TCRLA_Public/050214.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, February 14, 2005, Vol. 6, Issue 31

                            Headlines

A R G E N T I N A

BELLAS S.R.L.: Court Approves Concurso Motion
BUSSINET S.R.L.: Judge Approves Bankruptcy
CIELO SUR S.R.L.: Court Favors Creditor's Bankruptcy Petition
EDITORIAL MERCADO: Court Converts Liquidation to Reorganization

EPIRO S.A.: Court Finds in Creditor's Favor
KEYSER S.A.: Initiates Bankruptcy Proceedings
LA TRIBU S.R.L.: Seeks Court Approval for Reorganization
SCEVOLA HERMANOS: To Submit General Report February 17
TRANSENER: S&P Releases Ratings Report; Clarifies Default

TURBINA S.A.: Initiates Bankruptcy Proceedings
* ARGENTINA: Congress Votes to Ban Debt Offer Improvement


B E R M U D A

NORTHERN OFFSHORE: Shareholders Approve Restructuring Plan


B R A Z I L

BANCO VOTORANTIM: Launches Real-Denominated Bond Issue
EMBRATEL: February 22 Record Date Set for ADS Rights Offering
GLOBOPAR: Summons Bondholders to March 17 Meeting
NET SERVICOS: Opens Debt Swap for Multicanal Bonds


M E X I C O

CINTRA: IPAB to Recover $314M From Sale
CORPORACION DURANGO: Mexican Court Approves Reorganization Plan
CYDSA: Bullish on Sales Prospects; Intends to Slash Debt
GRUPO ELEKTRA: To Launch Own Credit Bureau
HYLSAMEX/ALFA: Sale Talks Send Stock Up

UNEFON: Cofetel Freezes 1,900MHz Band Auction
VITRO: S&P Affirms VENA's Ratings At 'B+'


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Gets Better Borrowing Rate


     - - - - - - - - - -


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

BELLAS S.R.L.: Court Approves Concurso Motion
---------------------------------------------
Court No. 19 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Bellas S.R.L.,
according to a report from Argentine daily La Nacion. In its
filing, the Company reported debts totaling US$114,332.48

Clerk No. 38 assists the court with the proceedings.

CONTACT: Bellas S.R.L.
         Av. Cordoba 785
         Buenos Aires


BUSSINET S.R.L.: Judge Approves Bankruptcy
------------------------------------------
Bussinet S.R.L. was declared bankrupt after Court No. 9 of
Buenos Aires' civil and commercial tribunal endorsed a
liquidation petition filed by Banco Rio de la Plata.

Argentine daily La Nacion reports that bank has claims totaling
US$50,297.45. Clerk No. 17 assists the court on this case.

CONTACT: Bussinet S.R.L.
         Arenales 1415
         Buenos Aires


CIELO SUR S.R.L.: Court Favors Creditor's Bankruptcy Petition
-------------------------------------------------------------
Union de Obreros y Empleados Plasticos successfully sought for
the bankruptcy of local plastics producer Cielo Sur S.R.L. after
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared the Company "Quiebra," reports La Nacion.

The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$2,557.80.

Clerk No. 18 assists the court on the case that will culminate
the liquidation of all of its assets.

CONTACT: Cielo Sur S.R.L.
         Alvarado 1165
         Buenos Aires


EDITORIAL MERCADO: Court Converts Liquidation to Reorganization
---------------------------------------------------------------
Editorial Mercado S.R.L., which was undergoing liquidation,
proceeds with reorganization on orders from Court No. 13 of
Buenos Aires' civil and commercial tribunal, according to
Infobae.

The court assigned Ms. Lydia Elsa Albite as the Company's
trustee. The credit verification process will be done "por via
incidental", says the report

CONTACT: Ms. Lydia Elsa Albite, Trustee
         Tacuari 119
         Buenos Aires


EPIRO S.A.: Court Finds in Creditor's Favor
-------------------------------------------
Epiro S.A. entered bankruptcy after Court No. 13 of Buenos
Aires' civil and commercial tribunal approved a bankruptcy
motion filed by Roxana Ledesma Rocha, reports La Nacion. The
Company's failure to pay US$21,507.09 in debt prompted the
creditor to file the petition.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Epiro S.A.
         Av. Paseo Colon 823
         Buenos Aires


KEYSER S.A.: Initiates Bankruptcy Proceedings
---------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared Keyser S.A. "Quiebra," reports Infobae. Mr. Jacobo
Beker, who has been appointed as trustee, will verify creditors'
claims until April 4 and then prepare the individual reports
based on the results of the verification process. The individual
reports will be submitted in court on May 16 followed by the
general report on June 28.

