TCRLA_Public/050323.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

           Wednesday, March 23, 2005, Vol. 6, Issue 58

                            Headlines


A R G E N T I N A

BANCO GALICIA: Shareholders to Decide on ARS1B Bond Program
B MAIL S.A.: Court Declares Company Bankrupt
BANCO MACRO: Bonds Get `BB' Rating From Moody's
CARTEX S.A.: Trustee Prepares General Report for Submission
CLISA: Local S&P Maintains Ratings on Corporate Bonds

FABRICACION GENERAL: Court Favors Creditor's Bankruptcy Plea
INGENIERIA Y MANTENIMIENTO: Verification Deadline Nears
IRSA: Noteholder Swaps Debt for Equity  
JUAN MINETTI: Shows Improved Performance
OBRA SOCIAL FEDERAL: Court Approves Concurso Motion

SANCOR: S&P Reaffirms 'raD' Rating on Various Bonds
VINTAGE PETROLEUM: Records Non-Cash Charges
* ARGENTINA: Credit Rating Constrained by High Govt. Debt Burden
* ARGENTINA: To Sell Bonds to Cancel Maturing Debt


B R A Z I L

CESP: BNDES to Present Debt Plan by July
COPEL: Board Endorses 2005 Financial Statements
NET SERVICOS: Completes Share Sale  


C O S T A   R I C A

ICE: To Sell Mobile Lines on March 28


J A M A I C A

DYOLL GROUP: Board Responds to Press Comments
DYOLL INSURANCE: Plans No Claims Payout to Policyholders



M E X I C O

HYLSAMEX: Mulls Paying Dividends to Shareholders


V E N E Z U E L A

PDVSA: Deal With Lukoil Would Affect Lube Basestocks Market
PDVSA: Citgo Probe About to Close

     -  -  -  -  -  -  -  -                           

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

BANCO GALICIA: Shareholders to Decide on ARS1B Bond Program
-----------------------------------------------------------
Shareholders of Banco de Galicia y Buenos Aires will convene on
April 28 to decide on the creation of a five-year, ARS1-billion
($1=ARS2.9175) bond program, says Dow Jones Newswires.

In a filing to the local stock exchange Monday, the bank stated
that the bonds issued under the program wouldn't be convertible
into shares and can be denominated in any currency.

The bank, which is 93.59% owned by financial holding company
Grupo Financiero Galicia (GGAL), didn't say how it plans to use
the funds raised.

Banco Galicia reached an agreement with its creditors last year
to restructure US$1.3 billion in debt. Part of its debt work-out
was the issuance of new dollar-denominated bonds that mature in
2010, 2014 and 2019.

CONTACT: Banco de Galicia y Buenos Aires S.A.
         Phone: (54-11) 6329-6430
         Fax: (54-11) 6329-6494
         Web site: www.e-galicia.com


B MAIL S.A.: Court Declares Company Bankrupt
--------------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal
declared B Mail S.A. "Quiebra", relates local daily La Nacion.
The court approved the bankruptcy petition filed by Congregacion
Hijas de San Camilo, whom the Company failed to pay debts
amounting to US$30,879.85.

The Company will undergo the bankruptcy process with Ms. Susana
Marino as trustee. Creditors are required to present proofs of
their claims to the trustee for verification before May 20.
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.

The city's Clerk No. 3 assists the court on the case.

CONTACT: B Mail S.A.
         San Martin 574
         Buenos Aires

         Ms. Susana Marino, Trustee
         Uruguay 560
         Buenos Aires


BANCO MACRO: Bonds Get `BB' Rating From Moody's
-----------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintained the
'BB' rating given to corporate bonds issued by Banco Macro S.A,
says Comision Nacional de Valores (CNV). The affected bonds are:

- US$5 million worth of bonds described as "Obligaciones
Negociables Subordinadas - Serie 4" maturing on December 31,
2005; and

- US$18 million worth of bonds described as "Obligaciones
Negociables Subordinadas - Serie V" maturing on December 29,
2006.

A `BB' rating indicates that the future of these bonds cannot be
well assured. Moody's took the action based on the bank's
financial status as of December 31, 2004.

