TCRLA_Public/050121.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

            Friday, January 21, 2005, Vol. 6, Issue 15


                            Headlines

A R G E N T I N A

APSA: Fitch Assigns `BBB(arg)+' to Bonds
ASOCIACION ESPANOLA: Gears Up for Reorganization
CLISA: Fitch Leaves Debenture Ratings Unchanged
IMAGEN SATELITAL: Fitch Retains Bonds' Default Ratings


B A R B A D O S

C&W BARBADOS: Consumers Score Victory in FTC Ruling


B E R M U D A

COVX LIMITED: Names Jefferson Voss as Liquidator
INTELSAT: Fitch Ratings Initiates Coverage
INTELSAT: Reports Loss of IS-804 Satellite
INTELSAT: Company Profile
RESIDUAL SOLUTIONS: Resolves to Wind-Up Operations

TOWER FSC: Proceeds With Voluntary Liquidation


B R A Z I L

BANCO ITAU: Sees Overwhelming Demand for Bond Issue
CSN: CSFB to Lead $200M Debt Offering
UNIBANCO: Secondary Offering of Shares
VARIG: Unibanco to Aid Reorganization


C H I L E

AES GENER: Natural Gas Cuts Force Plant to Use Diesel as Fuel
ENDESA CHILE: Argentine Gas Cuts Won't Impact Earnings


C O S T A   R I C A

ICE: Sells Bonds to Finance Hydroelectric Project


E C U A D O R

PETROECUADOR: Colonial-Panamericana Wins $38M Insurance Contract


J A M A I C A

C&W JAMAICA: Wants in on Fiber-Optics Consortium


M E X I C O

CORPORACION DURANGO: Replaces Independent Auditor
CYDSA: Concludes Capitalization, Debt Restructuring Process
LUZ Y FUERZA: Closes In on Debtors
MINERA AUTLAN: Sees Bigger 4Q Sales on Rising Demand for Alloy


P E R U

PAN AMERICAN SILVER: Files Shelf Prospectus


V E N E Z U E L A

VENEPAL: President Chavez Signs Expropriation Order
* VENEZUELA: Vows to Meet Oil-Linked Debt Payment Obligations

     -  -  -  -  -  -  -  -

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

APSA: Fitch Assigns `BBB(arg)+' to Bonds
----------------------------------------
Some ARS85 million worth of corporate bonds issued by Alto
Palermo S.A. were rated 'BBB(arg)+' by Fitch Argentina
Calificadora de Riesgo, relates the National Securities
Commission of Argentina.

The recently released rating means that the bonds have an
adequate credit risk relative to other issues in the country,
and was based on the Company's finances at the end of September
2004.

The bonds were described as "Obligaciones Negociables Simples no
convertibles en acciones", and matures on April 7, 2005. These
were classified under "Simple Issue."


ASOCIACION ESPANOLA: Gears Up for Reorganization
------------------------------------------------
Court No. 5 of Bahia Blanca's civil and commercial tribunal
issued a resolution opening the reorganization of Asociacion
Espanola de Beneficencia de Bahia Blanca - Hospital Regional
Espa¤ol de Proteccion Reciproca.

The pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. Reorganization further allows the Company to retain
control of its assets subject to certain conditions imposed by
Argentine law and the oversight of the court appointed trustee.

Local accounting firm "Estudio Contable Barafini, Zani" will
serve as trustee during the course of the reorganization. The
firm will be validating creditors' proofs of claims until March
29.

CONTACT: Asociacion Espanola de Beneficencia de Bahia Blanca
         Hospital Regional Espanol de Proteccion Reciproca
         Estomba 571
         Bahia Blanca

         "Estudio Contable Barafini, Zani"
         Trustee
         Blandengues 230
         Bahia Blanca


CLISA: Fitch Leaves Debenture Ratings Unchanged
-----------------------------------------------
The Argentine arm of ratings agency Fitch Ratings reaffirmed its
CCC(arg) rating on debentures of up to US$120 million and its
D(arg) rating on debentures for US$100 million issued by
infrastructure and public services holding CLISA, reports the
CNV on its website:

The affected bonds are:

- US$100 million worth of bonds described as "Obligaciones
Negociables con garantia" that matured on June 1, 2004.

- US$120 million worth of bonds described as "Obligaciones
Negociables con garantia (AGO 21-01-03, AD 23-01-03)" maturing
on June 1, 2012.

Fitch rated these bonds based on the Company's financial status
as of September 30, 2004.

CLISA has four operating divisions: mass transportation
management (Metrovias); waste management (environmental
engineering); construction (Benito Roggio e Hijos); and toll-
road management.


