TCRLA_Public/041012.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, October 12, 2004, Vol. 5, Issue 202

                            Headlines


A R G E N T I N A

ALBERDI 4902: Court Names Trustee for Bankruptcy
ANTONIO PENA: Court OKs Creditor's Bankruptcy Call
ASERRADERO COLONIA: Initiates Bankruptcy Proceedings
BANCO FRANCES: To Issue 103M New Shares
BLADEX: Announces Prepayment of Argentine Loan

CASA BARCIA: Liquidates Assets to Pay Debts
CENTRO MEDICO: Reorganization Concluded
DISCO: Cencosud Exec. Hopes to Complete Purchase
GALA ROJA: Claims Verification Ends Tomorrow
KAIXO S.A.: Gets Liquidation Order From Court

MULTIFINAN S.A.: Court Declares Company Bankrupt
PLAZA VENECIA: Court Favors Creditor's Bankruptcy Petition
POWERPRINT S.A.: Begins Liquidation Proceedings


B E R M U D A

GLOBAL CROSSING: Regains SEC, NASDAQ Compliance
LINES OVERSEAS: Faces Another Lawsuit


B R A Z I L

ACESITA: Proceeds With Reverse Split of Shares
ARACRUZ CELULOSE: Posts $298.8M Net Revenue in 3QO4
CFLCL: Revenue Jumps 29% Year-on-Year
TCP: Wraps-Up Public Tender Offer for TCO Shares


C H I L E

AES GENER: Demands $26M Debt Payment From Endesa Chile


C O L O M B I A

AVIANCA: Pilots Seek Way to Block Brazilian Offer


E C U A D O R

BANCO DEL PICHINCHA: Fitch Upgrades Long-term Rating To 'B-'
PRODUBANCO: Fitch Upgrades Long-term Rating to `B' From `CCC+'


G R E N A D A

* GRENADA: S&P Lowers Ratings


J A M A I C A

C&WJ: Warns Shareholders of Possible Impairment Costs


M E X I C O

IMSS: Salary Hike Stand Off Could Lead to Strike
MAXCOM TELECOMUNICACIONES: Exchange Offer Expires


T R I N I D A D   &   T O B A G O

FNCU VENTURE CAPITAL: Faces Permanent Shutdown


V E N E Z U E L A

CITGO: Opens Tender Offer for 11 3/8% Senior Notes

     -  -  -  -  -  -  -  -

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

ALBERDI 4902: Court Names Trustee for Bankruptcy
------------------------------------------------
Buenos Aires accountant Bernardo Mazer was assigned trustee in
charge of the bankruptcy proceedings for local company Alberdi
4902 y Escalada S.R.L., relates Infobae.

The trustee will verify creditors' claims until December 10,
2004, the report adds. After that, he will prepare the
individual reports, which are to be submitted in court on
February 21 next year. The general report should follow by April
4 of that year.

Court no. 24 of the city's civil and commercial tribunal holds
jurisdiction over the Company's case. Clerk no. 39 assists the
court with the proceedings.

CONTACT: Mr. Bernardo Mazer, Trustee
         Avda Corrientes 4434
         Buenos Aires


ANTONIO PENA: Court OKs Creditor's Bankruptcy Call
--------------------------------------------------
Antonio Pena e Hijos S.A. entered bankruptcy after Judge
Taillade, working under court no. 20 of Buenos Aires' civil and
commercial tribunal, approved a motion filed by Air Liquide
Argentina S.A., reports La Nacion.

Working with Dr. Amaya, the city's clerk no. 39, the company
assigned Mr. Roberto Leibovicus 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 20, 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: Antonio Pena e Hijos S.A.
         Viamonte 1479
         Buenos Aires

         Mr. Roberto Leibovicus, Trustee
         Tucuman 1585
         Buenos Aires


ASERRADERO COLONIA: Initiates Bankruptcy Proceedings
----------------------------------------------------
Court no. 10 of Buenos Aires' civil and commercial tribunal
declared Aserradero Colonia Garabi S.R.L. "Quiebra," reports
Infobae. The city's clerk no. 20 assists the court on the case
that will close with the liquidation of the Company's assets to
repay creditors.

Mr. Jacobo Beker, who has been appointed as trustee, will verify
creditors' claims until November 11, 2004 and then prepare the
individual reports based on the results of the verification
process. The individual reports will then be submitted in court
on February 8, 2005 followed by the general report on March 22,
2005.

CONTACT: Mr. Jacobo Beker, Trustee
         Jeronimo Salguero 2244
         Buenos Aires


BANCO FRANCES: To Issue 103M New Shares
---------------------------------------
Argentine bank BBVA Banco Frances told the local stock exchange
that it plans to sell up to 103 million ordinary shares to
preferred rights holders.

Citing a statement to the bourse, Dow Jones Newswires reports
that the offering will run from Oct. 18 - Nov. 17. The addition
of the new 103 million shares will increase Banco Frances' share
capital by 28%.

The bank said it will determine the price of the new shares no
later than the fifth trading day before the end of the
subscription period. Argentine Research analyst Rafael Ber said
that the majority of the preferred rights - 76.5% - are in the
hands of BBVA.

In exchange for the new shares, BBVA said it will forgive a loan
of $77.7 million plus interest accrued up to the moment the new
securities are delivered. The remaining preferred rights holders
will pay in cash.

The $77.7 million loan is part of a $117.7 million capital
infusion that Banco Frances received from its parent in March.

Banco Frances is a unit of Spanish financial holding company
Banco Bilbao Vizcaya Argentaria SA.

CONTACT:  Maria Elena Siburu de Lopez Oliva
          Investor Relations Manager
          Phone: (5411) 4341 5035
          E-mail: mesiburu@bancofrances.com.ar

          Maria Adriana Arbelbide
          Investor Relations
          Phone: (5411) 4341 5036
          E-mail: marbelbide@bancofrances.com.ar


BLADEX: Announces Prepayment of Argentine Loan
----------------------------------------------
Banco Latinoamericano de Exportaciones, S.A. -- Bladex (NYSE:
BLX) (the "Bank"), announced Friday the receipt of a US$56
million prepayment on an Argentine loan. The Bank will account
for the impact of this prepayment by reversing allocated loan
loss provisions back to earnings.  As a result, Bladex expects
to generate a profit for accounting purposes of approximately
US$43 million, which will increase the Bank's equity capital by
the same amount.

Along with the receipt of scheduled principal payments, other
prepayments, and asset sales, this prepayment will result in a
reduction of the Bank's credit portfolio in Argentina from
US$360.1 million at June 30, 2004 to approximately US$253.1
million at October 8, 2004.

Jaime Rivera, CEO of Bladex stated: "This significant reduction
in our exposure in Argentina validates our strategy that
supporting our clients is the best way to maximize their
repayment ability and speaks unequivocally of Bladex's
institutional strengths.  We look forward to continued progress
in this portfolio, and to market conditions gradually allowing
us to again finance trade in an important country that we know
well, and where we have a number of valuable client
relationships."

Bladex is a supranational bank originally established by the
Central Banks of Latin American and Caribbean countries to
finance and promote trade in the Region. Based in Panama, its
shareholders include central banks and state-owned entities in
23 countries in the Region, Latin American and international
commercial banks, and institutional and retail investors.

URL: http://www.blx.com

CONTACT:  Carlos Yap, Senior Vice President - CFO
Tel.: (country code 507) 210-8581, E-mail: cyap@blx.com

    -or-

i-advize Corporate Communications, Inc.
80 Wall Street, Suite 515,
New York, NY  10005
Attention:  Melanie Carpenter / Peter Majeski
Tel.: (212) 406-3690, E-mail:  bladex@i-advize.com


CASA BARCIA: Liquidates Assets to Pay Debts
-------------------------------------------
Casa Barcia S.A. will begin liquidation proceedings following
the pronouncement made by court no. 1 of Pergamino's civil and
commercial tribunal that the company is bankrupt, Infobae
reports.

The bankruptcy ruling places the company under the supervision
of court-appointed trustee Jorge Alberto Calandri. Mr. Calandri
will verify creditors' proofs of claims until November 2. The
validated claims will be presented in court as individual
reports on December 5 followed by the general report on February
28 next year.

CONTACT: Casa Barcia S.A.
         San Nicolas 772
         Pergamino

         Mr. Jorge Alberto Calandri, Trustee
         Italia 943
         Pergamino


CENTRO MEDICO: Reorganization Concluded
---------------------------------------
The settlement plan proposed by Centro Medico Rioja S.A. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by the court
and will now be implemented by the company. Court no. 23 of
Buenos Aires' civil and commercial tribunal handles this case
with assistance from Clerk no. 46.

CONTACT: Centro Medico Rioja S.A.
         Av Velez Sarsfield 340
         Buenos Aires
         Phone: (011) 4304-4126


DISCO: Cencosud Exec. Hopes to Complete Purchase
------------------------------------------------
A top executive of Chilean retailer Cencosud SA (CENCOSUD.SN),
expressed confidence that his company will be able to overcome
legal obstacles to its bid to buy Argentine supermarket chain
Disco SA from Dutch Royal Ahold NV (AHO), reports Dow Jones.

"We are confident everything will turn out fine," Cencosud
President Horst Paulmann told Dow Jones Newswires in an email
Friday.

Cencosud announced in March that it was buying Disco from Ahold
for US$315 million. But two federal judges in separate cities in
the province of Mendoza subsequently issued rulings blocking
Cencosud's acquisition of Disco. These rulings have prevented
Argentina's antitrust body - the National Commission for Defense
of Competition - from reviewing the acquisition.

CONTACT:  DISCO S.A.
          Larrea 847, Piso 1
          1117 Buenos Aires, Argentina
          Phone: +54-11-4964-8000
          Fax: +54-11-4964-8076
          Home Page: http://www.disco.com.ar


GALA ROJA: Claims Verification Ends Tomorrow
--------------------------------------------
Ms. Nora Roger, the trustee supervising the reorganization of
Gala Roja S.R.L., is scheduled to close the verification of
creditors' claims tomorrow. Creditors are required to submit
relevant documents to the trustee by the deadline to qualify
under the Company's settlement plan.