Clerk No. 19 assists the court on the case that will close with
the liquidation of the Company's assets to repay creditors.

CONTACT: Mr. Jacobo Beker, Trustee
         Jeronimo Salguero 2244
         Buenos Aires


LA TRIBU S.R.L.: Seeks Court Approval for Reorganization
--------------------------------------------------------
Court No. 19 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by La Tribu S.R.L. Argentine daily La Nacion reports that
the company filed the request after defaulting on its debt
payments.

The reorganization petition, if granted by the court, will allow
the company to negotiate a settlement with its creditors in
order to avoid a straight liquidation. Clerk No. 19 assists the
court on this case.

CONTACT: La Tribu S.R.L.
         Guardia Vieja 3400
         Buenos Aires


SCEVOLA HERMANOS: To Submit General Report February 17
------------------------------------------------------
Mr. Tomas Rivero, the trustee overseeing the liquidation of
Scevola Hermanos S.A.I.C., is scheduled to submit a general
report of the case on February 17. The general report provides
the court with an audit of the company's accounting and business
records.

Court No. 1 of Concepcion del Uruguay civil and commercial
tribunal handles this case with assistance from the city's Clerk
No. 1.

CONTACT: Scevola Hermanos S.A.I.C.
         14 de Julio 328
         Concepcion del Uruguay (Entre Rios)

         Mr. Tomas Rivero, Trustee
         3 de Febrero 65
         Concepcion del Uruguay (Entre Rios)


TRANSENER: S&P Releases Ratings Report; Clarifies Default
---------------------------------------------------------
Rationale

Standard & Poor's Ratings Services' 'D' rating on Argentina's
largest electricity transmitter, Compania de Transporte de
Energia Electrica en Alta Tension Transener S.A. (Transener),
reflects the company's current default situation as a result of
the decision to suspend debt service in April 2002. The
company's management continues negotiating the restructuring of
its financial debt with its creditors' steering committee,
created in September 2002 and composed of a majority of bank
creditors, within a context of still high uncertainties in the
Argentine electric sector.

Transener's business and financial profile significantly eroded
because of the pesification and tariff freeze within a context
of strong devaluation of the Argentine peso (ArP) and high
inflation, mainly in 2002 following the end of convertibility in
December 2001. Under this context, Transener's revenues remained
almost stable in peso terms, while part of its operating costs
and capital expenditures and most of its financial costs--which
are linked to the U.S. dollar--strongly increased. As a result,
Transener directed its cash flow to fund operations and halted
service on its financial debt. As of September 2004, the company
holds a very high level of debt as evidenced by its total debt
to capitalization ratio of 78.8%.

Transener has a 95-year concession contract to operate about
7,500 kilometers (km) of high-tension (mainly 500 kilovolt (kV))
transmission lines since 1993, and about 5,500 km of high-
tension (mainly 220 kV and 132 kV) transmission lines in the
province of Buenos Aires since 1997, through its subsidiary
Transba S.A. In addition, Transener has operated and maintained
the 1,300 km high-tension (500 kV) transmission line from the
Comahue region to Buenos Aires since 1999. The company is 65%
controlled by Citelec S.A., an Argentine holding company that
purchased Transener in 1993 from the national government during
the privatization of a great portion of the Argentine electric
sector. With National Grid's transfer authorization of its
participation in Citelec (42.486% to a domestic investor fund
Dolphin Fund Management and 0.007% to Petrobras Energia S.A. by
its preferred exercised rights), both companies hold a 50%
participation in Citelec.

