TCRLA_Public/050118.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 18, 2005, Vol. 6, Issue 12


                            Headlines


A R G E N T I N A

BANCO GALICIA: Bank's Rebound Prompts Investor Confidence
CONCIEL S.A.: Court Converts Bankruptcy to Reorganization
FACUNDO DE ZUVIRIA: Claims Verification Deadline Set
LOMA NEGRA: Price Negotiations Delay Sale To Camargo
PLANTA REVESA: Court Names Trustee for Reorganization Process

ARGENTINA: Initiates Debt Swap Offer


B E R M U D A

COLONY INVESTMENTS: Members Vote for Voluntary Wind-Up
LINES OVERSEAS: Issues Response to Press Report
SHIELD INSURANCE: Liquidator Seeks Release from Proceedings


B R A Z I L

BANCO VOTORANTIM: Completes $100M Eurobond Issue
SABESP: Announces Payment of Interest on Own Capital


C H I L E

ENDESA CHILE: Asks CDEC-SIC Director to Step-Down  


C O L O M B I A

* COLOMBIA: Fitch Rates Reopened Global Bond 'BB'


D O M I N I C A N   R E P U B L I C

TRICOM: Issues Updates on Payment Opposition by GFN Creditors


E C U A D O R

PETROECUADOR: 23 Firms Eyeing Oil Concession


J A M A I C A

KAISER ALUMINUM: Signs Commitment Letter for Exit Financing


M E X I C O

AHMSA: Production Exceeds Annual Production Target in 2004
CORPORACION DURANGO: Fitch Withdraws 'D' Credit Ratings
GRUPO MEXICO: Awaits Board Approval to Invest $300M in Two Mines
MINERA AUTLAN: Inks Electricity Supply Contract With Sister Co.
NII HOLDINGS: Announces Convertibility of 3 1/2% Notes


P E R U

* PERU: Contemplates $2.2B Debt Securities Offering


T R I N I D A D   &   T O B A G O

BWIA/LIAT: Govt. Expected to Reveal Plans by Quarter's End


U R U G U A Y

ANCAP: Vazquez Discusses Service Station Woes With Kirchner


V E N E Z U E L A

PDVSA: Labor Leaves Seat on Board
* VENEZUELA: Fitch Probes Reports of Possible Missed Payment


     - - - - - - - - - -

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

BANCO GALICIA: Bank's Rebound Prompts Investor Confidence
---------------------------------------------------------
Demand for Argentine bank Banco Galicia's ARS30-million (US$10.2
million) issue of commercial paper from investors rose to
ARS62.3 million, reports Business News Americas. The increased
demand indicates that the local capital market is "beginning to
move," a Galicia executive told Business News Americas.

The 300-day papers were sold by a Galicia unit that issues a
credit card called Tarjeta Naranja. Proceeds from the operation
will go to Galicia's ongoing business operations.

Banco Galicia, one of Argentina's largest private banks in terms
of overall market share, hinted it will return to the market
with similar issues this year.

CONTACT:  BANCO DE GALICIA Y BUENOS AIRES
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar


CONCIEL S.A.: Court Converts Bankruptcy to Reorganization
---------------------------------------------------------
Conciel S.A. proceeds with reorganization after Court No. 1 of
Salta'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.

Ms. Ema Jaffi de Kohan, the court-appointed trustee, closed the
verification of creditors claims last October 22, 2004. The
court expects to receive a general report on the case on
February 25.

CONTACT: Conciel S.A.
         Mariano Benitez 530
         Salta
           
         Ms. Ema Jaffi de Kohan, Trustee
         Alvarado 268
         Salta


FACUNDO DE ZUVIRIA: Claims Verification Deadline Set
----------------------------------------------------
A general report pertaining to the reorganization of Salta-based
Instituto Dr. Facundo de Zuviria S.R.L. is due for court
submission on February 25. The general report provides the court
with an audit of the Company's accounting and Business records.

Local accounting firm "Estudio Gallo, Semeraro", the trustee in
charge of this case closed the verification of creditors' claims
last October 27, 2004.

This case is under the jurisdiction of Court No. 2 of the city's
civil and commercial tribunal.

