TCRLA_Public/050104.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, January 4, 2005, Vol. 6, Issue 2

                            Headlines


A R G E N T I N A

MUNICH BELGRANO: Court Demands Company Liquidate to Pay Debts
TELECOM ARGENTINA: Summons Bondholders to Meeting
TELEFONICA DE ARGENTINA: Restructures $635M of Debt
* ARGENTINA: Debt Swap Authorized by Italy's CONSOB


B O L I V I A

COEUR D' ALENE: Announces Changes in Senior Management Structure


B R A Z I L

AHOLD: Reaches Agreement on G. Barbosa Sale
CFLCL: Cataguazes-Leopoldina to Launch FIDC Next Month
CFLCL: Brascan to Buy Additional Hydroelectric Assets in Brazil
TCP: Details Unsubscribed Share Second Reoffering Results
TELEMAR: Shareholders Approve Call Center Business Spin-Off


G R E N A D A

* GRENADA: FC Ratings Lowered To 'SD'; Bond Ratings To 'D'


M E X I C O

HYLSAMEX: Expects $39M Dividend Payment From Unit
LUZ Y FUERZA: CFE to Call in MXN5.8 Billion in Debts
SATMEX: Sale Structuring Nears Completion


T R I N I D A D   &   T O B A G O

BWIA: Angry Passengers to Take Collective Action Against Airline


V E N E Z U E L A

PDVSA: To Boost Output to Cater to China, India Demand


     - - - - - - - - - -


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

MUNICH BELGRANO: Court Demands Company Liquidate to Pay Debts
-------------------------------------------------------------
Buenos Aires Court No. 3 ordered the liquidation of Munich
Belgrano S.R.L. 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 Estudio Kullahian Diaz y Asociados, the court-
appointed trustee.

Estudio Kullahian will verify creditors' proofs of claim until
April 21, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on June 3, 2005. The
submission of the general report follows on Aug. 1, 2005.

Clerk no. 5 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Estudio Kullahian Diaz y Asociados, Trustee
         Uruguay 750
         Buenos Aires


TELECOM ARGENTINA: Summons Bondholders to Meeting
-------------------------------------------------
Telecom Argentina calls for a Meeting under Section 45bis of
Argentine Law No. 24,522. In compliance with the court
resolution dated December 6, 2004 issued in the case "TELECOM
ARGENTINA S.A. s/ACUERDO PREVENTIVO EXTRAJUDICIAL" (TELECOM
ARGENTINA S.A. in re. OUT-OF-COURT RE-ORGANIZATION AGREEMENT)
(File No. 47,345) issued by the National Commercial Court No.
19, Judge Adela N. Fernandez, Secretariat No. 38, secretary
Federico S. Johnson, located at Marcelo T. de Alvear 1840,
Ground Floor, City of Buenos Aires, Argentina (the " Court "),
notice is hereby provided for five (5) days to the holders of
the following outstanding notes currently in circulation issued
by Telecom Argentina S.A. (" Telecom "):

- Series C Notes bearing interest at 12% due in 2002 for a total
original principal amount of US$ 200,000,000 (ISIN No.
US879273AE001, CUSIP No. 879273AE0);

- Series E Notes bearing at a rate of LIBOR + 3.125% due in 2005
for a principal amount of US$ 100,000,000 (ISIN No.
XS0076226942);

- Series F Notes bearing interest at 8.875% due in 2007 for an
original principal amount of Italian lira 400,000,000,000 (ISIN
No. XS0076689024);

- Series H Notes bearing interest at 10% (until March 2000) and
at LIBOR + 1.25% (until due date) due in 2008 for an original
principal amount of Italian lira 400,000,000,000 (ISIN No.
XS0084707313);

- Series I Notes bearing interest at 8.375% due in 2004 for a
principal amount of Euro 200,000,000 (ISIN No. XS0096148779);

- Series K Notes bearing interest at 7.25% due in 2002 for a
principal amount of Euro 250,000,000 (ISIN No. XS0099123712);

- Series 1 Notes bearing interest at 7.625% due in 2003 for a
principal amount of Euro 250,000,000 (ISIN No. XS010926086);

