TCRLA_Public/041123.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, November 23, 2004, Vol. 5, Issue 232

                            Headlines


A N T I G U A   &   B A R B U D A

LIAT: St. Vincent PM Calls On Governments to Shell Out Funds


A R G E N T I N A

AEROVIP: IOVC Acquires Majority Position
C.M.S. S.R.L.: Enters Bankruptcy Following Court Ruling
COMPANIA GENERAL: Court Authorizes Bankruptcy Proceeding
FACHADAS INTEGRALES: Begins Liquidation Proceedings
FONDOLISTO S.A.C.I.F.M.: Initiates Bankruptcy Proceedings

GALUZ S.R.L.: Court OKs Voluntary Bankruptcy Motion
ODISSEY S.R.L.: Proceeds with Liquidation to Repay Debts
PETROBRAS ENERGIA: Fitch Comments On Merger
TECSEL S.A.: Debt Payments Halted, Prepares To Reorganize
TELECOM ARGENTINA: Consumer Agency Opposes Planned Changes

UBOLDO S.A.: Claims Verification Deadline Approaches
* ARGENTINA: Unlikely to Launch Debt Offering on Schedule


B E R M U D A

STUART BENSON LIMITED: Names Nicholas Hoskins as Liquidator


B R A Z I L

AES CORP.: Seeks to Redeem $170 Million of Debt Securities
CEMIG: Board Endorses 30-Year Strategic Plan
COPEL: Shares Rise on Planned Rate Increase


M E X I C O

HYLSAMEX: To Spend $6.8M In US Plant Construction


P E R U

INTERBANK: Fitch Upgrades Support Rating After Sovereign Action
SPCC: Fitch Upgrades LTFC Rating To 'BB'
TDP: Fitch Raises LTFC Rating To 'BB'
* IMF Executive Board Completes Review on Peru


     - - - - - - - - - -

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

LIAT: St. Vincent PM Calls On Governments to Shell Out Funds
------------------------------------------------------------
Troubled airline LIAT is yet to receive the full amount of the
bailout package pledged by four Caribbean governments. In July,
four countries - Antigua, St. Vincent, Barbados and Trinidad -
agreed on an EC$21.8-million (US$8.2 million) bailout package to
help rescue the airline. Trinidad agreed to grant a five-year,
EC$17 million (US$6.4 million) no-interest loan to help finance
the package.

Despite the December deadline for LIAT to use the money for
restructuring its operations, only EC$5.7 million (US$2.1
million) from Antigua has been disbursed. The countries have
been unable to finance the rest, according to St. Vincent Prime
Minister Ralph Gonsalves.

In this light, he is calling on the government to cough up the
money.

"If you have a community, you must have communication," he
added. "And a critical form of communication is air transport."

LIAT has received EC$23 million (US$ 8.5 million) in previous
bailout funds.


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

AEROVIP: IOVC Acquires Majority Position
----------------------------------------
Investment fund IOVC, headed by Raul Arballo, has agreed to
acquire a controlling position in Argentina's troubled airline
Aerovip. Sebastian Agote, majority shareholder in the airline
with 80%, informed that the share ownership the new partner will
acquire has not been agreed on yet, but it is a fact that they
will take the majority of the shares, while he will continue to
head the company. Mr. Agote will, in this way, reassume the
position he had left to Eduardo Aulet a month ago.

On Monday, Mr. Arballo met with Aerovip's employees and said -
among other things- that the company would resume flights next
weekend. Mr. Agote revealed that the new partners will make a
contribution of some US$10 million. Aerovip stopped flights
approximately 20 days ago.


C.M.S. S.R.L.: Enters Bankruptcy Following Court Ruling
-------------------------------------------------------
Buenos Aires-based C.M.S. S.R.L. bankruptcy protection is now
official after Court No. 18 of the city's civil and commercial
tribunal, with the assistance of Clerk No. 36, ordered the
company's liquidation.

The bankruptcy 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. Walter Calleja as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on March 17 next year.

