TCRLA_Public/050322.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

            Tuesday, March 22, 2005, Vol. 6, Issue 57

                            Headlines

A R G E N T I N A

ACINDAR: To Pay ARS0.536 Per Share Dividend
AGUAS ARGENTINAS: Fitch Withdraws Ratings
BAR & AR: Court Favors Creditor's Bankruptcy Petition
BAT S.A.: Liquidating Assets to Pay Debts
COOPERATIVA DE TRABAJO: Initiates Bankruptcy Proceedings

CREVANI E HIJOS: Court Orders Liquidation
ESEPE CONSTRUCTORA: Court Designates Trustee for Bankruptcy
HIDROELECTRICA PIEDRA: Fitch Withdraws International Ratings
HUMBERTO NICOLAS: Gets Green Light for Reorganization
LA PLATA CATERING: Gears for Reorganization

LAFSA: Workers Stage Strike
MARINA CLUB: Court Declares Company Bankrupt
MAT S.A.: Court Appoints Trustee for Reorganization
METROGAS: Report Of Independent Accountants
METROGAS: Fitch Withdraws Ratings

METROGAS: To Create Natural Gas Trading Unit
* Final Debt Offer Acceptance Rate At 76.15%


B E R M U D A

ALPHA SECURITIES: Ernest Morrison to Serve as Liquidator
ARIAS LIMITED: Claims Submission to End on April 8
CISCO: Proceeds With Voluntary Liquidation
INSURED VENTURES: Members Resolve to Wind-Up Operations


B R A Z I L

BEC: Privatization Process Kicks Off
BRASKEM: Details Protocol And Justification of Quimica Merger
BRASKEM: Board Approves Reverse Stock Split of ADS
CSN: Sued By CVRD To Stop Iron Ore Exports
EMBRATEL: Wins Legislative Branch Phone Tender

NET SERVICOS: Completes Exchange Offer
TELEMAR: Shelves Oi Internet Ad Campaign
USIMINAS: Concludes Tender For Cosipa Shares To Close Capital
XERIUM: S&P Assigns 'BB-' CCR, Senior Secured BLR


E C U A D O R

PETROECUADOR: Auca 51 Well Tests At 3,840 Barrels a Day


J A M A I C A

AIR JAMAICA: Suspends Flights Due to Maintenance Checks


M E X I C O

GRUPO MEXICO: Seeks Board Approval on Planned $450M Investment
GRUPO MEXICO: SPCC Shareholders to OK Reorganization Proposal
GRUPO TMM: Government Completes Audit of TFM 1997 Tax Returns
NII HOLDINGS: Brings Spectrum Position Average to 20MHz
TV AZTECA: Signs Distribution Deal With Echostar


P U E R T O   R I C O

DORAL FINANCIAL: Addresses Unusual Market Activity


S T .  L U C I A

* Gets US$22.568Mln CDB Loan for Infrastructure Development


V E N E Z U E L A

CADAFE: Strike Looms As Union Talks Collapse
CITGO: Four Companies Bid For Refineries
SINCOR: Statoil Ready For Sincor II Expansion

     -  -  -  -  -  -  -  -

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

ACINDAR: To Pay ARS0.536 Per Share Dividend
-------------------------------------------
In a filing late Friday to the local stock exchange, Argentine
steelmaker Acindar Industria Argentina de Aceros SA (ACIN.BA)
announced it will pay a dividend of ARS0.536 a share
($1=ARS2.9175), reports Dow Jones Newswires. Acindar, which has
613,402,815 shares in circulation, said the total payout will be
ARS378.886 million and will be made on March 30.

The Company joins petrochemical Company Solvay Indupa (INDU.BA),
Banco Macro Bansud (BSUD.BA) and fellow steelmaker Siderar
(ERAR.BA) in a small but growing list of Argentine companies
that are paying dividends again after the 2002 economic crisis.

Acindar posted a net profit of ARS545.8 million last year,
compared with a net profit of ARS599.9 million in 2003.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Web Site: http://www.acindar.ar.com


AGUAS ARGENTINAS: Fitch Withdraws Ratings
-----------------------------------------
Fitch Ratings has withdrawn the 'DD' international foreign
currency and local currency ratings of Aguas Argentinas S.A.,
consistent with Fitch's policies. Fitch will no longer provide
ratings or analytical coverage of the issuer.

Aguas Argentinas is the sole provider of potable water and
sewerage services in the City of Buenos Aires and 17 surrounding
districts. Aguas is 35%-owned and operated by Suez Lyonnaise des
Eaux S.A. (Lyonnaise), a leading French water services and
construction group.

CONTACT: Ms. Cecilia Minguillon
         Phone: +5411-5235-8123
         Buenos Aires

         Mr. Jason Todd
         Phone: +1-312-368-3217
         Chicago

         MEDIA RELATIONS
         Mr. Brian Bertsch
         Phone: +1-212-908-0549
         New York


BAR & AR: Court Favors Creditor's Bankruptcy Petition
-----------------------------------------------------
Mr. Oscar Caceres successfully sought the bankruptcy of Bar & Ar
S.R.L. after Court No. 4 of Buenos Aires' civil and commercial
tribunal declared the Company "Quiebra," reports La Nacion.

As such, the local construction firm will now start the
bankruptcy process with Ms. Maria Porolli as trustee. Creditors
of the Company must submit proofs of their claim to the trustee
before May 2 for authentication. Failure to do so will mean
disqualification from the payments that will be made after the
Company's assets are liquidated.

The creditor sought the Company's bankruptcy after the latter
failed to pay debts amounting to US$77,949.93.

The city's Clerk No. 7 assists the court on the case that will
close with the liquidation of all of its assets.

CONTACT: Bar & Ar S.R.L.
         Jorge Newbery 3882
         Buenos Aires

         Ms. Maria Porolli, Trustee
         Avenida Caseros 4126
         Buenos Aires


BAT S.A.: Liquidating Assets to Pay Debts
-----------------------------------------
Bat S.A. will begin liquidating its assets following the
bankruptcy pronouncement issued by Court No. 8 of Buenos Aires'
civil and commercial tribunal, Infobae reports.

The ruling places the Company under the supervision of court-
appointed trustee Maria Josefa Messina. The trustee will verify
creditors' proofs of claims until April 12.

The bankruptcy process will end with the sale of the Company's
assets. Proceeds from the sale will be used to repay its debts.

CONTACT: Bat S.A.
         Avda Colon 5529
         Mar del Plata

         Mr. Maria Josefa Messina, Trustee
         San Martin 4141
         Mar del Plata


COOPERATIVA DE TRABAJO: Initiates Bankruptcy Proceedings
--------------------------------------------------------
Court No. 1 of Buenos Aires' civil and commercial tribunal
declared Cooperativa de Trabajo Rango Ltda. "Quiebra," reports
Infobae.

Mr. Gonzalo Cueva, who has been appointed as trustee, will
verify creditors' claims until May 4 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will be submitted in court on June 16,
followed by the general report on July 28.

The city's Clerk No. 1 assists the court on the case that will
close with the liquidation of the Company's assets to repay
creditors.

CONTACT: Mr. Gonzalo Cueva, Trustee
         Terrero 1752
         Buenos Aires


CREVANI E HIJOS: Court Orders Liquidation
-----------------------------------------
Crevani e Hijos S.A.C.I. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court No. 1 of
Lomas de Zamora's 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
selected Mr. Raul Alfredo Rodriguez to serve as trustee on this
case.

CONTACT: Crevani e Hijos S.A.C.I.
         Kloosterman 2152
         Lanus

         Mr. Raul Alfredo Rodriguez, Trustee
         Suarez 945
         Temperley


ESEPE CONSTRUCTORA: Court Designates Trustee for Bankruptcy
-----------------------------------------------------------
Buenos Aires accountant Jorge Roberto Dolinko was assigned
trustee for the liquidation of local Company Esepe Constructora
S.R.L., relates Infobae.

