TCRLA_Public/041227.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, December 27, 2004, Vol. 5, Issue 255

                            Headlines


A R G E N T I N A

ALBIZZATE S.A.: Court Ordered Liquidation Begins
ARACUA S.A.: Liquidates Assets to Pay Debts
BOEING S.A.: Seeks Court Authority to Reorganize
CORBAMIL S.A.: Court Rules for Liquidation
CRESUD: Convertible Notes Holder Exchanges Debt for Equity

DISTRIBUIDORA SAN CLEMENTE: Begins Liquidation
EDEMSA: Sale Delayed Until March 2005
GATICUER S.A.: Court Designates Trustee For Bankruptcy
GATILAR S.A.: Enters Bankruptcy on Court Orders
GATIPRINT S.A.: Asset Liquidation Required to Pay Debts

GUGLIO S.A.: Bankruptcy Initiated by Court Order
HORIZONTE AZUL: Court Appoints Trustee for Reorganization
PETROBRAS ENERGIA: Reports November Oil, Gas Production


B E R M U D A

BANK OF BERMUDA: Members Decide to Wind-Up
GLOBAL ASSET: Voluntarily Winds Up
LORAL SPACE: EchoStar Contract Subject to Court Approval
MUTUAL TRADE: Members Opt to Wind-Up
NEW STAR CONVERTIBLE: Sole Member Resolves to Wind-Up


B R A Z I L

AMBEV: Fitch Upgrades Foreign, Local Currency Ratings
BANCO BRADESCO: Inks Credit Agreement With Parana Banco
BRASKEM: Board Authorizes BRL170 Mln Interest Payment
NET SERVICOS: S&P Releases Report on Ratings
SADIA: Acquires So Frango Produtos Alimenticios Ltda

SADIA: Board OKs Interest on Equity Payment to Shareholders


C H I L E

EMBONOR: S&P Details Ratings Review
ENAMI: Reconciles Debts With Ventanas Transfer


J A M A I C A

NCB JAMAICA: Net Profit Jumps 15% in 3Q04, Assets Up YoY
NCB JAMAICA: Parent Company Woes Won't Impact Operations


M E X I C O

TRICO MARINE: LatAm Units Not Affected by Bankruptcy Filing
TV AZTECA: Prepays $69M on $129M, '05 Bond


T R I N I D A D   &   T O B A G O

NBN: Government Deems Closure Best After a Series of Hardships


     - - - - - - - - - -

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

ALBIZZATE S.A.: Court Ordered Liquidation Begins
------------------------------------------------
Buenos Aires-based company Albizzate S.A. has been declared
bankrupt by the city's Court No. 7. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee, Roberto Leonardo Sapollnik. Clerk No. 14
assists the court on this case.

CONTACT: Mr. Roberto Leonardo Sapollnik, Trustee
         Parana 851
         Buenos Aires


ARACUA S.A.: Liquidates Assets to Pay Debts
-------------------------------------------
Argentina-based Aracua S.A. will begin liquidating its assets
following the pronouncement of the city's Court No. 7 that the
company is bankrupt, reports Infobae.

The bankruptcy ruling places the company under the supervision
of court-appointed trustee, Luciano Arturo Melegari.

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

CONTACT: Mr. Luciano Arturo Melegari
         Bartolome Mitre 1131
         Buenos Aires


BOEING S.A.: Seeks Court Authority to Reorganize
------------------------------------------------
Boeing S.A. filed a "Concurso Preventivo" or a motion for
reorganization, reports Infobae. Ms. Lea Beatriz Aljanati will
oversee the reorganization proceedings as the court-appointed
Trustee. She will verify creditors' claims until March 31, 2005.
The Company's case is pending before Court No. 18, assisted by
Clerk No. 36.

CONTACT: Ms. Lea Beatriz Aljanati, Trustee
         Avda Honorio Pueyrredon 1576
         Buenos Aires


CORBAMIL S.A.: Court Rules for Liquidation
------------------------------------------
Buenos Aires Court No. 7 ordered the liquidation of Corbamil
S.A. after the company defaulted on its obligations, Infobae
reveals. The liquidation pronouncement will effectively place
the company's affairs as well as its assets under the control of
Mr. Carlos Alberto Llorca, the court-appointed trustee.

Clerk No. 14 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Mr. Carlos Alberto Llorca, Trustee
         Carlos Pellegrini 385
         Buenos Aires


CRESUD: Convertible Notes Holder Exchanges Debt for Equity
----------------------------------------------------------
Cresud S.A.C.I.F. y A. (Nasdaq: CRESY - News; BCBA: CRES), a
leading Argentine producer of agricultural products, informed
the Bolsa de Comercio de Buenos Aires and the Comision Nacional
de Valores that a holder of Company's Convertible Notes
exercised its conversion rights. Hence, the financial
indebtedness of the Company shall be reduced in US$ 7,646 and an
increase of 15,057 ordinary shares face value pesos 1 (V$N 1)
each was made. The conversion was performed according to terms
and conditions established in the prospectus of issuance at the
conversion rate of 1.96928 shares, face value pesos 1 per
Convertible Note of face value US$ 1. As a result of that
conversion the amount of shares of the Company goes from
152,773,227 to 152,788,284. On the other hand, the amount of
registered Convertible Notes is US$ 42,239,837.

CONTACT: Mr. Gabriel Blasi - CFO
         Phone: +011-54-11-4323-7449
         e-mail: finanzas@cresud.com.ar
         Web Site: http://www.cresud.com.ar


DISTRIBUIDORA SAN CLEMENTE: Begins Liquidation
----------------------------------------------
Distribuidora San Clemente S.A. of Buenos Aires will begin
liquidating its assets after Court No. 1 declared the company
bankrupt. Infobae reveals that the bankruptcy process will
commence under the supervision of court-appointed trustee, Noemi
Z Vivares. The trustee will review claims forwarded by the
company's creditors until March 10, 2005. Clerk No. 1 assists
the court on this case.

CONTACT: Ms. Noemi Z vivares, Trustee
         Avda Cordoba 2626
         Buenos Aires


EDEMSA: Sale Delayed Until March 2005
-------------------------------------
EDFI, the international unit of French power company Electricite
de France SA (EdF), is delaying completing the sale of its stake
in the controlling shareholder of Argentina's Edemsa SA to the
local Iadesa consortium until March 2005. In July, EDFI agreed
to sell an 88% stake in the Sodemsa consortium that owns 51% of
Mendoza power distribution company Edemsa. Iadesa already owns
the other 12% of Sodemsa. The sale was expected to close by
October, but it has been delayed due to administrative reasons.

"The delay has to do with requirements asked of the buyer by the
province (Mendoza)," EdF spokeswoman Valeria Abadi said.

Ms. Abadi wouldn't elaborate on the cause of the delay, although
newspaper Clarin reported Wednesday that the setback resulted
from delays the buyer had encountered trying to restructure some
US$115 million in Sodemsa debt.

In addition to assuming Sodemsa's debt, the prospective buyer
had also reportedly agreed to pay US$50 million in cash for
EdF's shares, a knockdown price compared to the US$237 million
that EDFI paid in a 1998 privatization.

Of the Edemsa's total US$115-million debt, US$80 million is with
the banks Regional de Cuyo, Galicia, European bank for Latin
America BEAL, and French banks Societe Generale, Credit Agricole
and Credit Lyonnais. English investment company Ashmore holds
the rest.


GATICUER S.A.: Court Designates Trustee For Bankruptcy
------------------------------------------------------
Buenos Aires accountant Mr. Manuel Alberto Cibeira was assigned
trustee for the bankruptcy of local company Gaticuer S.A.,
relates Infobae. The city's Court No. 7, assisted by Clerk No.
14, is handling the Company's case.

CONTACT: Mr. Manuel Alberto Cibeira, Trustee
         Avda Cordoba 1247
         Buenos Aires


GATILAR S.A.: Enters Bankruptcy on Court Orders
-----------------------------------------------
Gatilar S.A. will enter bankruptcy protection after Buenos Aires
Court No. 7, with the assistance of Clerk No. 14, 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. Jorge Luis Berisso as
trustee.

