TCRLA_Public/050304.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, March 4, 2005, Vol. 6, Issue 45

                            Headlines


A R G E N T I N A

ACINDAR: In Search of Strategic Partner
BANCO HIPOTECARIO: Creditor Files APE Annulment Request
CABLEVISION: Moody's Withdraws Ratings
CLINICA BALCARCE S.A.: Court Opens Reorganization
CONSORCIO OLIVARERO: Court Designates Trustee for Bankruptcy

DUQUE CUYO: Seeks to Wind-Up Operations
DUQUE SEGURIDAD S.A.: Asks to Enter Bankruptcy
DUQUE SUR: Files Voluntary Liquidation Plea
EL MATRERO S.C.A.: Informative Assembly Moved
INDUSTRIAS DEL SALADO: Begins Liquidation Process

JIF S.A.: Court Schedules Informative Assembly
PARMALAT: Reveals New Debt Swap Ratios
PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize
WALK S.A.: Liquidation Planned to Pay Debts


B A R B A D O S

SAM LORD'S CASTLE: Given Sale Deadline


B E R M U D A

FOSTER WHEELER: Updates Capital Share Information
SAN GIORGIO LTD.: Resolves to Wind-Up Operations
UNB SELECT LIMITED: Names Beverly Mathias as Trustee
UNB SELECT TRADING: To Hold Final Meeting March 28
UTAR (HOLDINGS) LIMITED: Court Releases Liquidator

VK AVIATION: Dietmar Seidler to Serve as Liquidator


B R A Z I L

BANCO SANTOS: Owner's House Raided by Federal Police
CESP: BNDES to Become Major Shareholder
CFLCL: Postpones Power Plants' Sale
CSN: Ratings Not Affected By Private Shareholder Agreement
LIGHT SERVICOS: Finance Ministry Blocks Power Rates Hike

TELEMAR: S&P Affirms Rating


C H I L E

AES GENER: Strong Peso Pulls EBITDA 9.6% in 2004


C O L O M B I A

BAVARIA: Slips Into Debt With US$31Mln Net Loss in 2004


D O M I N I C A N   R E P U B L I C

BANCO POPULAR: Moody's Withdraws Ratings


M E X I C O

AXTEL: Revenue Jumps 25% Year-on-Year in 2004
GRUPO IUSACELL: Denies Knowledge of Stock Movement Cause


P E R U

SIMSA: Returns to Black in 2004


V E N E Z U E L A

CADAFE: Facing Workers' Strike
PDVSA: Venezuela, Uruguay Sign Energy Cooperation Agreement
PDVSA: Citgo Profitable For PDVSA, Says Ex-chief

     -  -  -  -  -  -  -  -

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

ACINDAR: In Search of Strategic Partner
---------------------------------------
Contradicting press reports, Argentine steelmaker Acindar said
Grupo Techint does not intend to acquire its seamless steel
tubing division.

According to a Business News Americas report, however, an
Acindar official acknowledges the Company's search for a
possible strategic partner, either for the whole Company or any
of its particular business units.

"So this is an issue that is being analyzed, dealt with, and
discussed internally for many years, and no progress has been
achieved yet," the official said.

Acindar, Argentina's largest long-steel manufacturer, became
part of Brazilian mining-metals company Belgo-Mineira in May
2004.


BANCO HIPOTECARIO: Creditor Files APE Annulment Request
-------------------------------------------------------
A creditor of Argentine leading mortgage bank Banco Hipotecario
has requested the annulment of the bank's out-of-court debt
settlement (APE), which has been submitted for court approval.
The file was made by hotel businessman Pablo Perelmunter and
would have had to do with the news of Banco Hipotecario's
purchase of BNL's local retail banking unit.

CONTACT: Banco Hipotecario S.A.
         151 Reconquista
         Buenos Aires
         Argentina
         Phone: +54 11 4347 5546

         Web site: http://www.hipotecario.com.ar


CABLEVISION: Moody's Withdraws Ratings
--------------------------------------
Moody's Investors Service has withdrawn the Ca Global Local
Currency Senior Implied Rating, Senior Unsecured Rating, Issuer
Rating and Global MTN Program, as well as the Not Prime (NP)
Global Local Currency Short Term Rating of CableVision S.A.
Moody's has withdrawn these ratings because the Company is
restructuring its balance sheet and because of business reasons.
Please refer to Moody's Withdrawal Policy on moodys.com.

Cablevision S.A. is the largest cable company in Argentina based
on the number of subscribers served, which, as of June 30, 2003,
was approximately 1.19 million.

CONTACT: New York
         Ms. Chee Mee Hu
         Senior Vice President
         Corporate Finance Group
         Moody's Investors Service
         Journalists: 212-553-0376
         Subscribers: 212-553-1653

         Sao Paulo
         Mr. Richard Sippli
         Vice President - Senior Analyst
         Corporate Finance Group
         Moody's America Latina Ltda.
         Phone: 55-11-3443-7444


CLINICA BALCARCE S.A.: Court Opens Reorganization
-------------------------------------------------
Clinica Balcarce S.A., a Company operating in Mar del Plata,
begins reorganization proceedings after Dr. Salgado Creo,
serving for Court No. 13 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 proposal for its creditors so as to avoid a
straight liquidation.

According to the Argentine government's official bulletin, the
reorganization will be conducted under the direction of CPN
Rojo, Blanco Martinez, the court-appointed trustee.

Creditors with claims against the Company must present proofs of
such debts to the trustee by May 2. These claims will constitute
the individual reports to be submitted in court on June 14. The
court also requires the trustee to present an audit of the
Company's accounting and business records through a general
report due on August 18.

Also, an informative assembly to be attended by all verified
creditors is scheduled on February 16 next year.

Mr. Raul Eduardo Garros, the city's judicial clerk, assists the
court on this case.

CONTACT: Clinica Balcarce S.A.
         Calle 16 No 624 de Balcarce
         Mar del Plata

         CPN Rojo, Blanco Martinez, Trustee
         Luro 3894
         Mar del Plata


CONSORCIO OLIVARERO: Court Designates Trustee for Bankruptcy
------------------------------------------------------------
Buenos Aires accountant Norberto Jorge Volpe was assigned
trustee for the bankruptcy of local Company Consorcio Olivarero
Argentino S.A. relates Infobae.

Mr. Volpe will verify creditors' claims until May 10, the source
adds. After that, the trustee will prepare the individual
reports that are to be submitted in court on June 23. The
general report submission should follow on August 19.

The city's civil and commercial Court No. 24 holds jurisdiction
over the Company's case.