Mr. Dolinko will verify creditors' claims until May 9, the
source adds. After that, he will prepare the individual reports
that are to be submitted in court on July 6. The general report
submission should follow on September 7.

The city's Court No. 24 holds jurisdiction over the Company's
case. Clerk No. 14 assists the court with the proceedings.

CONTACT: Mr. Jorge Roberto Dolinko, Trustee
         Tucuman 1657
         Buenos Aires


HIDROELECTRICA PIEDRA: Fitch Withdraws International Ratings
------------------------------------------------------------
Fitch Ratings has withdrawn the 'DD' international foreign
currency and local currency ratings of Hidroelectrica Piedra del
Aguila S.A. (HPDA), consistent with Fitch's policies, as the
defaulted securities were restructured and not rated by Fitch.
Fitch will no longer provide international analytical service or
coverage of this issuer but will continue to follow the Company
on the national scale.

HPDA is the largest private hydroelectric generator in
Argentina. The Company holds a concession until Dec. 29, 2023
from the Argentine government to operate its hydroelectric
facility and for the generation and sale of electricity. HPDA is
located approximately 1,200 km southwest of Buenos Aires on the
Limay River.

CONTACT: Ms. Cecilia Minguillon
         Phone: +5411-5235-8123
         Buenos Aires
         Mr. Jason Todd
         Phone: +1-312-368-3217
         Chicago

         MEDIA RELATIONS
         Mr. Brian Bertsch
         Phone: +1-212-908-0549
         New York


HUMBERTO NICOLAS: Gets Green Light for Reorganization
-----------------------------------------------------
Court No. 3 of Buenos Aires' civil and commercial tribunal
approved the "Concurso Preventivo" petition filed by Humberto
Nicolas Fontana SAC, reports local news source La Nacion.

The electric appliances shop, which listed assets of
US$1,882,500.64 and liabilities of US$2,596,946.60, will undergo
a reorganization process with Mr. Fernando Marziale as trustee.

Mr. Marziale will verify creditors' proofs of claim until May
23. Verifications are done to ascertain the nature and amount of
the Company's debts. The trustee will also prepare the
individual and general reports on the case.

Creditors of the Company will vote to ratify the completed
settlement plan during the informative assembly scheduled on
March 13 next year.

The city's Clerk No. 6 assists the court on the case.

CONTACT: Humberto Nicolas Fontana SAC
         Avenida Juan Bautista Alberdi 5845
         Buenos Aires


LA PLATA CATERING: Gears for Reorganization
-------------------------------------------
Court No. 12 of Mar del Plata's civil and commercial tribunal
issued a resolution opening the reorganization of La Plata
Catering S.A. The pronouncement authorizes the Company to begin
drafting a settlement proposal with its creditors in order to
avoid liquidation. The reorganization further 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.

Local accounting firm "Rosana Botin, Gabriel G. Veiras y
Fernando Enrique Tagliaferro" will serve as trustee during the
course of the reorganization. The firm will be validating
creditors' proofs of claims until April 8. The results of the
verification will be presented in court as individual reports on
May 20.

CONTACT: La Plata Catering S.A.
         San Martin 2563
         Mar del Plata

         "Rosana Botin, Gabriel G. Veiras y
         Fernando Enrique Tagliaferro"
         Trustee
         Corrientes 1845
         Mar del Plata


LAFSA: Workers Stage Strike
---------------------------
In protest against the entry of Chilean airline Lan Chile into
the local market, employees of state-owned airline Lafsa led a
strike Thursday, bringing activities at the Buenos Aires airport
to a standstill, reports Xinhuanet. Lan Chile is set to acquire
Lafsa after an agreement was signed between the Chilean airline
and the Argentine government.

The strike, which is believed to have arisen from workers'
concerns about job security, delayed the landing or take-off of
planes on several national and international flights. During the
strike, only a plane from Uruguay managed to land. Apart from
the strike, some workers of six aviation trade unions also
demonstrated outside the airport, blocking road traffic.

Ricardo Cirielli, undersecretary for Commercial Air
Transportation, however said Lan Chile can guarantee the
stability of all workers for three years.

In accordance with the agreement between Lan Chile and the
Argentine government, the branch of the Chilean firm in
Argentina will be called Lan Argentina, which has promised to
hire all 870 Lafsa employees.


MARINA CLUB: Court Declares Company Bankrupt
--------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal
declared local Company Marina Club S.A. "Quiebra", relates local
daily La Nacion. The court approved the bankruptcy petition
filed by Millicom Argentina S.A., whom the Company failed to pay
debts amounting to US$953.26.

The tour company will undergo the bankruptcy process with Ms.
Maria Guido as trustee. Creditors are required to present proofs
of their claims to the trustee for verification before May 18.

Creditors who fail to have their claims authenticated by the
said date will be disqualified from the payments that will be
made after the Company's assets are liquidated.

Clerk No. 11 assists the court on the case.

CONTACT: Marina Club S.A.
         Avenida Forest 1519
         Buenos Aires

         Ms. Maria Guido, Trustee
         Junin 55
         Buenos Aires


MAT S.A.: Court Appoints Trustee for Reorganization
---------------------------------------------------
Mat S.A., a Company operating in La Plata, is ready to start its
reorganization after Court No. 2 of the city's civil and
commercial tribunal appointed Mr. Juan Carlos Gavilan to
supervise the proceedings as trustee.

Infobae states that Mr. Gavilan will verify creditors claims
until April 15. Afterwards, he will present these claims as
individual reports for final review by the court on June 15.

The trustee will also provide the court with a general report
pertaining to the reorganization 30 days after the submission of
the individual reports.

The court has scheduled the informative assembly on August 31.

CONTACT: Mat S.A.
         Calle 48 Nro. 971
         La Plata

         Mr. Juan Carlos Gavilan, Trustee
         Calle 48 Nro. 726
         La Plata


METROGAS: Report Of Independent Accountants
-------------------------------------------
Price Waterhouse & Co. S.R.L., independent accountants for
MetroGAS S.A., released its opinion of the Company's financial
statements as of December 31, 2004 through the following letter
dated March 4, 2005.

            REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders, President and Directors of
MetroGAS S.A.

We have audited the acCompanying balance sheet of MetroGAS S.A.
as of December 31, 2004 and 2003 and the related statements of
operations, of changes in shareholders' equity and of cash flows
for each of the two years ended December 31, 2004, and the
complementary notes 1 to 15 and exhibits A, B, C, E, F, G and H.
The preparation and issuance of these financial statements are
the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audits in accordance with generally accepted
auditing standards in Argentina. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statements
presentation. We believe that our audits provide a reasonable
basis for our opinion.

The Company has prepared the financial statements applying
valuation and disclosure criteria established by the Comision
Nacional de Valores (Argentine National Securities Commission
"CNV") which, as explained in Note 3. to the financial
statements, differ in certain respects from applicable
accounting standards in effect in the Autonomous City of Buenos
Aires. The main effects derive from:

i) the treatment of assets and liabilities arising from the
application of the deferred tax method,

ii) the application of disclosure criteria for related parties
transactions established by Technical Pronouncement No. 21, and

iii) the recognition of the effects of inflation on the
financial statements as of September 30, 2003. The effect on the
financial statements of the different valuation criteria
mentioned in point i) has been included in Note 3.2.e), while
the effects described in points ii) and iii) have not been
quantified by the Company. The application of the CNV
resolutions represents a departure from generally accepted
accounted principles in Argentina.

The changes in Argentine economic conditions and the amendments
to the License under which the Company operates made by the
National Government mentioned in Note 2. to the financial
statements, mainly the suspension of the original tariff
updating regime, have affected the Company's economic and
financial equation, generating uncertainty as to the future
development of its business and the Company's ability to comply
with the financial obligations assumed. Management is in the
process of renegotiating certain terms of the License with the
National Government to counteract the negative impact caused by
the above mentioned circumstances and negotiating the contract
terms with its main suppliers to adapt them to the new economic
and regulatory context in which it operates.

