-
awarded the tender for Banco Suquia in late April, beating out
three other bidders. The transaction, which involved a capital
injection of ARS288 million ($1=ARS2.9825) by Bansud into
Suquia, now awaits approval from the central bank. Banco de la
Nacion believes approval will be expedited.

Banco Suquia, along with Nuevo Banco Bisel and Nuevo Banco de
Entre Rios SA (BERSA), have been under the control of the
government since early 2002, when French banking conglomerate
Credit Agricole SA left Argentina in the middle of the country's
financial crisis. Bisel and BERSA haven't yet found new owners.

Banco de la Nacion said the successful tender of Banco Suquia
"reopens expectations that in the short term, the possibilities
for the sale of Bisel and BERSA banks can be made concrete."

CITY ROSS S.A.: Debt Payments Halted, Moves to Reorganize
Judge Dieuzeide, working for court no. 1 of Buenos Aires' civil
and commercial tribunal, is now analyzing whether to grant City
Ross S.A. approval for its petition to reorganize. La Nacion
recalls that the company filed a "Concurso Preventivo" petition
after failing to pay a US$171,083.92 debt.

Dr. Garello, clerk no. 1, assists the court with the Company's

CONTACT: City Ross S.A.
         Teniente General Juan Domingo Peron 828
         Buenos Aires

CONIX S.A.: Court Favors Creditor's Bankruptcy Petition
Mr. Ramon Vivas successfully sought for the bankruptcy of Conix
S.A. after Judge Perez of Buenos Aires' civil and commercial
tribunal court no. 23 declared the Company "Quiebra," reports La
Nacion. As such, the construction company will now start the
bankruptcy process with Mr. Anibal Osuna as trustee. Creditors
of the Company must submit their proofs of claim to the trustee
before December 22, 2004 for authentication.

Failure to do so will mean a disqualification from the payments
that will be made after the Company's assets are liquidated.
Mr. Vivas sought for the Company's bankruptcy after the latter
failed to pay debts amounting to US$37,446.62.

         Moldes 2347
         Buenos Aires

         Mr. Anibal Osuna, Trustee
         Mercedes 3250
         Buenos Aires

DUSTON S.A.C.I. Y F.: Bankruptcy Initiated by Court Order
Duston S.A.C.I. y F. will enter bankruptcy protection after
court no. 4 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. Pablo Ernesto
Aguilar as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on November 17,
2004. The city's clerk no. 8 assists the court on this case.

CONTACT: Mr. Pablo Ernesto Aguilar, Trustee
         Hipolito Yrigoyen 1516
         Buenos Aires

EDEERSA: Roggio Considers Buying Controlling Stake
Argentine group, Roggio, has acquired the bidding conditions for
the sale of 51% of Entre Rios-based power distribution firm
Edeersa. Roggio has already showed interest in Edeersa last
year, when the former controlling shareholder -US' power group
PSEG- announced it was leaving the concession. However, Sergio
Montiel, who was the governor of Entre Rios by then, decided to
leave the power distribution service in public hands. Then, the
justice returned the administration of the company to its
managers and employees and the new governor Jorge Busti decided
to move ahead with the transfer of the company to a private

The sale of Edeersa faces a major difficulty: the company has a
debt burden of US$87 million, 40% of which (or 100% according to
some sources) belongs to UK-based distress fund Ashmore.
Investors know that the group that assumes control of Edeersa
will have a year to negotiate with Ashmore the repayment of the

Roggio will be competing with Dolphin Fund, construction firm
Jose Cartellone and GPU Emdersa, a group controlled by HSBC
Private Equity Latin America and JP Morgan Partners LLC, which
already manages the electricity distribution firms of the
provinces of Salta (Edesa), San Luis (Edesal) and La Rioja

GRUPO CONCESIONARIO: Signs Debt-Restructuring Deal With Banks
Argentine toll concessionaire Grupo Concesionario del Oeste
(GCO) inked definitive bank debt restructure documents of short
and long-term credit facilities contracts with creditors,
reports Business News Americas.

A filing with the Buenos Aires stock market regulators (Merval)
revealed the banks involved in the transaction are Banco Rio de
la Plata, BBVA Banco Frances, Banco Galicia Uruguay and

Oeste was awarded the concession in 1994 and is made up of Acesa
(48.6%) and IJM Corporation Berhad (20.1%), while the rest of
the concessionaire's shares are traded on the Buenos Aires stock

CONTACT: Grupo Concesionario del Oeste S.A.
         Autopista del Oeste Km  25,92 - (1714)
         ItuzaingO - Pcia. de Bs. As. - Argentina
         Tel. (54) (011) 4489-8200 (L. Rotativas)
         Fax: (54) (011) 4489-8237

IN TEC: Trustee to Wind-Up Verification Period
The verification of creditors' claims for the In Tec S.R.L.
bankruptcy case will close tomorrow. All proofs of claims must
be submitted to trustee Haydee Kravetz for authentication by the
said deadline. Failure to comply with the submission
requirements will mean disqualification from the final list of
creditors qualified to receive post-liquidation distributions.

