TCRLA_Public/041019.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 19, 2004, Vol. 5, Issue 207

                            Headlines


A R G E N T I N A

AIRSYS S.A.: Court OKs Reorganization Plea
ARKOPSCA S.A.: Creditor's Bankruptcy Petition Gets Court OK
AUTO RADIO: Court Declares Company Bankrupt
BANCO FRANCES: Argentina's Default Status Hinders Lending
D AGOVAC: Verification Deadline Moved

ESTABLECIMIENTO METALURGICO: Gets Liquidation Order From Court
FOTO CLUB ARGENTINO: Court Reschedules Submission Deadlines
LA NUBECITA: Court Authorizes Reorganization
LAMINACION NORTE: Enters Bankruptcy on Court Orders
MASTELLONE HERMANOS: Extends Debt Offer to October 19

MIEL LAS HERAS: Liquidates Assets to Pay Debts
MULTICANAL: Antitrust Authorities Order HBO To Restore Channels
PEHUEN VIAL: Declared Bankrupt by Court
POLIPEL S.A.: Begins Liquidation Process
SANCOR: Reaches Debt Agreement With Creditors

TRAFIND S.A.I.C: Proceeds to Restructure Debt


B E R M U D A

AHL GUARANTEED: Members Resolve to Wind-Up Voluntarily
AUGUST TRADING: To Hold Final General Meeting
FOSTER WHEELER: Issues Class B Warrants
GLOBAL FUTURES FUND: Appoints Beverly Mathias as Liquidator
INTERNATIONAL MANAGEMENT: Names Norman Holbrow as Liquidator

LORAL SPACE: Finalizes Revised Settlement Plan
MINT GUARANTEED: Members Appoint Liquidator


B R A Z I L

INEPAR: Cemar, Celpa Stake Sales Get Stockholder Approval
LIGHT: Strikes Debt Rescheduling Accord With Bank Creditors
SKY BRASIL: S&P Places Ups Ratings to Watch Positive


C O L O M B I A

TELECOM: Sells Comcel Stake for Undisclosed Amount


E L   S A L V A D O R

BANCO MULTISECTORIAL: Fitch Affirms Ratings


J A M A I C A

KAISER ALUMINUM: Reaches Pension Settlement With PBGC


M E X I C O

AHMSA: No. 3 Furnace Returns to Production
GRUPO ELEKTRA: Retires All Debt, S&P Withdraws Ratings
GRUPO MEXICO: Workers Go On Strike Over Payment Conflict
INNOVA: S&P Places Ratings On Watch Positive
MAXCOM TELECOMUNICACIONES: Revenue, EBITDA Gains Continue


P E R U

LANPERU: Aviation Authorities Lift Flight Suspension


U R U G U A Y

PLUNA: British Firm Offers to Buy Varig's Stake


     - - - - - - - - - -

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

AIRSYS S.A.: Court OKs Reorganization Plea
------------------------------------------
Buenos Aires-based refrigeration equipment supplier Airsys S.A.
received approval to enter "concurso preventivo" proceedings
from court no. 4 of the city's civil and commercial tribunal,
Infobae reports. During reorganization, the Company will be able
to draft a settlement plan for its creditors in order to prevent
a complete liquidation of its assets.

Clerk no. 8 assists the court on this case.

CONTACT: Airsys S.A.
         Viamonte 1454
         Buenos Aires


ARKOPSCA S.A.: Creditor's Bankruptcy Petition Gets Court OK
-----------------------------------------------------------
Murchison S.A. Estibajes and Cargas I.C. successfully sought a
bankruptcy ruling against Arkopsca S.A.. Judge Ballerini,
serving for court no. 24 of Buenos Aires' civil and commercial
tribunal, declared the Company "Quiebra" in response to the
creditor's motion.

Local daily La Nacion reports that the fishing company will now
start the bankruptcy process with Mr. Juan Sosa as trustee.
Creditors of the Company must submit their proofs of claim to
the trustee before December 20 for authentication. Failure to do
so will mean disqualification from the payments that will be
made after the Company's assets are liquidated.

The creditors petitioned the court after Arkopsca failed to pay
debts amounting to US$45,018. Dr. Medina, clerk no. 47, assists
the court on the case that will culminate in the liquidation of
all of its assets.

CONTACT: Arkopsca SA
         Teniente General Juan D. Peron 1615
         Buenos Aires

         Mr. Juan Sosa, Trustee
         Viamonte 1783
         Buenos Aires


AUTO RADIO: Court Declares Company Bankrupt
-------------------------------------------
Judge Villanueva, working for court no. 23 of Buenos Aires'
civil and commercial tribunal, declared local company Auto Radio
Canning S.R.L. "Quiebra", relates La Nacion. The court approved
the bankruptcy petition filed by Banco Comafi S.A. Fiduciario
del Fideicomiso Acex, whom the Company failed to pay debts
totaling US$8,810.

The Company will undergo the bankruptcy process with Mr. Ricardo
Agrogue as its trustee. Creditors are required to present their
proofs of claims to the trustee for verification before December
20. 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. Robledo, clerk no. 46, assists the court on the case.

CONTACT: Auto Radio Canning S.R.L.
         Avenida Scalabrini Ortiz 1925
         Buenos Aires

         Mr. Ricardo Agrogue, Trustee
         Bouchard 468
         Buenos Aires



BANCO FRANCES: Argentina's Default Status Hinders Lending
---------------------------------------------------------
BBVA Banco Frances (NYSE: BFR), one of the three largest
private-sector banks in Argentina, is looking to take up long-
term lending again, reports Business News Americas. But that
seems to be a remote reality as the country's banks have focused
exclusively on short-term lending since they began lending again
following the severe crisis in late 2001 and 2002.

The average maturity of the bank's time deposits is only 40 days
and without access to longer-term funding abroad "then it's
difficult to talk about long-term lending," the official said,
adding that solving Argentina's default status is a fundamental
condition to recover local long-term financing as it will boost
local depositors' confidence and open international markets.

Spanish financial group BBVA (NYSE: BBV) controls Banco Frances.

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


D AGOVAC: Verification Deadline Moved
-------------------------------------
Court no. 15 of Buenos Aires' civil and commercial tribunal
changed the verification deadline for the D Agovac S.R.L.
bankruptcy case to December 15, reports Infobae.

Creditors must submit proof of their claims to trustee Carlos
Alberto Lausi before the said deadline in order to qualify for
the post-liquidation payments that will be made.

Clerk no. 30 assist the court with the liquidation proceedings.