CONTACT: Instituto Dr. Facundo de Zuviria S.R.L.
         Vicente Lopez 38
         Salta

         "Estudio Gallo, Semeraro", Trustee
         Dean Funes 341
         Salta


LOMA NEGRA: Price Negotiations Delay Sale To Camargo
----------------------------------------------------
The sale of Argentine cement company Loma Negra to local Camargo
Correa has been delayed due to disagreements on the price.
Brazilian paper Valor reports that Loma Negra's owner, Amalia
Lacroze de Fortabat, wants to raise the sum she wants to collect
from the sale from US$1 billion to US$1.2 billion.

But such amount would be too high for Camargo Correa. The paper
quoted a source related to the Brazilian firm saying that
Camargo's proposal is very good and hinted that it is not
backing out of its proposal.

Previously, Loma Negra's shareholders wanted to be paid US$1
billion, nine times as higher as its 2004 estimated cash flow.
It is said, however, that the company should not be worth more
than US$700 million.


PLANTA REVESA: Court Names Trustee for Reorganization Process
-------------------------------------------------------------
Planta Revesa S.R.L., a company operating in Salta, is ready to
start its reorganization after Court No. 1 of the city's civil
and commercial tribunal appointed Mr. Eduardo Antonio Moron
Aransay to supervise the proceedings as trustee.

Infobae states that Mr. Aransay closed the claims verification
period last November 12, 2004. He will be submitting a general
report on the case on March 11.

The city's Clerk No. 1 assists the court on this case.

CONTACT: Planta Revesa S.R.L.
         Avda Independencia 1190
         Salta
  
         Mr. Eduardo Antonio Moron Aransay, Trustee
         General Guemes 1328
         Salta


ARGENTINA: Initiates Debt Swap Offer
------------------------------------
Argentina opened its record-breaking offer to restructure
US$102.6 billion in defaulted debt Friday. Argentina will issue
between US$38.5 billion and US$41.8 billion in new debt with
lower interest rates and extended maturities in return for
US$81.8 billion in defaulted bonds. The offer closes on Feb. 25.

Meanwhile, angry creditor groups kicked off their own counter-
offensive in a battle to win the support of undecided
bondholders.

"Argentina has taken a first step in what we think will be a
subsequent negotiation. They've given they're offer and we're
going to come out and give our offer, what we would do," Hans
Hume, co-chairman of GCAB (Global Committee of Argentina
Bondholders), said. GCAB, which says its represents US$38
billion of the debt in default, has rejected the government's
proposal.

"We'll point out the reasons that people should not be taken in
by this last round of bullying by Argentina. And we're not on
our own. Everybody seems to get it," Hume added.



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

COLONY INVESTMENTS: Members Vote for Voluntary Wind-Up
------------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                               And

         IN THE MATTER OF Colony Investments Limited
  
By a Unanimous Written Resolution of the Members of Colony
Investments Limited, on January 10, 2005, the FOLLOWING
RESOLUTIONS WERE duly passed:-

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

(b) That Angela S. Berry 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 Colony Investments Limited, which is being
voluntarily wound up, are required, on or before the January 28,
2005, to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, to
the undersigned, Liquidator of the said Company, at 2nd Floor,
LOM Building, 27 Reid Street, Hamilton, Bermuda, and if so
required by notice in writing from the said Liquidator to come
in and prove their debts or claims at such time and place as
shall be specified in such notice, or in default of any of the
above requirements they will be excluded from the benefit of any
distribution made before such debts are proved.

- A General Meeting of the Members of Colony Investments Limited
will be held at 2nd Floor, LOM Building, 27 Reid Street,
Hamilton, Bermuda on February 22, 2005 at 4:30 p.m., or as soon
as possible thereafter, for the purposes of:-

(1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; 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: Ms. Angela S. Berry, Liquidator
         2nd Floor, LOM Building
         27 Reid Street, Hamilton
         Bermuda


LINES OVERSEAS: Issues Response to Press Report
-----------------------------------------------
LOM (Holdings) Limited (LOM) has advised the Bermuda Stock
Exchange (BSX) of the following release:

Following misleading inferences in some of the recent press
reports, LOM would like to make the following clarifications:

"Lines Overseas Management Limited ("LOM") is a licensed,
regulated investment firm that has been in business for 12
years, and provides brokerage and other investment services to
over 2,000 primarily high-net worth, sophisticated customers
worldwide. LOM is wholly owned by LOM (Holdings) Limited, which
is a public company listed on the Bermuda Stock Exchange, and
whose ownership is fully disclosed in its listing memorandum. In
order to trade Canadian securities, LOM maintains a number of
accounts with well-known broker-dealers in B.C. and Ontario.