Judge Taillade of Buenos Aires' Civil and Commercial Tribunal
court no. 20 handles this case with the assistance of Dr.
Perillo, clerk no. 40.

CONTACT: Gala Roja S.R.L.
         Maipu 763
         Buenos Aires

         Ms. Nora Roger, Trustee
         Hipolito Yrigoyen 1349
         Buenos Aires


KAIXO S.A.: Gets Liquidation Order From Court
---------------------------------------------
Buenos Aires-based Kaixo S.A. proceeds to liquidate its assets
after court no. 20 of the city's civil and commercial tribunal
issued a bankruptcy order against the Company. Its Creditor
Cooperativa Concepcion Ltda. requested the bankruptcy after the
Company defaulted on scheduled debt payments.

The city's Clerk no. 39 assists the court on this case.

CONTACT: Kaixo S.A.
         Viamonte 613
         Buenos Aires


MULTIFINAN S.A.: Court Declares Company Bankrupt
------------------------------------------------
Judge Santachitta, temporarily serving for court no. 18 of
Buenos Aires' civil and commercial tribunal, declared local
company Multifinan S.A. "Quiebra", relates La Nacion. The court
approved the bankruptcy petition filed by its creditor Mr. Oscar
Rivero.

The Company will undergo the bankruptcy process with Mr. Gustavo
Micciullo as its trustee. Creditors are required to present
their proofs of claims to the trustee for verification before
November 19, 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. Estevarena, clerk no. 35, assists the court on the case.

CONTACT: Multifinan S.A.
         Avenida Corrientes 456
         Buenos Aires

         Mr. Gustavo Micciullo, Trustee
         Avenida Cordoba 1417
         Buenos Aires


PLAZA VENECIA: Court Favors Creditor's Bankruptcy Petition
----------------------------------------------------------
Mr. Mario Araoz successfully sought for the bankruptcy of Plaza
Venecia S.R.L. after Judge Villanueva, working for court no. 23
of Buenos Aires' civil and commercial tribunal, declared the
Company "Quiebra."

As such, the Company will now start the bankruptcy process with
Mr. Mauricio Nudelman as trustee. Creditors of the Company must
submit their proofs of claim to the trustee before November 19,
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.

La Nacion reports that the creditor sought for the Company's
bankruptcy after the latter failed to pay debts amounting to
US$15,182.57. Dr. Ovadia, clerk no. 45, assists the court on the
case that will culminate in the liquidation of all of its
assets.

CONTACT: Plaza Venecia S.R.L.
         Avenida Rivadavia 6499
         Buenos Aires

         Mr. Mauricio Nudelman, Trustee
         Lavalle 2024
         Buenos Aires


POWERPRINT S.A.: Begins Liquidation Proceedings
-----------------------------------------------
Powerprint S.A. of Buenos Aires will begin liquidating its
assets after court no. 20 declared the company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee, Mr. Bernardo Mazer.

The trustee will review claims forwarded by the company's
creditors until November 30, 2004. After claims verification,
the trustee will submit the individual reports for court
approval on February 14, 2005. The general report will follow on
March 30, 2005.

Clerk no. 40 assists the court on this case.

CONTACT: Mr. Bernardo Mazer, Trustee
         Avda Corrientes 4434
         Buenos Aires



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

GLOBAL CROSSING: Regains SEC, NASDAQ Compliance
-----------------------------------------------
Global Crossing (NASDAQ: GLBCE) announced that it filed Friday
with the Securities and Exchange Commission an amendment to its
2003 annual report on Form 10-K, which includes restated audited
financial statements for 2003, and two Form 10-Qs, which include
its financial results for the first and second quarters of 2004.
Grant Thornton LLP, the company's predecessor auditors for the
three years ended December 31, 2003, reissued their audit
reports on the company's financial statements for the fiscal
years ended December 31, 2002 and 2001, and issued an audit
report on the company's restated financial statements for the
year ended December 31, 2003. With these filings, the company
has regained compliance with SEC filing and NASDAQ listing
requirements.

The company also announced that it has reached an important
agreement with certain affiliates of its majority shareholder,
Singapore Technologies Telemedia (ST Telemedia) to recapitalize
its current debt holdings in Global Crossing and provide
additional short-term liquidity to the company. The company
believes that these steps will facilitate the execution of debt
financings in the fourth quarter of 2004 intended to meet Global
Crossing's long-term funding requirements.

In addition, Global Crossing announced a business restructuring
plan to streamline and better focus its operations to broadly
serve enterprise customers with higher margin global, IP and
managed services offerings and to de-emphasize lower margin
legacy services, designed to accelerate the point at which the
company reaches operating cash flow break-even.

"With the initiatives announced, we've regained compliance with
SEC reporting and NASDAQ listing requirements, taken an
important first step in securing long-term capital, and laid out
a business framework for achieving our goal of becoming a leader
in global telecommunications," said John Legere, Global
Crossing's chief executive officer. "We're looking forward now
to concentrating on Global Crossing's future, as we tighten our
focus on providing customers with the global, IP services our
network was built to deliver."

2003 Restatement

As previously announced, the company has restated its 2003
results. The amount of the adjustment to its 2003 cost of access
expenses is $67 million, with an additional approximately $12
million balance sheet reclassification related to cost of access
amounts recorded upon the company's emergence from bankruptcy.
The restatement resulted in:

i) an increase of approximately $79 million in total cost of
access liabilities from $150 million to $229 million as of
December 31, 2003;

ii) an increase of approximately $2 million in cost of access
expense for the period December 10, 2003 to December 31, 2003,
resulting in an increase in the operating loss for this period
from $8 million to $10 million and an increase in the net loss
from $9 million to $11 million for this period; and

iii) an increase of approximately $65 million in cost of access
expense for the period January 1, 2003 to December 9, 2003,
resulting in an increase in the operating loss for this period
from $133 million to $198 million and an increase in the net
loss from $230 million to $295 million, excluding gains on
emergence from bankruptcy.

First Quarter 2004 Financial Results

The first quarter of 2004 reflects the first full quarter of
results for the company since its emergence from bankruptcy on
December 9, 2003.

"Notwithstanding the difficult competitive environment evidenced
by declining revenues industry-wide, we have continued to make
progress, and our first half results are generally in line with
our expectations," said Mr. Legere. "We continue to develop new
products and services that leverage our unique global IP
footprint, operate our network at the highest levels of quality
performance, and customer satisfaction measures have shown
steady increases. We are ready for growth."

Revenue

Total revenue for the first quarter of 2004 was $690 million,
compared to $735 million for the same period in 2003. Telecom
services revenue for the first quarter of 2004 was $664 million,
compared to $671 million for the same period in 2003, excluding
$19 million reduction of non-cash indefeasible rights of use
(IRU) deferred revenue in 2003, or $690 million as reported. In
addition to the lower IRU revenue resulting from the writedown
of IRU deferred revenue due to fresh start accounting, results
were also affected by the continued competitive pricing
environment for telecommunications services, partially offset by
volume increases in both carrier and enterprise businesses.

Despite the overall revenue decline, revenue growth was recorded
in key products such as IP access, IP VPN and managed services
sold to customers in government, research and education, cable,
service provider (XSP) and wireless markets. For example, IP
services volumes in enterprise and carrier markets grew by more
than 50 percent year over year in the first quarter. Volume
growth of IP services in the specific areas mentioned above is
in line with the company's strategy of shifting its mix to
higher-margin data services.

Of the total telecom services revenue reported for the first
quarter of 2004, enterprise services accounted for 38 percent,
as compared to 40 percent for the same period of 2003. Carrier
services were 61 percent of total telecom services revenue,
compared to 59 percent in the first quarter of 2003, and
consumer services remained at one percent.

Of the enterprise services revenue in the first quarter of 2004,
52 percent was attributable to voice services compared to 54
percent for the same period in 2003, and 48 percent was
attributable to data services compared to 46 percent in the
first quarter of 2003. This favorable shift from voice to data
was primarily driven by an increase in managed services and
lower attrition of data customers relative to voice customers.
In general, margins on data services provided to our customers
are substantially higher than legacy voice margins.

Of the carrier services revenue in the first quarter of 2004,
excluding non-cash IRU revenue, 87 percent was attributable to
voice services, and 13 percent was attributable to data
services, unchanged from the same period in 2003. Despite
pricing pressure in the industry, carrier voice revenue grew
four percent, driven by international long distance voice.
Excluding non-cash IRU revenue, carrier data revenue would have
shown approximately a 7 percent year-over-year increase.

Global Marine revenue declined to $26 million from $45 million
for the first quarter of 2003, principally as a result of the
expiration of a significant customer maintenance contract at the
beginning of 2004.

Excluding Global Marine, the sale of which was announced on
August 16, 2004, and the impact of the write down of non-cash
deferred IRU revenues, Global Crossing's revenues declined
approximately 1 percent versus the prior year, driven primarily
by the decline in sales to financial markets customers and small
businesses.

Cost Management

Cost of access declined to $479 million (representing 72 percent
of telecom services revenue) for the first quarter of 2004,
compared to $504 million (representing 73 percent of telecom
services revenue) for the same period of 2003, as a result of
initiatives to lower access unit prices. These initiatives
included network optimization, use of strategic and competitive
access providers and increased end office versus tandem switch
termination. Consolidated third party maintenance costs for the
first quarter were $27 million, compared to $29 million in the
first quarter of 2003, with the decrease driven by continued
network vendor optimization.

Consolidated operating expenses for the first quarter of 2004
were $236 million, compared to $240 million for the same period
in 2003. Telecom services operating expenses were $195 million,
compared to $188 million in the same period of 2003. Telecom
operating expenses increased in part as a result of non-cash
stock compensation expense of $5 million related to stock-based
incentives issued since Global Crossing's emergence from
bankruptcy on December 9, 2003. In addition, incentive
compensation of $2 million and restructuring expenses of $2
million were recorded as operating expenses in 2004, whereas the
comparable amounts for 2003 were included in reorganization
costs (as opposed to operating expenses) while in bankruptcy.
Excluding the impact of expenses related to stock compensation,
incentive compensation and restructuring, telecom services
operating expenses declined $2 million in the first quarter of
2004 as compared to the same period in 2003.