IMAGEN SATELITAL: Fitch Retains Bonds' Default Ratings
------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a default
rating on US$80 million worth of Imagen Satelital S.A.'s
corporate bonds called "obligaciones negociables".

Local securities regulator, the CNV, reports that Fitch retained
a junk rating on the bonds based on the Company's financial
status as of September 30, 2004.



===============
B A R B A D O S
===============

C&W BARBADOS: Consumers Score Victory in FTC Ruling
---------------------------------------------------
Intevenors lauded the Fair Trading Commission's (FTC) decision
to junk an appeal submitted by local communications provider
Cable and Wireless Barbados, reports The Barbados Daily Nation.
C&W had raised the appeal after the commission turned down its
petition for a telephone rate increase in July last year.

The FTC decision, viewed as an important victory for consumers,
got the nod of Mr. Ty King, one of the intervenors. Mr. King
argued that instead of a rates hike, the Company should even
consider lowering their cellular phone charges since current
interconnectivity fees still place a heavy burden on costumers.

While the Company had failed at the FTC, it could still carry
its appeal to the courts. Intervenor Hallam Hope says that
"...It would be interesting to see whether a law court would
decide on an argument in their favor."

However, Intervenor Audrey McKenzie, is confident that a court
case is far in the offing because the decision was based on
factual evidence evaluated by a trained tribunal.



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

COVX LIMITED: Names Jefferson Voss as Liquidator
------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                              And

                  IN THE MATTER OF: CovX Limited

The Members of CovX Limited, acting by written consent without a
meeting on January 7, 2005, passed the following resolutions:

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

(2) THAT Mr. Jefferson Voss 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 CovX Limited, which is being voluntarily wound
up, are required, on or before February 2, 2005, to send their
full Christian and Surnames, their addresses and descriptions,
full particulars of their debts or claims, and the names and
addresses of their solicitors (if any) to Jefferson Voss, the
undersigned, c/o Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, HM DX, Bermuda and if so
required by notice in writing from the said Liquidator, and
personally or by their solicitors, to come in and prove their
debts or claims at such time and place as shall be specified in
such notice, or in default thereof they will be excluded from
the benefit of any distribution made before such debts are
proved.

- A final general meeting of the Member(s) of CovX Limited will
be held at the offices of Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda on February
23, 2005 at 9:00 a.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: Mr. Jefferson Voss, Liquidator
         6100 Payne Stewart Drive
         Windermere, Florida 34786
         USA


INTELSAT: Fitch Ratings Initiates Coverage
------------------------------------------
Fitch Ratings has initiated coverage of Intelsat, Ltd.
(Intelsat) and its wholly owned subsidiary, Intelsat (Bermuda),
Ltd. (Intelsat Bermuda) and expects to assign a 'B-' rating to
Intelsat's unsecured senior notes, a 'B+' rating on the proposed
offering of Intelsat Bermuda unsecured senior notes, and a 'BB'
rating to the proposed new Intelsat Bermuda senior secured
credit facilities upon finalization of buyout terms from Zeus
Holdings. The Rating Outlook would be Stable.

Fitch's rating action would affect an estimated $4.6 billion of
existing and proposed pro forma total debt as of the end of the
third quarter 2004. Fitch's expected ratings are based on the
assumption that contributed equity will be at least $515
million, total consolidated debt is in the range of $4.6
billion, and the ratio of total debt to EBITDA is approximately
6 times (x). If the terms of the Zeus buyout deviate from these
expectations, the ratings will be reviewed and could be revised.

Fitch's expected ratings reflect Intelsat's size and scale as
the second largest global provider of wholesale fixed satellite
services, its high prospective leverage of about 6x (as measured
by total pro forma debt to pro forma EBITDA), its adequate
liquidity position, and Fitch's expectation for modest free cash
flow generation even after its planned $5.1 billion acquisition
by Zeus Holdings. Fitch's expected ratings also consider the
intense competition for lease contracts in the face of industry
overcapacity and difficult telecommunications industry
conditions. Although Intelsat is the largest provider of
commercial satellite capacity to the U.S. government and
military, its largest customer segment remains traditional
telephone carriage. This segment has been experiencing a decline
in revenue due to both the overcapacity in the satellite
industry and to a loss of customers to lower cost terrestrial
fiber optic cable. The expected ratings also consider the
growing competition from the company's largest rival, SES
Global.