Court No. 24 of Buenos Aires' civil and commercial tribunal,
under Judge Ballerini, has jurisdiction over this bankruptcy

         Cahue 9
         Buenos Aires

         Ms. Haydee Kravetz, Trustee
         Tucuman 1484
         Buenos Aires

LINEAS LEON: Claims Review Nears End
Ms. Eva Malvina Gorsd, the trustee supervising the
reorganization of Lineas Leon S.A., is set to close the
verification of creditors' claims tomorrow. Court no. 15 of
Buenos Aires' civil and commercial tribunal handles this case
with assistance from the city's clerk no. 29.

Creditors are required to submit proof of their claims by the
said deadline. Failure to file within the prescribed period may
result in not being entitled to receive any distributions under
the settlement plan submitted by the company.

CONTACT: Lineas Leon S.A.
         Avda Corrientes 2565
         Buenos Aires

         Ms. Eva Malvina Gorsd, Trustee
         Paraguay 1225
         Buenos Aires

ROCHMAN MARIO: Gets Court Authorization to Reorganize
Rochman Mario y Rochman Raul Sebastian S.H. will begin
reorganization following the approval of its petition by court
no. 19 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.

Mr. Eduardo F. Aguinaga will oversee the reorganization
proceedings as the court-appointed trustee. He will verify
creditors' claims until November 1, 2004. The validated claims
will be presented in court as individual reports on December 15,

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 February 28, 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 August 18, 2005.

CONTACT: Rochman Mario y Rochman Raul Sebastian S.H.
         Avda Pueyrredon 255
         Buenos Aires

         Mr. Eduardo F. Aguinaga, Trustee
         Maipu 374
         Buenos Aires

TRANSENER: Court Denies Creditor's Bankruptcy Petition
Compania de Transporte de Energia Electrica en Alta Tension
Transener S.A. (Transener) overcame one of the hurdles to a
successful US$520-million debt restructuring. Dow Jones
Newswires reports that an Argentine commercial court threw out a
bankruptcy petition filed against the high-voltage power company
by one of its creditors. Still unclear is exactly which
creditor's petition was rejected.

There are two separate bankruptcy petitions lodged against
Transener in the same court, one related to $40,627 of bonds in
late May and another involving US$200,000 worth of obligations
in early August. The company didn't reveal how much money the
first creditor's bonds represent.

Transener is not making any progress on its restructuring deal,
leaving it vulnerable to lawsuits and bankruptcy petitions from
disgruntled creditors.

CONTACT:  Carlos A. Gonzalez, Chief Financial Office
          Marcelo A. Fell. Treasurer
          Andres G. Colombo, General Accountant
          Investor Relations Coordination
          Laura V. Varela

          Paseo Colon 728 6th Floor
          (1063) Buenos Aires, Republica Argentina
          Tel:(5411) 4342-6925 / 4342-7241
          Fax: (5411) 4342-7147
          Web site:

WEBESTUDIO S.A.: Court Order Makes Bankruptcy Official
Court no. 12 of Buenos Aires' civil and commercial tribunal
declared local company Webestudio S.A. bankrupt after the
company defaulted on its debt payments. The bankruptcy order
effectively places the company's affairs as well as its assets
under the control of court-appointed trustee, Mr. Mario Nicolas
Degese. As trustee, Mr. Degese is tasked with verifying the
authenticity of claims presented by the company's creditors. The
verification phase is ongoing until November 26, 2004.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on February 8, 2005. A general report will
also be submitted on March 22, 2005.

Infobae reports that clerk no. 24 assists the court on this
case, which will end with the disposal of the company's assets
in favor of its creditors.

CONTACT: Mr. Mario Nicolas Degese, Trustee
         Bouchard 468
         Buenos Aires

* ARGENTINA: U.S. SEC OKs Shelf Registration Statement
Argentina can now launch its formal offer to restructure US$100
billion in debt after the U.S. Securities and Exchange
Commission approved its shelf registration filing, Bloomberg
reports, citing Economy Minister Roberto Lavagna.

Argentina, which filed its shelf registration statement with the
U.S. SEC in early July, posted a record sovereign debt default
in December 2001 and hasn't paid any of its private foreign
obligations since then.

The country is seeking a 75% reduction in the net present value
of the debt and officials have repeatedly said this is the final


C&W BARBADOS: To File FTC Review Justification Next Week
The Fair Trading Commission (FTC) has given Cable & Wireless
Barbados until October 12 to file its arguments calling for a
review of the rates adjustment decision handed down by the
regulator last July. C&W Barbados had opposed this decision
claiming that the FTC erred in law and in fact with respect to
the rejection of the flat rate charging plans and usage based
rates it had proposed.