CONTACT: Mr. Carlos Alberto Lausi, Trustee
         Avda Cordoba 456
         Buenos Aires


ESTABLECIMIENTO METALURGICO: Gets Liquidation Order From Court
--------------------------------------------------------------
Local mining company Establecimiento Metalurgico J.G. S.R.L.
proceeds to liquidate its assets after receiving authorization
from court no. 26 of Buenos Aires' civil and commercial
tribunal, says Infobae. The report did not provide dates for key
events in the bankruptcy proceedings or the name of the trustee
assigned to on the case. The city's clerk no. 52 assists the
court with the bankruptcy process.

CONTACT: Establecimiento Metalurgico J.G. S.R.L.
         General Enrique Martinez 1350
         Buenos Aires


FOTO CLUB ARGENTINO: Court Reschedules Submission Deadlines
-----------------------------------------------------------
Court no. 26 of Buenos Aires' civil and commercial tribunal
reset key events in the Foto Club Argentino Asociacion Civil
bankruptcy case to these dates:

1. Claims verification deadline - December 6, 2004
2. Submission of Individual Reports - February 21, 2005
3. Submission of the General Report - April 6, 2005

Mr. Enrique Luis Cabello supervises the Company's liquidation as
the court-appointed trustee.

Clerk no. 52 assists the court on this case.

CONTACT: Mr. Enrique Luis Cabello, Trustee
         Aguaribay 6736
         Buenos Aires


LA NUBECITA: Court Authorizes Reorganization
--------------------------------------------
La Nubecita Blanca S.R.L. will begin reorganizing its financial
affairs following the approval of its petition by court no. 1 of
Lomas de Zamora's civil and commercial tribunal. The process
allows allow the company to negotiate a settlement with its
creditors in order to avoid a complete liquidation.

Mr. Jose Angel Tsanis will oversee the reorganization
proceedings as the court-appointed trustee. He will verify
creditors' claims until December 7. Afterwards, the validated
claims will be presented in court as individual reports on
February 16, 2005.

The trustee is also required by the court to submit a general
report essentially auditing the company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on March 30, 2005.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on June 16, 2005.

CONTACT: La Nubecita Blanca S.R.L.
         Madariaga 374/86
         Avellaneda

         Mr. Jose Angel Tsanis, Trustee
         Mariano Acosta 137
         Avellaneda


LAMINACION NORTE: Enters Bankruptcy on Court Orders
---------------------------------------------------
Laminacion Norte S.R.L. enters bankruptcy protection after court
no. 9 of Buenos Aires' civil and commercial tribunal, with the
assistance of clerk no. 17, ordered the company's liquidation.
The order effectively transfers control of the company's assets
to the court-appointed trustee who will supervise the
liquidation proceedings.

Infobae reports that the court selected Mr. Jaime Luis Jeiman as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on December 15.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on March 9, 2005 followed by the general report, which is due on
April 26, 2005.

Steel firm Acindar S.A., which has US$20,007 worth of
receivables from the Company, requested the bankruptcy.

CONTACT: Mr. Jaime Luis Jeiman, Trustee
         Lavalle 1312
         Buenos Aires


MASTELLONE HERMANOS: Extends Debt Offer to October 19
-----------------------------------------------------
Argentine dairy company Mastellone Hermanos extended the final
extension of its US$330 million debt-restructuring offer from
Oct. 14 to Oct. 19 to give more time to debt holders to sign on,
says Dow Jones Newswires.

The company had sweetened the terms of its offering in mid-
September, at which time it could count on 88.3% acceptance. One
month later, it had secured a total of 97.66% support,
Mastellone said Friday in a press release.

When it sweetened the terms of the offering, Mastellone brought
forward the maturity date of one of the new bonds to be issued
to 2012 from 2014, upped its coupon to 8% from 7%, and set the
start date for accrued interest at July 31, 2004, rather than
the closing date of the offer.

At that time, the company also withdrew a plan to pay out a
separate floating-rate bond due in 2011 early if it had excess
cash to do so. Finally, it also extended a cash payment offer
worth 60% of original holdings to both qualified institutional
investors and individual investors in the U.S.

The company has said in the past that it won't pursue its out-
of-court debt restructuring agreement, known as an APE, if
acceptance reaches 98%. Under APE rules, two-thirds approval
from creditors allows a company to submit its offer for legal
clearance, which then makes the repayment terms binding on all
creditors.

As of midnight Thursday, the company said it had received
commitments from about US$217.3 million, or 96.58%, of the
US$225 million in bonds subject to the restructuring. The
company had already received 100% acceptance from banks holding
about US$103.9 million in bank debt. Combined, this amounts to
overall support of 97.66%.


MIEL LAS HERAS: Liquidates Assets to Pay Debts
----------------------------------------------
Buenos Aires-based Miel Las Heras S.R.L. will begin liquidating
its assets following the pronouncement of the city's court no.
26 that the company is bankrupt, reports Infobae.

The ruling places the company under the supervision of court-
appointed trustee, Mr. Ricardo Luis Bonifatti. The trustee will
verify creditors' proofs of claims until December 2. Next, the
validated claims will be presented in court as individual
reports on February 14, 2005.

Mr. Bonifatti will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy on March 28, 2005.

The bankruptcy process will end with the disposal company assets
in favor of its creditors.

CONTACT: Miel Las Heras S.R.L.
         Las Heras 2219
         Buenos Aires

         Mr. Ricardo Luis Bonifatti, Trustee
         Avda. Corrientes 123
         Buenos Aires


MULTICANAL: Antitrust Authorities Order HBO To Restore Channels
---------------------------------------------------------------
Argentina's National Commission for Defense of Competition
ordered U.S.-based pay TV programmer and distributor HBO Latin
America Group to continue providing channels to local cable
operator Multicanal. According to reports, the ruling grants a
request by Multicanal and can be appealed in court.

On Oct. 9, HBO suspended 10 channels from Multicanal because the
Argentine cable company hadn't made a sufficient commitment to
eliminate piracy. HBO also said Multicanal had continued to
illegally broadcast the channels.

The Argentine provider hit back at HBO, saying the content
provider had - without reason - hiked its rates by 110% and up
to 242% for some channels. The local company further said it has
met all its payment obligations and has, in fact, presented a
proposal for digital conversion to HBO, which hasn't responded.

Multicanal said it was "unacceptable that (HBO) seeks to conceal
its abusive commercial conduct beneath unfounded accusations of
Multicanal's supposed tolerance regarding piracy. Multicanal has
been one of the companies that has given more concrete steps to
combat piracy, as much through its own developments and
investments as intensely supporting industry initiatives."