CONTACT: C.M.S. S.R.L.
         Maipu 474
         Buenos Aires

         Mr. Walter Calleja, Trustee
         Lambare 1140
         Buenos Aires


COMPANIA GENERAL: Court Authorizes Bankruptcy Proceeding
--------------------------------------------------------
Court No. 18 of Buenos Aires' civil and commercial tribunal
declared Compania General de Servicios S.R.L. bankrupt after the
company defaulted on its debt payments. The order effectively
places the company's affairs as well as its assets under the
control of court-appointed trustee Ruben Oscar Conti.

As trustee, Mr. Conti is tasked with verifying the authenticity
of claims presented by the company's creditors. The verification
phase is ongoing until February 11, 2005.

Infobae reports that the city's Clerk No. 36 assists the court
on this case that will end with the disposal of the company's
assets in favor of its creditors.

CONTACT: Compania General de Servicios S.R.L.
         Avda Santa Fe 1460
         Buenos Aires

         Mr. Ruben Oscar Conti, Trustee
         Avda Corrientes 1967
         Buenos Aires


FACHADAS INTEGRALES: Begins Liquidation Proceedings
---------------------------------------------------
Fachadas Integrales S.R.L. of Buenos Aires will start
liquidating its assets after Court No. 19 of the city's civil
and commercial tribunal declared the company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee Alfredo Donatti.

The trustee will review claims forwarded by the company's
creditors until December 13. Once all claims have been verified,
the trustee will submit the individual reports for court
approval on February 24, 2005. The general report submission
follows on April 11, 2004.

Clerk No. 38 assists the court on this case.

CONTACT: Fachadas Integrales S.R.L.
         Aguilar 2547
         Buenos Aires

         Mr. Alfredo Donatti, Trustee
         Montevideo 31
         Buenos Aires


FONDOLISTO S.A.C.I.F.M.: Initiates Bankruptcy Proceedings
---------------------------------------------------------
Court no. 15 of Buenos Aires' civil and commercial tribunal
declared Fondolisto S.A.C.I.F.M. "Quiebra," reports Infobae.

Ms. Marta Susana Serra, who has been appointed as trustee, will
verify creditors' claims until February 4, 2005 and then prepare
the individual reports based on the results of the verification
process.

Clerk No. 29 assists the court on the case that will close with
the liquidation of the Company's assets to repay creditors.

CONTACT: Ms. Marta Susana Serra, Trustee
         Donato Alvarez 984
         Buenos Aires


GALUZ S.R.L.: Court OKs Voluntary Bankruptcy Motion
---------------------------------------------------
Judge Tevez, working for Court no. 13 of Buenos Aires' civil and
commercial tribunal declared Galuz S.R.L. bankrupt, says La
Nacion. The Company asked for bankruptcy protection after
defaulting on its debt payments since March of 2003.

Dr. Basso, clerk no. 25, assists the court on the case that will
conclude with the liquidation of the Company's assets.

CONTACT: Galuz S.R.L.
         Montevideo 471
         Buenos Aires


ODISSEY S.R.L.: Proceeds with Liquidation to Repay Debts
--------------------------------------------------------
Court no. 3 of Buenos Aires' civil and commercial tribunal,
under Judge Herrera, approved Odissey S.R.L.'s request for
voluntary liquidation. La Nacion Reports that the request was
made after the Company defaulted on debts payments since March
2003.

Dr. Gutierrez Huertas, the city's clerk no. 6, assists the court
on this case.

CONTACT: Odissey S.R.L.
         Montevideo 471
         Buenos Aires


PETROBRAS ENERGIA: Fitch Comments On Merger
-------------------------------------------
Fitch Ratings views the re-organization of Petroleo Brasileiro
S.A.'s (Petrobras) assets in Argentina, in which Petrobras
Energia S.A. (PE) will absorb certain assets in exchange for
direct shares in PE as slightly positive for PE. The
international local and foreign currency ratings of PE remain
unchanged at 'B', and its national rating remains unchanged at
'A+ (arg)'. The Rating Outlook for both companies is Stable.