The expected ratings are based on Intelsat's pro forma capital
structure after an expected $5.1 billion acquisition by
financial buyers investing about 10% ($515 million) of the
purchase price in equity. Based on the estimated purchase price,
this amount of equity leaves only thin asset coverage of the
consolidated pro forma total debt. Although free cash flow
should be sufficient to support modest capital spending and debt
reduction, liquidity could be constrained if new satellite
construction ramps up again. Unexpected satellite failures, such
as the IS-804 failure on Jan. 14, 2005, may lead to earlier than
planned capital spending requirements. Key to Fitch's
expectation of stable EBITDA and free cash will be maintaining
low capital expenditure levels after its recent rapid deployment
and acquisition of new satellite capacity. Over the long term,
satellites will need to be replaced as useful lives end. The
cost of these satellite replacements could be substantial as
demonstrated by the nearly $300 million per satellite that
Intelsat spent on its new satellite additions over the past
several years. The expected ratings also reflect possible
sensitivity to the telecommunications sector specifically and to
overall economic activity in general. Credit support is derived
from a backlog of customer contracts of approximately $3.9
billion, which should provide stability in revenue generation.
Even under the increased debt burden, pro forma total debt at
Sept. 30, 2004 will be increasing from $2.2 billion to an
estimated $4.6 billion, Intelsat should still produce free cash
flow annually.

Intelsat's liquidity position is supported by pro forma cash in
excess of $80 million and an expected $300 million initially
undrawn revolver. Fitch expects that a significant portion of
expected free cash flow will be utilized to reduce leverage and
increase its financial capacity for future satellite additions.
The initiation of a common stock cash dividend over the
foreseeable future, without a material improvement in industry
conditions and Intelsat's financial performance could have a
significant detrimental impact on the company's credit profile.
During 2005, Fitch anticipates that the company will generate
free cash flow levels of more than $200 million, representing a
modest 4% of total debt. Fitch expects total consolidated
leverage, as measured by the ratio of total debt to EBITDA, to
remain over 5x over the next couple of years.

Other than a $200 million February 2005 debt maturity, for which
Intelsat Bermuda has arranged replacement financing in the form
of a new secured term loan, Intelsat has nominal amounts of
scheduled debt maturities from 2005-2007; however, $400 million
of its 5.25% senior notes mature in 2008, presenting refinancing
risk. Fitch believes that this refinancing risk is magnified,
given the company's possible need to ramp up its capital
spending in that time frame.

Fitch's expected 'B-' rating for Intelsat Ltd.'s pro forma $1.7
billion of senior notes versus the expected 'B+' rating for
Intelsat Bermuda's estimated pro forma $2.45 billion of senior
notes reflects the structural subordination of the parent
company notes to the proposed subsidiary senior notes to be
issued by Intelsat Bermuda and the diminished recovery prospects
of the parent company notes relative to the subsidiary notes.
Fitch's expected 'BB' rating for the proposed new Intelsat
Bermuda senior secured credit facilities (the expected draw will
be $350 million with $300 million unused on a revolver) reflects
the substantial value of the assets securing the facilities.

Fitch's expected Stable Rating Outlook reflects the prospects
for stable revenues from its lease backlog and the expected
resulting free cash flow balanced with the very competitive
operating environment, ownership by an investment group, and
possible steep future increases in capital spending
requirements.

These expected ratings are based on existing public information
and are provided as a service to investors.


INTELSAT: Reports Loss of IS-804 Satellite
------------------------------------------
Intelsat, Ltd. announced this week that its IS-804 satellite
experienced a sudden and unexpected electrical power system
anomaly on January 14, 2005, at approximately 5:32 p.m. EST that
caused the total loss of the spacecraft. In accordance with
existing satellite anomaly contingency plans, Intelsat is in the
process of making alternative capacity available to its IS-804
customers. The satellite, launched in 1997, furnished
telecommunications and media delivery services to customers in
the South Pacific. Intelsat and Lockheed Martin Corporation, the
manufacturer of the satellite, are working together to identify
the cause of the problem. Intelsat currently believes that there
is no connection between this event and the recent IA-7
satellite anomaly as the two satellites were manufactured by two
different companies and their designs are different.

A number of Intelsat-operated satellites in the region are being
utilized to restore service to affected customers, and many end
users of IS-804 capacity are already operating normally using
replacement capacity. Intelsat has also begun working with other
fleet operators where necessary to ensure the quickest possible
restoration of service for customers.

"The loss of a satellite is an extremely rare event for us, and
our first priority must be restoration of service to our
customers," said Conny Kullman, CEO of Intelsat, Ltd. "Intelsat
remains firmly committed to the region that was covered by IS-
804, and all necessary effort and assets will be allocated to
ensure Intelsat satellite coverage throughout the Asia-Pacific
region."

