TCRLA_Public/050328.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

            Monday, March 28, 2005, Vol. 6, Issue 60

                            Headlines

A R G E N T I N A

ALPI ASOCIACION: Seeks Court Approval for Reorganization
ANABEA S.R.L.: Court Concludes Reorganization
AZEGAL S.R.L.: Enters Bankruptcy on Court Orders
BUENOS AIRES EXIMPORT: Reorganization Request Approved
CELRED S.R.L.: Verification Period Extended

CONSTRUCTORA SOLER: Files Petition to Reorganize
CRISOMAR S.R.L.: Court Converts Bankruptcy to Reorganization
CRM: Moody's Leaves Default Ratings on Bonds Unchanged
GABIKAR S.R.L.: Awaiting Reorganization Ruling
HECTOR GUTIERREZ S.A.: Court Commutes Liquidation

IMAGEN SATELITAL: Bonds Still In Default
IMPRESIONES ARCO IRIS: Liquidates Assets to Pay Debts
MASTELLONE HERMANOS: Moody's Maintains Default Ratings on Bonds
NEWMAX S.R.L.: Court OKs Creditor's Bankruptcy Motion
NETESPACIO S.A.: Proceeds to Liquidate Assets

PETROBRAS ENERGIA: Prepays Corporate Notes
STYX S.R.L.: Enters Bankruptcy on Court Orders
TOM DISTRIBUIDORA S.R.L.: Court Resets Liquidation Schedule
TRANSENER: Postpones Debt Restructuring Deadline to April 6
VINTAGE PETROLEUM: Outlines Performance Bonus Program  


B E R M U D A

FOSTER WHEELER: Inks $53M Power Plant Contract With SembCorp


B R A Z I L

BANCO VOTORTANTIM: S&P Affirms Ratings
NET SERVICOS: Net Loss More Than Doubles in 2004
* BRAZIL: IMF Board Completes Review of Stand-By Arrangement


C H I L E

AES GENER: Rating Reflects Relatively High Generation Cost
MANQUEHUE NET: Bets on Broadband to Boost Profits This Year


C O L O M B I A

* COLOMBIA: Secures $170M Financing From World Bank


E L   S A L V A D O R

INVERSIONES FINANCIERAS: Fitch Affirms `BB' Nat'l Scale Rating


J A M A I C A

AIR JAMAICA: Provides More Info on Flights' Suspension


M E X I C O

BALLY TOTAL: Katherine Abbott Joins Bally as VP and Treasurer
PEMEX: Evaluates Hydrocarbon Reserves as of Jan. 2005   
XERIUM TECHNOLOGIES: Moody's Assigns B1 Rating; Outlook Stable


P U E R T O   R I C O

DORAL FINANCIAL: Explores Alternatives Regarding Sale of IOs


V E N E Z U E L A

CADAFE: To Meet Face-to-Face With Union on March 29
PDVSA: Inks $202M Accord to Develop Railroads
PDVSA: Enel Requests Arbitration to Recoup $200M

     -  -  -  -  -  -  -  -

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A R G E N T I N A
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ALPI ASOCIACION: Seeks Court Approval for Reorganization
--------------------------------------------------------
ALPI Asociacion Civil, a physical therapy center in Buenos
Aires, has requested for reorganization after failing to pay its
liabilities since the first semester of 2001, reports La Nacion.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Court No. 18 of the city's civil and
commercial tribunal. Clerk No. 36 assists on this case.

CONTACT: ALPI Asociacion Civil
         Soler 3945
         Buenos Aires


ANABEA S.R.L.: Court Concludes Reorganization
---------------------------------------------
The reorganization of Anabea S.R.L. reaches its conclusion after
Court No. 7 of Buenos Aires' civil and commercial tribunal
homologated the debt agreement signed between the Company and
its creditors.

The city's Clerk No. 13 assists the court on this case.