As explained in Note 9. to the financial statements, the effects
of the devaluation of the Argentine peso on the Company's
foreign currency financial debt as well as the circumstances
mentioned in point 4. have resulted in the Company failing to
pay principal and interest corresponding to financial
obligations since March 25, 2002. Based on the contractual
terms, as at December 31, 2004 the financial liabilities were
overdue and claimable. MetroGAS's management is analyzing with
its financial advisors a comprehensive restructuring plan. At
the date of these financial statements, the final outcome of
this process cannot be determined.

The Company has prepared its projections to determine the
recoverable value of its non-current assets, based on forecasts
of the outcome of the renegotiation processes mentioned in
points 4. and 5. Due to their uncertain outcome, we are not in a
position to determine whether the premises used by management to
prepare those projections will take place in the future and,
consequently, whether the recoverable value of non-current
assets exceeds their respective net carrying values.

The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. The
uncertainties mentioned in points 4., 5. and 6 raise substantial
doubt about the Company's ability to continue as a going
concern. The accompanying financial statements do not include
any adjustments or reclassifications that might result from the
outcome of these uncertainties.

In our opinion, except for the departure from professional
accounting standards discussed in point 3. above and subject to
the effect of possible adjustments and reclassifications on the
financial statements that might be required for the resolution
of the situations described in points 4., 5., 6. and 7., the
financial statements of MetroGAS S.A. present fairly, in all
material respects, its financial position at December 31, 2004
and 2003, and the results of its operations and its cash flows
for each of the two years ended December 31, 2004, in accordance
with accounting principles generally accepted in Argentina.

The accompanying financial statements are presented on the basis
of accounting principles generally accepted in Argentina, which
differ from the accounting principles generally accepted in
other countries, including the United States of America.

Buenos Aires, Argentina
March 4, 2005

PRICE WATERHOUSE & CO. S.R.L.
By (Partner)
Miguel A. Urus

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

CONTACT: MetroGas S.A.
         Gregorio Araoz de Lamadrid 1360
         Buenos Aires, 1360
         Argentina
         Phone: 5411-4309-1010


METROGAS: Fitch Withdraws Ratings
---------------------------------
Fitch Ratings has withdrawn the 'DD' international foreign
currency and local currency ratings of MetroGas S.A., consistent
with Fitch's policies. Fitch will no longer provide ratings or
analytical coverage of the issuer.

About MetroGas

MetroGas is the largest of nine Argentine natural gas
distribution companies. MetroGas has an exclusive license to
serve the federal district and 11 municipalities in the southern
and eastern sections of greater Buenos Aires.

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


METROGAS: To Create Natural Gas Trading Unit
--------------------------------------------
Argentine natural gas distributor Metrogas (MGS) said in a
filing with the Buenos Aires Stock Exchange Friday that it is
planning to form a unit to trade and transport natural gas,
relates Dow Jones Newswires.

Metrogas said the new Company "will operate as an agent in the
Electronic Gas Market". Last week, Argentina's stock market
launched a week-long registration period for the new natural gas
electronic trading market, or MEGSA by its initials in Spanish.
The market is expected to begin operating later this month.

The natural gas distributor said it will control 95% of the new
unit.

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


* Final Debt Offer Acceptance Rate At 76.15%
--------------------------------------------
Argentine Economy Ministry officials announced Friday that the
final acceptance rate for its record US$103 billion debt
restructuring is 76.15%, a fraction higher than the 76.07%
preliminary estimate that Economy Minister Roberto Lavagna
released on March 3, reports Dow Jones Newswires.

The officials said that Argentina's US$103 billion debt has been
converted into US$35.251 billion in restructured debt. Of that
amount, US$15 billion will be issued in par bonds, US$11.909
billion in discount bonds and US$8.342 billion in quasi-par
bonds. Argentina will issue the new securities on April 1.

Argentina's six-week exchange offer period, which closed on Feb.
25, sought to offer bondholders an estimated 30 cents on the
dollar.

The 76% acceptance rate for the debt swap is considered a
success by both the market and the International Monetary Fund,
with whom Argentina is re-starting a US$13 billion program that
was suspended last year, pending the resolution of the debt
exchange.



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

ALPHA SECURITIES: Ernest Morrison to Serve as Liquidator
--------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                             and

            IN THE MATTER OF Alpha Securities Ltd.

By Written Resolutions of the Sole Member of Alpha Securities
Ltd., on March 2, 2005, the following resolutions were duly
passed:

RESOLVED that:

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

(2) Mr. Ernest A. Morrison, of "Milner House", 18 Parliament
Street, Hamilton, Bermuda be and is hereby appointed Liquidator
for the purposes of winding-up, such appointment to be effective
forthwith."

The Liquidator informs that:

- Creditors of Alpha Securities Ltd. are required on or before
April 4, 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 Alpha Securities
Ltd. will be held at the offices of Cox Hallett Wilkinson at
Milner House, 18 Parliament Street, Hamilton, Bermuda, on the
22nd day of April, 2005 at 10 o'clock in the forenoon 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: Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda


ARIAS LIMITED: Claims Submission to End on April 8
--------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                         and

     IN THE MATTER OF Arias Limited (In Liquidation)
            IN MEMBER'S VOLUNTARY LIQUIDATION

Take notice that the Member of Arias Limited (In Liquidation),
on March 16, 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 Mr. Nigel J.S. Chatterjee and Mr. Peter C.B. Mitchell of
PricewaterhouseCoopers be appointed as Joint Liquidators for the
purposes of such winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- Creditors of Arias Limited (In Liquidation), which is being
voluntarily wound up, are required on or before April 8, 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 solicitors (if any) at
PricewaterhouseCoopers, P.O. Box HM 1171, Hamilton, HM EX,
Bermuda, being the Joint Liquidator of the said Company, and if
so required by notice in writing from the said Liquidators
personally, or by their solicitors, 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.

CONTACT: Mr. Nigel J.S. Chatterjee
         Mr. Peter C.B. Mitchell
         Joint-Liquidators
         PricewaterhouseCoopers
         Dorchester House, 7 Church Street
         Hamilton, Bermuda


CISCO: Proceeds With Voluntary Liquidation
------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                          And

  IN THE MATTER OF: Cisco Systems (Bermuda) IP Holdings Ltd.

At a Special General Meeting of the Members of Cisco Systems
(Bermuda) IP Holdings Ltd., duly convened and held at the
offices of Baker & McKenzie, Chemin Des Vergers 4, 1208, Geneva,
Switzerland on March 14, 2005 the following RESOLUTIONS WERE
duly passed:

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

2. THAT John C McKenna of Reid Hall, 3 Reid Street, Hamilton be
and hereby is appointed the Liquidator of the Company for the
purposes of such winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- the Creditors of Cisco Systems (Bermuda) IP Holdings Ltd.,
which is being voluntarily wound up, are required on or before
April 1, 2005 to send their full names and addresses and the
particulars of their debts or claims, and the names and
addresses of their lawyers (if any) Ernst & Young, Reid Hall, 3
Reid Street, Hamilton 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 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.

CONTACT: Mr. John C McKenna, Liquidator
         Reid Hall, 3 Reid Street
         Hamilton, Bermuda


INSURED VENTURES: Members Resolve to Wind-Up Operations
-------------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                           and

         IN THE MATTER OF Insured Ventures, Limited

By Written Resolutions of the Sole Member of Insured Ventures,
Limited, on March 7, 2005, the following resolutions were duly
passed:

RESOLVED that:

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

(2) Mr. Ernest A. Morrison, of "Milner House", 18 Parliament
Street, Hamilton, Bermuda be and is hereby appointed Liquidator
for the purposes of winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- Creditors of the Company are required on or before April 4,
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 Insured
Ventures, Limited will be held at the offices of Cox Hallett
Wilkinson at Milner House, 18 Parliament Street, Hamilton,
Bermuda, on the 21st day of April, 2005 at 10 o'clock in the
forenoon 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: Insured Ventures, Limited
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda

         Mr. Ernest A. Morrison, Liquidator
         Milner House
         18 Parliament Street
         Hamilton HM 12
         Bermuda



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

BEC: Privatization Process Kicks Off
------------------------------------
The Brazilian central bank said in a statement that it has
initiated Friday the privatization process of the Caera state
bank Banco do Estado do Ceara (BEC), reveals Business News
Americas.