Intelsat expects to record a non-cash impairment charge of
approximately $73 million to write off the value of the IS-804
satellite. The IS-804 was not insured, in accordance with
Intelsat's practice of insuring only those satellites with a net
book value greater than $150 million.

Under the terms of the Transaction Agreement and Plan of
Amalgamation for the sale of Intelsat dated August 16, 2004,
among Intelsat, Ltd., Intelsat (Bermuda), Ltd., Zeus Holdings
Limited (Zeus Holdings), Zeus Merger One Limited and Zeus Merger
Two Limited, the total loss of the IS-804 satellite gives Zeus
Holdings the right to not consummate the acquisition of
Intelsat. Zeus Holdings has advised Intelsat that it is
evaluating the impact of the IS-804 failure.

About Intelsat

As a global communications leader with 40 years of experience,
Intelsat helps service providers, broadcasters, corporations and
governments deliver information and entertainment anywhere in
the world, instantly, securely and reliably. Intelsat's global
reach and expanding solutions portfolio enable customers to
enhance their communications networks, venture into new markets
and grow their businesses with confidence.

CONTACT: INTELSAT, LTD.
         E-mail: media.relations@intelsat.com
         Tel: +1 202-944-7500


INTELSAT: Company Profile
-------------------------
Name: Intelsat (Bermuda), Ltd.
      Wellesley House North, 2nd Floor
      90 Pitts Bay Road
      Pembroke, HM 08
      Bermuda

Telephone: +1 441-294-1650

Fax: +1 441-292-8300

Website: http://www.intelsat.com

Business Description:

Intelsat, Ltd. is a leading provider of satellite communications
services worldwide, supplying video, data and voice connectivity
in over 200 countries and territories. Its services are used by
leading multinational corporations, the U.S. Government and
major communications providers around the world, including major
broadcasters in the United States.

Founded in 1964, Intelsat has provided communications capacity
for some of the most memorable events in modern history - from
broadcasting the video signals of the first moon walk, to
providing the "hot line" connecting the White House and the
Kremlin, to broadcasting live television coverage of every
Olympics since 1968.

Employees: Staff of 850


FINANCIAL HIGHLIGHTS:

Total Assets: US$5.072 billion in 2003

Total Liabilities: US$2.713 billion in 2003

Total Revenue: US$952.8 million in 2003

EBITDA: US$708.3 million

EBITDA as a percentage of revenue: 74%

CAPEX: US$222.5 million

To view historical financial data:
http://bankrupt.com/misc/Intelsathistoricaldata.pdf

LONG-TERM DEBT ISSUED AND OUTSTANDING:

- Eurobond 8.125% notes due February 28, 2005: $200 million

- 5.25% Senior Notes due November 1, 2008: $400 million

- 7.625% Senior Notes due April 15, 2012: $600 million

- 6.5% Senior Notes due November 1, 2013: $700 million

MANAGEMENT TEAM:

CEO: Mr. Conny L. Kullman

CFO: Mr. William J. Atkins

COO: Mr. Ramu V. Potarazu


RESIDUAL SOLUTIONS: Resolves to Wind-Up Operations
--------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                             And

    IN THE MATTER OF Residual Solutions International, Ltd.

The Member of Residual Solutions International, Ltd., acting by
written consent without a meeting on 17th January, 2005 passed
the following resolutions:

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

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

The Liquidator informs that:

- Creditors of Residual Solutions International, Ltd., which is
being voluntarily wound up, are required, on or before February
2, 2005 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator
of the said Company, and if so required by notice in writing
from the said Liquidator, and personally or by their lawyers, to
come in and prove their debts or claims at such time and place
as shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.

- A final general meeting of the Member of Residual Solutions
International, Ltd. will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on February 23, 2005 at 9:30 a.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: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


TOWER FSC: Proceeds With Voluntary Liquidation
----------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                           And

                IN THE MATTER OF Tower FSC, Ltd.

The Members of Tower FSC, Ltd., acting by written consent
without a meeting on January 12, 2005 passed the following
resolutions:

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

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

The Liquidator informs that:

- Creditors of Tower FSC, Ltd., which is being voluntarily wound
up, are required, on or before February 2, 2005 to send their
full Christian and Surnames, their addresses and descriptions,
full particulars of their debts or claims, and the names and
addresses of their lawyers (if any) to Robin J Mayor at Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, HM DX, Bermuda, the Liquidator of the said Company,
and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Members of Tower FSC, Ltd. will
be held at the offices of Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda on February
25, 2005 at 9:30 a.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: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda



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

BANCO ITAU: Sees Overwhelming Demand for Bond Issue
---------------------------------------------------
Brazilian bank Banco Itau SA completed Wednesday an overseas
bond issue totaling US$125 million, reports Dow Jones Newswires.
The operation was coordinated by ABN Amro Bank (ABN) and Banco
Itau itself. A source from the bank said Itau had originally
planned to place only US$50 million, but strong demand lifted
the issue to US$125 million. The 36-month bonds placed at an
annual yield of 4.50%.