The Company had hoped to recover US$24.7 million of the US$29
million subsidy extended by its international arm to support
local operations through the rate adjustment. The FTC rejected
the Company's application on grounds that the adjustments, which
would affect domestic business and residential costumers, lacked

In an article from the Barbados Nation, FTC chief executive
officer Michelle Goddard said that review would be conducted
based on the written submission although a decision could be
taken to include oral evidence.


CERJ: Changes Name to AMPLA
Companhia de Eletricidade do Rio de Janeiro (CERJ), part of the
Endesa Spain group of companies, will change its name to AMPLA,
reports Business News Americas. In a statement, Ana Couto
Branding & Design, the consultancy that came up with the new
name, said CERJ is changing its name to reflect its
transparency, and its proximity and commitment to the client.

ENRON: Gas Natural Concludes Acquisition of Brazilian Stakes
Brazil's antitrust agency CADE removed the remaining obstacle to
Spanish gas distributor Gas Natural SDG's US$160-million
purchase of stakes in Brazilian distributors CEG and CEG Rio
from US company Enron, reports Business News Americas.

In approving the transaction, CADE said the acquisition does not
hurt competition in the state. CEG's concession region includes
20 municipalities in the greater Rio de Janeiro city region,
while CEG Rio's concession covers 72 towns in the state.

Through its subsidiary Gas Natural Internacional, the Spanish
company now owns 54.2% of CEG and 72% of CEG Rio.

GERDAU: Secures CADE's Approval on Acominas Stake Purchase
Brazilian long steelmaking group Gerdau (NYSE: GGB) has obtained
approval from antitrust agency CADE for its acquisition of a
24.79% stake in unit Acominas held by Singapore's Natsteel,
reports Business News Americas. Porto Alegre-based Gerdau bought
the Natsteel stake in Acominas for US$212 million in late-2002.

CONTACT: Gerdau S.A.
         Avenida Farrapos 1811
         Porto Alerge
         RS 90220-005
         Phone: +55 3323 2000
         Web Site:

PARMALAT: EBITDA Improves 15.9% From August 2003
Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates the financial and economic results for the Parmalat
Group as at 31 August 2004. A number of the non-Italian
operations of the Group identified in previous months as subject
to "Special Proceedings" (for example USA Dairy, Brazil, Chile,
EVH) and some financial companies (for example Parmalat Capital
Finance) are currently subject to certain restrictions on their
management as a result of the same local proceedings, with the
result that these operations are effectively outside of the
control of Parmalat Finanziaria S.p.A. in Extraordinary

It has, for this reason, been decided to remove these businesses
from the total consolidation area of the Group and to record
them according to a net equity methodology. This will be the
case while any eventual obligations Parmalat Finanziaria S.p.A.
in Extraordinary Administration may be found to have on the
basis of legislation in force in the countries in which these
businesses are headquartered, together with any guarantees to
those that financed these companies, have been examined in
greater detail and checked.

More specifically: USA Dairy (Parmalat USA Corp., Farmland
Dairies, Milk Products of Alabama) is the American business
operating in the milk and milk related products sector and is
subject to Chapter 11 protection; for two Brazilian companies
(Parmalat Brasil and Parmalat Partecipacoes) a local Concordata
procedure has been agreed that also covers their subsidiary
companies; the Chilean business is also subject to a local
concordat procedure; EVH, a company incorporated in Canada, has
been granted creditor protection; Parmalat Capital Finance has
been placed into a liquidation procedure by the local court.
This group of companies includes Eurofood IFSC, which is
currently subject to a dispute with the Irish judicial
authorities that contend that the Italian Extraordinary
Administration proceedings do not apply to this company.

As a consequence of taking account of the above, pro forma
results for the revised consolidation relating to the previous
financial year have been drawn up. It is these figures, set out
in the following tables that are comparable with the relevant
results for the current year.

Core Activities

Core Activity revenues have fallen slightly (down 2.4%) when
compared to the same period in the previous year (EUR2,406.9
million compared to EUR2,465.0 million), while Ebitda improved
by 15.9% to EUR167.9 million compared to EUR144.9 million in
August 2003.

This improvement in operating results is largely due to
initiatives of a commercial nature and thanks to operating and
structural cost reduction measures. These measures have together
neutralized the effect of the fall in volumes.

These results do not take account of the extraordinary costs
relating to the Administration procedure (since these represent
an extraordinary event) of some EUR36.2 million for the period
to date.

Revenues for the last month (the difference between the revenue
figure reported at the end of August 2004 and that to the end of
July 2004) were EUR296.3 million, down 9.1% on the previous
month's figure of EUR325.8 million. EBITDA of EUR21.1 million,
even if slightly lower in absolute terms compared to the EUR22.2
million recorded in July, increased as a percentage of revenues
(7.1% compared to 6.8% in July).