CONTACT: Jorge Luis Berisso
         Paraguay 866
         Buenos Aires


GATIPRINT S.A.: Asset Liquidation Required to Pay Debts
-------------------------------------------------------
Argentina-based Gatiprint S.A. will begin liquidating its assets
following the pronouncement of the city's Court No. 7 that the
company is bankrupt, reports Infobae.

The bankruptcy ruling places the company under the supervision
of court-appointed trustee, Jorge Osvaldo Stanislavski.

Clerk No. 14 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Jorge Osvaldo Stanislavski
         Talcahuano 768
         Buenos Aires


GUGLIO S.A.: Bankruptcy Initiated by Court Order
------------------------------------------------
Buenos Aires Court No. 7 declared Guglio S.A. bankrupt after the
company defaulted on its debt payments. The bankruptcy order
effectively places the company's affairs as well as its assets
under the control of court-appointed Trustee, Jorge Daniel
Alvarez.

Infobae reports that Clerk No. 14 assists the court on this
case, which will end with the disposal of the company's assets
in favor of its creditors.

CONTACT: Mr. Jorge Daniel Alvarez
         Bartolome Mitre 1738
         Buenos Aires


HORIZONTE AZUL: Court Appoints Trustee for Reorganization
---------------------------------------------------------
Horizonte Azul S.A., a company operating in Rio Negro, is ready
to start its reorganization after Commercial and Civil Court No.
9 of General Roca, Rio Negro appointed Mr. Alejandro Oscar
Correa to supervise the proceedings as trustee.

An Infobae report states that Mr. Correa will verify creditors
claims until Feb. 8, 2005. He will then present these claims as
individual reports for final review by the court on March 23,
2005.

Mr. Correa will also provide the court with a general report
pertaining to Horizonte Azul's reorganization on May 24, 2005.
The court has scheduled the informative assembly on Nov. 9,
2005.

CONTACT: Horizonte Azul S.A.
         General Roca (Rio Negro)

         Mr. Alejandro Oscar Correa, Trustee
         Don Bosco 1576
         General Roca (Rio Negro)


PETROBRAS ENERGIA: Reports November Oil, Gas Production
-------------------------------------------------------
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE,
NYSE:PZE), controlling company with a 98.21% stake in Petrobras
Energia S.A. (Buenos Aires: PESA), reported Wednesday Petrobras
Energia S.A.'s oil and gas daily average production for November
2004.

OIL & GAS AVERAGE PRODUCTION (*)
(thousands of boe/day)
                                     Nov-04       Nov-03
- Oil Argentina                       50.7         56.6
- Oil Venezuela                       46.2         44.1
- Oil Peru                            11.7         11.3
- Oil Bolivia                          1.3          1.3
- Oil Ecuador                          6.2          5.7
Total Oil Production                 116.1        119.0

- Gas Argentina                       31.0         31.8
- Gas Venezuela                        4.0          4.4
- Gas Peru                             1.1          1.5
- Gas Bolivia                          6.0          6.4
Total Gas Production                 158.2        163.1

(*) Includes 2.9 and 3.2 thousands of BOE/day for November 2004
and 2003 respectively, from nonconsolidated operations.

CONTACTS:  Daniel E. Rennis
           E-mail: drennis@petrobrasenergia.com
           Alberto Jankowski
           E-mail: ajankows@petrobrasenergia.com
           Tel: (5411) 4344-6655



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

BANK OF BERMUDA: Members Decide to Wind-Up
------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                          and

IN THE MATTER OF Bank Of Bermuda International Limited

The Members of Bank Of Bermuda International Limited, acting by
written consent without a meeting on 16 December, 2004, passed
the following resolutions:

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

(2) THAT Bruce D. Wooley, Q.C. be and is hereby appointed
Liquidator for the purposes of such winding-up, such appointment
to be effective forthwith.

The liquidator informs that:

- Creditors of Bank Of Bermuda International Limited, which is
being voluntarily wound up, are required, on or before 5
January, 2005 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
Bruce D. Wooley, Q.C., the undersigned, at 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 Members of Bank Of Bermuda
International Limited will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on 27 January, 2005 at 9.30am, 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; 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.

CONTACT:  Mr. Bruce D. Wooley Q.C., Liquidator
          Clarendon House
          Church Street
          Hamilton, Bermuda


GLOBAL ASSET: Voluntarily Winds Up
----------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                          and

IN THE MATTER OF Global Asset Management (Asia) Limited

At a Special General Meeting of the Members of Global Asset
Management (Asia) Limited duly convened and held at the Offices
of the Company, Hamilton, Bermuda on the 20th December 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 Global Asset Management (Asia) Limited, which is
being voluntarily wound up, are required, on or before the 14th
January 2005 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 undersigned 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 Global Asset
Management (Asia) Limited will be held at the offices of
Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda
on the 28th January 2005 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:  Nicholas Hoskins
          Chancery Hall
          52 Reid Street
          Hamilton, Bermuda


LORAL SPACE: EchoStar Contract Subject to Court Approval
--------------------------------------------------------
Space Systems/Loral, Inc. ("SS/L"), a subsidiary of Loral Space
& Communications (OTCBB: LRLSQ), announced on December 20, 2004
that it has been selected by EchoStar Communications
Corporation, Englewood, Colorado, to build EchoStar XI, a new
direct broadcast satellite (DBS) based on SS/L's 1300 platform
that will support EchoStar's DISH Network(TM) and serve as
backup to its existing fleet.

EchoStar XI, anticipated to be delivered in early 2007, will be
the fifth SS/L-built satellite in the EchoStar fleet. The
contract is subject to bankruptcy court approval.


MUTUAL TRADE: Members Opt to Wind-Up
------------------------------------
       IN THE MATTER OF THE COMPANIES ACT 1981

                        and

    IN THE MATTER OF Mutual Trade Finance Limited

The Members of the Mutual Trade Finance Limited, acting by
written consent without a meeting on 16 December, 2004 passed
the following resolutions:

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

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

The liquidator informs that:

- Creditors of Mutual Trade Finance Limited, which is being
voluntarily wound up, are required, on or before 5 January 2005
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 Robin J Mayor,
the undersigned, at 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 Members of Mutual Trade Finance
Limited will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on 27
January, 2005 at 9.30am, 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; 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.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


NEW STAR CONVERTIBLE: Sole Member Resolves to Wind-Up
-----------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                          and

                     IN THE MATTER OF

  New Star Convertible Opportunities Hedge Fund Limited

The Sole Member of New Star Convertible Opportunities Hedge Fund
Limited, acting by written consent without a meeting on 17th
December 2004 passed the following resolutions:

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

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

The liquidator informs that:

- Creditors of New Star Convertible Opportunities Hedge Fund
Limited, which is being voluntarily wound up, are required, on
or before 5th January 2005 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 Robin J Mayor, the undersigned, at 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 New Star
Convertible Opportunities Hedge Fund Limited will be held at the
offices of Messrs. Conyers Dill & Pearman, Clarendon House,
Church Street, Hamilton, Bermuda on 26th January 2005 at 9.30am,
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; 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.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda



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

AMBEV: Fitch Upgrades Foreign, Local Currency Ratings
-----------------------------------------------------
Fitch Ratings has upgraded the senior unsecured foreign currency
rating of Companhia De Bebidas Das Americas (AmBev) to 'BB+'
from 'BB-' and its unsecured local currency rating to 'BBB' from
'BBB-'. Both ratings were removed from Rating Watch Positive.
The Rating Outlook is Stable.

Fitch has also upgraded the 2011 and 2013 notes of Companhia
Brasileira de Bebidas (CBB), a wholly owned subsidiary of AmBev,
to 'BBB' from 'BBB-'. The rating for these notes exceeds
Brazil's sovereign rating of 'BB-' due to structural
enhancements that mitigate certain political risks. These notes
have also been removed from Rating Watch Positive. The Rating
Outlook is Stable.

AmBev's upgrade reflects its increased geographic
diversification of operations and cash flow, implicit support
from its new parent company and lower overall cost of financing
following the completion of the acquisition of AmBev by
Interbrew, (renamed InBev). As part of transaction, AmBev now
directly owns 100% of Labatt Canada (Labatt), the second-largest
brewer in Canada. Labatt is expected to diversify AmBev's cash
flow and generate more than $500 million of EBITDA in 2004. The
company should end the year with about $850 million of net debt.
On a pro forma basis, Labatt should account for about 30% of
AmBev's consolidated EBITDA and total debt. In 2003, AmBev's
Brazilian operations, pre-acquisition, accounted for about 92%
of the company's consolidated EBITDA. With the addition of
Labatt, plus the growth of its other investments in Latin
America, on a pro forma basis, in 2004 Brazilian operations
would account for about 60% of consolidated EBITDA.