Under the reorganization, PE will assume Petrobras' 100% owned
oil producing subsidiaries, Petrobras Argentina S.A. and
Petrolera Santa Fe S.R.L., and its distribution subsidiary Eg3
S. A. In return of those assets, Petrobras will receive 230
million shares of PE, increasing its total equity interest in PE
to 67.3% from 57.6%. The merger will be effective since January
1, 2005 and it is subject to the approval of the shareholders
meeting of PE. The transaction is expected to be completed in
the second quarter of 2005.

As a result of the merger, PE will increase its oil and gas
production by 11% and its reserves volumes by 9%. Also, the
company will almost double its refining capacity to 67,000
barrels per day from its current level of 36,000 bpd and will
incorporate a network of approximately 700 retail service
stations. The additional refining capacity will increase PE's
natural hedge, since more than 90% of its daily oil production
in Argentina could be utilized internally. The merger is
expected to have a positive impact on PE's cash flow, with a
marginal impact in terms of financial debt.

Notwithstanding these improvements, the company's credit profile
continues to reflect fallout from Argentina's sovereign crisis.
The ongoing sovereign default, the shift in government policies
away from market-oriented frameworks, and the government's
continued lack of addressing systemic sector problems remain as
constraints, primarily on the international rating. At this
time, the likelihood of further government interference is
uncertain, although these risks could ease should the Argentine
government reach an agreement with creditors and the
International Monetary Fund (IMF).

PE is one of the most vertically integrated energy conglomerates
in Latin America with operations encompassing virtually all
segments of the energy value chain. Core business activities, in
order of importance, include oil and gas exploration and
production; refining and marketing; petrochemicals; and
electricity. PE is controlled by Petrobras Energia
Participaciones S.A. (Participaciones), a holding company
controlled by Brazil's national oil company, Petrobras. PE
constitutes Participaciones' sole operating asset. PE is
consolidated as a Petrobras subsidiary, and its obligations are
nonrecourse to the Brazilian parent. Fitch rates Petrobras'
senior unsecured foreign currency obligations 'BB-' with a
Stable Rating Outlook.


TECSEL S.A.: Debt Payments Halted, Prepares To Reorganize
---------------------------------------------------------
Judge Braga, serving for Court no. 22 of Buenos Aires' civil and
commercial tribunal, is now analyzing whether to grant Tecsel
S.A. approval for its petition to reorganize.

La Nacion reports that the Company asked for reorganization
after defaulting on its debt obligations since November 11 this
year.

Dr. Julianelli, the city's Clerk no. 44, assists the court on
the Company's case.

CONTACT: Tecsel S.A.
         Labarden 145
         Buenos Aires


TELECOM ARGENTINA: Consumer Agency Opposes Planned Changes
----------------------------------------------------------
Argentina's consumer advocacy agency issued an injunction
banning fixed-line carrier Telecom Argentina (TEO) from
initiating planned changes in its high-speed Internet service,
reports Dow Jones Newswires.

The move came in response to Telecom Argentina's earlier
announcement that it would double the transmission speed for its
clients. The company also said it has eliminated its old flat-
rate system, which according to the Undersecretary for Defense
of the Consumer, would mean that starting June next year,
clients would pay ARS15 plus value-added tax for each gigabyte
they used over an assigned limit.

"The aim of the company is to apply these changes to its entire
network of clients, in a unilateral form and without the consent
or acceptance from (the clients)," the agency said in a
statement

Agency officials also expressed doubts over Telecom Argentina's
transmission-doubling plan.

"Not even 'average' speeds can be assured for users" because
results will vary according to network traffic and the
capabilities of individual computers, the statement added.


UBOLDO S.A.: Claims Verification Deadline Approaches
----------------------------------------------------
Mr. Orlando Omar Vegega, the trustee supervising the liquidation
of Uboldo S.A., will close the verification of creditors claims
on Thursday, November 25, 2005.