CONTACT: Mr. Norberto Jorge Volpe, Trustee
         Maipu 859
         Buenos Aires


DUQUE CUYO: Seeks to Wind-Up Operations
---------------------------------------
Duque Cuyo S.A., an investigation and security firm, has filed
for voluntary liquidation, says local news source La Nacion. The
petition, once approved by the court, will allow the Company to
sell its assets and use the proceeds to repay its debts.

The case is pending before Court No. 5 of Buenos Aires' civil
and commercial tribunal. Clerk No. 9 assists the court in
resolving this case.

CONTACT: Duque Cuyo S.A.
         Avda Velez Sarsfield 175
         Buenos Aires


DUQUE SEGURIDAD S.A.: Asks to Enter Bankruptcy
----------------------------------------------
Local security company Duque Seguridad S.A. intends to wrap-up
its operation through a voluntary "Quiebra Decretada"
proceeding.

La Nacion reports that the Company has filed its petition under
Court No. 8 of Buenos Aires' civil and commercial tribunal. The
court will study the Company's request and decide if the Company
is to go into liquidation.

The city's Clerk No. 16 assists the court on this case.

CONTACT: Duque Seguridad S.A.
         Av. Velez Sarsfield 175
         Buenos Aires


DUQUE SUR: Files Voluntary Liquidation Plea
-------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the liquidation petition filed
by Duque Sur S.A.

The petition, if granted by the court, will allow the Company to
undergo the "Quiebra Decretada" process that will close with the
sale of the Company's assets. Proceeds from the sales will be
used to repay its creditors.

Clerk No. 9 assists the court on this case.

CONTACT: Duque Sur S.A.
         Av. Velez Sarsfield 175
         Buenos Aires


EL MATRERO S.C.A.: Informative Assembly Moved
---------------------------------------------
Ms. Sandra G. Perez, the judicial clerk assisting in the
reorganization of El Matrero S.C.A., informs that the Company's
informative assembly has been moved to March 11.

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


INDUSTRIAS DEL SALADO: Begins Liquidation Process
-------------------------------------------------
Industrias del Salado S.A. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court No. 25 of
Buenos Aires' civil and commercial tribunal. The declaration
effectively prohibits the Company from administering its assets,
control of which will be transferred to a court-appointed
trustee.

Infobae reports that the court appointed Mr. Horacio Fernando
Crespo as trustee. Mr. Crespo will be reviewing creditors'
proofs of claims until March 31. The verified claims will be the
basis for the individual reports to be presented for court
approval on May 12. Afterwards, the trustee will also submit a
general report on June 27.

Clerk No. 50 assists the court on this case that will end with
the disposal of the Company's assets to repay its liabilities.

CONTACT: Mr. Horacio Fernando Crespo, Trustee
         Maipu 464
         Buenos Aires


JIF S.A.: Court Schedules Informative Assembly
----------------------------------------------
Court No. 10 of Buenos Aires civil and commercial tribunal has
set the informative assembly for the Jif S.A. reorganization
case on December 22, reports Infobae.

During the assembly, verified creditors will vote to ratify the
Company's completed settlement plan.

Mr. Miguel Adolfo Kupchik serves as trustee on this case while
the city's Clerk No. 20 assists the court with the proceedings.

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


PARMALAT: Reveals New Debt Swap Ratios
--------------------------------------
Parmalat moves to substantially water-down almost US$15.86
billion in debt with the approval of a debt-for-equity swap that
promises a return for creditors of only a fraction of their
original investment.

Reuters reports that the Company has revised the recovery ratios
for its different subsidiaries in order to recognize almost EUR4
billion in previously contested claims. Parmalat's
administrators also endorsed a EUR2 billion capital increase to
facilitate the coming debt swap.

Among the Companies that were given new swap figures are:

- Parmalat Finanziaria SpA (Holding Company), whose creditors
will recover 5.7 percent of their investment;

- Parmalat SpA (Operating Company), whose creditors will be
given shares equal to 6.9 percent of their original investment;

- Parmalat Finance Corpor. BV, whose creditors will recover 5
percent of their investment. The new shares will also comprise
15.4 percent ownership in the new Parmalat; and

- Parmalat Capital Netherland that will have a recovery rate of
5.3 percent of the original debt.

US retail bondholders, on the other hand, will be given cash
from shares sold for them on the Milan stock exchange in lieu of
actual share holdings in the new Company.

With the new payment scheme in place, the bankrupt dairy giant
comes closer to its return on the stock exchange. Along the way,
its administrators have worked to cut debt and divest non-core
business in the hope of turning a profit.


PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize
--------------------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal is
reviewing the merits of a reorganization petition submitted by
Productos Magus S.R.L.

La Nacion recalls that the Company filed the petition after
defaulting on its debt obligations. A reorganization will allow
the Company to avoid bankruptcy by negotiating a settlement with
its creditors.

In its court filing, the Company stated liabilities of
US$255,436.18.

The city's Clerk No. 41 assists the court on the Company's case.

CONTACT: Productos Magus S.R.L.
         Ibera 4560
         Buenos Aires


WALK S.A.: Liquidation Planned to Pay Debts
-------------------------------------------
Walk S.A. will begin the liquidation process after Court No. 22
of Buenos Aires' civil and commercial tribunal pronounced the
Company bankrupt, Infobae reports.

The ruling places the Company under the supervision of court-
appointed trustee Mirta Aurora Lopez. Ms. Lopez will verify
creditors' proofs of claims until May 3. The validated claims
will be presented in court as individual reports on June 15.

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 August 11.

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

CONTACT: Ms. Mirta Aurora Lopez, Trustee
         Corrientes 2335
         Buenos Aires


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

SAM LORD'S CASTLE: Given Sale Deadline
--------------------------------------
Sam Lord's Castle has been given until March 31 to decide on a
$32-million offer for the historic hotel, reports the Barbados
Daily Nation. Creditors of the hotel met Friday to thresh out
difficulties before reporting back to the High Court on March 7
on the outcome of the meeting.

The creditors have also given Grants Hotel Inc, the owners of
Sam Lord's Castle, until May 30 to complete the sale of the
property. Should the sale fall through, the major creditors plan
to have the hotel declared bankrupt.

This is the third attempt to sell the hotel, which sits on 80
acres of beachfront property and reportedly has assets estimated
at around $105 million. The hotel owes the National Insurance
Scheme (NIS) $6.5 million, the Barbados National Bank $10
million and about $12 million to other creditors.


