TCRLA_Public/050311.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 11, 2005, Vol. 6, Issue 50

                            Headlines

A R G E N T I N A

AGROINSUMOS DEL NORTE: Court Grants Reorganization Plea
ALBAGUE S.A.: Reorganization Process Starts
ARATIC S.A.: Liquidates Assets to Pay Debts
AVDA LIDORO QUINTEROS: Enters Bankruptcy on Court Orders
BAT S.A.: Verification Deadline Approaches

CAYETANO DE MAIO: Court Rules for Liquidation
CLINICA PRIVADA LIBERTAD: Gears Up for Reorganization
COMPANIA LACTEA DEL SUR: Verification Deadline Fixed
EDENOR: Head of Local Investment Fund Hints at Acquisition
GALYSUR S.A.: Court Converts Bankruptcy to Reorganization

IMPSA: Fitch Maintains Ratings on Corporate Bonds
LA PLATA CATERING: Obtains Reorganization Approval
MEDIPLAN FEDERAL: Enters Bankruptcy on Court Orders
METROGAS: Weak Peso Abets ARP1236MLn Net Loss in 2004
ROYAL SHELL: Kirchner Condemns Planned Fuel Price Hike

TELECOM ARGENTINA: Aims to Strengthen Hold in Cellphone Market
VIGEL S.A.: Begins Liquidation Process


B R A Z I L

ACESITA: Prosecutor Sees Conflict of Interest at Board
BANCO ITAU: Updates Shares Trading for Treasury
CEMIG: Reports BRL1.4Bln Net Profit in 2004
CEMIG: Reports Recent Board Decisions
LOCALIZA: Preparing for BRL350 Mln Debenture Issue

NET SERVICOS: Extends Multicanal Exchange Offer
SANASA: Moody's Withdraws Issuer Ratings


C O L O M B I A

TELECOM: Debt Administrator Sells Stake in Intelsat


C O S T A   R I C A

ICE: EIS Study for Hydropower Project Gets Thumbs Down


D O M I N I C A N   R E P U B L I C

EDESUR: Makes $2M Payment to Generators


J A M A I C A

DYOLL INSURANCE: FSC Temporarily Takes Over Management


M E X I C O

GRUPO MEXICO: Railway Unit Prepays MXN348.9 Mln Debt to Inbursa
MEXICANA/AEROMEXICO: Europeans Could Be Drawn to Bid


U R U G U A Y

COFAC: Reopening Possible Soon


V E N E Z U E L A

CANTV: CAF OKs $275M Financing
PDVSA: Over 5,000 Contract Workers to Become Fulltime Employees
PDVSA: Needs New Investment to Remedy Production Woes

     -  -  -  -  -  -  -  -

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

AGROINSUMOS DEL NORTE: Court Grants Reorganization Plea
-------------------------------------------------------
Agroinsumos del Norte S.R.L., a Company operating in Buenos
Aires, begins reorganization proceedings after Court No. 26 of
the city's civil and commercial tribunal, with assistance from
Clerk No. 51, granted its petition for "concurso preventivo."

While under reorganization, the Company will negotiate a
settlement proposal for its creditors so as to avoid a straight
liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Jose Miguel
Fernandez, the court-appointed trustee.

Creditors with claims against the Company must present proofs of
the Company's indebtedness to Mr. Fernandez by April 4. These
claims will constitute the individual reports to be submitted in
court on May 16. The court also requires the trustee to present
an audit of the Company's accounting and business records
through a general report due on June 29.

In addition, an informative assembly with the Company's
creditors is scheduled on November 1.

CONTACT: Mr. Jose Miguel Fernandez, Trustee
         Junin 55
         Buenos Aires


ALBAGUE S.A.: Reorganization Process Starts
-------------------------------------------
Court No. 2 of the civil and commercial tribunal for the
Argentine province of Pergamino approved a petition for
reorganization filed by local Company Albague S.A., reports
Infobae.

Mr. Ricardo Miguel Lostao, a local accountant, was designated as
the trustee. His  duties include the verification of creditors'
claims and preparation of the individual and general report.

The court gave creditors until April 11 to present their claims
to the trustee for verification, Infobae reveals, without
stating whether the court has set the deadlines for the filing
of the trustee's reports.

CONTACT: Albague S.A.
         Guerrico
         Partido de Pergamino

         Mr. Ricardo Miguel Lostao, Trustee
         Pinto 544
         Pergamino


ARATIC S.A.: Liquidates Assets to Pay Debts
-------------------------------------------
Buenos-Aires based Aratic S.A. will begin liquidating its assets
following the bankruptcy pronouncement issued by Court No. 14 of
the city's civil and commercial tribunal.

Infobae reports that the ruling places the Company under the
supervision of court-appointed trustee Fernando Miguel Altare.
Mr. Altare will verify creditors' proofs of claims until May 10.
The validated claims will be presented in court as individual
reports on June 22.

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 18.

The bankruptcy process will end with the disposal Company assets
to repay its creditors.

CONTACT: Mr. Fernando Miguel Altare, Trustee
         Piedras 153
         Buenos Aires


AVDA LIDORO QUINTEROS: Enters Bankruptcy on Court Orders
--------------------------------------------------------
Avda Lidoro Quinteros 1200 S.R.L. enters bankruptcy protection
after Court No. 14 of Buenos Aires' civil and commercial
tribunal, with the assistance of Clerk No. 27, ordered the
Company's liquidation. The order effectively transfers control
of the Company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Abel Alexis
Latendorf as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on May 12.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on June 24 followed by the general report that is due on August
22.

CONTACT: Mr. Abel Alexis Latendorf, Trustee
         Piedras 153
         Buenos Aires


BAT S.A.: Verification Deadline Approaches
------------------------------------------
The verification of claims for the Bat S.A. bankruptcy case will
end on April 12 according to a report from the Argentine
government's Boletin Oficial. Creditors with claims against the
bankrupt company must present proof of the liabilities to Ms.
Messina Maria Josefa, the court-appointed trustee, before the
deadline.

