TCRLA_Public/050302.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

           Wednesday, March 2, 2005, Vol. 6, Issue 43

                            Headlines


A R G E N T I N A

ABEL GONZALEZ S.A.: Gets Court Approval to Reorganize
BOLSALUX S.A.: Reorganization Concludes With Creditor Accord
COMPANIA LACTEA: Gets Authorization to Reorganize
EDEERSA: Auction Fails to Attract Offers; Next Move Unclear
IRSA: Note Conversion Reduces Debt by US$5.2Mln

JEPSA S.A.: Court Approves Creditor's Bankruptcy Motion
JOYERIA RICCIARDI: Court Approves Concurso Motion
L AVENIR CORPORATION: Required Reports Schedule Set
PARMALAT: Revenues Rise 7.5% Y-o-Y in January
SERVI BECOVIAL: Judge Approves Bankruptcy

SOUTHERN WINDS: Loses Major Contract Over Drug Smuggling Claims
VINTAGE PETROLEUM: Results Improve, Posts US249Mln Profit 4Q04
VINTAGE PETROLEUM: Updates Proved Reserves at 437.2MLn BOE
YACYRETA: Governments Sign MOU To Complete Project by 2008
* ARGENTINA: ABRA Accepts Debt Offer


B R A Z I L

BANCO ITAU: Reveals Plans for BRL80Mln Venture with Lasa
* Fitch To Rate 2015 Global Bonds 'BB-'; Outlook Stable


C H I L E

ENDESA CHILE: Argentine Unit Provides Gas For San Isidro Plant


C O L O M B I A

TELECOM: Lands US$59.5mn Debt Deal with Japanese Firm
VALOREM: Pegs 2004 Net Loss At COP70.92B


E L   S A L V A D O R

BANCO AMERICANO: Poor 4Q04 Prompts B/B Ratings From Fitch


M E X I C O

CORPORACION DURANGO: EBITDA Up 16% in 2004
ELAMEX: Profits Up Despite Lower 4Q04 Net Sales
INDUSTRIAS UNIDAS: S&P Rates Bank Loan 'B+'


T R I N I D A D   &   T O B A G O

QUEEN'S HALL: Faces Closure Two Years After $45m Makeover


U R U G U A Y

UTE: 2004 Power Imports Prove Costly


V E N E Z U E L A

PDVSA: Fired Managers Seek Retribution for Dismissals


     - - - - - - - - - -


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

ABEL GONZALEZ S.A.: Gets Court Approval to Reorganize
-----------------------------------------------------
Abel Gonzalez S.A. begins reorganization following a positive
ruling on its petition by Court No. 4 of Buenos Aires’ civil and
commercial tribunal. The opening of the reorganization will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

Ms. Clorinda Paula Donato will oversee the reorganization
proceedings as the court-appointed trustee. She will verify
creditors’ claims until April 6. The validated claims will then
be presented in court as individual reports on May 18.

The trustee is also required by the court to submit a general
report essentially auditing the company’s accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on July 1.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company’s
creditors for approval, is scheduled on October 24.

CONTACT: Ms. Clorinda Paula Donato, Trustee
         Maipu 42
         Buenos Aires


BOLSALUX S.A.: Reorganization Concludes With Creditor Accord
------------------------------------------------------------
The settlement plan proposed by Bolsalux S.A. for its creditors
acquired the number of votes necessary for confirmation. As
such, the plan has been endorsed by the court and will now be
implemented by the company.


COMPANIA LACTEA: Gets Authorization to Reorganize
-------------------------------------------------
Court No. 25 of Buenos Aires’ civil and commercial tribunal
approved a  “Concurso Preventivo” petition filed by Compania
Lactea del Sur S.A. (antes Parmalat Argentina S.A.), reports
local news source La Nacion.

The Company will undergo a reorganization process with
accounting firms Estudio Estevez, Indurain, Vazquez y Asociados
and Estudio Ruiz Tabasco y Asociados as co-trustees.

Estudio Estevez, Indurain, Vazquez y Asociados will verify
creditors’ proofs of claim until July 11. Verifications are done
to ascertain the nature and amount of the Company's debts. The
court has set the Informative assembly on the case on August 15
next year.

The city’s Clerk No. 50 assists the court on the case.

CONTACT: Compania Lactea del Sur S.A.
         (antes Parmalat Argentina S.A.)
         Marcelo T. de Alvear 684
         Buenos Aires

         “Estudio Estevez, Indurain, Vazquez y Asociados”
         Sindico Verificante
         Uruguay 750
         Buenos Aires

         “Estudio Ruiz Tabasco y Asociados”
         Sindico Controlante
         Av. Independencia 1511
         Buenos Aires


EDEERSA: Auction Fails to Attract Offers; Next Move Unclear
-----------------------------------------------------------
The public auction for a 51% share in provincial power
distributor Electricidad de Entre Rios S.A. (Edeersa) last week
failed to attract any offers, reports Business News Americas.

Seven entities - including Argentine investor groups as well as
U.S.-based companies AES Corp. (AES) and PPL Corp. (PPL) - filed
the paperwork needed to participate in Friday's public tender
but none submitted bids.

According to the report, the suitors were apparently dismayed by
two terms in the deal - an obligation to immediately put down a
US$20 million deposit and a requirement to pay off Edeersa's
US$87 million debt within 250 days.

Speculation is circulating that the province, which currently
controls the 51% majority share, may have set the stakes too
high in a deliberate bid to keep Edeersa for itself.

An Edeersa representative said company leaders met Monday to
discuss the next move. Of the remaining 49% of Edeersa, 39%
remains in a trust fund, while another 10% is in employee hands.


IRSA: Note Conversion Reduces Debt by US$5.2Mln
-----------------------------------------------
By letter dated February 25, 2005, the Company reported that a
holder of Company’s Convertible Notes exercised its conversion
right. Hence, the financial indebtedness of the Company shall be
reduced in US$ 5,175,089 and an increase of 9,495,575 ordinary
shares face value pesos 1 (V$N 1) each was made. The conversion
was performed according to terms and conditions established in
the prospectus of issuance at the conversion rate of 1.83486
shares, face value pesos 1 per Convertible Note of face value
US$ 1. As a result of that conversion the amount of shares of
the Company goes from 263,989,773 to 273,485,348. On the other
hand, the amount of registered Convertible Notes is US$
79,651,399.

CONTACT: IRSA Inversiones y Representaciones S.A.
         1066
         Bolivar 108
         Buenos Aires, Argentina
         Phone: 541-342-7555


JEPSA S.A.: Court Approves Creditor's Bankruptcy Motion
-------------------------------------------------------
Court No. 6 of Buenos Aires’ civil and commercial tribunal
declared Jepsa S.A. bankrupt, says La Nacion. The ruling comes
in approval of the bankruptcy petition filed by the Company's
creditor, Mr. Marcos Oberlander, for nonpayment of US$64,457.38
in debt.

Trustee Clara Auerman will examine and authenticate creditors'
claims until May 4. This is done to determine the nature and
amount of the Company's debts. Creditors must have their claims
authenticated by the trustee by the said date in order to
qualify for the payments that will be made after the Company's
assets are liquidated.

The city’s Clerk No. 11 assists the court on the case that will
close with the liquidation of the Company’s assets.

CONTACT: Jepsa S.A.
         Lambare 1063
         Buenos Aires

         Ms. Clara Auerman, Trustee
         Uruguay 872
         Buenos Aires


JOYERIA RICCIARDI: Court Approves Concurso Motion
-------------------------------------------------
Buenos Aires’ civil and commercial Court No. 6 approved a
petition for reorganization filed by Joyeria Ricciardi SACI y A,
according to a report by Argentine daily La Nacion.

Court-appointed trustee Luis Kuklis will verify claims until
April 26.  The report adds that the Company’s informative
assembly will be held on February 10, 2006. This is one of the
last parts of the reorganization process.

Clerk No. 12 assists the court with the proceedings.