Specifically, looking at the Group's main geographical areas of
operation, the following is evident:


Revenues for the period to the end of August reached EUR916.5
million, down 8.2% compared to the EUR998.5 million recorded in
the same period in 2003. However, as highlighted in the previous
month, at revenues reduction Ebitda improved by 12.6% moving
from EUR55.5 million at 31 August 2003 to EUR62.5 million as at
31 August 2004. Ebitda increased as a percentage of revenues
from 5.6% to 6.8%.

Revenues for the month of August were EUR110.2 million while
EBITDA was EUR6.3 million (5.7% of revenues). The trend remains
a positive one even if reduced in magnitude compared to the
previous months. Improved core business revenues, confirming the
trend of the previous months, relate to the dairy businesses
(principally yogurt); these divisions have seen a smaller fall
in volumes than other areas of the business and have benefited
from the heavy cutbacks in promotional and advertising
expenditure and in lower general expenses.

However the fruit juice activities have been hit by the less
favorable weather conditions of this year compared to the same
period a year previously.

It should also be noted that there has been an increase in the
cost of some raw materials (for example, of milk bought by
Parmalat S.p.A., which has increased in price further compared
to July) and an increased impact in percentage terms of fixed
business costs (which remain unchanged in absolute terms
compared to the previous year). Steps are under way in the
second half of the year in order to reduce the level of these


Revenues for the period were EUR155.3 million compared to the
EUR159.3 million achieved at 31 August 2003. Ebitda for the same
period was down from EUR16.3 million to EUR11.0 million.
Revenues for the month of August 2004 were EUR18.6 million while
Ebitda was EUR0.7 million (3.8% of revenues), down on the trend
of recent months.

Amongst the factors underlying the decrease in Ebitda are the
increase in the cost of milk from the beginning of this year
which has not been balanced by corresponding increases in
selling prices. To this can be added a lower contribution from
seasonally influenced products (Royne branded ice creams and
milk shakes) that have been heavily penalized by the less
clement weather conditions than were seen in the same period
last year and the notable fall in the number of tourists in

It should be noted that there has been increased price
competition. There has also been a particular need to counter a
strong promotional campaign by international competitors in the
yogurt sector while in the flavoured milk sector competitors
have been progressively increasing their television advertising

South Africa

Revenues as at 31 August 2004 of EUR160.7 million grew 34.7%
compared to the EUR119.3 million of the same period in 2003.
Ebitda also grew significantly from EUR9.6 million to EUR12.6
million (+31.3%). This marked improvement at the revenue and
Ebitda levels compared to the same period of the previous year
was due to a number of factors: the acquisition of new brands
(Simonsberg), the increased strength of the Parmalat brand in
the yogurt and cheese sectors, a marked increase in UHT milk
volumes as well as to the favourable appreciation of the South
African Rand against the Euro (+7.8%). Also in volume terms
there was an increase in sales of low margin products such as
bulk cheese.

Revenues for the month of August 2004 were EUR25.5 million while
Ebitda for the month was EUR2.0 million (7.8% of revenues).


The major political and social instability that has impacted
Venezuela for some time has been one of the main causes of a
significant depreciation of the Venezuelan currency against the
Euro (-25.9% compared to August 2003).

The absence of sufficient credit lines for the importation of
powdered milk, increased raw material prices in the domestic
market not balanced by a rise in retail pricing, as well as
reduced sales volumes in fruit juices, led to a further marked
reduction in revenues which fell from EUR 131.9 million at
August 2003 to EUR96.9 million at the end of August 2004 (-
26.5%). There was an accompanying strong decrease in Ebitda
which fell in absolute terms from EUR16.9 million to EUR3.0
million and as a percentage of revenues from 12.8% to 3.1%.

Revenues for the month are EUR9.7 million and Ebitda is EUR0.6
million. However in August there was a slight improvement in
operating profitability compared to the previous month (from
2.4% in July to 6.2% in August) thanks certainly to the price
increase of condensed milk that occurred during the month.


In spite of the slight depreciation of the Canadian dollar
relative to the Euro since August 2003 (-2.6%) revenues were up,
increasing from EUR748.1 million for the same period in 2003 to
EUR771.5 million to the end of August this year.

At net revenues growth, Ebitda increased markedly both in
absolute terms (up 14.3% compared to August 2003 from EUR44.0
million to EUR50.3 million) and as a percentage of revenues
(+0.6% from 5.9% to 6.5%). This was thanks to close control of
advertising and promotional expenses and of general costs.

Revenues for the month in Canada were EUR103.1 million while
Ebitda was EUR7.4 million (7.2% of revenues).


Revenues for the period reached EUR242.2 million, in line with
the previous year's EUR239.7 million. Ebitda was also stable at
EUR19.5 million compared to EUR18.6 million. These results were
achieved thanks to a favourable trend in the Australian
dollar/Euro exchange rate (+5.6%), an increase in milk volumes
(particularly pasteurized milk), a reduction in general and
promotional expenses and improved raw materials purchasing.
These factors allowed for the reduced average unit selling price
of milk implemented by the management during the month.

Revenues for the month of August were EUR22.2 million while
Ebitda was EUR2.2 million.