Increases in real estate, operations, and sales and marketing
expenses, as well as expenses related to compliance with Section
404 of Sarbanes Oxley, were more than offset by lower bad debt
expense, in part, the result of strong collections and risk
management efforts, and lower general and administrative
expenses.

Global Marine's operating expenses declined to $41 million from
$52 million for the first quarter of 2003. This decline was
primarily attributed to reduced installation projects and
maintenance contract requirements resulting in lower third party
project costs.

Earnings

For the first quarter of 2004, Consolidated EBITDA (as defined)
was a loss of $52 million, compared to a loss of $38 million for
the same period in 2003. The increase in the consolidated EBITDA
loss was substantially impacted by a $9 million increase in
Global Marine EBITDA (as defined) loss from $2 million in the
first quarter of 2003 to $11 million for the same period in
2004, principally due to expiration of a significant maintenance
contract.

Telecom EBITDA (as defined) loss increased from $36 million in
the first quarter of 2003 to $41 million for the same period in
2004. Excluding the impact of the $19 million reduction in
deferred revenues from prior period IRU sales and the $9 million
of 2004 stock compensation, incentive compensation and
restructuring expenses discussed above, Telecom EBITDA loss
narrowed significantly in 2004. This improvement was driven by
gross margin increases as a result of cost of access initiatives
and improvements in bad debt expense.

Global Crossing's consolidated loss applicable to common
shareholders in the first quarter of 2004 was $113 million,
versus a loss of $97 million in first quarter of 2003.

Pursuant to the SEC's Regulation G, a reconciliation of the
company's EBITDA measures to the reported net income for the
relevant periods is included in the attached financial
statements. Also attached are the company's definitions for
Consolidated EBITDA, Telecom EBITDA and Global Marine EBITDA.

Capital Expenditures

For the first quarter of 2004, cash paid for capital
expenditures and capital leases was approximately $33 million,
compared to $49 million for the first quarter of 2003, a 33
percent improvement year over year.

With its core network substantially completed in mid-2001,
Global Crossing has continued to reduce its capital expenditure
requirements, with more than two thirds of such expenditures
being made for success-based initiatives, particularly
customers' growing network demands. Capital expenditures also
included investments in our Global IP infrastructure, including
edge equipment and the conversion of switching infrastructure
from time division multiplexing (TDM) technology to voice over
Internet protocol (VoIP) technology, which now carries
approximately 40 percent of the company's voice traffic.

Revenue

For the second quarter of 2004, total revenue was $648 million,
compared to $744 million for the same period in 2003. Telecom
services revenue for the second quarter of 2004 was $626
million, compared to $677 million for the second quarter of
2003, excluding the $21 million reduction of non-cash IRU
revenue in 2003, or $698 million as reported. In addition to the
IRU revenue change, the year-over-year decrease in telecom
revenue was primarily attributable to the continued competitive
pricing environment, partially offset by an increase in sales
volume.

Additionally, the previously announced initiative by Global
Crossing to address volatile and low margin services by
tightening payment terms, particularly in the international long
distance reseller market, reduced revenue but improved working
capital and cash performance. Overall, in the second quarter of
2004, international long distance revenue declined approximately
$20 million from the first quarter of 2004, driven in part by
the initiation of this program late in the first quarter.
Lastly, sales to legacy trader voice customers in the financial
markets, as well as the small-business sector, continued to
decline in the second quarter.

Telecom services revenue declined by $38 million or 6 percent in
the second quarter of 2004, as compared to the first quarter of
2004, primarily driven by the company's efforts to tighten
payment terms in the international long distance reseller
market. In addition, the carrier voice business declined due to
continued competitive pressures in certain domestic voice
markets.

Of the total telecom services revenue reported for the second
quarter of 2004, enterprise services accounted for 40 percent,
as compared to 38 percent for the same period of 2003. Carrier
services were 59 percent of total telecom services revenue,
compared to 61 percent in the second quarter of 2003, and
consumer services remained at 1 percent of total telecom
revenue.

Voice services were 52 percent of enterprise services revenue in
the second quarter of 2004, compared to 53 percent for the same
period in 2003. Data services comprised 48 percent of enterprise
services in the second quarter, compared to 47 percent in the
second quarter of 2003. Although data revenue is down year-over-
year, primarily due to declining revenue in non-core customer
markets like small business, other areas of the enterprise data
business showed signs of growth. Similar to first quarter, the
company experienced increased volume and revenue in managed
services, IP access and sales of IP VPNs to strategic customers
in the government, and research and educational networks
industries.

Of the carrier services revenue in the second quarter of 2004,
excluding non-cash IRU revenue, 87 percent was attributable to
voice services, and 13 percent was attributable to data
services, unchanged from the same period in 2003. Carrier
service revenues decreased in the second quarter of 2004 as
compared with the second quarter of 2003 (excluding IRUs) as a
result of continued competitiveness in the domestic North
American wireline voice business. This was partially offset by
increases in sales volumes in the wireless sector, voice
business outside of the U.S., and data services globally.

Global Marine revenue declined to $22 million from $46 million
for the second quarter of 2003, primarily due to the expiration
of a significant maintenance contract at the beginning of 2004.
As a result of its sale, Global Marine will be recorded as a
discontinued operation commencing in the third quarter of 2004.

Excluding Global Marine Services and the impact of fresh start
accounting on non-cash revenues, revenues declined 8 percent in
the second quarter of 2004 compared to the same period in 2003.

Cost Management

For the second quarter of 2004, cost of access declined to $450
million (representing 72 percent of telecom services revenue),
compared to $499 million (representing 71 percent of telecom
services revenue) for the same period in 2003. Although overall
sales volumes increased, cost of access charges decreased as a
result of access reduction initiatives, including network
optimization, better dispute resolution, use of strategic and
competitive access providers and increased end office versus
tandem switch termination. Consolidated third party maintenance
costs for the second quarter were $24 million, compared to $28
million in the second quarter of 2003, with the decrease driven
by continued vendor maintenance optimization.

Consolidated operating expenses for the second quarter of 2004
were $225 million, compared to $230 million for the same period
in 2003. Telecom services operating expenses were $189 million
in both periods. Excluding the impact of non-cash stock
compensation expense of $8 million related to stock-based
incentives since the company's emergence from bankruptcy on
December 9, 2003 and incentive compensation of $2 million, for
which the comparable amounts for 2003 were included in
reorganization costs (as opposed to operating expenses) for that
year, and excluding the impact of $2 million of professional
services expenses relating to our cost of access restatement and
the one-time benefit from a UK real estate tax refund of $11
million, telecom services operating expenses declined slightly
in the second quarter of 2004, as compared to the same period in
2003.

Global Marine's operating expenses were $36 million, compared to
$41 million for the second quarter of 2003. This decline was
primarily attributed to reduced installation projects and
maintenance contract requirements resulting in lower third party
project costs.

Earnings

For the second quarter of 2004, Consolidated EBITDA was a loss
of $51 million, compared to a loss of $13 million for the same
period in 2003. The increase in Consolidated EBITDA loss
reflected a $20 million reduction in Global Marine EBITDA from a
$10 million profit in the second quarter of 2003 to a $10
million loss for the same period in 2004, primarily due to the
expiration of a significant maintenance contract.

Telecom EBITDA loss increased from $23 million in the second
quarter of 2003 to $41 million for the same period in 2004.
Excluding the impact of the $21 million reduction in deferred
revenues from prior period IRU sales, the $10 million of 2004
stock and incentive compensation discussed above, the $2 million
of professional services expenses relating to our cost of access
restatement and the one-time benefit from the $11 million UK
real estate tax refund, Telecom EBITDA improved modestly versus
the prior year. This improvement resulted from cost management
efforts and was partially offset by the reduction in revenue.

Consolidated loss applicable to common shareholders in the
second quarter of 2004 was $112 million, versus a loss of $27
million in second quarter of 2003. In addition to the change in
Consolidated EBITDA noted above, the increase in the net loss in
the second quarter of 2004 compared to the same period in 2003
resulted primarily from the absence of prior year foreign
exchange gains and from a non-cash tax expense in 2004 resulting
from fresh start accounting, as well as somewhat higher
depreciation and interest expense.

Pursuant to the SEC's Regulation G, a reconciliation of the
company's EBITDA measures to the reported net income for the
relevant periods is included in the attached financial
statements.

Capital Expenditures

For the second quarter of 2004, cash capital expenditures and
capital lease obligations were approximately $28 million,
compared to $46 million for the second quarter of 2003. Capital
expenditures for the second quarter of 2004 decreased for the
same reasons as outlined for the first quarter of 2004.

Cash and Debt Position

As of June 30, 2004, unrestricted cash and cash equivalents were
approximately $139 million. Of this amount, $53 million was
associated with Global Marine. As a result of the previously
announced sale of Global Marine to Bridgehouse Marine Ltd., cash
on hand at Global Marine transferred to new ownership with the
sale of the business. Global Crossing's total debt, excluding
capital leases, as of June 30, 2004 was $240 million, including
$200 million in senior secured notes and $40 million from the
first drawdown on a bridge loan facility provided by ST
Telemedia.

Financing and Liquidity Outlook

Global Crossing entered into a $100 million bridge loan facility
(the "Bridge Loan Facility") with a subsidiary of ST Telemedia
in May 2004. Under this agreement, the company has fully drawn
down the $100 million facility to date. The company drew down
the funds in three installments: $40 million on June 1, $40
million on August 2, and $20 million on October 1. The Bridge
Loan Facility is scheduled to mature on December 31, 2004.

The company expects it will need an additional $40 million of
financing to fund its anticipated liquidity requirements through
the end of 2004. The company will also need to refinance the
Bridge Loan Facility at its maturity on December 31, 2004.
Moreover, based on the company's current projections, the
company will need to raise substantial additional financing to
meet its anticipated liquidity needs beyond 2004. The additional
funding is required due to access costs higher than estimated at
the time initial liquidity guidance was provided, professional
fees related to the cost of access reviews and other changes to
the company's 2004 business outlook.

Global Crossing is currently seeking to arrange financing to
provide it with the additional liquidity needed through the end
of 2004 and beyond, and to refinance the Bridge Loan Facility.
Such financing may include a secured debt financing by Global
Crossing (UK) Telecommunications Ltd. (GCUK) and a working
capital facility secured by certain accounts receivable.