CONTACT: Joyeria Ricciardi SACI y A
         Marcelo T. de Alvear 512
         Buenos Aires

         Mr. Luis Kuklis, Trustee
         Lavalle 1619
         Buenos Aires


L AVENIR CORPORATION: Required Reports Schedule Set
--------------------------------------------------
Maria Del Carmen Mula de Canton, the trustee assigned to
supervise the liquidation of L Avenir Corporation S.A., will
submit the validated individual claims for court approval on
April 28. These reports explain the basis for the accepted and
rejected claims. The trustee will also submit a general report
on September 5.

Infobae reports that Court No. 2 of Mendoza’s civil and
commercial tribunal has jurisdiction over this bankruptcy case.

CONTACT: Maria Del Carmen Mula de Canton, Trustee
         Correa Saa 547
         San Jose, Guaymallen
         Mendoza


PARMALAT: Revenues Rise 7.5% Y-o-Y in January
---------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
presents the operating and financial results of the Parmalat
Group at January 31, 2005.

Scope of Consolidation

The scope of consolidation has been defined using principles
that are consistent with those adopted in preparing the
statement of income and balance sheet at December 31, 2004.

Companies that are subject to certain restrictions on their
management as a result of local bankruptcy proceedings that have
effectively placed them outside the control of Parmalat
Finanziaria S.p.A. in Extraordinary Administration, and
companies in voluntary liquidation are no longer consolidated on
a line-by-line basis.

The current scope of consolidation no longer includes companies
in which the Group held equity investments that were sold after
January 1, 2005. The corresponding 2004 data have been restated
accordingly on a pro forma basis. The operations divested in
2005 include the companies that comprised the USA Bakery
Division (Mother’s Cake & Cookies, Archway Cookies and three
production units in Canada), which were sold in January 2005,
and Parmalat Uruguay, which was sold in February 2005.

Core Businesses

The Group’s Core Businesses had revenues of €287.6 million at
January 31, 2005, up 7.5% from the €267.5 million booked in the
same period last year. At €17.6 million, EBITDA were 8.6% higher
than the €16.2 million earned in January 2004. These data do not
reflect the impact of the nonrecurring charges incurred in
connection with the extraordinary administration proceedings,
which amounted to about €5.0 million, in line with January 2004.

An analysis of the Group’s results in the main geographic
regions in which it operates is provided below.

Italy

Revenues totaled €100.7 million in January 2005, or 8.1% less
than the €109.6 million booked in the same month last year. The
shortfall in net revenues was accompanied by a decrease in
EBITDA, which declined both in absolute terms (from €9.4 million
in January 2004 to €8.1 million in January 2005) and as a
percentage of net revenues (from 8.5% to 8.0%). A drop in unit
sales by the Milk Division (fresh milk in particular) and the
Produce Division is the main reason for the decline in net
revenues. In addition, higher promotional and advertising
expenses contributed to the EBITDA deterioration as compared
with January 2004, which, however, should be temporary.

Spain

At €14.1 million, January 2005 revenues were 12.4% less than the
€16.1 million reported in the same month last year. EBITDA
totaled €0.7 million, a slight improvement over the €0.6 million
earned in January 2004. Margins were also up, with EBITDA rising
from 3.7% to 4.8% of revenues. An across-the-board decrease in
unit sales, which reflects unfavorable business conditions in
the domestic market, is among the main reasons for the decrease
in net revenues.

South Africa

In January 2005, revenues rose to €20.2 million, or 13.5% more
than the €17.8 million booked in the same month last year.
However, EBITDA decreased both in absolute terms (from €1.9
million in January 2004 to €1.3 million this year) and as a
percentage of net revenues (from 10.6% to 6.5% of revenues). The
main reasons for the improvement in revenues include the
appreciation of the South African rand versus the euro (average
exchange rate up 10.7% compared with January 2004) and an
increase in total unit sales (shipments of pasteurized milk,
fruit juices and yogurt were up, but deliveries of UHT milk and
cheese were down). The result for January 2005 was adversely
affected by inefficiencies in the distribution network and
higher promotional expenses.

Venezuela

In January 2005, the Venezuelan operations reported revenues of
€12.1 million, a gain of 30.1% compared with the €9.3 million
booked in January 2004. EBITDA also improved, rising both in
absolute terms (from a negative €0.5 million at January 31, 2004
to a positive €0.8 million this year) and on a percentage basis
(from a negative 5.2% of revenues to a positive 6.8% of
revenues). This positive performance was achieved despite the
negative impact of a weak bolivar, which continued to lose value
versus the euro (-24.8% compared with the average exchange rate
for January 2004). The results reported in January, along with
those for the preceding few months, point to the beginning of a
turnaround for the Venezuelan companies, made possible by the
recent implementation of reorganization and refocusing programs.
In the coming months, additional changes in the social policies
pursued by the Venezuelan government will require a further
revision of the business model used by the Group’s local
companies.

Canada

Revenues totaled €101.5 million in January 2005, up sharply from
the €75.0 million reported in the same month last year. The
revenue gain had a positive impact on EBITDA, which rose both in
absolute terms (from €2.8 million in January 2004 to €5.6
million this year) and on a percentage basis (from 3.8% of
revenues to 5.6% of revenues). Higher unit sales and sales
prices for all Canadian products, and an increase in sales days
compared with January 2004 account for this improvement.

Australia

In January 2005, revenues decreased to €29.6 million, or 7.2%
less than the €31.9 million booked in January 2004, but EBITDA
held steady at €1.6 million. The Australian operations were able
to hold total unit sales at about the same level as in January
2004 (lower shipments of yogurt, desserts and tea were offset by
higher sales of pasteurized and UHT milk), but their performance
was adversely affected by a modest depreciation of the
Australian dollar versus the euro (-4.7% compared with the
average rate in January 2004).

Noncore Businesses

In January 2005, the Group’s Noncore Businesses reported
revenues of €36.4 million, a decrease of 20.9% from pro forma
revenues of €46.0 million in January 2004. However, even though
net revenues were down, EBITDA improved from a negative €8.9
million to a negative €2.2 million, due mainly to a sharp
reduction in the losses reported by Parma F.C.

Net Financial Position

At January 31, 2005, the Group’s total indebtedness had
decreased to €11,847.7 million, or €111.4 million less than the
€11,959.0 million it owed at December 31, 2004. The
deconsolidation of divested businesses (Parmalat Uruguay) and a
restatement of debt positions booked to reflect changes in the
verified claims included in the lists of unsecured creditors
account for this improvement.

The combined indebtedness owed to lenders outside the Group by
subsidiaries that are parties to local composition-with-
creditors proceedings and, consequently, have been
deconsolidated is not reflected in the net financial position.
At December 31, 2004, these borrowings totaled €2,484.4 million
(€2,437.3 million at June 30, 2004). Because some of these
borrowings are secured by guarantees provided by Parmalat S.p.A.
and Parmalat Finanziaria S.p.A. in the amount of €1,668.1
million (€1,753.4 million at June 30, 2004), a reserve for risks
of an amount equal to the guaranteed indebtedness (€1,675.2
million) was recognized in the consolidated financial statements
at June 30, 2004. Based on currently available information, it
would seem reasonable to adjust the reserve amount to €1,657.1
million.

The consolidated financial statements also show that
indebtedness owed by the Group to companies in special
proceedings who are not consolidated line by line amounted to €
728.0 million (€ 745.8 million at June 30, 2004). As of today,
no amount has been drawn from the €105.8-million line of credit
provided to Parmalat S.p.A. by a pool of banks on March 4, 2004.

Companies Under Extraordinary Administration

The net indebtedness incurred by companies under extraordinary
administration toward lenders outside the Group prior to their
becoming eligible for extraordinary administration is all short-
term, since all of these companies are in default of the
covenants of the respective loan agreements.

Liquid assets held by the companies included in the Proposal of
Composition with Creditors were relatively unchanged (€230.1
million at January 31, 2005, compared with €235.3 million at
December 31, 2004). The decrease in total indebtedness owed to
lenders outside the Group by other companies under extraordinary
administration is due mainly to an increase in liquid assets
held by Boschi Luigi e Figli S.p.A.

Other Companies

The net indebtedness owed to lenders outside the Group by the
remaining operating and financial companies consolidated line by
line that are not included in the extraordinary administration
proceedings totaled €1,194.1 million (including €685.5 million
in long-term debt) at January 31, 2005, little changed from the
€1,188.6 million owed at December 31, 2004, following the
deconsolidation of the indebtedness of Parmalat Uruguay and the
sale of the equity investment in that company for €22.0 million.
Some Group companies are currently renegotiating their
indebtedness in order to restructure it.