LOM's counterparties are fully aware of LOM's status as a
brokerage, and it is properly disclosed as such on their forms.
This is the same way any non-Canadian investment firm would
operate, whether it be a well known U.S. firm without a Canadian
subsidiary, or LOM in Bermuda.   To say, as has been reported in
several recent articles, that LOM "may be acting as a front for
undisclosed investors" is entirely misleading, and makes a
completely legitimate relationship sound sinister and improper.
If after further review the B.C. Securities Commission decides
that the brokerage firms it regulates must obtain beneficial
ownership information on underlying customers of foreign
brokerages, then the B.C. brokerage firms will have to change
their own policies and LOM will have to abide if it wants to
continue to have accounts with B.C. firms.  But it is not
correct to imply that past accounts were being operated
improperly.

Finally, we would reiterate that ultimate beneficial ownership
details of individuals trading via firms outside of Canada is
available, through the established mechanism of regulator-to-
regulator requests, and that the BCSC successfully used this
route in the enquiry which prompted the recent hearing."


SHIELD INSURANCE: Liquidator Seeks Release from Proceedings
-----------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                            And

        IN THE MATTER OF Shield Insurance Company Ltd.

TAKE NOTICE that I, Mark W.R. Smith, liquidator of Shield
Insurance Company Ltd., intend to apply to the Court for my
release, and further take notice that any objection you may have
to the granting of my release must be notified to the Court
within 28 days of the date hereof.

Creditors and Contributories may obtain a copy of a receipts and
payments summary from Deloitte & Touche, Corner House,
Parliament Street, Hamilton, Bermuda



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

BANCO VOTORANTIM: Completes $100M Eurobond Issue
------------------------------------------------
Brazilian bank Banco Votorantim S.A. completed Friday an
overseas Eurobond issue totaling US$100 million, according to
Dow Jones Newswires. The bonds, which mature in two years, were
placed at 99.52% of face value.

The operation was coordinated by Standard Bank of London.

Standard & Poor's Ratings Services recently assigned its 'BB-'
foreign-currency senior unsecured debt rating to the notes.


SABESP: Announces Payment of Interest on Own Capital
----------------------------------------------------
In a meeting held on January 13, 2005, the Board of Directors of
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP
(NYSE: SBS) pursuant to paragraph 2 of Article 30 of its Bylaws,
after hearing the Fiscal Council, deliberated to approve the
Full Executive Board's proposal for the declaration of payment
of dividends in the form of Interest on Own Capital, referring
to December 2004 to the shareholders on the reference date of
February 10, 2005.

The Dividends as Interest on Own Capital, totaling
R$28,194,782.05 corresponding to R$ 0.99 per thousand common
shares will be paid no later than 60 days after the 2005 Annual
Shareholders' Meeting.

Withholding Income Tax will be deducted from the amount of
payment of dividends as Interest on Own Capital, pursuant to
current legislation, except for exempt shareholders who prove
this condition prior to April 29, 2005, by submitting related
documents to the Company's headquarters.

Said Interest on Own Capital will be declared and computed in
the calculation of the mandatory minimum dividends, as provided
in Article 30 item II, letter "b" of the Company's Bylaws and in
Paragraph 7 of the Article 9 of the Law 9249/95.

The shareholders will have their credits available on the
initial date of payment of such right, as set forth in above
item I, in accordance with their checking account and domicile
provided to Banco Itau S.A.

To shareholders whose registry information does neither include
their Individual/Corporate Taxpayer's Identification Number
(CPF/CNPJ) nor completion of banking instructions (bank, branch
and account number), the interest will be credited, pursuant to
item I above, as of the third business day counted from the date
of registry update in Banco Itau S.A.'s electronic files. This
update may be carried out either at any of its branches or by
mail sent to Banco Itau S.A.

The shares now are traded ex-interest and ex-dividends from
February 11, 2005.



=========
C H I L E
=========

ENDESA CHILE: Asks CDEC-SIC Director to Step-Down  
-------------------------------------------------
German Henriquez, Executive Director of Chile's central grid
operator CDEC-SIC, earned the ire of power generator Endesa
after outlining a contingency plan that could see the Company
coughing up some 50 percent in additional generation costs
during the run of the current natural gas crisis.