Failure to submit proof of claims within the verification period
will mean disqualification from the post liquidation
distributions that will be made.

Court no. 11 of Buenos Aires' civil and commercial tribunal
handles this case with assistance from the city's clerk no. 21.

CONTACT: Mr. Orlando Omar Vegega, Trustee
         Aguirre 666
         Buenos Aires


* ARGENTINA: Unlikely to Launch Debt Offering on Schedule
---------------------------------------------------------
Argentina is likely to miss its Nov. 29 deadline to start
restructuring $100 billion in defaulted debt, Bloomberg reports,
citing the Bank of New York Co. In a letter to Argentina's
Finance Secretary Guillermo Nielsen, the BNY, which is serving
as exchange agent for the transaction, said the country had
changed the structure of the exchange repeatedly, making it
impossible to set up mechanisms for the swap by the scheduled
start date.

"It has become evident to BNY that we have passed the juncture
at which a November 29th launch date is possible," the letter
said.

The BNY's withdrawal could mean a delay in Argentina's bid to
restructure its debt and regain access to international credit
markets.

The disclosure comes after the economy ministry said it got word
Thursday from the Italian regulatory agency, known as Consob,
that it did not foresee approval of the offering documents in
that country until some time in the second half of December.

There was no explanation given for that delay and no mention was
made of the government's expectations for approval by the U.S.
Securities and Exchange Commission, which was the first foreign
regulator to receive Argentina's final offering documents on
Nov. 1.



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


STUART BENSON LIMITED: Names Nicholas Hoskins as Liquidator
-----------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                            and

             IN THE MATTER OF Stuart Benson Limited

At a Special General Meeting of the Members of Stuart Benson
Limited, duly convened and held at the Offices of the Company,
Hamilton, Bermuda, on November 19, 2004 the following
Resolutions were passed:

a) that the Company be wound up voluntarily pursuant to the
provisions of The Companies Act, 1981; and

b) that Nicholas Hoskins be appointed Liquidator for the
purposes of such winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- Creditors of Stuart Benson Limited, which is being voluntarily
wound up, are required, on or before December 15, 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 attorneys (if any) to the
Liquidator of the said Company at Wakefield Quin, Chancery Hall,
52 Reid Street, Hamilton, Bermuda and if so required by notice
in writing from the said Liquidator, and personally or by their
attorneys, 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 Stuart Benson
Limited will be held at the offices of Wakefield Quin, Chancery
Hall, 52 Reid Street, Hamilton, Bermuda on December 22, 2004 at
11:00 a.m., or soon as possible thereafter, for the purposes of:
having an account laid before them showing the manner in which
the winding-up has been conducted and how the property of the
Company has been disposed of and of hearing any explanation that
may be given by the Liquidator; determining by Resolution the
manner in which the books, accounts and documents of the Company
and of the Liquidator thereof, shall be disposed of; and by
Resolution dissolving the Company.

CONTACT: Mr. Nicholas Hoskins, Liquidator
         Chancery Hall
         52 Reid Street
         Hamilton, Bermuda


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

AES CORP.: Seeks to Redeem $170 Million of Debt Securities
----------------------------------------------------------
The AES Corporation (NYSE:AES) announced Friday it has called
for redemption $331.4 million aggregate principal amount of its
outstanding debt securities, including all outstanding 10%
Senior Secured Notes due 2005 ($152.6 million aggregate
principal amount), all outstanding 8 3/8% Senior Subordinated
Notes due 2007 ($113.3 million aggregate principal amount) and a
portion of its 8 1/2% Senior Subordinated Notes due 2007 ($65.5
million aggregate principal amount).

"With this redemption, we have achieved our 2004 goal of paying
down $800 million of debt. This is an important milestone in
AES's financial plan as we continue to strengthen our capital
structure and improve our credit quality," said Barry Sharp,
Executive Vice President and Chief Financial Officer.