Principal Companies Under Extraordinary Administration

Parmalat Finanziaria S.p.A.

At January 31, 2005, the indebtedness of Parmalat Finanziaria
S.p.A. had declined compared with the previous month thanks to
an increase in liquid assets and a decrease in intra-Group loans
payable, following the repayment of a €2.0-million loan owed to
Parmalat S.p.A.

Parmalat S.p.A.

The decrease in indebtedness at January 31, 2005 compared with
the previous month is due mainly to the January restatement of
debt positions booked to reflect changes in the verified claims
included in the final lists of unsecured creditors approved by
the Court. In January 2005, the amount of intra-Group loans
receivable was adjusted to reflect the repayment of a €2.0-
million loan by Parmalat Finanziaria and the recognition of
write-downs totaling €0.7 million.

Eurolat S.p.A.

The liquid assets held by Eurolat S.p.A. increased in January
2005.

Lactis S.p.A.

The indebtedness of Lactis S.p.A. at January 31, 2005 was
unchanged compared with the previous month.

Significant Events

Significant events that occurred in January and February,
through the date of this press release, are summarized below.

January 13 - Boschi Luigi e Figli S.p.A. is declared insolvent.

January 28 - The Canadian subsidiary Parmalat Dairy & Bakery
sells its USA Bakery Division (Mother’s Cake & Cookies, Archway
Cookies and three production units in Canada). It also signs a
licensing agreement that will allow the disposal of its
remaining inventory. This transaction, which was authorized by
the Italian Ministry of Production Activities, in consultation
with the Oversight Committee, allows full repayment of a loan
that Parmalat S.p.A. in Amministrazione Straordinaria provided
at the beginning of 2004 and will furnish the Canadian
subsidiary with a stream of future revenues.

January 31 - The Italian Antitrust Agency hands down its
decisions in the two investigative proceedings it launched
against Parmalat in matters involving the Group’s status with
respect to Carnini S.p.A. and Newlat S.r.l.

February 1 - The Extraordinary Commissioner files an action to
void pursuant to Article 67 of the Italian Bankruptcy Law
against Morgan Stanley Limited and Morgan Stanley Bank.

February 16 - Lacteria SA sells Parmalat Uruguay.

CONTACT: Parmalat Finanziaria SPA
         Piazza Erculea 9
         Milan, 20122
         Italy
         Phone: 3902-8068-801
         Website: http://www.parmalat.net


SERVI BECOVIAL: Judge Approves Bankruptcy
-----------------------------------------
Servi Becovial S.A. was declared bankrupt after Court No. 26 of
Buenos Aires’ civil and commercial tribunal endorsed a petition
for the company’s liquidation, reports Infobae. However, the
court has not revealed the name of the trustee who will
supervise the liquidation process as trustee.

The city’s Clerk No. 51 assists the court on this case.

CONTACT: Servi Becovial S.A.
         Suipacha 254
         Buenos Aires


SOUTHERN WINDS: Loses Major Contract Over Drug Smuggling Claims
---------------------------------------------------------------
The lucrative contract Argentine airline Southern Winds had with
the government has been terminated after allegations of the
airline's involvement in a major drug trafficking incident
surfaced, reports ethicalcorp.com.

According to Cabinet Chief Alberto Fernandez, the revoked
contract, which entitled Southern Winds to receive public
subsidies worth $27 million a year in exchange for running non-
profitable internal routes, will be put out to private bids.

Southern Winds allegedly facilitated the transport of 60 kilos
of cocaine found in four abandoned suitcases on a Madrid-bound
flight last September. Last week, two executives and an employee
of the airline were arrested in connection with the case. One of
the accused, Walter Beltrame, is the son of the security chief
of Argentina’s main international airport.

The airline blamed the incident on a small group of "unfaithful"
employees, and stressed it would cooperate with investigating
authorities.


VINTAGE PETROLEUM: Results Improve, Posts US249Mln Profit 4Q04
--------------------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Monday a net income
of $249.0 million, or $3.74 per diluted share, in the fourth
quarter of 2004 compared to a net loss of $284.7 million, or
$4.39 per diluted share, in the same quarter last year. Income
from continuing operations for the fourth quarter of 2004 rose
to $45.0 million, or $0.68 per diluted share, from $8.8 million,
or $0.14 per diluted share, in the year-earlier quarter, spurred
by a strong 13 percent increase in production from continuing
operations and significantly higher oil and gas prices.

Included in net income for the fourth quarter of 2004 is income
from discontinued operations of $204.1 million, or $3.06 per
diluted share, primarily as a result of a $198.5 million after-
tax gain related to the sale of all of the company's assets in
Canada. The net loss for the fourth quarter of 2003 included a
loss from discontinued operations of $293.5 million, or $4.53
per diluted share, due to large non-cash charges for the
impairments of the company's Canadian oil and gas properties and
goodwill.

Cash flow excluding discontinued operations, a non-GAAP measure,
was $93.4 million for the fourth quarter of 2004, up 65 percent
from cash flow of $56.7 million in the fourth quarter of 2003.
See the attached table for reconciliations of these non-GAAP
financial measures to the corresponding GAAP amounts of cash
provided by operating activities of $96.1 million for the fourth
quarter of 2004 and $61.7 million for the same period in 2003.

Discontinued Operations

After the disappointing operating results experienced in Canada
during 2003, the company curtailed its 2004 Canadian capital
spending. As a result of an improved commodity price outlook in
2004 and robust acquisition activity levels fueled by the
Canadian income trusts, the company decided to sell all of its
interests in Canada. On November 30, 2004, the company closed
the sale and recorded a $198.5 million after-tax gain. In
accordance with Statement of Financial Accounting Standards
(SFAS) No. 144, the company was required to reclassify the
assets, liabilities and results of its operations in Canada as
discontinued operations for all periods presented. These
reclassifications had no impact on previously reported net
income (loss). Certain financial and operating data related to
these discontinued operations are provided in the tables
attached to this release.

Production Up 13 Percent

Total production from continuing operations (which excludes
Canada) for the quarter of 6.6 million BOE was 13 percent above
the comparable 5.8 million BOE in the fourth quarter of 2003.
This increase was driven by a 31 percent increase in gas
production while oil production was up five percent compared to
the prior-year quarter.

Total net gas production from continuing operations continued to
show strong increases fueled by exploitation successes in the
U.S., where net gas production increased 58 percent from last
year's fourth quarter (and 10 percent from the immediately
preceding quarter) to average 97,375 Mcf per day in 2004's
fourth quarter. Bolivia continued to benefit from Argentina's
increased demand for natural gas with the company's net gas
production in Bolivia rising to an average of 22,641 Mcf per day
in the current quarter compared to an average of 19,141 Mcf per
day in the fourth quarter of 2003.

Argentina oil production, before the impact of changes in
inventories, in the fourth quarter of 2004 averaged 31,396 net
barrels of oil per day (BOPD), an increase of nine percent over
the 28,767 net BOPD produced in the comparable quarter of 2003.
A little over one-half of the increase was contributed by the
company's acquisition of properties in the San Jorge basin
during September 2004, with the remainder reflecting the impact
of the company's drilling and workover programs. Due to weather
delays in December which affected shipping, the company
experienced a 441,000 barrel increase in its Argentine oil
inventories in the fourth quarter of 2004 (an average of 4,795
net BOPD), resulting in average production, net of this
inventory build, of 26,601 net BOPD. This inventory change is
anticipated to be temporary since these volumes are expected to
be sold in the first quarter of 2005.

Oil production in Yemen made its initial contribution in the
second quarter of 2004 and averaged 3,028 net BOPD during the
fourth quarter, before the impact of changes in inventories. The
company expects to produce approximately 3,400 net BOPD during
the first quarter of 2005. As a result of development drilling
during 2004, the total productive capacity in Yemen has now
risen to approximately 6,250 net (12,000 gross) BOPD. Permanent
pipeline and central processing facilities with an initial gross
capacity of 10,000 BOPD are expected to be completed in mid-
2005.