Meanwhile, the country's securities regulator gave Itau unit Cia
Itauleasing de Arrendamento Mercantil approval to sell BRL4
billion (US$1.48 billion) of bonds in the domestic market. The
bonds will mature in 2024 and the sale is being managed by Banco
Itau BBA SA, the regulator said. Half of the bonds will be
linked to the interbank deposit rate and the other half will pay
6.5 percent annually plus the variation of the U.S. dollar
against the Brazilian currency, the regulator said.


CSN: CSFB to Lead $200M Debt Offering
-------------------------------------
Brazilian steelmaker Companhia Siderurgica Nacional (CSN) (NYSE:
SID) took on Credit Suisse First Boston to lead a debt offering
of US$200 million at 10% maturing in 2015, reports Business News
Americas.

The sale is scheduled for January 21 and the price was fixed at
105.125% of face value and an investor interest rate of 9.184%,
a premium of 498 basis points above US Treasuries.

CSN is the second-largest flat carbon steel maker in Brazil,
with a total capacity for 5.8 million tpy of crude steel and 5.4
million tpy of rolled products. The company's steel mill, the
largest in Brazil, is located in the city of Volta Redonda,
state of Rio de Janeiro (the Presidente Vargas Steelworks).

CONTACT: CSN
         Luciana Paulo Ferreira, Investor Relations
         Tel: 5511 3049-7591
         E-mail: luferreira@csn.com.br
         Web site: http://www.csn.com.br


UNIBANCO: Secondary Offering of Shares
--------------------------------------
Unibanco-Uniao de Bancos Brasileiros S.A. ("Unibanco") and
Unibanco Holdings S.A. ("Holdings") filed on January 18, 2005
with the CVM documents for a secondary offering to the public in
Brazil of Units owned by Commerzbank Aktiengesellschaft
("Commerzbank") and BNL International Investments S.A. ("BNL").

Commerzbank and BNL are offering an aggregate of 41,719,726
Units (exclusive of an over-allotment option granted by BNL to
the underwriters for the offering in Brazil for an additional
4,177,661 Units). Each Unit is composed of one Unibanco
preferred share and one preferred share of Holdings. Pricing of
the sale of the Units is expected to occur on or about January
31, 2005.

The Units being offered will not be or have not been registered
under the Securities Act and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration requirements.

CONTACT: Unibanco-Uniao de Bancos Brasileiros S.A.
         Unibanco Holdings
         Avenida Eusebio Matoso 891
         Sao Paulo, 05423-901
         Brazil
         Phone: 55-3789-8000
         Website: http://www.unibanco.com.br


VARIG: Unibanco to Aid Reorganization
-------------------------------------
Viacao Aerea Rio Grandense SA (Varig) revealed Tuesday that it
has signed Banco Unibanco, Brazil's third-largest bank, to aid
the airline company in a broad "financial and ownership
reorganization," relates Dow Jones Newswires.

In a statement, Varig said: "As an extension of the work to be
undertaken, additional consultants may be contracted in areas
such as legal and tax services but always under the leadership
of Unibanco."

The airline, whose total debts are estimated at about BRL6
billion ($1=BRL2.72) by financial market analysts, offered no
details regarding the said reorganization.

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: www.varig.com.br/english/
          Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

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



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

AES GENER: Natural Gas Cuts Force Plant to Use Diesel as Fuel
-------------------------------------------------------------
The ongoing cuts in Argentine natural gas deliveries to Chile
drove Electrica Santiago (Essa), a local unit of AES Gener, to
switch the fuel supply at its 380MW thermoelectric Nueva Renca
plant to diesel from natural gas.

Citing a statement from CEO Luis Felipe Ceron, Business News
Americas reports that the plant was converted to operate with
diesel from Jan. 12 after gas export restrictions forced Essa to
shut the plant down Jan. 10.

But according to the statement, the plant can only operate at
320MW maximum capacity using diesel fuel, which is some 50MW
less than usual. Diesel costs the company US$84/MWh, it added.