CONTACT: Anabea S.R.L.
         Ruiz De Los Llanos 645
         Buenos Aires         
         Phone: (011) 4642-2563/4641-4062
         Fax: (011) 4642-2563


AZEGAL S.R.L.: Enters Bankruptcy on Court Orders
------------------------------------------------
Court No. 19 of Buenos Aires' civil and commercial tribunal
declared Azegal S.R.L. bankrupt after the Company defaulted on
its debt payments. The order effectively places the Company's
affairs as well as its assets under the control of court-
appointed trustee Irma Susana Aguilera.

As the trustee, Ms. Aguilera is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until April 15.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on May 30. A general report of the case
will also be submitted on July 11.

Infobae reports that Clerk No. 37 assists the court on this
case. Proceeds from the sale of the Company's assets will be
used to repay its debts.

CONTACT: Ms. Irma Susana Aguilera, Trustee
         Luis Saenz Pena 1690
         Buenos Aires


BUENOS AIRES EXIMPORT: Reorganization Request Approved
------------------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal
approved the "Concurso Preventivo" petition filed by Buenos
Aires Eximport SACFI, reports local news source La Nacion.

The Company will undergo the reorganization process with Ms.
Maria Barbieri as trustee. She will verify creditors' proofs of
claim until August 4. Verifications are done to ascertain the
nature and amount of the Company's debts.

The Company will also hold an informative assembly on March 9,
2006 to present a completed settlement proposal to its
creditors.

Clerk No. 41 assists the court on this case.

CONTACT: Buenos Aires Eximport SACFI
         Teniente General Juan Domingo Peron 315  
         Buenos Aires

         Plantation:
         Irineo Portela, Baradero
         Provincia de Buenos Aires

         Ms. Maria Barbieri, Trustee
         Avenida Cabildo 2040
         Buenos Aires


CELRED S.R.L.: Verification Period Extended
-------------------------------------------
The verification of creditors claims for the Celred S.R.L. has
been extended until June 1, says Infobae. Creditors with claims
against the Company must submit proof of the debts to trustee
Miryam Lewenbaum by the said deadline to qualify under the
Company's settlement plan.

Court No. 6 of Buenos Aires' civil and commercial tribunal has
jurisdiction over this case. The city's Clerk No. 12 assists the
court with the proceedings.

CONTACT: Ms. Miryam Lewenbaum, Trustee
         Montevideo 666
         Buenos Aires


CONSTRUCTORA SOLER: Files Petition to Reorganize
------------------------------------------------
Local construction company Constructora Soler S.A. has filed a
"Concurso Preventivo" motion, reports La Nacion. The Company is
seeking to reorganize its finances following cessation of debt
payments since June 19 last year.

The Company's case is pending before Court No. 24 of Buenos
Aires' civil and commercial tribunal. Clerk No. 48 assists the
court on this case.

CONTACT: Constructora Soler S.A.
         Scalabrini Ortiz 2368
         Buenos Aires


CRISOMAR S.R.L.: Court Converts Bankruptcy to Reorganization
------------------------------------------------------------
Crisomar S.R.L. proceeds with reorganization after Court No. 9
of Buenos Aires' civil and commercial tribunal converted the
Company's ongoing bankruptcy case into a "concurso preventivo,"
states Infobae.

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

A court-appointed trustee will submit individual reports from
the case on March 18 followed by a general report on May 3.


CRM: Moody's Leaves Default Ratings on Bonds Unchanged
------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A., maintains a
'D' rating on a total of US$350 million worth of corporate bonds
issued by Compania de Radiocomunicaciones Moviles S.A.(CRM), the
CNV says on its Web site. The Company's financial health as of
December 31, 2004 determined the rating, which denotes a payment
default.

The CNV described the affected bonds as "Programa Global de Ons
simpleas, autorizado por AGE de fecha 26.6.97 y 23.9.97". These
bonds, which are classified under "Program", matured in March
2003.


GABIKAR S.R.L.: Awaiting Reorganization Ruling
----------------------------------------------
Court No. 12 of Buenos Aires' civil and commercial tribunal is
now analyzing whether to grant Gabikar S.R.L. approval for its
petition to reorganize.