Non-Core Activities

Non-Core Activities' revenues as at 31 August 2004, while down
compared to the same period last year (EUR376.4 million compared
to EUR501.9 million, down 25.0%), were accompanied by an
improved Ebitda result, which while still negative, showed
improvement at a negative EUR15.2 million compared to a negative
EUR28.7 million for the same period in 2003.

In August 2004 total sales were EUR18.6 million whilst Ebitda
was zero. The strong reduction in losses compared to 2003 is
principally linked to actions undertaken in Italy and at the US
Bakery operations.


The Non-Core activities of Parmalat Spa whilst reporting lower
revenues than at the end of August 2003 showed improved
operational profitability (of 57.9% moving from a negative EUR
10.7 million to a negative EUR4.5 million). To this has
contributed the suspension of the activities in the mineral
water sector and a drastic reduction in promotional and
advertising activities related to bakery and juices.

USA Bakery

Revenues generated by the US bakery activities (EUR188.0 million
in August 2004 compared to EUR231.4 million at the end of August
2003) were lower, this time by 18.8%. The heavy depreciation of
the US dollar during the year (down 10.5%) should be noted.
However, the negative effect of the fall in volumes and of the
increase in the price of raw materials has been balanced by more
targeted promotional investment and by the reorganization of the
operations (in July the Bollingbrook Head Office was closed
down) and the reduction of general expenses.

Thanks to these moves, there has been a marked improvement in
Ebitda compared to the same period last year, moving from a
negative EUR13.8 million in 2003 to a negative EUR6.6 million at
the end of August 2004.

Amongst the other companies in this category two Portuguese
businesses - FIT and Italagro - stand out.

Both, in the face of lower revenues, saw an increase in Ebitda.
Specifically, Ebitda at Italagro grew by 30.8% year-on-year,
while at FIT Ebitda more than doubled.

Net Financial Position:


                   Situation Situation Situation Situation
Values in          as at     as at     as at     as at
millions of
Euro's             31Dec 03 31Dec 03   31Jul 04  31Aug 04

Short term
Financial assets     (121.4) (104.7)     (125.2)   (126.0)
of which:

assets               (20.9)   (20.9)      (10.4)    (1.0)

Available liquidity (100.5)   (83.8)     (114.8)  (125.0)

Accruals on
financial assets
(incl. Interco.)     (61.9)   (57.2)      (76.6)   (31.0)

Total short term
financial assets    (183.3)  (161.9)      (201.8) (157.0)

Financial debts    13,457.5 11,402.6     11,447.7 11,448.6

Accruals on
financial liabilities
(incl. Interco.)      256.2    200.8        231.0   229.3

Total financial
liabilities        13,713.7 11,603.4     11,678.7 11,677.9

companies)         13,530.4 11,441.5     11,476.9 11,520.9

equity methodology
evalued companies     132.0  2,220.9      2,523.7  2,523.7

Total financial
indebtedness       13,662.4 13,662.4     14,000.6 14,044.6

During the month of August, the Net Financial Position of the
Group, was characterized by a number of accounting adjustments:

a. EUR 9,3 million as been reclassified from liquidity financial
assets to fixed financial assets. It's a deposit made in the
past by a South African subsidiary in order to guarantee a debt
resulting from swap contract;

b. EUR 34,5 million classified as accruals on financial assets
due to subsidiary Parmalat Soparfi's interest have been
devaluated. Excluding these adjustments, referred to the past
period, the financial position is unchanged.

No use has been made until now of the line of credit of EUR105.8
million provided by a pool of banks on 4 March 2004.

With reference to those companies that have been consolidated in
their entirety, the net financial debt with third parties is
divided as follows:

                          Situation Situation Situation
Values in millions of
Euro's                    Pro-Forma
                          as at     as at     as at
                          31Dec 03  31Jul 04  31Aug04

Companies in
extraordinary administration
subject to proposed
composition with
creditors                  10,055.3 10,048.6  10,088.7

Other companies in
administration                 56.9      41.4     54.5

Other companies             1,329.3   1,386.9  1,377.7

Financial indebtedness/
Total                      11,441.5  11,476.9 11,520.9

Companies in Extraordinary Administration

The net indebtedness of these companies towards third parties,
incurred prior to their entry into Extraordinary Administration,
should be considered as being largely short-term in nature,
given the current situation of default on the covenants
underlying the financial contracts the change in the
indebtedness of the companies in Extraordinary Administration is
substantially due to the above adjustments relating to Parmalat

Of particular note is the increased levels of liquidity at the
companies subject to proposed Composition with Creditors, this
having increased from EUR24 million as at 31 December 2003 to
EUR68.2 million as at 31 August 2004.

Other Companies

The remaining operating and financial companies not subject to
the Procedure and totally consolidated, have net financial
indebtedness towards third parties as at 31 December 2003 of
EUR1,329.3 million and at 31 August 2004 of EUR1,377.8 million.
Of this amount EUR689.7 million is represented by debt of a
medium or long term nature. A number of companies, amongst these
Portugal and South Africa, are currently in talks to renegotiate
their debt in order to consolidate it.