Transener continues to face high regulatory uncertainties
related to the still pending contract concession renegotiation.
In this sense, after the government mandatory pesification and
tariff freezes in 2002, there have not been significant
improvements in the renegotiation of Transener's concession
contract. After several postponements, the Argentine government
extended to December 2005 (under Law 25.792 enacted in November
2004), the date by which the government must complete
renegotiation of concessions for public services. In addition to
the completion date, there are also significant uncertainties
regarding the terms (e.g., extension, tariffs, quality of
service required) of Transener's concession contract. According
to National Decree 1834/2002, insolvency, voluntary filing for
reorganization, or a creditor requesting bankruptcy will not
constitute causes for termination of the concession contract.
These provisions would allow companies that render a public
service according to an exclusive concession, such as Transener,
to file for the protection of such proceedings without risking
the loss of the concession, somewhat alleviating their cash
needs and giving the companies more leverage to negotiate with
investors.

Standard & Poor's expects that Transener's credit quality will
depend mainly on the renegotiation of its concession contract
and the financial debt restructuring. Meanwhile, Transener's
short-term financial performance will depend mainly on the
evolution of the U.S. dollar exchange rate and, to a lesser
extent, the level of inflation.

Liquidity

Transener's financial flexibility and liquidity position are
severely restricted by the company's current default situation.
As of September 2004, the company had about US$557 million of
debt and cash reserves of US$68 million. Transener's liquidity
will remain constrained until the company restructures its debt
profile and improves its cash flow by renegotiating the
concession contract.

Primary Credit Analyst: Sergio Fuentes, Buenos Aires (54) 114-
891-2131; sergio_fuentes@standardandpoors.com

Secondary Credit Analyst: Mariano Ingaramo, Buenos Aires (54)
114-891-2124; mariano_ingaramo@standardandpoors.com


TURBINA S.A.: Initiates Bankruptcy Proceedings
----------------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal
declared Turbina S.A. "Quiebra," reports Infobae. Mr. Juan
Ignacio Estevez, who has been appointed as trustee, will verify
creditors' claims until April 6 and then prepare the individual
reports based on the results of the verification process.

The individual reports will be submitted in court on May 16
followed by the general report on June 27. Clerk No. 3 assists
the court on the case that will close with the liquidation of
the Company's assets to repay creditors.

CONTACT: Mr. Juan Ignacio Estevez, Trustee
         Uruguay 750
         Buenos Aires


* ARGENTINA: Congress Votes to Ban Debt Offer Improvement
---------------------------------------------------------
The Argentine congress approved a bill Thursday, banning the
government from improving its offer to restructure US$104
billion of defaulted debt, reports Bloomberg.

"We're sending a signal to bondholders that we are starting to
be a serious country," said Hector Romero, a member of the lower
house budget and finance committee. "We're closing the debt
negotiations."

Argentina is offering to swap as much as US$81.8 billion face
value of defaulted bonds for new securities worth about 25 cents
on the dollar. The government must complete the exchange in
order to renew talks on a US$13.3 billion loan agreement with
the International Monetary Fund.

With only about a third of bondholders participating in the
swap, the law is intended to discourage investors from holding
out on hopes the nation will improve the terms, Mr. Romero said
before the vote.



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

NORTHERN OFFSHORE: Shareholders Approve Restructuring Plan
----------------------------------------------------------
The joint provisional liquidators (the JPLs) of Northern
Offshore Limited (NOL) announce that at a Special General
Meeting of Shareholders held in Bermuda on February 3, 2005, the
shareholders of NOL voted in favor of all the resolutions that
were required to implement the restructuring of NOL's debt
obligations.

The shareholders voted in favor of a reduction in their existing
issued share capital in order to facilitate the proposed debt-
for-equity swap of NOL's debt obligations to its bondholders.
The shareholders also voted in favor of a number of board
appointments and changes in NOL's board structure in relation to
the governance of NOL on emergence from provisional liquidation.

Mike Morrison of KPMG Financial Advisory Services Limited, one
of the JPLs commented: "This is another positive step towards
the successful restructuring of NOL".

