TCRLA_Public/050110.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, January 10, 2005, Vol. 6, Issue 5



AHOLD: Past Corporate Affairs Under Scrutiny
CANBOT S.A.: Reorganization Concluded
CRESUD: Note Holders Exercise Warrants
EDEMSA: S&P Maintains Default Rating on Bonds
EDITORIAL PERFIL: $25M in Bonds Remain in Default

GEJAMAS S.A.: Court Rules for Liquidation
SURENA PAPELES S.A.: Liquidation Reverts to Reorganization
TELECOM ARGENTINA: Introducing New Fixed-Line Unit
TRANSFRIGO S.R.L.: Enters Bankruptcy on Court Orders


CEMIG: Records 24.6% Net Profit Rise in 2004
VARIG: Scrambles to Cut Debts to Stay Afloat

D O M I N I C A N   R E P U B L I C

EDESUR/EDENORTE: Government Revising Buyback Contract


* HAITI: Secures US$73Mln World Bank Loan Arrangement


GRUPO DESC: Suspends SEC Reporting Obligations
GRUPO TMM: Details Court's Positive VAT Decision
MINERA AUTLAN: Praises Trade Modification Regulations
NII HOLDINGS: Comsat to Provide Backbone Services in LatAm
SATMEX: Seeks Restructuring Agreement With Creditors

TV AZTECA: Fitch Comments on Recent SEC Suit
TV AZTECA: CNBV Completes Probe, Enters Notification Phase
TV AZTECA: Analysts Say SEC Suit Puts Shares at High Risk


BCP: S&P Leaves Ratings Unchanged Following Portfolio Buy

     - - - - - - - - - -


AHOLD: Past Corporate Affairs Under Scrutiny
Ahold announced Thursday that the Enterprise Chamber of the
Amsterdam Court of Appeal has ordered an inquiry into the
conduct of certain actions of Ahold during the period from
January 1, 1998 through December 18, 2003. The request for the
inquiry was submitted in February 2004 by the Vereniging van
Effectenbezitters ("VEB") and several other shareholders.

The inquiry is limited to the following subjects: consolidation
of joint ventures, Ahold's acquisition of its subsidiary U.S.
Foodservice and Ahold's supervision on the organization and
operation of internal controls of subsidiaries, including U.S.
Foodservice. All other requests for inquiry made by the
petitioners have been rejected by the Enterprise Chamber,
including all challenges of policies pursued after February 24,
2003. Also, the request for precautionary measures, which might
have interfered with present management policies, has been

Peter Wakkie, member of the Ahold Executive Board and Chief
Corporate Governance Counsel, commented that "Recently, two
important investigations with respect to the Company have been
completed. Settlements have been effected with the Dutch Public
Prosecutions Department and, without a fine, with the SEC. This
was primarily due to the fact that Ahold has cooperated fully in
these investigations and to the major recovery measures we have
taken. We will also fully co-operate with this inquiry, ordered
by the Enterprise Chamber. Ahold will attempt to ensure that the
inquiry will be concluded as soon as possible in the interest of
its shareholders and other stakeholders." The subject of the
inquiry is not to seek damages from Ahold.

CANBOT S.A.: Reorganization Concluded
The settlement plan proposed by Canbot S.A. for its creditors
acquired the number of votes necessary for confirmation. As
such, the plan has been endorsed by the court and will now be
implemented by the Company.

CONTACT: Canbot S.A.
         Rivadavia 84 - Adrogue 1846 Buenos Aires
         Phone/Fax: (+5411)4214-1002/3/4

CRESUD: Note Holders Exercise Warrants
By letter dated January 03, 2005, the Company reported that on
December 31, 2004 holders of Company's Convertible Notes that
already had exercised their conversion right exercised their
warrant rights. Hence, a reduction of 1,121,505 warrants and an
increase of 2,208,554 ordinary shares face value pesos 1 (V$N 1)
each was made. As a result, the amount of shares of the Company
goes from 153,508,988 to 155,717,542. The amount of warrants in
circulation is 42,164,361. The exercised of the warrant was
performed according to terms and conditions established in the
prospectus of issuance. The amount of shares acquired is equal
to the amount of shares into which it was converted the
convertible note at a price of US$ 0.6093 for each share face
value pesos 1. Therefore US$ 1,345,671.95 entered into the

CONTACT: Cresud S.A.C.I.F. y A
         Av. Roque Saenz Pena 832
         8th Fl.
         Buenos Aires
         Phone: 001-54-1-3287808

EDEMSA: S&P Maintains Default Rating on Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained its default ratings on US$150 million bonds issued by
Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA).