The financial impact of using diesel "is represented by the
higher cost of using alternative fuel and higher purchases on
the spot market as well as lower sales on that market," AES
Gener said. The impact on the company's financial results "is
not possible to define at this stage," the statement said.

The plant, located in Chile's capital Santiago, normally uses
about 1.65 million cubic meters of gas a day imported from
Argentina through the GasAndes pipeline.


ENDESA CHILE: Argentine Gas Cuts Won't Impact Earnings
------------------------------------------------------
Chilean power generator Empresa Nacional de Electricidad SA
(Endesa Chile) said the restrictions in Argentine natural gas
deliveries to Chile is unlikely to affect the company's
earnings, Dow Jones Newswires reports.

"Endesa (Chile) and its units have maintained a policy of
balanced contracting that guarantees a very reduced exposure to
hydrological events and restrictions in gas supply," the company
said in a letter to securities regulator SVS.

The SVS requested Endesa Chile to submit information on its
financial health after Argentina again began restricting gas
exports to Chile.

Endesa Chile is controlled by Endesa SA (ELE) of Spain via its
Enersis SA (ENI) unit.

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



===================
C O S T A   R I C A
===================

ICE: Sells Bonds to Finance Hydroelectric Project
-------------------------------------------------
Costa Rica's state power producer ICE is selling bonds worth
US$15 million to finance part of its US$170 million, 82MW
Cariblanco hydroelectric project, Business News Americas
reports, citing ICE project manager Marco Antonio Jara.

The 9-year bonds, which will pay interest quarterly at an annual
rate, will be issued by El Fideicomiso de Titularizacion del
Proyecto Hidroelectrico Cariblanco, a trust fund created by ICE
and local bank Banco Nacional to carry out the operation. Offers
on the bonds will be accepted through Jan. 25, Jara said. Each
bond costs US$1,000 and will be issued on Jan. 27.

The Cariblanco project is being built on the Sarapiqui river in
Heredia province. The project's financing plan includes issuing
similar amounts of bonds every three or four months until the
plant is completely financed, Jara said.

Construction began in November and operations are scheduled to
start in September-October 2007. However, "we are hoping that
operations could start in the first quarter of 2007. Let's say
March of 2007," Jara said. Construction is approximately 27%
complete, he added.



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

PETROECUADOR: Colonial-Panamericana Wins $38M Insurance Contract
----------------------------------------------------------------
Ecuadorian insurance provider Colonial-Panamericana won a
US$38.6 million contract to insure the fixed and operating
assets of state oil company Petroecuador and its subsidiaries
for 24 months, reports Business News Americas.

Petroecuador, whose assets are worth over US$3 billion, awarded
the contract to Colonial-Panamericana in December, when its
previous one-year policy with the same company expired.

The only other bidder on the contract was Seguros Rocafuerte,
which bid US$43.4 million in November last year.



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

C&W JAMAICA: Wants in on Fiber-Optics Consortium
-------------------------------------------------
Cable & Wireless (C&W) is moving to become part of a consortium
that is building a fiber-optic line connecting Jamaica to the
rest of the world, reports the Jamaica Observer.

C&W's interest in the Trans Caribbean Cable Company (TCCC)
surprised industry observers because the two tenders offered by
the Jamaican government were intended to break the Company's
monopoly over fibre-optic communications, a factor blamed for
high Internet costs in the country.

Mr. Brian Crawford, TCCC president, revealed Tuesday that C&W
has been negotiating its entry into the group since December. If
its bid is successful, C&W is set to join 32 other
telecommunication companies under TCCC. Notable members include
MCI, Verizon and Cingular/AT&T.

TCCC's plan, approved by the government last week, involves
building an undersea cable line from Jamaica into Dominica
Republic and ultimately into the United States.



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

CORPORACION DURANGO: Replaces Independent Auditor
-------------------------------------------------
Corporacion Durango, S.A. de C.V. (BMV: CODUSA) (the Company or
Corporacion Durango), the largest integrated paper producer in
Mexico, announced that it has appointed PricewaterhouseCoopers,
S.C. as its independent auditors.

PricewaterhouseCoopers will replace Galaz, Yamasaki, Ruiz
Urquiza, S.C. The Companys decision to appointment the new
auditors came as a result of the budget policies of the
subscriber.

CONTACT: Corporacion Durango, S.A. de C.V.
         Ms. Mayela R. Velasco
         Phone: +52 (618) 829 1008
         E-mail: mrinconv@corpdgo.com.mx

         White & Case LLP
         Mr. Emilio J. Alvarez-Farre
         Phone:(305) 995-5219
         E-mail: ealvarez@whitecase.com


CYDSA: Concludes Capitalization, Debt Restructuring Process
-----------------------------------------------------------
-- Noteholders Meeting approved the exchange of US$159 million
Notes for Shares and Convertible Debentures.