Commodity Prices and Revenues

Including the impact of derivative financial instruments
accounted for as hedges, the company's realized price for oil
from continuing operations increased 36 percent to an average of
$34.18 per barrel in the fourth quarter of 2004, compared with
last year's fourth quarter average price of $25.19 per barrel.
The company's realized price for gas, including the impact of
hedges, increased 70 percent to $4.64 per Mcf compared to $2.73
per Mcf in the fourth quarter of 2003. As a result of the
increases in production and oil and gas prices, oil and gas
revenues increased 60 percent to $210.7 million for the fourth
quarter of 2004 from $132.0 million in the same period of 2003.

Costs and Expenses

Production costs from continuing operations of $5.42 per BOE in
the fourth quarter of 2004 were down four percent from $5.67 per
BOE for the previous year's quarter, as the prior year's quarter
included $2.6 million for costs to repair damage resulting from
fires in California.

Fourth quarter export taxes in Argentina increased from $5.2
million in 2003 to $17.4 million in 2004 primarily as a result
of the increased export tax rates announced in August which
impacted crude oil exports during the fourth quarter of 2004.

Production, transportation and storage costs combined with
production, ad valorem and export taxes (total LOE) increased to
$9.59 per BOE in the fourth quarter of 2004 from $7.77 per BOE
in the year-earlier quarter, with substantially all of the
increase attributable to the increased export taxes in
Argentina.

Exploration costs from continuing operations of $11.0 million
for the fourth quarter of 2004 consisted of $6.5 million of
seismic, geological and geophysical costs, $2.3 million of dry
hole costs, primarily in Yemen, and $2.2 million of leasehold
impairments. This compares to exploration expense for the fourth
quarter of 2003 of $4.2 million, consisting of $2.5 million of
seismic, geological and geophysical costs, $0.2 million of dry
hole costs and $1.5 million of leasehold impairments.

Interest expense declined 19 percent to $12.5 million in the
fourth quarter of 2004 due to an eight percent reduction in
average debt outstanding and a 12 percent reduction in the
average interest rate resulting from a change in the mix of
fixed-rate versus floating-rate debt.

Total Year 2004 Results

Net income for the year ended December 31, 2004, was $332.6
million, or $5.06 per diluted share, compared to a net loss of
$240.9 million, or $3.75 per diluted share, for 2003. Income
from continuing operations before cumulative effect of change in
accounting principle of $125.4 million, or $1.91 per diluted
share, compares to $59.5 million, or $0.92 per diluted share,
for 2003.

Cash flow excluding discontinued operations, a non-GAAP measure,
was $313.2 million for the year ended December 31, 2004, up 46
percent compared to $215.2 million in the prior year, reflecting
the increase in production and oil and gas prices from the year-
ago levels. See the attached table for reconciliations of these
non-GAAP financial measures to the corresponding GAAP amounts of
cash provided by operating activities of $352.3 million for the
year ended December 31, 2004, and $233.8 million in 2003.

Improved Balance Sheet

Net debt (long-term debt less cash and cash equivalents) at
December 31, 2004, is $426 million that is down 36 percent from
year-end 2003, reflecting the application of the proceeds from
the sale of the company's Canadian properties and a portion of
its cash flow from continuing operations. The net debt-to-book
capitalization ratio declined to 38.4 percent, with net debt
representing approximately 1.3 times 2005 targeted cash flow of
$320 million and less than one times 2005 targeted EBITDAX of
$440 million.

Development Seismic Costs Accounting Policy Under Review

In connection with a routine review of the company's 2003 Form
10-K filing, the Securities and Exchange Commission (SEC) is
currently considering the appropriateness of the company's
accounting policy which provides for the capitalization of 3-D
seismic costs incurred in its development activities. The
majority of these costs relate to the company's activities in
Argentina where the company has drilled in excess of 450 wells,
97 percent of which have been productive. The company believes
its accounting policy is consistent with GAAP and industry
practice. Approximately $2.0 million, $1.9 million and $1.7
million of 3-D seismic costs incurred in its development
activities were capitalized in the years ended December 31,
2004, 2003 and 2002, respectively. If the company's development
seismic costs had been expensed as exploration costs, additional
after-tax adjustments (net of the effect of previously recorded
amortization and property sales) of a $0.5 million charge, $3.4
million of income and a $0.2 million charge would have been
recorded to previously reported net income or loss for the years
ended December 31, 2004, 2003 and 2002, respectively. The
cumulative after-tax effect on retained earnings at December 31,
2004, would have been a reduction of approximately $14.8
million, or two percent of stockholders' equity. A total of
approximately $22.0 million (net of accumulated amortization of
$6.4 million) of development seismic costs are included in net
property, plant and equipment on the company's balance sheet at
December 31, 2004. The company is currently pursuing a favorable
resolution of this matter with the SEC. If unsuccessful, the
company may be required to restate prior period financial
statements.

2005 Targets Updated

The company is increasing its production target for 2005 from
the previously announced 25.8 million BOE to 26.4 million BOE.
The increase is a result of the December 2004 acquisition of
producing properties in the Gulf Coast area of Alabama and
additional volumes expected to be sold in the first quarter of
2005 in Argentina as the company reverses the oil inventory
increase experienced during the fourth quarter of 2004 due to
weather related shipping delays. These increases were partially
offset by adjustments for production that is expected to be
temporarily shut-in for much of the first quarter of 2005 due to
heavy rains and mudslides in Ventura County, California. The
company expects to incur approximately $8.5 million to repair
the mudslide damage and, accordingly, has increased its
production cost target for 2005.

The company has assumed average NYMEX prices for 2005 of $40.00
per barrel of oil and $6.50 per MMBtu for natural gas. Due to a
widening of contract differentials in Argentina, the company has
adjusted its expected net realized prices for oil production as
a percent of NYMEX prices during 2005 to be 75% versus the
previous target of 78%. For 2005, the company has hedged,
through price swaps, approximately 5.0 million barrels of oil at
an average NYMEX reference price of $36.17 per barrel and 4.7
Bcf of gas at an average NYMEX reference price of $6.33 per
MMBtu. In addition, the company has gas price collars for
approximately 11.0 Bcf of gas at a NYMEX reference floor price
of $6.00 per MMBtu with various caps up to $9.21 per MMBtu (see
accompanying table - "Commodity Derivative Status").

After considering the impact of the adjustments to expected
production, mudslide repair costs and realized price
assumptions, plus the other assumptions enumerated in the
accompanying table, "Vintage Petroleum, Inc., Revised 2005
Targets" the company is maintaining its target for 2005 cash
flow (as defined in the attached table) of $320 million and its
EBITDAX target of $440 million.

About Vintage Petroleum

Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation, exploration, and development
of oil and gas properties and the marketing of natural gas and
crude oil. Company headquarters are in Tulsa, Oklahoma, and its
common shares are traded on the New York Stock Exchange under
the symbol VPI.

To view financial statements:
http://bankrupt.com/misc/Vintage.htm

CONTACT: Vintage Petroleum, Inc.
         110 W. 7th St.
         Tulsa, OK 74119
         USA
         Phone: 918-592-0101

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


VINTAGE PETROLEUM: Updates Proved Reserves at 437.2MLn BOE
----------------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Monday that
estimates of its proved oil and gas reserves at year-end 2004
totaled 437.2 million BOE. This total reflects the impact of the
disposition in November 2004 of 13.2 million BOE of reserves
resulting from the sale of all of the company’s interests in
Canada. The sale of its Canadian interests was part of a
strategic decision to take advantage of the exceptionally strong
market for producing properties created by the acquisitive
energy income trust sector and to improve the company’s
flexibility to fund future growth. Additionally, the total
reflects 2004 production from continuing operations of 24.5
million BOE.

Excluding Canada, total net additions and revisions to reserves
totaled 29.2 million BOE, replacing 119 percent of production
from continuing operations. Year-end 2004 estimated proved
reserves of 437.2 million BOE were composed of 297 million
barrels of oil and 840 Bcf of natural gas, representing 68
percent and 32 percent of total proved reserves, respectively.
Of the total, 67 percent were classified as proved developed
reserves.