The JPLs can be contacted through:

Mr. Adrian Bourne
KPMG in London
Phone: (+ 44 (0) 207 694 3018)

Mr. Chris Giddens
KPMG Financial Advisory Services Limited in Bermuda
Phone: (+ 1 (441) 294 2653)

About KPMG

KPMG is the global network of professional services firms who
provide audit, tax and advisory services. KPMG LLP operates from
22 offices across the UK with 9,000 partners and staff.  KPMG
recorded a UK fee income of 1,008 million in the year ended
September 2003. KPMG LLP, a UK limited liability partnership, is
the UK member firm of KPMG International, a Swiss cooperative.

CONTACT: Ms. Judith Dow
         KPMG Corporate Communications (London)
         Phone:  0207 694 8584
         KPMG Press Office: 0207 694 8773
         Mobile: 07786 197 718
         E-mail: Judith.dow@kpmg.co.uk



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

BANCO VOTORANTIM: Launches Real-Denominated Bond Issue
------------------------------------------------------
Brazilian bank Banco Votorantim S.A. launched Thursday an
overseas Brazilian real-denominated bond issue totaling US$100
million, according to Dow Jones Newswires. The 36-month bonds
are expected to yield between 16.60% and 17.35% per year.

The operation follows the placement of US$100 million, 24-month
Eurobonds in January. The bonds, yielding 4.25% per year, were
placed at 99.52% of face value.


EMBRATEL: February 22 Record Date Set for ADS Rights Offering
-------------------------------------------------------------
Embratel Participacoes S.A. (NYSE: EMT) ("Embratel"), announced
Thursday that the record date for its rights offering of new
preferred shares represented by American Depositary Shares, or
ADSs, will be February 22, 2005. ADS holders on this record date
will be entitled to receive rights to subscribe for new ADSs in
the offering.

Under the terms of the offering, as described in the
registration statement filed with the Securities Exchange
Commission on February 8, 2005, each ADS holder will be issued
1.267668 ADS rights for every ADS held on the ADS record date.

Each ADS right will entitle ADS holders to purchase one new ADS
in the initial offering round, which is expected to end on March
21, 2005. In order to exercise ADS rights, ADS holders must pay
U.S.$8.83 per ADS, which is the ADS subscription price of
R$21.50 per ADS translated into U.S. dollars, plus an additional
7%, which represents an allowance for currency fluctuations,
conversion expenses, ADS issuance fees of the depositary and
financial transaction taxes in Brazil. Holders of ADS rights who
subscribe for new ADSs will also be permitted to subscribe for
leftover ADSs in reoffering rounds, subject to availability and
in accordance with the terms and conditions set forth in the
registration statement. The ADS rights are expected be listed
for trading on the New York Stock Exchange.

This communication shall not constitute an offer to sell nor a
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 registration or qualification
under the securities laws of such state. A copy of the
registration statement is available from The Bank of New York,
101 Barclay Street, New York, NY, 10286 (tel. 1-800-507-9357).

Embratel is one of Brazil's largest telecommunications services
providers, operating in domestic and international long-
distance, data communications and local services. Service
offerings include telephony, advanced voice, high-speed data
communication services, Internet, satellite data communications,
corporate networks and local voice services for corporate
clients. The company's network has countrywide coverage with
28,868 km of fiber cables comprising 1,068,657 km of optic
fibers.

CONTACT: Ms. Silvia M.R. Pereira
         Embratel Participacoes S.A.
         Investor Relations
         Phone: (55 21) 2121-9662
         Fax: (55 21) 2121-6388
         E-mail: silvia.pereira@embratel.com.br
                 invest@embratel.com.br


GLOBOPAR: Summons Bondholders to March 17 Meeting
-------------------------------------------------
Brazilian TV broadcaster Globo Comunicacoes e Participacoes SA
(Globopar) formally notified bondholders Thursday that a meeting
will be held on March 17 to approve the terms of its US$1.3
billion debt restructuring, relates Dow Jones.

Globopar's creditors, including Citibank NA, J.P. Morgan Chase
Bank, Bank of America NA, Marathon Asset Management LLC, Banco
Finantia SA, Gavea Master Fund and Export Development Canada, as
well as several large Brazilian banks have already given a green
light to the debt deal.

Meanwhile, bond investors holding around US$250 million of debt
and holders of bank loans totaling around US$275 million have
agreed to support the restructuring and to vote in its favor at
any noteholder meetings taking place before April 15.