Business News Americas reports that the Company has asked for
the resignation of Mr. Henriquez on grounds that he is incapable
of managing the crisis. Officials from Endesa had argued that
CDEC-SIC's contingency plan to conserve hydro-resources at this
point is not helping to compensate for Argentina's gas export
restrictions.

CDEC-SIC had instead responded to the gas shortage by calling
for diesel-fired plants to start operations when gas supplies
are reduced. This decision places Endesa at a disadvantage
because its installed capacity comes largely from hydro
generated power.

Argentina had reduced gas exports to Chile from 20mm3/day to a
steady 2.31 mm3/day after demand for power spiked in Buenos
Aires.

CONTACT: ENDESA CHILE
         Santa Rosa 76
         Santiago, CHILE
         Phone: (212) 688-6840
         Fax: (212) 838-3393
         Web Site: http://www.endesa.cl



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

* COLOMBIA: Fitch Rates Reopened Global Bond 'BB'
-------------------------------------------------
Fitch Rating has assigned a 'BB' rating to the Republic of
Colombia's US$124.9 million retap of its 11.75% coupon, peso-
denominated, U.S. dollar payable global bonds maturing in March
2010. The rating is equal to Colombia's long-term foreign
currency sovereign rating. Colombia's long-term local currency
rating is 'BBB-'. The Rating Outlook is Stable.

CONTACT:  Morgan C. Harting +1-212-908-0820, New York
          Roger M. Scher +1-212-908-0240, New York

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



===================================
D O M I N I C A N   R E P U B L I C
===================================

TRICOM: Issues Updates on Payment Opposition by GFN Creditors
-------------------------------------------------------------
TRICOM, S.A. files Form 6-K to disclose:

  (i)  potential liability in connection with the receipt of a
       payment opposition from certain alleged creditors of
       various affiliates of Oleander Holdings, Inc., Tricom's
       largest shareholder, and

  (ii) recent developments in connection with the termination of
       a aircraft lease agreement entered into by TRICOM USA, a
       subsidiary of Tricom, and General Electric Credit
       Corporation of Tennessee.

Payment Opposition by Creditors of GFN

In April 2004, TRICOM, S.A. received a payment opposition (the
"Payment Opposition") from certain alleged creditors (the "GFN
Creditors") of various affiliates of Oleander Holdings, Inc.
("Oleander"), Tricom's largest shareholder, identified in the
payment opposition (the "Identified GFN Entities").  The Payment
Opposition requires that Tricom not in any way pay, transfer,
render, sell, assign, repay, in whole or in part, or enter into
any transaction that may reduce the amount owing to any of the
Identified GFN Entities.  The amount alleged to be owed to the
GFN Creditors by the Identified GFN Entities totals US$32
million.  The amount subject to the Payment Opposition is US$64
million, as allowed by the Dominican Civil Procedure Code.

Certain affiliates of Oleander (the "Transferring GFN Entities")
caused certain pagares or notes, commercial paper and other
obligations issued by Tricom in the aggregate principal amount
of approximately US$52,600,000 and RD$73,000,000 (collectively,
the "Debt") to be either canceled and reissued or assigned to
several entities, including an affiliate of Oleander
(collectively, the "New Holders") (the "Transfer").  None of the
New Holders is an Identified GFN Entity.  Tricom has been
advised by counsel that the Transfer may have been a violation
of the Payment Opposition and that Tricom, therefore, may be
liable to both the New Holders in an amount equal to the Debt
and to the GFN Creditors in an amount equal to the amount
allegedly owed to the GFN Creditors.  Tricom's liability to the
GFN Creditors may arise if (i)  the GFN Creditors obtain a
judgment against one or more of the Transferring GFN Entities
which is not satisfied, and (ii) a court determines that the
Payment Opposition is valid and effective as to the Transferring
GFN Entities and at the time the Payment Opposition was served
Tricom had an outstanding obligation to the Transferring GFN
Entities.  To Tricom's knowledge, there has not been any
determination as to the effectiveness of the Payment Opposition
or the liability to the GFN Creditors of the Identified GFN
Entities or the Transferring GFN Entities.  Prior to any
determination as to the validity of the Payment Opposition,
Tricom remains responsible to prevent any payment, cancellation
or assignment in favor of the Identified GFN Entities (as
defined above) taking place.