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

FOSTER WHEELER: Updates Capital Share Information
-------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWHLF) announced Wednesday that,
subsequent to its November 29, 2004 shareholders meeting,
586,536 or 97.8% of its Series B Convertible Preferred Shares
have been converted into 38,124,840 Common Shares. As a result,
the total number of the Company's outstanding Common Shares at
the close of business on February 28, 2005 was 44,577,838, and
the Company's common share market capitalization was
approximately $800 million.

13,408 Series B Convertible Preferred Shares remain outstanding
as of February 28, 2005. These Preferred Shares are convertible
into an additional 871,501 Common Shares.

As previously announced, the Series B Convertible Preferred
Shares ceased to have voting rights immediately following the
Company's shareholders meetings on November 29, 2004, except in
limited circumstances as required under Bermuda law and the
Company's bye-laws.

The holders of Series B Convertible Preferred Shares will not be
entitled to vote their shares at the Company's upcoming 2005
Annual General Meeting of Shareholders, unless they convert
their Series B Convertible Preferred Shares into Common Shares
(65 Common Shares for each Preferred Share converted) prior to
March 11, 2005. The Annual General Meeting is currently
scheduled for May 10, 2005.

About Foster Wheeler

Foster Wheeler Ltd. is a global Company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries.

CONTACT: Foster Wheeler Ltd.
         Media:
         Ms. Maureen Bingert
         Phone: 908-730-4444
             or
         Investors:
         Mr. John Doyle
         Phone: 908-730-4270
             or
         Other Inquiries:
         Phone: 908-730-4000

         Web site: http://www.fwc.com


SAN GIORGIO LTD.: Resolves to Wind-Up Operations
------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                          And

            IN THE MATTER OF San Giorgio Ltd.

By Written Resolution of the sole Member of San Giorgio Ltd., on
the 28th February, 2005, the following resolutions were duly
adopted:

1. THAT the Company be wound up voluntarily pursuant to the
provisions of The Companies Act, 1981; and

2. THAT Mr. Mark J. Kimberley of Sofia House, 1st Floor, 48
Church Street, Hamilton Bermuda be appointed Liquidator for the
purpose of winding up the Company.

The Liquidator informs that:

- Creditors of San Giorgio Ltd. are required on or before March
23, 2005, to send their names and addresses and the particulars
of their debts or claims to the Liquidator of the said Company,
and if so required by Notice in writing from the said Liquidator
to come in and prove their said debts or claims at such time and
place as shall be specified in each notice or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.

- The Final General Meeting of the Member of San Giorgio Ltd.
will be held at Sofia House, 1st Floor, 48 Church Street,
Hamilton, Bermuda on April 4, 2005 at 10:00 a.m. for the purpose
of having an account laid before them showing the manner in
which the winding-up has been conducted and the property of the
Company disposed of, and of hearing any explanation that may be
given by the Liquidator, and also of determining by resolution
the manner in which the books, accounts and documents of the
Company and of the Liquidator thereof, shall be disposed.

CONTACT: Mr. Mark J. Kimberley, Liquidator
         Sofia House
         1st Floor
         48 Church Street
         Hamilton, Bermuda


UNB SELECT LIMITED: Names Beverly Mathias as Trustee
----------------------------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                             And

              IN THE MATTER OF UNB Select Limited

The Members of UNB Select Limited, acting by written consent
without a meeting on February 25, 2005 passed the following
resolutions:

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

(2) THAT Beverly Mathias 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 UNB Select Limited, which is being voluntarily
wound up, are required, on or before March 16, 2005 to send
their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Beverly Mathias
at c/o Argonaut Limited, Argonaut House, 5 Park Road, Hamilton
HM O9, Bermuda, the Liquidator of the said Company, and if so
required by notice in writing from the said Liquidator, and
personally or by their lawyers, to come in and prove their debts
or claims at such time and place as shall be specified in such
notice, or in default thereof they will be excluded from the
benefit of any distribution made before such debts are proved.

- A final general meeting of the Members of UNB Select Limited
will be held at the offices of Argonaut Limited, Argonaut House,
5 Park Road, Hamilton HM O9, Bermuda, on March 28, 2005 at 9:30
a.m. for the purposes of:

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

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

CONTACT: Ms. Beverly Mathias, Liquidator
         c/o Argonaut Limited
         Argonaut House
         5 Park Road
         Hamilton HM O9
         Bermuda


UNB SELECT TRADING: To Hold Final Meeting March 28
--------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                        And

        IN THE MATTER OF UNB Select Trading Limited

The Members of UNB Select Trading Limited, acting by written
consent without a meeting on February 25, 2005 passed the
following resolutions:

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

(2) THAT Beverly Mathias 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 UNB Select Trading Limited, which is being
voluntarily wound up, are required, on or before March 16, 2005
to send their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Beverly Mathias
at c/o Argonaut Limited, Argonaut House, 5 Park Road, Hamilton
HM O9, Bermuda, the Liquidator of the said Company, and if so
required by notice in writing from the said Liquidator, and
personally or by their lawyers, to come in and prove their debts
or claims at such time and place as shall be specified in such
notice, or in default thereof they will be excluded from the
benefit of any distribution made before such debts are proved.

- A final general meeting of the Members of UNB Select Trading
Limited will be held at the offices of Argonaut Limited,
Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, on March
28, 2005 at 9:30 a.m. for the purposes of:

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

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

CONTACT: Ms. Beverly Mathias, Liquidator
         c/o Argonaut Limited
         Argonaut House
         5 Park Road
         Hamilton HM O9
         Bermuda


UTAR (HOLDINGS) LIMITED: Court Releases Liquidator
--------------------------------------------------
   IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)

         IN THE MATTER OF THE COMPANIES ACT 1981

                      and

IN THE MATTER OF Utar (Holdings) Limited (In Liquidation)

TAKE NOTICE that the Supreme Court of Bermuda granted an Order
on February 24 2005 in respect of Utar (Holdings) Limited (In
Liquidation) ("the Company") for the release of the Company's
Liquidator and for dissolution of the Company.


VK AVIATION: Dietmar Seidler to Serve as Liquidator
---------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                              And

           IN THE MATTER OF VK Aviation & Trading Ltd.

By Written Resolutions of the Sole Member of VK Aviation &
Trading Ltd., on February 25, 2005, the following resolutions
were duly passed:

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

(2) Mr. Dietmar F. Seidler, of Wolfgartenstr. 25, D-63329
Egelsbach, Germany be and is hereby appointed Liquidator for the
purposes of winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- the Creditors of VK Aviation & Trading Ltd. are required on or
before March 17, 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 said 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 Sole Member of VK Aviation &
Trading Ltd. will be held at Milner House, 18 Parliament Street,
Hamilton, Bermuda, on April 4, 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 the Company.