-- Capitalization of the Total US$159 million Notes in Cydsa, S.
A. de C.V. (Holding).

-- The exchange of US$76 million of Textile Bank Debt, for
equity in Cydsa's Chemical Companies.

-- Bank and Notes Debt is reduced by US$209 million.

-- Substantial improvement of its Financial Structure:
Liabilities / Equity Ratio from 3.09 to 1.22 times, and Debt /
Equity Ratio from 1.87 to 0.47 times.

-- The Restructured Bank Debt is sustainable by its chemical
companies and there are sources of payment to service US$ 25.5
million of Convertible Debentures.

A Meeting of Holders of US$158,997,000 9.375% Notes issued by
Cydsa and due in June 2009, was held Wednesday. The Meeting
approved an Extraordinary Resolution to exchange the outstanding
principal amount of the Existing Notes, plus accrued and unpaid
interest thereon, for an aggregate of:

a)  27,366,750 shares of Cydsa's voting Series "A" Common Stock.

b)  136,833,749 shares of Cydsa's newly authorized non-voting
Series "C" Stock and convertible into Series "A" Shares with
voting rights within a period of time not exceeding May 1, 2008.

c)  US$25.5 million principal amount of Cydsa's Convertible
Debentures with maturity on May 1, 2008 (unless advanced to May
1, 2007, if certain conditions are not met), accruing interest
at a fixed annual rate of 5%, capitalized Treasury Shares, if
not paid in full.

The exchange was effected on the terms and the conditions set
forth in Cydsa's Proxy Solicitation and Offering Circular, dated
November 16, 2004, supplemented December 16, 2004, and related
documents.

Additionally, the creditor Banks of Cydsa, S. A. de C. V. and
subsidiaries, did the following:

--  Debt capitalization of the textile companies for US$76.0
million and the Creditor Banks* receiving 16.45% of the shares
of the subsidiary company Valores Qummicos, S. A. de C. V.,
which is the owner of the shares of the Chemical companies of
Cydsa; Cydsa being under obligation to buy such shares by no
later than January 11, 2011.

  *  Creditor Banks include Banamex-Citibank, BBVA-Bancomer and
     Comerica  Bank, which have capitalized US$69.4 million in
     Debt for 15% of the shares of Valores Quimicos, S. A. de C.
     V. Also included is Bancomext, which has capitalized US$6.6
     million in Debt for 1.45% of the shares of Valores
     Qummicos, S. A. de C. V.

The Comision Nacional Bancaria y de Valores CNBV (National
Banking and Securities Commission of Mexico) has approved the
issue of the aforementioned shares and the Comision Federal de
Competencia Economica (Federal Economic Competition Commission
of Mexico) has approved the operation. As a result of the
agreements of Cydsa with the Noteholders and Creditor Banks, as
of the close of September 2004, the total Banking and Notes debt
is reduced by US$209 million, from US$375 to US$166 million.

With these operations, a substantial improvement is obtained in
the financial position of CYDSA. Taking the figures reported to
the Bolsa Mexicana de Valores (Mexican Stock Exchange) as of the
close of September 2004, the ratio of Total Liabilities to
Equity would show a significant improvement, after taking into
account the capitalization, by moving from 3.09 to 1.22 times.
In like manner, the Current Ratio would move from 0.60 to 1.72
times and the Debt / Equity Ratio from 1.87 to 0.47 times.

Cydsa's Management feels that with this new Debt structure, the
Group and its Subsidiaries have sufficient assets and financial
capacity to service the debt with Banks and the payment of the
US$25.5 million of Convertible Debentures, while honoring
commitments to suppliers and other creditors.

In summary, the London resolutions allowed Cydsa to conclude the
following major agreements:

--  The exchange of US $159 million Notes, for Cydsa's Shares
and the Issuance of US $25.5 million of Convertible Debentures.

--  The exchange of US $76 million of Textile Bank Debt, for
equity in Cydsa's Chemical Companies.

--  The final implementation of a March 16, 2004 Bank Debt
Restructuring Agreement, previously dependent on Cydsa's
successful negotiation with the Noteholders.

These agreements have allowed Cydsa to completely restructure
its major Debt. Cydsa's emphasis will now be directed to the
strengthening of its current business portfolio, in order to
assure medium and long-term profitable growth.


LUZ Y FUERZA: Closes In on Debtors
----------------------------------
Mexican energy supplier Luz y Fuerza del Centro (LyFC) will be
knocking on the doors of debtors to collect monies expected to
improve its own financial standing.