CONTACT: Banco Macro S.A.
         Sarmiento 735
        (1041) Buenos Aires
         Argentina
         Phone: (54-11) 4323-6300
         Fax: (54-11) 4325-6935
         Telex: 18343 MacroAr -  4260 Macro Ar

         Web Site: http://www.grupomacro.com.ar/


CARTEX S.A.: Trustee Prepares General Report for Submission
-----------------------------------------------------------
A general report on the Cartex S.A. liquidation case is due for
court submission Friday, March 25, 2005.

Local accounting firm Estudio Aguilar Pinedo, Rascado, Fernandez
y Asoc., trustee on this case, will prepare the report that is
essentially an audit of the Company's accounting and business
records.     

Court no. 7 of Buenos Aires' civil and commercial tribunal has
jurisdiction over this case. The city's Clerk no. 14 assists the
Court with the proceedings.

CONTACT: "Estudio Aguilar Pinedo, Rascado, Fernandez y Asoc."
         Trustee
         Montevideo 373
         Buenos Aires


CLISA: Local S&P Maintains Ratings on Corporate Bonds
-----------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
Re-affirmed the 'raB-' rating on US$120 million worth of
corporate bonds issued by Argentine Company CLISA.

The country's securities regulator, the Comision Nacional de
Valores (CNV), described the affected bonds as "Obligaciones
Negociables con garantia (AGO 21-01-03, AD 23-01-03)." These
bonds will mature on June 1, 2012.

S&P said that an obligation rated 'raB' denotes weak protection
parameters relative to other Argentine obligations. The obligor
currently has the capacity to meet its financial commitments on
the obligation. But adverse business, financial, or economic
conditions would likely impair capacity or willingness of the
obligor to meet its financial commitments on the obligations.

At the same time, the local S&P maintains the 'raD' rating on
US$100 million worth of CLISA's bonds described as "Obligaciones
Negociables con garantia." The bonds came due on June 1, 2004.

The rating actions were based on the Company's financial health
as of December 31, 2004.


FABRICACION GENERAL: Court Favors Creditor's Bankruptcy Plea
------------------------------------------------------------
Liberty ART S.A. successfully sought for the bankruptcy of
Fabricacion General de Construcciones S.A. after Court No. 8 of
Buenos Aires' civil and commercial tribunal declared the Company
"Quiebra," reports La Nacion.

As such, the construction company will now start the bankruptcy
process with Mr. Jorge Raul Mencia as trustee. Company creditors
must submit proofs of their claims to the trustee before May 17
for authentication. Failure to do so will mean disqualification
from the payments to be made after the Company's assets are
liquidated.

The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$13,988.50

Clerk No. 15 of Buenos Aires' civil and commercial tribunal
assists the court on the case that will close with the sale of
the Company's assets. Proceeds from the sale will be used to
repay its debts.

CONTACT: Fabricacion General de Construcciones S.A.
         Carlos Pellegrini 445
         Buenos Aires

         Mr. Jorge Raul Mencia, Trustee
         Avenida Presidente Roque Saenz Pena 615
         Buenos Aires


INGENIERIA Y MANTENIMIENTO: Verification Deadline Nears
-------------------------------------------------------
The verification of creditors' claims for the Ingenieria y
Mantenimiento Electromecanico S.A. liquidation proceedings is
set to close Friday, March 25, 2005.

Creditors with claims against the bankrupt company must present
proof of such debts to court-appointed trustee Miguel Kupchik by
the said deadline. Failure to submit all required documents
within the deadline will mean disqualification from the
Company's post-liquidation distributions.

Court No. 13 of Buenos Aires' civil and commercial tribunal
handles this case with the assistance of the city's Clerk No.
25.

CONTACT: Ingenieria y Mantenimiento Electromecanico S.A.
         Pedro Ignacio Rivera 5072
         Buenos Aires

         Mr. Miguel Kupchik, Trustee
         Alsina 1360
         Buenos Aires


IRSA: Noteholder Swaps Debt for Equity  
--------------------------------------
By letter dated March 17, 2005, the Company reported that a
holder of Company's Convertible Notes exercised it conversion
right. Hence, the financial indebtedness of the Company shall be
reduced in US$ 5,000,000 and an increase of 9,174,311 ordinary
shares face value pesos 1 (V$N 1) each was made. The conversion
was performed according to terms and conditions established in
the prospectus of issuance at the conversion rate of 1.83486
shares, face value pesos 1 per Convertible Note of face value
US$ 1. As a result of that conversion the amount of shares of
the Company goes from 276,927,865 to 286,102,176. On the other
hand, the amount of registered Convertible Notes is US$
72,775,226.