CONTACT: VK AVIATION & TRADING LTD.
         c/o Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


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

BANCO SANTOS: Owner's House Raided by Federal Police
----------------------------------------------------
Brazilian federal police raided the house of Edemar Cid
Ferreira, the owner of intervened Brazilian bank Banco Santos,
reports Business News Americas.

Police were looking for evidence to support accusations by
public prosecutors that Ferreira skimmed off the top of
financial resources provided by Brazil's federal development
bank (BNDES).

Santos is one of the Brazilian banks that act as intermediaries
to channel the financial resources that BNDES makes available to
Brazilian companies and investment projects.

Santos has been under the central bank's intervention since
November last year due to financial woes and alleged
irregularities. Various credit groups have publicly declared
they prefer to avoid a liquidation of the bank but have also
called for Ferreira to put up his own money to save Santos.


CESP: BNDES to Become Major Shareholder
---------------------------------------
Brazil's national development bank BNDES's current 1.4% stake in
Sao Paulo state generator Cesp could increase to 28% if it
agrees to convert BRL575 million (US$219mn) of debt into shares.

The conversion, which will see BNDES becoming Cesp's major
shareholder, would cover part of Cesp's BRL3-billion debt that
comes due this year.

Cesp could raise another BRL575 million from the sale of shares
in Sao Paulo's state-owned transmission company CTEEP, and
another BRL2 billion by selling local debt convertible into Cesp
shares in the short term.

According to Sao Paulo energy and water Secretary Mauro Arce,
the operation would allow Cesp to meet debt obligations through
2009, when the Company expects its revenue to cover future
payments of its total BRL10.4 billion debt. About BRL6.3 billion
of Cesp's debt is denominated in foreign currency.

Sao Paulo does not plan to sell control of CTEEP, Arce said.


CFLCL: Postpones Power Plants' Sale
-----------------------------------
The sale of Brazilian power Company Companhia Forca e Luz
Cataguazes-Leopoldina's (CFLCL) two small-scale hydroelectric
plants to Brascan Energetica has been delayed for 60 days to
give the two firms time to meet the conditions of the sales
agreement, reports Business News Americas, citing a Company
statement to the Sao Paulo stock exchange.

The plants - 24.4MW Ivan Botelho I, formerly known as Ponte, and
15.8MW Tulio Cordeiro de Mello, formerly known as Granada - are
estimated to be worth a combined BRL51 million (US$19.3
million).

Brascan Energetica is a unit of Canada's Brascan.


CONTACT: Mauricio Perez Botelho
         Investor Relations Director
         Companhia Forca e Luz Cataguazes-Leopoldina
         Praca Rui Barbosa, 80 - CEP 36770-901
         Cataguases, MG
         Phone: (32) 3429-6282
         Fax: (32) 3429-6480
         E-mail: mbotelho@cataguazes.com.br


CSN: Ratings Not Affected By Private Shareholder Agreement
----------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that the
ratings on Companhia Siderurgica Nacional (CSN) (local currency:
BB/Stable/--; foreign currency: BB-/Stable/--) will not be
affected by the announcement of a private agreement among its
shareholders through which the Steinbruch family will acquire
full control of Vicunha Steel S.A., which is the ultimate
indirect owner of 46.48% of CSN.

Details on the private agreement have not been disclosed and its
effective completion depends on the achievement of certain
conditions, but Standard & Poor's believes there is no immediate
impact on CSN's creditworthiness deriving specifically from this
deal, as it is not expected to affect the relationship between
CSN and its direct shareholder, Vicunha Siderurgia S.A.
(Vicunha). The negotiation between the Steinbruch family and the
Rabinovich family, as well as the commitments assumed by both
parties, should remain limited at the ultimate shareholders'
level, thus at a higher level than that of Vicunha.

Based on conversations with the Company, Standard & Poor's
understands that Vicunha's debt profile will not be directly
affected by the announced deal, in particular because of
contractual restrictions and penalties on the debentures issued
by Vicunha. Standard & Poor's criteria require Vicunha's debt to
be consolidated as if it was CSN's for the purpose of ratio
calculation, and any material change in Vicunha's capital
structure would have to be reassessed, in particular if that
change affects dividend distribution required from CSN to
service upstream obligations.

Primary Credit Analyst: Reginaldo Takara, Sao Paulo (55) 11-
5501-8932;
reginaldo_takara@standardandpoors.com

Secondary Credit Analysts: Milena Zaniboni, Sao Paulo (55) 11-
5501-8945; milena_zaniboni@standardandpoors.com; Regina Nunes,
Sao Paulo (55) 11-5501-8937; regina_nunes@standardandpoors.com


LIGHT SERVICOS: Finance Ministry Blocks Power Rates Hike
--------------------------------------------------------
Brazilian distribution Company Light cannot implement the 6.1%
power rate increase granted to it by power regulator Aneel last
month.

According to a Business News Americas report, the finance
ministry has vetoed the increase saying that the country's
legislation does not allow public services rates increases more
than once in 12 months.

Light has been granted a 13.5% rates increase in November last
year, meaning the Company can only raise rates again in November
this year.

The finance ministry's decision will reduce Light's expected
revenues for the year by BRL500 million (US$191mn), thereby
hurting the Company's capacity to pay its US$1.5 billion debt.

This could affect debt negotiations with creditor banks,
blocking access to further financing from national development
bank BNDES, newspaper Valor Econ“mico reported.

Light, which is controlled by France's state power Company EDF,
sells power in 33 towns in the southeastern state of Rio de
Janeiro.


TELEMAR: S&P Affirms Rating
---------------------------
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Telemar Participacoes S.A.'s Euro medium-term notes (EMTN) of
$50 million (approximately Brazilian reais [BrR] 142 million)
due November 2005.

The 'B+' rating on Telemar's notes is two notches below Tele
Norte Leste Participacoes S.A.'s (TNL) 'BB' local currency
rating, which reflects the subordination of the notes to all
debt at TNL's level.

The underlying issuer rating reflects Telemar's 52.3%
controlling participation in TNL (LC: BB/Stable/--; FC: BB-
/Stable/--) and 17.5% share of TNL's total capital, and the fact
that TNL is Telemar's only source of cash. As controlling
shareholder of TNL, Telemar can decide on TNL's dividend
distribution. "The rating also reflects our expectation that TNL
will continue to present adequate financial performance, with
sufficient free cash flow to allow it to distribute the
necessary dividend for Telemar to serve its debt obligations,"
said Standard & Poor's credit analyst Daniel Araujo.

Telemar is a holding Company created to participate in Telebras'
privatization process and, as a result, the stake in TNL is the
Company's only significant asset.