La Nacion recalls that the Company filed a "Concurso Preventivo"
petition following cessation of debt payments on April 25, 2005.

The city's Clerk No. 23 assists the court on the Company's case.

CONTACT: Gabikar S.R.L.
         Avenida de los Constituyentes 5918
         Buenos Aires


HECTOR GUTIERREZ S.A.: Court Commutes Liquidation
-------------------------------------------------
Rio Negro-based Hector Gutierrez S.A., which was undergoing
reorganization, entered bankruptcy on orders from Court No. 5 of
the city's civil and commercial tribunal.

Infobae relates that the court appointed Mr. Carlos Barreda to
serve as trustee on the case. Mr. Barrreda will conduct the
credit verification process "por via incidental."

CONTACT: Hector Gutierrez S.A.
         Barrio Matadero
         Villa Regina (Rio Negro)

         Mr. Carlos Barreda, Trustee
         Mitre 810
         General Roca (Rio Negro)


IMAGEN SATELITAL: Bonds Still In Default
----------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on US$80 million worth of corporate bonds issued by
Argentine Company Imagen Satelital S.A., the CNV relates. The
rating issued applies to bonds called "obligaciones negociables"
That will expire on May 2, 2005.

The Company's financial health as of December 31, 2004
determined the action taken by Moody's.


IMPRESIONES ARCO IRIS: Liquidates Assets to Pay Debts
-----------------------------------------------------
Buenos Aires-based Impresiones Arco Iris Cordoba S.A. (antes
Arco Iris Impresiones S.A.) will begin liquidating its assets
following the bankruptcy pronouncement issued by Court No. 22 of
the city's civil and commercial tribunal.

The ruling places the Company under the supervision of court-
appointed trustee Carlos Daniel Brezinski. The trustee will
verify creditors' proofs of claims until May 23. The validated
claims will be presented in court as individual reports on July
6.

Infobae reports that the trustee will also submit a general
report, containing a summary of the Company's financial status
as well as relevant events pertaining to the bankruptcy, on
September 2.

The bankruptcy process will end with the disposal of the
Company's assets.

CONTACT: Mr. Carlos Daniel Brezinski, Trustee
         Lambare 1140
         Buenos Aires


MASTELLONE HERMANOS: Moody's Maintains Default Ratings on Bonds
---------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on $225 million worth of bonds issued by Argentine
Company Mastellone Hermanos S.A., relates the Comision Nacional
de Valores (CNV), Argentina's securities regulator.

The rating, based on the Company's finances as of December 31,
2004, is assigned to bonds that are in payment default,
according to the ratings agency.

The affected bonds are described as "Obligaciones Negociables,
autorizadas por AGE de fecha 28.8.97." due on April 1, 2008.


NEWMAX S.R.L.: Court OKs Creditor's Bankruptcy Motion
-----------------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal
declared Newmax S.R.L. bankrupt, says La Nacion. The ruling
comes in approval of the bankruptcy petition filed by the
Company's creditor, Cooperativa de Vivienda Dielmar Ltda.

Court-appointed trustee Monica Beatriz Cascioli will examine and
authenticate creditors' claims until May 20. This is done to
determine the nature and amount of the Company's debts.

The city's Clerk No. 10 assists the court on the case that will
close with the liquidation of the Company's assets.

CONTACT: Newmax S.R.L.
         Avenida Triunvirato 4135
         Buenos Aires

         Ms. Monica Beatriz Cascioli, Trustee
         Parana 723
         Buenos Aires


NETESPACIO S.A.: Proceeds to Liquidate Assets
---------------------------------------------
Netespacio S.A. entered bankruptcy protection after Court No. 21
of Buenos Aires' civil and commercial tribunal approved a
bankruptcy motion filed by Adeco Argentina S.A., reports La
Nacion. The Company's failure to pay US$3,756.99 in debt
prompted the creditor to file the petition.