Court No. 8 of Mar del Plata's civil and commercial tribunal
handles the Company's case with the assistance from the city's
Clerk No. 5.

Proceeds from the sale of the Company's assets at the end of the
liquidation will be used to repay its creditors.

CONTACT:  Bat S.A.
          Av. Colin 5.529
          Mar del Plata

          Ms. Messina Maria Josefa, Trustee
          Calle San Martin 4.141
          Buenos Aires


CAYETANO DE MAIO: Court Rules for Liquidation
---------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Cayetano de Maio y Cia S.R.L. after
it defaulted on its debt obligations, says Infobae. The
pronouncement will effectively place the Company's affairs as
well as its assets under the control of Mr. Carlos Guido
Martino, the court-appointed trustee.

Mr. Martino will verify creditors' proofs of claims until May
10. The verified claims will serve as basis for the individual
reports to be submitted in court on June 23. The submission of
the general report follows on September 22.

The city's Clerk No. 9 assists the court on this case that
will close with the disposal of the Company's assets.

CONTACT: Mr. Carlos Guido Martino, Trustee
         Presidente Roque Saenz Pena 651
         Buenos Aires


CLINICA PRIVADA LIBERTAD: Gears Up for Reorganization
-----------------------------------------------------
Court No. 11 of Buenos Aires' civil and commercial tribunal
issued a resolution opening the reorganization of Clinica
Privada Libertad S.A., reports the city's Boletin Oficial.

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

Mr. Jorge Luis Blazquez, will serve as trustee during the course
of the reorganization. He will be validating creditors' proofs
of claims until March 29. The results of the verification will
be presented in court as individual reports on May 10. The
trustee is also obligated to give the court a general report of
the case on June 22. The general report summarizes events
relevant to the reorganization and provides an audit of the
Company's accounting and business records.

The Company will present the completed settlement proposal for
its creditors during the informative assembly scheduled on
October 20.

CONTACT: Mr. Jorge Luis Blazquez, Trustee
         Fray Justo Santa Maria de Oro 2.381
         Buenos Aires
         Phone: 4773-8104


COMPANIA LACTEA DEL SUR: Verification Deadline Fixed
----------------------------------------------------
The verification of creditors' claims for the Compania Lactea
del Sur S.A. (Ex Parmalat Argentina S.A.) insolvency case is set
to end on June 27, states Infobae.

Local accounting firm "Estudio Estevez, Indurain, Vazquez", the
court-appointed trustee tasked with examining the claims, will
submit the validation results as individual reports on September
2. The firm will also present a general report in court on
December 9. Further, the Company's creditors will vote on the
settlement proposal prepared by the Company on August 15 next
year.

Infobae adds that the Company's reorganization is under the
jurisdiction of Court No. 25 of Buenos Aires' civil and
commercial tribunal. Clerk No. 50 assists the court with the
restructuring process.

CONTACT: "Estudio Estevez, Indurain, Vazquez"
         Trustee
         Uruguay 750
         Buenos Aires


EDENOR: Head of Local Investment Fund Hints at Acquisition
----------------------------------------------------------
The head of Buenos Aires-based investment fund Grupo Dolphin
said he is willing to take part in the rumored sale of
Electricite de France's (EdF) controlling stake in power
distributor Edenor SA, says Dow Jones Newswires.

"I'm interested in the entire energy sector. If the French
decide to sell, I'm interesting in participating," Grupo Dolphin
chief Marcelo Mindlin said.

Rumors about the Edenor sale surface as EdF negotiates the sale
of another Argentine holding, Mendoza province power company
Edemsa SA.

EdF controls Edenor through its direct holding, Electricidad
Argentina SA, which has a 51% stake in the Argentine power
distributor. EdF owns a further 39% direct stake in Edenor,
which distributes electricity to the northwestern half of
greater Buenos Aires.

Edenor posted net losses of ARS89.9 million (US$30.8mn) in 2004.
The Company has been negatively affected by the devaluation of
the peso in early 2002 and subsequent rates freeze.

As of December 31, 2004, Edenor had ARS1.53 billion of net
equity.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mail: to ofitel@edenor.com.ar
          Web Site: http://www.edenor.com.ar


GALYSUR S.A.: Court Converts Bankruptcy to Reorganization
---------------------------------------------------------
Galysur S.A. proceeds with reorganization after Court No. 25 of
Buenos Aires' civil and commercial tribunal converted the
Company's ongoing bankruptcy case into a "concurso preventivo",
states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.

Mr. Oscar Leonardo Epstein, the court-appointed trustee, will
verify creditors' proofs of claims until April 21. Creditors
with unverified claims cannot participate in the Company's
settlement plan.

CONTACT: Mr. Oscar Leonardo Epstein, Trustee
         Viamonte 1620
         Buenos Aires


IMPSA: Fitch Maintains Ratings on Corporate Bonds
-------------------------------------------------
Fitch Argentina Calificadora de Riego S.A maintains a `D(arg)'
rating on US$150 million worth of corporate bonds issued by
Industrias Metalurgicas Pescarmona SA (IMPSA), the CNV says.

The affected bonds, issued under "series and/or class," were
described as "2 Serie emitida por US$150 millones del Programa
Global de US$ 250 millones." The bonds expired on May 30, 2002.

A `D (arg)'' rating indicates a Company has defaulted on its
financial commitment.

At the same time, Fitch maintains a `C(arg)' rating on US$250
million worth of IMPSA's bonds, which were classified under
program and described as "Programa de obligaciones negociables."
The bonds expired on June 2, 2004

A `C(arg)' rating indicates a highly uncertain capacity for
timely payment of financial commitments relative to other
issuers or issues in the same country. Capacity or meeting
financial commitments is solely reliant upon a sustained,
favorable business and economic environment, said Fitch.

