TCRLA_Public/050225.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, February 25, 2005, Vol. 6, Issue 40

                            Headlines

A R G E N T I N A

DULCES DEL PLATA: Court Grants Reorganization Plea
FARMACIA CHILE: Judge Approves Bankruptcy
INVESTIGACIONES DUQUE: Case Reverts to Reorganization
JIF S.A.: Verification Deadline Fixed
MASTELLONE HERMANOS: Reveals $10M Investment Plan

MEGASPORT S.A.: Verification Ends April 13
NEGOCIOS INTERNACIONALES: Reports Submission Set
OBRYMSA S.A.: Begins Liquidation on Court Orders
ODISSEY S.R.L.: Liquidates Assets to Pay Debts
PETROBRAS ENERGIA: To Prepay Capital on Series K Bonds Due `07

RABBIONE SU TRANSPORTE: Verification Deadline Approaches
ROAR S.A.: Enters Bankruptcy on Court Orders
SILVER AR S.A.: Liquidates Assets to Pay Debts
TATEDETUTI S.A.: Court Rules for Liquidation
TELECOM PERSONAL: Awards Nokia GSM/Edge Network Deal

* ARGENTINA: To Reveal Results of Debt Swap Next Week


B E R M U D A

JACANA FUND: R. Craig Christensen Appointed Liquidator
LORAL SPACE: Amicably Resolves Differences With Chinasat
LORAL SPACE: dbsxmedia to Acquire BTV Product Line
LORAL SPACE: Secures Commission to Build PanAmSat Satellite
LORAL SPACE: Beats DirecTV8 Satellite Deadline by Two Months

MENTOR INSURANCE: Court Releases Ernst & Young From Proceedings


B R A Z I L

AES ELETROPAULO: Earmarks BRL536.9 Mln for Brazilian Investments
BANCO ITAU: CEO Dispels Rumors About Future Sale
BANCO VOTORANTIM: Net Profit Soars 18% in 2004
EMBRATEL: Board Ratifies Capital Increase
EMBRATEL: Provides Telephone Services To Sao Paulo Govt Office

KLABIN: S&P Releases Report on Ratings
LIGHT SERVICOS: Parent Not Mulling Market Pullout
TAM/VARIG: CADE Backs Plan to End Code-Sharing Agreement


J A M A I C A

KAISER ALUMINUM: US Court Approves Disclosure Statements


P U E R T O   R I C O

DORAL FINANCIAL: Denies Involvement in Regulatory Investigation


U R U G U A Y

* URUGUAY: IMF Approves $213.8M Disbursement


V E N E Z U E L A

PDVSA: Energy Commission to Probe Into Recent Firings

     -  -  -  -  -  -  -  -

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

DULCES DEL PLATA: Court Grants Reorganization Plea
--------------------------------------------------
Dulces del Plata S.A.I. y C., a Company operating in Buenos
Aires, begins reorganization proceedings after Court No. 4 of
the city's civil and commercial tribunal granted its petition
for "concurso preventivo".

During the reorganization, the Company will be able to negotiate
a settlement for its creditors so as to avoid a straight
liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Daniel E. Altman,
the court-appointed trustee.

Creditors with claims against the Company must present proofs of
the Company's indebtedness to the trustee by April 7. These
claims will constitute the individual reports to be submitted in
court on May 19. The court also requires the trustee to present
an audit of the Company's accounting and business records
through a general report due on July 4.

The Company's informative assembly with its creditors is
scheduled on October 26.

Clerk No. 7 assists the court on this case.

CONTACT: Mr. Daniel E. Altman, Trustee
         Parana 774
         Buenos Aires


FARMACIA CHILE: Judge Approves Bankruptcy
-----------------------------------------
Farmacia Chile S.R.L. was declared bankrupt after Court No. 3 of
Mendoza's civil and commercial tribunal endorsed a petition for
the Company's liquidation, says Infobae.

The court assigned Mr. Ricardo Jose Peron to supervise the
liquidation process as trustee.

CONTACT: Farmacia Chile S.R.L.
         Las Heras 501
         Mendoza

         Mr. Ricardo Jose Peron, Trustee
         Espana 713
         Mendoza


INVESTIGACIONES DUQUE: Case Reverts to Reorganization
-----------------------------------------------------
Investigaciones Duque S.A. proceeds with reorganization after
Court No. 5 of Buenos Aires' 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.

Mr. Guillermo Torres, the court-appointed trustee, will verify
creditors' proofs of claims until April 15. Creditors with
unverified claims cannot participate in the Company's settlement
plan. Further, individual reports are up for court submission on
May 30. The general report submission follows on July 12.

Clerk No. 9 assists the court on this case.

CONTACT: Mr. Guillermo Torres, Trustee
         Avda Corrientes 922
         Buenos Aires


JIF S.A.: Verification Deadline Fixed
-------------------------------------
The verification of creditors' claims for the Jif S.A.
insolvency case is set to end on April 14, states Infobae.

Mr. Miguel Adolfo Kupchik, the court-appointed trustee tasked
with examining the claims, will submit the validation results as
individual reports on May 27. He will also present a general
report in court on July 11. On December 22, the Company's
creditors will vote on the settlement proposal prepared by the
Company.

The Company's reorganization is under the jurisdiction of  Court
No. 10 of Buenos Aires' civil and commercial tribunal. The
city's Clerk No. 20 assists the court with the proceedings.

CONTACT: Mr. Miguel Adolfo Kupchik
         Adolfo Alsina 1360
         Buenos Aires


MASTELLONE HERMANOS: Reveals $10M Investment Plan
-------------------------------------------------
Just a few months after it completed a US$329-million debt
restructuring, Argentine dairy producer Mastellone Hermanos
announced plans to invest US$10 million, which would enable it
to double its actual production of milk powder.

With these investments, Mastellone, owner of La Serenisima, the
leading dairy milk producer will be able to produce 5 million of
liters of milk per day in 2007.

In the meantime, the Company, headed by Mr. Pascual Mastellone,
has shown a good recovery on the volume of its sales.


MEGASPORT S.A.: Verification Ends April 13
------------------------------------------
The verification of creditors' claims for the Megasport S.A.
insolvency proceedings will continue until April 13 after Court
No. 7 of Buenos Aires' civil and commercial tribunal commuted
the Company's ongoing liquidation into reorganization.

Infobae reports that Mr. Juan Ignacio Estevez oversees this case
as the court appointed trustee. The city's Clerk No. 13 assists
the court with the proceedings.

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


NEGOCIOS INTERNACIONALES: Reports Submission Set
------------------------------------------------
Mr. Ruben Eduardo Gonzalez, the trustee assigned to supervise
the reorganization of Negocios Internacionales Sur de America
S.A., will submit validated individual claims for court approval
on March 9. These reports explain the basis for the accepted and
rejected claims.

Infobae reports that Mr. Gonzalez will also submit a general
report of the case on July 7. The Company's creditors are
scheduled to approve a completed settlement plan during the
informative assembly on November 11.

Court No. 2 of Mendoza's civil and commercial tribunal has
jurisdiction over this case.

CONTACT: Mr. Ruben Eduardo Gonzalez, Trustee
         Monsenor Zabalza 30
         Mendoza


OBRYMSA S.A.: Begins Liquidation on Court Orders
------------------------------------------------
Obrymsa S.A. of Buenos Aires will begin liquidating its assets
after Court No. 11 of the city's civil and commercial tribunal
declared the Company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee Rosa Isabel Santos.

Ms. Santos will review claims forwarded by the Company's
creditors until April 13. After claims verification, the trustee
will submit the individual reports for court approval on May 26.
The general report submission will follow on July 7.