Principal Companies in Extraordinary Administration

The following tables summarize the situations of the principal
Italian companies in Extraordinary Administration:

Significant Events during August and September

The events listed in the following summary that occurred during
the course of August and in the month of September to date are
already covered by specific press releases available to view in
their entirety on the website

6 August
Request to the Court of Parma that UBS Limited be subject to a
claw- back action following bankruptcy for an amount of EUR290
million plus interest.

9 August
Request to the Court of Parma that Deutsche Bank S.p.A be
subject to a clawback action following bankruptcy for an amount
of EUR17 million plus interest.

10 August
Publication on a number of European daily newspapers of the
decrees of the delegated Judge dated 3 August 2004 and 6 August
2004 relative to the proposed Composition with Creditors and the
summary Restructuring Plan for the Parmalat Group. The relevant
press release was not distributed into the United States of
America or other restricted territories.

11 August
Notification to bond holders of the procedure to unblock their
securities. As a consequence of this holders of such bonds are
able to trade their securities.

13 August
Approval by the local court in Brazil of the request for
protection from creditors of Parmalat Brasile and Parmalat
Partecipa‡oes as presented by Felsberg & Associates.

17 August
Publication of a Notice relating to the registration as credits
of Private Placements. This Notice makes clear that holders of
Private Placements are required to request inclusion amongst the
issuing company's creditors in order to have their status as
creditors confirmed.

18 August
The filing by the Extraordinary Commissioner of a complaint with
the Circuit Court of Cook County in the State of Illinois
requesting that the former external auditors of Parmalat, Grant
Thornton International and Deloitte Touche Tohmatsu and their US
and Italian subsidiaries be required to pay damages relating to
a series of accusations. The Extraordinary Commissioner asserts
that the former external auditors played an absolutely central
role in the causing of damages that overcame the Parmalat Group
and in relation to this is requesting that the firms in question
be condemned to pay damages of no less than US$10 billion.

19 August
Request to the Court of Parma that Credit Suisse First Boston
International be subject to a claw-back action following
bankruptcy for an amount of EUR248.3 million plus interest.

10 September
Invitations to tender to acquire buildings belonging to Eurolat
S.p.A. in Extraordinary Administration, located in the district
of Lodi, Montanaso Lombardo and Tavazzano con Villavesco.

18 September
Publication of a guide to the submission of comments on the list
of creditors drawn up by the Extraordinary Commissioner and how
eventual responses to such comments will be made.

21 September
Approval of the project for an Offer and Listing of shares and
warrants in Parmalat S.p.A. (Assumptor) on the Mercato
Telematico Azionario of the Borsa Italiana.


COEUR D'ALENE: S&P Affirms Ratings; CreditWatch Removed
Standard & Poor's Ratings Services affirmed its 'B-' corporate
credit and senior unsecured debt ratings on Coeur D'Alene Mines
Corp. and removed the ratings from CreditWatch, where they were
placed on June 1, 2004, with positive implications.

The outlook is stable. Coeur D'Alene, an Idaho-based silver and
gold mining company, currently has about $180 million in debt.

"The affirmation follows the company's announcement that it was
unsuccessful in its proposed hostile takeover of Vancouver-based
Wheaton River Minerals Ltd.," said Standard & Poor's credit
analyst Paul Vastola.

Coeur was unable to garner the required level of shareholder
approval from Wheaton's shareholders. The proposed deal, had it
been successful, was expected to result in a meaningful
improvement in Coeur's business and financial profiles.

The ratings on Coeur reflect its high business risk as a
capital-intensive commodity-based company with a modest scope of
operations, relatively high cost position, limited reserve base
(averaging about 3.5 years), and a very weak financial
performance. Ratings also incorporate the company's aggressive
expansion plans and uncertainties regarding its ability to
successfully develop lower-cost mining operations. Challenges
include volatile prices, governmental regulation, environmental
issues, permitting, and adverse geological conditions.

The majority (currently about 66%) of Coeur's production is
generated at its high-cost Rochester, Nev. and Galena, Idaho
mines. Coeur has undertaken several initiatives to improve its
cost profile and bolster its reserve base. New lower-cost
production from its Cerro Bayo mine in Chile and its Martha mine
in Argentina, together with cost reductions at its Rochester and
Galena mines, should help lower Coeur's costs further by the end
of 2004. However, reserves still are short lived at
approximately 3.5 years.