NET SERVICOS: Opens Debt Swap for Multicanal Bonds
--------------------------------------------------
As part of an effort to restructure BRL1.38 billion in debt,
Brazil's largest pay TV company Net Servicos de Comunicacao S.A.
offered to swap bonds for those issued by its Multicanal
subsidiary. According to a Business News Americas report, the
Multicanal bonds represented a debt of US$127.7 million on June
30 2004.

The company is offering to pay Multicanal holders 40% of their
holding in cash and the rest in new bonds. Net expects 85% of
all debenture holders to accept the offer. The Net offer is open
until March 9.

Multicanal issued its notes in 1996 and was later acquired by
Net Servicos in 2000.

CONTACT: Mr. Marcio Minoru Miyakava
         Head of Investor Relations
         Net Servicos de Comunicacao S.A.
         Phone: +5511 5186-2811
         E-mail: minoru@netservicos.com



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

CINTRA: IPAB to Recover $314M From Sale
---------------------------------------
Mexico's Bank Savings Protection Institute (IPAB) aims to reduce
the cost of its bank bailout with the sale of the 50.49 percent
stake it holds in airline operator Cintra, says El Universal.
The Cintra stake, one of the bank's main assets yet to be
divested, could provide IPAB with at least US$314 million.
Cintra controls local airlines Mexicana and Aeromexico.

The federal government's ownership in IPAB is distributed among
the Treasury Secretariat (SHCP), 10.16 percent, the State credit
organization Nacional Financiera (Nafin), 4.4 percent, and
IPAB's 50.49 percent holding.

Cintra's remaining shares are held by Bancomer, 13.51 percent,
Banamex, 9.75 percent, and Scotiabank Inverlat, 6.21 percent,
Santander Serfin, 1.16 percent, and the Mexico City Stock
Exchange (BMV), 4.4% percent.

CONTACT: CINTRA S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle
         Mexico DF
         Phone: (5)448 - 8000
         E-mail: infocintra@cintra.com.mx


CORPORACION DURANGO: Mexican Court Approves Reorganization Plan
---------------------------------------------------------------
Corporacion Durango, S.A. de C.V.(BMV: CODUSA) (the "Company" or
"Corporacion Durango"), the largest papermaker in Mexico,
announced Tuesday that the First Federal District Court in
Durango, Mexico has approved the Company's plan of
reorganization and declared the termination of its "Concurso
Mercantil" proceeding.

As it was announced before, Corporacion Durango decided to take
advantage of the new Mexican legislation, Concurso Mercantil, as
the most efficient way to formalize a prepackaged agreement with
the purpose of extend it to all the minority creditors that had
not the opportunity to be part of a general agreement.

Through its recapitalization, the Company will have a
competitive capital structure as well as greater financial
flexibility. Miguel Rincon, Chairman of Corporacion Durango,
commented:

"We are gratified that our lenders showed confidence in our
business plan and have worked with the Company in effecting a
successful financial reengineering."

This efficient financial reengineering substantially strengthens
the reputation of Corporacion Durango in the international
financial markets and confirm the reliability of the new
commerce legislation in Mexico.

The execution of the closing documentation is expected to occur
within the next few weeks and at such time a new press release
will be issued by the Company.

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

         Ms. Gabriel Villegas S.
         Phone: +52 (55) 5488 0381
         E-mail: gvillegas@corpdgo.com.mx

         Mr. Miguel Antonio R.
         Phone: +52 (618) 814 1658
         E-mail: rinconma@corpdgo.com.mx


CYDSA: Bullish on Sales Prospects; Intends to Slash Debt
--------------------------------------------------------
Mexican industrial group Cydsa (BMV: CYDSASA) anticipates a 12%
boost in sales this year as market conditions in the US and
Mexico are set to improve. With those expectations, Cydsa
president Tomas Gonzalez said the company intends to further pay
down some US$20 million in debt during 2005.

Early this month, Cydsa announced that it would make a US$22-
million partial advance payment to further reduce its debt,
bringing total debt to US$142 million from US$375 million in
2003.