According to the tender rules, which are available in the
central bank's website (www.bcb.gov.br) and BEC's website
(www.bec.com.br), both local and foreign banks can take part in
the process, but public administrators or state pensions
entities cannot.

Interested parties are given until April 24, 2005 at 16:00hrs to
submit the necessary documentation to participate in the tender.


BRASKEM: Details Protocol And Justification of Quimica Merger
-------------------------------------------------------------
                PROTOCOL AND JUSTIFICATION OF
THE MERGER OF ODEBRECHT QUIMICA S.A. INTO BRASKEM S.A.

                       By and between

BRASKEM S.A., a corporation headquartered at Rua Eteno, no.
1561, Municipality of Camacari, State of Bahia, enrolled with
the Brazilian Taxpayers' Registry for Legal Entities (CNPJ)
under No. 42.150.391/0001-70, herein represented in the form of
its Bylaws, hereinafter denominated simply as the "SURVIVING
COMPANY";

                             and

ODEBRECHT QUIMICA S.A., a corporation headquartered at Rua
Hidrogenio, no. 3342, room 01, Municipality of Camacari, State
of Bahia, enrolled with the Brazilian Taxpayers' Registry for
Legal Entities (CNPJ) under No. 57.015.018/0001-84, herein
represented in the form of its Bylaws, hereinafter denominated
simply as the "MERGED COMPANY".

The SURVIVING COMPANY and the MERGED COMPANY are herein jointly
denominated simply as the "PARTIES", with the purpose of
conducting a merger into an existing Company, according to
Articles 224, 225 and 264 of Brazilian Law No. 6.404 of December
15, 1976,

Whereas:

(i) the SURVIVING COMPANY holds 12,257,954 (twelve million, two
hundred and fifty seven thousand, nine hundred and fifty four)
common shares and 514,322 (five hundred and fourteen thousand,
three hundred and twenty two) preferred shares, representing
100% of total capital of the MERGED COMPANY;

(ii) the merger transaction of the MERGED COMPANY into the
SURVIVING COMPANY will attain additional synergies for the
PARTIES, the simplification of the actual Company's corporate
structure, by means of consolidation of the operations of the
PARTIES into one single Company and the subsequent reduction in
financial and operating costs and more efficient operations of
the and;

(iii) that the accounting valuation report of the shareholders'
equity of the SURVIVING COMPANY prepared and submitted by the
experts appointed by the management of the PARTIES, is in
accordance with applicable laws and regulations and with the
merger transaction discussed in this Merger Protocol and
Justification.

The Boards of Directors of the PARTIES hereby propose the merger
of the MERGED COMPANY into the SURVIVING COMPANY, through this
Merger Protocol and Justification ("Protocol and
Justification"), the purpose of which is set forth, in
accordance with Articles 224 and 225 of Brazilian Law No. 6.404
of December 15, 1976 and with the Brazilian Securities Exchange
Commission (CVM) Instruction No. 319 of December 3, 1999, and
subject to that provided in item 6.1 in the following terms and
conditions regarding the merger:

1. BASIS FOR THE MERGER OPERATION

1.1. The SURVIVING COMPANY will take over the MERGED COMPANY,
and the MERGED Company's shareholders' equity will migrate to
the SURVIVING COMPANY, who will be its legal successor in all
respects, in accordance with the law (" SURVIVING COMPANY ").

1.2. The appraisal reports on the MERGED COMPANY 's for the
purpose of the SURVIVING COMPANY 's accounting entries have been
prepared the book value assessed by the specialized firm
indicated in item 2.1 below, based on the criteria set forth in
Brazilian Law No. 6.404/76 of December 15, 1976, regarding the
preparation of financial statements.

1.3. The balance of the credit and debit accounts of the MERGED
COMPANY will be entered into the SURVIVING COMPANY 's books,
with the necessary adjustments.

1.4. The assets, rights and obligations of the MERGED COMPANY
which make up its shareholders' equity to be transferred to the
SURVIVING COMPANY are those described in detail in the valuation
report, at book value.

1.5. The management of the SURVIVING COMPANY will perform all
acts necessary for the implementation of the Merger, and will
pay all the costs and expenses arising from such implementation.

1.6. The MERGED COMPANY will be dissolved.

2. MERGER VALUATIONS AND BASE DATE

2.1. The appointment of PricewaterhouseCoopers Auditores
Independentes, a specialized firm, established in the City of
Sao Paulo, at Av. Francisco Matarazzo, no. 1400, from the 7th
through the 11th and the 13th through the 20th Floors, Torino
Tower, with a branch located in the City of Salvador, at Rua
Miguel Calmon no. 555, 9th Floor, registered with the Regional
Accounting Council of the State of Bahia under no. CRC
2SP000160/O-5 "F" BA and enrolled with the Brazilian Taxpayers'
Registry for Legal Entities of the Ministry of Finance under No.
61.562.112/0004-73, and whose Articles of Incorporation are
registered with the 4o. Cartorio de Registro de Titulos e
Documentos de Sao Paulo (4th Register of Deeds and Documents of
Sao Paulo), State of Sao Paulo, on September 17, 1956, and
further amendments of which are filed with the 2o. Cartorio de
Registro de Titulos e Documentos de Sao Paulo (2nd Register of
Deeds and Documents of Sao Paulo), SP, which was recorded on
microfilm under 76.218, on January 22, represented by its
partner Mr. Marco Aurelio de Castro e Melo registered with the
Regional Accounting Council of the State of Bahia under no. CRC
1SP153070/O-3 "S"BA, who is responsible for the preparation of
the accounting valuation report of the shareholders' equity of
the MERGED COMPANY to be transferred to the SURVIVING COMPANY
("Accounting Valuation Report") will be subject to ratification
at the Extraordinary Shareholder's Meetings of the SURVIVING
COMPANY and the MERGED COMPANY, in accordance with the
provisions of Art. 227, Paragraph 1 of Brazilian Law No. 6.404
of December 15, 1976.

2.2. PricewaterhouseCoopers Auditores Independentes is a Company
specialized in accounting valuations and has thus proceeded, at
the request of the management of the PARTIES, (a) to assess the
shareholders' equity of the MERGED COMPANY at book value on the
basis of the elements contained in its Balance Sheet calculated
on December 31, 2004 (" Merger Base Date "); (b) the preparation
of the Accounting Valuation Report of the MERGED COMPANY, which
is shown on Attachment A of this Protocol and Justification; and
the (c) preparation of the Financial Statements and the Balance
Sheet of the MERGED COMPAN Y and the SURVIVING COMPANY,
calculated on the Merger Base Date which comprise Attachment B
and C respectively and which are attached to this Protocol and
Justification, the values of which have been submitted for prior
review and approval of the shareholders of the PARTIES, in
compliance with the law.

3. TOTAL AMOUNT OF THE SHAREHOLDERS' EQUITY TO BE MERGED

3.1. According to the book value appraisal of the MERGED
COMPANY, the book value of the MERGED COMPANY 's shareholders'
equity to be transferred to the SURVIVING COMPANY is
R$1,340,749,987.88 (one billion, three hundred and forty
million, seven hundred and forty nine thousand, nine hundred and
eighty seven reais and eighty eight cents), as set forth in
Clause 4 below.