El Universal reports that the move comes after the Inter-
Secretarial Spending omission and the Treasury Secretariat
(SHCP) ordered the company to collect overdue accounts with its
large clients.

Among the first casualties of the policy change is the state of
Hidalgo where the Company has suspended electricity supply,
cutting off water pumping and public lighting facilities for
close to two million people. Hidalgo has unpaid debts totaling
US$27.63 million.

Company director Luis de Pablo Serna says that LyFC will contact
more indebted municipalities in the central zone of Mexico in
the coming months.

LyFC's bad debts total US$481 million, an amount almost equal to
a quarter of its yearly income.


MINERA AUTLAN: Sees Bigger 4Q Sales on Rising Demand for Alloy
--------------------------------------------------------------
Mexican mining firm Compania Minera Autlan SA (AUTLAN.MX) filed
a preliminary earnings report with the stock exchange, saying it
expects to post MXN584.7 million in sales for the fourth
quarter.

The anticipated figure, which is 7% higher from the third
quarter and 125% higher than in the year-ago period, is
attributed in part to higher demand for manganese alloys,
particularly among steel manufacturers.

The report also reveals earnings before interest, taxes,
depreciation and amortization (EBITDA) of MXN187.6 million for
the fourth quarter, compared with MXN23.5 million in the fourth
quarter of 2003.

For the full-year 2004, sales rose 79% to MXN1.75 billion, and
EBITDA was MXN383.1 million, compared with a loss the previous
year, Autlan said.



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

PAN AMERICAN SILVER: Files Shelf Prospectus
-------------------------------------------
Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) has filed a
preliminary short form shelf prospectus with the securities
commissions in each of the provinces of Canada and a
corresponding registration statement with the United States
Securities and Exchange Commission. These filings, when made
final, will allow the Company to make offerings of common
shares, warrants, debt securities, subscription receipts or any
combination thereof of up to $150 million during the next 25
months on similar terms to potential purchasers anywhere in
these provinces and the United States.  The proceeds from any
such offerings will be used by the Company to fund development
of the Alamo Dorado project, development of the Manantial Espejo
project, expansion of the Morococha mine, ongoing exploration
programs, working capital requirements or for other general
corporate purposes. At this time the Company has no immediate
plans to make any offerings; however, the size, nature and
timing of any offerings will be based on the Company's future
funding needs and on general market conditions.

A registration statement relating to these securities has been
filed with the United States Securities and Exchange Commission
but has not yet become effective.  These securities may not be
sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective.  This news release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in
any state in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state. A copy of the prospectus may
be obtained from the Company's Vice-President, Corporate
Relations.

CONTACT: Ms. Brenda Radies
         Vice-President Corporate Relations
         Pan American Silver Corp.
         Phone: (604) 806-3158
         Web site: http://www.panamericansilver.com/



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

VENEPAL: President Chavez Signs Expropriation Order
---------------------------------------------------
Venezuela's President Hugo Chavez has signed an order to
immediately expropriate the assets of bankrupt paper company
Venepal, according to an Associated Press WorldStream report.

The president signed the order Wednesday at meeting with the
former employees of the company that ceased operations last
month. At the signing, workers vowed to cooperate with the
government to rebuild the company.

The expropriation came less than a week after Venezuela's
National Assembly declared Venepal of "public interest," a step
that is required before the state can seize the company's
assets.

Venepal was a leading paper company in Venezuela before
conflicts with factory workers forced the company to cease
operations in late 2004.


* VENEZUELA: Vows to Meet Oil-Linked Debt Payment Obligations
-------------------------------------------------------------
Venezuela's finance ministry announced Wednesday that the
government intends to pay bonuses on oil-linked debt obligations
using the US$30 million that it will deposit into an account
managed by JP Morgan, reports Dow Jones Newswires.

The announcement came a day after ratings agency Standard &
Poor's cut Venezuela's credit rating to 'SD' (selective default)
from 'B' because it failed to meet an estimated US$35 million
oil-indexed payment obligations that were due on Oct. 15, 2004.

Deeming S&P's action as a "rushed decision," the finance
ministry said it has a "clear intention" to pay the obligations
as soon as the government "determines the parameters of
established calculations in the contract."

Analysts doubt that Venezuela - awash with windfall oil revenue
- will default on the payments.

"There is little reason to doubt Venezuela's statements
promising to cure - as quickly as possible - the delay in paying
its oil warrants obligation," said Bear Stearns Analysts Jose
Cerritelli in a report Wednesday.




                            ***********


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

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