PEHUEN VIAL: Declared Bankrupt by Court
---------------------------------------
Pehuen Vial S.R.L. of Buenos Aires is now "Quiebra" - meaning
bankrupt, says Infobae. Court no. 26 of the city's civil and
commercial tribunal decreed the Company's bankruptcy. The court,
aided by clerk no. 51 will conclude the bankruptcy process by
liquidating its assets to repay creditors.

CONTACT: Pehuen Vial S.R.L.
         Avda Rivadavia 882
         Buenos Aires


POLIPEL S.A.: Begins Liquidation Process
----------------------------------------
Local company Polipel S.A. will begin liquidating its assets
after court no. 26 of Buenos Aires' civil and commercial
tribunal declared the company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee Pablo Alberto Amante.

The trustee will review claims forwarded by the company's
creditors until November 15. After claims verification, the
trustee will submit the individual reports for court approval on
December 28. The general report submission will follow on March
9, 2005.

Clerk no. 51 assists the court on this case.

CONTACT: Polipel S.A.
         Lavalle 1634
         Buenos Aires

         Mr. Pablo Alberto Amante, Trustee
         Lavalle 1537
         Buenos Aires


SANCOR: Reaches Debt Agreement With Creditors
---------------------------------------------
Argentine dairy cooperative SanCor managed to reach a US$167-
million debt restructuring agreement with its creditors.

In order to strike the deal, the company had to put its most
appreciated asset, its brand, as additional security. This asset
will be realeased from liens in the future, as long as SanCor
complies with the payment schedule. The rest of the warranties,
such as plants and machinery, will expire once the whole debt
has been paid off.

SanCor's debt dates from the 90s, when the company decided to
carry out an ambitious industrial updating plan, which included
the purchase of machinery and plant investment. SanCor started
to default in payments of its debt after the devaluation of the
Argentine peso.

Its major creditors are the International Finance Corporation
(IFC) Cooperative Centrale Raiffeisen-Boerenleebank B.V.,
Rabobank International and New York Branch.

According to the debt restructuring agreement, the US$167
million will be repaid with two tranches of new notes.


TRAFIND S.A.I.C: Proceeds to Restructure Debt
---------------------------------------------
Local company Trafind S.A.I.C. received approval to enter
"concurso preventivo" proceedings from court no. 18 of Buenos
Aires' civil and commercial tribunal, Infobae reports.

During reorganization, the Company will be able to draft a
settlement plan for its creditors in order to prevent a straight
liquidation.

Clerk no. 36 assists the court on this case.

CONTACT: Trafind S.A.I.C.
         Av. Pueyrred˘n 524
         Buenos Aires



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

AHL GUARANTEED: Members Resolve to Wind-Up Voluntarily
------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                         and

IN THE MATTER OF AHL Guaranteed Real Time Trading Limited

The Members of AHL Guaranteed Real Time Trading Limited, acting
by written consent without a meeting on October 13, 2004 passed
the following resolutions:

1) That the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) That Beverly Mathias be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

Ms. Mathias, the Liquidator, informs that:

- Creditors of AHL Guaranteed Real Time Trading Limited, which
is being voluntarily wound up, are required, on or before
October 29, 2004 to send their full Christian and Surnames,
their addresses and descriptions, full particulars of their
debts or claims, and the names and addresses of their lawyers
(if any) to Beverly Mathias at c/o Argonaut Limited, Argonaut
House, 5 Park Road, Hamilton HM O9, Bermuda, the Liquidator of
the said Company, and if so required by notice in writing from
the said Liquidator, and personally or by their lawyers, to come
in and prove their debts or claims at such time and place as
shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.

- A final general meeting of the Members of AHL Guaranteed Real
Time Trading Limited will be held at the offices of Argonaut
Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda,
on November 30, 2004 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) Receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) By resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Ms. Beverly Mathias, Liquidator
         c/o Argonaut Limited
         Argonaut House, 5 Park Road, Hamilton HM O9,
         Bermuda


AUGUST TRADING: To Hold Final General Meeting
---------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                        and

         IN THE MATTER OF August Trading Limited

Notice is hereby given that the Final General Meeting of the
Members of August Trading Limited will be held at KPMG Financial
Advisory Services Limited, Crown House, 4 Par-la-Ville Road,
Hamilton Bermuda on November 15, 2004 at 10:00 p.m. for the
following purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

2. by Resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3. by Resolution dissolving the Company.


FOSTER WHEELER: Issues Class B Warrants
---------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced that it has
distributed on a one-to-one basis the Class B Warrants to the
holders of record of the Company's Common Shares at the close of
business on September 23, 2004. The Class B Warrants allow the
holders to purchase Common Shares or, if the approval of the
increase in the authorized Common Shares is not obtained at the
shareholder's meeting scheduled to be held on November 29, 2004,
Series B Convertible Preferred Shares. Each Class B Warrant
becomes exercisable on September 24, 2005, at an exercise price
of $0.4689 per Common Share issuable and expires at 5:00 p.m. on
September 24, 2007. Following the expiration of the subsequent
offering period of its equity-for-debt exchange offer on October
20, 2004, Foster Wheeler will announce the precise number of
Common Shares for which each Class B Warrant will become
exercisable. The CUSIP number for the Class B Warrants is
G36535113.

The Company is also providing the following additional
information related to securities issued in connection with the
exchange offer, which closed on September 24, 2004.

Securities Issued in Connection with the Exchange Offer:

1. New Notes

Foster Wheeler LLC issued $141,437,250 of Series A New Notes in
connection with the exchange offer. The New Notes have a
maturity date of September 15, 2011, and an annual coupon rate
of 10.359%. Interest on the Series A New Notes began accruing on
September 24, 2004, and is payable semi-annually on March 15 and
September 15. The CUSIP number for the New Notes is 350250AA4.

In addition, $120,000,000 of Series B New Notes were privately
placed with a group of institutional investors. These notes have
substantially identical terms, including the same interest rate,
maturity date, and semi-annual interest payment dates as the
Series A New Notes described above. The Company intends to file
a registration statement with the Securities and Exchange
Commission to offer Series A New Notes that are registered under
the Securities Act and eligible for public trading in exchange
for the privately placed Series B New Notes.

2. Common Shares

The Company also issued 61,243,146 Common Shares in connection
with the exchange offer. The issuance of these shares raised the
aggregate number of the Company's Common Shares issued as of the
closing of the exchange offer to 102,014,706. The CUSIP for the
Common Shares is G36535105.