In the event Tricom were required to pay the Debt to both the
GFN Creditors and the New Holders, under the Dominican Civil
Code, Tricom may have a right to recover from certain of the
Identified GFN Entities any amount paid to the GFN Creditors.  
In the event that Tricom pays the GFN Creditors, there cannot be
any assurance that Tricom will be able to recover such amounts
from the Identified GFN Entities.

Aircraft Lease Termination

In November 2003, General Electric Credit Corporation of
Tennessee and General Electric Capital Corporation of Puerto
Rico commenced an arbitration proceeding against Tricom, S.A.,
or Tricom, and its subsidiary TRICOM USA before the
International Centre for Dispute Resolution.  GE Puerto Rico and
GE Tennessee made a claim against Tricom, as the guarantor of
TRICOM USA's performance and payment under an aircraft lease
agreement entered into by TRICOM USA and GE Tennessee, for
damages in the amount of $16,502,055 arising from TRICOM USA's
alleged breach of the aircraft lease agreement.  In December
2003, GE Tennessee informed Tricom that it was exercising its
right to immediately seize the aircraft that was the subject of
the aircraft lease agreement.  TRICOM USA returned the aircraft
to GE Tennessee in December 2003.  GE Tennessee claimed in the
arbitration that by reason of a cross collateral agreement it
alleged was entered into by Tricom in connection with a secured
loan to Tricom by GE Puerto Rico, the obligations under the
aircraft lease agreement by GE Tennessee also were secured by
collateral, consisting of telecommunications equipment, securing
the loan by GE Puerto Rico to Tricom.

Tricom made a pre-hearing motion to dismiss GE Puerto Rico as a
party to the arbitration on the ground that GE Puerto Rico was
not a party to any contract containing an arbitration clause
entered into with Tricom, and for that reason did not have a
legal right to compel Tricom to arbitrate any claims that GE
Puerto Rico might have against Tricom.  In GE Puerto Rico's
answer, it alleged that a certain cross collateral agreement
entered into by TRICOM USA, GE Puerto Rico and Tricom, in
connection with a secured loan by GE Puerto Rico to Tricom in
December 2000 tied the December 2000 secured loan to the
aircraft lease agreement and corporate guaranty.  Therefore, GE
Puerto Rico argued that it had the right to invoke the
contractual benefits of the aircraft lease agreement and
corporate guaranty, which included the right to compel
arbitration. Tricom argued that, since the cross collateral
agreement did not specifically include GE Tennessee as a party,
GE Puerto Rico could not use the cross collateral agreement to
tie the December 2000 secured loan to the aircraft lease
agreement and Tricom corporate guaranty.  GE Puerto Rico
contended that even though the cross collateral agreement did
not include GE Tennessee, this was the result of a clerical
error. GE Puerto Rico requested that the arbitrators reform the
cross collateral agreement to specifically include GE Tennessee
in it.

In August 2004, a hearing was held on the pre-hearing motion.  
On December 31, 2004, the arbitrators reached a decision on the
pre-hearing motion in favor of GE Puerto Rico which reformed the
cross collateral agreement to make clear that the cross
collateral agreement covered breaches of the Tricom entities'
obligations from the aircraft transaction and that GE Puerto
Rico is a proper party to the arbitration proceeding.  A hearing
with the arbitrators on the merits of the matter is expected to
commence sometime during the second quarter of 2005.

TRICOM USA has been advised by counsel that there is a
substantial likelihood that it will be found liable for breach
of the aircraft lease agreement if the claim is pursued against
it.  Counsel has also advised TRICOM USA that it is not able to
estimate the amount of any judgment that may be awarded against
TRICOM USA should a claim be pursued against it.  According to
counsel, the amount of any award would be dependent on expert
valuations of the present value of the remaining payments due
under the aircraft lease agreement as well as on the market
value of the aircraft as of the date it was returned to GE,
which market value in counsel's opinion would be credited in
mitigation of the amount that otherwise would be due to GE.

CONTACT:  TRICOM, S.A.
          Avenida Lope de Vega No. 95
          Santo Domingo, Dominican Republic

          Investor Relations: Miguel Guerrero
          Ph (809) 476-4044 / 4012
          E-mail: investor.relations@tricom.net



=============
E C U A D O R
=============

PETROECUADOR: 23 Firms Eyeing Oil Concession
--------------------------------------------
Petroecuador, through its production unit Petroproducion,
received documents from 23 foreign and local energy companies
interested to participate in an oil production and services,
reveals Dow Jones Newswires.