- Series 2 Notes bearing interest at 9.50% due in 2004 for a
principal amount of Euro 190,000,000 (ISIN No. XS0131485624);

(together, the " Outstanding Notes ") that, according to the
provisions of Section 45bis of Argentine Law No. 25,522, a
meeting has been convened for all Series of Outstanding Notes
(the " Meeting ") to be held on February 4, 2005, at the legal
domicile of Telecom Argentina S.A., located at Av. Alicia M. de
Justo 50, Ground Floor, City of Buenos Aires, 10 a.m. Buenos
Aires time, in order to consider the following Agenda:

1) Designation of two persons to execute the minutes of the
Meeting along with the person to be appointed by Telecom to
preside over the Meeting.

2) Consideration of the Out-of-Court Reorganization Agreement
proposed by Telecom and election of option(s) if the proposal is
accepted.

Notes:

1) The Outstanding Notes were issued under the following Trust
Indentures:

   a) Series C: Indenture dated November 15, 1995.

   b) Series E, F, H and I: Indenture dated September 1, 1994,
      as amended.

   c) Series K: Indenture dated April 25, 1997, as amended.

   d) Series 1 and 2: Indenture dated March 8, 2000.

2) Telecom's out-of-court-reorganization (the " Proposal ") is
included in the document named " Acuerdo Preventivo
Extrajudicial" executed by Telecom on August 26, 2004, and its
schedules, including the Solicitation Statement dated June 22,
2004 (as amended on July 9, 2004) and the form of Indenture,
which are available at Telecom's web page
(http://telecom.com.ar/reestructuracion/default.htm)and in
Telecom's legal domicile located at Av. Alicia M. de Justo 50,
City of Buenos Aires, Argentina. These documents are also
available at the Court's offices and at the New York offices of
Marval, O'Farrell & Mairal, at 509 Madison Avenue, Suite 506,
New York, NY, 10022-5501, USA.

3) In accordance with the Court resolution calling the Meeting,
the Meeting shall be presided over by a person to be appointed
by Telecom for this purpose. Two inspectors appointed by the
Court, Mr. Mario E. Kaminker and Mr. Jorge D. Grispo, domiciled
in Avenida Carlos Pellegrini 961, 5 floor, Buenos Aires,
Argentina, shall also be present. There will be only one
deliberation but there will be a vote for each of the Series of
the Outstanding Notes in a successive and independent manner.

4) For purposes of registration to attend the Meeting, the
holders of the Outstanding Notes shall present and submit on or
before January 31, 2005, from 10 a.m. to 12 a.m. and from 3 p.m.
to 5 p.m., Buenos Aires time, in Telecom Argentina S.A.'s legal
domicile located at Av. Alicia M. de Justo 50, 13 floor, City of
Buenos Aires, Argentina, the following documentation:

      a) A noteholders' meeting registration form duly completed
and executed, available at Telecom's web page
(http://telecom.com.ar/reestructuracion/default.htm)and at
Telecom's legal domicile mentioned above;

      b) in the event of attendance in person: the attendee must
deliver a certificate issued in its name by (i) Caja de Valores
S.A. (Argentine securities depository system) pursuant to
Section 4(e) of Argentine Decree 677/01; or (ii) a non-Argentine
securities depository system (DTC, Euroclear or Clearstream,
Luxemburg), evidencing the registered participant's ownership in
said system, in respect of the Outstanding Notes. The
abovementioned certificates must state the ownership, quantity,
amount of the Series' Notes in question, account number and that
the Notes are blocked. Registered participants in the securities
depositary system may, upon presentation of evidence of their
status as registered participants and at their client's request,
issue a certificate allowing their clients to attend the
Meeting; and

      c) in the event of attendance through a representative:
the representative must deliver (i) the certificate/s described
in (b) above; and (ii) a power-of-attorney granted by the
principal, expressly providing the representative with
sufficient powers to attend and vote at the Meeting, and a
written statement as to the vote cast by the holder of the
Outstanding Notes, and reference to the option(s) chosen if the
Proposal is accepted. The Letters of Transmittal that contain
irrevocable powers-of-attorney in favor of The Bank of New York
and the Associazione per la Tutela degli Investitori in Titoli
Argentini (that contain the vote and the option's election),
that are filed with the Court's File, shall be registered to
attend the Meeting, once the respective noteholders' meeting
registration forms are received, and according with the evidence
of ownership of the principal arising out of the relevant
individual or plural documentation. The Letters of Transmittal
may be consulted by any interested person at the Court's
location.