3. Series B Convertible Preferred Shares

The Company also issued 599,850 shares of Series B Convertible
Preferred Shares in connection with the exchange offer. Provided
that the Company's shareholders approve an increase in the
number of authorized shares of Common Shares of the Company at a
shareholder's meeting currently scheduled to be held on November
29, 2004, each share of Series B Convertible Preferred Shares
will be convertible into 1,300 Common Shares. On an as-converted
basis, the Series B Convertible Preferred Shares issued equates
to 779,805,198 Common Shares. Voting rights of the holders of
the Series B Convertible Preferred Shares will be on an as-
converted basis. The CUSIP number for the Series B Convertible
Preferred Shares is 35024P201.

4. Class A Warrants

The Company issued 4,150,014 Class A Warrants to those holders
of the 9.00% Preferred Securities that were tendered into the
exchange offer. The Class A Warrants allow the holders to
purchase Common Shares or, if the approval of the increase in
the authorized Common Shares is not obtained, Series B
Convertible Preferred Shares. Each Class A Warrant becomes
exercisable on September 24, 2005, at an exercise price of
$0.4689 per Common Share issuable, and expires on September 24,
2009. Following the expiration of the subsequent offering period
of its equity-for-debt exchange offer on October 20, 2004,
Foster Wheeler will announce the precise number of Common Shares
for which each Class A Warrant will become exercisable. The
CUSIP number for the Class A Warrants is G36535121.

Securities Issued After the Closing of the Exchange Offer:

1. Management and Director Issuances

On October 6, 2004, management was issued 37,674,898 restricted
common share awards in accordance with the Company's Management
Restricted Stock Plan, of which 27,036,920 were in the form of
restricted shares and 10,637,978 were in the form of restricted
share units. One third of the restricted awards vest in the
fourth quarter of 2005, and the balance vest during the fourth
quarter of 2006. The restricted shares have immediate voting
rights, and the restricted stock units will give the holders
voting rights upon vesting.

On October 6, 2004, management also was issued options to
purchase 43,103 shares of the Company's Series B Convertible
Preferred Shares. If the shareholders affirmatively vote at the
shareholder's meeting to increase the number of the Company's
Common Shares, each such option to purchase a Convertible
Preferred Share would be converted into an option to purchase
1,300 Common Shares. These options have an exercise price of
$609.57 (or $0.4689 per Common Share issuable). One third of the
options vest in the fourth quarter of 2005, and the balance vest
during the fourth quarter of 2006.

On October 6, 2004, the Company's Board of Directors approved
(i) the grant of 361,298 restricted share units, and (ii)
options to purchase 413 Series B Convertible Preferred Shares to
the Company's non-employee directors. If the shareholders
affirmatively vote at the shareholder's meeting to increase the
number of the Company's Common Shares, each such option to
purchase a Convertible Preferred Share would be converted into
an option to purchase 1,300 Common Shares. The options have an
exercise price of $609.57 (or $0.4689 per Common Shares
issuable). These non-employee director grants are subject to the
approval of the Company's shareholders, who will vote on this
matter at the shareholders' meeting currently scheduled for
November 29, 2004. If the grants are approved, the options and
restricted share units will vest on December 31, 2005.

At the close of business on October 6, 2004, the Company had an
aggregate of 129,051,626 Common Shares and 599,850 Preferred
Shares issued with full voting rights. On an as-converted basis,
the aggregate number of Common Shares with voting rights
outstanding was 908,856,824.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, oil and gas, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries. The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA.


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

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


GLOBAL FUTURES FUND: Appoints Beverly Mathias as Liquidator
-----------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                        and

      IN THE MATTER OF Global Futures Fund III Limited

The Members of Global Futures Fund III Limited, acting by
written consent without a meeting on October 13, 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Beverly Mathias be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator notifies that:

- Creditors of Global Futures Fund III Limited, which is being
voluntarily wound up, are required, on or before October 29,
2004 to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Beverly
Mathias at c/o Argonaut Limited, Argonaut House, 5 Park Road,
Hamilton HM O9, Bermuda, the Liquidator of the said Company, and
if so required by notice in writing from the said Liquidator,
and personally or by their lawyers, to come in and prove their
debts or claims at such time and place as shall be specified in
such notice, or in default thereof they will be excluded from
the benefit of any distribution made before such debts are
proved.

- A final general meeting of the Members of Global Futures Fund
III Limited will be held at the offices of Argonaut Limited,
Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, on
November 30, 2004 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

CONTACT: Ms. Beverly Mathias, Liquidator
         c/o Argonaut Limited
         Argonaut House, 5 Park Road, Hamilton HM O9
         Bermuda


INTERNATIONAL MANAGEMENT: Names Norman Holbrow as Liquidator
------------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                            and

                     IN THE MATTER OF
International Management and Marketing Corporation Limited

The Sole Member of International Management and Marketing
Corporation Limited, acting by written consent without a meeting
on October 12, 2004 passed the following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Norman J. Holbrow be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

Mr. Holbrow, in his capacity as Liquidator, notifies that:

- Creditors of International Management and Marketing
Corporation Limited, which is being voluntarily wound up, are
required, on or before October 29, 2004 to send their full
Christian and Surnames, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their lawyers (if any) to Norman J. Holbrow, c/o
Messrs. Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, HM DX, Bermuda, the Liquidator of the said Company,
and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Sole Member of International
Management and Marketing Corporation Limited will be held at The
Bank of Bermuda, 9 Compass Point, Bermudiana Road, Hamilton HM
11, Bermuda on November 19, 2004 at 9:30 a.m. or as soon as
possible thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Norman J. Holbrow, Liquidator
         P. O. Box HM 3211, Hamilton HM NX
         Bermuda


LORAL SPACE: Finalizes Revised Settlement Plan
----------------------------------------------
Loral Space & Communications Ltd. (OTCBB: LRLSQ) and the
Creditors' Committee appointed in the chapter 11 cases of Loral
and certain of its subsidiaries announced Friday that they
reached an agreement on revised economic terms of a proposed
plan of reorganization (the "Plan").  The Company expects to
file a revised Plan and a Disclosure Statement with the
Bankruptcy Court by October 22, 2004. The company expects to
exit chapter 11 under current management in the first-quarter of
2005.

The Plan, which revises the terms of a Plan previously filed on
August 19, 2004, is the product of continued negotiations
between the company and the Creditors' Committee and is subject
to final documentation and the resolution of certain other
issues between the company and the Creditors' Committee and
confirmation by the bankruptcy court. It provides, among other
things, that:

- Loral's two businesses, Space Systems/Loral and Loral Skynet,
will emerge intact as separate subsidiaries of reorganized Loral
(New Loral).