Working with the city's Clerk No. 41, the court assigned Mr.
Leon Fucks as trustee for the bankruptcy process. The trustee's
duties include the authentication of the Company's debts and the
preparation of the individual and general reports. Creditors are
required to present proofs of their claims to the trustee before
May 27.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Netespacio S.A.
         Marcelo Torcuato de Alvear 777
         Buenos Aires

         Mr. Leon Fucks, Trustee
         Bouchard 644
         Buenos Aires


PETROBRAS ENERGIA: Prepays Corporate Notes
------------------------------------------
Argentine energy Company Petrobras Energia (NYSE: PZE) announced
that on March 22 it prepaid the aggregate remaining principal
plus interest accrued as of the date of payment, of Class K
notes with a nominal value of US$ 286,262,000 due 2007 ("Class
K") and Class M notes with a nominal value of US$ 181,824,000
due 2007 ("Class M"), both issued under the US$2.5 billion
Medium-Term Notes Program.    

The repaid principal amounted to US$113,805,330.00 for Class K
notes and US$72,285,160.00 for Class M notes. These payments, in
addition to those already made in February 2005 in the amount of
US$90,872,000 for Class K and US$57,719,000 for Class M, total
US$334,681,490. In all cases, the amount of principal repaid is
related to the nominal value of debt issued.

Both Classes included a series of covenants, which were fully
complied with during the effective period. The notes in question
were issued in October 2002 under the global process involving
restructuring of the Company's financial obligations carried out
during said year.  

The notes mentioned above were partially repaid with the
Company's own resources and with new financing operations, with
improved terms: a reduced cost and a significant extension of
the term with respect to that of the notes already repaid,
allowing for better alignment of financial maturities with cash
provided by our operations.

CONTACT: Petrobras Energia Participaciones SA
         Avenida de Mayo 701, Piso 16
         Buenos Aires,
         Phone: (212) 657-5100
         Fax: (212) 825-5674
         Web Site: http://www.petrobrasenergia.com


STYX S.R.L.: Enters Bankruptcy on Court Orders
----------------------------------------------
Styx S.R.L. entered bankruptcy protection after Court No. 26 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 52, ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to a
court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Mr. Julio Pedro
Salaberry as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on May 20.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on July 5 followed by the general report that is due on August
31.

CONTACT: Styx S.R.L.
         Avda Rivadavia 969
         Buenos Aires

         Mr. Julio Pedro Salaberry, Trustee
         Chile 1485
         Buenos Aires


TOM DISTRIBUIDORA S.R.L.: Court Resets Liquidation Schedule
-----------------------------------------------------------
Key events in the Tom Distribuidora S.R.L. liquidation case have
been moved to the following dates:

1. Claims Verification Deadline: May 19, 2005
2. Individual Reports Submission: July 4, 2005
3. General Report: August 30, 2005
5. Informative assembly March 9, 2006

All proof of claims must be submitted to local accountant Sara
Maria Rey De Lavolpe for authentication by the said deadline.

Court No. 8 of civil and commercial tribunal has jurisdiction
over this case. The city's Clerk No. 15 assists the court with
the proceedings.

CONTACT: Ms. Sara Maria Rey De Lavolpe, Trustee
         Avda Cerrito 1136
         Buenos Aires


TRANSENER: Postpones Debt Restructuring Deadline to April 6
-----------------------------------------------------------
Argentine power transporter Transener (TRAN.BA) has extended the
deadline for its US$465 million debt-restructuring offer to give
participating creditors more time to file the necessary
paperwork, Dow Jones Newswires reports

In a filing with the stock exchange Wednesday, the Company said
it will close the offer on April 6 and doesn't expect to
postpone the offer beyond that.

The offer, which was launched Feb. 22, had been originally
scheduled to close March 23.

Transener estimates that creditors representing US$401.8
million, or 86.4% of the total eligible debt, have agreed to the
restructuring deal. At the time Transener announced its debt
offer, it had already signed a support agreement with a group of
"principal financial creditors" holding about 66.71% of the
Company's obligations.