The upgrade also incorporates the overall strategic importance
of AmBev to InBev. As a result of the acquisition, InBev now
owns 68% of the voting shares in AmBev and has a 50% economic
stake, which could increase to 84% and 57%, respectively, during
the first half of 2005 through a mandatory tender offer (MTO)
initiated by InBev. As of Dec. 21, 2004, AmBev's market capital
is about $14.5 billion. On a pro forma basis, it would account
for about slightly more than 50% of InBev's consolidated EBITDA
in 2004. Also, the former controlling shareholders of AmBev now
share control of InBev. These shareholders built AmBev into a
diversified multinational beverage company over the past 15
years through a series of investments in Latin America. Given
its comfort for operating in emerging markets, Fitch believes
InBev's level of financial support for AmBev would be high
during a political or economic crisis in Brazil.

Fitch's 'BB+' senior unsecured foreign currency rating of AmBev
exceeds Brazil's country ceiling of 'BB-' due to the generation
of a substantial amount of cash flow in a hard currency.
Currently, AmBev could cover annual dollar debt service by more
than 1 times (x) with hard currency from Labatt; about $250
million of LaBatt's cash flow is available to upstream to Ambev
under the existing debt arrangements. This compares with annual
U.S. dollar debt obligations of about $200 million per year by
AmBev's Brazilian operating subsidiary. This debt service
consists of approximately $100 million of amortizing debt and
$100 million of annual interest expense on the notes due in 2011
and 2013. Alternatives are also available to provide hard
currency and financial support from the shareholder through
intercompany loans during times of sovereign stress. It is
important to note that the foreign currency rating of AmBev is
below the local currency rating of 'BBB' due to negative
covenants on debt at Labatt that restrict the distribution of
cash from it to AmBev by the following formula: EBITDA less
interest charges, capital expenditures and cash taxes.

The 'BB+' rating also incorporates some uncertainty that exists
surrounding InBev's financial strategy going forward. In
addition, it is unclear under what circumstances and to what
degree InBev would assist AmBev in making timely payment on the
debt obligations of its Brazilian subsidiary in the event the
Brazilian government would impose exchange controls or a
moratorium on private-sector debt service. A new financial
management team is slated to be in place on Jan. 1, 2005. Fitch
does not anticipate that InBev will provide a full financial
guarantee for the debt at AmBev, given the substantial position
of minority investors in both companies. The increase in the
rating of CBB's notes is due to the improvement in the
underlying credit quality of AmBev, as reflected by the upgrade
in its local currency rating to 'BBB' from 'BBB-.'


BANCO BRADESCO: Inks Credit Agreement With Parana Banco
-------------------------------------------------------
Brazilian bank Banco Bradesco (BBD) announced Tuesday that it
has entered into an agreement to provide consumer credit to
clients of regional lender Parana Banco, Dow Jones Newswires
relates.

Under the agreement, Bradesco will provide credit worth BRL30
million ($1=BRL2.69) per month for three years, or a total of
BRL1.08 billion. Curitiba-based Parana Banco, in turn, will
extend the credit to customers, mainly retirees.

Banco Bradesco is the largest private bank in Brazil in terms of
assets.


BRASKEM: Board Authorizes BRL170 Mln Interest Payment
-----------------------------------------------------
Braskem S.A. ("Braskem"), as required in the provisions of CVM
Instruction No. 358/02, informed shareholders and the market
that the Board of Directors, at a meeting held on 12.14.2004,
has decided to authorize the payment of up to R$170,000,000.00
(one hundred and seventy million reais) as interest attributable
to shareholders' equity, to Braskem shareholders.

In addition, the company announced that the board has also
authorized the Board of Executive Officers to establish, at a
meeting to be held on December 31, 2004, the precise amount to
be effectively credited to the shareholders, within the limit
set forth by the Board of Directors, in function of the amount
to be ascertained at the end of this 2004 fiscal year, further
observing the Company's legal and statutory rules and limits,
designating said amount to the mandatory and priority dividends
for the 2004 fiscal year, pursuant to Law No. 9249/95 and
paragraph 6th of article 44 of the By-Laws.

It was further established that the payment of interest
attributable to shareholders' equity should occur within the
same limit generally set forth for the payment of dividends,
i.e., within up to 60 (sixty) days after the Ordinary
Shareholders Meeting to be held in 2005. The precise amount of
interest on own capital, to be paid, and additional information
relating to the payment, will be the subject matter of a notice
to shareholders publication, after 12.31.2004.

The base for calculation of this payment will be the 12.31.2004
stock position, and as of 01.03.2005 the shares will be traded
at the Stock Exchanges net of this interest attributable to
shareholders' equity.

In view of said deliberation, the conversion of class "B"
preferred shares into class "A" preferred shares will be
suspended for the period of December 16 through 31, 2004, as a
privilege set forth in paragraph 3 rd of art. 6 th of the
Company's By-Laws.

Shareholders' Service Locations: Branches of Banco Itau S.A.
located at the following addresses.
- Rua Boa Vista, 176 - 1ž subsolo - Sao Paulo-SP;
- Rua Sete de Setembro, 99 - Subsolo - Rio de Janeiro-RJ;
- Av. Joao Pinheiro, 195 - Terreo - Belo Horizonte-MG;
- Rua Sete de Setembro, 746 - Terreo - Porto Alegre-RS;
- Rua Joao Negrao, 65 - Sobreloja - Curitiba-PR;
- Av. Estados Unidos, 50 - 2ž andar - Salvador-BA;
- SCS Quadra 3 - Edificio D'Angela - Sobreloja - Brasilia-DF.

CONTACT: Braskem S.A.
         Av. Nacoes Unidas
         4777 Cep
         San Paulo, 05477-000
         Brazil
         Phone: 55-11-3443-9999
         Website: http://www.braskem.com.br/


NET SERVICOS: S&P Releases Report on Ratings
--------------------------------------------
ISSUER CREDIT RATING:
Net Servicos de Comunicacao S.A.
Corporate Credit Rating                       SD/Nm/--

AFFIRMED RATING:
Net Servicos de Comunicacao S.A.
Senior Unsecured debt (Foreign currency)         D

NEW RATING
Net Servicos de Comunicacao S.A.
Senior Secured debt (Foreign currency)           B+

Major Rating Factors

Strengths:
- Leading market position in Brazil pay-TV industry
- High-quality programming
- New strategic investor Telmex brings to NET operational
expertise in telephony and potential financial support

Weaknesses:
- Unproven financial flexibility post default
- Need to invest and implement higher value services to reduce
potential churn to DTH
- Low penetration and growth potential of pay-TV capped by
country's demographics

Rationale
The 'SD' global scale issuer rating on NET indicates that, even
though the company has already registered the local and foreign
currency issues that will replace existing debts, most of its
debts are still in default (since the company's decision to
suspend principal and interest payments in December 2002). The
issuer rating will be maintained at 'SD' until the exchange
documents are formalized and creditors actually tender the
defaulted credits into the new notes.

On the other hand, Standard & Poor's analyzed NET's business
plan as proposed to that of creditors and its debt profile post-
restructure and indicated that it will assign NET the global
scale issuer credit rating and outlook of 'B+/Stable/--' and the
national scale issuer rating and outlook of 'brBBB/Stable/--'
after the debt exchange becomes effective. We have already rated
the company's dollar-denominated senior notes at 'B+' and its
real denominated senior debt at 'brBBB'. The indicative issue
and issuer ratings reflect the capitalization of more than 40%
of NET's total debt, the long-term profile of the new debt-in
line with the company's cash generation capacity-and significant
reduction in interest expenses, allowing the company to repay
all debt in full by 2008 exclusively with free internal cash
generation. The ratings also reflects NET's extensive network in
major cities, large subscriber base (38% of market share) and
high-quality lineup, as well as limited financial flexibility
after a lengthy debt renegotiation, the weak growth prospects
for Pay-TV and related products in Brazil given the ample reach
of open-air TV and income constraints, and the fierce
competitive environment in both Pay-TV and broadband.