Clerk No. 22 assists the court on this case.

CONTACT: Ms. Rosa Isabel Santos, Trustee
         Avda Corrientes 6031
         Buenos Aires


ODISSEY S.R.L.: Liquidates Assets to Pay Debts
----------------------------------------------
Odissey S.R.L. will begin liquidating its assets following the
bankruptcy pronouncement issued by Court No. 3 of Buenos Aires'
civil and commercial tribunal, Infobae reports.

The ruling places the Company under the supervision of court-
appointed trustee Maria Cenatiempo. Ms. Cenatiempo will verify
creditors' proofs of claims until March 28. The validated claims
will be presented in court as individual reports on May 9.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy on June 22.

The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.

CONTACT: Ms. Maria Cenatiempo, Trustee
         Avda de Mayo 1365
         Buenos Aires


PETROBRAS ENERGIA: To Prepay Capital on Series K Bonds Due `07
--------------------------------------------------------------
Petrobras Energia SA (Buenos Aires: PESA) informed the Buenos
Aires stock market of its intent to prepay US$90.9 million of
capital on its US$286 million series K bonds that expire 2007,
relates Business News Americas.

The Company, a unit of Brazil's federal energy producer
Petrobras (NYSE: PBR), also said it intends to pay interest
corresponding to the period January 4-February 25. The bonds pay
annual interest at Libor plus 4%.

In a separate statement, Petrobras Energia also said it plans to
prepay part of the capital on its US$182 million class M bonds
due 2007. The Company, however, didn't say how much of the
capital it will pay or when.

CONTACT: Petrobras Energia Participaciones SA
         Avenida de Mayo 701, Piso 16
         Buenos Aires,
         Phone: (212) 657-5100
         Fax: (212) 825-5674
         Web Site: http://www.petrobrasenergia.com


RABBIONE SU TRANSPORTE: Verification Deadline Approaches
--------------------------------------------------------
The verification of claims for the Rabbione Su Transporte S.A.
bankruptcy case will end on April 29 according to Infobae.
Creditors with claims against the bankrupt Company must present
proof of the liabilities to Mr. Jorge Raul Mencia, the court-
appointed trustee, by the said deadline.

Court No. 1 of Buenos Aires' civil and commercial tribunal
handles the Company's case with the assistance of Clerk No. 1.
The bankruptcy will conclude with the liquidation of the
Company's assets to pay its creditors.

CONTACT: Mr. Jorge Raul Mencia, Trustee
         Avda Roque Saenz Pena 615
         Buenos Aires


ROAR S.A.: Enters Bankruptcy on Court Orders
--------------------------------------------
Roar S.A. enters bankruptcy protection after Court No. 11 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 22, ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to the
court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Mr. Silvio Mordkowicz as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on April 5.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on May 17 followed by the general report that is due on June 30.

CONTACT: Mr. Silvio Mordkowicz, Trustee
         Vicente Lopez 1739
         Buenos Aires


SILVER AR S.A.: Liquidates Assets to Pay Debts
----------------------------------------------
Buenos Aires-based Silver Ar S.A will begin liquidating its
assets following the bankruptcy pronouncement issued by Court
No. 21 of the city's civil and commercial tribunal.

The ruling places the Company under the supervision of court-
appointed trustee Fidel Augusto Pandolfi. The trustee will
verify creditors' proofs of claims until March 31. The
bankruptcy process will end with the disposal Company assets in
favor of its creditors.

Clerk No. 42 assists the court on this case.

CONTACT: Silver Ar S.A.
         Avda Cordoba 1351
         Buenos Aires

         Mr. Fidel Augusto Pandolfi, Trustee
         Capdevilla 3169
         Buenos Aires


TATEDETUTI S.A.: Court Rules for Liquidation
--------------------------------------------
Court No. 15 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Tatedetuti S.A. after the Company
defaulted on its obligations, Infobae reveals.

The liquidation pronouncement will effectively place the
Company's affairs as well as its assets under the control of
local accounting firm "Estudio Estevez, Musante." As trustee,
the firm will verify creditors' proofs of claims until May 2.

The city's Clerk No. 30 assists the court on this case that will
end with the disposal of the Company's assets in favor of its
creditors.

CONTACT: "Estudio Estevez, Musante"
         Trustee
         Sarmiento 1426
         Buenos Aires


TELECOM PERSONAL: Awards Nokia GSM/Edge Network Deal
----------------------------------------------------
Telecom Personal has selected Nokia to supply a GSM/EDGE radio
network to cover nine provinces in northern Argentina. Telecom
Personal is a new network customer for Nokia. The new network is
already in service. Under the agreement, Nokia has deployed
EDGE-capable base stations and related equipment in the
provinces of La Rioja, Catamarca, Formosa, Misiones, Santa Fe,
Chaco, Corrientes, Entre Rios, and Cordoba. In addition, Nokia
has provided operations support system (OSS), implementation
services, base station optimization, spare parts, and project
management. The services will be provided using Nokia NetActa,
the only fully featured, multi-vendor, multi-technology
operations support system on a single platform.


* ARGENTINA: To Reveal Results of Debt Swap Next Week
-----------------------------------------------------
Argentina's economy ministry said Tuesday that the government
will announce the final results of its historic debt swap on
March 2 or 3, reports Reuters.

As of Feb. 18, creditors holding US$41 billion worth of
Argentine bonds had accepted its restructuring offer.

Analysts expect investors to sign up in droves just before the
deadline on Feb. 25. Analyst Carola Sandy at CSFB in New York
said the dollar figure could indicate acceptance stood at around
41 percent, in line with expectations.

Argentina is offering creditors around the world up to
US$41.8 billion in new debt in exchange for US$81.8 billion in
debt principal on which it defaulted in early 2002, or US$102.6
billion including past due interest.



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

JACANA FUND: R. Craig Christensen Appointed Liquidator
------------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                           And

             IN THE MATTER OF Jacana Fund Ltd.

At a special general meeting of the Members of Jacana Fund Ltd.,
duly convened and held at the registered office at Century
House, 16 Par-la-Ville Road, Hamilton, Bermuda, on February 18,
2005, the following resolutions were passed:

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

(2) that R. Craig Christensen 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 Jacana Fund Ltd., which is being voluntarily
wound up, are required, on or before the 18th day of March 2005
to send their names and addresses and the particulars of their
debts or claims to the Liquidator of the Company 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 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 Jacana Fund Ltd.
will be held at the offices of Arthur Morris, Christensen & Co.,
Century House, 16 Par-la-Ville Road, Hamilton, Bermuda on March
31, 2005 at 10.00 a.m. for the following purposes:

(1) receiving an account showing the manner in which the
winding-up of the Company has been conducted and its property
disposed of and hearing any explanation that may be given by the
Liquidator;

(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 of the Company.

CONTACT: R. Craig Christensen, Liquidator
         Century House
         16 Par-la-Ville Road
         Hamilton, Bermuda


LORAL SPACE: Amicably Resolves Differences With Chinasat
--------------------------------------------------------
Loral Space & Communications announced Wednesday that it has
reached a settlement with China Telecommunications Broadcast
Satellite Corporation (ChinaSat) regarding the Space
Systems/Loral-built ChinaSat 8 satellite and its launch.
Beneficial to both parties, this settlement amicably resolves
all outstanding differences between the Company and ChinaSat.

Under the terms of the settlement, which is subject to
bankruptcy court approval, Space Systems/Loral (SS/L) will
continue to seek the required State Department approvals to
export the satellite and agrees to assume its contract with
ChinaSat, as amended to reflect the terms of the settlement.