Based on 2004 year-end prices of $43.45 per barrel (NYMEX) for
oil and $6.15 per MMBtu (Henry Hub spot price) for gas and the
company’s year end price differentials, the present value of
estimated future net revenues, before income taxes, discounted
at 10 percent (PV10), attributable to the estimate of total
proved reserves was approximately $3.7 billion at year-end 2004.
This compares to a PV10 of $3.3 billion at year-end 2003
(excluding Canada), calculated using year-end 2003 differentials
and prices of $32.52 per barrel (NYMEX) for oil and $6.19 per
MMBtu (Henry Hub spot price) for gas. The standardized measure
of discounted future net cash flows (Standardized Measure),
which deducts discounted future income taxes from the PV10, was
$2.5 billion and $2.2 billion at year-end 2004 and 2003,
respectively, excluding the Canadian assets that were sold
during 2004.

Reserve Additions Replaced 119 Percent of Production During
2004, the company made total oil and gas capital expenditures in
its continuing operations of $347.6 million. Total reserve
additions of 29.2 million BOE (excluding Canada) replaced 119
percent of production from continuing operations at a cost of
$11.90 per BOE. The average finding cost for the three-year
period ended 2004 is $5.27 per BOE. Non-acquisition spending
contributed to the replacement of 54 percent of the year’s
production at a cost of $17.95 per BOE. A key component of 2004
finding cost was the high 55 percent of the total $237.0 million
non-acquisition capital spending that was devoted mostly to
exploitation activities which primarily targeted converting
proved undeveloped reserves to proved developed producing
status.

In addition, capital was allocated to processing facilities in
Yemen, waterflood projects in Argentina and certain exploration
all of which are expected to contribute to production and
reserves beyond 2004. The company focused on an allocation of
spending designed to revitalize production volumes from
internally generated sources and achieved an increase in
production from continuing operations of five percent in 2004,
exclusive of any volumes added from acquisitions. Approximately
$110.5 million, or 32 percent of total capital spending, was
used to acquire 16 million BOE of proved reserves, predominantly
in two transactions, at a cost of $6.91 per BOE. Vintage
continues to employ, as it has in the past, independent
petroleum engineering firms to prepare estimates of its proved
reserves in all its operating areas. Approximately 97 percent of
its year-end 2004 proved reserves were prepared by such firms.

To view tables:
http://bankrupt.com/misc/Vintage2.pdf

CONTACT: Mr. Robert E. Phaneuf
         Vice President - Corporate Development
         Vintage Petroleum, Inc.
         Tulsa, Oklahoma
         Phone: (918) 592-0101


YACYRETA: Governments Sign MOU To Complete Project by 2008
----------------------------------------------------------
The governments of Argentina and Paraguay signed a memorandum of
understanding (MOU) on Sunday to finish the Yacyreta
hydroelectric by 2008, reports Business News Americas. This is
the final agreement detailing the investment necessary to finish
the project.

The Argentine government has budgeted US$563 million for the
expansion, including US$196 million in 2005, US$170 million in
2006, US$112 million in 2007 and US$4.8 million in 2008.

Construction works will expand as well to rehabilitation of
sewer pumping station, readjustment of the urban belt of
Artigas, Molas Mallorquin and Costanera Avenue in Encarnacion
city and the road access to the town of San Pedro.

The EBY (Entidad Binacional Yacyreta) joint venture, which
administers Yacyreta on the border of Argentina and Paraguay,
has awarded the administration of a trust fund for the project's
completion to Argentine bank BICE.


* ARGENTINA: ABRA Accepts Debt Offer
------------------------------------
The Argentine Bond Restructuring Agency (ABRA) announced Monday
it has decided to accept Argentina's offer to restructure more
than US$100 billion in defaulted debt, reports Dow Jones
Newswires. ABRA, Argentina's biggest single creditor,
effectively added its US$1.2 billion in holdings to the tally of
bonds tendered in the swap.

The move by ABRA, which represents some 30,000 small European
investors, signals that Argentina's debt offer was accepted by
most of the country's private creditors, despite the
unprecedented losses of an estimated 70% that it sought to
impose on bondholders.

Originally, ABRA's board had decided not to tender its bonds at
the end of a special three-week preferential period for small
bondholders last month. However, signs that the accumulated
acceptance rate had risen above 70% as of late Friday proved to
be a key factor in its decision to recommend that the group
tender its bonds, according to ABRA's chief negotiator Adam
Lerrick.

According to ABRA, the high participation level was important
because it meant the official sector and the markets would
consider the debt restructuring issue resolved, therefore
greatly reducing incentives for the government settle with
nonparticipating bondholders.

Mr. Lerrick said the decision ensured its members would obtain
recovery values of about 34 cents on the dollar.

It is now widely expected that when the government announces
final results later this week, the participation rate will come
in at about 75% of the total US$81.8 billion in eligible nominal
claims.

ABRA was a founding member of the Global Committee of Argentine
Bondholders, which at one time claimed to account for about
US$40 billion in defaulted debt holdings.


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

BANCO ITAU: Reveals Plans for BRL80Mln Venture with Lasa
--------------------------------------------------------
Brazil’s Banco Itau intends to sink up to BRL240 million reals
over a six-year period in a consumer finance joint venture with
local retailer Lojas Americanas (Lasa), reports Business News
Americas. Ownership of the company will be split equally between
the two parties with Itau reserving the right to appoint the
chairman as well as taking in management responsibilities for
the new company.

The venture, expected to open in the second half of this year,
will have an initial value of BRL80 million. It will design and
sell financial products and services for Lasa’s customers.

CONTACT: Banco Itau Holding Financiera S.A.
         Praca Alfredo Egydio de Souza Aranha
         100 - Torre Conceicao - 11
         Sao Paulo, 04344-902
         Brazil
         Phone: +55 11 3242 1771

         Website: http://www.itau.com.br
         Officer: Roberto E. Setubal,
                  Pres. & CEO


* Fitch To Rate 2015 Global Bonds 'BB-'; Outlook Stable
-------------------------------------------------------
Fitch Ratings, the international rating agency, assigned a
prospective 'BB-' rating to the upcoming 10-year, U.S. Dollar-
denominated global bonds to be issued by the government of
Brazil. Brazil's sovereign ratings reflect the ongoing strong
international trade performance of South America's largest
economy, its declining public and external debt burdens, and a
demonstrated commitment to sound macroeconomic policies. The
Rating Outlook is Stable.


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

ENDESA CHILE: Argentine Unit Provides Gas For San Isidro Plant
--------------------------------------------------------------
Chilean power generator Empresa Nacional de Electricidad SA
(Endesa Chile) said it is fuelling its 370MW San Isidro
thermoelectric plant with natural gas provided by its Argentine
generation subsidiary Central Costanera, reveals Business News
Americas.

Normally, Spain's Repsol YPF supplies San Isidro 1.8 million
cubic meters a day (Mm3/d) of natural gas but stopped doing so
because Argentina's government ordered it to re-direct gas
produced from the Neuquen basin to the local market. As a
result, the San Isidro plant was shut down for six days from
February 18.

Last week, Endesa reached an agreement with Repsol YPF to divert
1.6Mm3/d of gas from Costanera to San Isidro, while Repsol YPF
will supply Costanera with diesel. A report by local newspaper
Estrategia says that under the agreement, San Isidro covers
Costanera's increased costs from using diesel instead of natural
gas.

In its statement, Endesa said Costanera provides the company
with daily updates on its gas supply availability. San Isidro,
in turn, furnishes Chile's central grid operator CDEC-SIC with
information on its gas supply situation. San Isidro supplies
8,400MWh a day to the SIC central grid system in Chile.

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

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


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

TELECOM: Lands US$59.5mn Debt Deal with Japanese Firm
------------------------------------------------------
State-owned telecommunications company Colombia
Telecomunicaciones (Telecom) has signed an agreement that will
finally pay off US$59.5 million of the debt it owes Japanese
telecoms equipment provider Itochu for its part in fixed line
build-out contracts signed in 1996, reveals Business News
Americas, citing local press reports.

Upon payment of the US$59.5 million, full ownership of the
97,000 lines installed by Itochu would be transferred to
Telecom, which has signed similar agreements with
Canada's Nortel Networks (NYSE: NT), Sweden's Ericsson (Nasdaq:
ERICY) and German telecoms vendor Siemens (NYSE: SI) last year.
It also expects to close remaining agreements with NEC and
Alcatel.