The 10% Senior Secured Notes due 2005 and 8 3/8% Senior
Subordinated Notes due 2007 will be redeemed at par, plus
accrued and unpaid interest to the redemption date. The 8 1/2%
Senior Subordinated Notes due 2007 to be redeemed will be
selected by lot and will be redeemed at a redemption price of
101.417% of the principal amount thereof, plus accrued and
unpaid interest to the redemption date. The redemption date for
all such Notes is December 20, 2004. The redemption of these
Notes is being made pursuant to the optional redemption
provisions under the respective indentures.

AES is a leading global power company, with 2003 revenues of
$8.4 billion. AES operates in 27 countries, generating 44,000
megawatts of electricity through 111 power facilities and
delivers electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

CONTACT: AES Corporation
         Media Contact:
         Mr. Robin Pence
         Phone: 703-682-6552
                or
         Investor Inquiries:
         Mr. Scott Cunningham
         Phone: 703-682-6336

         Web Site: http://media@aes.com/


CEMIG: Board Endorses 30-Year Strategic Plan
--------------------------------------------
The meeting of the Board of Directors of Cemig held at the
Company's head office November 19 approved the Strategic
Guidelines Master Plan that will orient the company's business
for the next 30 years.

The Strategic Plan is oriented by the principles of secure
sustainable growth and addition of value, and provides for
expansion of Cemig's generation capacity and its transmission
and distribution networks. To ensure that growth is sustainable,
the plan imposes very conservative indebtedness limits.

Another highlight of the meeting was the new dividend policy,
based on 50% payout of distributable net profit, with
extraordinary dividends whenever there is free cash available.

The Plan also includes a solution for the issue of the credits
under the CRC (Results Compensation) Account. Under the solution
adopted, the repayments due to Cemig will be made by means of
Cemig retaining dividends payable to the State of Minas Gerais.
Cemig and the State are finalizing discussions of the fourth
amendment to the contract for concession of the CRC credits.

The matters requiring approval by either the Legislative
Assembly of the State of Minas Gerais or the Brazilian
electricity regulator (Aneel) will be duly submitted to these
two bodies.

CONTACT: Companhia Energetica de Minas Gerais - CEMIG
         Av.Barbacena 1200
         Santo Agostinho - CEP 30190-131


COPEL: Shares Rise on Planned Rate Increase
-------------------------------------------
Shares of Cia. Paranaense de Energia (COPEL, Brazil's second-
largest combined power generator and distributor, rose to a
nine-month high Friday after it revealed plans to raise rates
before year-end. Bloomberg reports that Copel's shares soared
7.1% to close at BRL12 on the Sao Paulo stock exchange, its
highest close since Jan. 28.

Chief Executive Paulo Pimentel disclosed that the utility,
seeking to boost profits, will boost rates 14.43% by ending
discounts given to its customers. In addition, the company also
plans to start adjusting its rates by the full amount authorized
by the regulator Aneel starting next year.

"If Copel ends up implementing such rate increase, it will boost
its revenue and reduce the risk perception for the company,"
said Pedro Batista, an equity analyst for Rio de Janeiro- based
Banco Pactual SA.

Batista has a ``buy'' rating for the stock.

CONTACT: Companhia Paranaense de Energia - Copel
         Investor Relations Department
         Mr. Ricardo Portugal
         (55-41) 331-4311

         Mr. Alves Solange Maueler Gomide
         (55-41) 331-4359

         E-Mail: ri@copel.com
         Web Site: www.copel.com



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

HYLSAMEX: To Spend $6.8M In US Plant Construction
-------------------------------------------------
Mexican iron and steel company Hylsamex (BMV: HLYSAMXB) will
invest US$6.8 million in the construction of its first
processing plant in the U.S., reports Business News Americas.
The plant, which will be sited in Shelbyville, Indiana, is
expected to begin operations in August 2005 and generate US$40
million worth of sales annually.

It will produce approximately 1.2M sq. m. of insulated metal
paneling every year, which is principally used in the
construction of cold-storage rooms.