Further, SS/L has no obligation to deliver the ChinaSat 8
satellite until all required export licenses are received.  Also
pursuant to the agreement, ChinaSat will withdraw all claims
filed against SS/L and release it from any related liabilities.

Furthermore, ChinaSat has the right under the settlement to
assign its rights in the satellite contract to a third party
under certain circumstances.

"We are very pleased with the outcome of our settlement
discussions with ChinaSat," stated Bernard L. Schwartz, Loral's
chairman and CEO.

"This accord resulted from a high degree of cooperation between
the parties to arrive at a solution that is favorable to both of
us."

About Chinasat

Based in Beijing, China, ChinaSat is the first satellite Company
that operates satellites and provides satellite
telecommunications and broadcast services in China.

About Loral Space

Loral Space & Communications is a satellite communications
Company. Its Space Systems/Loral division is a world-class
leader in the design and manufacture of satellites and satellite
systems for commercial and government applications including
direct-to-home television, broadband communications, wireless
telephony, weather monitoring and air traffic management.

Through its Loral Skynet division, it owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services.

CONTACT: Ms. Jeanette Clonan
         Mr. John McCarthy
         Phone: (212) 697-1105

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


LORAL SPACE: dbsxmedia to Acquire BTV Product Line
--------------------------------------------------
Loral Skynet announced Wednesday that it has selected dbsXmedia,
part of the Ariel Way, Inc. group of companies, to assume the
management and further development of Loral Skynet's traditional
business television services (BTV), subject to certain closing
conditions, including bankruptcy court approval.

Under the terms of the transaction, dbsXmedia will acquire Loral
Skynet's BTV client base in exchange for cash, stock in the
Company of its funding partner, Ariel Way, Inc., and ongoing
contracts for infrastructure support from Loral Skynet. The
ownership transition will leave unchanged the services for
current customers under an agreement that maintains the existing
teleport and satellite infrastructure provided by Loral Skynet.

dbsXmedia has agreed that some of the employees of Loral
Skynet's BTV group will transfer to dbsXmedia's new offices in
Plymouth, England and Frederick, Maryland. This highly
experienced team will take over the daily operations of
customers' corporate communications networks, ensuring seamless,
high quality service.

"dbsXmedia's management team, dedication to effective corporate
communications networks, and financial backing make it the ideal
partner for both Loral Skynet and our BTV customers," said
Patrick Brant, president, Loral Skynet.  "And, the divesture of
the BTV business allows Loral Skynet to focus on its core fixed
satellite and network services businesses."

"We aim to provide the BTV client base with both continuity and
rapid improvements to the overall service offer," said David
Howgill, CEO, dbsXmedia.

"Loral Skynet will provide the core of our services
infrastructure; we will provide the know-how, technology and
service - the combination of which allows us to provide state-
of-the-art solutions for video, radio and digital signage
solutions for the corporate and retail world."

About dbsXmedia

dbsXmedia aims to provide communication infrastructure and
integrated multimedia services to corporations throughout the
United States and Europe. dbsXmedia is part of the Ariel Way,
Inc. group of companies (OTCBB:NFDV). dbsXmedia's executive
management has over 25 years of experience in the video and
transmission industry. dbsXmedia will operate from offices in
the United States and United Kingdom, providing industry-leading
solutions for BTV, digital signage and interactive media
delivered over a combination of satellite, terrestrial and
wireless networks.

About Ariel Way

Ariel Way is a technology and services Company providing highly
secure global communications solutions. The Company is focused
on developing innovative and secure technologies, acquiring and
growing advanced emerging technology companies and national and
global communications service providers. The Company also
intends to create strategic alliances with companies offering
complementary product lines and services. Ariel Way's technology
development effort includes highly secure communications
solutions and services.

About Loral Skynet

A pioneer in the satellite industry, Loral Skynet delivers the
superior service quality and range of satellite solutions that
have made it an industry leader for more than 40 years. Through
the broad coverage of the Telstar satellite fleet, in
combination with its hybrid VSAT/fiber global network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration. Headquartered in Bedminster, New
Jersey, Loral Skynet is dedicated to providing secure, high-
quality connectivity and communications.

CONTACT: Mr. John McCarthy
         Phone: (212) 338-5345

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


LORAL SPACE: Secures Commission to Build PanAmSat Satellite
-----------------------------------------------------------
Space Systems/Loral (SS/L) announced Wednesday that it has been
selected by PanAmSat Corporation, Wilton, Conn., to build Galaxy
18, a new Fixed Satellite Service (FSS) satellite that will
deliver 10 kilowatts of power over a 15-year lifetime.

"We are pleased to once again be selected by PanAmSat to build
an important piece of its global network," said Patrick DeWitt,
president, Space Systems/Loral. "Because of SS/L's cost-
effective integration of advanced satellite features with high
performance, space-proven technology, PanAmSat will be able to
deliver highly competitive and reliable services to their
customers."

The satellite's hybrid communications payload will carry a total
of 48 operating transponders, including 24 high-power Ku-band
and 24 C-band transponders. The satellite is designed to operate
from PanAmSat's 123 degrees West orbital location. The contract
is subject to standard bankruptcy court approval.

When delivered in 2007, Galaxy 18 will become PanAmSat's newest
satellite covering the contiguous United States, Alaska, Hawaii,
and Puerto Rico, in addition to Canada and Mexico, and will be
the fifth spacecraft built for PanAmSat by SS/L. Galaxy 16 is
also under construction at SS/L's facility in Palo Alto,
California and is planned for delivery in 2006.

The satellite is based on SS/L's flight-proven, 1300,
geostationary satellite platform, which has a long and proven
record of reliable operation. Currently, there are 48 SS/L 1300
satellites on orbit, performing a variety of critical
communications functions.

About PanAmSat

Through its owned and operated fleet of 23 satellites, PanAmSat
is a leading global provider of video, broadcasting and network
distribution and delivery services. In total, the Company's in-
orbit fleet is capable of reaching over 98 percent of the
world's population through cable television systems, broadcast
affiliates, direct-to-home operators, Internet service providers
and telecommunications companies. In addition, PanAmSat supports
the largest concentration of satellite-based business networks
in the U.S., as well as specialized communications services in
remote areas throughout the world.


LORAL SPACE: Beats DirecTV8 Satellite Deadline by Two Months
------------------------------------------------------------
Space Systems/Loral (SS/L) announced Wednesday that it has
successfully completed all assembly, integration and tests of
the DIRECTV 8 satellite, more than two months ahead of the
contracted schedule. This progress was capped recently by the
successful completion of the pre-shipment readiness reviews held
in Palo Alto, Calif. The acCompanying photo shows the satellite
in the SS/L antenna test range.

The DIRECTV 8 satellite, built for The DIRECTV Group, Inc. of El
Segundo, Calif., is a high power Ku/Ka-band hybrid satellite.
The satellite's primary mission is to maintain high quality,
high power DBS service to existing DIRECTV customers. The Ka-
band payload will improve DIRECTV's ability to collect and
deliver high quality television programming.

"I am impressed by the ability of SS/L to complete this
satellite so far ahead of schedule," said Jim Butterworth,
senior vice president, communication systems, DIRECTV, Inc.

"This is almost unheard of in the satellite industry and is
emblematic of SS/L's demonstrably improved manufacturing
processes."

C. Patrick DeWitt, president, Space Systems/Loral, said, "We are
proud to contribute to the success of DIRECTV. SS/L understands
the importance of meeting our commitments to customers, which is
why we have made a considerable investment in recent years to
improve our industry-leading high power satellites. The DIRECTV
8 program was the first to fully benefit from the process
improvements SS/L has developed and put in place. I could not be
happier with the efforts of SS/L's employees to deliver this
satellite more than two months early."