The bond issue described as "Programa de emisi>n de Obligaciones
Negociables simples" earned the `D' rating based on EDEMSA's
financial standing as of September 30, 2004, says CNV.

A `D' rating is assigned when the issuer has filed for
bankruptcy or when interest or principal payments are not made
on the due date, even if the applicable grace period has not
expired, unless S&P believes that such payments will be made
during such grace period.

The bond issue is set to mature on April 13 this year.

CONTACT : Empresa Distribuidora de Electricidad de Mendoza S.A.
          San Martin 322 (5500)

EDITORIAL PERFIL: $25M in Bonds Remain in Default
Some US$25 million worth of corporate bonds issued by Editorial
Perfil S.A. remain in default, says Argentine securities
regulator Comision Nacional de Valores.

Fitch Argentina Calificadora de Riesgo reaffirmed the `D(arg)'
rating assigned to bonds described as "Primera serie de
obligaciones Negociables." The maturity of such issue was not

The rating action is based on the Company's finances as of
September 30, 2004.

GEJAMAS S.A.: Court Rules for Liquidation
Court No. 4 of Mercedes' civil and commercial tribunal ordered
the liquidation of Gejamas S.A. after the Company defaulted on
its obligations, Infobae reveals. The pronouncement will
effectively place the Company's affairs as well as its assets
under the control of Mr. Jose Luis Carriquiry, the court-
appointed trustee.

Mr. Carriquiry will verify creditors' proofs of claims until
March 4. The verified claims will serve as basis for the
individual reports to be submitted in court on April 19. The
submission of the general report follows on June 01.

The city's Clerk No. 7 assists the court on this case that will
end with the disposal of the Company's assets in favor of its

CONTACT: Gejamas S.A.
         12 de Octubre 2068

         Mr. Jose Luis Carriquiry, Trustee
         Calle 40 Nro. 726

SURENA PAPELES S.A.: Liquidation Reverts to Reorganization
Surena Papeles S.A. proceeds with reorganization after Court No.
2 of Bahia Blanca's civil and commercial tribunal converted the
Company's ongoing bankruptcy case into a "concurso preventivo",
states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.

Creditors of the Company have until March 15 to submit proof of
their claims to the trustee for authentication.

CONTACT: Surena Papeles S.A.
         Ramon y Cajal 4249
         Bahia Blanca

TELECOM ARGENTINA: Introducing New Fixed-Line Unit
Argentine telco Telecom Argentina (NYSE: TEO) said it has
created a unit exclusively oriented to the fixed-line market,
reports Business News Americas.

The Company named former strategy and wholesale operations
director, Edmundo Poggio, as the new general director for the
fixed-line unit.

The new unit has the same degree of autonomy as the mobile unit
Telecom Personal. Both divisions will report directly to CEO
Carlos Felices.

Meanwhile, Carlos Felices has been appointed as Telecom
Personal's interim general director.

          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Home Page:

          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109

TRANSFRIGO S.R.L.: Enters Bankruptcy on Court Orders
Transfrigo S.R.L. will enter bankruptcy protection after Court
No. 3 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 5, 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. Ulderico Luis
Laudren as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on March 31.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on May 12 followed by the general report that is due on June 27.

CONTACT: Mr. Ulderico Luis Laudren, Trustee
         Libertad 293
         Buenos Aires


CEMIG: Records 24.6% Net Profit Rise in 2004
Cemig hereby advises stockholders and investors of its
preliminary, unaudited, consolidated financial results for 2004:

- Net profit: R$ 1.493 billion, or R$ 9.21 per thousand shares-
an increase of 24.6% over the net profit of R$ 1.198 billion for

- Net revenue of approximately R$ 6.749 billion.

- Ebitda (net profit before interest, tax, depreciation and
amortization) of R$ 2.390 billion, an increase of 33% over 2003.