- Space Systems/Loral, the satellite design and manufacturing
business, will emerge debt-free.

- The common stock of New Loral will be owned by Loral
bondholders, Loral Orion bondholders and certain other unsecured
creditors. In addition, bondholders of Loral Orion and other
unsecured creditors of Loral Orion will receive an aggregate of
$200 million in new senior secured notes to be issued by
reorganized Loral Skynet, New Loral's satellite services
subsidiary.

- Loral Orion unsecured creditors also will be offered the right
to subscribe to purchase their pro-rata share of $30 million in
new senior secured notes to be issued by reorganized Loral
Skynet.

- Based upon current estimates, creditors of Space
Systems/Loral, Loral SpaceCom Corporation and Loral Satellite,
Inc. will be entitled to share in a recovery consisting
primarily of cash, as well as New Loral common stock that is
expected to result in a blended recovery of approximately 33%,
subject to significant decrease in the event claims materially
exceed current estimates.

- New Loral will emerge as a public company and will seek
listing on a major stock exchange.

- Existing common and preferred stock will be cancelled and no
distribution will be made to current shareholders.

Once filed, the Plan and Disclosure Statement will be available
via the court's website, at http://www.nysb.uscourts.gov/.
Please note that a PACER password is required to access
documents on the Bankruptcy Court's website.  Loral's bankruptcy
case number is 03-41710 (RDD).

Loral Space & Communications is a satellite communications
company. It owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
distribute broadband data, and provide access to Internet
services and other value-added communications services.

Loral also is a world-class leader in the design and manufacture
of satellites and satellite systems for commercial and
government applications including direct-to-home television,
broadband communications, wireless telephony, weather monitoring
and air traffic management.

CONTACT: Ms. Jeanette Clonan
                 or
         Mr. John McCarthy
         Phone: (212) 697-1105
         Web Site: http://www.loral.com/


MINT GUARANTEED: Members Appoint Liquidator
-------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                          and

      IN THE MATTER OF Mint Guaranteed Currencies Limited


The Members of Mint Guaranteed Currencies Limited, acting by
written consent without a meeting on October 13, 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Beverly Mathias be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

Ms. Mathias informs that:

- Creditors of Mint Guaranteed Currencies Limited, which is
being voluntarily wound up, are required, on or before October
29, 2004 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Beverly Mathias at c/o Argonaut Limited, Argonaut House, 5 Park
Road, Hamilton HM O9, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Members of Mint Guaranteed
Currencies Limited will be held at the offices of Argonaut
Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda,
on November 30, 2004 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Ms. Beverly Mathias
         c/o Argonaut Limited
         Argonaut House, 5 Park Road, Hamilton HM O9
         Bermuda



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

INEPAR: Cemar, Celpa Stake Sales Get Stockholder Approval
---------------------------------------------------------
Shareholders of Brazilian engineering group Inepar have given
their approval to the sale of non-controlling stakes in
distributors Cemat and Celpa, reports Business News Americas.

The plan, which saw its approval at a meeting on October 7, is
part of the company's restructuring to put a lid on its debt
that stood at approximately BRL289 million at the end of June.

Inepar had been planning to sell the stakes in the distributors
since 2000 but had to back down on it because of the 2001-2002
power crisis in Brazil, which spoiled investors' appetite for
power ventures.

The company is selling an 18.4% stake in center-west distributor
Cemat and a 33.7% share in Celpa, a distributor in northern Para
state.

Inepar plans to raise some BRL231 million (US$81mn) from the
sale of its stake in Cemat, Valor Economico newspaper reported,
without revealing how much the company wants to get from the
sale of its stake in Celpa

Brazil's Grupo Rede, which controls Cemat and Celpa, is seen as
one of the most potential buyers of Inepar's interests in the
distributors.


LIGHT: Strikes Debt Rescheduling Accord With Bank Creditors
-----------------------------------------------------------
Brazilian power distributor Light Servicos de Eletricidade
(E.LSE) signed an agreement in principle with 17 of its creditor
banks to lengthen by four years US$660 million in short-term
debt, reports Business News Americas.

The part of the company's US$1.5-billion total debt would be
reduced through a US$350 million capital injection from its
French controller Electricte de France (EdF).

The remaining US$480 million is made up of long-term debt items
with national development bank BNDES and the national treasury,
including Brady bonds that mature over the next 20 years.

According to Light finances superintendent Ricardo Levy, the
agreement includes a BRL740-million loan from BNDES, part of
which will be used to pay down US$132 million of the principal
with the rest being used to pay down interest.

EdF's capital injection writes off debts the company had with
its parent company when the latter assumed payment of financial
obligations in recent years. EdF's stake is expected to rise to
as much as 98% from the current 95%, Levy said.

In addition, creditors agreed to convert most of foreign
currency-linked debt to local currency debt. Once the agreement
is signed, the company's local currency debt will represent 75%
of the total debt, up from 25%.

The local currency debt will carry interest of 2 percentage
points over the interbank lending rate, while the foreign
currency debt will be charged at three percentage points over
Libor.

"Details are being finalized," he said.

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

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


SKY BRASIL: S&P Places Ups Ratings to Watch Positive
----------------------------------------------------
Standard & Poor's Rating Services placed its 'B-' global scale
foreign and local currency ratings on Sky Brasil Servicos Ltda.
(Sky) in CreditWatch with positive implications.

The CreditWatch listing follows the announcement on Oct. 11,
2004, that Sky and DIRECTV Brazil will be consolidating their
local direct-to-home (DTH) satellite TV platforms and reflects
Standard & Poor's expectation of stronger commitment--both
operational and financial--of DIRECTV to the merged entity.

The transaction is part of a more comprehensive set of
agreements between the DIRECTV Group Inc. and News Corporation
with Grupo Televisa, Globopar, and Liberty Media that will
result in the reorganization of the companies' DTH operations in
Latin America.

"The CreditWatch should be resolved upon confirmation of the
merger and the indication that Sky/DIRECTV Brasil will count on
financial support from DIRECTV Group to fund one-time expenses
related to the merger, and future growth," said Standard &
Poor's credit analyst Milena Zaniboni. "On the other hand, the
Brazilian operation is expected to show stronger results and
gradually become more financially independent, as it benefits
from significant synergies."

The combined company should also benefit from better negotiation
terms in programming and boxes acquisition due to the larger
scale of DIRECTV in the region. The CreditWatch outcome will
also depend on Standard & Poor's analyzing the combined
financial statements of the new entity, as financial information
on DIRECTV Brasil is not available.