With the conclusion of its debt restructuring and
capitalization, NET is expected to show much improved cash-flow
protection measures despite the slow increase in subscribers and
ARPU. EBITDA margins are projected to remain fairly stable in
the 23%-25% range until 2006, but the substantial decrease in
interest expenses will allow NET to post free operating cash
flow in excess of BrR150 million from 2006 on (when the new
notes start to amortize). EBITDA to interest should be about
3.5x in the next three years, compared to fractional coverage
since 2001, and should improve further as debt payoff is
stronger in 2007-2009.

NET's new leverage is much more in line with the company's
capacity to generate cash, and the new profile of the debt
reduces the risk of NET's repayment capacity being hurt by
potential pitfalls in revenues or volatile macroeconomic
indicators. To reduce its susceptibility to the volatile
Brazilian market, the notes carry a flexible amortization
schedule in case of an interest rate or foreign exchange hike.
In our projections, we assumed that 60% of the total debt will
be tendered into the Real-denominated senior debt and 40% in the
dollar-denominated senior debt ($100 million).

The company also renegotiated programming contracts, which were
converted to local currency and are updated by inflation,
bearing a closer correlation to NET's capacity to adjust
subscription fees. The new debt will also count on several
financial and nonfinancial covenants that limit NET's ability to
change its approved business plan. Creditors will also have the
benefit of a cash sweep, as well as the pledge of network assets
and receivables by NET's operations in Sao Paulo, Rio de
Janeiro, and Santos.

NET is the largest multiservice operator in Latin America, with
1.4 million connected subscribers. The company also offers
bidirectional broadband Internet access (Vírtua, with 156,893
subscribers). NET's existing controlling shareholders prior to
the equity offer are Globopar (84.1% of ordinary shares); the
Brazilian development bank BNDES (7.3%); the media group RBS
(6.8%); and the residual 1.8% is publicly owned. In June 2004,
Globopar and Teléfonos de Mexico S.A de CV (Telmex; FC:
BBB+/Stable/--) announced that they signed an agreement in which
Globopar would sell a participation in NET to Telmex, which
would be effective after the restructuring of NET's debt is
completed-which has been already approved by the Brazilian
Regulatory Agency Anatel. After the deal is finalized, Globopar
and Telmex will share control of NET through an agreement that
eventually will result in a special purpose entity that is 51%
controlled by Globopar and 49% controlled by Telmex, which will
hold 51% of NET's voting shares. The remaining voting capital
will be 46.6% owned by Globopar/Telmex and 2.4% publicly owned.

Business Description
NET is the largest multiservice pay-TV operator in Latin
America, with 1.4 million connected subscribers (as of September
2004). The company also offers bidirectional broadband Internet
access (Vírtua) to subscribers (157,000 subscribers). NET is
currently owned by media holding Globopar (84.1% of ordinary
shares); Brazilian development bank BNDES (7.3%); media group
RBS (6.8%); and residual 1.8% is public owned.

In June 2004, Globopar and Telmex announced an agreement in
which Globopar will transfer to a special purpose company (SPC)
voting shares in NET equivalent to a 51% participation, and then
sell to Telmex 49% of the voting interest in the SPC, and 100%
of the nonvoting interest. Globopar will also sell to Telmex-
outside the SPC-part of its remaining common and/or preferred
shares in NET. Pursuant to Brazilian regulation in which the
voting power in cable companies must be held by Brazilian
entities, Globopar will continue to control NET through its
majority share in the SPC; however, Globopar and Telmex have
further agreed that, in the event of a change in Brazilian law,
Telmex would have the right to acquire from Globopar (and
Globopar would have the right to cause Telmex to buy its
participation in NET) an additional voting interest in the SPC
that would give Telmex the control of the SPC.

Following the announcement of the Telmex agreement, RBS
announced it would swap its voting shares of NET into preferred
shares (more liquid) with Globopar and BNDES accepted to sell
its 7.26% voting interest on NET's capital to Globopar (still
not formalized). These shareholders will no longer be at part of
the shareholders' agreement.

Business Profile
NET's main business is related to pay-TV (including pay-per-view
programming), which today is responsible for about 90% of the
company's revenues and EBITDA. Broadband is the second, rapidly
growing business in the company, as NET seeks to leverage its
network with a broader range of products-including prospective
digital network and VoIP (voice over Internet protocol).

NET's network of coaxial and fiber optic cable covers 35,616 km
and passes more than 6.6 million homes (48% belong to classes A
and B), 35% of it having two-way communication capability. At
December 2003, the company's network consisted of 2,862 fiber
nodes that generally fed on average 2,300 homes each. Most of
the network has a reasonable bandwidth capacity of at least
550MHz, being distributed as follows: 32% 750 MHz, 53% 550 MHz,
and 15% 450 MHz.

This platform, together with the recent implementation of NET's
digital network in target areas within Sao Paulo and Rio, should
support services such as pay-per-view TV, interactive services,
and near video-on-demand.

A substantial portion of the network consists of aerial cables
strung on electrical utility poles, and NET is negotiating
rental agreements with local electric utilities to reduce fixed
costs. The company also has to deal with Brazil's high rates of
piracy, estimated at 4.7% of homes passed. With the resolution
of its financial constraints, NET is dedicating more resources
to detecting and eliminating piracy; as of December 2003, 54% of
the signal of homes passed was coded.

Pay-TV business (86.1% of Revenues and 89.6% of EBITDA).
This business is mostly related to pay-TV subscriptions, but
also encompasses steadily growing pay-per-view services offered
by NET.

The TV industry in Brazil is highly competitive. NET competes in
cable systems in seven of the 44 cities it operates (including
Sao Paulo, Curitiba, Florianópolis, and Belo Horizonte). Main
competitors include TVA (8% of market share in pay-TV), whose
network overlaps with NET's in the important service area of Sao
Paulo, and providers of satellite services (DTH), such as Sky
Brasil (20.6%) and DirecTV (12%)-companies that have just
announced an agreement to merge, preserving the Sky brand. Good
quality of open TV can also be considered an impediment for
larger penetration of cable (99% of households with TV are
reached by open signal). NET is the leading provider of pay-TV
in Brazil, both in number of subscribers and homes passed, with
38% of market share. With the resolution of its capital
structure and the recent agreement with Telmex, the company is
expected to play a key role on the industry's consolidation in
Brazil-and its ability to face competition will be driven by its
capacity to attract and retain subscribers through new high-
quality products and services, improved customer service, and
advances in technology.

NET recently launched its digital cable services in targeted
areas in Sao Paulo and Rio de Janeiro, which would enable the
company to offer customers value-added premium programming
packages-more than 100 channels, out of which 30 are pay-per-
view, compared to a maximum of 70 channels offered today in
NET's widest package-interactive and higher-quality services,
and near video-on-demand (movies at predetermined times). This
action is very important for the company to compete against DTH
satellite offerings and to provide NET bandwidth to grow. Pay-
per-view services, which today account for 3.2% of revenues and
with seasonal characteristics (due mainly to the soccer season),
are expected to grow steadily especially with the new digital
network. These value-added services will allow for higher prices
and margins for the company. NET's limited capital expenditure
program already includes selected deployment of digital
capabilities.

Furthermore, NET is focusing on customer service improvement to
face competition, since DTH has cultivated a better customer
service reputation than have cable TV operators during the past
years. In November 2003, NET contracted TNL Contax S.A. as the
new customer service supplier, determining new aggressive
targets on service quality. Efficient customer service also
means lower churn rates, especially considering the "retention
islands for dissatisfaction" at the call centers to prevent
customers from disconnecting.

The country's volatility can also play a negative role in the
company's capacity to retain its subscribers, as showed in 2002.

NET's customer base is fairly loyal, as 60% of subscribers have
been with the company for more than four years. Annualized churn
rate has decreased considerably since 2003 (from 18% to a steady
14% in 2004), as a consequence of the already-mentioned active
role of the retention islands, and more selectiveness in
accepting new subscribers. With the good prospects for the
Brazilian economy for 2004 and 2005, we expect that NET will be
able to keep churn low and consistently report growth in its
subscriber base. The implementation of a "loyalty plan," waiving
hook-up fees for subscribers who commit with NET for at least 12
months, should help the base to grow. As most of the fixed costs
for the entire network were already disbursed, new subscribers
are much cheaper for the company, with an estimated payback in
about six months.