The following items are included in these results:

- Regulatory assets arising from the recovery of an amount of R$
342.7 million in Cofins tax not covered by the present tariff.

- A capital gain of R$ 102.2 million on the sale of 40% of the
total capital of Gasmig.

- An adjustment (of R$ 51 million) in operational expenses,
arising from the receipt of the CVA credits, included in the
present tariff.

These results are subject to possible changes before their final
publication, following final calculations of amounts relating to
the Company's operations, events subsequent to this present
announcement, and subsequent validation by the Company's

Total electricity sales in 2004 were approximately 35.966 GWh,
3.1% more than in 2003. The Company's capital expenditure in
2004 totaled R$ 888.9 million, a highlight being the acquisition
of 100% of the shares of Rosal Energia S.A., for R$ 134 million.

In a meeting on 17 December the Board of Directors approved the
financial basis of the capital expenditure program for 2005, in
the amount of R$ 1.2897 billion, of which R$ 564.8 million will
be for expansion of generation and transmission, R$ 552.7
million for expansion of distribution, and R$ 172.2 million for
investments to be made by Cemig Holding.

Additionally, subject to entry of the funds, the following
special projects, arising from the undertaking to universalize
electricity service assumed by the Company under the concession
contract, were approved:

- The Luz Para Todos ("Light For All") special project, under
the aegis of the federal program for universalization of
electricity service, in accordance with Law 10438 of 26 April
2002, for a total of R$ 575.1 million (five hundred and five
million one hundred thousand Reais), to be made possible with
funds originating from the federal government (CDE and RGR), on
a sinking fund basis and/or with costs subsidized in accordance
with Board Decision CRCA 142/04 of 9 November 2004;

- Medium and low-voltage works projects for a total of R$ 123
million (one hundred and twenty-three million Reais) to be
financed with funds entirely provided by consumers.

CONTACT: Cemig - Companhia Energetica
         AV. Barbacenda 1200
         Bello Horizonte MG, 30161-970

VARIG: Scrambles to Cut Debts to Stay Afloat
Heavily indebted Brazilian carrier Varig intends to slash debts
soon in order to ensure the continuity of its business, the AP

To do this, the Company, which has an estimated BRL6 billion
debt, said it will use the proceeds of a December court decision
expected to give the carrier about BRL2 billion ($1=BRL2.723)
for losses from government-imposed price controls on airline
ticket prices in the late 1980s and early 1990s.

But the Company may have to wait a while longer to get the
money, as the government has said it will appeal the decision to
the Supreme Court. As such, Varig will have no other choice but
to cut less profitable domestic routes.

Brazilian officials have made it clear they want to make sure
Varig keeps flying. The Company is Brazil's No. 1 airline, has
been operating since 1927 and is a source of deep national

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page:
              Dorival Ramos Schultz, EVP Finance and CFO

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

D O M I N I C A N   R E P U B L I C

EDESUR/EDENORTE: Government Revising Buyback Contract
Ruben Bichara, administrator of Dominican Republic power
distribution Company EdeSur, said the government is in the
process of revising the buyback contract of Edesur and fellow
power distribution Company Edenorte from Spain's Union Fenosa,
reports DR1 Daily News.

According to him, the agreement reached by the past
administration calls for the retaining of almost RD$200 million
month in revenues from the better paying clients for meeting the
debt authorized by the Mejia government to the otherwise
collapsed power distribution companies.

Meanwhile, Bichara announced that they have detected and put an
end to fraudulent operations of RD$800 million carried out by
EdeSur employees.


* HAITI: Secures US$73Mln World Bank Loan Arrangement
The World Bank Group's Board of Directors approved Thursday a
package of $73 million in credits and grants for Haiti and
endorsed a Transitional Support Strategy which projects up to
$150 million in credit and grant commitments over a two-year
period.  The package of loans approved today includes an
Economic Governance Reform Operation of $61 million and an
Emergency Recovery and Disaster Management Project of $12
million from the International Development Association, the
Bank's concessional window. This assistance includes $36 million
available as grants and $37 million as zero-interest credits.