4. TREATMENT OF EQUITY VARIATIONS UNTIL THE MERGER DATE

4.1. The equity variations assessed as of the Merger Base Date
and the effective Merger shall be entered in the records of the
MERGED COMPANY; but nevertheless recognized by the SURVIVING
COMPANY according to the equity accounting method, in view of
the fact that the MERGED COMPANY is a wholly-owned subsidiary of
the MERGED COMPANY. Therefore, the balance sheet accounts of the
MERGED COMPAN Y shall be transferred to the books of the
SURVIVING COMPANY at their respective values on the effective
Merger date.

5. CAPITAL INCREASE AT THE SURVIVING COMPANY

5.1. For the purposes of the merger proposed by this Protocol
and Justification, the shares of SURVIVING COMPANY shall not be
assigned to the shareholders of the MERGED COMPANY, in view of
the fact that the SURVIVING COMPANY shall, on the date of the
merger, become the owner of all of the shares which are
representative of the capital stock of the MERGED COMPANY.
Therefore, all of the capital stock shares of the MERGED COMPANY
shall no longer exist, according to article 226, paragraph 1 of
Law 6.404, of December 15, 1976, and the necessary adjustments
and adaptations to the accounting records of INCORPORATOR shall
be made.

5.2. Given that provided for in item 5.1 above, there will be no
capital increase on the part of the INCORPORATOR arising from
the Merger.

6. SPECIAL CONDITIONS

6.1. The Merger transaction proposed in this Protocol and
Justification will be presented to the Fiscal Council and to the
Boards of Directors of the SURVIVING COMPANY, and submitted to
the PARTIES' Shareholders gathered in the Shareholders'
Meetings, in accordance with all legally mandated prior notice
provisions.

7. CONCLUSION

7.1. These are shareholders of the SURVIVING COMPANY and of the
MERGED COMPANY, the rules and procedures that, as provided by
law, have been prepared to govern this merger that the
respective Boards of Executive Officers believe will meet the
interests of the PARTIES.

Camacari
February 28, 2005.

Signed:

BRASKEM S.A.:
Mr. Paul Elie Altit
Executive Officer

Mr. Roberto Lopes Pontes Simoes
Executive Officer

ODEBRECHT QUIMICA S.A

Mr. Mauricio Roberto de Carvalho Ferro
Executive Officer

Mr. Bernardo Afonso de Almeida Gradin
Executive Officer

CONTACT: Braskem S.A.
         Av. Nacoes Unidas
         4777 Cep
         San Paulo, 05477-000
         Brazil
         Phone: 55-11-3443-9999

         Web site: http://www.braskem.com.br


BRASKEM: Board Approves Reverse Stock Split of ADS
--------------------------------------------------
On the fourteenth (14th) day of the month of March in the year
two thousand and five, 2:00 p.m. at the headquarters of the
Company at Avenida das Nacoes Unidas, no 4.777, CEP.05.477-000,
in the City and State of Sao Paulo, the five hundredth (500th)
Meeting of the Board of Directors of BRASKEM S.A was held, being
attended by the Board Members. Jose Carlos Grubisich Filho,
Chief Executive Officer, the Executive Officers Mauricio Roberto
de Carvalho Ferro and Paul Elie Altit, and the representative of
the Fiscal Council, Mr. Ismael Campos de Abreu and the Board
Secretary, Mr. Nelson Raso also attended. Board Member Pedro
Augusto Ribeiro Novis chaired the meeting, and Dr. Ana Patricia
Soares Nogueira was the secretary.

AGENDA:

1) Matters proposed for discussion:

The following resolutions were approved unanimously: 1) The
following PROPOSALS FOR DELIBERATION ("PDs") were approved after
the proper evaluation of their terms and of their appended
documentation, which had been previously forwarded by the Board
of Executive Officers for the acknowledgement of the members of
the Board of Directors, as provided in its Internal Statutes,
the counterparts whereof being duly filed at Company
headquarters:

A) PD.CA/BAK-03/2005 - Reverse stock split and the split of the
American Depositary Shares ("ADSs") , in order to obtain the
favorable opinion of the Board regarding the reverse stock split
and the split of the ADSs of the Company, as described in the
respective PD, and the subsequent amendment of article 4, first
paragraph of the Company's By-laws, purporting to reflect the
change in the number of shares resulting from the reverse split,
and to approve the inclusion of this topic in the Agenda of the
Extraordinary General Shareholder's Meeting to be held on March
31, 2005, at the same time as the Ordinary General Shareholders
Meeting, as per the convocation that was decided during the last
meeting of this Board, which was held on February 15, 2005;

B) PD.CA/BAK-04/2005 - Merger of Odebrecht Quimica S.A
("Odequi") into the Company, by voicing a favorable opinion by
this Board to the proposal to merge Odequi into the Company, and
to approve the subsequent inclusion of this topic in the agenda
of the Extraordinary General Shareholders Meeting referred to in
the previous item; II) Subjects of Company Interest: Nothing to
record; III) CLOSING OF THE MINUTES - there being nothing else
to discuss, these minutes were drafted up, which, after being
read, discussed and found to be in compliance, were signed by
all the attending Board Members, by the Chairman and by the
Secretary of the Meeting.

CONTACT: Braskem S.A.
         Av. Nacoes Unidas
         4777 Cep
         San Paulo, 05477-000
         Brazil
         Phone: 55-11-3443-9999

         Web site: http://www.braskem.com.br


CSN: Sued By CVRD To Stop Iron Ore Exports
------------------------------------------
Brazilian mining Company CVRD, the world's largest iron ore
producer and exporter, has filed suit against steelmaker
Companhia Siderurgica Nacional (CSN) to put a stop to its iron
ore exports, Business News Americas relates, citing a report by
local daily Folha de Sao Paulo.

According to the Folha report, CVRD sued CSN to stop exports
from the steelmaker's Casa de Pedra iron ore mine to an unnamed
Japanese firm. CVRD maintained it has preferential rights to the
mine's iron ore output as part of CVRD's 2001 divestment of a
stake in CSN. The agreement between CVRD and CSN stipulates iron
ore from the mine can only be used at CSN's own facilities.
CVRD, which has a contract to operate the mine for CSN, has the
right of first refusal to purchase any excess iron ore CSN does
not use in its steelmaking plants.

Rio de Janeiro-based CSN is a steel complex comprising
investments in infrastructure and logistics whose operations
include captive mines, an integrated steel mill, service
centers, ports and railways. With a total annual production
capacity of 5.7 million tons of crude steel and consolidated
gross revenues of BRL12.3 billion in 2004, CSN is also the only
tin-plate producer in Brazil and one of the five largest tin-
plate producers worldwide.

CONTACT: Mr. Marcos Leite Ferreira
         CSN - Investor Relations
         Phone: (55 11) 3049-7591
         E-mail: marcos.ferreira@csn.com.br

         Web site: http://www.csn.com.br/


EMBRATEL: Wins Legislative Branch Phone Tender
----------------------------------------------
Embratel is now responsible for the telephone system of the
Legislative Branch of Minas Gerais and for the modernization of
the associate equipment. In accordance with the contract, all
the Local, DDD and IDD calls of the Palacio da Inconfidencia
will be made through Embratel. The Company won the account
though a tender issued by the Legislative Branch.

The Legislative Branch is an important telephone user in the
state of Minas Gerais, and is now the main reference in terms of
cost cutting. The Palacio da Inconfidencia and its annexes will
have 2,000 new phone numbers supplied by Embratel. This new
system will bring savings of 50% in the public funds.

In addition to a significant drop in the Legislative's costs,
the House will be provided with a modern automated phone bill
management system, since Embratel offers local billing per
minute and delivers its bills on CD and on the Internet, which
enables the control of all its phone branches.

Embratel provides a telephone service with fully digital
technology, connecting the PABX exchanges of its customers
directly to Embratel's exchanges. This service is available to
the corporate market all over the country. Recently, Embratel
has taken up the telephone system of the Sao Paulo's Government
Palace as well.