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


JUAN MINETTI: Shows Improved Performance
----------------------------------------
Argentina's recovering macroeconomic environment buoyed third
quarter results for local cement manufacturer Juan Minetti S.A.
as it ended the period with 26 percent higher sales compared
with 3Q03.      

Minetti's significant progress with the restructuring of its
debt in 2003 and the increase in the generation of funds also
contributed to a stronger debt protection ratio. The Company
reported financial debt totaling US$190 Million at the end of
the third quarter. Subordinated debt in the hands of
shareholders comprise an estimated 79 percent of the its
liabilities.

Meanwhile, EBITDA, or Earnings Before Interest, Taxes,
Depreciation and Amortization, ended at 50.1% at the end of
September 2004.

The Company will host a shareholders meeting on April 25 to
discuss its latest financial results.

Juan Minetti S.A. Operates four cement plants and is also active
in the field of concrete and aggregates production through,
Holcim, its Swiss parent company. The annual cement production
capacity is 4.1 million tonnes and the company employs more than
600 people.

CONTACT: Minetti S.A.
         Casilla De Correo 16
         Ar-5101 Malagueno
         Provincia De Cordoba
         Argentina
         Phone: +54 351 498 18 77
         Fax: +53 351 498 19 36


OBRA SOCIAL FEDERAL: Court Approves Concurso Motion
---------------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Obra Social
Federal de la Federacion Nacional de Trabajadores de Obras
Sanitarias, according to a report by Argentine daily La Nacion.

Court-appointed trustee Alfredo Donatti will verify claims until
June 2. After verifying the claims, the trustee will then submit
the individual and general reports to court. Dates for
submission of these reports are yet to be disclosed.

The informative assembly will be held on March 2 next year.
Creditors of the company will vote to ratify the completed
settlement plan during the said event.

The city's Clerk No. 12 assists the court on the case.

CONTACT: Obra Social Federal de la
         Federacion Nacional de Trabajadores de
         Obras Sanitarias  
         Avenida Las Heras 1947
         Buenos Aires

         Mr. Alfredo Donatti, Trustee
         Montevideo 31
         Buenos Aires


SANCOR: S&P Reaffirms 'raD' Rating on Various Bonds
---------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rates corporate bonds issued by Sancor Coop. Unidas Ltda. 'raD',
according to the National Securities Commission.

The default ratings, based on the Company's financial standing
as of December 31, 2004, applies to:

- US$300 million of "Programa de Obligaciones Negociables",
under program. Maturity date is April 23, 2006.

- US$19 million of "Serie 2, bajo el Programa de Ons. por U$300
millones", under "Series and/or class". These bonds mature on
January 27, 2004.

- US$75.8 million of "Serie 3, bajo el Programa de Ons. Por
US$300 millones", also under "series and/or class". Bonds mature
on January 27, 2004.

The ratings agency said that an obligation is rated 'raD' when
it is in payment default of the obligor has filed for
bankruptcy.

CONTACT: SanCor Coop. Unidas Ltda.
         Tacuari 202
         Buenos Aires
         Argentina
         Phone: 54-11-5382 7230
         Fax: 54-11-5382 7208


VINTAGE PETROLEUM: Records Non-Cash Charges
-------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Monday that it
expects certain non-cash charges to be recorded in the first
quarter of 2005 related to its oil price swap agreements. As
stated in the company's 2004 Form 10-K, most of the company's
oil price swap agreements were accounted for under mark-to-
market accounting for the period from Dec. 31, 2004, through
Feb. 28, 2005. Under mark-to-market accounting, changes in the
fair value of these agreements are recognized currently as non-
operating income or expense.

Due to the substantial increase in oil prices during January and
February 2005, the company expects a first quarter non-cash
charge to derivative losses (a non-operating expense) of
approximately $38.8 million related to unrealized losses and a
$2.2 million cash charge for realized losses (a combined total
of $41.0 million, or $25.0 million after tax) related to these
oil price swap agreements as of Feb. 28, 2005. As these oil
price swap agreements are settled in future periods, the $38.8
million non-cash charge for unrealized losses will be offset by
higher reported oil revenues in those periods than would be
reported had this non-cash charge not been recognized in the
first quarter.