5) All documents and certificates to be submitted at the Meeting
that were executed in Argentina must be submitted and delivered
with the signatures attested by a public notary whose signature
has been authenticated by the Association of Public Notaries
(Colegio de Escribanos) of the corresponding jurisdiction, if
the public notary is from a jurisdiction in Argentina other than
the City of Buenos Aires. All documents executed outside
Argentina must be delivered with the signatures attested by a
public notary and legalized by either the "Apostille" of the
Hague Convention of 1961 or by the pertinent Argentine Consulate
and the Ministry of Foreign Affairs and Cult of the Argentine
Republic. In addition, all documents executed in a language
other than Spanish must be translated into Spanish by an
Argentine public translator whose signature has been legalized
by the Association of Public Translators of the City of Buenos
Aires (Colegio de Traductores PŁblicos de la Ciudad de Buenos
Aires).

6) The holders of Outstanding Notes are hereby notified that:
(a) the failure to duly provide notice of attendance in proper
time and form shall result in the loss of the right to attend
and participate at the Meeting; and (b) the Outstanding Notes
held by those holders who do not attend the Meeting or who
attend the Meeting and abstain from voting, shall not be
computed for purposes of calculating the majorities required by
law for the endorsement of the Out-of-Court Reorganization
Agreement.

7) The holders of the Outstanding Notes are hereby notified that
only those who have been duly registered to participate in the
Meeting will be admitted thereto.

8) The minutes of the Meeting and the result of the vote
obtained at such meeting shall be notarized before a notary
public and filed with the Court.

Telecom shall adopt all measures necessary to ensure compliance
with the legal requirements imposed by applicable law, including
the securities laws of the Republic of Argentina and any other
applicable jurisdiction.

This notice relates solely to the Meeting to be convened under
Argentine law at the request of the Court. The Acuerdo
Preventivo Extrajudicial was executed by Telecom on August 26,
2004. This notice is not a solicitation of consents to execute
the Acuerdo Preventivo Extrajudicial pursuant to the
Solicitation Statement. Reference to the Solicitation Statement
is included as a matter of record and for informational purposes
only.


TELEFONICA DE ARGENTINA: Restructures $635M of Debt
---------------------------------------------------
Telefonica de Argentina (NYSE: TAR) was able to refinance two
loans worth US$635 million originally secured with controlling
company Telefonica Internacional, reports Business News
Americas.

The fixed-line carrier renewed the loan for six months with an
interest rate of Libor plus 5.5%. This amount represents almost
50% of the company's total debt.

To reduce its debt in foreign currency, Telefonica Argentina has
issued two series of bonds on the local stock market and
requested authorization for a third issue. TAR has now five
debentures issued on the local market worth US$700 million and
due from 2006-2011.

CONTACT:  TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar


* ARGENTINA: Debt Swap Authorized by Italy's CONSOB
---------------------------------------------------
Italian securities regulator, CONSOB, approved Thursday the
offering documents for Argentina's US$103 billion debt
restructuring. The approval clears the way for Argentina to
proceed with launching its global offering to swap up to US$43
billion in new, restructured bonds for a face value of US$81.8
billion in defaulted bonds, according to Economy Ministry
spokesman Armando Torres. The U.S. Securities and Exchange
Commission also gave its approval last week to all underlying
documents.

The debt swap is scheduled to begin on Jan. 17 and is likely to
go ahead now that the United States and Italy have given their
approval.

CONSOB had been the biggest concern for the Argentine
government. With an estimated 500,000 small bondholders residing
in Italy, approval there was considered essential, especially
given that the government intends to open its exchange with a
special three-week period during which small bondholders will
get preferential access to certain bonds.



=============
B O L I V I A
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COEUR D' ALENE: Announces Changes in Senior Management Structure
----------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer, announced that, effective December 31,
2004, Harry Cougher will become Coeur's Senior Vice President of
North American Operations and Robert Martinez has chosen to
retire from the positions of President and Chief Operating
Officer. Dennis E. Wheeler, Coeur's Chairman and Chief Executive
Officer, will assume the title of President.