Embratel offers a range of complete telecommunications solutions
to the market all over Brazil, including local, long distance
domestic and international telephone services, data, video and
internet transmission, and is present all over the country with
its satellite solutions. Embratel is the market leader in
revenues with  Long Distance, Domestic and International calls.

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

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


NET SERVICOS: Completes Exchange Offer
--------------------------------------
Net Servicos de Comunicacao SA (NETC) said Friday it has
completed an exchange of senior notes, paving the way for the
restructuring of BRL1.4 billion of overdue debts, reports Dow
Jones Newswires.

In a statement to the Sao Paulo stock exchange, the Brazilian
pay television firm, which received 99% acceptance for its
offer, said it will exchange US$76.6 million of new 7.0% senior-
secured notes due 2009 to replace its existing US$97.7 million
12.625% senior-guaranteed notes due 2004.

With the broader debt restructuring, Telefonos de Mexico SA de
CV (TMX), or Telmex, will become a minority shareholder in Net
through a partnership with the existing controller, Globo
Participacoes SA. The Mexican phone giant is planning to use
Net's customer base together with its other assets in Brazil,
which include long-distance phone Company Embratel Participacoes
SA (EMT), to offer a combined package of phone and Internet
services.

CONTACT: Net Servicos de Comunicacao S.A.
         Investor Relations Team
         Mr. Marcio Minoru and/or Mr. Rodrigo Alves
         E-mail: ri@netservicos.com.br
         Phone: 5511 51862811


TELEMAR: Shelves Oi Internet Ad Campaign
----------------------------------------
In compliance with an order by Brazil's advertising regulator
Conar, Telemar has suspended its advertising campaign promising
discounts for early subscribers to its Oi Internet dial-up
service, reports Business News Americas, quoting a Telemar
spokesperson. The Conar order stemmed from a complaint by rival
dial-up service provider iG, which claimed that the Telemar ad
campaign is "false".

Late last month, Telemar launched the free dial-up service,
offering a 31% refund of connection costs for the first 500,000
subscribers. But earlier this month, telecoms regulator Anatel
prohibited Telemar from including the 31% discounts in its
subscribers' telephone bills, saying internet access cannot be
part of the normal telephone service.

However, the Telemar spokeperson said iG misinterpreted the
Anatel decision, as the Company only had to remove the 31%
discount from the telephone bills. "They said [Anatel wanted us]
to remove the whole campaign, and that is not true," she said.
"Our 31% credit offer continues to be valid, we will only stop
the ads", she added.

Telemar, however, will appeal the Conar decision, the
spokesperson said.

CONTACT: TNE - Investor Relations
         Mr. Roberto Terziani
         E-mail: invest@telemar.com.br
         Phone: 55 21 3131 1208

         Mr. Carlos Lacerda
         E-mail: carlosl@telemar.com.br
         Phone: 55 21 3131 1314
         Fax: 55 21 3131 1155


USIMINAS: Concludes Tender For Cosipa Shares To Close Capital
-------------------------------------------------------------
Usiminas concluded the public tender for acquisition of the
shares of Companhia Siderurgica Paulista, (Cosipa ), which were
in the hands of minority shareholders. The transaction was led
by Banco Itau BBA.

The purpose of the transaction was the de-listing of the
publicly-listed Company, which will cease to trade its shares on
the Bovespa, the Sao Paulo Stock Exchange, after approval by the
Brazilian Securities and Exchange Commission, (CVM), in the
terms of existing law. Before the tender, Usiminas already held
approximately 93% of the total capital of Cosipa.

During the auction, Usiminas acquired 197.3 million shares of
Cosipa, representing 79% of the outstanding shares, at the price
of R$ 1.24 per share (including TR and interest). The financial
liquidation is scheduled for March 23. Additionally, soon after
the offering tender, in a special auction at Bovespa, Usiminas
acquired 34.4 million shares from Fundacao Cosipa de Seguridade
Social - FEMCO - after which it became owner of 98.7% of
Cosipa's total capital.

For Usiminas, the main benefits are the increase of integration
with Cosipa and positioning of the Company as the marketing
vehicle of the Usiminas System. "We will be more agile to make
decisions and can increase integration between the two
companies," said Usiminas CEO, Rinaldo Campos Soares.

Cosipa, a flat, non-coated steel maker (slab, heavy plate, hot
and cold rolled products)  installed in Cubatao, Sao Paulo was
acquired by Usiminas in 1993. Since then, the parent Company has
invested heavily in technology updating and production capacity
increases. In the last ten years, approximately US$ 1.2 billion
were invested in the installations.

Usiminas and Cosipa are the two main companies in the Usiminas
System, the largest steel making complex in Latin America, with
an installed capacity of around 9.5 million tons of flat steel
per annum. The leading Company is Usiminas, which controls or
retains shareholder participation in service, distribution,
logistics and autoparts companies. It also has shareholdings in
Siderar, the largest flat steel maker in Argentina and in Sidor,
the main steel Company in Venezuela. In 2004, the Usiminas
System accounted for a net income of more than R$3 billion and
net sales of R$12.2 billion.

CONTACT: Mr. Bruno Seno
         Phone: +55 (31) 3499-8710
         E-mail: brunofusaro@usiminas.com.br


XERIUM: S&P Assigns 'BB-' CCR, Senior Secured BLR
-------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Xerium Technologies Inc. (Xerium). At the same
time, we assigned a 'BB-' rating and '4' recovery rating to the
Company's proposed $650 million seven-year first-lien senior
secured bank facility and to the $100 million revolving credit
facility consisting of a $50 million six-and-a-half year tranche
and a $50 million 364-day tranche. The recovery rating indicates
the expectation of a marginal recovery of principal (25%-50%) in
the event of a payment default. The outlook is stable.

"We expect Xerium to improve cost structure as a result of its
restructuring program, to use excess cash flow for judicious
dividend payments, and to pay down debt," said Standard & Poor's
credit analyst Paul Kuria. "Upside potential is limited by fixed
cash demands relative to cash flow, while downside potential is
limited by a good track record of stable performance despite
sales concentration in an industry with fairly volatile product
price swings."

Westborough, Mass.-based Xerium supplies consumables used in
paper-making machines by the paper industry. The Company is
currently majority-owned by a private equity investor, Apax
Europe IV GP L.P. and its affiliates, which together hold about
73% of common stock of Xerium X.A., the current parent of
Xerium. The proposed credit facility is contingent on an initial
public offering of equity expected in April 2005, which is
likely to reduce the holding of current ownership by about half.

Xerium operates in 15 countries, even though Xerium's products
serve only niche applications in the global paper industry.
About 40% of revenue is from North America, 36% Europe, 13%
Asia, and the balance from other regions.

At closing the revolving credit facility is expected to be
undrawn, but one of the two $50 million tranches is expected to
be used for seasonal swings in working capital requirements,
while the other $50 million revolving facility will be used for
near-term legal reorganization of its Brazilian subsidiaries.

CONTACT: Xerium Technologies, Inc.
         1 Technology Dr.
         Westborough Technology Park
         Westborough, MA 01581
         Phone: 508-616-9468
         Fax: 508-616-9487



=============
E C U A D O R
=============

PETROECUADOR: Auca 51 Well Tests At 3,840 Barrels a Day
-------------------------------------------------------
Ecuador's state oil firm Petroecuador said in a statement
Thursday that its Auca 51 well in the northeast part of Auca
field tested at a rate of 3,840 barrels a day (b/d) of 32.4 API
grade oil, report Business News Americas.

According to the statement, the well was drilled to 3,139m and
proven reserves are 18 million barrels (mb). The Company is
planning to drill four new wells from the same platform used for
the Auca 51 well. The well was tested in the Hollin formation,
but it also identified three other full reservoirs: T, U
inferior and Basal Tena, the statement said.

Petroecuador plans to increase Ecuador's oil output, which
currently stands at 205,593b/d, by awarding US$400 million worth
of services contracts on four oil and gas fields namely, Auca,
Shushufindi, Lago Agrio, and Culebra-Yulebra. The four fields
have estimated reserves of about 800mb. Bids are due April 1.