On the other hand, penetration is expected to remain low-today
at 21% of homes passed. Actually, penetration and growth in the
Brazilian pay-TV industry are constrained by the country's
demographics-low levels of disposable income and volatility of
the economy (which is being partly offset by the growth in the
Brazilian economy demonstrated this year and the good trends for
2005). While the low penetration of 9% of pay-TV in Brazilian
households could suggest a significant growth potential, a
closer look shows that penetration at the top social classes is
already high (80% in class A and 40% in class B-and more than
91% of NET's subscribers belong to class A and B households).

The company's largest operating expense continues to be the
programming costs (hovering around 30%-33% of net revenues).
Since 2003, NET has renegotiated all of its programming
contracts, which are now denominated in local currency, avoiding
a major exchange risk exposure. NET has also settled a new
contract with NET Brasil, which will continue to obtain national
programming, but NET will negotiate all international content
directly (about one-third of NET's line up).

Broadband business (6.2% of Revenues and 9.9% of EBITDA).
NET also provides high-speed cable modem Internet access
service, reaching 2.3 million homes through its bidirectional
network. NET broadband access (Vírtua), is available in 10
cities (Sao Paulo, Rio de Janeiro, Belo Horizonte, Brasilia,
Santos, Sorocaba, Curitiba, Porto Alegre, Campinas, and
Florianópolis).

Vírtua faces significant competition from other Internet
providers (especially those from telephone companies) of
asymmetric digital subscriber line technology (ADSL). Until now,
competitors in ADSL had more aggressive sales and marketing
efforts than NET, and despite a slightly lower-quality product,
reached larger market share. As of September 2004, Speedy, from
the Telefonica Group, had 715,000 subscribers; Brasil Telecom
had 456,000; Telemar 429,000; TVA 29,000; while NET had 157,000
subscribers.

Brazil still has a very low penetration for broadband services,
considering 62% of pay-TV households had a PC (2003). Vírtua
holds a 64% share in the Brazilian cable market and is growing
at aggressive rates as a consequence of market demand and
stronger sales efforts in 2004-Vírtua's subscriber base reached
156,893 in September 2004 (almost double that of September 2003-
74,831 subscribers) and is expected to grow by double digits the
next few quarters-the company expects to add 7,000 new
subscribers per month this year.

Vírtua posts very attractive marginal returns for the company-
EBITDA margin of about 50% compared to 30% of pay-TV. Broadband
operating costs are even expected to decrease as the market
matures and NET eventually implants the Docsis technology (used
by most cable operators around the world), which was already
tested in 2003 with positive results, and which would lower
cable modem costs once it is produced in large scale. Besides,
broadband subscribers are 70% less likely to disconnect their
pay-TV compared to other subscribers, which is an important
instrument for customer retention. The company plans to offer
telephony services through VoIP within the next 12 to 24 months.
Nevertheless, strong growth in broadband and VoIP will probably
have to be discussed in the context of a broader strategic move
in coordination with Telmex.

Financial Policy: Aggressive
NET's financial profile has always been aggressive due to its
bulky capital expenditure program to deploy and upgrade its
cable network. The pay-off of such investments was impaired by
lower-than-anticipated penetration and sale of higher value-
added services, as well as by the severe impact of the local
currency fluctuation of NET's mostly foreign-currency debt and
programming costs. Huge increases in debt service with the 50%
devaluation of the local currency in 2002, together with
economic slowdown and failure of the debt restructure the
company was attempting to negotiate, led to a default on debt in
December 2002.

NET is about to conclude its restructuring plan with creditors,
which consists of a proposal to exchange the defaulted debt plus
the accrued interest (penalties waived) into Senior Notes (60%
of the existing debt outstanding) and into shares (40%). Local
currency bondholders will exchange their debt for local
currency-denominated Senior Notes and foreign currency
bondholders will have the choice to hold the new bonds either in
Brazilian reais or in U.S. dollars. NET will issue 1,825 million
shares at price of $0.35, which initially will be sold in a
rights offering. Nevertheless, in light of a parallel agreement
between Globopar and Telmex, Telmex would subscribe the entire
equity offer. In any case, the cash will be used to pay down
creditors.

To reduce its susceptibility to the volatile Brazilian market,
the company worked to reduce its exposure to interest rates, and
to foreign currency on both debt and programming costs. It is
expected that around 60% of the new bonds will be pegged to the
local currency. Moreover, they carry a flexible amortization
schedule that postpones maturities on 30% of the debt to 2010 in
case of an interest rate hike and/or sharp local currency
devaluation. The company also renegotiated programming contracts
that were converted to local currency and are updated by
inflation bearing a closer correlation to NET's capacity to
adjust subscription fees.

The new bonds carry a series of covenants that limit NET's
dividend distribution and capital expenditures, as well as a
cash sweep mechanism. Nevertheless, no significant investment is
necessary in the network to allow for deployment of advanced
services like the digital network; major investments in
broadband and telephony should be thought of, and carried along
together with strategic shareholder Telmex.

Financial Profile

Accounting
NET is listed in Brazil, in New York, and Madrid (Latibex), and
therefore publishes financial statements in both Brazilian and
U.S. GAAP. The company adopts the standard accounting methods in
both GAAPs, including the capitalization of its SAC costs. The
company has also joined Bovespa's Special Corporate Governance
Level 2, to adopt stricter disclosure rules regarding the
relationship with the capital market.

Profitability and cash flow
Despite the low growth and volatility of the Brazilian market,
NET had historically shown EBITDA margins in the 20%-25% range,
even though cash-flow coverage ratios were weak due to the huge
stock of debt. After the financial stress in 2002, when EBITDA
fell to 16%, NET renegotiated prices of programming contracts to
local currency and recovered margins to historical levels.
Coverage ratios remained weak as the company was still accruing
interest on defaulted debt.

In 2004, the company is showing a 3.2% net addition in Pay-TV
subscriber base, and strong growth in broadband (71.5%), as well
as lower churn. Sales in the 12 months ended September 2004 were
up 26.5% compared to the same period of 2003 (in dollars), and
EBITDA margin is at 25.7%. Since June 2004, the company is
accruing interest based on the new levels already renegotiated
with creditors. In this scenario, and considering the company's
new debt levels and existing operating margins, we expect that
NET will post interest coverage ratios (EBITDA/Interest) in the
range of 3.5x in the next three years, compared to fractional
coverage since 2001. NET benefited from Brazil's economic growth
in 2004 and is expected to catch up also in 2005, increasing net
subscriber base by some 5% in 2004, and conservatively, 2% from
2005 on.

NET's sales and earnings will remain strongly related to the
performance of the Brazilian economy, but the prospective
capitalization and new debt amortization schedule will improve
cash-flow protection measures considerably. With the
capitalization of 40% of the total debt (which includes past due
interests) and lower interest expenses, funds from operations-
to-debt will improve to 30% by the end of 2004 from 19.3% in the
12 months ended September 2004, and improving even further to
50%-60% in 2007. The restructuring plan will allow NET to repay
debt with its own cash generation, under a conservative growth
scenario. We expect that the company could even anticipate
amortization of the debt (through cash sweep instruments) in one
year-fully amortizing existing debt by 2008-and still post
comfortable cash levels (approximately BrR300 million).

Capital structure and financial flexibility
Under the terms of the restructuring, the company's entire debt
plus the accrued interest (penalties waived) will be refinanced
by the Senior Notes, both in local currency and in dollars-in an
expected proportion of 60% local currency and 40% U.S. dollars,
and equity issue, as described above. The amortizing profile of
the new debt and low exposure to currency fluctuations, either
through most local-currency-denominated programming costs or
covenants protecting the company against sharp local currency
devaluation, together with an additional rate hike shelter,
solved NET's main weaknesses-its debt profile.

On the other hand, NET's financial flexibility should be very
weak as it emerges from default, and as its main shareholder,
Globopar, is still trying to resolve its own $1.4 billion
default.

PRIMARY CREDIT ANALYST: Milena Zaniboni, Sao Paulo (55) 11-5501-
8945; milena_zaniboni@standardandpoors.com


SADIA: Acquires So Frango Produtos Alimenticios Ltda
----------------------------------------------------
Sadia S.A. announces that has acquired 100% of the shares of "So
Frango Produtos Alimenticios Ltda". The value of the transaction
corresponds to US$ 26.5 million, to be paid with the Company's
own resources. Sadia will assume the control of So Frango's
operations on January 3rd, 2005.