A subsidiary of ST Telemedia has provided a commitment, subject
to certain conditions, documentation and completion of any
necessary collateral filings, to increase the availability under
the Bridge Loan Facility by $25 million, to $125 million. This
additional $25 million is intended to be advanced in early
November to meet the company's anticipated liquidity needs
through November, by which time the company believes that the
secured debt financing by GCUK can be completed with currently
anticipated proceeds of $300 million or more. This financing,
together with a working capital facility, is intended to meet
the company's long-term funding requirements. If the GCUK debt
financing is not completed in November 2004, the company would
require additional funding. ST Telemedia has indicated to Global
Crossing its non-binding intention to provide financial support,
in certain circumstances, as described in the company's filings.

The company has entered into an agreement with STT

Communications, STT Crossing and STT Hungary that provides for a
refinancing of the Bridge Loan Facility and the 11 percent
Senior Secured Notes held by these affiliates of ST Telemedia
simultaneously with the new secured debt financing by GCUK. The
agreement also permits the company to incur debt under a working
capital facility. Under the agreement, the following would occur
simultaneously with the closing of a secured debt financing by
GCUK:

1) the security interests securing the Senior Secured Notes and
the Bridge Loan Facility would be released;

2) $50 million (plus any amount borrowed under the additional
$25 million Bridge Loan Facility commitment) of the Senior
Secured Notes would be repaid; and

3) the Bridge Loan Facility and the remaining Senior Secured
Notes would be refinanced by $250 million principal amount of
4.7 percent payable-in-kind secured debt instruments that would
be mandatorily convertible into common equity of Global Crossing
Ltd. after four years, or converted earlier at ST Telemedia's
option, into approximately 16.2 million shares of common stock
of the company (assuming conversion after four years), subject
to certain adjustments. The new secured debt instruments would
be secured in a manner substantially similar to the Senior
Secured Notes, except that they would not have liens on assets
of GCUK. The agreement is subject to completion of definitive
documentation satisfactory to the parties and a number of other
material conditions.

Business Restructuring

Given the current environment in telecommunications, the company
has continued to review and refocus its business plan for 2005
and beyond, investing in areas that offer optimum future growth
such as global IP enterprise offers, new carrier data offerings,
and additional means of distributing the robust suite of IP
capabilities to all end users. At the same time, the company is
reevaluating unprofitable and non-strategic areas of the
business.

"We are focusing our efforts on areas of our business that offer
long-term growth and viability, and those in which Global
Crossing will maintain a lasting differentiated position,"
explained Mr. Legere. "As we move forward, we will invest
selectively in these strategic products and services, while
devoting fewer resources to, or exiting, unprofitable parts of
our business. Through these efforts, we have a great opportunity
to enhance our global IP service offerings and deliver even
better service to customers, while providing significant ongoing
value to shareholders."

As a result of the business evaluation, the company will be
restructured to focus on areas that capitalize on its IP network
and capabilities, while expanding its distribution capabilities
through system integrators and other indirect channels. The
company will de-emphasize or divest its operations in consumer,
small business, trader voice, calling card and other lower
margin services. As a result of this effort, the company will
incur restructuring costs estimated at a range of $12 to $14
million for severance associated with the reduction of
approximately 600 full-time employees (15 percent of current
workforce) and real estate consolidation costs estimated at $4
to $5 million. The headcount reductions and real estate
consolidation will achieve a combined savings of approximately
$41 to $47 million per year. Further savings are planned through
the outsourcing of certain business processes. In addition,
specific vendor contracts and the associated liabilities
associated with streamlining of the business will be evaluated.

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

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

CONTACTS: Press Contacts
          Ms. Becky Yeamans
          Phone: + 1 973-937-0155
          e-mail: PR@globalcrossing.com

          Ms. Tisha Kresler
          Phone: + 1 917-270-0079
          e-mail: PR@globalcrossing.com

          Ms. Kendra Langlie
          Phone: + 1 305-808-5912
          e-mail: LatAmPR@globalcrossing.com

          Mr. Mish Desmidt
          Europe
          Phone: + 44 (0) 7771-668438
          e-mail: EuropePR@globalcrossing.com

          Analysts/Investors Contact

          Ms. Laurinda Pang
          Phone: +1 800-836-0342
          E-mail: glbc@globalcrossing.com

          Web site: www.globalcrossing.com


LINES OVERSEAS: Faces Another Lawsuit
-------------------------------------
Bermuda-based Lines Overseas Management (LOM) has been hit with
another legal blow, The Royal Gazette reports, citing David
Marchant, editor of Offshore Alert.

Mr. Marchant has been following investigations of LOM being
conducted by the US Securities Exchange Commission and by
Deloitte & Touche on behalf of the Bermuda Monetary Authority.

Marchant revealed that on September 27, Computer Clearing
Services Inc. (CCS) filed a suit in the Los Angeles Superior
Court in California naming LOM along with CIBC Mellon Global
Securities Services of Toronto, Canada; EquiTrade Securities
Corporation, a broker-dealer of Lake Forest, California; Kim S.
Carroll of Orange County California; Kathleen Sylvia Roebuck and
Stephen Roebuck, all of EquiTrade as defendants. The suit seeks
damages of $3 million, alleging fraud, breach of contract and
securities law violations.

CCS' complaint stems from October 2002 when CCS began providing
clearing services to EquiTrade and EquiTrade's customers,
including CIBC and LOM, for whom CCS opened an account titled
"CIBC MELLON GLOBAL SEC SVCS F/A/O Lines Overseas MNGMT".

Marchant reports that in its complaint, CCS alleges it sustained
damages in excess of $3,000,000 after the defendants
"immediately engaged in a stock manipulation scheme to
artificially inflate the price of five securities Interactive
Lighting [ILGT], Oasis Entertainment [OEFO] GYK Ventures Inc
{GYKV], KNW Networks [KNWK] and New Parts.com Inc. [NPCO]."

CONTACT:  (Bermuda)
          LOM Group
          The LOM Building
          27 Reid Street
          Hamilton, HM 11
          Bermuda
          Telephone: (441) 292-5000
          Facsimile: (441) 295-3343



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

ACESITA: Proceeds With Reverse Split of Shares
----------------------------------------------
The Extraordinary General Meeting held on October 5, 2004
approved the reverse split of shares in the stock capital of
Acesita S.A.

1. The purpose of the reverse split is:

- to adjust the unit value of shares to international standards,
with the purpose of facilitating the interpretation thereof and
the way of trading the shares, providing the stock with greater
liquidity;

- to standardize the way the price of ADRs (American Depositary
Receipts) traded in the U.S is quoted;

- to reduce the operating costs and increase the efficiency of
the registration and control systems.

2. The Reverse Split Ratio

There will be a reverse split in the proportion of 10,000 (ten
thousand) shares to 1 (one), in compliance with the types of
shares, and as of November 16, 2004, the shares will be traded
only for the unit price.

3. Holders of American Depositary Receipt (ADRs)

At the same time as the transaction on the Brazilian market, the
ADRs will be traded in the proportion of 1 (one) share for every
two 2 (two) ADRs, in compliance with the types of shares.

4. Adjustment of the Position

4.1. Up to November 8, 2004, shareholders will be able to, at
their own discretion, adjust their relevant share positions, by
type, either through private trading or trading on a stock
exchange.

4.2. In addition, the shareholder Usinor Empreendimentos e
Participacoes Ltda. Will make itself available to sell the
number of shares required to make up 10,000 shares of each type,
to shareholders who wish to do so, regardless of the number of
shares held before the reverse split. This intention must be
expressed in writing and sent to the Company's head office by
fax no. +55 31 3235 4247 or e-mail ri@acesita.com.br by October
22, 2004, containing the following information:

a. The shareholder's full name;
b. The CPF/CNPJ tax payer number;
c. Home address;
d. Bank information;
e. Telephone number and, if the shareholder has one:
f. e-mail address.

The selling price of shares is set at R$3.26 (three Brazilian
reais and twenty-six cents of a real) for the common share (ON)
type and at R$3.29 (three Brazilian reais and twenty-nine cents
of a real) for the preferred share (PN) type, per lot of 1,000
shares. These amounts correspond to the average trading price in
the period from September 9, 2004 to September 15, 2004.

Shareholders who purchase Usinor shares, in compliance with the
provisions of item 4.2, will not be required to pay any costs
directly relating to the transaction.

Shareholders must deposit the amount corresponding to the number
of shares necessary to make up 1 (one) new share, in compliance
with the types, in the name of USINOR EMPREENDIMENTOS E
PARTICIPACOES LTDA, at BANCO ABN AMRO REAL S/A (356), branch
0689, current account no. 7706967-9.

For the purchase of shares to be deemed effective by the
shareholders, in addition to the credit of the relevant amount,
they will have to send, by November 5, 2004, by Fax (+55 31 3235
4247), a copy of the deposit voucher.

This is an essential condition for the transfer of the shares so
as to regularize their shareholding.

5. Auction

Once the term for the adjustment of holdings is over, the shares
referring to the sum of the remaining fractions will be sold on
the Sao Paulo Stock Exchange, on a date to be specified by the
Company.

Shareholders who have already registered their bank information
will be automatically credited with the amount corresponding to
the sale of shares in proportion to their share fraction, within
three business days as from the holding of the auction. For
those who have not informed their bank account, the amount
corresponding to their fraction will remain available to them at
the Company.

6. Documents available to shareholders

The proposals of the Board of Directors are available to
interested parties at the Company's Investor Relations
Department, located at Av. Joao Pinheiro, 580 - Centro,
Belo Horizonte, Minas Gerais; at the Sao Paulo Stock Exchange
(Bovespa), at Rua XV de Novembro, 275 - Centro, Sao Paulo, SP;
and they may also be viewed at the Company's website,
www.acesita.com.br - Investor Relations Section.

CONTACT: Acesita S.A.
         Belo Horizonte
         Brazil
         Phones: 0800 31 1801 (toll free)
                 (5531) 3235-4270 / 4235 / 4299 / 4241.
         Fax: (5531) 3235 4247
         E-mail: ri@acesita.com.br


ARACRUZ CELULOSE: Posts $298.8M Net Revenue in 3QO4
---------------------------------------------------
Aracruz Celulose posted these 3Q04 earnings highlights:

- Record sales volume in the year, 16% growth compared to the
same period of 2003.