The DIRECTV 8 satellite will provide selectable medium and high
power Ku-band broadcast services to the U.S. on up to 32
transponders. The service is optimized to support the current
and next generation higher coding rate services that DIRECTV
provides. The Ka-band payload will use the full 1,000 MHz of Ka-
band communications bandwidth available to link DIRECTV
facilities as part of DIRECTV's dramatic infrastructure
development for the upcoming launch of local digital and high
definition services in the Ka-band. The satellite is designed to
provide almost 8,500 watts of DC power at the end of its 15-year
mission life and will weigh less than 3,800 kilograms at
separation from the Proton launch vehicle. The satellite will
remain in Palo Alto until it is time to ship the satellite to
the launch site for integration with the Proton launch vehicle.

About DirecTV

DIRECTV is the nation's leading and fastest growing digital
multichannel television service provider with more than 13.9
million customers. DIRECTV and the Cyclone Design logo are
registered trademarks of DIRECTV, Inc., a unit of The DIRECTV
Group Inc. (NYSE: DTV). The DIRECTV Group is a world-leading
provider of digital multichannel television entertainment and
broadband satellite networks and services. The DIRECTV Group is
34 percent owned by Fox Entertainment Group, which is
approximately 82 percent owned by News Corporation.


MENTOR INSURANCE: Court Releases Ernst & Young From Proceedings
---------------------------------------------------------------
                 IN THE SUPREME COURT OF BERMUDA COMPANIES
                               (WINDING-UP)

                                    And

                  IN THE MATTER OF THE COMPANIES ACT 1981

                                    And

                       IN THE MATTER OF SECTIONS 33
                     AND 35 OF THE INSURANCE ACT 1978

              AND IN THE MATTER OF: Mentor Insurance Limited

By Order of the Supreme Court dated February 17, 2005, Mr.
Charles W. Kempe Jr. of Ernst & Young, Reid Hall, 3 Reid Street,
Hamilton HM 11, Bermuda and Mr. Nigel J. Hamilton of Ernst &
Young LLP, 1 More London Place, London SE1 2AF, London , England
have been released as the Joint Liquidators of Mentor Insurance
Limited pursuant to Section 178 of The Companies Act 1981.

CONTACT: "Appleby, Spurling & Hunter"
         Attorneys for the Joint Liquidators
         Canon's Court
         22 Victoria Street
         Hamilton, Bermuda



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

AES ELETROPAULO: Earmarks BRL536.9 Mln for Brazilian Investments
----------------------------------------------------------------
The companies controlled by the AES Group in Brazil intend to
invest, together, R$ 536,9 million in 2005. It is the highest
amount that the group, of North American origin and a major one
in the electric sector worldwide, has designed for its local
operators since it arrived in Brazil in 1998.

Power distributors AES Eletropaulo, based in Sao Paulo, and AES
Sul, of Rio Grande do Sul, should demand the greatest amount of
those resources. The former, the largest utility in the country,
has been proposed R$ 428 million, and AES Sul, R$ 65,5 million.
Generators AES Tiete (with 10 hydroelectric plants in the State
of Sao Paulo) and AES Uruguaiana (thermoelectric plant located
in Rio Grande do Sul) intend to invest, respectively, R$ 35,9
million and R$ 7,5 million.

Excluding the amounts for 2005, since it came to Brazil, the AES
Group has invested approximately R$ 2,5 billion in the
controlled local companies' operation. The acquisition of AES
Sul, AES Tiete and AES Eletropaulo, in privatization auctions,
demanded over R$ 3,3 billion. More than R$ 900 million was
invested in the construction of the AES Uruguaiana
thermoelectric power plant alone.

The new proposals were announced on Tuesday, the 22nd, by the
Group's chief officer in Brazil, Eduardo Jose Bernini, during an
event oriented to trendsetters and sector agents. According to
Bernini, the year 2004 was dedicated to the implementation of
new business guidelines. "We want 2005 to be the year of
consolidation of those very same guidelines that involve
economic-financial balance, on-going improvement in the quality
of services, enhanced customer service, a closer relationship
with the communities the companies belong to and greater
transparency with all interlocutors".

It is because of such a transparency proposal that the AES Group
holds, on an annual basis, the Conjuntura e Estrategia [State of
Affairs and Strategy] breakfasts, when it renders account of
what it achieved in the previous year and produces the projects
for the year running. In 2004 the event focused on AES
Eletropaulo. This year it comprised all operator companies
controlled by the Group.

Funding

AES Eletropaulo intends to invest R$ 77 million in the system
expansion and R$ 54 million in the system modernization, in
addition to R$ 57 million in customer service. To recover
business losses R$ 26 million-worth of investments is projected.

To the AES Sul utility, funding of R$ 25,7 million is intended
to be applied in customer service, R$ 22,3 million in the
quality of service and R$ 11,1 million in transmission systems.

As for the year 2004, a good portion of efforts focused on AES
Eletropaulo's and AES Sul's financial areas, aiming to readjust
their debts profile and hold a closer relationship with
investors. In December, AES Eletropaulo joined Level 2 of the
Bovespa Corporate Governance. Also, the companies underwent a
deep reformulation in their internal framework and developed
several special projects, among which, fight against fraud and
the regularization of clandestine connections (in the case of
AES Eletropaulo) and preparation to join the carbon credits
market (AES Tiete).

CONTACT: AES Corporation
         1001 N. 19th St.
         Suite 2000
         Arlington, VA 22209
         USA
         Phone: 703-522-1315
         Web site: http://www.aesc.com


BANCO ITAU: CEO Dispels Rumors About Future Sale
------------------------------------------------
Banco Itau (ITU), Brazil's second-largest private bank, is "not
for sale," Roberto Setubal, the bank's chief executive officer,
was quoted on Tuesday as saying.

Dow Jones says Setubal's comments came amid speculations in the
market that Itau or some other large local bank could go under
the hammer with Citigroup often named as the buyer.

"It would be very expensive to buy Itau," Setubal said, adding
"I doubt anyone would want to try it. Setubal said Itau was
worth the equivalent of US$20 billion, on paper, but that anyone
buying it would likely have to pay a premium.

CONTACT:  Banco Itau Holding Financiera S.A.
          Praca Alfredo Egydio de Souza Aranha
          100 - Torre Conceicao - 11
          Sao Paulo, 04344-902
          Brazil
          Website: http://www.itau.com.br
          Phone: +55 11 3242 1771
          Officer: Roberto E. Setubal, Pres. & CEO


BANCO VOTORANTIM: Net Profit Soars 18% in 2004
----------------------------------------------
Banco Votorantim, Brazil's ninth largest bank in terms of
equity, posted a net profit of BRL741 million (US$285 million)
for 2004, 18% higher than the profit in 2003, reports Business
News Americas.

The bank's full year profit translated into an annualized ROE of
24%.

Banco Votorantim executive VP Wilson Masao is looking at an even
higher net profit this year despite last year's strong
performance.

During 2004, Banco Votorantim sold a total of US$516 million in
Euro bonds, making it one of the most active Brazilian banks on
the international capital markets.

Banco Votorantim was also the first among Brazilian banks to
begin selling real-denominated bonds on the international
markets last year. Just recently, the bank completed an overseas
Brazilian real-denominated bond issue totaling the equivalent of
US$100 million. The 36-month bonds were placed at an annual
yield of 17.1%.

Banco Votorantim, a unit of the industrial conglomerate Grupo
Votorantim, reported equity of BRL3.1 billion at the end of
2004.