Initially, Sadia had offered "So Frango" a partnership similar
to other existing partnership agreements it has with Globoaves
and Minuano. Under this proposal, Sadia would purchase 100
thousand of the 150 thousand birds slaughtered daily by the
Company, headquartered in Brasilia - DF. However, due to the
investment needs to enable "So Frango" to comply with this
demand, the negotiation has evolved into an acquisition.

"So Frango" is active in poultry slaughtering and processing as
well as in the production of animal feed meal. Its product line
ranges from whole chicken, special frozen and chilled cuts to
sausages and cold cut meats.

With 1,700 employees, "So Frango" is expected to post R$ 220
million on gross revenues in 2004 and a slaughtering capacity of
150 thousand birds/day. Sadia intends to expand this capacity
over the next five years to 400 thousand birds/day, which should
generate 4 thousand new direct jobs in the acquired company and
around 12 thousand indirect jobs. All operations with out
growers and suppliers, as well as "So Frango's" job positions,
will be maintained. Half of "So Frango's" production will be
sold to the domestic market and the rest will be exported,
similar to Sadia's operations' model in the poultry segment.

Through this acquisition, Sadia strengthens its presence in the
central region of Brazil close to raw material producers and to
Brazil's main centers of consumption. Sadia now detains 14% of
Brazilian chicken production, broadening its market leadership.

Within the legally required timeframe, Sadia will request
transaction approval to the government's anti-trust regulating
agencies.


SADIA: Board OKs Interest on Equity Payment to Shareholders
-----------------------------------------------------------
SADIA S. A., announces to its shareholders that, on December 21,
2004, the Board authorized the payment of interest on equity
related to 2004 earnings, being R$ 0,12175 per common share and
R$ 0,13393 per preferred share (R$ 4,02 per ADR). The interest
on equity will be calculated according to the minimum dividend
required by Brazilian securities law, to be approved at the next
general shareholders' meeting. The corresponding credit will be
posted in the Company's accounting records on December 31, 2004
in the shareholders' names. Payment will be made on February
16th, 2005, based on the record date at December 30, 2004, and
retaining 15% (fifteen per cent) income withholding tax,
pursuant to Paragraph 2 of Article 9 of Law No. 9.249/95, except
for those shareholders that are legally recognized as tax-exempt
investors.  Shares shall be traded on the Sao Paulo and New York
Stock Exchanges, without the right to such interest on equity,
as of January 3, 2005, including that date.

Shareholders possessing bank accounts will have the amount
automatically credited on the above mentioned payment date. All
other investors will receive a "Dividend Credit Notice" by mail,
at those addresses on file with Banco Bradesco.

Tax-exempt investors which are not subject to income withholding
tax must comply with applicable law by submitting the required
documents by January 20th, 2005 to the following address: Banco
Bradesco, Departamento de Acoes e Custodia, Predio Amarelo  - 2ž
andar - Cidade de Deus, Osasco - SP - Brazil CEP 060029-900.



=========
C H I L E
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EMBONOR: S&P Details Ratings Review
-----------------------------------

Rationale
The ratings on Coca Cola Embonor S.A. (Embonor, BB+/Stable/--)
reflect moderately high leverage for the rating, a low degree of
diversification, a significantly diminished critical size, and
the challenge of improving its financial performance in spite of
the highly competitive nature of the carbonated soft drink
market, price-sensitive consumption habits, and a moderate
inflexibility to increase final prices to consumers. These
factors are offset by the leading position of this Chilean Coca-
Cola bottler within its franchised territories in Chile and
Bolivia, Coca-Cola Co.'s (KO) 45.5% ownership level, and
inclusion of the Coca-Cola name in the bottler's name, and
corresponding ongoing (but to a lesser extent) credit
enhancement derived from some degree of implied support by KO.
It also factors in the good medium-term prospects for growth
within the areas served and the lower volatility of revenues and
cash flow (now that Embonor's operations are even more strongly
positioned in the relatively stable Chilean Republic after the
sale of the Peruvian business in 2004).

Embonor is the second-largest Coca-Cola bottler in Chile, where
after selling its Peruvian bottling franchise, it generated
about 85% of its cash flow in the first nine months of 2004
(measured as a percentage over consolidated EBITDA) and the
largest Coca-Cola bottler in Bolivia, where it has a leading
market share of 57.8%.

Compared to all other Latin American Coca-Cola bottlers, Embonor
and the Mexican bottler, Coca-Cola Femsa S.A. de C.V., were the
two bottlers whose ratings benefited the most from expected
support from KO. Nevertheless, with the significant decline in
its volume relative to the overall Coca-Cola system after the
sale of the Peruvian operations (volume sales in unit cases pro
forma for 2003 fell to approximately 105 million unit cases per
year [UC/year] from 175 million UC/year) and lessened strategic
importance to the Coca-Cola system, Embonor no longer fulfills
Standard & Poor's Ratings Services' criteria for maintaining
such high credit enhancement. Nevertheless, the ratings will
continue to factor in some lower degree of parent support
(comparable to that of Embotelladora Andina S.A.) based on the
continued operating importance of Embonor to the Coca-Cola
system, given its positioning within the Chilean and Bolivian
territories, the remaining high-equity participation of KO in
the company's equity, and the fact that it shows the Coca-Cola
label on its own corporate name.

During the first nine months of 2004, both Embonor's sales and
EBITDA generation declined by about 25% as a result of the sale
of the Peruvian operations in early 2004. Excluding the Peruvian
operations, EBITDA increased by about 8.9%, compared to the
first nine months of 2003 as a result of volume increases in
Chile and Bolivia (of 6.5% and 11.6%, respectively) and the
comparatively higher dollar realized prices in Chile (due to the
domestic currency appreciation). These factors helped to offset
the currency depreciation effects in the Bolivian operations.
After the sale of its Peruvian operations, the lower volumes
recorded in this lower-priced market should positively affect
consolidated margins and contribute to higher stability but
reduce overall cash generations, all other things equal. Given
relatively stable current price levels, the EBITDA margin is
expected to move in the range of the 21%-23% level during the
next two years (versus 18.3% in the first nine months of 2004),
making the bottler more comparable to its industry peers in the
region.

Overall, profitability is expected to improve moderately over
the medium term based on positive long-term soft drink
consumption growth fundamentals in the region, particularly in
Chile. Stronger cash flows derived from the more consolidated
and stable Chilean operations should provide enhanced strength
to overcome the potential for unfavorable macroeconomic
conditions in Embonor's Bolivian territories, should they
develop. Subsequently, interest and debt coverage measures are
expected to continue to improve because of the lower debt level,
moderate investment plans, and modestly improving cash
generation expected for the next two years, translating into a
more adequate 3.5x EBITDA interest coverage or 26% FFO-to-debt
measures by 2006.

Given that the Bolivian operation is very small in terms of
contribution to the consolidated entity, Standard & Poor's does
not factor Bolivian sovereign risks into its rating on Embonor.
This approach would be reassessed if growth in more volatile
territories is much greater in the future (which seems unlikely
at this point) or cash flow from Chilean operations covers less
than 1x consolidated interest. Furthermore, excluding EBITDA
from Bolivia, Standard & Poor's estimates EBITDA from Chile
alone would provide a manageable 2x interest coverage under
severe stress, in the event that unfavorable volatility
temporarily limited cash generation in its Bolivian franchise.

Liquidity
Standard & Poor's considers Embonor's liquidity position to be
somewhat weak. The company's cash reserves as of the end of
September 2004 were only $4 million, as the proceeds from the
sale of the Peruvian subsidiary were mostly used for the
repayment of debt.

However, in December 2004 Embonor obtained a syndicated credit
facility for up to $180 million to pay, prepay, and/or refinance
existing debt, mainly its bilateral credits and 144 'A' rated
bonds that are due in 2006. The new credit facility that is
available to be drawn by the company through March 2006, would
help to better meet the expected improvements in financial
performance, already factored into the current rating levels.
The new line would result in significant interest savings from
2006 (as the interest rate based on LIBOR plus a margin compared
to the 9.875% rate for the existing bonds) and would improve the
debt maturity profile.