Cydsa is a major Mexican industrial company with leading market
share in some of its lines of business and with long-standing
relationships with major Mexican and international companies.

CONTACT:  Jose de Jesus Montemayor Castillo
          Chief Financial Officer
          +011-52-81-8152-4585
          URL: http://cydsa.com/Ingles/index.htm


GRUPO ELEKTRA: To Launch Own Credit Bureau
------------------------------------------
Grupo Elektra S.A. de C.V. (BMV: ELEKTRA; NYSE: EKT; Latibex:
XEKT), Latin America's leading specialty retailer, consumer
finance and banking services company, will launch a new credit
bureau to keep its valuable lending records out of the hands of
big bank competitors, reports Reuters.

Credit bureaus maintain records of consumers' lending histories,
helping banks, retailers and automobile dealers decide whether
or not to lend to clients.

Mexico already has a credit bureau made up, in large part, of
the lending histories of relatively wealthier clients of banks.

Elektra, which has become successful by lending to working class
Mexicans, is launching its own credit bureau. According to an
Elektra source, banks would not have access to this credit
bureau because they have little to gain from the credit
histories of middle class Mexicans.

Elektra is controlled by billionaire Ricardo Salinas.

CONTACT: Investor and Press Inquiries:
         Mr. Esteban Galindez, CFA
         Director of Finance & IR
         Grupo Elektra, S.A. de C.V.
         Phone: +52 (55) 1720-7819
         Fax. +52 (55) 1720-7822
         E-mail: egalindez@elektra.com.mx

         Mr. Rolando Villarreal S.
         Head of Investor Relations
         Grupo Elektra S.A. de C.V.
         Phone: +52 (55) 1720-7819
         Fax. +52 (55) 1720-7822
         E-mail: rvillarreal@elektra.com.mx

         Ms. Samantha Pescador
         Investor Relations
         Grupo Elektra S.A. de C.V.
         Phone: +52 (55) 1720-7819
         Fax. +52 (55) 1720-7822
         E-mail: spescador@elektra.com.mx
         Web site: http://www.grupoelektra.com.mx


HYLSAMEX/ALFA: Sale Talks Send Stock Up
---------------------------------------
Shares of Mexican steel maker Hylsamex SA (HYLSAMX.MX) and
parent company Alfa SA (ALFA.MX) were still up Thursday amid
talks that a U.S. steel company could make a bid for the unit.

According to Dow Jones Newswires, around 3:40 p.m. EST, Hylsamex
B shares were up 7.1% at MXN37.65 ($1=MXN11.16), while the L
shares were 7% higher at MXN37.25. Alfa's A shares were up 5.6%
at MXN62.40.

Traders attributed the sharp appreciation of the shares to
widespread speculation that U.S. steel company Nucor Corp.
(NUE), which has been mentioned before as a possible suitor,
could make a bid.

"There's a rumor that a merger is going to go through," said a
trader in New York, who added that it was probably "idle market
chitter chatter."

In a filing with the Mexican stock exchange, Hyslamex said it
had "no knowledge of any particular event" behind the stock
movement.

CONTACT: Mr. Othon Diaz Del Guante
         Phone: +(52) 81-8865-1240
         E-mail: odiaz@hylsamex.com.mx

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

         Mr. Kevin Kirkeby
         Phone: +(646) 284-9416
         E-mail: kkirkeby@hfgcg.com


UNEFON: Cofetel Freezes 1,900MHz Band Auction
---------------------------------------------
Mexico's telecommunications regulator Cofetel provisionally
suspended the auction for the country's 1,900MHz spectrum
bandwidth to examine issues related to the distribution of
holdings on the said frequency.

The Financial Times reports that the suspension has set back the
government's aim of introducing more competition in the mobile
communications market. Two of the major players, Unefon owned by
Grupo Salinas and Telefonica Moviles, a subsidiary of Telefonica
of Spain, have also been granted injunctions from a prior ruling
that limited their holdings in the 1,900Mhz spectrum to a
maximum of 35 percent in any of the country's nine regions.

The ruling, issued by the Federal Competition Commission (CFC),
was intended to open up the 1,900Mhz spectrum by accommodating a
fourth company to compete alongside existing providers Telcel,
America Movil and Iusacell/Unefon.