"The chief goal of the Bank is to help the Government deliver
urgently needed basic services to the Haitian people and
strengthen the transparency and credibility of public
institutions," said World Bank President James Wolfensohn.
"Given the urgent need to support recovery efforts in the
country, we plan to disburse $46 million of this assistance in
the next couple of days."

An estimated 76 percent of Haiti's 8 million people live in
poverty and income inequality is among the highest in the world.
The two-year strategy aims to restore hope by supporting the
provision of basic services and creating jobs, rehabilitating
areas devastated by floods in 2004, and working with communities
to support local development. The strategy also seeks to restore
credibility in Haiti's public institutions by strengthening
economic governance, bolstering efforts to fight corruption,
improve transparency, strengthen institutions, and promote
inclusion and consensus on development priorities.

The Bank's Transitional Support Strategy was developed in
coordination with other donors, in consultation with government
and civil society, and on the basis of the Interim Cooperation
Framework (ICF), the Transitional Government of Haiti's two-year
program supported by donors. The ICF was prepared in 2004
through a joint international effort led by the Government of
Haiti with the coordination support of the World Bank, UNDP, the
Inter-American Development Bank, and the European Union. The
preparation of the ICF included the participation of 26
bilateral and multilateral agencies, UN agencies, civil society
and the private sector. In July 2004, donors pledged over $1
billion to support the ICF, including $150 million pledged by
the Bank.

Clearance of Arrears

On January 4, 2005, Haiti settled $52.6 million in overdue
service payments to the Bank using its own reserves and a
US$12.7 million grant contribution from Canada. This paved the
way for the Bank to reinstate the country's rights to make
withdrawals under credit and grant agreements. With the
exception of special grant programs, disbursements had been
suspended since January 30, 2001, due to the accumulation of
overdue payments to the Bank.

Economic Governance Reform Operation

The $61 million Economic Governance Reform Operation aims to
restore credibility in Haiti's public institutions by increasing
transparency and efficiency in the use of public resources and
external assistance. In particular, the operation will support
reforms in budget management and financial controls, strengthen
the public sector's institutional capacity in human resources
management and  procurement, and an anti-corruption strategy. In
addition the operation will promote economic governance reforms
at the sectoral level, including to strengthen a road
maintenance fund, key public enterprises and public-private
partnerships to increase access to health and education
services. Civil society organizations and representatives from
the private sector will be involved in monitoring and evaluating
Government reforms supported by the operation.

The $61 million IDA operation will be financed through a SDR
24.3 million (US$36.5 million) credit and a SDR 16.4 million
(US$24.5 million) grant.

Emergency Recovery and Disaster Management Project

The $12 million Emergency Recovery and Disaster Management
Project aims to rehabilitate areas of the country that were
devastated by floods in 2004, strengthen the country's capacity
to manage disaster risks and respond to emergencies, and reduce
vulnerability of local communities while mitigating the effects
of future disasters.  Some 50 percent of the operation's
financing would be used to help communities identify and reduce
risks. A community-driven development approach would be used to
implement most activities under this component and ensure local
ownership, build local institutions and generate employment. The
project is financed through an IDA grant.

More information about the World Bank's program in Haiti is
available at:

CONTACT: In Washington
         Ms. Alejandra Viveros

         In Port-au-Prince
         Ms. Maryse Calixte
         Phone: (509) 510-3797


GRUPO DESC: Suspends SEC Reporting Obligations
Desc, S.A. de C.V. (BMV: DESC) (the Company) filed Thursday Form
15 with the Securities and Exchange Commission (the SEC) to
suspend its reporting obligations under the Securities Exchange
Act of 1934. As a result of the Form 15 filing, the Company's
obligation to file with the SEC certain reports and forms,
including annual reports on Form 20-F and current reports on
Form 6-K, will immediately be suspended.

This action follows the termination of the Company's ADR
Depositary Facility and the delisting of the Company's American
Depositary Receipts on the New York Stock Exchange. The Series B
Shares will continue to be listed on the Mexican Stock Exchange
and the Company will continue to meet all reporting obligations
and other requirements mandated by applicable Mexican law.