"These changes will solidify Coeur's senior management structure
as we poise ourselves for operational growth in North America
beginning in 2005," said Mr. Wheeler. "With Harry now
responsible for our North American initiatives and Ray
Threlkeld, President South American Operations, continuing to
head up Coeur's South American activities, I believe we have the
organizational structure in place to deliver the optimal results
from our new projects and current operations. Additionally, I
would like to take this opportunity to thank Bob Martinez for
his significant contributions to Coeur over his fifteen years
with the Company and wish him a most enjoyable retirement."

Mr. Wheeler continued, "In addition to the ongoing expansion
plan at our Silver Valley underground operations in Idaho, we
plan to begin developing our Kensington underground gold project
in Alaska during 2005. With nearly thirty-nine years of
underground mining experience, Harry is perfectly suited to lead
these efforts."

Since 2001, Mr. Cougher has been the Vice President and General
Manager of Coeur Silver Valley. In addition to his newly
expanded role, Mr. Cougher will continue to be responsible for
the Silver Valley operations.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.



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B R A Z I L
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AHOLD: Reaches Agreement on G. Barbosa Sale
-------------------------------------------
Ahold announced Friday that it has signed an agreement to sell
its Brazilian retail chain G. Barbosa Comercial Ltda. to an
affiliate of ACON Investments, a U.S.-based investment firm
which has other retailing investments in Latin America. This
transaction is expected to close in the first quarter of 2005,
and is subject to satisfaction of various closing conditions.

G. Barbosa is a food retailer with 32 hypermarkets and
supermarkets with a strong position in the states of Sergipe and
Bahia in the North East of Brazil. G. Barbosa also operates its
in-store credit card CrediHiper.

The divestment of Ahold's activities in Brazil is part of
Ahold's strategy to optimize its portfolio and to strengthen its
financial position by reducing debt. With this transaction,
Ahold has completed its Brazilian divestment program.
ADVERTISEMENT

CONTACT:  Ahold Corporate Communications
          +31.75.659.5720


CFLCL: Cataguazes-Leopoldina to Launch FIDC Next Month
------------------------------------------------------
By February 2005, the Cataguazes-Leopoldina System will be
launching Senior Quotas of Receivables Investment Fund (Fundo de
Investimento em Direitos Creditorios - FIDC), with a 20-year
maturity guaranteed by the accounts receivables of the Group's
five distributors (CFLCL, CENF, CELB, Sergipe and Saelpa). The
first issue of the fund securities will be for BRL 230 million,
with 210 million in senior quotas and BRL 30 million in
subordinate quotas, for a time period of 36 months with six
months grace period and a maximum return of 109%.

The FIDC is part of Cataguazes-Leopoldina System's strategy to
seek alternative sources of medium and long term credit, since
financing for the electric sector has basically become
centralized in BNDES in recent years. On the other hand, credit
operations in the national banking market are not yet compatible
with the maturation of the investments of companies in the
sector and with regulated remuneration.

According to Mr. MaurĄcio Botelho, Cataguazes-Leopoldina
System's Financial and Investor Relations Vice-President, the
advantage of the Investment Fund the Group will create is the
spreading of receivables so as to minimize credit risk. Mr.
Botelho emphasizes that the chosen receivables for the first
series of securities to be issued are from the Group B consumers
(residential and public bodies, for example) in seven
municipalities served by the Cataguazes-Leopoldina System, which
possess a high average of payment compliance.

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

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


CFLCL: Brascan to Buy Additional Hydroelectric Assets in Brazil
---------------------------------------------------------------
Brascan Corporation (TSX:BNN.LV.A)(NYSE:BNN), through its
subsidiary Brascan Energetica signed an agreement to acquire six
hydroelectric power plants with a combined installed capacity of
76 MW, from Companhia de Forca e Luz Cataguazes Leopoldina
(CFLCL) in Brazil for BRL250.2 million, equivalent to
approximately CDN115 million.

The six facilities will be operated by Brascan Energetica. All
power generated by these facilities is under long-term contract
with CFLCL with an average term exceeding 20 years.