The Company, which defaulted on its obligations in 2002 amid
Argentina's economic crisis, is aiming for a 97% acceptance rate
because that will allow it to bypass the legal-approval process
and move ahead swiftly with its debt swap.

Transener is offering three options. The first is a par bond
that matures in 2016. The second alternative is a cash payment
worth 55% of the original face value of the notes. The last
choice is a combination of Class B shares and a 2015 discount
bond that carries a 18% reduction in principal.

Argentine oil and gas producer Petrobras Energia (PECO.BA) and
local investment group Dolphin Fund Management hold equal stakes
in Citelec, Transener's holding Company. Petrobras Energia is
owned by state Brazilian oil Company Petroleo Brasileiro, or
Petrobras (PBR), which promised Argentine regulators it will
sell its stake in the power transporter. Petrobras is expected
to move ahead with that commitment once Transener has completed
its debt workout.

CONTACT:  Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


VINTAGE PETROLEUM: Outlines Performance Bonus Program  
-----------------------------------------------------
In 1999, the Board of Directors of Vintage Petroleum, Inc. (the
"Company") established the Vintage Petroleum, Inc. Discretionary
Performance Bonus Program (as amended, the "Program"). The
purpose of the Program is to enhance stockholder value by
providing eligible employees of the Company, including executive
officers, with an added incentive to achieve specific annual
targets and goals. The Program also allows the Company to remain
competitive with its peers in attracting and retaining qualified
personnel. The targets and goals are approved by the Board of
Directors.

In 2005, the Company's executive officers and all other U.S.
employees are eligible for cash incentive awards under the
Program. Each executive officer of the Company is eligible to
earn an individual award expressed as a percentage of base
salary paid during the Program year. Executive officer cash
incentive award opportunities vary by level of responsibility.
There is no minimum incentive award. The maximum percentage of
base salary payable as a cash incentive award is 75%, 105% or
150%, depending on the executive officer's position. Awards may
be granted if specified Company financial and operating
performance targets and individual performance levels are
achieved and the Board of Directors determines to grant such
bonuses.

On March 16, 2005, the Board of Directors established the
targets and goals for 2005 under the Program. During 2005,
Company financial and operating performance targets are based on
the Company's production, production replacement, lease
operating costs, and reserve additions through acquisitions. The
individual performance levels are based on the Company's
performance evaluation system. The weighting between the Company
targets and the individual performance levels vary depending on
the executive officer's position.

CONTACT: Mr. Robert E. Phaneuf
         Vice President - Corporate Development  
         Vintage Petroleum, Inc.    
         110 W. 7th St.
         Tulsa, OK 74119
         USA
         Phone: (918) 592-0101  
         Web site: http://www.vintagepetroleum.com



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B E R M U D A
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FOSTER WHEELER: Inks $53M Power Plant Contract With SembCorp
------------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWHLF) announced Wednesday that its
subsidiary Foster Wheeler Energy Limited has been awarded a $53
million contract by SembCorp Utilities UK Limited. SembCorp is
creating a new stand-alone biomass-fueled power station at its
Wilton International site on Teesside, northeast England. The
project, known as "Wilton 10," has a total investment cost of
$114 million, and is one of the UK's largest biomass renewable
energy projects.

The contract will be included in Foster Wheeler's first-quarter
2005 bookings.

"Foster Wheeler is pleased to be involved in this important
biomass-to-energy project," said Steve Davies, chairman and
chief executive officer, Foster Wheeler Energy Limited. "We are
bringing together key strengths from within the Company's global
organization. Our project execution strategy combines the
experience of our Engineering and Construction Group's Teesside
office, which has an impressive project execution track record,
with Foster Wheeler Global Power Group's proven bubbling
fluidized-bed biomass combustion technology to deliver a total
service to SembCorp to meet their business requirements."