To address its short-lived reserve life, the company recently
completed the final feasibility study for its Kensington gold
project in Alaska but still needs to obtain additional permits
to proceed with its development. Coeur also expects to soon
complete its final feasibility study for its San Bartolome
silver project in Bolivia. Currently, the company anticipates
that it will proceed with both projects, likely before year-end


AVIANCA: Additional Bidder Surfaces
Barely a week after a committee of Avianca creditors approved a
plan that would transfer 75% ownership in the carrier to
Brazil's Grupo Sinergy, a new bidder surfaced. Dow Jones
Newswires relates that Alberto Padilla, president of Colombia's
pilots association, told local radio station la W that an
unnamed Arab businessman has expressed an interest in injecting
money into Avianca.

"We wanted to get to know him," said Padilla. "That's why we
traveled to Dubai. We originally were expecting to meet him
once, but we met him twice," he added. Padilla is yet to
disclose the results of the meetings.

Avianca's restructuring plan, which involves a transfer of
ownership to Sinergy, has already received endorsement from a
committee of creditors last week. The Company has until November
4 to seek creditor support for the restructuring plan. After the
exclusive period, creditors will vote to confirm the plan on
November 16.

Sinergy, owned by Brazilian oil magnate German Efromovich,
offered in March to invest US$64 million into Avianca and assume
nearly $300 million in debt in return for a 75% stake in

However, Padilla said his association isn't fully satisfied with
the Brazilian offer.

"Who guarantees that German Efromovich is going to pay us the
$97.6 million the company owes retired pilots?" he asked.

When Avianca's owner, Valores Bavaria, signed a letter of intent
with the Brazilian entrepreneur, the company agreed to pay
Sinergy a US$20 million fine if it accepted another bid.

Padilla said the Arab businessman is willing to cover that cost.

* Colombia Seeks Renewal of 2-Yr. Loan Accord With IMF
Colombia's Finance Minister Alberto Carrasquilla said the
government is seeking to renew a two-year loan agreement with
the International Monetary Fund that expires in January, relates
Bloomberg. Carrasquilla said the new loan accord will be for
less than the US$2.2 billion amount of the current accord and
probably for less time.

Colombia informed a visiting IMF team on Sept. 2 that it was
considering extending the IMF accord, while the IMF delegation
said the Washington-based lender was willing to continue its
"close ties" with Colombia.

"This means it's a done deal," said Alberto Bernal, head of
Latin America research at in New York.

D O M I N I C A N   R E P U B L I C

* Dominican Republic Negotiates Oil Credit Line With Venezuela
In an effort to continue importing oil amid high crude prices
and a severe economic deterioration, Dominican Republic said it
would seek to establish a credit line with Venezuela, reports
Dow Jones Newswires.

"The situation (of oil imports) hasn't been resolved yet. We are
thinking of (establishing) a credit line with the government of
Venezuela to import both oil and crude products," said Magin
Diaz, the undersecretary of finance.

The Caribbean country has faced a power crisis during the last
year as well as banking closures, a devaluation of the currency
and an economic contraction that have unraveled its seeming
economic stability. The government now continues to struggle
with reforming the energy sector and finding a steady and
affordable source of oil.


KAISER ALUMINUM: Secures Extension of Limited Consent, Waiver
Kaiser Aluminum (OTCBB: KLUCQ)said Thursday it has obtained
approval from the U.S. Bankruptcy Court for the District of
Delaware for an extension of an existing limited consent and
waiver -- from September 30, 2004 through October 31, 2004 -- in
respect of a financial covenant associated with its Post-
Petition Credit Agreement. The limited consent and waiver also
provides lender approval of the pending sale of Kaiser's
interests in and related to the Valco aluminum smelter in Ghana.

In addition, the lenders have approved the extension pending
completion of a broader amendment to the Credit Agreement.
Kaiser's Form 10-Q for the second quarter of 2004 includes
additional details on such matters.

Kaiser Aluminum is a leading producer of fabricated aluminum
products, alumina, and primary aluminum.

CONTACT: Kaiser Aluminum Corp.
         5847 San Felipe
         Suite 2500
         P.O. Box 572887
         Houston, TX 77257-2887
         Web Site:


CORPORACION DURANGO: Claims Verification Concluded
The filing of proof of claims against Corporacion Durango S.A.
de C.V. ended September 30, 2004. Creditors who failed to submit
the proper claim documents with court-appointed conciliator
Rebeca Castanos could be barred from participating in the
concurso proceedings.

However, these noteholders are not required to file a proof of

1. Holders of 12 5/8% Senior Notes due 2003 (CUSIP No.
2. 13 1/8% Senior Notes due 2006 (CUSIP No. 21986MAA3)
3. 13 1/2% Senior Notes due 2008 (CUSIP No. 21986MAB1)
4. 13 3/4% Senior Notes due 2009 (CUSIP No. 21986MAD7)

Holders of these Notes are not required to file separate proof
of claims since their claims will be recognized on a global
basis by virtue of their inclusion on the list of claims
submitted by the "visitador" in the concurso proceeding and the
global proof of claim the Company understands will be filed by
the indenture trustee for the Notes.