EMBRATEL: Board Ratifies Capital Increase
-----------------------------------------
DATE & TIME: February 23, 2005, 3:00 P.M.

PLACE: Rua Regente Feijo 166/1687-B
       Centro, Rio de Janeiro

CALL TO THE MEETING AND PRESENCE: The Members of the Board of
Directors were called to the meeting in a regular manner as well
as, in accordance with terms of Article 163 of Law nž 6.404/76.

AGENDA: To rectify and ratify the decision taken by the Board of
Directors on February 03, 2005 at 07:00PM.

OPINION OF THE BOARD OF AUDITORS: Initially, it was reiterated
to the Board Members that the Board of Auditors had already
issued, on February 03, 2005, an opinion in favor of the
proposed capital increase, which is transcribed as follows:

"After having examined the Company's management proposal, the
Board of Auditors has issued an opinion that favors the
Company's management proposal, under the following terms:

(i) increase the capital stock, which is currently
R$2,273,913,387.00 (two billion, two hundred seventy three
million, nine hundred thirteen thousand, three hundred eighty
seven reais), to up to R$4,096,713,387.00 (four billion, ninety
six million, seven hundred thirteen, three hundred eighty seven
reais), with an increase, therefore, of up to R$1,822,800,000.00
(one billion, eight hundred twenty two million, eight hundred
thousand reais), of which up to 157,658,651,441 (one hundred
fifty seven billion, six hundred fifty eight million, six
hundred fifty one thousand, four hundred forty one) in common
shares and up to 266,248,325,303 (two hundred sixty six billion,
two hundred forty eight million, three hundred twenty five
thousand, three hundred and three) in preferred shares, all of
them identical to the outstanding shares, at an issue price of
R$4.30 (four reais and thirty cents) per lot of one thousand
shares, through a private subscription by the current
shareholders; and

(ii) the maintenance by the Company of its decision to increase
the capital stock provided that the amount subscribed reaches
the minimum level of R$911,400,000.00 (nine hundred eleven
million, four hundred thousand reais).

DECISIONS: The members of the Board of Directors present to the
meeting unanimously approved the resolutions below without
restrictions, considering that:

(a) On February 16, 2005, the Brazilian Securities and Exchange
Commission (Comissao de Valores Mobiliarios - "CVM"), through
Deliberation CVM #478, suspended the process to subscribe to new
shares of the Company, as approved by the February 03, 2005
meeting of the Board of Directors at 07:00PM, until the
conditions contained in that Deliberation were met. On February
18, 2005, through Deliberation CVM #479, CVM authorized Embratel
Partcipacoes' management to resume the capital increase process,
it being necessary, however, to change all dates and/or time
intervals originally approved on the February 03, 2005 meeting;
and

(b) The Board Members also deliberated on a new wording to item
(iii), including item (iv) and reordering the items of sub-item
4.6., of item 4, of Deliberation (A), with the purpose to
clarify the procedures relative to the subscription of leftover
shares, rectified and ratified the decision taken by the Board
of Directors on February 03, 2005 at 07:00PM under the following
terms:

(A) CAPITAL INCREASE OF THE COMPANY.

1. Following the decision taken on the Board Meeting on December
15, 2004 and having examined the Company management's proposal
as well as the opinion of the board of auditors, the final terms
of the capital increase were approved, within the limits of the
authorized capital, of R$2,273,913,387.00 (two billion, two
hundred seventy three million, nine hundred thirteen thousand,
three hundred eighty seven reais), to up to R$4,096,713,387.00
(four billion, ninety six million, seven hundred thirteen, three
hundred eighty seven reais), with an increase, therefore, of up
to R$1,822,800,000.00 (one billion, eight hundred twenty two
million, eight hundred thousand reais), of which up to
157,658,651,441 (one hundred fifty seven billion, six hundred
fifty eight million, six hundred fifty one thousand, four
hundred forty one) in common shares and up to 266,248,325,303
(two hundred sixty six billion, two hundred forty eight million,
three hundred twenty five thousand, three hundred and three) in
preferred shares, all of them identical to the outstanding
shares, at an issue price of R$4.30 (four reais and thirty
cents) per lot of one thousand shares, for both classes of
shares of the Company, through a private subscription by the
current shareholders, with preemptive right being extended to
the holders of American Depositary Shares ("ADSs"), considering
the proposal presented by the management of the Company and the
justifications mentioned in item 2 below, as well as the
favorable opinion issued by the Board of Auditors. The Company
shall maintain its decision to increase the capital stock
provided that the subscription amount reaches a minimum level of
R$911,400,000.00 (nine hundred eleven million, four hundred
thousand reais).

2. The following reasons justify the capital increase:

(a) The Company intends to reduce its net debt levels and the
financial costs of its controlled Company, Empresa Brasileira de
Telecomunicacoes S.A. - Embratel, through injection of funds to:
(i) redeem 35%, or US$96,250,000.00 (approximately
R$250,635,000.00), of the aggregate principal amount outstanding
under Embratel's US$275,000,000.00 (approximately
R$716,100,000.00) guaranteed notes due 2008. The guaranteed
notes bear interest at 11.0% per annum and mature in 2008. Under
the terms of the guaranteed notes, the redemption price would
equal 111% of the principal amount of the notes, which would
result in an aggregate redemption payment of US$106,837,500.00
(approximately R$278,204,850.00) plus accrued interest; and (ii)
pay short-term debt as it matures. Short-term debt, which may be
repaid with part of the proceeds from the offering or with other
funds, includes R$1,000,000,000.00 in commercial paper issued by
Embratel in Brazil in Reais, maturing in the second quarter of
2005; and

(b) The Company intends to gain financial flexibility to fund
the capital expenditures of the Company and of its subsidiaries.
Proceeds from this capital increase may be used for the
acquisition of certain assets from the controlling shareholder
in Brazil, although no specific transaction has been proposed.

3. The issue price will be of R$4.30 (four reais and thirty
cents) per lot of one thousand shares, for both classes of
shares of the Company. The issue price for the new common and
preferred shares was determined based on the share price of the
preferred shares on Bolsa de Valores de Sao Paulo ("BOVESPA"),
due to its high degree of liquidity, according to terms in
Article 170, paragraph 1, of Law No. 6.404 of December 15, 1976,
as amended ("Lei das Sociedades Anonimas"), and to CVM Advisory
Opinions No. 1 of September 27, 1978, and No. 5 of December 3,
1979. The determination of the issue price of the new shares to
be issued by the Company, based on what was proposed by the
Company management, which was supported by studies made by the
financial advisors of the Company - Goldman Sachs & Co., is a
function of market conditions and is intended to stimulate
shareholder participation and to enable the formation of a
market price for the subscription rights.

The issue price represents (i) a discount of approximately 9%
(nine percent) on the volume weighted average closing price of
the preferred shares in the last thirty (30) trading days at
BOVESPA dating from February 03, 2005; and (ii) a discount of
approximately 19% (19 percent) on the volume weighted average
closing price of the preferred shares in the last sixty (60)
trading days at BOVESPA dating from February 03, 2005.

4. The capital increase approved herein shall be done in
accordance with the following terms and conditions:

4.1. Record and Subscription List: Shareholders holding common
and preferred shares of the Company on March 07, 2005, shall
have preference in the subscription of the capital increase
decided herein, for shares identical to the shares held by them,
in the proportion of: (i) 1.267668090 common shares of each
common share held by them, (ii) 1.267668090 preferred shares for
each preferred share held by them. Shareholders holding ADSs of
the Company on March 10, 2005, shall have preference in the
subscription of the capital increase decided herein, for shares
identical to the shares held by them, in the proportion of and
(iii) 1.267668090 ADSs of each ADS held by them.