- Net revenue of US$298.8 million, 4% higher than in the same
period of last year and 3% higher than in the previous quarter.

- Net income in the quarter was US$29.8 million, or US$0.29 per
ADR in the quarter, compared to US$59.3 million in the same
period of last year.

- The adjusted EBITDA, of US$151.3 million, was 2% higher than
in the same period of last year.

- Guaiba Unit: US$50 million investment approved for
modernization, increasing capacity and land purchases.

- Cash investments were 2.3 times the amount of the next 12-
month debt amortization.

Global Pulp Market Update

As the world economy continued to grow in a reasonable fashion
through the third quarter, despite escalating oil prices, the
paper market has shown favorable signs of growth. A normal
summer slowdown was seen in Europe, while in North America there
was an increase in paper consumption. Meanwhile, Asia maintained
a regular pattern of paper production.

In general, throughout the quarter, paper producers maintained
low pulp inventories, and in some cases (China) at very low
levels. For example, the European paper producers ended August
with 30 days of pulp supply, whereas at the same point in 2003,
which up to now has proven to be a slower year than 2004, they
held an average of 33 days supply.

On the other hand, delays in maintenance downtime in some
markets (the Norscan producers), due to market conditions,
coupled with higher operating rates by some hardwood producers,
have also led to an increase in days of supply in the hands of
pulp producers, to the upper limit of the range, at 41 days.
This clearly indicates an inventory swing between buyers and
producers.

Chinese purchases, whose decline had become a concern to the
market, bottomed out at the end of the second quarter. Figures
throughout the third quarter have shown that the Chinese are
back in the market to rebuild their depleted inventories, since
pulp prices have now reached the cash cost of high cost
producers and they have expectation of a strong seasonal demand.

Despite credit restrictions adopted by the Chinese government,
the country is set to make investments in paper machines that
should consume extra market pulp through 2005.

With a positive economic scenario, which has a direct impact in
paper production, and limited additional capacity, we are fairly
optimistic in regard to market development in the coming months.

Production and sales

Pulp production totaled 583,000 tons in the third quarter of
2004, compared to 634,000 tons in the same period of last year.
During the third quarter there was maintenance downtime at the
Guaiba Unit of 10 days and at the fiberline C, in the Barra do
Riacho Unit, of 7 days.

At the Guaiba unit, paper production in the quarter totaled
12,000 tons, consuming approximately 10,000 tons of pulp. Paper
inventories were at 1,000 tons at the end of September' 04 and
paper sales in the third quarter of 2004 totaled 12,000 tons.

Pulp sales reached 631,000 tons in the third quarter, compared
to 610,000 tons in the same period last year. At the end of
September, inventories attained 334,000 tons, or 48 days of
production, compared to 392,000 tons, or 57 days, at the end of
June 2004.

Income Statement - 3Q04

The average list pulp price in the third quarter was $535/ton,
compared to $503/ton in the same period of last year, and lower
than the average list price in the second quarter of 2004, of
$563/ton.

Total net operating revenue totaled $298.8 million, $12.6
million higher than in the same period of 2003.

Net paper operating revenue totaled $9.6 million in the third
uarter, $0.4 million higher than in the same period of 2003.

Net sawn wood operating revenue totaled $2.5 million, $0.7
million higher than in the same period of 2003.

Net pulp operating revenue during the third quarter of 2004
amounted to $286.7 million, compared to $275.2 million in the
same period of last year. Revenue increased as a result of
lightly higher sales volume and net prices.

The total cost of sales was $178.9 in the third quarter of 2004,
ompared to $172.9 million in the same period of last year.
The pulp production cost in the third quarter was $235/ton,
compared to $228/ton in the same period of last year. Cash
production cost (net of depreciation and depletion) in the third
quarter was $152/ton, compared to $151/ton in the same period of
ast year. See table below:

Cash Production Cost                             US$ per ton

3Q03                                                    151
Lower wood cost                                         (9)
Higher personnel, services, plant shutdown
(including sustainment projects) and
engineering costs                                         5
Reduced fixed cost dilution                               4
Other                                                     1
3Q04                                                    152

The average exchange rate in the third quarter was approximately
R$2.9804 per US$1.00, versus R$2.9311 per US$1.00 in the same
period of last year, representing a 1.7% depreciation of the
Real against the US dollar. Approximately 60% of the Company's
cash production cost is correlated to the local currency.

The cash production cost in the third quarter of 2004 was
$152/ton, compared to $146/ton in the second quarter of 2004,
mainly as a result of the $3/ton impact of reduced fixed cost
dilution owing to the lower production volume and $2/ton from
the real's appreciation against the dollar during the third
quarter.

Sales and distribution expenses were $14.1 million, $3.4 million
higher than in the same period of last year, mainly due to
increased terminal expenses.

Administrative expenses were $7.5 million, $0.6 million higher
than in the same period of 2003, mainly due to $0.8 million of
exceptional expenses.

Other operating expenses amounted to $6.9 million, $1.1 million
lower than in the same period of last year, mainly due to a
lower provision for fines relating to tax contingencies, of $1.2
million.

Financial and Currency re-measurement results in the quarter
were $13.9 million, $5,7 million higher than in the same period
of last year, mainly due to a non-recurrent gain in the third
quarter of last year, of $8.3 million (see chart below).

"Interest on financing" was $24.1 million, $1.5 million higher
than in the same period of last year, due to higher average
gross debt in the third quarter 2004.

(US$ million)                            3Q04       3Q03

Financial Expenses                       31.5       24.0
Interest on financing                    24.1       22.6
Taxes (PIS/COFINS and CPMF)               4.1        4.6
Interest on fiscal contingency provisions 2.8        4.7
US treasury bond rate lock
(Aug.2003 - $400 million debt issuance)    -        (8.3)
Other                                     0.5        0.4
Financial Income                        (17.4)     (14.7)
Currency re-measurement                  (0.2)      (1.1)
Total                                    13.9        8.2

During the quarter, the local currency appreciated 8.0% against
the US dollar, compared to a depreciation of 1.8% in the same
period of last year. The closing exchange rate on September 30,
2004 was R$2.8586 per US dollar.

The equity equivalence result for Veracel was a loss of $6.5
million in the third quarter of 2004, resulting mainly from a
non-cash impact on Veracel's balance sheet. The company has a
50% controlling stake in Veracel (see "Additional information"
section for an update on the project development and financial
information).

Income tax and social contribution in the third quarter of 2004
amounted to a provision of $41.2 million, against $20.3 million
in the same period of last year. Tax charges, calculated based
on the parent company (non-consolidated) Brazilian GAAP results,
are usually influenced by exchange rate variations and in the
third quarter 2004 they had a greater positive impact on the
Brazilian GAAP results, when compared to the same period of last
year. During the quarter, there was no cash impact resulting
from tax charges.

Debt and Cash Structure

Gross debt was $1,392.6 million at the end of September 2004,
$2.6 million lower than at the end of June 2004.

(US$ million)                     09/30/04       06/30/04

SHORT-TERM DEBT                       193.7         167.1
Current Portion of Long-Term Debt     181.3         160.0
Short Term Debt Instruments             3.5           -
Accrued financial charge                8.9           7.1
LONG-TERM DEBT                      1,198.9       1,228.1
TOTAL DEBT                          1,392.6       1,395.2

Debt in local currency corresponds entirely to long-term BNDES
(Brazilian Development Bank) loans. The debt maturity as at
September 30, 2004 was as follows:

(US$ million)             Local     Foreign    Total   %
                        Currency   Currency    Debt
2004                      10.8       85.1       95.9   7%
2005                      43.2       98.0      141.2  10%
2006                      39.9      243.3      283.2  20%
2007                      39.9      291.6      331.5  24%
2008                      37.9      190.3      228.2  16%
2009                      18.9      108.1      127.0   9%
2010 and after              -       185.6      185.6  14%
Total                    190.6    1,202.0    1,392.6 100%

The current short-term debt represents 14% of the total debt,
compared to 34% in the same period of last year, as a result of
management's focus on improving the debt maturity profile. The
average cost of the long-term debt is 6.0% per annum before tax,
according to our estimates.

Cash investments, at the end of the quarter, totaled $429.8
million, of which $371.4 million was invested in local currency
instruments and $58.4 million was invested abroad, mostly in US
dollar time deposits. The amount of cash investments is targeted
to equal at least twelve months of future debt amortization. In
September 2004, the figure was equivalent to 2.3 times the next
12 months of debt amortization.

Net debt (gross debt less cash holdings) was $962.8 million at
the end of the quarter, $57.1 million lower than at the end of
the second quarter of 2004, mainly due to positive operating
cash generation, partially offset by $44.0 million for Veracel's
capital increase and $31.5 million of capital expenditures. At
the end of the quarter, the net debt to total capital ratio was
34%.

EBITDA was $145.0 million in the third quarter of 2004, compared
to $139.0 million in the same period of 2003, mainly as a result
of slightly higher sales volume and net pulp prices. EBITDA in
the last twelve months was $541.1 million. The EBITDA margin was
49% in the quarter, equivalent to the same period of last year.

Third quarter 2004 adjusted EBITDA, before other non-cash
charges, totaled $151.3 million, compared to $147.7 million in
the same period of last year, resulting in an adjusted margin of
51%. Adjusted EBITDA in the last twelve months was $581.4
million.

Stock Performance

From October 10, 2003 to October 01, 2004, Aracruz's ADR price
increased 21%, from $28.52 to $34.50. In the same period, the
Dow Jones Industrial Average index increased 5,4 % and the S&P
Paper and Forest index increased 17%.

Results According to Brazilian GAAP

The local currency consolidated result, according to Brazilian
GAAP - Corporate Law, was a net income of R$368.2 million for
the quarter. Aracruz has also publicly released in Brazil the
unconsolidated financial results, which under Brazilian Law
serve as the basis for the calculation of minimum dividends and
income taxes. In the third quarter of 2004, Aracruz Celulose
S.A. reported an unconsolidated net income of R$354.8 million
(R$260.9 million, excluding equity equivalence results).