TNL is Brazil's largest telecom carrier, offering local and
long-distance, data services, and wireless communications. The
Company holds more than 15 million fixed-line accesses in 16
states in the northern, southeastern, and northeastern regions
of the country (so-called "Region I").

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis
system, at www.ratingsdirect.com. All ratings affected by this
rating action can be found on Standard & Poor's public Web site
at www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Find a Rating, then Credit Ratings
Search.


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

AES GENER: Strong Peso Pulls EBITDA 9.6% in 2004
------------------------------------------------
AES Gener reported net income of Ch$39 billion as of December
31, 2004, with operating income of Ch$110 billion and
consolidated EBITDA, defined as operating income plus
depreciation, of Ch$154 billion.

As the Company's main revenues and costs are U.S. dollar-
indexed, the EBITDA expressed in this currency is relevant. As
of December 31, 2004, the EBITDA was US$253 million, 9.6% higher
than the US dollar EBITDA recorded in 2003, due to a 12% peso
appreciation of the average exchange rate in 2004.

In pesos, operating income in 2004 was Ch$110 billion, 2.6%
lower than the Ch$163 billion recorded in 2003. However, in US
dollars, operating income recorded a 10.5% increase, rising from
US$163 million in 2003 to US$180 million in 2004, as a
consequence of higher income from sales to regulated customers,
the firm capacity settlement in the Chilean Central
Interconnected System and the appreciation of the peso against
the US dollar, which was partially offset by higher fuel
consumption associated with restrictions in the supply of
natural gas from Argentina.

Additionally, non-operating losses decreased by 2% in pesos and
by 11% in US dollars due to extraordinary income related to the
sale of certain non-core assets, lower financial expenses and a
lower exchange variation effect. These factors offset the
decrease in contributions from related companies and the
reduction in financial income relating to accrued interest
charged to parent Company Inversiones Cachagua in 2003.

Net income recorded by the Company in 2004 compares with net
income of Ch$55 billion recorded in 2003.

It should be noted that during 2004, AES Gener successfully
concluded the financial restructuring initiated the previous
year, which reduced consolidated debt by approximately US$300
million and extended the Company's principal liabilities until
2014. In terms of lower financial expenses, excluding the
extraordinary costs associated with the restructuring process, a
positive variance of Ch$13 billion was registered in 2004. The
restructuring process also resulted in a substantial improvement
in the financial expenses coverage ratio, given that as of
December 31, 2004, the Company recorded a ratio of operating
cash flow to financial expenses of 3.6, the highest in the last
8 years.

During 2004, the companies of the AES Gener group, including
Guacolda, contributed 21% of the energy generated in the Central
Interconnected System ("Sistema Interconectado Central" or SIC)
and 21.4% of the energy generated in the Norte Grande
Interconnected System ("Sistema Interconectado del Norte Grande"
or SING).

More information is available in the FECU as of December 31,
2004, delivered Wednesday to the Superintendence of Securities
and Insurance ("Superintendencia de Valores y Seguros").

CONTACT: AES Gener
         Mariano Sanchez Fontecilla 310 Piso 3
         Santiago de Chile
         Phone: 562-6868900
         Fax: 562-6868991


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

BAVARIA: Slips Into Debt With US$31Mln Net Loss in 2004
-------------------------------------------------------
HIGHLIGHTS

- Sales volume grew 5.9% for the quarter and 4.7% for the year.
- Net Sales increased by 5.3% for the quarter and 3.7% for the
year.
- EBITDA increased by 12.3% for the quarter and 10.4% for the
year.

Grupo Empresarial Bavaria, GEB, the largest beverage Company in
Colombia and the second-largest brewer in South America
announces increases in sales volume, net sales, and EBITDA for
the fourth quarter and full year 2004. Principally as a result
of non-operating expenses, GEB recorded net losses for the
fourth quarter and full year 2004.

Sales volume grew by 5.9%, reaching 9.8 hectoliters (hl) sold in
the fourth quarter. Net sales increased by 5.3% to Ps.1.4
trillion (US$570 million), and EBITDA increased by 12.3% to
Ps.633,504 million (US$254 million). For the full year 2004,
sales volume grew by 4.7% to 34.3 million hl, net sales by 3.7%
to Ps.4.9 trillion (US$1,904 million), and EBITDA by 10.4% to
Ps.2.1 trillion (US$797 million). All comparisons are with
respect to the corresponding prior year period.

Sales Volume 4Q 2004

Total sales volume grew by 5.9% to 9.8 million hl during 4Q2004.
This was due primarily to the increase in volumes in the beer
and malt beverage category, which increased by 6.6% to 8.3
million hl compared to 4Q2003 levels, with generalized growth in
all markets.

Colombia recovered strongly in the beer and malt beverage
category with a 5.4% growth as compared to the 4Q2003, following
an improvement in domestic consumption and weather conditions
compared to earlier in the year. Marketing initiatives to
counteract competition in Peru and Ecuador resulted in 8.7% and
8.2% growth of beer and malt beverage sales in these countries.
Such strategies included the set-up of more and new coolers,
institutional campaigns, promotional materials, and focus on
service at the points of sale.

In Panama, beer and malt beverage sales grew by 8.8%, resulting
once again from stronger marketing and an increase in domestic
demand. Sales volume in the other beverage category increased by
1.9% to 1.5 million hl during 4Q2004, due in great part to an
increased participation in the water and fruit beverage market
in Colombia.

This higher market share in Colombia, Panama, and Ecuador offset
the decrease in sales volume of other beverages in Peru. During
2004, GEB terminated its low margin Pepsi Co. franchise in
southern Peru in order to focus on its own brands.

Sales Volume Full Year 2004

Sales volume in 2004 grew by 4.7% as compared to the previous
year, reaching 34.3 million hl sold, primarily because of a 4.6%
increase in beer and malt beverage sales. For this category, the
strong growth of 10.1%, 8.6%, and 8.0% in Panama, Ecuador, and
Peru, respectively, offset the 2.3% growth in Colombia. Other
beverage sales also increased by 5.4% with Colombia and Panama
in the lead, as a result of new product launches in these two
countries.

FINANCIAL RESULTS 4Q2004

Net sales grew in line with sales volume during 4Q2004 compared
to 4Q2003. Revenues for both periods reflect the price increases
that took place in Colombia during the third quarter of 2003.
EBITDA and operating income also grew as a result of improved
operating efficiencies.

Net Sales

Net sales grew by 5.3% as compared to 4Q2003, primarily due to
an increase of sales in Peru.