Before the divestiture of the Peruvian operations, Standard &
Poor's was concerned that negative free operating cash flows
would require the reliance on additional debt; however, pro
forma for the sale and debt repayment, free cash flow turned
positive and is expected to strengthen in the course of the
following two years. After the repayment of a substantial
portion of the debt denominated in local currency (with the
proceeds of the sale of the Peruvian operations), Embonor's
exposure to foreign-denominated debt increased to 95% of its
total debt, increasing currency mismatch risks, which is
partially mitigated by hedges applied by the company.

Because of its adequate position within the Chilean market and
its unique relationship with KO, Embonor enjoys very good access
to the domestic and global financial markets. The company
benefits from access to additional committed credit lines
totaling approximately $29 million with banks in Chile and
Bolivia (which tends to be relatively unusual within Latin
American countries). Alternative sources of liquidity as of
September 2004 included accounts receivables for $26.9 million,
a portion of which could be sold, and $9.6 million in Embonor's
Yankee bonds held by Embonor Holdings.

Outlook
The stable outlook on Embonor reflects Standard & Poor's view
that, while increasingly challenged by intense competition (in a
still volatile but gradually improving macroeconomic environment
in most of its territories), Embonor is well positioned to
progressively strengthen its positioning within its franchised
territories. Rating stability still relies on continued implied
operational support by KO, and incorporates expectations for
improved financial performance through the strengthening of its
internal cash-flow generation during the next two fiscal years.
Rating stability also assumes that Embonor will be able to
maintain pro forma positive free operating cash and a
conservative investment plan during that period.

Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-
891-2127; ivana_recalde@standardandpoors.com

Secondary Credit Analyst: Marta Castelli, Buenos Aires (54) 114-
891-2128; marta_castelli@standardandpoors.com


ENAMI: Reconciles Debts With Ventanas Transfer
----------------------------------------------
Chilean state-owned copper company Enami has cleaned up its
debts, which were as much as US$450-million earlier this year,
through the sale of its Ventanas copper smelting and refining
complex to Codelco. The sale was part of a government strategy
to pay off Enami's debts, which have begun to cripple its
finances.

Thanks to high copper prices, Enami is now set to end 2004 in
the black with some US$6 million in profits and can focus on
helping develop small- and medium-sized mining projects in Chile
and modernizing its own installations.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

NCB JAMAICA: Net Profit Jumps 15% in 3Q04, Assets Up YoY
--------------------------------------------------------
The Board of Directors of National Commercial Bank Jamaica
Limited (NCBJ) released the audited results for the Group for
the year ended September 30, 2004.

Net profit for the Group for the year ended September 30, 2004
was J$3.2 billion compared to J$2.8 billion for the previous
year, an increase of $412.3 million or 15%, despite the
substantial one-off gains on the sale of equities in the prior
year. Excluding the one-off gains in the previous year, the core
profits for this year reflect an increase of $1.2 billion or
57%. This positive net profit performance was mainly
attributable to the continued growth in our core revenues,
resulting in a net interest income of $9.7 billion, an increase
of J$2.9 billion or 44% when compared to the $6.8 billion for
the previous year.

REVENUES
Revenues for the Group increased by J$3.1 billion or 14%
compared to the corresponding twelve months of the previous
year. The increase in revenues is attributable to the following.

- Growth in income from loans of J$1.98 billion or 66%.
- Growth in income from securities of J$2.1 billion or 14%.
- Growth in net fee and commission income J$464.6 million or 36%

Operating income of J$13 billion exceeded the $11 billion for
the corresponding period of the previous year by J$2 billion or
18%.

LOAN PORTFOLIO
One of the major revenue drivers for the Group is loans and
advances which increased by J$7.6 billion or 29% during the
twelve months ended September 30, 2004. The quality of the loan
portfolio has improved despite the significant increase in loans
and advances.

The aggregate amount of non-performing loans amounted to J$1.47
billion compared to J$1.503 billion as at September 30, 2003.
Non-performing loans now represent 4.1% of gross loans compared
to 5.3% at September 30, 2003.

As at September 30, 2004 provision for credit losses of J$2.28
billion was 154% of nonperforming loans, compared to 149% as at
September 30, 2003. Provisions for credit losses that exceed the
amounts required by International Financial Reporting Standards
(IFRS) are credited to a non-distributable reserve, Loan Loss
Reserve. As at September 30, 2004 the balance in the Loan Loss
Reserve was J$111.6 million. The Bank's provisioning policy is
in compliance with the Bank of Jamaica regulations.

BALANCE SHEET
The Group's total assets as at the end of the year was J$175.9
billion, J$30 billion or 21% in excess of the balance sheet as
at September 30, 2003. This increase in assets is attributable
to growth in the following earning assets:

- Loans and advances - J$7.6 billion or 29%
- Reverse repurchase agreements - J$15.5 billion or 266%

The asset growth was funded mainly by increases in customers'
deposits of $10.2 billion or 15% and repurchase agreements of
$7.9 billion or 27%.

CAPITAL
As at September 30, 2004 total stockholders equity was J$16.3
billion, an increase of J$3.4 billion or 27% when compared to
September 2003. National Commercial Bank is one of the best
capitalized banks in Jamaica as evidenced by the international
benchmark of capital adequacy, the Risk-based Capital Ratio was
21.55% at September 30, 2004 (21.01% at Sept. 30, 2003).

During the year two transfers ($1.3B in January 2004 and $0.6B
in September 2004) were made from undistributed profits to the
retained earnings reserve. The transfers to the reserve, which
in effect increased the capital base, were approved by the Bank
of Jamaica.

DIVIDENDS
At the Board of Directors meeting held 9 December 2004, a final
interim dividend of 21 cents per share (total cost
J$518,020,194) was approved for the year ended 30 September
2004. The dividend is payable on 7 January 2005 for shareholders
on record as at 23 December 2004.


NCB JAMAICA: Parent Company Woes Won't Impact Operations
--------------------------------------------------------
National Commercial Bank assured investors Tuesday that the
probe and subsequent settlement reached by its Canadian parent,
AIC Management Ltd, will have no impact on the unit, the Jamaica
Observer reports.

AIC Management, which is owned by Jamaican/Canadian billionaire
Michael Lee Chin, recently reached a settlement with the Ontario
Securities Commission (OSC), ending a probe into its market-
timing activities.

NCB's managing director Patrick Hilton told journalists that the
events at the parent company would have no impact on the local
unit as the latter was highly regulated locally, both by the
government and by its own standard of governance.

"In other words there is no movement one way or the other in
terms of survival or in terms of performance," Mr. Hilton said.

The terms and cost of the settlement are yet to be disclosed.
But Hilton stressed that NCB had the safeguards and regulations
that would insulate it from any exogenous shocks.

"We are saying that there are independent safeguards in place,"
he said, adding that his own "professional respect and
responsibility, particularly my own background" was also a
factor that would create greater investor and depositor
protection.

"I am saying to you that there are also independent safeguards,
particularly the central bank, and the financial service
commission," he added.



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

TRICO MARINE: LatAm Units Not Affected by Bankruptcy Filing
-----------------------------------------------------------
*  Restructuring Will Benefit Trico's Creditors, Employees and
Vendors
*  Trico Will Continue Business Operations Without Interruption
and Expects to Emerge from Chapter 11 Quickly

Trico Marine Services, Inc. (OTC Bulletin Board: TMAR) (the
"Company" or "Trico") announced Tuesday that, as previously
indicated, it and two of its domestic subsidiaries have filed a
"prepackaged" chapter 11 financial reorganization case to
restructure and substantially reduce the Company's debt,
strengthen its balance sheet, and increase its liquidity. The
prepackaged bankruptcy case was filed Tuesday in the United
States Bankruptcy Court for the Southern District of New York.
As part of its bankruptcy filing, the Company also filed with
the Bankruptcy Court its prepackaged plan of reorganization.

Holders of the Company's $250 million 8 7/8% senior notes due
2012 (the "Senior Notes") voted overwhelmingly to accept the
plan. The Company's plan has received acceptances from 99.9% of
the creditors who cast votes on the plan. Based on this high
degree of support, it is expected that Trico will complete its
restructuring quickly, with the Company's exit from chapter 11
expected to occur in less than 60 days.