CONTACT: Investor Relations
         Ms. Marisol Vazquez Mellado
         Mr. Jorge Padilla Ezeta

         Paseo de los Tamarindos 400-B, Piso 28
         Bosques de las Lomas
         Mexico, D.F. 05210
         Phone: (5255) 52 61 80 00
         Fax: (5255) 52 61 80 96

GRUPO TMM: Details Court's Positive VAT Decision
Grupo TMM, S.A. (BMV: TMM A and NYSE: TMM) ("TMM") and Kansas
City Southern (NYSE: KSU) ("KCS") announced that TFM, S.A. de
C.V. ("TFM") was served Wednesday with the favorable decision of
the Federal Appellate Court, dated November 24, 2004.

The decision upholds TFM's claim that it is entitled to
inflation and interest from 1997 on the value added tax ("VAT")
refund it received from the Mexican Government. As previously
announced, TFM received a VAT refund certificate on January 19,
2004, in the original amount of its claim (approximately 2.1
billion pesos), without any adjustment for accrued inflation or
interest. The Federal Appellate Court has remanded the case to
the Fiscal Court with instructions to enter a new order
consistent with this decision. The notification of this decision
represents another step in the process of recovering the full
value of the VAT refund. This decision had been expected and was
publicly announced by TMM and KCS on November 29, 2004.

TMM and KCS also announced that TMM, Grupo Transportación
Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), and TFM have
been served with a commercial lawsuit brought before a Mexican
Federal Court by the Mexican Federal Government. KCS is also
named as a defendant, but it has not yet been served. The Court
refused to accept several claims asserted by the Mexican
Government in the lawsuit. The Mexican Government has appealed
that decision. The Court accepted for consideration the Mexican
Government's request to determine whether the defendants have
complied with all of the legal obligations they assumed during
the process of the privatization of Ferrocarril del Noreste,
S.A. de C.V. (today, TFM). TMM and KCS believe that this issue
is without merit and that they have fully satisfied their legal
obligations related to the privatization of TFM.

Notwithstanding the ongoing litigation, TMM and KCS will
continue discussions with the Mexican Government aimed at
resolving the outstanding disputes between the parties over the
value added tax refund and the obligation to purchase the
remaining shares of TFM, in accordance with law and the
applicable agreements.

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation Company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services.

KCS is a transportation holding Company that has railroad
investments in the United States, Mexico and Panama. Its primary
holding in the United States is The Kansas City Southern Railway
Company. KCS owns 51% of The Texas Mexican Railway Company,
which connects The Kansas City Southern Railway Company and TFM.
Headquartered in Kansas City, Missouri, KCS serves customers in
the central and south central regions of the United States. KCS'
rail holdings and investments are primary components of a NAFTA
Railway system that links the commercial and industrial centers
of the United States and Mexico.

         Av. de la Cuspide # 4755
         Colonia Parquer del Pedregal
         Tlalpan, 14010
         Phone: 525-629-8866
         Web site:

MINERA AUTLAN: Praises Trade Modification Regulations
Minera Autlan applauded the modifications to the foreign trade
regulations made to prevent illegal imports of ferroalloys in
Mexico, Comtex Business Reports. In a statement, the Company
pointed out that it was very important to the sector that the
government provide greater certainty and carry out better
supervision of imports of ferroalloys in Mexico.

Minera Autlan also noted that in the Appendices to the Fifth
Resolution of Modifications to the General Regulations in
Foreign Trade Matters, published in the official government
gazette El Diario Oficial de la Federacion on December 24,
Appendix 18 was added for manganese ferroalloys.

"In the case of manganese ferroalloys, the regulation will
prevent foreign competitors from importing these products into
Mexico under false information to avoid import tariffs or active
anti-dumping quotas", stated Autlan.

The Company added that the application of Appendix 18 would be
of great benefit for the transparency and legality of its

In December, the Company laid out its plans for 2005, including
its goal to satisfy the demand for manganese-ferroalloy in the
local market as well as export the product to the US, Canada,
Central and South America.

In addition, the Company aims to "consolidate" operations,
reduce energy costs by investing in energy conservation projects
and to develop a business model to ensure the Company's long-
term profitability.

Company Director General Jose Hilario Madero Marcos is confident
that Autlan's workforce and technology are capable of achieving
the Company's objectives.

In the second quarter of 2004, Autlan reactivated all its units
and has since been operating at full capacity in both its mining
and production sectors.