With the CFC decree, Telefonica was effectively barred from
participating in the bidding since it already owns 35MHz in the
1,900MHz band. Telefonica, however, challenged CFC by claiming
that the regulatory agency had not considered a company's
existing holdings in the 850MHz band before setting the limits
in the 1,900Mhz frequency. Telefonica has no holdings from the
850Mhz while rival Telcel already controls 20 percent on the
same band. Because Telcel holds only 10Mhz in the 1,900Mhz
spectrum, it could still bid for another 25Mhz.

The third player, Grupo Salinas also complained that it should
be allowed to bid for double the bandwidth because its
companies, Unefon and Iusacell are administered separately and
as such, should be treated as separate companies.


VITRO: S&P Affirms VENA's Ratings At 'B+'
-----------------------------------------
Standard & Poor's Ratings Services affirmed its rating on Vitro
Envases Norteamierca S.A. de C.V.'s (Vena) 10.75% senior secured
notes due 2011 at 'B+' following the reopening of the notes,
whereby they were increased by US$80 million for a total
outstanding amount of US$250 million. The terms and conditions
of these notes allow for no structural subordination. Standard &
Poor's also affirmed its 'B+' local and foreign currency
corporate credit ratings on Vena. The outlook remains negative.

The ratings on Vena are equalized with those of its parent
company, Vitro S.A. de C.V. (Vitro), reflecting the latter's
ability and incentive to take assets and/or burden the company
with liabilities thanks to its 100% equity interest in Vena,
which contributes approximately 50% of Vitro's consolidated
EBITDA. "Crossed acceleration clauses between Vena and Vitro's
Yankee bonds provide an additional incentive to the whole
economic entity to honor Vena's debt," said Standard & Poor's
credit analyst Jose Coballasi.

The ratings on Monterrey, Mexico-based Vitro are constrained by
its high financial leverage and the negative trend in
profitability because of increased competition in the domestic
market and the strength of the Mexican peso across Vitro's
business lines. The ratings are supported by the company's
leading position in the flat glass, glass containers, and
glassware business in Mexico; and by Vitro's export activities
and international operations (particularly in the U.S.), which
combined accounted for about 50% of total sales.

The negative outlook reflects the challenging operating and
economic environment faced by Vitro's business, which could lead
to continued weakness in the company's operating performance and
key financial measures. A recovery in the company's operating
and financial performance and the success of its refinancing
plans could lead to a stable outlook.

Primary Credit Analyst: Jose Coballasi, Mexico City (52)55-5081-
4414; jose_coballasi@standardandpoors.com

Secondary Credit Analyst: Federico Mora, Mexico City (52) 55-
5081-4436; federico_mora@standardandpoors.com



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Gets Better Borrowing Rate
-----------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) announced
Thursday that it has amended its senior secured credit facility,
lowering the interest rate on term loan borrowings by 50 basis
points through a reduction in the LIBOR spread from 2.75 percent
to 2.25 percent. The amendment also provides the Company with
additional flexibility under certain of the covenants. As of
November 30, 2004, Centennial had $595.5 million of term loan
borrowings outstanding under its senior secured credit facility.

"This amendment is another significant milestone in the steps we
have taken to improve our financial flexibility and strength,"
said Michael J. Small, Centennial's Chief Executive Officer.

About Centennial

Centennial Communications, based in Wall, NJ, is a leading
provider of regional wireless and integrated communications
services in the United States and the Caribbean with over 1
million wireless subscribers. The U.S. business owns and
operates wireless networks in the Midwest and Southeast covering
parts of six states.

Centennial's Caribbean business owns and operates wireless
networks in Puerto Rico, the Dominican Republic and the U.S.
Virgin Islands and provides facilities-based integrated voice,
data and Internet solutions. Welsh, Carson Anderson & Stowe and
an affiliate of the Blackstone Group are controlling
shareholders of Centennial.

CONTACT: Mr. Steve E. Kunszabo
         Investor Relations Director
         Centennial Communications
         Phone: 732-556-2220

         Web site: http://www.centennialwireless.com/




                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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