Cost of Goods Sold

Cost of goods sold decreased by 7.8% as compared to 4Q2003, as a
result of a reduction in costs for imported raw materials and
operating efficiencies and cost savings in all markets.

Gross Profit

Higher net sales and lower costs resulted in a 14.0% increase in
gross profit, which reached Ps.923,797 million. The gross margin
increased by 5 percentage points, going from 60.1% to 65.1%.

Selling, General, and Administrative Expenses

SG&A grew by 7.4% compared to 4Q2003. This is a result of a 6.8%
increase in advertising and marketing expenses, to Ps.302,617
million, due to heightened competition in Ecuador and Peru; and
an increase of 9.2% in administrative expenses, to Ps.107,175
million, that reflects higher legal fees incurred in connection
with the defense of the Ecuadorian operation's proprietary
rights on its bottles.

Non-operating Results

Non-operating income was Ps.374,458 million in 4Q2004, an
increase of Ps.250,850 million, or 202.9%, with respect to
4Q2003. Non-operating income includes Ps.452,436 million in
foreign exchange gains and a net decrease in other concepts for
Ps. 77,978 million pesos.

Non-operating expense totaled Ps.955,190 million in 4Q2004, an
increase of Ps.508,377 million, or 113.8%, as compared to
4Q2003. Non-operating expense includes Ps.600,221 million in
foreign exchange losses, Ps.108,590 million in interest expense,
Ps.96,991 million in amortization of goodwill and retirement
bonuses, and Ps.56,100 million in hedging expense.

The largest contributors to the increase in net non-operating
expense of Ps.257,529 million in 4Q2004, as compared to 4Q2003
were: an increase in the net foreign exchange loss of Ps.135,406
million, an increase in amortization expense of Ps.55,460
million, and an increase in net interest expense of Ps.13,838
million.

Net Loss

The net loss for 4Q2004 was Ps.57,603 million (US$23 million)
compared to a net loss of Ps.29,176 million (US$10 million) in
4Q2003. The increased loss is principally the result of the
increase in net non-operating expenses described above.

EBITDA

EBITDA grew by 12.3%, to Ps.633,504 million, as a result of
additional improvements in manufacturing and logistics, in the
presence of a moderate increase in operating expenses. EBITDA
margin increased by 2.8% going from 41.8% in 4Q2003 to 44.6% in
4Q2004.

GEB believes that, in addition to net income (loss), EBITDA is a
useful financial performance measure for assessing operating
performance and provides an additional basis to evaluate GEB's
ability to incur and service debt and to fund capital
expenditures.

EBITDA is a non-GAAP measure and does not have a standardized
definition. GEB's method for calculating EBITDA may differ from
those used by other companies and may not be comparable.

Balance Sheet

Total assets grew by 5.6% compared to 2003, principally as a
result of a 92.1% increase in cash and equivalents, which
totaled Ps.1,242,314 million at year-end. A portion of the cash
balance will be used to pay financial debt during the first
quarter of 2005. Accounts receivable decreased by Ps.19,460
million, resulting from better collections from distributors in
Peru.

Inventories decreased by Ps.108,546 million as a result of
efficiencies and improved logistics.

Total liabilities were Ps.7.2 trillion, 1.0% higher than the
level registered at year-end 2003. Financial debt accounts for
74.0% of total liabilities, and was Ps.5.3 trillion at year-end
2004. Of the Ps.5.3 trillion total, Ps.2.1 trillion is Colombian
peso denominated debt, and Ps.3.2 trillion is U.S. dollar and
Peruvian nuevo sol denominated debt. Foreign currency debt
decreased by 16.7% as a result of the revaluation of the
Colombian peso and payment of nuevo-sol denominated debt. The
decrease in the dollar and nuevo-sol denominated debt
counterbalanced the increase in peso-denominated debt, resulting
in a 7.6% decrease in total financial debt.

Capital Expenditure (CAPEX)

Capital investments during the fourth quarter of 2004 were
Ps.217,765 million, of which 20.7% went to bottles and crates,
41.6% to land and buildings, 5.1% to refrigeration equipment,
25.3% to machinery and equipment, and 7.3% to other assets. By
country, 74.9% of capital investments were made in Colombia,
8.6% in Peru, 12.5% in Ecuador and 4.0% in Panama.

FINANCIAL RESULTS FULL YEAR 2004

Net Sales

Net sales increased by 3.7%, due primarily to higher sales
volumes throughout the year. Price increases for beer and malt
in Colombia offset the decrease in net sales in Peru, which were
negatively affected by the termination of the Pepsi Co.
franchise in the second quarter. Appreciation of the Colombian
peso explains the observed decrease in net sales in Ecuador and
Panama.

Cost of Goods Sold

Cost of goods sold decreased by 7.6%, as a result of a reduction
in costs for imported raw materials and operating efficiencies
and cost savings in all markets.

Gross Profit

Gross profit grew by 11.3%, with a 64.1% gross margin
generation, compared to 59.7% in 2003.

Selling, General and Administrative Expenses SG&A grew by 8.3%
with respect to 2003, due in large part to an 11.9% increase in
advertising and marketing expenses, which reached Ps.1,144,003
million. Administrative expenses declined by 0.5% to Ps.416,731
million in 2004, compared to the 2003 level.

Non-operating Results

Non-operating income was Ps.657,295 million in 2004, an increase
of Ps.442,325 million, or 205.8%, with respect to 2003. Non-
operating income includes Ps.488,246 million in foreign exchange
gains, Ps.87,946 million from gains on the sale of assets, and
Ps.33,506 million in interest income.

Non-operating expense totaled Ps.2,033,717 million in 2004, an
increase of Ps.895,739 million, or 78.7%, as compared to 2003.
Non-operating expense includes Ps.710,589 million in foreign
exchange losses, Ps.482,916 million in interest expense,
Ps.299,895 million in amortization of goodwill and retirement
bonuses, and Ps.163,825 million in hedging expense.

Under Colombian GAAP, the Company records foreign exchange gains
when foreign currency denominated assets rise in translated peso
terms and foreign currency denominated liabilities fall. Foreign
exchange losses are recorded in the opposite circumstances. GEB
has more dollar denominated assets than liabilities, principally
because its investments in Peru, Ecuador, and Panama are
denominated in U.S. dollars. As a consequence, the appreciation
of the Colombian peso against the dollar (by 3.0% in 2003 and
14.0% in 2004) resulted in net foreign exchange losses in both
years.

The largest contributors to the increase in net non-operating
expense of Ps.453,414 million in 2004, as compared to 2003 were:
an increase in the net foreign exchange loss of Ps.197,479
million, an increase in amortization expense of Ps.106,348
million, an increase in hedging expenses of Ps.79,180 million,
and an increase in net interest expense of Ps.44,552 million.