Originally, the contracts with international suppliers were
signed with the understanding that revenues will pay off the
infrastructure, but sales of the lines were below expectations.

Technically, all debts are in the name of an entity known as
Telecom en Liquidacion (Telecom in Liquidation) since Colombia
Telecomunicaciones is strictly a new company operating the
assets of the former Telecom.


VALOREM: Pegs 2004 Net Loss At COP70.92B
----------------------------------------
Colombian conglomerate Valorem has posted a net loss of COP70.92
billion in 2004, an improvement over the COP143.37-billion loss
it suffered in 2003, reveals Dow Jones Newswires. In a press
release Monday, Valorem attributed the improvement to
divestments from non-strategic sectors.

Just recently, Valorem sold to Brazil's Synergy its 50% stake in
troubled airline Avianca. The company’s 22.4% stake in mobile
carrier BellSouth Colombia was also sold to Spain's Telefonica
Moviles SA (TEM) late last year. The group is also planning to
sell Aires, a small airline.

Valorem president Javier Aguirre expressed optimism the company
will return to profitability this year despite the results,
which were adversely affected by the costly pension liabilities
of Avianca and the infusion of more than US$400 million in the
airline over the past few years to support it through a
restructuring process and facilitate its emergence from Chapter
11 bankruptcy proceedings.

Valorem is a holding company controlled by Colombia's richest
man, Julio Mario Santo Domingo. It also has stakes in the local
industrial sector and in foreign companies.


=====================
E L   S A L V A D O R
=====================

BANCO AMERICANO: Poor 4Q04 Prompts B/B Ratings From Fitch
---------------------------------------------------------
Fitch Centroamerica gave El Salvadoran bank Banco Americano
long-term and short-term national scale ratings of B/B, reports
Business News Americas. In a statement, the ratings agency said
it is concerned about the deterioration in Banco Americano's
performance in the fourth quarter of 2004.

Banco Americano, which has a 1% share of banking industry
assets, reported a US$1.8-million loss in 2004 due primarily to
a drop in productive assets, higher provisions for bad loans,
and a high level of operating costs.

Fitch also indicated in its report that it is concerned about
the high degree of concentration of the bank's loan book and
deposit base. Other negative factors weighing on the ratings are
a falling market share, poor efficiency and the deterioration of
its funding base.


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

CORPORACION DURANGO: EBITDA Up 16% in 2004
------------------------------------------
Corporacion Durango, S.A. de C.V., ( BMV: CODUSA)(Durango or the
Company), the largest integrated paper producer in Mexico,
announced its unaudited consolidated results for the fourth
quarter of 2004.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant
Mexican pesos as of the end of each period and converted into
U.S. dollars using the exchange rate at the end of each period.
All comparative figures for the fourth quarter 2004 and 2003
were prepared on a pro-forma basis after excluding the results
of the Pronal and Molded Pulp operations.

HIGHLIGHTS

- Shipments increased 8% in FY04 vs. FY03

- Average prices 4% greater in FY04 vs. FY03

- Increase of Net sales of 12% in FY04 vs. FY03

- Unit production costs growth of 3% in FY04 vs. FY03

- Increase of EBITDA of 16% in FY04 vs. FY03

- Increase of EBIT of 61% in FY04 vs. FY03

- Successful Financial Restructuring Executed

SHIPMENTS

The Company’s total shipments increased to 1,430.6 thousand
short tons in 2004 from 1,326.8 thousand short tons in 2003
mainly due to improve in demand.

Shipments  (000 Short tons)  FY04 FY03 4Q04 4Q03

Paper      620.7  567.9 142.5 147.9
Packaging         672.1  652   174.7 173.7
Wood Products    137.8  106.9  35.6  30.4
Total         1,430.6 1,326  8352.8 352.0

PRICE

During 2004, sales prices increased 4% to US$498 from US$479 in
2003.

Prices (US$/Short Ton) FY04 FY03 4Q04 4Q03

Paper       490 445 537 439
Packaging     551 546 584 516
Wood Products      278 257 306 241
Total      498 479 537 460

NET SALES

Total net sales increased 12% to US$712.6 million in 2004 from
US$636.0 million in 2003 mainly due to a shipments and mix price
increase.

Net Sales (US$ Million) FY04 FY03  4Q04  4Q03

Paper           304.3 252.6  76.5  64.9
Packaging       370.1 356.0 102.1  89.6
Wood Products       38.3  27.4  10.9   7.3
Total        712.6 636.0 189.5 161.8

Net sales from the paper segment increased 10% to US$304.3
million in 2004 from US$252.6 million in 2003, due to the same
9% increase in shipments of  620.7 thousand short tons in 2004
from 567.9 thousand short tons in 2003. The average paper
unitary price increased 10% to US$490 in 2004 from US$445 in
2003.

Net sales from the packaging segment increased 4% to US$370.1
million in 2004 from US$356.0 million in 2003. Such increase was
due to a 3% grown in shipments to 672.1 thousand short tons in
2004 from 652.0 thousand short tons in 2003. The packaging
average unitary price increased 1% to US$551 in 2004 from US$546
in 2003.

COST OF SALES

The unitary cost of sales increased 3% to US$428 in 2004 from
US$415 in 2003. Cost of sales increased 11% to US$611.8 million
in 2003 from US$551.0 million in 2003. This increase was
primarily due to a energy and raw materials increase.

Unit Cost  (US$/ Short Ton) FY04 FY03 4Q04 4Q03

Total          428 415  451 403

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses increased 1% to
US$61.6 million in 2004 from US$60.7 million in 2003.

EBITDA

EBITDA increased 16% to US$83.7 million in 2004 from US$72.0 in
2003. The most significant impact on this figure came from 8%
increase in shipments during the period. EBITDA as a percentage
of net sales was 12% in 2004 compared to 11% in 2003.

EBITDA - According with the Restructured Credit Agreement the
Consolidated EBITDA means, for any period, the sum of the
following for the Company and its Subsidiaries:

a) operating income for such period;
b) to the extent deducted in determining such operating income
for such period, the sum of the following: i) depreciation, ii)
amortization, iii) any other non-cash charges other than any
such non-cash charges that represent accruals of, or reserves
for, cash disbursements to be made in any future accounting
period, iv) the aggregate amount of all cash severance payments
actually made in cash, v) taxes paid of payable, and vi) non-
cash charges incurred in connection with pension plans; and c)
the aggregate amount of interest income accrued during such
period.

FINANCING COST

Financing cost was an expense of US$84.5 million in 2004
compared to an expense of US$147.9 in 2003. This expense can be
broken down as follows:

(1) Interest expense increased 27% to US$137.0 million in 2004
from US$107.9 million in 2003 due to right off of past debt
issues deferred assets that as off today not longer exist.

(2) Interest income decreased 29% to US$2.7 million in 2004 from
US$3.8 million in 2003, due to a lower interest rate.

(3) Foreign exchange results were reported as a gain of US$6.8
million in 2004 as compared to a loss of US$78.5 million in
2003. This foreign exchange difference resulted from a higher
appreciation of the Peso (to 11.15 from 11.24) in 2004, when
compared to a depreciation of the Peso (to 11.24 from 10.44) in
2003.

(4) Gain from monetary position increased by 24% to US$43.0
million in 2004 from US$34.7 million in 2005. This decrease
reflected a lower inflation rate.

PROVISIONS FOR EMPLOYEE PROFIT SHARING AND INCOME AND ASSET
TAXES NET OF TAX LOSS CARRY FORWARDS

Provisions for employee profit sharing and income and asset
taxes, net of tax loss carry forwards, increased to a gain of
US$29.2  million in 2004 from a loss of US$2.6 million in 2003
mainly do to deferred tax benefit.

NET INCOME

Net income was a loss of US$12.1 million in 2004 compared with a
net loss of US$272.6 million in 2003.

FINANCIAL RESTRUCTURING EXECUTED

Under the financial restructuring, the Company’s unsecured
creditors received new debt equal to 85% of the outstanding
principal amount of the Company’s unsecured debt.