"Assuming additional debt burden from DIRECTV will not be
relevant, Standard & Poor's expects to raise the ratings on Sky
by one notch to reflect its stronger business profile and
incentives for shareholder support," Ms. Zaniboni said.



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

TELECOM: Sells Comcel Stake for Undisclosed Amount
--------------------------------------------------
State-owned telecommunications company Telecom, which is being
liquidated, has struck a deal to sell its 4.3% stake in cellular
services company Comcel to America Movil, reports Portafolio.
America Movil, which already owns 95.7% of Comcel, is buying the
stake for an undisclosed sum. Before its liquidation in June
2003, Telecom valued its shares in Comcel at US$25 million.

The Colombian government decided to liquidate Telecom after it
chalked up losses of US$42.9 million in 2002. A new firm, called
Colombia Telecomunicaciones, has been created from the ashes of
the defunct Telecom.



=====================
E L   S A L V A D O R
=====================

BANCO MULTISECTORIAL: Fitch Affirms Ratings
-------------------------------------------
Fitch Ratings has affirmed El Salvador's Banco Multisectorial de
Inversiones' (BMI) ratings as follows:

--Long-term foreign currency 'BB+' (Outlook Negative);

--Short-term foreign currency 'B';

--Individual 'C' and support '5'.

BMI's ratings reflect its unique position in El Salvador's
financial system as one of the few providers of medium- and
long-term funds, its strong capital base, asset quality,
adequate profitability, market-oriented management, and
insulation from public-sector credit risk. The ratings are
limited by the bank's small size, its declining loan balances,
relatively weak economic environment, as indicated by El
Salvador's sub-investment-grade sovereign rating, and
significant concentrations given the reduced number of banks BMI
can lend to.

BMI is a limited purpose credit institution, established in 1994
to promote El Salvador's private-sector economic development. It
was spun off from the central bank's development lending
division and took over its credit portfolio. Risk of political
intervention is low as the bank's success has been a priority
for the national development program. The bank's congressional
charters and regulation by organic law and the superintendence
of the financial system also limit political interference.

CONTACT:  Akiko Kudo +1-212-908-0819, New York
          Gustavo Lopez +1-212-908-0853, New York
          Franklin Santarelli +58-212-286-3356, San Salvador

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



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

KAISER ALUMINUM: Reaches Pension Settlement With PBGC
-----------------------------------------------------
Kaiser Aluminum has executed a settlement agreement with the
Pension Benefit Guaranty Corporation (PBGC). The company and the
PBGC have agreed, among other things, that:

-- Kaiser will continue to sponsor specified pension plans for
hourly employees at plants in Los Angeles, Calif.; Tulsa, Okla.;
Sherman, Texas; and Bellwood, Va., and will satisfy the
estimated $4.4 million minimum funding standard for these plans;

-- The PBGC will have an allowed post-petition administrative
claim of $14 million, which is expected to be paid upon the
consummation of a plan of reorganization for the company or the
consummation of a plan for its subsidiary, Kaiser Alumina
Australia Corporation, whichever comes first;

-- The PBGC will have allowed pre-petition unsecured claims in
respect of the three Kaiser-sponsored pension plans that were
terminated in the amount of $616 million, which will be resolved
in plans of reorganization;

-- In respect of its total pre-petition unsecured claims, PBGC's
cash recovery from proceeds of Kaiser's sale of its interests in
the Alpart alumina refinery in Jamaica and the QAL alumina
refinery in Australia will be limited to 32% of the net proceeds
distributable to holders of the company's Senior Notes, Senior
Subordinated Notes, and the PBGC.

The agreement is subject to approval by the U.S. Bankruptcy
Court for the District of Delaware. The company expects shortly
to file a motion with the Court seeking approval of the
agreement.

Kaiser's Form 10-Q for the second quarter of 2004 contains
additional information related to pension matters.

Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of
fabricated aluminum products and owns interests in alumina and
primary aluminum assets.



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

AHMSA: No. 3 Furnace Returns to Production
------------------------------------------
Mexican steel maker Altos Hornos de Mexico SA (AHMSA.MX)
announced Friday that its spare No. 3 furnace is now back in
operation, reports Dow Jones Newswires. The debt-laden company
said it spent MXN20 million $1=MXN11.4475) on maintenance to
restart the furnace to meet growing demand for steel. The
operation of the third furnace will support its current program
to produce more than 3 million metric tons of liquid steel a
year, while allowing for maintenance to be done on its other two
furnaces.

Monclova, Mexico-based AHMSA, one of the country's biggest steel
producers, has been in default on US$1.8 billion in debt since
April 1999. Companies from Russia, the UK and other countries
have expressed interest in acquiring AHMSA in light of a
resurgence in the global steel industry.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.AHMSA.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


GRUPO ELEKTRA: Retires All Debt, S&P Withdraws Ratings
------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B+' local and
foreign currency corporate credit ratings on Mexico-based Grupo
Elektra S.A. de C.V. (Elektra).

"The ratings were withdrawn at the company's request following
the payment in second-quarter 2004 of the $275 million bond due
2008, which represented all of Elektra's debt rated by Standard
& Poor's," said Standard & Poor's credit analyst Federico Mora.


GRUPO MEXICO: Workers Go On Strike Over Payment Conflict
--------------------------------------------------------
Workers at Grupo Mexico's Cananea copper mine walked off the job
Friday, accusing the company of not paying them the equivalent
of 5% of its equity promised 15 years ago. The payment is
related to the privatization of Cananea and Grupo Mexico's other
major Mexican mine, La Caridad.

The National Mining, Metallurgical and Similar Workers Union
said Grupo Mexico is offering to make the payment at the value
the shares had 15 years ago, while the union is demanding
payment at the current value.

The strike comes at an inopportune time for Grupo Mexico, which
is also in contract negotiations with workers at its U.S. mining
unit Asarco and is hoping to get shareholder approval to merge
its Mexican mining operations with Southern Peru Copper Corp.,
of which Grupo Mexico owns 54 percent.

The union, which has among its members workers at other mining
and metals companies, said Friday it will seek support for the
strike from other mining chapters.


INNOVA: S&P Places Ratings On Watch Positive
--------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' global scale
foreign and local currency ratings on Innova S. de R.L. de C.V.
(Innova) on CreditWatch with positive implications.

The CreditWatch listing follows the announcement made on Oct.
11, 2004 of the upcoming closing of Galaxy Mexico's (dba DirecTV
Mexico) operations and the consequent change in Innova's (dba
Sky Mexico) competitive environment, as well as the future
restructuring of Innova's stockholder composition. These
developments will cause an intense marketing and promotion
effort by Innova to attract DirecTV Mexico's current
subscribers.