"The addition of these six facilities to our existing portfolio
of five facilities in Brazil will provide a solid platform for
continued growth of our power operations in this country," said
Harry Goldgut, Co-Chair and Chief Executive Officer of Brascan
Power.

The transaction is expected to close by February 28, 2005,
conditional to approvals by the regulatory authority and
lenders.

Brascan Corporation is an asset management company. With a focus
on real estate and power generation, the company has direct
investments of US$19 billion and a further US$7 billion of
assets under management. This includes 70 premier office
properties and 120 power generating plants. The company is
listed on the New York and Toronto stock exchanges under the
symbols BNN and BNN.LV.A respectively.

CONTACT: Brascan Power
         Shelley Moorhead
         Director, Corporate Communications & Investor Relations
         (819) 561-8072
         Fax: (819) 561-7188
         E-mail: shelley.moorhead@brascanpower.com


TCP: Details Unsubscribed Share Second Reoffering Results
---------------------------------------------------------
Telesp Celular Participacoes S.A. (NYSE: TCP) (BOVESPA: TSPP3
(Common), TSPP4 (Preferred)) ("TCP") announced Thursday, based
on information provided by Banco ABN Amro Real S.A., the
registrar for the Company's shares, (i) the number of remaining
common shares (ON), preferred shares (PN) and American
Depositary Shares (ADSs), subscribed for in the Brazilian and
U.S. markets, respectively, during the second reoffering round
of unsubscribed shares, which began on December 27, 2004 and
ended on December 29, 2004; (ii) the total number of shares
subscribed in the Brazilian and U.S. markets through December
29, 2004; and (iii) the number of remaining unsubscribed shares
to be available for subscription in a public auction that will
be held at the Sao Paulo Stock Exchange (BOVESPA) on January 4,
2005. Second Reoffering Round -- Shares Subscribed -- Brazilian
and U.S. Markets

Common     (%)(1)  Preferred   (%)(2)    TOTAL     (%)(3)
Shares               Shares
89,760,346   99.90% 344,245,178  98.85%  434,005,524 99.07%

Summary of Rights Offering Results (Initial Preemptive Rights
exercise Period + First Reoffering Round + Second

                              Reoffering Round)

Common   (%)(1)  Preferred  (%)(2)      TOTAL      (%)(3)
Shares             Shares
             (including preferred
              shares underlying
                    ADSs)

143,512,975,688 99.99% 267,262,109,122 99.99% 410,775,084,810
99.99% Unsubscribed Shares Available for Subscription in Public
Auction at BOVESPA on

                 January 4, 2005 at 3:00 p.m. Sao Paulo Time

Common Shares (%)(1)  Preferred Shares  (%)(2) TOTAL  (%)(3)
  90,930       0.01%    3,998,554        0.01% 4,089,484   0.01%

The Company will offer the remaining unsubscribed shares in a
special public auction at the Sao Paulo Stock Exchange, through
the exchange's Megabolsa electronic system, on January 4, 2005,
from 3:00 p.m. (15:00) to 3:15 p.m. (15:15) Sao Paulo time, at
the minimum subscription price of R$ 5.00 for 1,000 shares.

    (1) Percentage of common shares offered
    (2) Percentage of preferred shares offered
    (3) Percentage of total shares offered

The shares that will be offered in the public auction have not
been registered under the U.S. Securities Act of 1933, as
amended (the "Securities Act") and may not be offered or sold in
the United States of America or to any U.S. person (as such term
is defined under Regulation S under the Securities Act), unless
such securities are registered under the Securities Act or an
exemption from the registration requirements of the Securities
Act applies.

CONTACT:  VIVO - Investor Relations
          Telephone: +55 11 5105-1172
          Email: ir@vivo.com.br


TELEMAR: Shareholders Approve Call Center Business Spin-Off
-----------------------------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), announced that,
at a General Shareholders' Meeting held Wednesday at the
Company's Headquarters in Rio, the Company approved the spin-off
of its call center subsidiary, Contax Participacoes S.A.
("Contax"). This transaction was object of a Relevant Fact
issued by TNE on November 26, 2004.