NII HOLDINGS: Comsat to Provide Backbone Services in LatAm
Comsat International, a full-service provider of voice and data
communications throughout Latin America, announced Wednesday it
has signed an agreement to be the backbone provider for NII
Holding's recently launched International Direct Connect in
Latin America. Through its robust fiber backbone and multiple
regional data centers, Comsat will supply NII both long-haul and
local access services in Argentina, Brazil, Peru, Mexico and the
United States. Under the three-year contract, Comsat has
committed to providing the capacity required to support this
rapidly expanding service.

International Direct Connect(TM) (IDC) enables subscribers to
communicate instantly -with the touch of one button- within
workgroups, and among customers, suppliers and key contacts,
whether conducting business in their country or while traveling
in Latin markets where the service is available. Together with
the Comsat-provided backbone, IDC overcomes barriers associated
with making international calls and provides a cost-effective
alternative to international and local long distance dialing.

"Comsat is delighted to have been chosen as a vendor for NII
Holdings in Latin America. Given Nextel International's rapidly
expanding presence in Latin America, and Comsat's extensive
regional network, this partnership makes perfect sense,"
commented George Kappaz, CEO of Comsat International. "We feel
very strongly that as cross-border business and regional trade
continue to expand, Nextel International's Push-to-Talk service
is very well positioned for continued growth. Comsat is very
pleased to be a part of that expansion."

About Comsat International

Comsat International, Inc. provides local, national and pan-
regional network services and solutions for more than 1,800
enterprise and service-provider customers over modern,
integrated terrestrial and satellite network facilities in key
Latin American markets. It owns domestic networks in Argentina,
Brazil, Colombia, Mexico, Peru, Guatemala, Venezuela and Turkey
and has two gateways interconnect points in the USA. It also
provides services via terrestrial and satellite links to
Bolivia, Chile, Ecuador and Uruguay. In addition, it operates
over 2,000 square meters of data center and teleport collocation
space throughout the region. Comsat International, Inc. is
headquartered in McLean, Virginia USA.

About NII Holdings

NII Holdings, Inc., a publicly held Company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connect(R), a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD. The Company's
website is

CONTACTS:  Comsat International, Inc.
           Media Contacts:
           Luiz Sa, (Brasil) + 55 11 - 6844-7200

           Brian Brooks, +1-703-556-9500
           or 1-877-554-9555 (U.S.A. only)

           Rs Oficina de Arte e Comunicacao/Primeira Comunicacao
           Fone/Fax: +55 (11) 3889-8293
           Jornalista responsavel:
           Marcia Amazonas
           celular 11- 3889-8293

SATMEX: Seeks Restructuring Agreement With Creditors
Satelites Mexicanos (Satmex), the ailing satellite
telecommunication services provider, needs to forge an
acceptable restructuring plan with creditors or face the risk of
bankruptcy as early as next year, according to El Economista.

The Mexican government is on its trail, taking legal action to
recover its investments from the Company. The report adds that
through the Transportation and Communications Secretariat (SCT),
the government has proposed to restructure liabilities amounting
to US$760 million. The move comes after Satmex froze interest
payments to the government on December 29.

To save the Company from bankruptcy, shareholders have suggested
a new repayment scheme including the discharge of its US$190
debt with the government. The government, however, has
reportedly rebuffed this proposal.

TV AZTECA: Fitch Comments on Recent SEC Suit
The recent U.S. Securities and Exchange Commission (SEC) filing
of civil fraud charges against TV Azteca S.A. de C.V. (TV
Azteca) and some of its officers will likely result in
litigation and the continuation of legal risks for TV Azteca
over the near future, according to Fitch Ratings.