As of March 1, 2005, the company re-designated all of its oil
price swap agreements as cash flow hedges and resumed hedge
accounting for these agreements. Under hedge accounting, the
effective portion of the gain or loss on a derivative instrument
is reported as a part of "accumulated other comprehensive
income" (a component of stockholders' equity) and reflected as
an adjustment to oil and gas sales revenues in the same period
during which the hedged volumes are sold.

"The economic impact of the company's existing oil price swap
agreements remains the same regardless of the use of mark-to-
market accounting or hedge accounting. Re-designating our oil
price swap agreements effective March 1, 2005, and resuming
hedge accounting, should reduce the significant volatility in
reported earnings resulting from the use of mark-to-market
accounting," stated William C. Barnes, Executive Vice President
and Chief Financial Officer.

Development Seismic Costs Accounting Policy Review Complete

In connection with the previously announced routine review of
our 2003 Form 10-K, the SEC has completed its review of our
accounting policy for development seismic costs. On March 11,
2005, the SEC provided the company with guidance regarding the
application of this accounting policy. Based on the company's
review, the impact of applying this guidance does not have a
material impact on the company's consolidated financial
statements for the three years ended Dec. 31, 2004.

About Vintage Petroleum

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

CONTACT: Vintage Petroleum, Inc.
         Tulsa
         Mr. Robert E. Phaneuf
         Phone: 918-592-0101
         Web site: www.vintagepetroleum.com


* ARGENTINA: Credit Rating Constrained by High Govt. Debt Burden
----------------------------------------------------------------

Credit Ratings - SD/Nm/SD

Major Rating Factors

Strengths:
    * Higher level of human development, including better health
and education, than other similarly rated sovereigns.

Weaknesses:
    * High government debt burden.
    * Limited fiscal flexibility.
    * Limited monetary flexibility.

Rationale
The credit rating on the Republic of Argentina after it emerges
from selective default will be constrained by a high government
debt burden. The general government's debt burden is likely to
remain above 70% of GDP after the financial close of the current
debt-rescheduling exercise. Adding the approximately $20 billion
in defaulted debt (excluding past-due interest on it) that has
not been exchanged in the recent debt exchange would raise the
debt burden to more than 81% of Argentina's projected 2005 GDP.
Although the proposed new sovereign bonds will create only a
modest burden on the budget in the coming years, the government
will still bear a heavy burden in servicing other market debt
that has not been in default as well as obligations to official
creditors.

Argentina's fiscal flexibility is limited. The improvement in
fiscal performance in 2004 reflects both cyclical and structural
features. Tax collections have improved because of high export
prices and renewed economic growth that is boosting employment.
Maintaining the current level of tax revenue (as a share of GDP)
will be difficult in the coming years as commodity prices weaken
and capacity constraints curtail economic growth. This dynamic
will necessitate greater spending control to generate adequate
primary budget surpluses to meet future debt-service
obligations.

Argentina's monetary flexibility is limited. The conduct of
monetary policy will be constrained by the legacy of the recent
financial crisis, which led to the loss of the central bank's
autonomy and damaged the transmission mechanism of monetary
policy and its credibility.

The credit rating on Argentina after it issues new debt will be
supported by its higher level of human development, including
better health and education, than other similarly rated
sovereigns. In addition, Argentina enjoys relatively more
developed physical infrastructure and greater technical and
managerial depth. These factors augur well for reasonably good
GDP growth prospects after the rescheduling but are balanced by
the country's weak legal and regulatory framework and other
limitations.

Outlook
Standard & Poor's expects to assign its 'B-' foreign and local
currency issuer credit ratings to Argentina following the
financial close of the current debt-rescheduling exercise. The
outlook on the prospective rating is likely to be stable. Over
the coming years, the credit rating on Argentina will depend
largely on the government's underlying fiscal stance as well as
its ability to gain access to funding from official creditors.
Achieving a high acceptance rate in the current debt exchange
should create better relations between the government and its
commercial creditors, facilitating its future access to the debt
market. An improved relationship with official creditors-
including the IMF-could result in rollovers of official and
multilateral debt that is maturing in 2005 and 2006 (totaling
more than $13 billion in principal alone), substantially easing
the government's debt-service burden and increasing its
creditworthiness.