Net Income (Loss)

As a result of the factors discussed above, most important among
them the increases in foreign exchange losses, amortization, and
hedging operations expense, which offset the improvement in
operating income, GEB generated a net loss of Ps.80,682 million
(US$31 million) in 2004, compared to net income of Ps.101,406
million (US$36 million) in 2003.

EBITDA

EBITDA was Ps.2,060,441 million (US$ 797 million), a 10.4%
increase as compared to the previous year. This reflects
successful efforts throughout the year in efficiencies,
manufacturing and logistics, and savings from regional
procurement and cheaper imported raw materials.

EBITDA margin grew by 2.5%, going from 39.3% in 2003 to 41.9% in
2004. GEB believes that, in addition to net income (loss),
EBITDA is a useful financial performance measure for assessing
operating performance and provides an additional basis to
evaluate GEB's ability to incur and service debt and to fund
capital expenditures. EBITDA is a non-GAAP measure and does not
have a standardized definition. GEB's method for calculating
EBITDA may differ from those used by other companies and may not
be comparable.

Capital Expenditures (CAPEX)

Capital investments during the full year 2004 were Ps.455,702
million, of which 25.2% went to bottles and crates, 29.9% to
land and buildings, 4.7% to refrigeration equipment, 35.3% to
machinery and equipment, and 4.9% to other assets. By country,
68.2% of capital investments were made in Colombia, 18.4% in
Peru, 10.0% in Ecuador and 3.4% in Panama.

About Bavaria

Grupo Empresarial Bavaria (GEB) is the largest beverage Company
in Colombia and the second largest brewer in South America. Its
Aguila, Cristal, Pilsener, and Atlas brands are industry leaders
in Colombia, Peru, Ecuador, and Panama, respectively. GEB also
markets soft drinks, fruit beverages, mineral water, and milk.
GEB's parent Company is Bavaria S.A., listed on the Colombian
Stock Exchange.

To view financial statements:
http://bankrupt.com/misc/Bavaria.pdf

CONTACT: Investor Relations
         Mr. Carlos German Quintero
         Phone: +57 1 638 9355
         E-mail: cgquintero@grupobavaria.com

         ZEMI Communications
         Mr. Daniel Wilson
         Phone: +1 (212) 689 9560
         E-mail: d.b.m.wilson@zemi.com

         Web site: www.grupobavaria.com


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

BANCO POPULAR: Moody's Withdraws Ratings
----------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco Popular Dominicano, C. por A., for business reasons.

The bank has no rated foreign currency debt outstanding. Please
refer to Moody's Withdrawal Policy on moodys.com.

Banco Popular Dominicano, C. por A., one of the largest banks in
the Dominican Republic, had over $2.4 billion in assets as of
September 30, 2004.

The following ratings were withdrawn:

Bank Financial Strength Rating: E+ , with stable outlook

Foreign Currency Deposits Rating: Caa1/Not Prime, with negative
outlook

Domestic Currency Deposits Rating: Ba1/Not Prime, with negative
outlook

Mexico City
David Olivares Villagomez
Vice President - Senior Analyst
Financial Institutions Group

New York
Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


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

AXTEL: Revenue Jumps 25% Year-on-Year in 2004
---------------------------------------------
AXTEL, S.A. de C.V., a Mexican telecommunications Company,
announced Wednesday its non-audited financial results for the
year 2004.

The Company reported that its revenues grew 25% with respect to
2003, reaching $3.86 billion pesos in the year.

Likewise, the revenues for the last quarter were $1.04 billion
pesos, 24% more than the revenues for the same period last year.

The operating cash flow (EBITDA) had an increase of 22%, going
from $1.02 billion pesos in 2003, to $1.25 billion pesos in
2004.

Accordingly, an increase was reported for the earning from
operation, which went from $119 million pesos in 2003 to $252
million pesos this year, representing a significant growth of
111%.

AXTEL also reported 454 thousand lines in service, that is, 30%
more than those reported for the close of 2003, which represents
a considerable increase.

Mr. Patricio Jimenez Barrera, AXTEL Director of Finance,
Administration, and Human Resources, said: "The financial
results at the end of 2004 ratify the good performance of the
Company, especially because it was a year of great growth, as we
started operations in six more cities, thus doubling up our
coverage in the country. We consider that our customer service
and care strategies have been and will continue to be key
factors for the consolidation of our operations and position in
the market during this year. Our financial strength is proven by
a very sound balance and an optimum capital structure, which
guarantees the continuity of our growth."

About AXTEL:

AXTEL is a Mexican telecommunications Company that provides
local telephone services, national and international long
distance services, data, Internet, virtual private networks, and
value added services.

AXTEL has provided Mexico with a basic telecommunications
infrastructure through an intelligent network that offers wide
coverage to all markets. At present, it is operating in Mexico
City, Monterrey, Guadalajara, Puebla, Leon, Toluca, Queretaro,
San Luis Potosi, Aguascalientes, Saltillo, Ciudad Juarez, and
Tijuana.

AXTEL has brought to the market various access technologies that
include fixed wireless telephony, point-to-point radio links,
point-to-multipoint radio links, and fiber optics, all of which
are offered to match the communication solutions that its
customers require.

59.5% of AXTEL capital is Mexican. The remaining 40.5% belongs
to foreign investors, among which are, mainly, AIG-GE Capital
Latin American Infrastructure Fund (LAIF); AIG Latin American
Equity Partners; Blackstone Group; American International
Underwriters Overseas Ltd., and Soros Group.

CONTACT: Corporativo AXTEL
         Blvd. Diaz Ordaz km 3.33
         Zona Industrial
         San Pedro Garza Garcˇa, N.L
         CP 66215
         Mexico

         Web site: http://eng.axtel.com.mx/


GRUPO IUSACELL: Denies Knowledge of Stock Movement Cause
--------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL, NYSE: CEL), announced
that this Company does not have knowledge of some relevant event
that has motivated the movement of its shares negotiated in the
Mexican stock market (BMV) Wednesday.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.

Independent of the negotiations towards the restructuring of its
debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operates.

CONTACT: Grupo Iusacell, S.A. de C.V.
         Prolongacion Paseo de la Reforma 1236
         Colonia Santa Fe
         Delegacion Cuajimalpa
         Mexico, D.F. 05348
         Mexico

         Investor:
         Mr. Jose Luis Riera K.
         Chief Financial Officer

         Mr. J. Victor Ferrer
         Finance Manager
         E-mail: vferrer@iusacell.com.mx
                  +5255-5109-5927

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


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

SIMSA: Returns to Black in 2004
-------------------------------
Peruvian zinc miner San Ignacio de Morococha (Simsa) posted a
net profit of PEN2.87 million (US$881,000) in 2004, reversing a
net loss of PEN13.3 million in 2003, reports Business News
Americas.