"The CreditWatch listing should be resolved upon a better
assessment of Innova's marketing and promotion strategy to
attract DirecTV Mexico's subscribers and the expenses associated
with such an effort," said Standard & Poor's credit analyst
Manuel Guerena.


MAXCOM TELECOMUNICACIONES: Revenue, EBITDA Gains Continue
---------------------------------------------------------
The number of lines in service at the end of 3Q04 increased 13%
to 154,968 lines, from 137,222 lines at the end of 3Q03, and 5%
when compared to 147,238 lines in service at the end of 2Q04.
Out of the total outstanding lines at the end of 3Q04, 11,320
lines, or 7% were from Wholesale customers, which compares to
6,920 lines, or 5% at the end of 3Q03, and 9,940 lines, or 7% at
the end of 2Q04.

During 3Q04 line construction was higher by almost three times
at 12,816 lines, from 3,513 constructed lines in the same period
of 2003; and by 69% when compared to 7,587 constructed lines
during 2Q04.

During 3Q04, 14,655 new lines were installed, 26% above the
11,650 lines installed during 3Q03. When compared to 2Q04, the
number of installations increased 12% from 13,105 lines. (1)

During 3Q04, the monthly churn rate was 2.0%, lower than the
2.6% monthly average churn during 3Q03. When compared to 2Q04,
churn rate increased from 1.9%. Voluntary churn in 3Q04 resulted
in the disconnection of 2,717 lines, a rate of 0.6%, which is
the same than rate registered in 2Q04 with 2,332 disconnected
lines. Involuntary churn resulted in the disconnection of 5,588
lines, a rate of 1.3%, which is higher than the 5,334
disconnected lines, or 1.3% during 2Q04.

CUSTOMERS:

Total customers grew 11% to 111,444 at the end of 3Q04, from
100,432 at the end of 3Q03, and 5% when compared to 106,447
customers as of the end of 2Q04.

The growth in number of customers by region was distributed as
follows: (i) in Mexico City customers increased by 9% from 3Q03
and 4% when compared to 2Q04; (ii) in Puebla customers grew 11%
from 3Q03 and 3% when compared to 2Q04; and, (iii) in Queretaro,
the number of customers increased 45% from 3Q03 and 50% when
compared to 2Q04.

The change in the number of customers by category was the
following: (i) business customers increased by 3% from 3Q03 and
1% when compared to 2Q04; and, (ii) residential customers
increased by 11% from 3Q03 and by 5% from 2Q04.

REVENUES:

Revenues for 3Q04 increased 12% to Ps$223.0 million, from
Ps$199.7 million reported in 3Q03. Voice revenues for 3Q04
increased 7% to Ps$181.1 million from Ps$169.1 million during
3Q03, driven by a 10% increase in voice lines together with a 1%
increase in ARPU. Data revenues for 3Q04 were Ps$11.5 million
and contributed 5% of total revenues; during 3Q03 data revenues
were Ps$6.1 million. Wholesale revenues for 3Q04 were Ps$30.4
million, a 24% increase from Ps$24.5 million in 3Q03.

Revenues for 3Q04 increased 7% to Ps$223.0 million, from
Ps$207.5 million reported in 2Q04. Voice revenues for 3Q04
increased 4% to Ps$181.1 million, from Ps$173.8 million during
2Q04. Data revenues in 3Q04 increased 30% to Ps$11.5 million
from Ps$8.8 million during 2Q04. During 3Q04, revenues from
Wholesale customers increased 22% to Ps$30.4 million, from
Ps$24.8 million in 2Q04.

COST OF NETWORK OPERATION:

Cost of Network Operation in 3Q04 was Ps$79.8 million, an 18%
increase when compared to Ps$67.7 million in 3Q03. Over the same
period, outbound traffic grew 24%, showing an improvement on a
cost per minute basis. The Ps$12.1 million increase in Cost of
Network Operation was generated by: (i) Ps$7.8 million, or 16%
increase in network operating services, mainly driven by Ps$3.2
million and Ps$2.4 million higher long distance and calling
party pays interconnection charges respectively, as traffic
increased and a higher number of lines were in service; Ps$1.9
million higher cost of circuits and ports; and, Ps$0.3 million
higher cost of other services; (ii) Ps$4.5 million, or 28%
increase in technical expenses basically as a result of higher
maintenance costs; (iii) Ps$1.5 million or 44% decrease in
installation expenses and cost of disconnected lines; and, (iv)
Ps$1.4 million related to the sale of telecommunications
equipment to one single customer under a lease of capacity
agreement (see "Maxcom Telecomunicaciones 4th Quarter 2003 and
full year 2003 results" released on April 16, 2004).

Cost of Network Operation increased 6% quarter-over-quarter when
compared to Ps$75.3 million in 2Q04. Network operating services
increased Ps$2.2 million or 4%, mainly driven by Ps$0.8 million
higher calling party pays charges and Ps$0.9 million higher long
distance reselling cost as a result of increased traffic, and,
Ps$0.6 million of higher leases of circuits. Technical expenses
increased Ps$0.9 million or 5%, and installation expenses and
cost of disconnected lines remained at Ps$1.9 million. When
compared cost per minute on a traffic-related cost basis, cost
per minute improved as outbound traffic increased 12%.

Gross margin at 64% in 3Q04 decreased from 66% reported in 3Q03
and remained at the same level that the one reported in 2Q04.

SG&A:

SG&A expenses were Ps$96.8 million in 3Q04, a 2% increase from
Ps$95.2 million in 3Q03. The increase was mainly driven by: (i)
higher salaries, wages and benefits of Ps$3.6 million; (ii)
higher consulting fees of Ps$3.6; and, (iii) higher advertising
of Ps$3.8 million. Higher expenses were partially offset by: (i)
lower bad debt reserve of Ps$3.5 million; (ii) lower sales
commissions of Ps$3.5 million, (iii) lower general and insurance
expenses of Ps$1.6 million; and, (iv) lower leases and
maintenance expenses of Ps$0.7 million.

SG&A expenses in 3Q04 increased 9%, from Ps$88.7 million in
2Q04. This variation was mainly driven by: (i) higher salaries,
wages and benefits of Ps$4.6 million; (ii) higher bad debt
reserve of Ps$3.7 million; (iii) higher consulting fees of
Ps$1.4 million; (iv) higher advertising expenses of Ps$1.4
million; and, (v) higher leases and maintenance of Ps$0.4
million. Higher expenses were partially offset by: (i) lower
sales commissions of Ps$2.5 million; and, (ii) lower general and
insurance expenses of Ps$1.0 million.