4.2. Ex-Rights Trading: Common and preferred shares acquired
beginning on March 08, 2005 shall not entitle the purchaser to
the subscription right.

4.3. Dividends: After ratification of the capital increase by
the Board of Directors, the shares issued will be entitled to
receive the full amount of any dividends to be declared by the
Company thereafter.

4.4. Period to Exercise the Subscription Right: (i) in the
Brazilian market: from March 10, 2005 to April 11, 2005, and
(ii) in the US market: from March 15, 2005 to April 07, 2005.

4.5. Manner of Payment: The shares shall be paid for in cash in
Brazilian currency at the time of subscription.

4.6. Procedure To Subscribe Remaining Shares:

(i) after the end of the exercise period of the preemptive
rights, shareholders who indicated an interest in their
subscription bulletins in subscribing for any leftover
unsubscribed shares shall have a period of three (3) business
days after the determination of the number of leftover shares to
subscribe for such leftover shares;

(ii) shares that remain unsubscribed after the first reoffering
round will again be reoffered to shareholders that have
indicated interest in reserving of new leftover in the leftover
subscription bulletin. Shareholders shall have a period of three
(3) business days after the announcement of the number of
leftover shares from the first offering to subscribe for new
leftover shares;

(iii) the maximum number of shares (including shares in the form
of ADSs) to be allocated to each subscriber will be determined
by multiplying the total number of shares (including shares in
the form of ADSs) that were not subscribed by the percentage
calculated by dividing the number of shares (including shares in
the form of ADSs) subscribed by the respective subscriber by the
total number of shares subscribed (including shares in the form
of ADSs), subscribed by all subscribers that have expressed
interest in subscribing to leftover shares. Note that the
maximum number of leftover shares (including shares in the form
of ADSs) that each subscriber will be entitled to in the second
reoffering round will be calculated based on the result of the
first reoffering round.

(iv) Each subscriber will initially subscribe the leftover
shares relative to the same class of shares that he/she
subscribed for having exercised his/hers preemptive right, up to
the limit of the maximum amount of leftover shares to which each
subscriber will be entitled to, calculated in according to
aforementioned item (iii), at a ratio to be determined by
multiplying the total number of leftover shares of each class by
the percentage calculated by dividing the (x) number of shares
of this same class, subscribed by the respective subscriber who
had indicated interest to subscribe leftover shares by the (z)
number of total shares of the same class subscribed by all
subscribers who had indicated interest to subscribe leftover
shares. If the total amount of leftover shares of the same class
attributable to the respective subscriber is lower than the
total number of shares that he/she is entitled to subscribe, as
calculated according to aforementioned item (iii), the
respective subscriber may subscribe this difference in a
different class of share. If the total amount of leftover shares
of a same class attributable to the respective subscriber is
greater than the total number of shares that that he/she is
entitled to subscribe, as calculated according to aforementioned
item (iii), the respective subscriber will be limited to
subscribe to the total number of shares calculated in the
aforementioned item (iii).

(v) in addition, the Company's management is authorized to
decide if any leftover unsubscribed shares, after two reoffering
rounds, shall be sold in an auction at BOVESPA, for the benefit
of the Company (article 171, paragraph 7, item "b" of Lei das
S.A.s), which auction, if necessary, will be held on May 03,
2005, or shall be allocated among the shareholders through
additional reoffering rounds.

4.7. Ratification: After subscribers effectively pay in the
capital increase approved herein, a new meeting of the Board of
Directors shall be convened to ratify the capital increase of
the Company.

4.8. Notice to the Shareholders: The Company will publish, on
March 02, 2005, a Notice to the Shareholders in a newspaper of
wide circulation in Brazil to communicate the capital increase
approved herein and the terms and conditions for the exercise of
the preemptive subscription rights.

4.9. F-3: In order to enable holders of ADSs traded in the U.S.
market to exercise preemptive rights to subscribe for preferred
shares in the capital increase, Company management filed F-3
Registration Statement with the U.S. Securities and Exchange
Commission and shall make amendments to it to reflect the terms
and conditions approved herein.

4.10. Ratification: The Board of Directors ratifies all acts
taken to date by the Company's management with respect to the
capital increase approved herein."

CONTACT: Embratel Participacoes S.A.
         Rua Regenta Feijo
         166 sala 1687-B Centro
         Rio de Janeiro, 20060-060
         Brazil
         Phone: 5521-519-6474

         Web site: http://www.embratel.net.br


EMBRATEL: Provides Telephone Services To Sao Paulo Govt Office
--------------------------------------------------------------
Local, DDD and IDD calls are now placed through Embratel and get
cheaper

Embratel is in charge of providing the wireline telephone
service to Palacio dos Bandeirantes, headquarters of the
Government of the state of Sao Paulo. The local, DDD and IDD
calls placed from the building located at Avenida Morumbi will
now be via Embratel.

Embratel will make some modifications in the telecommunications
infrastructure of the building, whose numbers of more than 1,000
extensions will be changed. With this new system, the telephone
costs of the management staff will drop by as much as 57%.

In addition to cutting significantly its management staff costs,
the Palacio dos Bandeirantes will be able to improve the control
over its phone bills, since Embratel offers local rates per
minute and delivers its bills in a CD format or through the
Internet, thus enabling the control of all its phone extensions.

Embratel offers fully digital telephone service, connecting the
customer's PABX directly to its exchanges. The service offered
to the corporate market is available nationwide.

Sobre a Embratel

Embratel offers a range of complete telecommunications solutions
to the market all over Brazil, including local, long distance
domestic and international telephone services, data, video and
Internet transmission, and is present all over the country with
its satellite solutions.


KLABIN: S&P Releases Report on Ratings
--------------------------------------
ISSUER CREDIT RATING
  Corporate Credit Rating
    Local currency                         BB/Stable/--
  Corporate Credit Rating
    Foreign currency                       BB-/Stable/--

Major Rating Factors

Strengths:
    * Leading market standpoint in the Brazilian packaging paper
and board industry
    * Favorable cost position due to full integration of forests
and industrial facilities
    * Improved liquidity position after the completion of asset
sale program

Weaknesses:
    * Larger participation of domestic sales on Klabin's
portfolio adds more risk and volatility to the business profile
    * Significantly aggressive capital expenditure and dividend
distribution in the future could result in weaker financial
measures

Rationale

The foreign currency rating on Klabin S.A. (Klabin) reflects the
rating assigned to the Federative Republic of Brazil. The local
currency rating reflects that, apart from the existing sound
financial standpoint it presents, the Company will remain
committed to keeping a disciplined financial policy, even when
considering the larger capital expenditure program (US$500
million) to increase its board production capacity to 650,000
from 320,000 tons per year.

As a result of the major asset divestment carried out in 2003,
which resulted in a cash raise used to cut down half of its
gross indebtedness, Klabin currently presents a significant
level of cash holdings and sound financial ratios. Nevertheless,
Standard & Poor's Ratings Services expects that this excess of
cash is a momentary condition, as the Company plans to carry out
a sizable investment plan to double its boards installed
capacity. As a result, Klabin's figures in the long run (through
the cycle) will likely show financial ratios more converged to
the rating category. Nevertheless, the decision on the expansion
project will depend on the arrangement of proper long-term
financing; thus, Standard & Poor's does not expect deterioration
of the Company's capital structure or an increase in refinancing
risks.