Among the companies included in Wednesday's submission deadline
were Spanish-Argentine energy group Repsol-YPF (REP), Brazil's
Petrobras (PBR), Chile's Enap (ENP.YY), and China National
Petroleum Corp..

Jorge Burbano, undersecretary of hydrocarbons, said
Petroproducion will analyze the documents and in eight days give
the names of qualified companies.

Approved companies will then have 30 to 60 days to submit their
bids, but the deadline can be extended 30 days at the companies'
request. Burbano said Petroecuador hopes to pick a winner and
sign a contract in June or July.

The concession, which is worth an estimated $300 million,
involves the Shushufindi, Auca, Lago Agrio and Culebra-Yulebra-
Anaconda fields, which together produce some 116,000 barrels a
day. Officials hope to raise that output to 156,000 b/d.



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

KAISER ALUMINUM: Signs Commitment Letter for Exit Financing
-----------------------------------------------------------
Kaiser Aluminum has signed a commitment letter and filed a
motion with the U.S. Bankruptcy Court for the District of
Delaware seeking approval to enter into an agreement with
JPMorgan Chase Bank, National Association, J.P. Morgan
Securities Inc., and The CIT Group/Business Credit, Inc. under
which Kaiser would be provided with a replacement for the
company's existing Debtor-in-Possession (DIP) Credit Facility
and a commitment for a multi-year exit financing arrangement
upon Kaiser's emergence from Chapter 11.

J.P. Morgan Securities Inc., would act as the lead arranger,
sole bookrunner, and syndication agent for the new facility.
JPMorgan Chase Bank would be administrative agent. CIT Group
would act as co-arranger.

As described in the motion and the corresponding commitment
letter, and subject to the completion of definitive
documentation, the new facility would:

- Replace the existing $200 million DIP credit facility, which
expires February 13, 2005, with a new $200 million credit
facility intended to remain in place until the company's
emergence from Chapter 11.

- Include a commitment, upon Kaiser's emergence from Chapter 11,
for exit financing in the form of a $200 million revolving
credit facility and a fully drawn term loan of up to $50
million.

- Provide a maturity on the exit financing's revolving credit
facility of five-years from the date of the closing of the
replacement DIP (which is expected to occur in February 2005)
and a maturity on the term loan of six years from such closing
date.

Kaiser has asked the Court to schedule a hearing on the motion
on February 2, 2005.

"The new facility has been designed to provide us with the size,
terms, and flexibility that we expect to need as we complete our
reorganization and look ahead to our future as a highly
competitive fabricated products company. The exit financing, in
particular, is expected to enable Kaiser to emerge from Chapter
11 with a sound financial profile and the liquidity necessary to
support continued growth," said Jack A. Hockema, Kaiser's
President and Chief Executive Officer.

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

CONTACT: Kaiser Aluminum Corp.
         5847 San Felipe
         Suite 2500
         P.O. Box 572887  
         Houston, TX 77257-2887
         USA
         Phone: 713-267-3777
         Web site: http://www.kaiseral.com



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

AHMSA: Production Exceeds Annual Production Target in 2004
----------------------------------------------------------
During 2004, Altos Hornos de Mexico (AHMSA) produced 3 million
metric tons of liquid steel and exceeded its annual production
plan. The production volume was 3.9% higher than in 2003.

According to the preliminary figures that will be presented to
the Board, the volume of liquid steel was transformed into more
than 2.6 million metric tons of finished products.

The Company achieved higher levels of efficiency in 2004. The
annual yield from liquid steel to finished products was 88.7%
and in December 2004 was 89.1%, the highest figure in the year.

In terms of sales to the Domestic and International market, in
2004 AHMSA shipped 2 million 614 thousand metric tons of
different steel products. This figure was similar to the one of
2003 and represented a decrease in the inventories in order to
fulfill the clients' needs in Mexico and abroad.

Luis Zamudio, AHMSA's CEO, said that the increase in the 2004
production was accomplished due to a carefully planned
maintenance program for the different facilities and equipments.

In order to complete the production program for 2004, AHMSA
invested during the year more than US$100 million that were
financed with internal resources. This figure is practically
twice the amount spent in 2003.