Foster Wheeler, as the main boiler contractor, will design,
engineer, construct and commission the complete boiler island,
including the flue gas treatment system. The plant will burn
green and recycled wood and will be required to meet the
emission limits of the EU's Large Combustion Plant Directive and
Waste Incineration Directive. It will also be subject to a Best
Available Techniques assessment subject to review by the
Environment Agency of the UK. The power plant will burn around
300,000 tonnes of wood a year. This will come from a variety of
sources, including specially grown energy crops, forestry logs,
sawmill chips and recycled timber.

The Wilton 10 project is in response to a government call,
following the 1997 Kyoto Agreement, for more energy throughout
the UK to be generated from renewable sources. Commercial
operation of the plant is expected in the second quarter of
2007.

The boiler will be designed to achieve maximum efficiency using
high steam conditions and the new plant will supply 30 MWe of
electricity, enough to power around 30,000 homes. This will be
in addition to the 197 MWe of electricity being supplied from
the existing main power station.

"We were impressed with Foster Wheeler's track record in
fluidized-bed biomass combustion. By utilizing their local
office in Teesside, Foster Wheeler will be able to manage the
execution of the project in close collaboration with SembCorp,"
commented Tony Lewis, project director, SembCorp Utilities UK
Limited.

"The conversion of biomass to energy for heat and power is a
long tradition in the Scandinavian pulp and paper industry.
Since the 1970s, Foster Wheeler has supplied this industry with
fluidized-bed boilers, gathering an immense experience base of
different biomass fuels and demanding industrial requirements
for reliability. We are pleased to be able to take advantage of
this experience with the Foster Wheeler Finnish boiler
delivery," continued Mr. Lewis.

About Foster Wheeler

Foster Wheeler Ltd. is a global Company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemical, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         Media
         Ms. Maureen Bingert
         Phone: 908-730-4444
         Ms. Anne Chong
         Phone: +44-(0)118-913-2106
                or
         Other Inquiries
         Phone: 908-730-4000
         Web site: http://www.fwc.com



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B R A Z I L
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BANCO VOTORTANTIM: S&P Affirms Ratings
--------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign
currency and 'BB/B' local currency credit ratings on Banco
Votorantim S.A. The outlook remains stable.

"The ratings on Banco Votorantim incorporate the potential risks
associated with the bank's treasury business; its exposure to
sovereign risk through its government securities portfolio, a
common issue for Brazilian banks; and the risks associated with
the volatile economic environment in Brazil that might cause
asset quality deterioration," said Standard & Poor's credit
analyst Daniel Araujo.

The ratings benefit from the implicit support of the Votorantim
Group (FC: BB-/Stable/--; LC: BBB-/Stable/--); the group's
strong brand name; and the bank's good profitability. The
ratings also factor in the bank's experienced management team
and efficient decision-making processes.

Banco Votorantim's treasury is very active in providing hedge
instruments to its clients. For this reason, the bank usually
carries exposure to Brazil's sovereign risk through its
government securities portfolio and open-market operations.
These were equivalent to approximately 5.4x its equity (based on
consolidated figures) as of December 2004.

The stable outlook on Banco Votorantim's local currency rating
reflects a balance between its negative ratings factors, namely
the economic risks of the Brazilian banking industry, and the
potential risks related to asset quality, especially its car
financing segment and its holdings of government securities and
its positives, including its implicit support from the
Votorantim Group, its good business profile, and its
consistently high profitability.

The stable outlook on the foreign currency credit rating on
Banco Votorantim reflects the outlook on the sovereign credit
rating on the Federative Republic of Brazil. At current levels,
a change in the foreign currency sovereign credit rating would
lead to a similar action on the foreign currency rating on Banco
Votorantim.