EBITDA:

EBITDA for 3Q04 increased 26% to Ps$46.3 million, from Ps$36.8
million reported in 3Q03. When compared to 2Q04, EBITDA grew 7%
from Ps$43.5 million.

EBITDA margin improved from 18% in 3Q03 to 21% in 2Q04, and
remained at 21% in 3Q04.

This is the 6th consecutive quarter that Maxcom reports positive
EBITDA. Cumulative EBITDA for the last four quarters was
Ps$180.7 million.

CAPITAL EXPENDITURES:

Capital Expenditures for 3Q04 were Ps$105.6 million, a three-
fold increase when compared to Ps$26.1 million in 3Q03, and a
69% increase when compared to Ps$62.4 million in 2Q04.

CASH POSITION:

Maxcom's cash position at the end of 3Q04 was Ps$41.6 million in
Cash and Cash Equivalents, compared to Ps$39.6 million at the
end of 3Q03. Cash and Cash Equivalents at the end of 2Q04 were
Ps$40.1 million.

RECENT DEVELOPMENTS:

On October 6, 2004, Maxcom announced the expiration of the
exchange offer for its Senior Notes due 2007; the exchange offer
closed on October 8, 2004. 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 have consented to such amendments.
As of the expiration date, Maxcom 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 represented 92% 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.

With the completion of this transaction, Maxcom's indebtedness
was substantially reduced by 71% to $52,825,668 from
$179,213,590.The Company also significantly improved its debt
profile by extending its maturity dates. The following tables
set forth Maxcom's cash and cash equivalents and capitalization
on a Pro Forma consolidated basis as of September 30, 2004 and
Maxcom's debt maturity dates, as adjusted to give effect to the
consummation of the exchange offer. Please refer to the Offering
Circular dated September 8, 2004, for further details on the
adjustments.

                             Actual              Pro Forma
                        Pesos     Dollars     Pesos     Dollars
                       Thousands of constant September 30, 2004
                         Pesos and thousands of U.S. dollars

     Long term debt:
    New Notes                                  412,126    36,118
    Old Notes         1,912,686   167,624      58,398     5,118
    13.75% Series B Senior Notes
     due 2007           132,249    11,590     132,249    11,590
    Warrants Cost, net   (1,754)     (154)     (1,754)     (154)
    Notes Payable        12,928     1,133      12,928     1,133
    Total debt        2,056,109   180,193     613,947    53,805
    Shareholders' equity
    Capital Stock and additional
     paid in capital  1,813,798   158,957   3,255,960   285,345
    Accumulated
      deficit        (1,717,136) (150,486) (1,717,136) (150,486)
       Total shareholders'
        equity          96,662     8,471   1,538,824   134,859
    Total
      capitalization 2,152,771   188,664   2,152,771   188,664


                           DEBT MATURITY DATES
                            (Thousands of US Dollars)


                              March-07 April-07 October-09 Total
Debt as of September 30, 2004
  13.75% Series B Senior Notes          11,590            11,590
  0/10% Senior Notes           167,624                   167,624
                    Total      167,624  11,590     -     179,214
Debt after Exchange Offer
  13.75% Series B Senior Notes          11,590            11,590
  0/10% Senior Notes             5,118                     5,118
  Senior Step-Up Notes                          36,118    36,118
                    Total        5,118  11,590  36,118    52,826

(1) In our reports for the 1st and 2nd quarters of 2004, we
     reported the number of lines installed including Wholesale
     lines, per our discussion on reporting methodology we
     should have reported installed lines without Wholesale (See
     "Maxcom Telecomunicaciones announces 3rd Quarter 2002
     Results" released on October 29, 2002). The number of
     installed lines without Wholesale, as well as the
     previously reported numbers are shown in the following
     table:

                    As
                    Reported   w/o     Reported as a reference
                    In the   Wholesale                      w/o
Lines Installed     period         Earnings  Reported  Wholesale
                                   Report

1st Quarter 2003    14,911    14,911    1Q04     15,591   14,911
2nd Quarter 2003    13,930    13,930    2Q04     15,220   13,930
3rd Quarter 2003    11,650    11,650
4th Quarter 2003     9,694     9,694    1Q04      9,694    9,694
1st Quarter 2004    10,029     9,789    2Q04     10,029    9,789
2nd Quarter 2004    16,285    13,105

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.

To see financial statements:
http://bankrupt.com/misc/MAXCOM_TELECOMUNICACIONES.htm



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

LANPERU: Aviation Authorities Lift Flight Suspension
----------------------------------------------------
LanPeru (NYSE:LFL) resumed its national and international
operations at 3 p.m. Friday as authorized by the aviation
authorities in Peru. LanPeru was required to temporarily suspend
its operations earlier Friday due to a judicial mandate. LanPeru
accepted the decision issued by a local judge in the city of
Arequipa, Peru, despite the fact that the company believes the
ruling was arbitrary and unjust.

But the civil aviation authorities and the Transport Ministry
later authorized it to resume flights to prevent a closedown of
the Andean nation's major air carrier.

LanPeru says it has 11 national flights and 11 international
flights a day, and has about 35% of the cargo market.

Chile's Lan owns a direct 49% of LanPeru, while another 21% is
owned by a Lan-controlled company. The rest is owned by a
company executive.

CONTACT: MSP Communications, Inc., Coral Springs, Fla.
         Misty Pinson, 954-341-2535
         mspcomm@bellsouth.net
             or
         LAN PERU Public Relations
         Monica Verastegui, 011-511-213-8384
         monica.verastegui@lanperu.com.pe



=============
U R U G U A Y
=============

PLUNA: British Firm Offers to Buy Varig's Stake
-----------------------------------------------
Ashmore Funds, the UK-based investment company, moves to beef-up
its Uruguayan investments with an offer to acquire a stake in
local carrier Pluna. Local daily El Pais reveals that the
investment house has offered to purchase Varig's share in Pluna
although the Brazilian air company has not indicated a desire to
dispose of its holdings.

Ashmore currently holds a stake in another Uruguayan airline,
flag carrier UAir. In 2003, Ashmore invested an estimated US$30
million in Uruguayan government securities.

Pluna averages more than 100 flights per week. Its fleet of
Boeing 737-200 Advanced and 767-200 connects the cities of
Asuncion, Buenos Aires, Madrid, Montevideo, Porto Alegre, Punta
del Este, Rˇo de Janeiro, San Paulo, and Santiago de Chile.




                            ***********


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

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