Primary Credit Analyst: Joydeep Mukherji, New York
(1) 212-438-7351; joydeep_mukherji@standardandpoors.com

Secondary Credit Analyst: Sebastian Briozzo, New York
(1) 212-438-7342; sebastian_briozzo@standardandpoors.com


* ARGENTINA: To Sell Bonds to Cancel Maturing Debt
--------------------------------------------------
Argentina plans to sell bonds within two weeks to help pay down
existing debt that is coming due in 2005, reports Dow Jones
Newswires.

The government did not disclose the size of the planned sale.
Economy Minister Roberto Lavagna last week indicated that the
government's 2005 budget allows the country to sell as much as
US$2.45 billion in bonds this year.

"The fundamental important point to have clear is that this
doesn't mean a new issuance," Lavagna said. "This deals
exclusively with the management of debt - that is, to issue debt
to cancel debt that matures this year."

The sale would be the first by Argentina's Treasury since
February 2001 and follows the country's debt restructuring last
month.



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

CESP: BNDES to Present Debt Plan by July
----------------------------------------
Brazil's national development bank, BNDES, and the Sao Paulo
state government continue to be in talks to seek a solution to
state power company Cesp's debt woes, reports Business News
Americas.

BNDES CEO Guido Mantega said the bank plans to present by July a
debt plan that would allow Cesp to meet short-term obligations
on its BRL10.4-billion (US$3.8bn) debt.

Cesp owes BNDES some BRL3 billion. The Sao Paulo state, which
controls Cesp, has proposed the capitalization of the utility
through conversion of the company's debt with BNDES into shares
as well as the handing over of shares in its transmission power
company CTEEP to Cesp.

CONTACT:    Companhia Energetica De Sao Paulo (CESP)
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


COPEL: Board Endorses 2005 Financial Statements
-----------------------------------------------
The Board of Directors of Companhia Paranaense de Energia
(Copel), in the a meeting held at Rua Coronel Dulcidio No. 800,
Curitiba on March 21, 2005, passed the following resolutions:

a) Approved, by unanimous vote, Balance Sheet and other
Financial Statements, Management Report and the Proposal of
Profit Appropriation for Fiscal Year 2004, the submission of
this subjects to the Annual Shareholders' Meeting, which call
notice was approved on a date to be defined;

b) Approved, by unanimous vote, the procedure to regularize
intra-company financial transfers between the wholly-owned
subsidiaries and between these subsidiaries and the Holding
Company;

c) Approved, by unanimous vote, the ratification of the terms of
the real guarantee within the scope of the Company's Third
Debenture Issue.

CONTACT: Companhia Paranaense de Energia (Copel)
         Rua Coronel Dulcidio 800
         Curitiba
         Parana, 80420-170
         Brazil
         Phone: (5541) 322-3535


NET SERVICOS: Completes Share Sale  
----------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq: NETC) (Bovespa: PLIM4)
(Bovespa: PLIM3) (Latibex: XNET) publicly announces, under the
terms of CVM Instruction 358/02, that, according to information
received from its shareholders Globo Comunicacoes e
Participacoes S.A. ("Globopar"), Distel Holding S.A. ("Distel"),
UGB Participacoes S.A. ("UGB"), Roma Participacoes Ltda.
("Roma") (Globopar, Distel, UGB and Roma, jointly called
"Globo"), and Latam do Brasil Participacoes S.A., corporation
headquartered at the city of Rio de Janeiro, state of Rio de
Janeiro, enrolled with the Corporate Taxpayer's ID (CNPJ/MF) #
07.165.506/0001-08 ("Latam"), the latter being indirectly
controlled by Telefonos de Mexico, S.A. de C.V. ("Telmex"), the
operations subject of the Agreement for the Purchase and Sale of
Shares Issued by NET, celebrated between Globo and Telmex on
06.27.2004 (the "Agreement for the Purchase and Sale of
Shares"), as disclosed by Relevant Notices published by Net on
06.27.2004 and 06.30.2004, were completed Monday.

In addition Globo subscribed and paid up 681,605,160 voting
shares issued by Net, and Latam subscribed and paid up
54,096,360 voting shares and 179,906,550 non-voting shares
issued by Net, under the scope of Net's ongoing private issue of
shares, as announced on a Notice to Shareholders disclosed on
March 21, 2005.