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

AIR JAMAICA: Suspends Flights Due to Maintenance Checks
-------------------------------------------------------
Ailing carrier Air Jamaica stumbles into another roadblock on
its road to financial recovery after it was forced to suspend
flights due to the intensified maintenance schedule set by the
Jamaica Civil Aviation Authority (JCAA).

Asia Intelligence Wire reported Saturday that Air Jamaica is
suspending flights from Jamaica to its Eastern Caribbean
destinations until April 16, 2005 in order to conduct
maintenance checks on several aircrafts. The four-week
suspension will affect flights between Jamaica and Grenada,
Jamaica and Barbados as well as Jamaica and St Lucia.

Air Jamaica was forced to suspend a significant portion of its
routes after JCAA cut the airline's regular maintenance schedule
from an eighteen-month cycle to just fifteen months. The revised
schedule follows the December 2004 instruction from the Federal
Aviation Authority.

In the midst of stricter JCAA mandates, opposition spokesman on
industry and commerce Karl Samuda stated that the suspensions
would be devastating to Jamaica's tourism industry. Mr. Samuda
claimed that the suspension will negatively impact the country's
efforts to create a first-class carrier.

Air Jamaica Acquisition Group (AJAG), headed by hotelier Gordon
"Butch" Stewart, relinquished its interest on Air Jamaica last
year after losing an estimated US$678 million during its 10-year
control of the airline.



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

GRUPO MEXICO: Seeks Board Approval on Planned $450M Investment
--------------------------------------------------------------
Mexico City-based copper producer Grupo Mexico SA will seek
approval from its board to invest US$450 million during the next
two years, reports Bloomberg.

A part of the investment will go towards the expansion of the
Company's Cananea mine in northwest Mexico, said Eduardo
Gonzalez, chief financial officer of Southern Peru Copper Corp.,
Grupo Mexico's biggest unit.

The planned expansion comes on expectations of higher copper
prices and continued demand from China and the U.S. that helped
boost prices to 15-year highs, said Marc Bonter, a precious
metals analyst with the London-based consulting firm CRU
International.

"We will be a significant provider of raw materials to the
Chinese and certainly to the U.S. at a low cost and a great
return," Gonzalez said.

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


GRUPO MEXICO: SPCC Shareholders to OK Reorganization Proposal
-------------------------------------------------------------
Shareholders of Grupo Mexico unit, Southern Peru Copper Corp.
(SPCC), will vote on March 28 on a proposal to reorganize the
Company's assets, Bloomberg reveals.

Under the plan, Southern Peru will buy Grupo Mexico's Minera
Mexico unit for about US$3 billion in stock and Grupo Mexico
will increase its stake in Southern Peru to 75% from 54%.

The changes will make Southern Peru the second-largest publicly
traded copper producer by market value and give the Company the
financial strength to pursue acquisitions, Gonzalez said.

"We're combining all the Latin American, low-cost, long- life
mining assets into one," said Gonzalez.

Gonzalez, the former CFO of Grupo Mexico, was appointed a
director of Southern Peru on March 11 as part of a
reorganization of the Company.

Following shareholder approval of the reorganization, Southern
Peru will have debt of US$1.3 billion, cash of US$900 million
and earnings before interest, taxes, interest and depreciation
of more than US$1 billion, Gonzalez said.


GRUPO TMM: Government Completes Audit of TFM 1997 Tax Returns
-------------------------------------------------------------
Grupo TMM, S.A. (TMM) (BMV: TMM A and NYSE: TMM) and Kansas City
Southern (KCS) (NYSE: KSU) announced that TFM, S.A. de C.V.
("TFM") was notified on March 16, 2005, by the Mexican Fiscal
Administration Service ("Servicio de Administracion Tributaria"
or the "SAT") that it had finished its audit of TFM's 1997 tax
returns. The SAT has not yet assessed any penalties or taxes
against TFM as a result of this audit.

In the notice, the SAT states that TFM did not supply
documentation complying with the requirements of the Mexican
fiscal code and, therefore, it was not entitled in its 1997 tax
returns to depreciate and deduct the concession title, the
railway equipment and other assets that were assets of TFM at
the time that it was privatized in 1997. TMM and KCS believe
that this determination is without merit, and that it is based
on the SAT seeking documents that the Mexican government itself
failed to produce and provide to TFM.

This action by the SAT follows the recent Mexican Appellate
Court decision that TFM is entitled to receive from the Mexican
Government a value added tax refund certificate, increased by
inflation and interest from 1997 until the date that the refund
certificate is delivered to TFM.

As part of the conclusion of the audit, the SAT confirmed its
provisional attachment of the original value added tax refund
certificate, which had been delivered to TFM on January 19,
2004.

TMM and KCS believe that the audit findings by the SAT and the
continued attachment of the original value added tax certificate
lack any legal merit, and they expect TFM to contest through
appropriate legal means the conclusions of this tax audit and
any penalties or taxes that may subsequently be assessed.

TMM and KCS continue their discussions with Mexican Government
authorities aimed at resolving the existing disputes between the
Mexican Government and TMM and KCS, including TFM's right to
receive a value added tax refund.

KCS has filed with the Securities and Exchange Commission and
sent to its shareholders a definitive proxy seeking shareholder
approval of the issuance of additional shares which would be
used to effect the purchase of the controlling interest in Grupo
Transportacion Ferroviaria Mexicana, S.A. de C.V., which owns
all of the shares of TFM entitled to full voting rights.

About Grupo TMM

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services.

About KCS

KCS is a transportation holding Company that has railroad
investments in the United States, Mexico and Panama. Its primary
domestic holdings include The Kansas City Southern Railway
Company (KCSR), founded in 1887 and The Texas Mexican Railway
Company, founded in 1885. Headquartered in Kansas City, Mo.,
KCSR serves customers in the central and south central regions
of the United States. KCS' rail holdings and investments,
including TFM, S.A. de C.V., are primary components of a NAFTA
Railway system that links the commercial and industrial centers
of the United States, Canada and Mexico.

CONTACT: GRUPO TMM
         Mr. Brad Skinner
         Investor Relations
         Phone: 011-525-55-629-8725
                203-247-2420
         E-mail: brad.skinner@tmm.com.mx

         KANSAS CITY SOUTHERN CONTACTS
         Media & Investors
         Mr. William H. Galligan
         Assistant Vice President Investor Relations
         Phone: 816-983-1551
         E-mail: william.h.galligan@kcsr.com

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


NII HOLDINGS: Brings Spectrum Position Average to 20MHz
-------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Friday that the
800MHz auction in Mexico has been completed and that the
licenses won in the auction have been transferred to the
Company. The successful conclusion of the 800MHz auction has
resulted in the Company acquiring an additional 15MHz per basic
service area, bringing NII Holdings' average spectrum position
to 20MHz nationwide, for less than $4 million in upfront cost.
The additional licenses cover approximately 43 million potential
subscribers, bringing NII Holdings' total licensed coverage in
Mexico to about 97 million subscribers.

"The conclusion of the 800MHz auction has been overwhelmingly
positive for NII Holdings, resulting in significantly more
spectrum at a small fraction of the cost than we originally
anticipated," said Steve Shindler, NII's Chairman and CEO. "For
a price tag of less than $4 million in up front cost, NII will
now have an average spectrum position of 20MHz nationwide,
providing the raw material to increase our covered footprint by
50%, raising our GDP coverage in Mexico to over 81%, and
positioning the Company to achieve the benefits of scale in our
largest and most profitable market."

The Company plans to use the additional licenses to
significantly expand its footprint to cover an additional 20
million subscribers, representing nearly a 50% increase in its
covered subscriber base to approximately 61 million. Phase one
of NII's 2005 expansion plan in Mexico includes the launch of
six new cities including Juarez, Reynosa, Matamoros, Saltillo,
Torreon and Aguascalientes, covering an additional 5.5 million
potential subscribers by year-end.