Mexican conglomerate Alfa, Hylsamex's controller, is in the
process of splitting its shares in the steel company, which
posted net profits of US$119 million in the third quarter of
2004, turning round a US$24-million net loss in the same period
last year.

CONTACT:  Othon Diaz Del Guante
          (52-81) 8865-1240
          E-mail: odiaz@hylsamex.com.mx

          Ismael De La Garza
          (52-81) 8865-1224
          E-mail: idelagarza@hylsamex.com.mx



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

INTERBANK: Fitch Upgrades Support Rating After Sovereign Action
---------------------------------------------------------------
Fitch Ratings has upgraded the support rating of Peruvian bank
Interbank to '3' from '4' and affirmed the bank's remaining
ratings as follows:

--Long-term foreign currency 'BB-';

--Short-term foreign currency 'B';

--Rating Outlook Positive;

--Long-term local currency 'BB-';

--Short-term local currency 'B';

--Individual 'D'.

The improved support ratings follow the upgrade of Peru's
foreign currency rating to 'BB' from 'BB-'. In Fitch's view,
considering the stronger creditworthiness of the sovereign,
there is improved capacity to support the bank. Therefore, Fitch
believes there is a moderate probability of support, were it
ever needed. The Peruvian authorities have a vested interest in
supporting Interbank, given its importance to the system.


SPCC: Fitch Upgrades LTFC Rating To 'BB'
----------------------------------------
Fitch Ratings has upgraded the long-term foreign currency rating
of Southern Peru Copper Corporation (SPCC) to 'BB' from 'BB-'.
The Rating Outlook is Stable.

The rating action follows the upgrade of Fitch's sovereign
rating of Peru and country ceiling to 'BB' from 'BB-', with a
Stable Rating Outlook, which reflects the recent passage of
pension reform and sustained robust macroeconomic and fiscal
performance. Peru's GDP growth is forecast to remain solid at
4.5% in 2004, following growth above 4% in the prior two years.
Both SPCC and TDP remain constrained by Peru's country ceiling
at 'BB'.

SPCC's 'BB' foreign currency rating is supported by the
company's competitive cost structure and favorable market
position as a leading copper producer and exporter. As a
relatively low-cost producer, SPCC is able to remain competitive
during the troughs in the price cycle. SPCC is planning to fund
an upcoming $300 million modernization project for its Ilo
copper smelter primarily with available cash balances of over
US$400 million as of Sept. 30, 2004. The three-year project aims
to bring the company's Ilo smelter operations into compliance
with the established environmental standards by capturing no
less the 92% of sulfur dioxide emissions.

Fitch understands that the pending acquisition of affiliate
company Minera Mexico S.A. de C.V. (Minera Mexico) by SPCC will
likely involve a cashless stock-for-stock transaction. In the
event the proposed transaction was not cashless and Minera
Mexico's debt is rebalanced between it and SPCC, Fitch would not
expect the underlying credit quality (local currency rating) of
SPCC to deteriorate to a level below the foreign currency rating
of Peru.

SPCC is one of the world's largest private-sector copper
producers and exporters; approximately 95% of the company's
production primarily goes to the U.S. and Europe. SPCC's
operations are located in southern Peru and consist of two
large-scale, open-pit, copper-mining units, Toquepala and
Cuajone, along with integrated smelting and refining facilities
in the port town of Ilo. SPCC produced 375,000 tons of copper in
2003 and generated revenues of nearly US$800 million. The
company is owned by Grupo Mexico (54%), Phelps Dodge (14%),
Cerro Trading Co. (14%), and public stockholders (18%).


TDP: Fitch Raises LTFC Rating To 'BB'
-------------------------------------
Fitch Ratings raised the long-term foreign currency rating of
Telefonica del Peru, S.A.A. (TDP) to 'BB' from 'BB-'. The Rating
Outlook is Stable.