The operations subject to the Agreement for the Purchase and
Sale of Shares were completed as follows:

(a) Globo transferred to GB Empreendimentos e Participacoes
S.A., a company that until then was wholly-owned by Globo,
802,494,433 voting shares issued by NET, representing 51%
(fifty-one percent) of NET's voting capital;

(b) Globo transferred to Latam 131,074,091 voting shares issued
by GB, representing 49% (forty-nine percent) of GB's voting
capital, as well as all the 534,996,288 non-voting shares issued
by GB;

(c) Globo transferred to Latam 460,928,020 voting shares issued
by NET, representing 29.29% (twenty-nine point twenty-nine
percent) of NET's voting capital.

After the aforementioned operations, Globo remains the
controller shareholder of GB, which is, for its part, holder of
51% (fifty-one percent) of NET's voting capital, and Globo also
directly holds 171,095,380 voting shares and 200,000,000 non-
voting shares issued by NET, representing 10.87% (ten point
eighty-seven percent) of NET's voting capital and 9.63% (nine
point sixty-three percent) of NET's total capital. Telmex, for
its part, now holds, through Latam, 36.55% (thirty-six point
fifty-five percent) of NET's total capital, in addition to its
stake on GB's capital as disclosed above.

The aforementioned percentages were calculated after the
conclusion of NET's ongoing private issue of shares mentioned
above.

The closing price per voting share issued by NET acquired by
Latam from Globo, directly and indirectly through GB, was of
R$0.6277.

Globo and Telmex celebrated, among other documents, NET
Shareholders' Agreement, filed today at the Company's
headquarters.

The operations hereby announced will be properly notified to the
appropriate governmental authorities.

CONTACT: Net Servicos de Comunicacao S.A.
         Investor Relations
         Mr. Marcio Minoru / Mr. Rodrigo Alves
         Phone: 55 11 5186-2811
         E-mail: ri@netservicos.com.br



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

ICE: To Sell Mobile Lines on March 28
-------------------------------------
Costa Rica's electricity and telecoms monopoly ICE will sell on
March 28 mobile lines previously owned by subscribers, whose
accounts were closed due to late payments.

According to Business News Americas, ICE is selling 5,000 GSM
and 5,000 TDMA mobile lines to make up for a backlog of
applications from interested subscribers.

ICE is forced to sell existing ones it has closed for
delinquency since it cannot start selling new lines under a
contract from Sweden's Ericsson (Nasdaq: ERICY) until later this
year.

ICE estimates it will be able to begin selling some 200,000
lines in October out of the total 600,000 in the Ericsson
contract.



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

DYOLL GROUP: Board Responds to Press Comments
---------------------------------------------
THE BOARD of Dyoll Group Limited wishes to address various
comments recently made in the press concerning the fact that the
Dyoll Group board was not furnished with full information
concerning claims exposure on the Dyoll Cayman property
portfolio. The Dyoll Group board, in a previous release, made it
plain that it had not been kept properly informed by executive
management of the level of exposure. In view of recent press
comments, the Dyoll Group board now feels obliged to be more
specific.

REINSURANCE TREATIES

In view of the significance of the claims caused by Hurricane
Ivan, the board of Dyoll Group required Mr. Stephen Thwaites
(the chief executive officer of Dyoll Group Limited and Dyoll
Insurance Company Limited at the time) and Mr. Mark Thwaites
(the chief operating officer of Dyoll Insurance at the time), to
keep it constantly updated as to potential liability on the
property portfolio in Cayman.

On November 24, 2004, Stephen Thwaites reported to the Dyoll
Group board that total anticipated claims from Cayman would be
covered by various reinsurance treaties, including Dyoll Insur-
ance's Quota Share Treaty with AON Re, a major global
reinsurance company. He said:

"From a review of the latest property claims, it was anticipated
that the losses would not exceed the cover provided under the
treaty for same."

NO MENTION

He made no mention of the event limit under the treaty, which
precluded recovery from reinsurers of losses in excess of
US$36,000,000.

On December 16, 2004, Mark Thwaites reported to the Dyoll Group
board on anticipated claims from Cayman and made no mention of
the event limit, nor any adverse financial exposure for Dyoll
Insurance as a result of exceeding the event limit.

In discussions on January 31, 2005, the senior risk officer of
Dyoll Insurance, Mr. Joe Holness, informed the chairman of the
Dyoll Group board that Dyoll Insurance might face adverse
exposure on its Cayman property portfolio because the event
limit on the Quota Share Treaty would be substantially exceeded.