"Our phenomenal success in the 800MHz auction further
strengthens our commitment to the Mexican market, positioning
our Company to invest and rapidly expand its footprint, gaining
significant scale and momentum," said Peter Foyo, President of
Nextel Mexico. "Our expansion opportunity will not only allow
Nextel Mexico to tap into an additional 20 million potential
subscribers in the newly covered areas, the increase in coverage
will also position the Company to serve many more customers in
our existing markets, increasing the opportunity even further."

"As previously announced, a number of pending legal disputes
were preventing the transfer of the licenses that we won in the
800MHz auction," Shindler said. "Because of our high level of
success in the 800MHz auction, and along with other business
considerations, we will no longer be participating in the
currently suspended 1900MHz auction."

Last week, the Company announced guidance with regard to its
plan for 2005 of $450 million in operating income before
depreciation and amortization -- a 30% improvement over the
prior year, and 475,000 new subscribers -- a 25% year over year
increase to its subscriber base, provided certain assumptions
hold true. One of the primary assumptions was the receipt of the
800MHz licenses won in the Mexican spectrum auction in the first
half of the year. With the completion of the transfer of these
licenses, the Company is now extremely well positioned to meet
its targets and deliver very strong results for 2005.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held Company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connect(R), a digital two-way radio feature.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

CONTACTS: Investor Relations
          Mr. Tim Perrott
          Phone:(703) 390-5113
          E-mail: tim.perrott@nii.com

          Media Relations
          Mr. Claudia E. Restrepo
          Phone:(786) 251-7020
          E-mail: claudia.restrepo@nii.com

          Web site at http://www.nii.com


TV AZTECA: Signs Distribution Deal With Echostar
------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA) (Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world, announced Friday that the
Company has signed a distribution agreement in which EchoStar
Communication Corporation's DISH Network will make Azteca
America available nationwide via satellite TV.

The parties signed a contract through which the Azteca America
channel will be available as part of EchoStar's DISH Latino
programming packages and settled all prior disputes. EchoStar
has also obtained the right to air the 24-hour live transmission
of the Company's musical reality show, La Academia 4, on another
EchoStar channel.

"We are thrilled that viewers will now be able to turn from
seeing TV Azteca's channel 13 to our Network's programming,
allowing Azteca America to benefit from the tremendous
subscriber growth that EchoStar has established during the past
five years," said Luis J. Echarte, President and CEO of Azteca
America.

The Azteca America channel will be available by April 1, 2005.

About TV Azteca

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
U.S. Hispanic market, and Todito.com, an Internet portal for
North American Spanish speakers.

CONTACT: Investor Relations
         Mr. Bruno Rangel
         Phone: +011-5255-3099-9167
         E-mail: jrangelk@tvazteca.com.mx

         Media Relations
         Mr. Tristan Canales
         Phone: +011-5255- 1720-5786,
         E-mail: tcanales@tvazteca.com.mx

         Web site: http://www.tvazteca.com.mx



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

DORAL FINANCIAL: Addresses Unusual Market Activity
--------------------------------------------------
Mr. Salomon Levis, Chairman of the Board and Chief Executive
Officer of Doral Financial Corporation (NYSE:DRL), a diversified
financial services Company, announced Friday that the Company
knows of no relevant events or material information causing the
unusual activity in the Company's common stock on the New York
Exchange other than the recent downgrade of its common stock by
certain analysts. Standard & Poor's had also changed the
Company's credit outlook to negative from stable when it
reaffirmed the Company's investment grade credit rating.

The Chairman noted that the Company held an investor call
yesterday during which management reiterated that the
fundamentals of the Company such as loan originations and fee
income remained strong and that the Company was anticipating
record mortgage production, record commercial loans and record
insurance fee income for the first quarter of 2005. He
encouraged investors that had not participated in the call to
hear the recorded version. A recorded version of the call is
available on the Company's website www.doralfinancial.com A
recorded version of the call can also be accessed through
midnight on Wednesday, March 30, 2005 by calling (800) 475-6701
(US) or (320) 365-3844 (International) and using the access code
773968.

About Doral

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

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



=========
ST. LUCIA
=========

* Gets US$22.568Mln CDB Loan for Infrastructure Development
-----------------------------------------------------------
The Board of Directors of the Caribbean Development Bank (CDB)
has approved an additional loan of an amount up to the
equivalent of SD22.568 million to the Government of St. Lucia.
The loan is to assist the Government in financing additional
project costs encountered during the implementation of a Roads
Development Program.

CDB's Board of Directors approved the financing at a meeting of
the Board at the Bank's Headquarters in Barbados on Thursday,
March 10, 2005, under the chairmanship of President, Dr. Compton
Bourne.

This is the second additional loan which CDB has approved for
this project. On October 10, 2002, the Board approved an
additional loan of up to the equivalent of USD2.838 million to
assist the Government of St. Lucia with its counterpart
contribution for the programme.

The original loan for up to the equivalent of USD 27.489 million
was approved on December 9, 1999, bringing the total CDB
financing approved for the programme to the equivalent of up to
USD52.895 million.



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

CADAFE: Strike Looms As Union Talks Collapse
--------------------------------------------
Negotiations between management and workers at Venezuelan state-
owned power Company Cadafe took a turn for the worse Thursday
when no agreements pertaining to worker's allegations of poor
working conditions and health insurance at the Company were
struck, reports Business News Americas.

With the failure of talks, national electricity workers union
Fetralec is once again threatening stoppages and other protest
actions, especially with labor bringing fresh new grievances to
the table.

"There have been instances of intimidation, workers fired. The
Company is generating a series of situations, aggressions,
dismissals and in that environment there can't be a conciliatory
discussion," Fetralec's president Angel Nava said.

A strike could mean that no electricity emergencies will be
serviced and the Company's commercial offices will also be
closed to its 2.3 million clients.

The core activity of Cadafe, which employs some 13,000 workers,
is transmission and distribution, although it has a significant
presence in generation.


CITGO: Four Companies Bid For Refineries
----------------------------------------
Citgo, the U.S. unit of Venezuela's national oil producer
Petroleos de Venezuela, has attracted offers from four oil firms
for its refining network, reports local daily El Universal.

The bidders include independent U.S. oil refiners Premcor Inc.
and San Antonio-based Valero Energy Corp., Brazilian national
oil Company Petroleo Brasileiro SA and Russian oil producer OAO
Lukoil.

Houston-based Citgo, which owns eight U.S. refineries, is a
refiner, transporter and marketer of transportation fuels,
lubricants, petrochemicals, refined waxes, asphalt and other
industrial products.

CONTACT: Ms. Kate Robbins
         Public Affairs Manager
         CITGO Petroleum Corporation
         (832) 486-5764
         E-Mail: InvRel@citgo.com

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


SINCOR: Statoil Ready For Sincor II Expansion
---------------------------------------------
Norwegian state oil firm Statoil is prepared to implement the
US$5 billion Sincor II expansion of Venezuela's Orinoco extra
heavy crude upgrading project, report Business News Americas,
citing Peter Mellbye, Statoil vice-president for exploration and
production.

"We are very pleased with the announcement made by [Venezuelan
President Hugo Chavez] supporting the development of Sincor II
and we hope to complete this project early to contribute in the
increase of total crude production in Venezuela," Mr. Mellbye
said at a press conference in Caracas.

President Chavez recently approved French oil giant Total's
proposal for Sincor II and negotiations have started with state
oil company PDVSA.

Statoil is a partner with PDVSA at the Sincor upgrading project
with a 15% stake. Sincor currently manufactures about 180,000
barrels a day (b/d) of light sweet 30-degree API synthetic
crude, and Sincor II will double that capacity.

The Norwegian Company, which considers Venezuela a key part of
its international portfolio, aims to increase its international
production 40% from 2005 to 2007, the statement said.



                            ***********


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

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