"Maintenance during the year has been a fundamental tool to have
our facilities in the best conditions, and we benefit from the
international market recovery to operate our equipments at full
capacity", he said.

Zamudio said that AHMSA has planned to run its plants for 3.5
million metric tons of liquid steel in 2005, due that the
forecast for the year is to have a steady market in prices and
demand.

In 2004, AHMSA focused its production in the manufacture of Flat
Steels (Plate, Hot Rolled Coil, Cold Rolled Coil and Tinplate)
and Structural Shapes. Those products were used mainly by the
industrial sector, producers of white goods and suppliers of the
oil industry, and also by the construction sector.

CONTACT: International Operations
         Prolongacion Juarez s/n
         Monclova, Coah., 25770
         Phone: + 52 (866) 649 34 00
         Fax: + 52 (866) 649 23 10
         e-mail: sales@ahmsa.com

         Web site: http://www.ahmsa.com.mx/


CORPORACION DURANGO: Fitch Withdraws 'D' Credit Ratings
-------------------------------------------------------
Fitch Ratings has withdrawn the 'D' foreign and local currency
ratings of Corporacion Durango S.A, de C.V. (Durango). Fitch
also withdraws its 'D' ratings of Durango's notes due in 2003,
2006, 2008 and 2009. The 'D' ratings for these defaulted notes
suggest potential recovery levels for creditors of less than
50%.

CONTACT:  Joe Bormann +1-312-368-3349, Chicago
          Daniel Kastholm +1-312-368-2070, Chicago

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


GRUPO MEXICO: Awaits Board Approval to Invest $300M in Two Mines
----------------------------------------------------------------
Mexican mining-transport conglomerate Grupo Mexico is awaiting
approval from the board for its plan to invest US$300 million in
the La Caridad and Cananea mines in Sonora state, Business News
Americas reports. Approval could come in two weeks, said company
vice president of international relations, Juan Rebolledo.

Grupo Mexico is looking to increase copper production at the
mines by 7% by 2008. Among the projects being considered are the
expansion of the two operations' production plants, merging the
mines and also the establishment of a secure electricity supply
for both mines, which are high consumers of energy.

But while mulling the expansion, Grupo Mexico is also taking
into consideration the possibility of a decrease in copper
prices.

Although still relatively favorable, Mr. Rebolledo predicted
that prices would drop 11% from US$1.28/lb in 2004 to US$1.15/lb
in 2005. Neverthelss, they will continue to remain higher than
in 2003.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
         

MINERA AUTLAN: Inks Electricity Supply Contract With Sister Co.
---------------------------------------------------------------
Mexican mining firm Compania Minera Autlan SA (AUTLAN.MX) signed
a long-term contract with sister company Compania Mexicana de
Energia for the supply of its electricity, reports Dow Jones
Newswires. Compania Mexicana is building a hydroelectric power
plant, in which Autlan has an unspecified equity stake. The
plant, sited in the state of Puebla, is expected to start
generating electricity in 2007 with capacity to produce 27
megawatts. Construction of the plant is expected to cost US$35
million.

The supply contract, which saves Autlan US$3 million a year in
energy costs, represents the first time that the company will
receive electricity from a source other than Mexico's state-run
Federal Electricity Commission (CFE).

Autlan mines manganese and also produces iron alloys.


NII HOLDINGS: Announces Convertibility of 3 1/2% Notes
------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD; the "Company") announced
Friday that its 3 1/2% Convertible Notes due 2033 (the "Notes")
issued pursuant to an indenture between the Company and
Wilmington Trust Company, as Trustee, dated September 16, 2003
(the "Indenture"), will be convertible pursuant to section
14.01(a)(i) of the Indenture for the fiscal quarter beginning
January 1, 2005 and ending March 31, 2005. Therefore, holders of
the Notes may convert the Notes into shares of the Company's
common stock during this period at the conversion rate then in
effect.

About NII Holdings, Inc.

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 International
Direct Connect(SM), an extension of Direct Connect(SM), a radio
feature that allows Nextel subscribers to communicate instantly
and across national borders.