The Company’s unsecured bank creditors amended and restated
their existing loans as Series A Loans in an aggregate principal
amount of approximately $116.1 million. The holders of the
Company’s other unsecured indebtedness, including the Company’s
12 5/8% Senior Notes due 2003, 13 1/8% Senior Notes due 2006, 13
1/2% Senior Notes due 2008 and 13 3/4% Senior Notes due 2009,
received Series B Notes issued in an aggregate principal amount
of approximately $433.8 million in exchange for their debt. In
addition, all such creditors received an aggregate of 17% of the
Company’s capital stock on a fully diluted basis.

The Series A Loans will bear interest at LIBOR plus 2.75% per
annum, payable quarterly, and will mature on December 3 1, 2012.
Principal under the Series A Loans will be amortized based on
the following schedule: 5.0% in 2005; 12.0% in 2006; 12.0% in
2007; 12.0% in 2008; 12.0% in 2009; 13.0% in 2010; 20.0% in 2011
and 14.0% in 2012. The Series A Loans may be prepaid at the
option of the Company at any time on or after December 31, 2005,
without premium or penalty.

The Series B Notes will bear interest at the rate of 7.50% per
annum until December 31, 2005, 8.50% per annum from January 1,
2006 through December 31, 2006, and 9.50% per annum thereafter
until maturity on December 31, 2012. Interest on the Series B
Notes will be payable quarterly. The Series B Notes will be
callable at the option of the Company on or after December 31,
2005, at a declining premium of 4% of face value.

The Series A Loans and Series B Notes are guaranteed by certain
of the Company’s subsidiaries, and be secured ratably by the
real estate and other fixed assets of the Company and certain of
the Company’s Mexican subsidiaries and the common shares of two
of the Company’s subsidiaries.


PROFORMA DEBT MATURITY PROFILE

As of December 31, 2004 in a proforma basis debt was US$650.0
million after the financial restructuring, including US$100.1 of
subsidiaries debt. Of the total Company’s indebtedness, 67% is
subject to a fixed interest rate and the remaining 33% is
subject to a variable interest rate. As of today, the debt-
weighted average cost is 6.9%.

CEO’s STATEMENT

Miguel Rincon Corporacion Durango’s Chairman and Chief Executive
Officer statement: As a result of our operational restructuring,
our production and shipments grew 8% in 2004, our net sales are
12% greater than the year before, our unit cost only grew 3%,
our EBITDA increased 16% and our EBIT grew 61% compared with the
previous year, which reflect our efforts in productivity,
discipline, and cost control. Our results will continue to
improve gradually in 2005 and 2006.

Looking to the future, over the next years the Company will be
primarily focused on maximizing operational performance and on
continuing to strengthen its financial structure. 2004 will be
remembered as the year in which Corporacion Durango, with the
support of its creditors, built new, and more solid,
fundamentals to become a more competitive Company in its
operations, in its financial structure, and in its strategic
vision, which we consider will allow us to continue writing new
pages of success in order to increase the value of the Company,
Rincon concluded.

To view financial statements:
http://bankrupt.com/misc/Durango.htm

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

          Mr. Miguel Antonio R.
          Phone: +52 (618) 829 1070
          E-mail: rinconma@corpdgo.com.mx

          The Global Consulting Group
          Mr. Kevin Kirkeby
          Phone:(646) 284-9416
          E-mail: kkirkeby@hfgcg.com


ELAMEX: Profits Up Despite Lower 4Q04 Net Sales
-----------------------------------------------
Elamex, S.A. de C.V. (NasdaqNM: ELAM), a diversified
manufacturing services company with food, plastics and metals
operations and real estate holdings in Mexico and the United
States, announced Monday financial results for the fourth
quarter and year ended December 31, 2004.

Fourth-Quarter Results

Fourth quarter 2004 operations are comprised of the Food
Products segment (Franklin Connections) and Shelter Services. As
explained below, the results of operations for Precision Tool,
Die and Machine Company ("Precision") are reflected in the
Elamex consolidated statement of operations through December 19,
2003, but are excluded from consolidation in subsequent periods.

The Company also has a 50.1% investment in Qualcore S. de R.L.
de C.V. ("Qualcore"), an unconsolidated joint venture that
manufactures plastics and metal parts. The equity method of
accounting is used to recognize the results of operations for
Qualcore. The company is actively working to sell its interests
in both Precision and Qualcore.

Fourth quarter consolidated net sales totaled $29.4 million
compared with $38.0 million for the fourth quarter of 2003. The
Food Products segment represented $28.8 million, or 98.1%, of
fourth quarter 2004 consolidated net sales, compared with $21.3
million, or 56.0% of consolidated net sales for the fourth
quarter of 2003. Because the operations of Precision are
excluded from consolidation in 2004, year-over-year comparison
of quarters shows a large decrease in net sales. In the fourth
quarter of 2003, Precision recorded $16.1 million of net sales,
which was 42.3% of consolidated net sales. Shelter Services
generated $3.8 million in fourth quarter 2004 net sales,
compared with $3.7 million in fourth quarter 2003. Inter-segment
sales between Food Products and Shelter Services are eliminated
in consolidation. The eliminations totaled $3.3 million for the
fourth quarter of 2004 and $3.1 million in the fourth quarter of
2003.

Gross profit was $6.3 million, or 21.6% of sales, for the fourth
quarter of 2004, compared with gross profit of $5.5 million or
14.6% of net sales for the fourth quarter of 2003. Precision
reported a loss of $433 thousand at the gross profit level for
the thirteen-week period ended December 31, 2003. Total
operating expenses for the fourth quarter of 2004 were $7.6
million compared with $25.2 million for the fourth quarter of
2003.

The Company has a 50.1% investment in Qualcore and is a
guarantor on portions of a bank loan made by that entity. As of
December 31, 2004, Qualcore is in default under the loan
agreement. The Company recorded a liability of $1.7 million in
December 2004 in recognition of the probability that it will be
obligated to perform under that guaranty. The accrual is
classified as an operating expense on the statement of
operations.

Adjustment to Previously Issued Third-Quarter Results

On September 16, 2004, the Company executed an agreement with a
related party to release the Company from a commitment to
purchase the candy manufacturing plant in Ciudad Juarez, Mexico.
The commitment to purchase the plant, executed on November 22,
2000, required the Company to purchase the property at the end
of the lease in November 2010. In prior periods the Company had
accounted for this lease as a capitalized lease. As of September
16, 2004, the value of the property was $10,413,000 and the
value of the lease obligation liability was $11,539,000.

Accounting principles dictate that the termination of the
purchase commitment is accounted for similar to a sale-leaseback
transaction and that on a go-forward basis the lease be treated
as an operating lease. As a consequence of this change, the
assets and liabilities related to the lease are removed from the
balance sheet and a gain is recorded for the difference. The
Company will realize a gain of approximately $1.1 million as a
result of this early termination. However, because the Company
continues to utilize the property, the gain will be deferred and
will be amortized into earnings over the remaining six-year term
of the lease. The termination of the capital lease was not
reflected in the financial statements for the quarter ended
September 30, 2004 previously filed on Form 10-Q. To correct for
this, the Company will file an amended quarterly report to the
Securities and Exchange Commission on Form 10-Q/A. The effect on
previously reported earnings is a decrease in net loss of
approximately $15 thousand.

Full Year 2004 Results

Operations for the year ended December 31, 2004 are comprised of
the Food Products segment (Franklin Connections) and Shelter
Services. As explained above, the results of operations for
Precision Tool, Die and Machine Company ("Precision") are
excluded from consolidation. The equity method of accounting is
used to recognize the results of operations for Qualcore. The
company is actively working to sell its interests in both
Precision and Qualcore.

Consolidated net sales for the year ended December 31, 2004
totaled $97.6 million compared with $157.3 million for the prior
year. Because the operations of Precision are excluded from
consolidation in 2004, year-over-year comparison shows a large
decrease in net sales. In the year ended December 31, 2004,
Precision recorded $71.0 million of net sales, which was 45.1%
of consolidated net sales. The Food Products segment represented
$95.3 million, or 97.7% of consolidated net sales for year ended
December 31, 2004, compared with $75.6 million, or 48.1% of
consolidated net sales for the prior year. Shelter Services
generated net sales of $15.2 million for the year ended December
31, 2004, compared with $25.7 million for the prior year, a
year-over-year decrease of 40.7%, due primarily to the sale of
certain Shelter contracts during second quarter of 2003. Inter-
segment sales between Food Products and Shelter Services are
eliminated in consolidation. The eliminations totaled $13.0
million for the year ended December 31, 2004 and $15.1 million
in the prior year.