Fitch has incorporated a measure of litigation risk into the
ratings of TV Azteca since early 2004 after the SEC launched an
investigation into several related party transactions between
Mexican wireless provider Unefon, a subsidiary 46.5% owned and
controlled by TV Azteca until its spin-off last year, and
investment Company Codisco, co-owned by Ricardo Salinas Pliego,
chairman of TV Azteca, and Moises Saba, chairman of Unefon.
Litigation risk also includes several pending shareholder

Independent of the SEC announcement and following the prepayment
of all of TV Azteca's international debt securities on Dec. 23,
2004, Fitch has affirmed and withdrawn the 'B+' international
scale foreign and local currency senior unsecured ratings of TV
Azteca as well as the 'B+' rating of TV Azteca's $300 million
10.5% senior notes due 2007. The prepayment was funded with
proceeds from a $125 million bank loan and a $175 million
issuance of peso-denominated certificados bursatiles. Fitch
rates the structured certificados bursatiles issuance 'AA (mex)'
on the Mexican national rating scale and will continue to
monitor this security.

TV Azteca is the second-largest broadcasting Company in Mexico.
The Company operates two national television channels, Azteca 13
and Azteca 7, through more than 300 owned and operated stations
across the country. TV Azteca is controlled by holding Company
Azteca Holdings, which is not rated by Fitch.

CONTACT:  Guido Chamorro +1-312-368-5473, Chicago
          Alberto Moreno +5281-8335-7239, Monterrey

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York

TV AZTECA: CNBV Completes Probe, Enters Notification Phase
Mexico's banking and securities regulator, the CNBV, has
completed the investigation it began in January 2004 into the
actions of TV Azteca, Codisco [Investments LLC], Unefon [mobile
communications Company, a joint venture between the Saba family
and TV Azteca] and the leading shareholders of the Grupo Azteca
on alleged violations of the Securities Market Law.

Now the action has entered the notification phase, during which
the alleged violators of the law will be notified and will have
10 to 15 days to defend themselves and submit evidence in their

According to the regulator's VP Miguel Angel Garza, a probe by
the US securities commission SEC into alleged fraud on the part
of TV Azteca chairman Ricardo Salinas and other TV Azteca
directors and officers would not necessarily influence the CNBV
judgment because the two nations' laws are different and the
investigations are independent, although the regulatory agencies
are cooperating closely.

The SEC filed last week a civil suit against TV Azteca, Salinas
and two Company directors for not revealing details of a
controversial debt deal, estimated at US$218 million, involving
TV Azteca sister Company Unefon.

CONTACT: Investor Relations
         Mr. Bruno Rangel
         Phone: 5255 1720 9167

         Mr. Omar Avila
         Phone: 5255 1720 0041

         Media Relations:
         Mr. Tristan Canales
         Phone: 5255 1720 5786

         Mr. Daniel McCosh
         Phone: 5255 1720 0059

TV AZTECA: Analysts Say SEC Suit Puts Shares at High Risk
The suit brought against TV Azteca by the US Securities and
Exchange Commission (SEC) has put the Company's shares at high
risk, according to analysts. Specialists representing brokerages
Merrill Lynch, Scotia Inverlat and Deutsche Ixe stated that the
possible sanctions, if the defendants are found guilty, will
affect the TV firm's future profits and the confidence of
minority investors "even more".

This is the first time ever that the commission has arraigned a
Mexican firm under such circumstances. Treasury Secretary
Francisco Gil Diaz explained that Mexican authorities will wait
and see how the case unfolds in the United States before taking
a stance in Mexico. He added that laws in the United States are
much more rigorous than in Mexico.


BCP: S&P Leaves Ratings Unchanged Following Portfolio Buy
Standard & Poor's Rating Services said Thursday that ratings on
Banco de Credito del Peru (CREDITC1.VL; BB-/Stable/B) would
remain unaffected after the bank announced its agreement to
acquire BankBoston N.A.'s $403 million loan portfolio in Peru.
The portfolio is largely concentrated in the commercial segment
and is allocated among 1,300 customers. The transaction is
expected to be finalized by the end of January and will be
financed with BCP's existing excess liquidity. The bank's BIS
capitalization ratio will remain at comfortable levels-above
13%-following the acquisition. The transaction consolidates the
bank's already significant leadership position, increasing its
market share in loans to 33% from 30%. BCP is the largest bank
in Peru. The institution is engaged in retail banking, asset
management, private banking, and treasury and corporate banking
activities directly or through subsidiaries. BCP has Peruvian
new soles 23.1 billion ($6.9 billion) in assets as of September
2004, with the largest branch network nationwide.

Primary Credit Analyst: Carina Lopez, Buenos Aires (54) 11-4891-


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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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