In a filing with securities regulator Conasev, Simsa revealed
sales of PEN73.1 million in 2004, 9.4% higher than the PEN66.8
million sales in 2003. The Company attributed higher sales to
higher production and improved zinc and lead prices.

In the fourth quarter, Simsa posted a PEN4.1 million profit on
sales of PEN22.5 million, less than the PEN5.74 million profit
on sales of PEN23.7 million in the same quarter 2003.

With the aid by a financing agreement with Switzerland's
Glencore, the Company invested in efficiency improvements and to
increase reserves last year, spending PEN7.54 million on
exploration.

Simsa mines at San Vicente in the Chanchamayo area of Junin
department in central Peru.


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

CADAFE: Facing Workers' Strike
------------------------------
Employees of Venezuelan state-owned power firm Cadafe have
threatened to go on strike if grievances concerning health
benefits and industrial safety are not acted upon, says Business
News Americas, citing a report by local newspaper El Carabobeno.

The workers have already gone before the labor ministry in
November last year to ask for improved health plans and
industrial safety measures, but have yet to receive an official
response.

According to the national union of electricians and related
trades, the number of workers nationwide that will join the
strike could reach 13,000.

Under Venezuelan labor law, workers can stage "conflict
measures" such as stoppages, but are prohibited from cutting
power to state oil firm PDVSA and subsidiaries, waterworks, the
military and mass transport systems. An aide at Cadafe president
Nervis Villalobos' office said the Company's operations are so
far unaffected.


PDVSA: Venezuela, Uruguay Sign Energy Cooperation Agreement
-----------------------------------------------------------
With the intention to provide true social and economic
development for the people of Latin America by making access to
oil and gas resources more democratic and within the scope of
integration and cooperation, the presidents of the Bolivarian
Republic of Venezuela, Hugo Chavez Frias, and Tabare Vazquez,
President of the Republic of Uruguay, signed Wednesday the
Montevideo Declaration regarding Petrosur. The Declaration
provides the framework for the Integral Energy Cooperation
Agreement and the Caracas Energy Cooperation Agreement, which
were approved thereafter.

The signing of the cooperation agreements took place in the
Uruguayan Government House's Cabinet Hall, and were among the
first items of President Tabare Vazquez's agenda immediately
after his inauguration ceremony. Present among the guests at the
signing ceremony were Rafael Ramirez Carreno, Venezuelan Energy
and Petroleum Minister, as well as President of Petroleos de
Venezuela, and the Uruguayan Energy and Mines Minister Jorge
Lepra.

"The full potential of multiplying wealth for the benefit of the
Latin American people's well-being proves the rightness of the
Petrosur initiative proposed by President Hugo Chavez Frias.
This was conceived as an strategic alliance between National
Energy Companies with the objective of strengthening them
further, turning them into more effective and efficient tools in
achieving regional integration" expressed Minister Ramirez.

The Integral Energy Cooperation Agreement reasserts the
aspiration of Venezuela in promoting bilateral cooperation based
on the principles of equality, reciprocity and mutual benefit,
as a means for countries to achieve the full sovereignty over
their natural resources. Included in the cooperation areas
covered were the development of studies, preparation and
execution of joint oil and gas projects -both upstream and
downstream- the strengthening of ties between the energy
companies of both countries, and the evaluation of cooperation
initiatives among the sectors linked to social development.

"The agreements entered by Venezuela and Uruguay underline the
increasing political will among Latin America countries to
consolidate the integration of our peoples and their
development", Minister Rafael Ramirez pointed out. The
integration of Latin America and the Caribbean will benefit a
market of more than 530 million people. In terms of energy, more
than 80% of the America 's oil and gas reserves are to be found
in Latin America.

Venezuela has enough hydrocarbon reserves to last another 285
years at the current rate of production. If the reserves of the
rest of the countries in the region were to be added, they would
account for 11.5% of the world's reserves. "Besides, the
strengths of our State-Owned National Energy Companies can also
boost development in other areas, something made evident by
PDVSA's example. Based on preliminary results, and dealing in
financial terms alone, in 2004 the Corporation achieved a gross
revenue of US$ 63 billion, which yielded a net income of $6.5
billion, according to Rafael Ramirez.

Earlier steps in the Petrosur initiative such as the recent one
were ENARSA, Argentina 's National Energy Company and PDVSA
subsidiary INTERVEN Venezuela, gave rise to the founding of
ENARSA / PDV, a joint venture which has already flagged its
first service stations in the Buenos Aires metropolitan area.
Even more recently, Petrobras, the Brazilian National Energy
Corporation and PDVSA signed a total of 14 agreements covering
oil, gas and petrochemicals, with the aim of strengthening
complementary economic integration to back development social is
Venezuela and Brazil.

Within this context, Minister Ramirez Carreno underlined that
"the struggle against poverty and ensuring an increasingly
fairer quality-of-life levels are common goals for a Latin
American and Caribbean nations, goals which can no longer be
postponed. We are fully aware of the problems affecting the
region inhabitants as regards access to energy. This is why we
claim the sovereign right of our peoples to manage their own
energy resources, and to promote integration and the sustainable
development of our nations".

CONTACT: Petroleos de Venezuela, S.A.
         Corporate Public Affairs
         Apartado Postal 169, Caracas 1010-A
         Venezuela
         Fax: (58 + 2 12) 708.44.60


PDVSA: Citgo Profitable For PDVSA, Says Ex-chief
------------------------------------------------
Citgo, the US refining and distribution subsidiary of Petroleos
de Venezuela (PDVSA), is generating profits of several hundred
million US dollars a year for Venezuela's state oil firm,
attests the U.S. unit's former president Luis Marin.

Business News Americas reports that Mr. Marin's statement, which
was made before a group of Venezuelan lawmakers, comes amid
President Hugo Chavez's declaration last month that CITGO, which
refines oil and makes asphalt in eight facilities in the US and
the Virgin Islands, is a money loser and that the country would
be better off without it.

Despite the widely criticized US$2 a barrel discount PDVSA gives
Citgo for oil supplies, Mr. Marin professed the PDVSA still made
US$184 million last year from these transactions. Apart from
this, Citgo also paid PDVSA US$400 million in dividends in 2004,
he said.

Mr. Marin, who was appointed as CITGO president in August 2003,
was replaced by Felix Rodriguez last month.


                            ***********


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

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

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