The ratings assigned were based on IMPSA's financial health as
of October 31, 2004

CONTACT: Industrias Metalurgicas Pescarmona S.A.
         Latin America
         Mr. Hernan Guinazu
         Carril Rodriguez Pena 2451
         (M5503AHY) Godoy Cruz, Mendoza
         Argentina.
         Phone: (+54-261) 4131374
         Fax:(+54-261) 4131429 - 4131423
         E-mail: guinazu@impsa.com.ar

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


LA PLATA CATERING: Obtains Reorganization Approval
--------------------------------------------------
Judge Jorge Osvaldo Novelli, serving for Court No. 12 of Mar del
Plata's civil and commercial tribunal, approved the "Concurso
Preventivo" petition filed by La Plata Catering S.A., reports
the government's Boletin Oficial.

The Company will undergo a reorganization process with Ms.
Rosana Botin, Mr. Gabriel G. Veiras and Mr. Fernando Enrique
Tagliaferro as co-trustees.

The trustees will verify creditors' proofs of claim until April
8. Verifications are done to ascertain the nature and amount of
the Company's debts. Individual reports from the verified claims
will also be submitted on May 20.

Dr. Patricia Borenstein, the city's Clerk No. 12 assists the
court in resolving this case.

CONTACT:  La Plata Catering S.A.
          San Martin 2.563
          Mar del Plata

          Ms. Rosana Botin
          Mr. Gabriel G. Veiras
          Mr. Fernando Enrique Tagliaferro
          Co-Trustee
          Corrientes No 1.845 - 5
          Mar del Plata


MEDIPLAN FEDERAL: Enters Bankruptcy on Court Orders
---------------------------------------------------
Court No. 14 of Buenos Aires' civil and commercial tribunal
declared Mediplan Federal S.A. bankrupt after the Company
defaulted on its debt payments. The bankruptcy order effectively
places the Company's affairs as well as its assets under the
control of court-appointed trustee Mario Isaac Bekierman.

As trustee, Mr. Bekierman is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until May 5.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on June 17. A general report will also be
submitted on August 12.

Infobae reports that Clerk No. 27 assists the court on this
case.

CONTACT: Mr. Mario Isaac Bekierman, Trustee
         Avda Raul Scalabrini Ortiz 258
         Buenos Aires


METROGAS: Weak Peso Abets ARP1236MLn Net Loss in 2004
-----------------------------------------------------
MetroGAS (NYSE: MGS) announced Monday its financial results in
Argentine GAAP for the year and fourth quarter ended December
31, 2004.

I. Regulatory Framework:

After the Government passed Law 25,561 ("The Emergency Law"),
all licensed public service providers entered into a
renegotiation process with the Government that will result in
new terms for such licenses and concessions.  The most immediate
effect on MetroGAS was that all tariff adjustments were
suspended and tariffs remain frozen in pesos. The provisions of
the Emergency Law modify the Regulatory Framework applicable to
the transportation and distribution of natural gas. These
measures have led to such legal uncertainty that it is
impossible for the Company to invest and carry on its business
as usual.

In mid-February 2004 the Executive Power issued two Executive
Orders which provisions could influence the Company's operating
activities and its economic and financial performance. Executive
Order No. 180/04 established an investment scheme for basic gas
infrastructure works by creating two categories for Compress
Natural Gas ("CNG") customers (firm sale and interruptible
sale), as well as an Electronic Gas Market to coordinate the
transactions associated with gas purchases at the spot market
and the secondary gas transportation and distribution markets.
Executive Order No. 181/04 enabled the energy authorities to
enter into agreements with gas producers to determine an
adjustment in the price of gas purchased by gas distributors and
the implementation of applicable mechanisms for users who
purchase their own gas directly as distributors would no longer
be able to supply them. Furthermore, the Order divided
"residential" customers in three categories according to the
level of consumption.

On a later date, a set of resolutions and provisions were issued
to regulate the above-mentioned executive orders. The main
provisions refer to:

i) suspension of natural gas surplus exports to satisfy internal
supply;

ii) development of a Rationalization Program for Natural Gas
Exports and Use of Transportation Capacity;

iii) the ratification of the agreement to implement the Gas
Price Normalization Schedule at Points of Entry into the
Transportation System, through which the Company has
restructured most of its gas purchase contracts;

iv) discounts aimed at reducing the consumption according to the
below-defined thresholds and the application of additional
charges for certain customers that exceed them;

v) creation and constitution of a Trust System through a Trust
Fund to finance investment and

vi) approval of a cut-off mechanism that secured uninterruptible
demand.

At the date of these financial statements, the Company cannot
establish the financial or economical impact of the above-
mentioned provisions, nor determine the final implications of
the measures mentioned above in its operating activities and
results.

II. Restructuring of the Financial Debt:

As a result of the significant adverse changes that took place
in Argentina on March 25, 2002, MetroGAS announced the
suspension of its principal and interest payments on all of its
financial indebtedness. MetroGAS further announced that it had
retained J.P. Morgan Chase Bank Buenos Aires Branch and J. P.
Morgan Securities Inc. to assist the Company with the
development of a restructuring plan by providing managerial and
financial advisory services.

On November 7, 2003, the Company announced the commencement of a
solicitation of consent to restructure its unsecured financial
indebtedness pursuant to an acuerdo preventivo extrajudicial
(the "APE"), or out-of-court reorganization agreement under
Argentine law.  An APE is an insolvency remedy available to
debtors under the Argentine Bankruptcy Law consisting of an out-
of-court agreement between a debtor and a certain percentage of
its unsecured creditors that is submitted to a court. Once an
APE receives court approval, the APE is a binding mechanism that
affects all unsecured creditors of the relevant debtor, whether
or not such creditors have participated in the negotiation or
execution of the APE agreement. The original expiration date of
the APE Solicitation was December 10, 2003. The Company has
extended and may continue to prolong this agreement for an
extended period of time. At the time of the issuance of the
press release, favorable votes reached about US$91.6 million as
of November 5, 2004.