As previously indicated, the Company expects to continue normal
operations throughout the restructuring process. All services
provided to customers are expected to continue on a "business as
usual" basis.

"We have worked over the last several months with our creditor
groups to reach an agreement on a debt restructuring. During
this period, we have made the necessary preparations to ensure
that the restructuring does not impact the services that Trico
provides to its customers. We intend to utilize this
restructuring to strengthen our business. During the
restructuring, services will remain unaltered and all vendors
can expect timely payment for postpetition goods and services,"
said Thomas Fairley, Trico's Chief Executive Officer.

Debtor-in-Possession Financing

In connection with the commencement of bankruptcy, the Company
also entered into a $75 million debtor-in-possession ("DIP")
financing facility with its existing U.S. lenders. The DIP
facility is comprised of a $55 million term loan, which will be
used to pay all of the outstanding indebtedness under the
Company's existing U.S. secured term loan, and a new $20 million
revolving credit facility. Following court approval, the new
funding will supplement Trico's existing capital and allow the
Company to meet its obligations related to the operation of its
businesses, fulfill its payroll obligations, and pay vendors for
goods and services provided after the bankruptcy filing.

"Trico's operating cash, together with the amounts obtained
under its debtor-in-possession financing facility, will enable
it to operate its business and emerge from bankruptcy stronger,
more streamlined, and in a better position to achieve our
business goals," said Fairley.

Upon effectiveness of Trico's plan of reorganization, and the
satisfaction of certain conditions precedent thereunder, the DIP
facility will convert into a $75 million exit financing
facility, comprised of a $55 million term loan and a $20 million
revolving credit facility, which will provide the reorganized
Company with liquidity for working capital and other general
corporate purposes.

The Chapter 11 Filings

In addition to the Chapter 11 petitions and the plan of
reorganization, Trico asked the Bankruptcy Court to consider
several motions benefiting its employees, vendors, service
providers, customers, and other stakeholders. Trico has asked
for the Bankruptcy Court's permission to continue paying its
employees' salaries and benefits, paying its vendors,
maintaining its cash management systems, and to obtain
financing. Trico's proposed payment of its prepetition debts,
such as outstanding payments to the Company's vendors and
service providers, is subject to the approval of the Bankruptcy
Court.

The Company made its bankruptcy filings in accordance with the
Bankruptcy Court's special guidelines for "prepackaged"
bankruptcy cases, pursuant to which Trico solicited and obtained
the consent of its creditors to its plan of reorganization prior
to the filing of the Chapter 11 cases. This pre-filing
solicitation is expected to shorten the duration of Trico's
bankruptcy. Trico expects to emerge from bankruptcy very
quickly, subject to the Bankruptcy Court's approval and hearing
schedule, perhaps in 60 days or less. Trico asked the Bankruptcy
Court to set a plan confirmation hearing date within 30-45 days
from Tuesday, Dec. 21.

Chapter 11 petitions have been filed by the following three
Trico entities: Trico Marine Services, Inc.; Trico Marine
Assets, Inc.; and Trico Marine Operators, Inc. Non-filing
entities not affected by these bankruptcy proceedings include
Trico Marine International, Inc. and the following 11 direct and
indirect foreign affiliates of Trico: Trico Servicos Maritimos
Ltda. (Brazil); Coastal Inland Marine Services Ltd. (Nigeria);
Trico Marine International, Ltd. (Cayman); Trico Marine
International Holdings B.V. (Netherlands); Trico Supply AS
(Norway); Trico Shipping AS (Norway); Trico Supply (UK) Limited
(England & Wales); Albyn Marine Limited (England & Wales); CHH-
Trico PTE Ltd. (Singapore); Servicos de Apoyo Maritimo de
Mexico, S. de R.L. de C.V. (Mexico); and, finally, Naviera
Mexicana de Servicios, S. (Mexico).

The Trico Plan

As part of Trico's plan of reorganization, the holders of the
Senior Notes will receive, in exchange for their total claims
(including principal and accrued and unpaid interest), 100% of
the fully diluted new common stock of the reorganized Trico
Marine Services, Inc., before giving effect to (i) the exercise
of warrants to be distributed to the Company's existing holders
of common stock pursuant to the plan and (ii) a new employee
option plan. On the effective date of the plan of
reorganization, the sole equity interests in the reorganized
Company will consist of the new common stock issued to the
holders of the Senior Notes, the warrants, and options to be
issued to employees.

The Company's obligations under existing operating leases, or
trade credit extended to the Company by its vendors and
suppliers, will be unaffected by the restructuring and will be
paid in full.

Under the terms of the plan, Thomas Fairley will continue as the
Company's Chief Executive Officer, and Trevor Turbidy will
continue as the Company's Chief Financial Officer. Joseph
Compofelice will remain Trico's non-executive Chairman of the
Board of Directors.

Advisors

In connection with the financial restructuring of the Company,
the Company has been represented by Lazard Freres & Co. LLC as
financial advisors and Kirkland & Ellis LLP as legal advisors.
The supporting holders of the Senior Notes have been represented
by Houlihan Lokey Howard & Zukin Capital, Inc. as financial
advisors and by Bingham McCutchen LLP as legal advisors.

The Oil and Gas Exploration Industry

Trico's reorganization follows a period of negative operating
results attributable to weak demand for its vessels in the Gulf
of Mexico and the North Sea. In response, Trico has cut costs to
preserve liquidity, refinanced its credit facilities and sold
some vessels. Other vessels have been relocated to more active
markets to improve operating results. Trico will continue these
measures under its new ownership and capital structure. The
restructuring of Trico is designed to reenergize Trico's efforts
to expand and compete in regions expected to become more active
sites of oil and gas exploration.

About Trico

Trico provides a broad range of marine support services to the
oil and gas industry, primarily in the Gulf of Mexico, the North
Sea, Latin America, and West Africa. The services provided by
the Company's diversified fleet of vessels include the marine
transportation of drilling materials, supplies and crews, and
support for the construction, installation, maintenance and
removal of offshore facilities. Trico has principal offices in
Houma, Louisiana and Houston, Texas.

URL: http://www.tricomarine.com


TV AZTECA: Prepays $69M on $129M, '05 Bond
------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca, S.A. de C.V. (NYSE: TZA), one of the two largest
producers of Spanish-language television programming in
the world, announced that it prepaid Wednesday US$69 million of
principal on its US$129 million outstanding 12 1/2% senior
secured notes due June 15, 2005. The prepaid notes were redeemed
at par.

As previously announced, Azteca Holdings, the owner of 56.6% of
the capital stock of TV Azteca, received approximately US$74
million from the US$130 million distribution to shareholders
made by TV Azteca on December 14, 2004, as part of an ongoing
plan for cash disbursements.  The proceeds were used by the
company to reduce the balance of its indebtedness and will also
be used to pay interest on its outstanding debt.

Azteca Holdings noted the US$69 million prepayment represents a
reduction of approximately 29% of its total outstanding debt,
which gives an additional boost to its capital structure and a
substantial reduction of its interest costs.

Company Profile
Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 56.6% of the capital stock of TV Azteca, S.A.
de C.V.

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country.  TV Azteca's affiliates include Azteca America,
operator of a broadcast television network focused on the
rapidly growing United States Hispanic market; and Todito.com,
operator of an Internet portal for North American Spanish
speakers.



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

NBN: Government Deems Closure Best After a Series of Hardships
--------------------------------------------------------------
The government of Trinidad and Tobago has decided to wind-up
state-owned National Broadcasting Network (NBN), BBC Caribbean
reports. The decision was prompted by the serious financial
difficulties with multi-million dollar losses and falling
viewership and listenership that the company has experienced in
the last five years.

Furthermore, the credibility of the broadcasting house has been
surrounded with doubts, as there have been criticisms that it
has been used as a mouthpiece by governments over the years.

More than 2000 employees are set to get an offer of severance by
the end of December. They will then have until mid-January to
respond.

The severance package the workers have been offered is said to
be a 25% to 30% enhancement of what they would normally get
under the severance act.

The government expects that the group of television and radio
stations will be off the air by mid-February.

The government minister with responsibility for the company, Dr
Lenny Saith said a new state-owned broadcasting entity - the
Caribbean New Media Group, will come into existence six months
after NBN has been closed down.



                            ***********


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,
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members of the same firm for the term of the initial
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