Gross profit was $23.0 million, or 23.6% of net sales, for the
year ended December 31, 2004, compared with gross profit of
$17.9 million or 11.4% of net sales for the prior year.
Precision reported a loss of $1.0 million at the gross profit
level for the prior year. Total operating expenses for the year
ended December 31, 2004 were $23.1 million, compared with $46.6
million for the prior year.

Financial Reporting for Precision Tool, Die and Machine Company

In December 2003, Elamex announced that its board of directors
had authorized the sale of Precision, the company's Metal
Stamping segment, which filed for Chapter 11 protection on
December 19, 2003. Neither Elamex nor any of its subsidiaries or
affiliates have guaranteed any of the obligations of Precision.

As a consequence of seeking protection under bankruptcy laws,
and in view of the specific pattern of facts in this situation,
accounting rules require that Precision results of operations
are included in the consolidated results of operations for
Elamex and subsidiaries only through December 19, 2003.
Thereafter, earnings or losses of Precision are recognized in
accordance with the equity method of accounting, as defined by
generally accepted accounting principles. Accordingly, no
Precision revenues or expenses occurring subsequent to December
19, 2003, are reflected in the Elamex consolidated statement of
operations. Management expects that no future losses will be
recognized in connection with Precision because the parent
company's investment in this subsidiary has been reduced to
zero.

The equity method also defines the balance sheet presentation of
Precision. As of December 31, 2003, and December 31, 2004, the
net amount of Elamex's investment in Precision is zero,
excluding Precision entirely from the consolidated balance
sheets as of those dates.

Financial Condition

At December 31, 2004, the Company had cash and cash equivalents
totaling $2.1 million and total assets of $54.7 million. Long-
term debt and capital leases, excluding current portion, totaled
$3.6 million at December 31, 2004, and stockholders' equity
totaled $26.6 million.

About Elamex

Elamex is a Mexican company with manufacturing operations and
real estate holdings in Mexico and the United States. The
Company is involved in the production of food items related to
its candy manufacturing and nut packaging operations, and metal
and plastic parts for the appliance and automotive industries.
Elamex's competitive advantage results from its demonstrated
capability to leverage low cost, highly productive labor,
strategic North American locations, recognized quality and
proven ability to combine high technology with labor-intensive
manufacturing processes in world-class facilities. As a value
added provider, Elamex's key business objectives include
superior customer satisfaction, long-term supplier relationships
and employee growth and development, with the ultimate goal of
continuously building shareholder value.

To view financial statements:
http://bankrupt.com/misc/ELAMEX.htm

CONTACT: Mr. Sam L. Henry
         Elamex, S.A. de C.V.
         Avenida Insurgentes No. 4145-B Ote.
         Cuidad Juarez, Chihuahua 32340
         Mexico
         Phone: (915) 298-3064


INDUSTRIAS UNIDAS: S&P Rates Bank Loan 'B+'
-------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
rating to Industrias Unidas S.A. de C.V.'s (IUSA) proposed
US$300 million Senior Secured Credit Facility due April 2010. At
the same time, Standard & Poor's affirmed the 'B+' long-term
corporate credit ratings assigned to Industrias Unidas S.A. de
C.V.'s (IUSA). The issuer's national scale 'mxBBB' long-term
corporate credit rating was also affirmed. The outlook for all
ratings is negative.

"Proceeds from the bank loan will be used to repay existing $290
million outstanding debts and fees and expenses, which would
strengthen the company's liquidity, particularly refinancing
risk," said Standard & Poor's credit analyst Jose Coballasi.
"Should the deal be successfully syndicated, the outlook
assigned to IUSA would be revised to positive from negative,
reflecting improved liquidity and the company's very favorable
operating and financial performance during 2004. Should the deal
fail, IUSA's corporate credit rating would be lowered by one
notch, reflecting continued concerns regarding refinancing
risk."

The ratings assigned to IUSA reflect the inherent cyclicality of
the construction industry, the company's high leverage,
competitive pressure on core products and markets, historical
tight liquidity, and low although improving operational margins.
These factors are partially offset by the company's leading
market positions in Mexico and the U.S., product mix, and some
geographic diversification in the manufacturing and distribution
of copper tubing, copper-alloy products, valves, controls, watt-
hour meters, wire and cable, and electrical devices.

IUSA is one of Mexico's largest diversified industrial
companies, offering a large variety of products through
integrated manufacturing and distribution operations located
principally in Mexico and the U.S. The company's operations are
conducted by seven principal business groups: copper tubing,
wire and cable, copper alloys, electrical products, watt-hour
meters, valves and controls, and diversified assets group.

The negative outlook reflects Standard & Poor's concerns
regarding IUSA's liquidity, particularly refinancing risk.
Nevertheless, upon successful syndication of the proposed
transaction, Standard & Poor's would revise IUSA's outlook to
positive reflecting the improvement in liquidity, and a
potential one-notch upgrade could be possible if IUSA's 2004
financial performance is sustained. Nevertheless, failure to
complete the proposed transactions will lead to a one-notch
downgrade that would reflect the continued weakness in the
company's liquidity, in particular refinancing risk and also the
issuer's ability to access the capital markets.


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

QUEEN'S HALL: Faces Closure Two Years After $45m Makeover
---------------------------------------------------------
Trinidad & Tobago's premiere performance venue, Queen's Hall, is
once again facing closure only two years after renovations that
cost $45 million, reports The Trinidad Express. Ironically, the
problems besetting Queen's Hall are believed to have been caused
by the makeover itself. Among the complaints are atrocious
seating accommodations, leaks, loose tiles, and washroom and
parking problems.

Reportedly, after the refurbishment, several aspects of the
project are in no better condition than that of a work in
progress. Administrative offices are still to be constructed,
forcing staff to continue using the Hall's lounge to conduct
business.

Queen's Hall was originally constructed in 1959 through the
efforts of the music community and government funding. The Hall
meets two-thirds of its annual expenses from a government
subvention, raising the residual by rental of the facility and
equipment.


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

UTE: 2004 Power Imports Prove Costly
------------------------------------
The energy crisis that hit Uruguay last year cost the country
US$147 million for power imports in 2004, reveals Business News
Americas, citing a report by local newspaper El Pais.

Lower hydro generation caused by low reservoir levels at state
power company UTE's Salto Grande plant forced the company to
spend US$58.5 million in power imports from Argentina,
US$10million in imports from Brazil and US$78.7mn in diesel and
fuel-oil imports for its Batlle and La Tablada thermoelectric
plants.

Last year's imports were higher than in 2003, when UTE only
spent US$13 million on power imports from Argentina and US$2.5
million on fuel imports.

Demand grew 6% in 2004, mainly due to industrial growth and
street lighting. Residential demand growth was only 0.88%.
Energy losses due to theft remained high at 13%, while its
investments reached US$55 million.

The company reported a US$70mn profit in 2004 on revenues of
US$497 million. Net equity was US$2.16 billion at year-end.


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

PDVSA: Fired Managers Seek Retribution for Dismissals
-----------------------------------------------------
A group of managers fired by energy and oil minister Rafael
Ramirez from Venezuela's state oil firm PDVSA for alleged
"corruption" are asking the prosecutor general's office to
investigate their dismissal, reports Business News Americas.

Ramirez, who is also president of PDVSA, announced last week
that the PDVSA managers, most of whom were based in Zulia state
where 60% of the country's oil is produced, were fired for
"corruption" and "selling" jobs.

But the former managers claimed they received letters that cited
"organizational reasons," not corruption or even mismanagement
as the reason for their dismissal.

Former manager Gerson Alizo is the spokesperson for the group of
about 30 managers fired in mid-February.

Ramirez has welcomed two congressional probes into the
dismissals, the hearings for the first of which were scheduled
to start February 28.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campiña, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         http://www.pdvsa.com.ve


                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

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

This material is copyrighted and any commercial use, resale or
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