II. Accounting Policies:

The Company has prepared its financial statements in accordance
with generally accepted accounting principles in Argentina
("PCGA") established by the Buenos Aires Accounting Authorities
and taking into account provisions dictated by the National
Securities Exchange Commission (Comision Nacional de Valores
(the "CNV")).

Decree N 1,269/02, enacted by the government and the CNV
through Resolution N 415 dated July 25, 2002, approved the
restatement for inflation accounting methodology applicable as
of January 1, 2002.  Nevertheless, in accordance with the CNV
General Resolution N 441 dated April 9, 2003, and based on the
Executive Branch Decree N 664 passed on March 25, 2003, the
restatement of inflation in the financial statements was to be
discontinued as of March 1, 2003.

IV. Business Overview:

a) Highlights for the year ended December 31, 2004:

Net loss for 2004 amounted to Ps.123.0 million, compared to a
net loss of Ps.10.2 million in 2003. Net result was
significantly affected in the year 2004 as a result of the
negative effect of the foreign exchange. It is important to
mention that in the year 2003 the peso appreciated against the
dollar but that foreign exchange rate gain difference had not
implied a generation of funds. In 2004, the peso depreciated
against the dollar and the euro. (Exchange rate as of December
31, 2004 was US$1.00 = ARS 2.979).

The year ended December 31, 2004, was characterized by higher
volumes delivered to power plants, compressed natural gas
("CNG") and industrial, commercial and governmental customers,
as well as higher volumes of gas, transportation and
distribution services. The Company's 2004 total sales increased
by 25.0% to Ps.814.1 million, from Ps.651.5 million in 2003. It
is worth mentioning that, sales of gas, transportation and
distribution services increased by 26.5% compared to the
previous year. This increase resulted mainly from the higher
volumes mentioned above and the increase in the cost of gas
which has been passed through to the tariff in May and in
October of 2004 for industrial, commercial and governmental
customers and compressed natural gas.

The Company's gross profit in 2004 increased to Ps.174.9
million, compared to Ps.144.8 million in 2003.

Operating expenses increased by 26.1% in 2004 to Ps.639.1
million, from Ps.506.7 million in 2003. This increase was mainly
due to higher gas volumes delivered. Gas costs increased by
60.5% mainly due to the increase of gas purchased volume, and
higher prices given the implementation of the schedule for the
Normalization of Gas Prices at Points of Entry into the
Transportation System.

Total SG&A expenses increased in 2004 by 1.4% to Ps.116.4
million, from Ps.114.8 million in the previous year. This
increase was primarily due to an increase in taxes, rates and
contributions expenses, higher payroll and social contributions
as well as allowances for doubtful accounts, which were
partially offset by the decrease in certain expenses such as
intangible assets amortization, fixed assets depreciation and
lower legal contingencies.

As a result, 2004's operating income increased by 95.4% to
Ps.58.6 million, from an income of Ps.30.0 million in 2003.

Net financing and holding results totaled a loss of Ps.183.0
million during 2004, compared to a gain of Ps.7.1 million in
2003. The decline stems from lower income recorded in 2004
resulting from foreign exchange losses, which was generated by
our foreign-denominated financial debt. As explained above,
during 2003 the peso appreciated against the dollar and in 2004,
this situation was reverted and the peso depreciated against the
dollar and the euro.

During the year ended December 31, 2004, the Company did not
record income tax, compared to a loss of Ps.45.9 million for
income tax in 2003.

Loss per American Depositary Share (ADS) for the year ended
December 31, 2004 was Ps.2.16, compared to a loss per ADS of
Ps.0.18 in 2003. One ADS is equivalent to ten common shares.

b) Highlights for the fourth quarter of 2004:

The fourth quarter of 2004 was characterized by an increase in
sales of 47.9% over the same quarter of last year. Sales in the
fourth quarter of 2004 increased mainly due to higher volumes
delivered to power plants, residential customers, CNG and
industrial, commercial and governmental customers. It should be
mentioned that in May and in October of 2004, the cost of gas
included in the tariff increased for industrial, commercial and
governmental customers and compressed natural gas.

Operating results in 2004's last quarter resulted in a loss of
Ps.5.4 million, compared to an income of Ps.24.0 million in the
fourth quarter of 2003. Although the volumes delivered to all of
our customers increased by 26.7% during the fourth quarter of
2004, the operating result decreased when compared to the fourth
quarter of 2003, due to an extraordinary income of Ps.33.0
million recorded during the fourth quarter of 2003. This
extraordinary income corresponded to "take or pay" liabilities
recorded as of September 30, 2003, which were reversed as of
December 31, 2003 due to the favorable renegotiations with gas
producers.

Net financing and holding results for the fourth quarter of 2004
accounted for a loss of Ps.89.7 million, compared to a loss of
Ps.62.4 million in the same period of 2003. The loss recorded
during the fourth quarter of 2004 mainly stems from the exchange
rate losses given our foreign-denominated financial debt. The
foreign exchange loss owes to the depreciation of the peso
against the euro (from ARS 3.7051 as of September 30, 2004, to
ARS 4.0592 as of December 31, 2004).

As a result of the above-mentioned factors, a net loss of
Ps.94.7 million was recorded in the fourth quarter of 2004,
compared to a net loss of Ps.40.3 million in the same quarter of
2003.

Loss per ADS in the fourth quarter of 2004 amounted to Ps.1.67,
while loss per ADS amounted to Ps.0.71 in the fourth quarter of
2003.

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

CONTACT: Metrogas
         Gregorio Araoz de Lamadrid 1360
         C 1267 AAB
         Buenos Aires, Argentina
         Phone: 5411-4309-1000


ROYAL SHELL: Kirchner Condemns Planned Fuel Price Hike
------------------------------------------------------
Shell Argentine, the local unit of Royal Dutch/Shell Group,
announced Tuesday that it would raise the price of gasoline from
between 2.6% and 4.2% in different parts of the country.