The local currency rating on Klabin also reflects the Company's
leading position on Brazilian paper packaging and board markets;
its very competitive cost position, which derives from high
forest yields and full integration of forest and production
plants; and its more comfortable debt profile going forward. In
addition, the Company's expansion project will be mostly
directed to exports, which will continue to represent an
important cushion to the volatilities of the domestic markets.
These strengths are partially counterbalanced by Klabin's
increased focus on packaging products and the strong correlation
of sales to the performance of the volatile Brazilian economy,
as well as a still-fragmented market for corrugated boxes that
does not allow for rational pricing policies.

Klabin's financial profile had already improved substantially
during 2003 as the Company used resources from asset sales to
pay down debt, reducing its total net debt position to US$174
million in September 2004, down from US$798 million in 2002.
Although EBITDA volume has been steady since 2000 in the range
of US$300 million, cash generation measured by FFO has improved
post-divestment in 2003. This is a result of the significant
debt reduction and the consequent interest burden reduction. In
the nine months ended in September 2004, FFO reached US$222
million (US$138 million in year-to-date (YTD) September 2003),
and FFO-to-total-debt was 62% in the same period (46% in YTD
September 2003 and 28% in full-year 2002). EBITDA to interest
coverage also improved to a high 13.9x in the accumulated
figures of September 2004 (annualized) from 2.83x in the same
period of 2003 and 3.2x in full-year 2002, due to the same
reason.

Liquidity

Klabin's liquidity is highly comfortable for the rating
category. The Company's liquid cash position in Sept. 30, 2004,
amounted to $302 million, while total debt amounted to US$476
million, with maturities spread out over the next several years.
In 2005 and 2006, total debt maturities amount to some US$130
million and US$168 million, respectively. According to Standard
& Poor's projections, Klabin's cash position and its free
operating cash flow of some $150 million/year (in average over
the next four years, and after nondiscretionary investments)
would allow it to repay such maturities without having to resort
to external sources of funding.

After its divestments, Klabin focused on packaging products and
wood logs as its core businesses. With a much more conservative
financial profile and free cash flow, Klabin is expected to
boost its capital expenditure program. Besides nondiscretionary
investments of some US$70 million per year, the Company is
planning a major expansion project to increase production by
500,000 tons per year in the next five years (reaching a total
installed capacity of two million up to 2009 from the current
1.5 million tons per year), mostly directed to the external
markets. Counting on this additional capacity, the Company
should be able to increase the contribution of exports in total
revenues from the current 30% to 40%. However, the current
rating level takes into consideration that the Company will make
the investment spread out over the next five years. The Company
is committed to carrying on the project only with well-defined
long-term funding, which will include BNDES and suppliers
credit, and as long as financial targets are met. With proper
funding, refinancing risk is expected to remain low and cash
flow protection measures to be sustained at the comfortable
levels Klabin achieved after the 2003 asset divestment program.

Outlook

The stable outlook on the foreign currency rating mirrors that
of the Federative Republic of Brazil. The stable outlook on the
local currency rating reflects Standard & Poor's expectation
that Klabin will continue to present low debt position and
strong operating margins despite uncertainties about the level
of local consumption and a relatively more aggressive capital
expenditure. The ratings could go under downward pressure if the
Company decides to implement its capital program without proper
long-term funding or if it fails to maintain its conservative
financial guidelines, which would translate into ratios of net
debt to EBITDA higher than 1.5x, and EBITDA to interest lower
than 4x. On the other hand, the outlook of the local currency
rating could be changed to positive if the current conservative
financial measures are maintained throughout the implementation
of the expansion project and after further testing of Klabin's
capacity to deal successfully with the volatilities of the
Brazilian market.

Klabin S.A. is the largest Brazilian producer of packaging paper
and boards, with expected total sales volume of some 1.5 million
tons per year of packaging paper and boards, and some 2.5
million tons of eucalyptus and pine logs. Excluding the wood
segment, the Company's product portfolio is comprised of a wide
range of packaging paper and board, corrugated boxes, and sacks.
The Company counts on 19 industrial sites, which provides for
broad industrial geographic coverage and efficient distribution
logistics.

In recent years, Klabin has defined packaging paper and boards
and wood logs as its core businesses and is seeking to establish
itself as a provider of packaging solutions for its clients'
needs. In line with this strategy, Klabin implemented a program
in 2003 to divest its assets in the segments of market pulp,
dissolving pulp, tissue, and newsprint. Upon the conclusion of
this wide asset sale, Klabin raised some US$833 million in cash
that was partially used to reduce about US$400 million in its
indebtedness (total debt of US$832 million in December 2002 and
US$427 million in December 2003).

The Company is controlled by the Klabin family, which holds
59.5% of the Company's ordinary shares. The remaining ordinary
shares are held by Monteiro Aranha (20%) and by the public
(20.5%). Preferred shares are largely held by the public in
Brazil (44%) and abroad (25%), and by BNDESPar (31.7%).

Primary Credit Analyst: Marcelo Costa, Sao Paulo
(55) 11-5501-8955; marcelo_costa@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo
(55) 11-5501-8945; milena_zaniboni@standardandpoors.com


LIGHT SERVICOS: Parent Not Mulling Market Pullout
-------------------------------------------------
The financial woes surrounding Brazilian electric power
distributor Light Servicos de Eletricidade SA will not be reason
enough for its French parent to withdraw from the local market,
according to Light president Jean-Pierre Bel.

In an interview with financial daily Valor Economico, Bel said
that a Company like EdF, which is ready to convert BRL400
million worth of interCompany loans into equity cannot be
envisaging pulling out.

However, Bel acknowledges that the tariff issue is crucial.

Just recently, electricity regulator Aneel granted Light a 6.13%
tariff hike. However, the Company is yet to implement the
increase pending authorization from the finance ministry.
Getting the ministry's approval would prove to be a tough one as
public prosecutors are asking the finance ministry to veto the
increase.

Aneel managing director Jerson Kelman has said Light is entitled
to raise its tariffs and if it was not allowed to do so this
month, then an increase would definitely be allowed in November,
when the next tariff review takes place.

Meanwhile, industry sources reveal that Light has started to
delay payments for the electricity it buys from the
hydroelectric plant Itaipu. This payment delay has not been
denied by Light, Valor noted.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO



TAM/VARIG: CADE Backs Plan to End Code-Sharing Agreement
--------------------------------------------------------
Brazil's two largest airlines, Varig and TAM, have gained the
support of the National Anti-Trust Department (CADE) on its plan
to end a code-sharing agreement they started two years ago.

According to the Justice Ministry's antitrust division, the
agreement between the two airlines will be dissolved within
three months.

Varig and TAM started a code-sharing agreement after they
announced they were considering a merger early in 2003. But the
merger plan collapsed after the nonprofit Rubem Berta
Foundation, which owns 87% of Varig, balked at handing over
control of the airline. Since then, CADE has been pushing for
the companies to end their partnership.

The end of the code-sharing agreement could spell yet more
financial trouble for Varig, which is struggling to pay an
estimated BRL6 billion of debts. But reports have it that
Varig's financial advisor, Unibanco, is drawing up a
restructuring plan for the airline.

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



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J A M A I C A
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KAISER ALUMINUM: US Court Approves Disclosure Statements
--------------------------------------------------------
Kaiser Aluminum announced that, with some clarifying
modifications announced at a hearing Wednesday, the U.S.
Bankruptcy Court for the District of Delaware has approved the
amended disclosure statements for two separate liquidating plans
relating to the subsidiaries through which the Company has
conducted certain alumina operations in Jamaica and Australia.

The Company expects to file amended plans and disclosure
statements containing these modifications within the next few
days. None of the modifications is expected to affect any of the
proposed distributions previously contained in the prior filed
documents.