CONTACT: NII Holdings, Inc.
         10700 Parkridge Blvd., Suite 600
         Reston, VA  20191
         Phone: (703) 390-5100
         Web site: http://www.nii.com

         Investor Relations:
         Mr. Tim Perrott
         Phone: (703) 390-5113
         Web site tim.perrott@nii.com

         Media Relations:
         Ms. Claudia E. Restrepo
         Phone: (786) 251-7020
         Web site: claudia.restrepo@nii.com



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

* PERU: Contemplates $2.2B Debt Securities Offering
---------------------------------------------------
Peru plans to sell up to US$2.2 billion in debt securities,
warrants and units from time to time, the South American
republic said in a shelf filing with the Securities and Exchange
Commission. In Friday's filing, Peru said it will use the net
proceeds for the general purposes of the government, including
financial investment and the refinancing, repurchasing or
retiring of its domestic and external debt.

Peru may also issue securities in exchange for any of its
outstanding securities, according to the filing. No underwriters
were listed in the filing.

Under a shelf registration, a company or government may sell
securities in one or more separate offerings with the size,
price and terms to be determined at the time of sale.



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

BWIA/LIAT: Govt. Expected to Reveal Plans by Quarter's End
----------------------------------------------------------
The Trinidad and Tobago government could likely announce plans
for troubled Caribbean carriers Liat and BWIA as early as the
end of the first quarter, says The Trinidad Express. Trade
Minister Kenneth Valley said in the report that the government
is working to put both airlines in a viable position before
proceeding with restructuring.

Mr. Valley assured that they are making progress on both fronts
even if the turn-around has taken longer than expected. Liat,
for its part, received US$120 million in funds that will be used
for severance liabilities and restructuring. Meanwhile, the
Trade Ministry is currently analyzing a turn-around plan for
flag carrier BWIA.


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

ANCAP: Vazquez Discusses Service Station Woes With Kirchner
-----------------------------------------------------------
Argentine President Nestor Kirchner and his Uruguayan
counterpart, President Tabare Vazquez, met for the first time
Thursday since the latter won a national election in October
2004, reports Business News Americas.

In the meeting, the two leaders tackled issues including
Uruguayan state oil company Ancap's (Administracion Nacional De
Combustibles Alcohol y Portland) losses from its service
stations in Argentina.

Ancap buys fuel at international prices of about US$45 a barrel,
but the Argentine government obliges the company to sell fuel at
its 200 service stations at the equivalent of some US$30/b.
According to Vazquez, the difference costs Ancap about US$2
million a month.

If there is no agreement, Uruguay "would have to pay a very
important amount of money" to bail out the state oil company,
Vazquez added.

"We understand that beyond any legal process, the path of
understanding and dialogue between the governments could
eventually solve this problem," Vazquez said during a press
conference after the meeting.



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

PDVSA: Labor Leaves Seat on Board
---------------------------------
Organized labor ended without representation in the aftermath of
the board shake-up at state oil company PDVSA. Business News
Americas says this is the first time labor has not taken a seat
at the board since labor reform laws were passed in the mid
1990's.

Two labor representatives, Fedepetrol president Rafael Rosales
and Fetrahidrocarburos president Nelson Nunez, had served as
members of PDVSA's board prior to the revamp. However,
Venezuelan President Hugo Chavez did not re-appoint them when he
announced a new 10-member board on December 13.

President Chavez retained Oil minister Rafael Ramirez as
president of PDVSA. Mr. Luis Vierma was appointed as PDVSA's new
vice-president for exploration, Alejandro Granados is now vice-
president for refining while Asdrubal Chavez comes in as
internal director.

Rounding up the new members are: Army colonel Dester Rodriguez,
General Carlos Eduardo Martinez, Bernard Mommer, Eudomario
Carruyo, Eulogio del Pino, Jesus Villanueva and Ivan Orellana.


* VENEZUELA: Fitch Probes Reports of Possible Missed Payment
------------------------------------------------------------
Fitch Ratings is investigating reports of a possible missed
payment on the Bolivarian Republic of Venezuela's oil-indexed
payment obligations. The oil obligations were issued by
Venezuela in 1990 in connection with its Brady Plan
restructuring to holders of its par and discount bonds due in
2020. Concerns have arisen about whether a missed payment on the
oil obligations constitutes a default on Venezuela's par and
discount Brady bonds due in 2020. Fitch is monitoring this
situation and seeking information that will clarify whether a
missed payment or a default has occurred; if so, it will take
the appropriate rating action.

CONTACT:  Morgan C. Harting +1-212-908-0820, New York
          Therese Feng +1-212-908-0230, New York

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




                            ***********


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 2005.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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