The move came in response to the increase in international oil
prices this week above US$55 per barrel.

Much to the Company's dismay, however, the price hike
announcement was bluntly criticized by Argentine President
Nestor Kirchner.

"Shell is evidently in a process of absolute lack of cooperation
with Argentine society," the President said. By hiking prices,
he said, it is "trying to increase costs, trying to harm the
productive process.

"It is very good to me that the business sector, the productive
sector, is profitable. What they need to be understand is that
this profitability needs to take into account the needs of the
country and the shared prospects of the Argentine people,"
Kirchner said.

President Kirchner's criticisms seem to add to Shell Argentina's
problems in the country.

According to Dow Jones, the Company has accrued huge debts with
local oil producers arising out of the difference between the
high international price of oil and the artificially low $30-
per-barrel domestic price that refiners agreed to pay producers
under a two-year-old government-brokered arrangement. The scheme
was supposed to be self-correcting when the international price
fell below the agreed-to price, but this hasn't happened within
the timeframe that was originally expected.

Unlike other companies such as Repsol YPF SA (REP) or Petrobras
Energia Participaciones SA (PZE), Shell Argentina has no local
production unit with which to internally transfer the debts
arising from this arrangement. This creates a competitive
challenge for Shell. The Company cannot easily raise prices to
recoup the funds it needs to clear this debt, knowing that the
more integrated competitors have no need to do likewise.

So, Shell keeps accruing debt, one that is thought to have
complicated its efforts to sell the local unit.


TELECOM ARGENTINA: Aims to Strengthen Hold in Cellphone Market
--------------------------------------------------------------
Executives at fixed-line carrier Telecom Argentina revealed that
the Company is seeking to boost its share in the country's
rapidly expanding cellular-phone market to 30% this year,
relates Dow Jones Newswires.

"We are thinking that we will focus our efforts and try to
maintain our actual market share or likely increase it from 28%
to 30%," Telecom Argentina's chief executive officer, Carlos
Felices, was quoted as saying during a conference call to
discuss the Company's fourth-quarter and full-year results.

On Tuesday, Telecom Argentina reported a fourth-quarter net loss
of ARS175 million ($1=ARS2.93), an improvement over a year-
earlier net loss of ARS428 million.

For the full year, the Company had a net loss of ARS666 million,
down from net profit of ARS351 million in 2003.

Telecom Argentina cited foreign-exchange effects for the
decline, since it hasn't yet completed restructuring of its
US$2.63 billion debt load, which is denominated mostly in U.S.
dollars and euros.

But the Company is hopeful it will be able to complete its debt
restructuring by mid-2005. Telecom Argentina will soon issue the
legal notices required to kick off a 10-day objection period
that is part of the judicial approval process for the Company's
debt restructuring offer.

CONTACT: Telecom Argentina S.A.
         Alicia Moreau de Justo
         No. 50
         Buenos Aires, 1107
         Argentina
         Phone: (54-11) 4968-3627


VIGEL S.A.: Begins Liquidation Process
--------------------------------------
Vigel S.A. of Buenos Aires will begin liquidating its assets
after Court No. 14 of the city's civil and commercial tribunal
declared the Company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee Patricia Sandra Ferrari.

Ms. Ferrari will review claims forwarded by the Company's
creditors until May 6. After claims verification, the trustee
will submit individual reports for court approval on June 22.
The general report submission should follow on August 18.

Clerk No. 28 assists the court on this case.

CONTACT: Ms. Patricia Sandra Ferrari, Trustee
         Viamonte 1653
         Buenos Aires



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

ACESITA: Prosecutor Sees Conflict of Interest at Board
------------------------------------------------------
Ciro Gomes, head of Brazil's development ministry, could lose
his seat on the board of local steelmaker Acesita due to a
conflict of interest.

Business News Americas reported Wednesday that Brazil's public
prosecutor's office has asked Mr. Gomes to step-down from the
Acesita board because his work for the country's regional
development planning are at odds with his functions at the steel
Company. The recommendation for his removal came after a 2003
investigation that looked into possible conflicts of interest in
the Company.

Acesita, based in Belo Horizonte, is part of Arcelor, the
world's largest steel manufacturer. Acesita makes stainless
steel, carbon and alloy flat steels.

CONTACT:  ACESITA S.A.
          Avenida Joao Pinheiro
          580 Centro Belo Horizonte
          Minas Gerais, 30130
          Brazil
          Website: http://www.acesita.com.br
          Phone: 55-31-3235-4200


BANCO ITAU: Updates Shares Trading for Treasury
-----------------------------------------------
1. On November 18 2004, in keeping with the best Corporate
Governance practice, Banco Itau Holding Financeira S.A. (Itau
Holding) voluntarily disclosed its "Operating Rules for the
Trading of Own shares for Treasury"("Rules").

2. Item 2.1.3 of the "Rules" established the obligation to make
monthly disclosure of the volumes of own shares traded on stock
exchanges by Itau Holding, and minimum, average and maximum
prices.

3. The bank informs the capital market entities that during the
month of February 2005, Itau Holding did not trade any of its
own shares for treasury.

4. The bank would remind readers that historical data is
available in the organization's Investor Relations site.

CONTACT: Banco Itau Holding Financeira S.A.
         Investor Relations
         Mr. Geraldo Soares
         Investor Relations Superintendency
         Praca Alfredo Egydio de Souza Aranha 100
         Torre Conceicao - 11  04344-902
         Sao Paulo
         Phone: +5511 5019-1549
         Fax: +5511 5019-1133


CEMIG: Reports BRL1.4Bln Net Profit in 2004
-------------------------------------------
Cemig hereby advises its stockholders and investors in general
that its Board of Directors announced the Company's consolidated
financial statements for 2004 that will be sent to the Brazilian
CVM on 9 March.