The first is for the liquidating plan relating to Alpart Jamaica
Inc. (AJI) and Kaiser Jamaica Corporation (KJC), the
subsidiaries through which Kaiser Aluminum & Chemical
Corporation (KACC) owned its interests in Alumina Partners of
Jamaica (Alpart), a partnership that owns and operates a bauxite
mining operation and alumina refinery located in Jamaica. As
previously announced, AJI and KJC sold their interests in Alpart
on July 1, 2004.

The second disclosure statement is for the liquidating plan
relating to Kaiser Alumina Australia Corporation (KAAC) and
Kaiser Finance Corporation (KFC). A wholly owned subsidiary of
KACC, KAAC owns a 20% interest in Queensland Alumina Limited
(QAL), which owns and operates an alumina refinery located in
Australia. KACC and KAAC expect to close on the sale of their
interests in QAL to Rusal around the end of the first quarter or
early in the second quarter of 2005. KFC is a wholly owned
subsidiary of KAAC. Its primary assets are interCompany loans to
KACC and certain of KACC's other subsidiaries.

Approval of these disclosure statements marks the point from
which solicitation and voting on the liquidating plans can
begin. The Court has scheduled a hearing to begin on April 13 to
consider confirmation/approval of the two liquidating plans.

Separately, the Court has approved an extension of the period of
exclusivity through April 30 for AJI, KJC, KAAC, and KFC - and
through June 30 for KACC and the remaining Kaiser entities.

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

CONTACT: Kaiser Aluminum Houston
         Mr. Scott Lamb
         Phone: 713-332-4751



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P U E R T O   R I C O
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DORAL FINANCIAL: Denies Involvement in Regulatory Investigation
---------------------------------------------------------------
Doral Financial Addresses Misplaced Investor Concerns Relating
to Investments in Corporate Bond and Loan Obligations by Another
Local Institution

Mr. Salomon Levis, Chairman of the Board and Chief Executive
Officer of Doral Financial Corporation (NYSE: DRL), said that a
recent announcement by a local institution related to charges
taken by that institution with respect to its investments in
corporate bond obligations ("CBOs") and corporate loan
obligations ("CLOs") had caused confusion among certain
investors. The Chairman stated that Doral has not made any
investment in CBOs and CLOs and that the Company was not the
subject of any regulatory investigation.

The Chairman reiterated that despite an uncertain interest rate
environment the fundamentals of the Company remained healthy
with continued strong demand for new housing loans, strong
production of refinancing loans for debt consolidation purposes,
growth in banking operations and increased fee income,
principally from the insurance agency business.

The Company, a financial holding Company, is the largest
residential mortgage lender in Puerto Rico, and the parent
Company of Doral Bank, Puerto Rico's fastest growing commercial
bank, Doral Securities, a Puerto Rico based investment banking
and institutional brokerage firm, Doral Insurance Agency, Inc.
and Doral Bank FSB, a federal savings bank based in New York
City.

CONTACT: Doral Financial Corp.
         Mr. Mario S. Levis
         Phone: 787-474-6709



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

* URUGUAY: IMF Approves $213.8M Disbursement
--------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed today the seventh review under the SDR 1.99 billion
(US$ 3.04 billion) Stand-By Arrangement for Uruguay. Completion
of this final review makes SDR 139.8 million (about US$ 213.8
million) immediately available to Uruguay. In completing the
review, the Board granted a waiver for the nonobservance of one
performance criterion related to the incorporation of loan
information in the liquidation funds into the credit registry.

The Stand-By Arrangement was approved on March 25, 2002 in an
amount equivalent to SDR 594.1 million (about US$ 908.7 million)
for a 24-month period starting April 1, 2002 (see Press Release
No. 02/14) and was augmented by SDR 1.16 billion (about US$ 1.77
billion) on June 25, 2002 (see News Brief. No. 02/54), and by
SDR 376.0 million (about US$ 575.1 million) on August 8, 2002
(see News Brief. No. 02/87), and reduced by SDR 139.8 million
(about US$ 213.8 million) on August 27, 2004 (see Press Release
No. 04/180). Total disbursements under the Stand-By Arrangement,
including the amount approved today, is SDR 1.99 billion (about
US$ 3.04 billion)

In commenting on the Executive Board decision, Mr. Agustin
Carstens, Deputy Managing Director and Acting Chair, said:

"Supported by the current IMF Stand-By Arrangement, Uruguay's
economic program has successfully steered the economy out of the
2002 financial crisis while boosting economic growth, keeping
inflation well under control, and substantially strengthening
the international reserve position. The favorable results
reflect the implementation of prudent macroeconomic policies,
diversification of trade, and structural reforms, especially in
the banking system, as well as a supportive external
environment. The authorities should be commended for leaving
behind stronger public finances and a reinforced policy platform
for the incoming government to launch its own policy package
aimed at achieving high quality growth and sustainable public
finances for the medium to long term.

"Uruguay's public finances have strengthened considerably.
However, despite significant improvement in the public debt
profile, the debt burden remains high, and further fiscal
tightening will be needed to bring it down to a sustainable
level. Key fiscal reforms for the medium term should include
strengthening the tax system and tax administration, reforming
the specialized pension funds, and improving the budgetary
process.

"Monetary policy has been conducted prudently. The incoming
government's decision to continue with the current policy
framework is appropriate. Uruguay will benefit from taking
advantage of the favorable external situation to bolster its
international reserves further. In addition, steps to strengthen
the autonomy and financial position of the central bank will be
helpful in bolstering its ability to pursue appropriate monetary
policies.

"Banking reforms have progressed well, and the health of the
financial system has improved markedly. Insolvent banks have
been closed, and the liquidation of their assets is moving
forward. Bank supervision and regulation have been strengthened,
and the authorities are working to bring them fully in line with
international standards. The restructuring process will need to
ensure that the banking system can return quickly to its role of
channeling financial resources to support economic growth, and
to reduce the government's exposure to contingent costs from the
restructuring process.

"The incoming authorities have made a welcome commitment to
build on the progress made to date. They face important
challenges that still confront the Uruguayan economy. Going
forward there is clear potential for the recent virtuous cycle
of strong policies, economic growth, and social progress to
continue, if-based on a broad domestic consensus-the new
authorities reinvigorate the process of carrying out pending
structural fiscal reforms, completing ongoing banking reforms,
and creating an environment conducive to increased private
investment and productivity growth. The incoming authorities'
intention to ensure that any increased spending under the social
emergency program is accommodated within the existing overall
budget constraint is welcome. The recent accord among the main
political parties on key policy principles bodes well for
Uruguay's prospects," Mr. Carstens said.

CONTACT: IMF - External Relations Department
         700 19th Street, NW
         Washington, D.C. 20431
         USA

         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278

         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772



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

PDVSA: Energy Commission to Probe Into Recent Firings
-----------------------------------------------------
Venezuela's National Assembly will investigate into the recent
dismissals at state oil Company Petroleos de Venezuela SA
(PDVSA), Dow Jones Newswires reports, citing Pedro Jimenez, the
head of the National Assembly's energy commission.

In a phone interview with Dow Jones, Jimenez, a ruling-party
lawmaker, revealed the commission met Wednesday with some
members of PDVSA who were fired for alleged corruption. At the
meeting, the parties agreed to include alleged acts of
corruption as a topic of debate for next week.

PDVSA President Rafael Ramirez said over the weekend that the
Company had sacked 30 executives in oil-rich Zulia state for
jobs trafficking.

Analysts said Ramirez was responding to President Hugo Chavez
Frias' clamp down on corruption. Ramirez is tackling the age-old
problem of selling job positions by foremen and trade union
officials.



                            ***********


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

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