NEW INFORMATION

This new information was communicated to the chief financial
officer of Dyoll Insurance, Mrs. Debbie Anne Hyde, who was
preparing for filing with the Financial Services Commission, the
required quarterly accounts ending December 31, 2004 (as
required under the Insurance Act). As a consequence, the
accounts of Dyoll Insurance were adjusted to reflect the new
information and presented to the FSC on January 31, 2005.

The matter was investigated, and the following facts discovered:

(i) Ever since the hurricane hit Cayman on September 12, 2004,
Executives from AON Re had been in constant (almost daily)
dialogue with Stephen and Mark Thwaites concerning the level of
potential losses in Cayman, and the distinct possibility that
the event limit of US$36,000,000 on the Dyoll Insurance Quota
Share Treaty would be exceeded, and that Dyoll Insurance would
be liable for the balance of claims arising out of the Caymanian
property portfolio;

(ii) Mr. Holness wrote to Stephen and Mark Thwaites on November
22, advising them of the same fact. He projected a US$7,190,000
excess over the US$36,000,000 event limit.

It is regrettable that, having been consistently advised by AON
Re, and specifically advised in writing by Mr. Holness on
November 22, 2004 that the Quota Share Treaty event limit would
be likely to be exceeded, neither Stephen nor Mark Thwaites
advised the CFO or the board of this fact. Instead, Mr. Stephen
Thwaites formally reported to the board on November 24, 2004
that it was anticipated that the losses would not exceed
reinsurance cover. Additionally, Mr. Thwaites subsequently
signed off on the in-house management accounts and financial
projections ending December 31, 2004, neither of which reflected
the exposure above the event limit on the property portfolio.

The present Boards of Dyoll Group Limited and Dyoll Insurance
Company Limited are new Boards, which took over only weeks
before hurricane Ivan, and inherited an insurance portfolio and
reinsurance contracts and structures, which had previously been
put in place while Stephen and Mark Thwaites were Executive
Officers of Dyoll Insurance. The Dyoll Group Board relied
entirely upon Stephen and Mark Thwaites in all technical matters
relating to insurance and reinsurance.

As Dyoll Group was not aware of the true position of the losses
suffered by Dyoll Insurance, they were unable to address Dyoll's
capital requirements, so as to safeguard the interests of
policyholders, and the future of Dyoll Group and Dyoll Insurance
Company.

Both Stephen Thwaites and Mark Thwaites resigned on 21st
February 2005.

The Board continues to have full confidence in its Chief
Financial Officer, Mrs. Debbie Anne Hyde, who, like the Board,
relied upon the technical expertise of the Chief Executive
Officer and the Chief Operating Officer.


DYOLL INSURANCE: Plans No Claims Payout to Policyholders
---------------------------------------------------------
Former Dyoll policyholders learned at a meeting Friday that
Jamaica International Insurance Company (JIIC) would not be
paying out claims to them, The Jamaica Observer reveals.

JIIC representatives told the group that while it had taken over
the policies, it had not assumed the liabilities and would not
be paying out claims to those who had filed prior to March 7.

JIIC said the responsibility remains with Dyoll Insurance, which
is now under the control of temporary manager Ken Tomlinson.



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

HYLSAMEX: Mulls Paying Dividends to Shareholders
------------------------------------------------
Financial website Invertia revealed that Mexican iron and steel
company Hylsamex (BMV: HYLSAMXB) plans to pay dividends to its
shareholders.

Hylsamex has called a shareholders' meeting for April 6 and said
it would pay a dividend for the first time since canceling it a
number of years ago due to its growing debt.

Hylsamex's net income rose 650% to US$540 million in 2004 while
Ebitda increased more than four times to US$759 million.

Hylsamex is being spun off from its parent company Alfa, one of
Mexico's largest conglomerates that sells a range of products
from petrochemicals to processed cheese.

Alfa, which holds 51% of Hylsamex's voting shares and 42% of all
outstanding shares, has yet to call a shareholders meeting to
move forward with its spin off, originally scheduled for the
first quarter of this year.

CONTACT: Mr. Othon Diaz Del Guante
         Phone: +(52) 81-8865-1240
         E-mail: odiaz@hylsamex.com.mx

         Mr. Ismael De La Garza
         Phone: +(52) 81-8865-1224
         E-mail: idelagarza@hylsamex.com.mx

         Mr. Kevin Kirkeby
         Phone: +(646) 284-9416
         E-mail: kkirkeby@hfgcg.com



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

PDVSA: Deal With Lukoil Would Affect Lube Basestocks Market
-----------------------------------------------------------
Lukoil, Russia's largest oil company, and Venezuela's state-
owned oil company, Petroleos de Venezuela (PDVSA), are
reportedly negotiating a deal to provide an outlet for Russian
crude oil in North America. The arrangement would also involve
Citgo, the well-established U.S. supplier of petroleum products
that PDVSA has held controlling interest in since 1990.