The financial statements report 2004 net profit of R$ 1.385
billion, or R$ 8.54 per share, 15.6% higher than the net profit
of R$ 1.198 billion reported for 2003.

Net sales revenue in 2004 was R$ 7.141 billion, and cash flow as
measured by Ebitda (earnings before interest, tax depreciation
and amortization) was R$ 2.266 billion, respectively 27% and
26.1% higher than in 2003. Ebitda margin, at 32%, was unchanged
from 2003.

Total electricity unit volume sales were 37,897 GWh, 3.6% more
than in 2003, and sales to final consumers totaled 37,479 GWh,
an increase of 4.4%.

Operational expenses totaled R$ 5,459 billion, an increase of
24.2%. We highlight the following components:

- An increase of 102% in the Energy Development Account (CDE).
- An increase of 89% in total Charges for Use of the Basic
Transmission Network.
- An increase of 6% in the total cost of electricity bought for
resale.

The following were the most significant factors contributing to
the 2004 result:

- Recalculation of the 2003 tariff review, from an increase of
31.53% to an increase of 37.86%, giving rise to a regulatory
asset (Deferred Tariff Adjustment, or RTD) in the amount of R$
359 million.
- Annual tariff reviews of: (i) 31.53% in 2003 (with full effect
in 2004); and (ii) 19.12% in April 2004, reduced in a review by
Aneel in May to 14%.
- Constitution of a regulatory asset totaling R$ 361 million,
arising from the recovery of Cofins tax expenses not covered by
the tariff in 2004.
- Sale of 40% of Gasmig to Petrobras for R$ 153.8 million, with
a capital gain of R$ 101.8 million.

Cemig will hold a meeting for Brazilian and international
investors on 11 March, to provide more details and comment.

CONTACT: Cemig
         Av. Barbacena 1200
         Santo Agostinho - CEP 30190-131
         Belo Horizonte, Brasil
         Fax (0XX31)299-4691
         Phone: (0XX31)3299-4524


CEMIG: Reports Recent Board Decisions
-------------------------------------
Matters approved by the meeting of the Board of Directors of
Cemig held on 7 March 2005:

1. Report of Management and Financial Statements for the
business year of 2004.

2. Proposal of the Board of Directors to the Annual General
Meeting to be held on or before 30 April 2005.

3. Construction of the Irape - Montes Claros low voltage
transmission line.

4. Advances against future capital increases to the companies
Usina Termeletrica Barreiro S.A. (Barreiro Thermo-electric
generation plant) and CEMIG PCH S.A.(Cemig Small Hydroelectric
Plants).

5. Contracting with Deloitte Touche Thomatsu for the services of
auditing of accounts of the Irape Construction Consortium (re-
ratification of the respective CRCA).

6. Signature of Agreement and Amendment relating to the Contract
to build the Pai Joaquim PCH (Small Hydroelectric Plant).

7. Construction of the Irape-Aracuai low voltage transmission
line.

CONTACT: Cemig
         Av. Barbacena 1200
         Santo Agostinho - CEP 30190-131
         Belo Horizonte, Brasil
         Fax (0XX31)299-4691
         Phone: (0XX31)3299-4524


LOCALIZA: Preparing for BRL350 Mln Debenture Issue
--------------------------------------------------
Brazilian car-rental firm Localiza is preparing to embark on a
BRL350-million ($1=BRL2.71) debenture issue maturing in 2010,
Dow Jones Newswires reports, citing a financial-market
participant involved in the issue.

The issue is being coordinated by Itau BBA bank.

Standard & Poor's Ratings Services affirmed this week its 'BB-'
local and foreign currency corporate credit ratings on Localiza.
The outlook on the local currency rating was revised to positive
from stable while the outlook on the foreign currency rating
remains stable.

The ratings agency explained that Localiza's ratings reflect the
relatively early stages of the car rental industry in Brazil and
the political and economic risks inherent in any investment in
this country, which is partially offset by the Company's
dominant position in the Brazilian car rental market, its
expertise in weathering volatility, and its conservative
financial profile based on high liquidity and low leverage
relative to cash flow.

Localiza, based in Minas Gerais state, was established in 1973
and is controlled by a family group in partnership with Credit
Suisse First Boston. The Company is the largest car-rental
company in Latin America, with agencies in eight countries -
Brazil, Ecuador, Argentina, Bolivia, Chile, Paraguay, Uruguay
and Mexico.


NET SERVICOS: Extends Multicanal Exchange Offer
-----------------------------------------------
Net Servicos de Comunicacao S.A., a sociedade anonima organized
under the laws of the Federative Republic of Brazil (the
"Company"), announced Wednesday that it is extending its
exchange offer and consent solicitation regarding its 12 5/8%
Senior Guaranteed Notes due 2004 in aggregate principal amount
US$97,692,000, excluding accrued interest (the "Existing
Notes"), to 5:00 p.m., Eastern time, on Thursday, March 17,
2005, unless further extended by the Company.

In the exchange offer, the Company is offering to exchange up to
US$76,593,068 aggregate principal amount of its 7.0% Senior
Secured Notes due 2009, which have been registered under the
Securities Act of 1933, as amended (the "New Notes"), and cash,
for the Existing Notes. Furthermore, the Company is soliciting
consents from holders of the Existing Notes to amendments (the
"Proposed Amendments") to certain provisions of the indenture
governing the Existing Notes, dated as of June 18, 1996,
pursuant to which the Existing Notes were issued (the
"Indenture"). Holders who tender their Existing Notes in the
exchange offer and consent solicitation will be deemed to have
given their consent to the Proposed Amendments to the Indenture.

The exchange offer and consent solicitation was originally
scheduled to expire at 5:00 p.m., Eastern time, on March 9,
2005. As of the close of business on March 9, 2005,
US$95,967,000 in aggregate principal amount of the Existing
Notes have been confirmed as tendered in exchange for New Notes
and cash, representing 98% of the outstanding aggregate
principal amount of Existing Notes.