The Shareholders of TNE also approved the execution of all the
formalities required to enforce that decision, including new
service agreements between Contax and Telemar Norte Leste S.A.
("TMAR") and between Contax and TNL PCS S.A. ("Oi").
As a result of the meeting:

(a) The Capital of TNE was reduced by R$277.5 million,
corresponding to the investment held by TNE in Contax, with the
subsequent change in the Company's Bylaws to reflect that
reduction. The new Capital of TNE became R$4,534,492,867.62,
represented by a total of 387,918,872 shares, with 129,306,291
common shares and 258,612,581 preferred shares.

(b) All shareholders of TNE will be entitled to shares of Contax
in the same proportion of their stake in TNE (one common or
preferred share of Contax per one common or preferred share held
at TNE). It is important to note that TNE shares will only start
trading "ex-rights of receiving Contax shares" after a minimum
period of 60 (sixty) days, which is the required legal time for
opposition by TNE lenders. At a closer date to that maturity,
TNE will issue a new press release indicating the effective "ex-
date" as well as the dates on which Contax shares will be
transferred to TNE shareholders and will start trading at the
Bovespa. Such release will also indicate the basic procedures
for the receipt of the new Contax shares by TNE shareholders and
TNE ADR holders.

CONTACT: TNE - INVESTOR RELATIONS
         Roberto Terziani
         E-mail: invest@telemar.com.br
         Tel: 55 21 3131 1208
         Fax: 55 21 3131 1155

         Carlos Lacerda
         E-mail: carlosl@telemar.com.br
         55 21 3131 1314
         Fax: 55 21 3131 1155

         THE GLOBAL CONSULTING GROUP
         Kevin Kirkeby
         E-mail: kkirkeby@hfgcg.com
         Tel: 1-646-284-9416
         Fax: 1-646-284-9494



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

* GRENADA: FC Ratings Lowered To 'SD'; Bond Ratings To 'D'
----------------------------------------------------------
Standard & Poor's Rating Services lowered its ratings on
Grenada's US$100 million bond due 2012 and the US$41.5 million
Royal Bank of Trinidad & Tobago (RBTT) Merchant Bank Ltd. bond
due 2014 to 'D' from 'B-', following the government's failure to
make its interest payments on the bonds on Dec. 29 and 24,
respectively. At the same time, Standard & Poor's Ratings
Services lowered its long-term foreign currency sovereign rating
on Grenada to 'SD' from 'B-' and its short-term foreign currency
sovereign credit rating to 'SD' from 'C'.

Standard & Poor's also lowered its long-term local currency
sovereign credit rating on Grenada to 'CCC' from 'B-'. The long-
term ratings on Grenada have been removed from CreditWatch with
negative implications, where they were placed on Sept. 17, 2004.
The long-term local currency rating has been assigned a negative
outlook.

According to Standard and Poor's Ratings Services credit analyst
Olga Kalinina, the rating actions are based upon the
government's announcement Wednesday that it would start a
comprehensive restructuring of its official bilateral and
commercial financial external debt, estimated at 68% of GDP in
2004. Negotiations with creditors are expected to begin in early
2005. The restructuring will include, among other debt
instruments, the aforementioned US$100 million bond and the
US$41.5 million RBTT Merchant Bank Ltd. bond.

"When the debt restructuring is complete, Standard & Poor's will
revise its 'SD' rating to a rating that incorporates a forward-
looking assessment of Grenada's debt-servicing capacity," Ms.
Kalinina said.

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

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



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

HYLSAMEX: Expects $39M Dividend Payment From Unit
-------------------------------------------------
Mexican steel maker is anticipating a MXN432-million (US$38.4mn)
dividend payment from its subsidiary unit Hylsa. Business News
Americas reports that Hylsa agreed to make the payment at the
company's extraordinary general meeting held last Tuesday. The
total dividend represents a payment of MXN0.0680 per share with
tax of MXN19.9 million to be paid on it.

Shares in Hylsamex have risen 412% to MXN34.70 on Mexico City's
stock exchange (BMV) since the beginning of January 2004. The
shares are expected to rise even more in 2005, albeit not as
dramatically, as steel prices are expected to continue to rise
and then taper off in the second half of next year.