Felix Rodriguez, recently installed as Citgo's chief executive
by the Venezuelan government, has denied any imminent sale of
Citgo. But he acknowledges Lukoil and Venezuela are discussing
the sale and purchase of parts of Citgo, as well as the
possibility of Lukoil building a refinery in Venezuela.

The deal would be a good fit with the current strategies of both
parties, according to Geeta Agashe, director of the Petroleum &
Energy Practice for Kline & Company and project manager for
Kline's market study GLOBAL BUSINESS OPPORTUNITIES IN THE
LUBRICANT BASESTOCKS INDUSTRY, 2004-2020.

"Reportedly, PDVSA hasn't been happy with Citgo and is looking
to diversify away from the U.S. market, while Lukoil is looking
for wider U.S. distribution of its crude. It seems like both
sides would get what they're looking for," says Agashe.

While Agashe notes that such a deal would be driven mainly by
the advantages to both parties in the fuels markets, she adds
that any alliance would also affect the lubricant basestocks
market, particularly for Citgo.

"Citgo currently has capacity for refining Group I basestocks
only, but it would take a relatively small investment to upgrade
the Lake Charles refinery in Louisiana to produce Group II and
higher. It's not likely that they're going to get the money from
PDVSA, but they might get it from Lukoil," Agashe says.

Despite rising profits, Venezuela has expressed unhappiness with
Citgo's performance. PDVSA purchased Citgo Petroleum primarily
as an outlet for its heavy and sour crude, but some of Citgo's
refineries, including the Lemont, Illinois, plant, are procuring
crude oil from Canadian sources, rather than from Venezuela.
With the worsening of U.S.-Venezuelan political relations and
lower-than-expected use of Venezuelan crude, PDVSA has indicated
a growing interest in the energy-hungry Chinese and Indian
markets.

But an expanded U.S. outlet for crude, fuels, and finished
lubricants through Citgo would be inviting to an ambitious
Lukoil. The Russian oil company has signaled its interest in
acquiring refining assets in North America and indicates it
believes the profit margins are respectable. The Citgo brand is
well recognized, and Citgo is currently the fifth-largest
retailer of finished lubricants in the United States.

Lukoil has also invested in downstream assets in the United
States and Europe. It purchased the Getty brand, acquiring Getty
gas stations, and has opened others under the Lukoil brand in
the northeastern United States.

The implications of developments such as these are examined in
Kline & Company's upcoming market study, GLOBAL BUSINESS
OPPORTUNITIES IN THE LUBRICANT BASESTOCKS INDUSTRY, 2004-2020.
The report, due to be published in April, will provide an
unbiased, forward-thinking assessment of what the industry will
look like over the next 15 years, as well as a thorough analysis
of basestock supply and demand.


PDVSA: Citgo Probe About to Close
---------------------------------
A Venezuelan delegation is about to wrap up its investigation
into reported irregularities at Houston-based Citgo Petroleum
Corp., a wholly-owned subsidiary of Petroleos de Venezuela SA
(PDVSA), reports Dow Jones Newswires.

To conclude the probe, the lawmakers will need to conduct more
interviews in Caracas, said a member of the delegation.

"All the required documentation was brought in," Cesar Rincones,
the president of the Permanent Controller Commission at the
Venezuelan National Assembly, said. "Everything looks
transparent."

Rincones, a Citgo ally and Chavez critic, attributed any
reporting irregularities to Venezuela's oil strike of 2002-2003,
when most of PdVSA fell prey to chaos.

The delegation visited Houston to probe alleged irregularities
by Citgo's former management related to the company's move from
Tulsa, Okla., to Houston. Allegations include overpaying for
supplies and moving services, and possible wrongdoing related to
an information leak prior to a 2003 debt repurchase.

"I see that this is a very prosperous company, and its
relocation to Houston was strategic," Rincones said. "I believe
that, contrary to declarations by President [Hugo] Chavez, Citgo
is a strategic company," he said.



                            ***********


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