The aggregate principal amount of Existing Notes tendered to
date satisfies the minimum condition of the exchange offer and
consent solicitation. The Company is extending the exchange
offer and consent solicitation to provide additional time to
satisfy certain other conditions to the closing of its overall
debt restructuring.

Questions regarding the exchange offer and consent solicitation
should be directed to:

Credit Suisse First Boston LLC
Dealer Manager And Global Solicitation Agent
Eleven Madison Avenue
New York, New York 10010-3629
Attention: Liability Management Group
Phones: (800) 820-1653
        (212) 325-2547

Non-U.S. holders outside the United States may contact:

Eurovest Global Securities, Inc.
Solicitation Agent, Non-U.S. Holders
Rua Sansao Alves dos Santos 102 - 6th floor
Sao Paulo, SP - 04571-090
Brazil
Phones: (55 11) 5505-3334
        (55 11) 3346-9400.

Requests for additional copies of the prospectus or other
materials related to the exchange offer and consent solicitation
should be directed to:

D.F. King & Co., Inc.,
Information Agent
48 Wall Street, 22nd floor
New York, New York 10005
Phones: (800) 290-6429
        (212) 269-5550.

CONTACT: NET Servicos de Comunicacao S.A.
         Rua Verbo Divino 1356
         Chacara Santo Antonio
         Sao Paulo, SP 04719-002
         Brazil
         Phone: 5511-5186-2000
         Web site: http://globocabo.globo.com


SANASA: Moody's Withdraws Issuer Ratings
----------------------------------------
Moody's America Latina Ltda. has withdrawn its B1 Global Local
Currency and Baa2.br Brazil National Scale Issuer Ratings on
Sociedade de Abastecimento de C gua e Saneamento S.A.
("Sanasa"). This action has been taken at the Company's request
and in accordance with the terms of the ratings contract.

Sociedade de Abastecimento de Cgua e Saneamento S/A is based in
Campinas, Sao Paulo. It provides water supply, treatment and
distribution, and wastewater collection and treatment services
to retail residential, commercial and industrial customers.



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

TELECOM: Debt Administrator Sells Stake in Intelsat
---------------------------------------------------
Defunct state operator Telecom's debt administrator, Telecom en
Liquidacion (Telecom in Liquidation), has sold its 1.5% stake in
international satellite operator Intelsat, reports Business News
Americas.

The operation, worth US$47 million, is part of the entity's
efforts to continue paying pensions owed to Telecom's former
employees.

Telecom bought 2.5 million shares in Intelsat in 1971. Intelsat
was created that year as an international public organization
designed to provide telecom satellite services as a wholesaler.
Telecom was the Colombian representative in the organization,
which was formed by 144 countries.

The sale of Telecom's shares in Intelsat follows the sale of the
Company's shares in Inmarsat, Telmex and Comcel, which generated
it over COP70 billion (US$30 million).

The former Telecom is now operated by a new state entity,
Colombia Telecomunicaciones, also known as Telecom.



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

ICE: EIS Study for Hydropower Project Gets Thumbs Down
------------------------------------------------------
State-owned power Company ICE's generation expansion plan
suffers a setback as the country's environment agency rejected
an environmental impact study (EIS) for the proposed 157MW
Pacuare hydroelectric project in the province of Cartago.

Business News Americas reveals that Setena, the country's
environment department, turned down the EIS because it failed to
outline the project's social and environmental impact on the
indigenous communities scattered in the area.

The hydroelectric facility, to be built at the Pacuare river in
Turrialba municipality, was set to begin operations in 2010.



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

EDESUR: Makes $2M Payment to Generators
---------------------------------------
State-owned distributor Edesur paid local generators DOP55.6
million (US$2mn) in January, according to a Business News
Americas report.

The country's electricity distributors have been struggling to
pay generators due to lack of resources. As a consequence,
generators are forced to take entire plants offline on nearly a
daily basis because they cannot access international credit to
purchase the necessary fuel.

The country's electricity deficit currently ranges between 7%
and 17%.

Edesur and fellow state-owned distributor Edenorte were handed
back to the government in 2003 by Spanish power Company Union
Fenosa, which had bought 50% of them in a 1999 privatization
sale. President Leonel Fernandez has hinted there could be an
international tender called this year to re-privatize Edesur and
Edenorte.



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

DYOLL INSURANCE: FSC Temporarily Takes Over Management
------------------------------------------------------
The Financial Services Commission (FSC) has assumed control of
the management of Dyoll Insurance Group by appointing Kenneth
Tomlinson as temporary manager, the Jamaica Gleaner reports.

FSC Executive Director Brian Wynter announced the appointment
Monday, saying: "The action of the Financial Services Commission
(FSC) to appoint a temporary manager for Dyoll Insurance Company
Limited comes against the background of the devastation wreaked
by Hurricane Ivan in the Cayman Islands, last September and the
high level of property and motor vehicle insurance claims that
have been levelled on companies securing properties in that
country."

Mr. Wynter further said that the "FSC assumed the role of
temporary manager of the Company in order to establish the true
position of the Company, address the matter of settlement to its
claimants and ensure that its policies will remain in force."

According to Mr. Wynter, Mr. Tomlinson's role includes, but is
not limited to:

- Continuing or discontinuing Dyoll's operations
- Stopping or limiting payments of its obligations
- Employing any necessary officers or other employees
- Executing any instrument in the name of the institution
- Initiating, defending and conducting, any action or
proceedings to which it may be party.

Mr. Wynter said that FSC was considering an offer from a local
Company "to purchase Dyoll's Jamaican [insurance] portfolio to
protect the policy holders."

Mr. Wynter sought to assure the public that the rest of the
insurance industry was sound.