The rating action follows the upgrade of Fitch's sovereign
rating of Peru and country ceiling to 'BB' from 'BB-', with a
Stable Rating Outlook, which reflects the recent passage of
pension reform and sustained robust macroeconomic and fiscal
performance. Peru's GDP growth is forecast to remain solid at
4.5% in 2004, following growth above 4% in the prior two years.
Both SPCC and TDP remain constrained by Peru's country ceiling
at 'BB'.

TDP's 'BB' foreign currency rating is based on the company's
solid business position as the largest Peruvian
telecommunications, diversified revenue stream from its various
business segments, healthy cash flow generation, relatively low
capital expenditure needs, and a strong financial profile. TDP's
existing local currency rating of 'BBB+' remains unchanged.

TDP's local-service business, which accounts for more than 40%
of consolidated revenues, provides the company with a relatively
stable source of cash flow. TDP currently has a 98% market share
in the local service business. TDP's financial profile is
expected to remain consistent with the rating category despite
heightened competition and lower long distance and local service
tariffs due to recent debt reductions and solid free cash flow
generation of over $200 million annually that provides the
company with a degree of financial flexibility. Following debt
reduction of over 50% over the past three years, EBITDA/interest
expense is strong at 14.1 times (x), while debt/EBITDA is
currently under 1.0 times (x).

TDP generated $1.0 billion of revenues and $478 million of
EBITDA during 2003. The company participates in several
segments, including fixed local service (43% of revenues during
the first nine months of 2004), public telephony (20%), domestic
and international long distance (9%), cable TV (10%), and
business communications (8%), among other segments (10%). The
company is 97% owned by Telefonica S.A of Spain (TEF).


* IMF Executive Board Completes Review on Peru
----------------------------------------------
The Executive Board of the International Monetary Fund today
completed the first review of Peru's economic performance under
a 26-month Stand-By Arrangement originally approved on June 9,
2004. The Board also approved the modification of a structural
performance criterion and a waiver for the nonobservance of a
performance criterion.

The completion of the review makes available for drawing a total
equivalent to SDR 126.06 million (about US$191.2 million), but
the Peruvian authorities intend to continue treating the
arrangement as precautionary.

Following the Executive Board discussion, Agustín Carstens,
Deputy Managing Director and Acting Chair, said:

"The Peruvian economy continues to perform well. Economic
activity is robust, inflation remains low, and the external
position is strong. The outlook for next year and the medium
term is positive, as prudent macroeconomic policies and
structural reforms are expected to continue to be implemented.
Peru has built important buffers to mitigate vulnerabilities,
including a comfortable level of international reserves and a
well-capitalized banking system. The national consensus on
prudent policies and reform needs to be preserved in order to
further reduce the vulnerabilities associated with Peru's public
debt and financial dollarization, and thereby help set the basis
for Peru's strategy for exiting from Fund-financial support.

"Preserving macroeconomic stability and promoting poverty
reduction continue to be co-objectives of the authorities. The
2004 fiscal target is well within reach and the draft 2005
budget aims at further fiscal consolidation. Since wage
pressures are expected to remain strong in the months ahead, it
will be important to prepare contingency measures to ensure
compliance with the 2005 fiscal targets.

"The central bank remains committed to keeping inflation low.
Allowing the exchange rate to move more freely is important,
among other things, to limit the costs of sterilized
intervention and avoid the risks associated with one way bets to
capital inflows.

"Several growth-enhancing reforms are under way, and the
authorities are committed to addressing the delays registered in
some areas of the structural reform agenda. The authorities'
focus has been on awarding infrastructure transportation in
concession to the private sector and reforming the preferential
public pension regime. The planned establishment of a commercial
court by end-2004 will help enhance the business climate. In
addition, private sector investment is expected to be boosted
with the awarding of two major roads in concession by end-April
2005. Other important structural areas in which progress has
been made include completing a census of government employees
and pensioners and taking the first step toward reducing labor
costs by eliminating the special payroll tax by year-end," Mr.
Carstens said.

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs: 202-623-7300 - Fax: 202-623-6278
          Media Relations: 202-623-7100 - Fax: 202-623-6772



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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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