Additional Information
1. Veracel - update

The overall progress of project is going according to plan and
the start-up of the mill is scheduled for mid-2005.
The company expects Veracel to be the world's lowest cash cost
producer of BEKP, mainly due to its state-of-the-art equipment,
short average radius of forestry operations (50 km), high forest
yield and economies of scale. It will have a nominal capacity of
900,000 tones per year of eucalyptus pulp and Aracruz will take
50% of the total output.

Veracel is the result of a partnership between Aracruz(50%) and
Stora Enso(50%).

2. Shareholders' remuneration - Interest on Shareholders' Equity
As disclosed to the market on July 16, 2004, the Board of
Directors of ARACRUZ has approved the declaration and payment of
Interest on Shareholders' Equity, in the amounts and in line
with the payment schedule to be set by the company's Executive
Board.

Interest on Shareholders' Equity may be attributed to the
minimum compulsory dividend relating to the fiscal year in which
such interest is paid/declared, and is limited to: (a) an amount
equivalent to 50% of the greater of (i) the profit of the
relevant year, or (ii) accumulated profits plus profit reserves;
(b) the amount of the minimum compulsory dividend; and (c) the
amount of the capital reserves, comprising (i) premium reserve,
(ii) the product of the sale of founders' shares and
subscription bonuses, (iii) premiums received on the issue of
debentures, and (iv) donations and subventions for investment.

3. Earnings per ADR X Cash Earnings per ADR - In addition to the
traditional income statement items that do not represent
payments - such as depreciation, amortization and depletion -
Aracruz's statements have also been affected by other items that
often have no impact on the cash balance, thereby distorting the
company's results.

Two examples of the above are "foreign-exchange gains or losses"
and "tax provisions". Though they frequently have no impact on
the company's cash position, these items can be affected by
exchange rate fluctuations and, as a result, distort the
financial results.

The comparison below between the company's Earnings per ADR and
Cash Earnings per ADR (net profit or loss for the period,
adjusted for depreciation, depletion, amortization, foreign-
exchange gains or losses and other provisions that have had no
effects on the cash balance) below shows these differences

    (US$)          Cash Earnings        Earnings
                     Per ADR            Per ADR

    1Q 2003            1.30               0.57
    2Q 2003            0.69               0.02
    3Q 2003            0.95               0.58
    4Q 2003            1.21               0.27
    FY 2003            4.14               1.44

    1Q 2004            1.01               0.46
    2Q 2004            1.30               0.86
    3Q 2004            1.29               0.29
    YTD 2004           3.60               1.60

4. Guaiba Unit: US$50 million investment approved for
modernization, increasing capacity and land purchases.

On September 15, 2004, it was announced that Aracruz will invest
some US$34 million to modernize its pulp mill at the GuaĦba Unit
(Rio Grande do Sul) and another US$16 million in
forestryimprovements and expansion in the state, starting in
October 2004 and expected to be concluded by March 2006. The
improvements are designed to maintain environmental gains, as
well as to increase the installed capacity from the current
400,000 tons to 430,000 tons of bleached eucalyptus pulp per
year.

The investment priority will be to improve the mill's bleaching,
drying and causticizing areas, and a reduction of approximately
5%, or US$7-8/ton, is expected in the GuaĦba Unit's cash
production cost.

On the same date, in order to increase its overall forestry
base, the company also launched the Aracruz Forestry Partners
Program - in partnership with the savings bank Caixa-RS - in the
state. The objective of this program, during its first,
experimental phase, is to increase eucalyptus plantations
pertaining to individual farmers in the southern half of the
state of Rio Grande do Sul by 5,000 hectares.

Aracruz Celulose S.A., with operations in the Brazilian states
of EspĦrito Santo, Bahia, Minas Gerais andRio Grande do Sul, is
the world's largest producer of bleached eucalyptus Kraft pulp.
All of the high-quality hardwood pulp and lumber supplied by the
company is produced exclusively from plantedeucalyptus forests.
The Aracruz pulp is used to manufacture a wide range of consumer
and value-addedproducts, including premium tissue and top
quality printing and specialty papers. The lumber, produced ina
high-tech sawmill located in the extreme-south of the State of
Bahia, is sold to the furniture and interiordesign industries in
Brazil and abroad, under the brand name Lyptus. Aracruz is
listed on the Sao PauloStock Exchange (BOVESPA), on the Latin
America Securities Market (Latibex), in Madrid - Spain, and
onthe New York Stock Exchange (NYSE) under the ADR level III
program (ticker symbol ARA). Each ADR represents 10 underlying
class B preferred shares.

To view financial statements:
http://bankrupt.com/misc/Aracruz.pdf

CONTACT: Aracruz Celulose S.A.
         Mr. Denys Ferrez
         Phone: (21) 3820-8131
         e-mail: invest@aracruz.com.br

         Citigate
         Ms. Lucia Domville
         Phone: (1-201) 499-3548
         e-mail: lucia.domville@citigate.com

         Web Site: http://www.aracruz.com.br/


CFLCL: Revenue Jumps 29% Year-on-Year
-------------------------------------
The consolidated gross operating revenue posted by Cataguazes-
Leopoldina surpassed R$1,042 million during the first eight
months of 2004, which represents an increase of 29% as compared
to the same period in 2003.

Consolidated sales amassed 4,327 GWh, rising by 1.5%. However,
considering only the retail market, sales reveal a fall of 2.6%
(3.9% in the area of holding company CFLCL) for the same period,
due to the loss of free consumers, which are being billed for
usage of the distribution system, considerably cushioning the
financial losses resulting from lower energy sales.

Also, construction work on the Ivan Botelho III SHP (the new
name of the Triunfo SHP), which will have an annual production
capacity of 120 GWh (24.4 MW), is going ahead at full steam,
with the first generator projected to come into operation in
November this year and the second in December.

The concrete construction work on the powerhouse is complete,
and the electro-mechanic assembly of the generating units has
begun. Eighty percent of the execution work on the earth dam and
induced channel has been performed, as is the case with the
concrete construction of the spillway and water caption area,
and the assembly of the locks, which is taking place
simultaneously. The electrical assembly of the substation is
also now underway.

This is the final SHP to be completed of the 5 SHPs comprising
the Sistema Cataguazes-Leopoldina's project to expand generation
of its own energy.

Construction work began on the 5 SHPs simultaneously in mid-
002. The Sistema Cataguazes-Leopoldina's electrical energy
generation plant is currently comprised of 19 SHPs (total
installed capacity of 105 MW and annual production of 525 GWh)
and 50% of a thermoelectric power station (the 87 MW Juiz de
Fora Thermoelectric power station, with annual production
capacity of 650 GWh).

Meanwhile, as was the case in 2003, risk-rating agency Standard
& Poor's once again awarded the corporate credit rating "brBBB"
to two subsidiaries of the Sistema Cataguazes- Leopoldina in
September: Companhia Forca e Luz Cataguazes-Leopoldina (CFLCL)
and Empresa Energetica de Sergipe S.A (Energipe). The same
rating was also awarded to the debentures issued by CFLCL worth
R$130 million.

CONTACT: Sistema Cataguazes

         In Cataguases:
         Phone: +55 32 3429-6000
         Fax: +55 32 3429-6317 / 3429-6480

         In Rio de Janeiro:
         Phone: +55 21 2122-6900
         Fax: (021) 2122-6931 / 2122-6980
         e-mail: stockinfo@cataguazes.com.br
         Web Site: http://www.cataguazes.com.br


TCP: Wraps-Up Public Tender Offer for TCO Shares
------------------------------------------------
Telesp Celular Participacoes S.A. - "TCP" or the "Company"
(BOVESPA: TSPP3 (common shares), TSPP4 (preferred shares); and
NYSE: TCP), and Tele Centro Oeste Celular Participacoes S.A. -
"TCO" (BOVESPA: TCOC3 (common shares), TCOC4 (preferred shares);
and NYSE: TRO), inform their respective shareholders that the
Voluntary Public Tender Offer ("VTO") for the purchase of
preferred shares of TCO by TCP, controlling shareholder of TCO,
was concluded on Friday, October 8, 2004.

Considering that, (i) in accordance with the Notice of Material
Fact published on August 25, 2004, the Company commenced, with
respect to holders of preferred shares issued by TCO a voluntary
public tender offer for the purchase of up to 84,252,534,000
preferred shares, and (ii) the number of shares tendered in the
auction for the VTO exceeded the maximum number to be acquired
by the Company, each shareholder that tendered shares in the VTO
will have, for each share tendered, due to a pro rata
allocation, 0.5547 preferred shares issued by TCO acquired by
the Company.

After settlement of the purchase of shares in the VTO, it is
expected that there will be approximately 24,089,716 outstanding
American Depositary Shares ("ADSs") representing preferred
shares of TCO, based on available information.

Assuming the full settlement of the VTO, under the terms of the
applicable Publication (Edital), (1) the net debt of the Company
will increase by up to R$902.0 million (nine hundred two million
Reais) and (2) the number of preferred shares of capital stock
of TCO held by TCP and by persons directly and indirectly linked
to TCP 84,252,534 preferred shares, representing 32.76% of the
total preferred shares and representing an increase from 28.86%
to 50.65% of the ownership interest of the Company in the total
capital stock of TCO. The objective of this acquisition is to
increase the ownership interest of the Company in the capital
stock of TCO, there being no intention, at this moment, of
acquiring additional shares issued by TCO, or any agreement or
contract in this regard, or that govern the right to vote at
TCO.

The Board of Directors of the Company has approved the proposal
of the Board of Executive Officers for an increase in capital
stock, within the limit of the capital authorized, based on the
following justifications:

- the Company desires to reduce its level of net debt and its
financial costs, as well as to provide financial flexibility and
flexibility for its investment program; and

- as a result of the VTO, as mentioned above, the net debt of
the Company, assuming the full settlement of the VTO, will
increase by up to R$902.0 million (nine hundred two million
Reais).