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

GRUPO MEXICO: Railway Unit Prepays MXN348.9 Mln Debt to Inbursa
---------------------------------------------------------------
Feerocarril Mexicano (Ferromex), the railway unit of Mexican
copper mining Company Grupo Mexico SA, made a MXN348.9-million
($1=MXN11.0403) debt prepayment to Grupo Financiero Inbursa SA
on Tuesday.

Citing a filing with the Mexican Stock Exchange, Dow Jones
Newswires reports that the payment wasn't due until December
2007.

Ferromex said it used cash from operations to make the payment,
which "apart from reducing future financial cost of debt, gives
the Company even more certainty than it already had of meeting
its future commitments in timely fashion."

Ferromex plans to invest MXN1.15 billion this year for projects
that include the construction of intermodal terminals in the
northwestern city of Hermosillo and central city of Silao, and
to add another in the northeastern industrial hub of Monterrey.

Grupo Mexico is the world's third-largest copper producer.
Ferromex, a joint-venture with Union Pacific Corp. (UNP), is one
of Mexico's three main railways.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Web site: http://www.gmexico.com


MEXICANA/AEROMEXICO: Europeans Could Be Drawn to Bid
----------------------------------------------------
The approaching tenders for Cintra-owned airlines Aeromexico and
Mexicana could attract European and Asian bidders now that U.S.
firms are unlikely to make their move with the air transport
slump in their midst.

U.S.-based firms Delta and United were viewed as probable takers
when sale of the Mexican airlines was broached two years ago.
The September 11 attacks and the resulting downslide in the
country's air industry, however, sidetracked their expansion
plans.

Andres Conesa, Cintra's president, told local news source La
Jornada that Mexicana and Aeromexico are attractive investments
for foreign airlines because a stake will protect their existing
commercial alliances with the carriers.

Cintra expects to announce details of the new sales terms for
the airline in May or June.



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

COFAC: Reopening Possible Soon
------------------------------
Cooperativa Nacional de Ahorro y Credito (COFAC), Uruguay's
largest banking cooperative recently suspended due to its
insufficient capital position, is likely to be allowed to open
again soon, government officials suggest.

Business News Americas reports that the Central Bank of Uruguay
(BCU), which ordered the suspension, is currently reviewing the
proposal submitted by COFAC detailing its plan to strengthen
operations and raise the Company's equity base.

COFAC intends to boost its equity to at least US$30 million with
the help of bank associates and the Inter-American Development
Bank (IDB).

After meeting with COFAC executives, finance minister Danilo
Astori expressed optimism that the cooperative would begin
operations again.

"[Liquidation] has not been ruled out but we are working hard to
avoid it," deputy finance minister Mario Bergara said. We are
very optimistic and would say the probability of [liquidation]
is very low."



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

CANTV: CAF OKs $275M Financing
------------------------------
The Corporacion Andina de Fomento, an Andean development agency
known as CAF, has approved a US$275-million financing for
Venezuelan telecom operator CANTV. The financing will be
partially guaranteed by a group of international banks.

CANTV and CAF officials have yet to decide if the financing will
be in form of a loan, a line of credit or other means, a
spokeswoman for CAF said Wednesday, adding a final agreement is
expected in a month.

CANTV managed to remain profitable during Venezuela's severe
economic downturn of recent years, helped by broadband and
cellular phone sales. The telecommunications Company saw profit
of US$160 million in 2004, up from US$18 million the year
before, when the economy experienced a deep contraction.

CANTV is a leading Venezuelan telecommunications services
provider with approximately 3.1 million access lines in service,
3.1 million cellular subscribers and 363 thousand Internet
subscribers as of December 31, 2004. The Company's principal
strategic shareholder is a wholly owned subsidiary of Verizon
Communications Inc. with 28.5% of the capital stock. Other major
shareholders include the Venezuelan Government with 6.6% of the
capital stock (Class B Shares), employees, retirees and employee
trusts which own 7.1% (Class C Shares) and Telefonica de Espana,
S.A. with 6.9%. Public shareholders hold the remaining 50.9 % of
the capital stock.

CONTACT: Gregorio Tomassi, CFA
         CANTV Investor Relations
         Centro Nacional de Telecommunicaciones
         Avenida Libertador
         Caracas, Venezuela
         Phone: 011-58-212-500-1831
         Fax: 011-58-212-500-1828
         E-mail: invest@cantv.com.ve


PDVSA: Over 5,000 Contract Workers to Become Fulltime Employees
---------------------------------------------------------------
State oil firm Petroleos de Venezuela (PDVSA) will soon hire
5,281 contract workers as fulltime PDVSA employees, a move that
will bring the Company's total workforce to over 20,000, reports
Business News Americas.

"From now on they will become a part of the fixed payroll at
PDVSA, with full duties and responsibilities," said PDVSA
president and energy and oil minister, Rafael Ramirez.

Of those workers to be integrated in PDVSA's payroll, 487 will
be immediately awarded the benefit of a pension. Also, post-
mortem pensions will be awarded "in an act of justice to
surviving families," Ramirez added.


PDVSA: Needs New Investment to Remedy Production Woes
-----------------------------------------------------
PDVSA is in desperate need of foreign investments to counter the
steady decline in its own production and refining capacities.

Professor Pedro Palma, in a study published by the Union Radio
network, says that the Company's production has suffered since
the "oil stoppage" of 2002-2003 that resulted in the axing of
around 18,000 workers.

PDVSA's foreign operators have worked to compensate for the
production slump contributing a total of one million barrels of
oil daily (b/d). The foreign output is almost half of
Venezuela's estimated overall production of 2.6 million b/d.
This figure, in turn, barely grazes the 3 million b/d quota set
by OPEC.

Diminishing output has further emphasized the need for
multinational presence in PDVSA's operations, adds Mr. Palma.
However, attracting foreign interest has become more difficult
after the U.S. government's Overseas Private Investment
Corporation (OPIC) decided to deny insurance to US companies
doing business in the country.



                            ***********


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
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed
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