CONTACT: White & Case LLP
         Legal Counsel
         Mr. Pedro A. Jimenez
         200 South Biscayne Blvd.
         Suite 4900
         Miami, Florida 33131
         Phone: (305) 371-2700
         Fax: (305) 358-5744

HYLSAMEX: Subsidiary Obtains $100M Unsecured Bank Loan
HYLSAMEX, S.A. de C.V. (BMV: HylsamxB, HylsamxL) ("Hylsamex" or
"the Company") announced Thursday that its subsidiary Hylsa,
S.A. de C.V. ("Hylsa") has obtained US$100 million in unsecured
medium-term bank financing. Net proceeds of this transaction
were utilized by Hylsa to fully repay and close bank debt
denominated "Facility A". Through this transaction and the other
bank debt prepayments made so far in 2004, Hylsamex has
completely paid down all bank debt originated in the 2002 debt

Consequently, guarantees have been released and Hylsamex has
increased its flexibility. The final prepayment of Hylsamex's
last piece of restructured debt provides enhanced flexibility in
three key fronts:

- it reduces the level of encumbered assets;
- it eliminates other financial restrictions - mainly the
resumption of dividends from Hylsa to the holding company
"Hylsamex, S.A. de C.V."; and
- it improves borrowing costs.

In addition, the Company's average life of debt is now 4.2

More specifically, this refinancing allows Hylsa to classify 91%
of its total debt as "unsecured", thus strengthening Hylsa's
credit profile.

Also, Hylsa and Galvak's renewed flexibility paves the road for
Hylsamex to resume a sound and continuing dividend policy.

Lastly, Hylsamex's consolidated debt profile reflects additional
improvement, as part of management's efforts during 2004 to
proactively modify the Company's financial structure.

The main terms of the US$100 million new bank financing at Hylsa

- unsecured, five-year amortizing loan with a one-year grace
period for principal payments; and

- 16 equal quarterly debt amortizations over the remaining four

This transaction will reduce, on average, Hylsa's bank debt
borrowing spread by approximately 200 basis points.

Additionally, Hylsa obtained a new unsecured US$60 million
Liquidity Facility that replaces the former US$40 million
secured credit line.

The new, unsecured US$60 million Liquidity Facility has been
granted for a period of three years with final maturity on
September 30, 2007.

The funds will be used for general corporate purposes and
working capital needs. The lead arrangers for these transactions
were Citigroup and JPMorgan, together with Bayerische Hypo-und-
Vereinsbank and HSBC as arrangers.

Hylsamex is a steel producer and processor, encompassing the
minim ill route with vertical integration, which includes
readily available sources of low cost iron ore and proprietary
technology for the direct reduction of iron. The Company
manufactures a broad spectrum of steel products with a
significant emphasis on value-added products. Hylsamex, which
has a manufacturing and distribution presence in North America,
reaches its end customers through an extensive wholly-owned
distribution network.

CONTACTS: Mr. Othon Diaz Del Guante
          Phone: (52-81) 8865-1240

          Mr. Ismael De La Garza
          Phone: (52-81) 8865-1224

T R I N I D A D   &   T O B A G O

NWRHA: Faces Allegations of Discrimination
The Medical Professionals Association of Trinidad and Tobago
(MPATT) accused the North-West Regional Health Authority (NWRHA)
of discrimination against local doctors by canceling planned
interviews for positions of house officer, the Trinidad Express

"Twenty people were to be interviewed, half of whom were
Trinidadians and the remaining were foreign doctors. The
interviews were cancelled because there were not enough foreign
applicants," MPATT said in a statement.

But Danielle A Jones, Communications Officer of NWRHA, denied
MPATT's claims, saying: "Twenty-eight had to be rescheduled to
another date and staff had been instructed to notify candidates
of the cancellation of interviews for that date."

The recent allegations came two months after Trinidad's Ex-
Health Minister Dr. Hamza Rafeeg called for the ouster of
NWRHA's management for their alleged incompetence and
mismanagement. The ex-official made the call after an audit
revealed that excessive and exorbitant amounts have been used
for social functions.

NWRHA management had supposedly funneled TT$173,099.61 of
taxpayer's monies on social events for its staff members. NWRHA
Internal Auditor Harriram Laloo said that the board of directors
had not approved these disbursements.

WASA: Customers Await Compensation for Sub-Standard Service
Trinidad and Tobago's Water and Sewerage Authority will
compensate customers if service falls below standard, the
Trinidad Express reports. Guaranteed standards for water supply
will be introduced January 1, 2005, at which point WASA will
start monitoring the country's water service. Results of the
monitoring will be reported to the Regulated Industries
Commission (RIC) from March 5, 2005. Standards will be in force
for three years before being reviewed, but they will not attract
compensation until January 1, 2006.

Breaches of standards will include a failure by WASA to supply
adequate water during a certain period, while other standards
will relate to when the water service resumes after a planned

Proposed levels of compensation include 15% off domestic
customers' quarterly bills; 15% off commercial customers'
monthly bills; and 3% off industrial customers' monthly bills.


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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