Hylsamex reduced debt 42% during the first nine months of 2004
to US$587 million, while subsidiaries Hylsa and Galvak secured
US$335 million in bank loans to refinance debt.

CONTACT: HYLSAMEX, S.A. de C.V.
         Othon Diaz Del Guante
         Tel: (52-81) 8865-1240
         E-mail: odiaz@hylsamex.com.mx

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


LUZ Y FUERZA: CFE to Call in MXN5.8 Billion in Debts
----------------------------------------------------
Mexico's state power company CFE will call in MXN5.8 billion in
debts from state-owned distributor Luz y Fuerza (LFC), reports
Business News Americas. The move is designed to help cover a
MXN14.5-billion (US$1.31bn) one-off payment to the treasury
department. CFE will also call in MXN6.34 billion from the
federal water commission (CAN). CFE's overall debt at end-
September 2004 was MXN249 billion, more than twice its annual
sales revenues.


SATMEX: Sale Structuring Nears Completion
-----------------------------------------
Plans to sell Satelites Mexicanos (Satmex) are expected to be
finalized this month, El Economista suggests. Company sources
are almost certain that the transaction will proceed following
the company's recent failure to pay US$188 million in debt owed
to the government.

However, certain hurdles remain to be negotiated because the
satellite communications company has not yet reached an
agreement with creditors on a definitive debt restructure.

One detail is the interest percentages to be paid and the fresh
capital that will be injected. Another major obstacle to the
deal being reached is the sale value, as it would not be enough
to cover the whole debt of US$540 million.

Moreover, the company still has no launch date for Satmex VI
after it was postponed in 2003 and it does not have enough money
to finance putting it in orbit.

Satmex V is working at 80-90% of capacity and Solidaridad II has
suffered recent faults.



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

BWIA: Angry Passengers to Take Collective Action Against Airline
----------------------------------------------------------------
Disgruntled passengers of BWIA, who are based in London, plan to
form a group, which will air passengers' frustrations against
the struggling airline, says Trinidad Express. The group, which
is being coordinated by Sam Jones and Krishna Persaud, is being
formed amid a series of flight delays and baggage problems that
BWIA is experiencing due to increased travel demand and crew and
equipment constraints.

The coordinators said they are compiling a list of BWIA
travellers from Europe, North America and the Caribbean to
gather information on bad experiences "inflicted on us at the
hands of BWIA and to work together in getting air travel for
work or pleasure less unhappy".

Passengers and customers of BWIA who have experienced problems
with the airline within the past two years are being asked to
relate their experiences with the airline.

They can use the e-mail address bwiasadness@yahoo.co.uk to
communicate their experiences, the group said, adding that it
proposed holding a group discussion in mid-January on the rights
of passengers.

CONTACT:  BRITISH WEST INDIES AIRWAYS
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)



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

PDVSA: To Boost Output to Cater to China, India Demand
------------------------------------------------------
Venezuela's state oil firm PDVSA plans to increase its
production to meet growing demand in China and India, reports
Business News Americas. But foreign affairs minister Ali
Rodriguez Araque assured US exports will not be compromised.

"The goal is not to reduce supplies to traditional clients, like
the US. PDVSA's business plan is aimed at increasing the
production capacity to meet the demand of that country and new
requirements in other countries," he added.

Venezuela's President Hugo Chavez recently signed agreements
with China to increase Venezuelan oil exports to that country,
but Rodriguez said they would not be at the cost of US exports.

"As it is a necessity for the consuming countries, so it is for
the producing countries to diversify their sources of supply,"
Mr. Rodriguez said.

Meanwhile, state oil company PDVSA has guaranteed gasoline and
diesel supplies in the state of Zulia and the rest of the
country despite press reports of shortages, Ronmel Rangel, CEO
of the company's downstream unit Distribucion Venezuela, said in
a statement.

Some service stations in Zulia have demanded higher volumes of
fuel deliveries, "but this request is not possible at the
moment, taking into account the control of volumes for each
service station managed by the energy and mines ministry, which
is adjusted to the demand of consumers in these regions," Mr.
Rangel said.

Current inventories at national distribution plants are at an
average level to guarantee supplies for returning vacationers
without problems, added Mr. Rangel.


                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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