The capital increase shall be conducted pursuant to the
following terms and conditions:

- the amount of the capital increase shall be up to
R$2,053,895,871.47 (two billion, fifty-three million, eight
hundred ninety-five thousand, eight hundred seventy-one Reais,
forty-seven centavos), of which up to R$2,000,000,000.00 (two
billion Reais) shall be paid in cash, and a portion equal to
R$53,895,871.47 (fifty-three million, eight hundred ninety-five
thousand, eight hundred seventy-one Reais, forty-seven
centavos), corresponding to the tax benefit from goodwill
effectively realized in year 2003, shall be subscribed for with
credits by Portelcom Participacoes S.A, a shareholder of the
Company;

- new common and preferred shares shall be issued for private
subscription according to a ratio to be determined as described
in this document;

- the preemptive right for subscription of shares in the capital
increase shall be extended to the holders of ADSs traded in the
North-American market, which rights may be exercised during a
period to be disclosed at the appropriate time, under the terms
of North-American legislation;

- a registration statement referred to as a Registration
Statement on Form F-3 ("F-3") will be filed at the appropriate
time with the Securities and Exchange Commission ("SEC")
relating to the participation in the capital increase by North-
American investors who hold preferred shares of the Company and
ADSs representing preferred shares of the Company; and

- the issue price of the shares of the Company in the capital
increase shall be determined by the Board of Directors after the
F-3 becomes effective, taking into account the market price of
the preferred shares issued by the Company, under the terms of
Article 170, 1, item III, of Law no. 6,404/76 and under the
provisions of CVM Advisory Opinions nos. 01/78 and 05/79.

Subject to market conditions, and based on the studies and
recommendations to be formulated by the financial advisors of
the Company, the issue price may represent a discount
in relation to said market price.

The final amount, in Reais, of the capital increase (including
the minimum amount necessary for it to be maintained), the issue
price of the shares, the eventual discount, the exact ratio of
shares to be issued, and the other terms and conditions of the
capital increase will be defined by the Board of Directors of
the Company after the F-3 becomes effective and will be
disclosed through a notice to the shareholders.

This press release is not an offer of securities for sales in
Brazil, the United States or any other jurisdiction. Securities
may not be offered or sold in the United States absent
registration or an exemption from registration under the
Securities Act of 1933, as amended. TCP intends to register part
of the proposed rights issue in the United States. Any public
offering of securities to be made in the United States will be
made by means of a prospectus that may be obtained from TCP,
which prospectus will contain detailed information about TCP and
its management, as well as financial statements of TCP.

CONTACT: Telesp Celular Participacoes S.A.
         Phone: +55 11 5105-1172
         e-mail: ir@vivo.com.br

         Web site: http://www.vivo.com.br/ir



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

AES GENER: Demands $26M Debt Payment From Endesa Chile
------------------------------------------------------
Chilean power generator AES Gener has formally accused its rival
Endesa Chile (NYSE: EOC) of not paying a US$26-million debt,
reports Reuters.

On Friday, AES Gener filed a complaint with the Superintendent
of Electricity and Fuels, saying the debt dates to 2000, when
Endesa's Pehuenche power plant sold energy to two of AES Gener's
plants in the spot market at an excessively high price.

According to Reuters, an independent body that coordinates
electricity trading found Pehuenche overcharged for that energy
and must pay back the difference to AES Gener and others.

"If Endesa doesn't pay...the system would be at risk. Not
respecting independent bodies that regulate the system and
breaking the payment chain is very serious," said AES Gener's
CEO Felipe Ceron.

Endesa, however, disagrees with the amount of the debt and has
asked the government to clarify what it calls mistakes in the
debt calculation.



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

AVIANCA: Pilots Seek Way to Block Brazilian Offer
-------------------------------------------------
As part of an effort to block an offer from a Brazilian magnate
to buy Colombian airline Avianca, the airline's pilots approved
a plan to buy the bankrupt air transportation provider, along
with an unnamed Arab investor.

Reuters reports that the approval came during a meeting between
Colombia's pilot union ACDAC and representatives of the unnamed
investor in Dallas, Texas, on Saturday.

They approved a possible bid of US$120 million to US$130 million
for the airline, Reuters reports, citing ACDAC president Alberto
Padilla.

"On Monday, we will go to New York to work with the lawyers and
draw up a letter of intent," he said.

Avianca, which is currently held 50-50 by Colombian conglomerate
Valores Bavaria (VBS.CN) and the country's Coffee Growers'
Federation, filed for Chapter 11 bankruptcy protection in New
York in March last year.

The airline had been hoping to get out of the process by mid-
October after winning approval from its creditors for a
restructuring plan based on its sale to Brazil's Sinergy, which
is controlled by businessman German Efromovich. Sinergy has
offered to make a US$64 million cash injection into Avianca and
assume its debt of about US$300 million.

But the pilots find Sinergy's offer unattractive, as it does not
guarantee the airline's future.



=============
E C U A D O R
=============

BANCO DEL PICHINCHA: Fitch Upgrades Long-term Rating To 'B-'
------------------------------------------------------------
Fitch Ratings, the international rating agency, has upgraded the
long-term rating of Ecuador's Banco del Pichincha and
Subsidiaries (BPS) to 'B-' from 'CCC+'. The Rating Outlook is
Stable. The upgrade follows a similar action taken on Ecuador's
long-term rating that reflects improvements in the government's
access to financing, spending restraint, and export growth. At
the same time, Fitch has affirmed the bank's support rating at
'5'. The 'B-' rating indicates that significant credit risk is
present, but a limited margin of safety remains. Financial
commitments are currently being met; however, capacity for
continued payment is contingent upon a sustained, favorable
business and economic environment.

The assigned ratings reflect Banco del Pichincha's strong
franchise and prominent position within Ecuador, as well as its
broad and well-diversified deposit base. The ratings also
consider the bank's weak, but improving, financial performance
and tight capital position. In addition, Fitch has also
considered that the bank has recently gone through a stress
period, sparked by rumors against the bank, which it has managed
successfully, demonstrating the strength of its liquidity
cushion, but also its vulnerability to market conditions.
Importantly, the bank has consistently maintained high liquidity
levels since the last banking crisis and has taken prompt action
to rebuild this cushion. (Please refer to Fitch Research,
available on the Fitch Ratings web site at
'www.fitchratings.com', to access the most recent full rating
report on BPS, published in July.)

BPS is comprised of 20 financial companies located mainly in
Ecuador, Peru, Colombia, the Bahamas, and Miami. Its principal
subsidiary is Banco del Pichincha, the largest bank in Ecuador,
with an established position in corporate, middle market, and
consumer banking and domestic loan and deposit market shares of
25.6% and 27.8%, respectively, at the end of 2003. Control of
BPS is held by Fidel Egas Grijalva, a well regarded Ecuadorian
entrepreneur who held an equity stake, directly and indirectly,
of 68.3% at the end of 2003.


PRODUBANCO: Fitch Upgrades Long-term Rating to `B' From `CCC+'
--------------------------------------------------------------
Fitch Ratings, the international rating agency, has upgraded the
long-term rating of Produbanco and Subsidiaries (Produbanco),
currently at the country ceiling, to 'B-' from 'CCC+'. The
Rating Outlook is Stable. This follows a similar action taken on
Ecuador's long-term rating that reflects improvements in the
government's access to financing, spending restraint, and export
growth. At the same time, Fitch has affirmed Produbanco's
support ratings of '5'.

The assigned ratings reflect Produbanco's established position
within the corporate market and professional management. They
also reflect the recent weakening in its historically sound
financial performance and consumer loan portfolio, as well as
the risks associated with the volatile operating environment.
(Please refer to Fitch Research, available on the Fitch Ratings
web site at 'www.fitchratings.com', to access the most recent
full rating report on Produbanco, published in July.)

Produbanco and Subsidiaries comprises several financial firms in
Ecuador, the principal of which, Banco de la Produccion S.A.,
the third largest private bank in Ecuador, accounted for 79% of
group assets at the end of 2003. While the bank maintains its
historical corporate focus, it has been expanding into the
consumer segment since the crisis to adapt to the changing
market conditions and substantial increase in retail deposits.

CONTACT:  Linda Hammel +1-212-908-0303, New York
          Ricardo Chaves +1-212-908-0606, New York
          Peter Shaw +1-212-908-1553, New York
          Patricio Baus +5932 222-2323, Quito

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



=============
G R E N A D A
=============

* GRENADA: S&P Lowers Ratings
-----------------------------
Standard & Poor's Ratings Services lowered its foreign and local
currency sovereign credit ratings on Grenada to 'B-/C' from
'B+/B'.

Standard & Poor's also said that it is keeping these ratings on
CreditWatch with negative implications, where they were placed
on Sept. 17, 2004.

"The ratings reflect the enormous challenges the Grenadian
government will face in meeting its debt obligations as a result
of the disastrous impact Hurricane Ivan inflicted on the
island," said Standard & Poor's credit analyst Olga Kalinina.
The damage, currently estimated at US$900 million (more than
double country's GDP in 2003), extends to all spheres of the
Grenadian economy. Because of the severe public and private
infrastructure damage and the decimation of the island's
agriculture, the recovery of the tourism and nutmeg industries--
the main growth engines and foreign-exchange earners of the
country's economy--will be difficult and prolonged (at least
seven years for resumption of nutmeg exports), virtually halting
the country's exports and the government fiscal revenues in the
short term.

Given the high level of government debt, estimated at 92% of GDP
(76% on net basis) before the hurricane, to avoid default, the
sovereign will require generous and prompt donor grants not only
for reconstruction but also for budget support. "Although the
government emphasizes its commitment to meet its commercial debt
obligations as due, Standard & Poor's rating action today and
maintenance of the ratings on CreditWatch negative indicate that
private-sector involvement in the form of a debt exchange or
debt forgiveness could be required to restore public finances to
a sustainable level," Ms. Kalinina added.

Primary Credit Analyst(s): Olga Kalinina, CFA, New York (1) 212-
438-7350; olga_kalinina@standardandpoors.com

Secondary Credit Analyst(s): Helena Hessel, New York (1) 212-
438-7349; helena_hessel@standardandpoors.com



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

C&WJ: Warns Shareholders of Possible Impairment Costs
-----------------------------------------------------
Cable & Wireless Jamaica (CWJ) warned shareholders that the
company could face impairment costs associated with its Global
System for Mobile communications (GSM) technology, the platform
that supports its mobile service, the Jamaica Gleaner reports.

Speaking at the company's 17th annual general meeting (AGM) held
last week at the Hilton Kingston Hotel in New Kingston, outgoing
President, Gary Barrow said, "We live in a very fast changing
world - the reality is that there is an evolutionary path
associated with GSM. It is difficult to give a commitment that
asset impairment in the future [will not be] inevitable."

C&WJ's financials have carried asset impairment costs for the
last two years. The company unveiled a three-year plan for its
Jamaican operations that included driving broadband penetration,
increasing fixed lines in service and delivering better customer
service.

Incoming President Jacqueline Holding acknowledged that revenue
growth would be difficult within the current marketplace and
regulatory environment and that her role would be to "balance
the equation."



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

IMSS: Salary Hike Stand Off Could Lead to Strike
------------------------------------------------
The Union of Social Security Workers (SNTSS) has threatened to
proceed with a strike if the Mexican Social Security Institute
(IMSS) fails to put forward an acceptable salary increase plan.

El Financiero says that the strike will begin Friday midnight if
the two parties can't arrive at a compromise within the four-day
grace period given by the union.

In the report, union leader Roberto Vega Galina said that "if
the 1,000 members that are going to participate in the assembly
tell me to continue negotiating, I will continue to hold talks;
but if they tell me it is time to strike, the union will have to
comply with what government entities say."

The workers are pushing for the wage hike because their
collective bargaining agreement with the government stipulates a
wage revision this year.


MAXCOM TELECOMUNICACIONES: Exchange Offer Expires
-------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based
telecommunications provider (CLEC) using a "smart build"
approach to focus on small - and medium -sized businesses and
residential customers in the Mexican territory, announced on
October 6, 2004 the expiration of the exchange offer for its
Senior Notes due 2007 (the "Old Notes").

Holders tendered $36,117,789 in aggregate principal amount of
the Old Notes, representing 21.6% of the Old Notes outstanding
for an aggregate of $36,117,789 in principal amount of new
Senior Step-Up Notes due 2009. Additionally, holders tendered
$126,387,922 in aggregate principal amount of the Old Notes,
representing 75.4% of the Old Notes outstanding for an aggregate
of 101,110,338 shares of our Series N-1 Preferred Stock,
representing approximately 36.5% of our capital stock. As of the
close of business on October 6, 2004, The Bank of New York, the
exchange agent, had also received consents, without a
corresponding tender of Old Notes, to amend certain restrictive
covenants of the indenture governing the Old Notes representing
$1,909,080 in aggregate principal amount of the Old Notes. Such
consents and the tendered Old Notes represent an aggregate
principal amount of $164,414,791 or 98.1% of the total
outstanding Old Notes. Maxcom has advised The Bank of New York
that it has accepted for exchange all of the tendered Old Notes.
All withdrawal rights have terminated.

Pursuant to the terms of the exchange offer, for the proposed
amendments to the indenture to be adopted, holders of at least a
majority in aggregate principal amount of the Old Notes, other
than Old Notes held by Maxcom or any affiliate of Maxcom must
consent to such amendments. As of the date hereof, Maxcom has
received consents to the proposed amendments in the aggregate
principal amount of Old Notes (other than Old Notes held by
Maxcom or any affiliate of Maxcom) of $36,408,282, which
represents 92.0% of the total principal amount of outstanding
Old Notes (other than Old Notes held by Maxcom or any affiliate
of Maxcom), therefore fulfilling the condition for the adoption
of the proposed amendments.

After the completion of this transaction, Maxcom's indebtedness
will be substantially reduced by 71% to $52,825,668 from
$179,213,590. Thus, the Company will significantly improve its
debt profile by extending its maturity dates, as follows:
$5,117,879 on March 1, 2007; $11,590,000 on April 1, 2007; and,
$36,117,789 on October 15, 2009. Likewise, the consent to the
amendment of certain restrictive covenants of the indenture
governing the Old Notes will allow Maxcom to attract additional
investments and access multiple opportunities for future growth.

"I am extremely pleased with the outcome of this capitalization
process as it once again confirms that our stakeholders support
us and are confident about the Company's results, which have
been improving for the last 18 months," stated Rene Sagastuy,
Maxcom's Chief Executive Officer. Mr. Sagastuy added, "Maxcom's
team is committed to continue working with the same enthusiasm,
delivering results to maximize the value of this firm."

"This exchange offer radically improves the Company's leverage
and capital structure and corroborates that stakeholders endorse
and believe in Maxcom's business model," said Jacques Gliksberg
from Banc of America Equity Partners and Chairman of the Finance
Committee of Maxcom's Board of Directors. Mr. Gliksberg added,
"As the largest shareholder we will continue supporting its
business plan as well as the team of professionals in charge of
the execution."

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance and data services in greater metropolitan Mexico City,
Puebla and Queretaro. The information contained in this press
release is the exclusive responsibility of Maxcom
Telecomunicaciones, S.A. de C.V. and has not been reviewed by
the National Banking and Securities Commission of Mexico (CNBV).
The registration of the securities described in this press
release before the Special Section of the National Registry of
Securities (Registro Nacional de Valores) held by the CNBV does
not imply a certification of the investment quality of the
securities or of Maxcom's solvency. The securities described in
this press release have not been registered before the
Securities Section of the National Registry of Securities held
by the CNBV and therefore can not be publicly offered or traded
in Mexico. The trading of these securities by a Mexican investor
will be made under such investor's own responsibility.


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

FNCU VENTURE CAPITAL: Faces Permanent Shutdown
----------------------------------------------
FNCU Venture Capital Company, which was suspended by Trinidad's
industry regulator Venture Capital Incentive Programme (VCIP) on
Sep. 1 for several breaches of the Venture Capital Act of 1994,
faces a permanent shutdown, The Trinidad Express reports.

VCIP Administrator, Judith Mark, gave the company three months
after the suspension to put its house in order.

"They are working to address some of the issues. But if they
don't comply we can cancel their operations altogether. I hope
it doesn't reach to that," Mark said.

FNCU Venture Capital Company and its fund manager, Financial
Concepts Ltd., are currently under fire as senators asked for a
full inquiry into alleged financial irregularities at the two
companies.

The move came after key shareholders 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 VCIP and the Securities and Exchange Commission.

According to the Sunday Express, some of the company's main
shareholders are now planning a united approach to the High
Court in an attempt to reclaim their investments in the company.
Talks were ongoing last week with a senior attorney with a view
to filing a lawsuit soon.



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

CITGO: Opens Tender Offer for 11 3/8% Senior Notes
--------------------------------------------------
CITGO Petroleum Corporation announced Friday that it has
commenced a cash tender offer (the "Offer") for any and all of
its outstanding $550,000,000 11 3/8 % senior notes due 2011 and
a solicitation of consents (the "Consent Solicitation") to
eliminate certain restrictive covenants from the indenture
governing the 11 3/8 % notes.   The Offer and Consent
Solicitation are being made pursuant to an Offer to Purchase and
Consent Solicitation Statement, dated October 8, 2004.

The total consideration will be determined by pricing the 11%
notes using standard market practice to the First Call date at a
fixed spread of 85 basis points over the bid side yield on the
2.625% Treasury Note due November 15, 2006 , determined at 2:00
p.m. New York City time on October 20, 2004 (the "Pricing Date")
by reference to the Bloomberg Pricing Monitor.

Holders who tender and deliver their consents to the proposed
amendments to the indenture governing the 11 3/8 % notes by 5:00
p.m. New York City time on October 19, 2004 (the "Consent Date")
will be eligible to receive the total consideration, which
includes a consent payment equal to $30 per $1,000 principal
amount of 11 3/8 % notes tendered.   Holders who tender after
the Consent Date but by November 5, 2004 (the "Expiration Date")
will be eligible to receive the tender offer consideration,
which equals the total consideration less the consent payment.

The Offer is subject to, and conditioned upon, the receipt by
CITGO of proceeds from an offering of its debt securities under
a new financing.   This financing condition is in addition to
other conditions set forth in the Offer to Purchase and Consent
Solicitation Statement.

We expect to pay holders who validly tender their 11 3/8 % notes
by the Consent Date promptly following the satisfaction of the
financing condition.   We expect to pay holders who validly
tender and do not withdraw their 11 3/8 % notes after the
Consent Date, but by the Expiration Date, promptly following the
Expiration Date.

Lehman Brothers Inc. is the Dealer Manager and Solicitation
Agent, and D.F. King & Co., Inc. is the Information Agent, in
connection with the Offer and Consent Solicitation.   Requests
for information should be directed to:

Lehman Brothers Inc.
Phones: (212) 528-7581 (call collect)
        (800) 438-3242 (toll free).

Requests for documents should be directed to:

D.F. King & Co., Inc.
Phones: (212) 269-5550 (call collect)
        (800) 290-6431 (toll free).

This press release is not an offer to purchase or the
solicitation of an offer to sell with respect to the 11 3/8 %
notes.   The offers are being made solely by the Offer to
Purchase and Consent Solicitation Statement.

ABOUT CITGO

CITGO Petroleum Corporation is a leading refining and marketing
company based in Houston, Texas , with approximately 4,000
employees and annual revenues of approximately $25 billion.
CITGO's ultimate parent is Petr˘leos de Venezuela, S.A. (PDVSA),
the national oil company of the Bolivarian Republic of Venezuela
and its largest supplier of crude oil.

CITGO operates fuels refineries in Lake Charles, Louisiana,
Corpus Christi, Texas, and Lemont, Illinois, and asphalt
refineries in Paulsboro, New Jersey and Savannah, Georgia.
CITGO has long-term crude oil supply agreements with PDVSA for a
portion of the crude oil requirements at these facilities.
CITGO is also a 41-percent participant in LYONDELL-CITGO
Refining LP, a joint venture fuels refinery located in Houston,
Texas. CITGO's interests in these refineries result in a total
crude oil capacity of approximately 865,000 barrels per day.

Serving nearly 14,000 branded, independently owned and operated
retail locations, CITGO is also one of the five largest branded
gasoline suppliers within the United States.

CONTACT: Citgo Petroleum Corporation
         1 Warren Place, 6100 S. Yale Ave.
         Tulsa, OK 74136
         Phone: 918-495-4000
         Fax: 918-495-4511


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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

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

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


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