NET SERVICOS: Net Loss More Than Doubles in 2004
------------------------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq: NETC; Bovespa: PLIM4 &
PLIM3; Latibex: XNET), the largest Pay-TV multi-service operator
in Latin America, and an important provider of bi-directional
broadband Internet access (Virtua), announced Wednesday its 2004
earnings results. The following financial and operating
information, except where otherwise stated, is presented in U.S.
GAAP on a consolidated basis.

a) Net Revenues reached US$ 124.9 million in the quarter, a
12.2% increase in comparison to the US$ 111.3 million recorded
in 4Q03. In 2004, net revenues grew by 19.1%, reaching US$ 467.2
million in 2004 versus US$ 392.3 million in 2003.

b) The 4Q04 consolidated EBITDA reached US$ 35.6 million, a
26.6% increase in comparison to the same period of the previous
year of US$ 28.1 million. In the year, consolidated EBITDA was
US$ 127.5 million, 29.4% higher than the US$ 98.5 million
recorded in 2003.

c) Operating income (EBIT) ended 4Q04 at US$ 20.0 million, a
58.9% increase versus the US$ 12.6 million recorded in 4Q03. In
2004, EBIT was US$ 70.3 million, 112.9%higher than the 2003
EBIT.

d) The Company recorded a Net Loss of US$ 50.0 million in the
last quarter of 2004, versus a net loss of US$ 28.7 million in
the same period of the previous year. In the year, the Company
recorded a net loss of US$ 95.8 million, 111% higher than the
2003's loss of US$ 45.4 million.

CONTACT: Net Servicos - Investor Relations
         Mr. Marcio Minoru
         Phone: (5511) 5186-2811
         E-mail: minoru@netservicos.com.br
         Mr. Rodrigo Alves
         Phone: (5511) 5186-2637
         E-mail: rodrigo.alves@netservicos.com.br
         Web site: http://www.ir.netservicos.com.br


* BRAZIL: IMF Board Completes Review of Stand-By Arrangement
------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the 10th and final review of Brazil's performance
under an SDR 27.4 billion (about US$41.75 billion) Stand-By
Arrangement that was approved in September 2002 and later
augmented and extended in December 2003 (see Press Releases No.
02/40 and No. 03/217).

Total drawings under the Stand-By Arrangement have amounted to
SDR 17.2 billion (about US$26.23 billion). Completion of the
10th review makes available an amount equivalent to SDR 910
million (about US$1.39 billion) in addition to the SDR 9.3
billion (about US$14.13 billion) that was previously made
available under the arrangement but was not drawn. Brazil has
not drawn under the arrangement since September 2003, and the
authorities have indicated that they will not make any drawings
before the arrangement expires on March 31, 2005.

Following the Executive Board's discussion of Brazil's economic
performance, on March 21, 2005, Ms. Anne O. Krueger, First
Deputy Managing Director and Acting Chair, said:

"Brazil's performance under the Stand-By Arrangement has
continued to be strong, and all performance criteria for the
tenth and final review have been met. The impressive track
record of program implementation, together with the continued
pursuit of sound macroeconomic policies and steady progress with
structural reforms are clearly paying off. GDP growth reached
5.2 percent in 2004-the highest in ten years. Domestic demand
rebounded during 2004, helped by the strengthening labor market
and reforms to facilitate access to credit. With capacity
utilization close to peak levels and rising business confidence,
private investment has surged by around 11 percent over the past
year. The recovery has also been aided by a very strong export
performance, which has led to a record current account surplus
of almost 2 percent of GDP.

"Monetary policy has continued to be appropriately cautious. In
light of the supply-side shocks faced by Brazil over the past
year, the reduction of inflation to within the target band in
2004 was a substantial achievement. The central bank's steady
tightening of monetary policy in recent months has been prudent
in the face of sticky inflation expectations and persistently
high core inflation, and should ensure that inflation stays on a
downward path, while keeping the recovery on course.

"Sustained high primary surpluses have allowed the government to
steadily reduce its debt burden. Continued strong revenue
performance and containment of nonpriority current spending in
2005 would provide room for further debt reduction and increased
spending on high-quality infrastructure projects. The progress
being made under the pilot project to strengthen mechanisms for
selecting, implementing and monitoring public investment is
encouraging.

"Brazil's vulnerabilities have continued to decline as a result
of these strong policies. The structure of public debt has
steadily improved, with the share of exchange-rate linked debt
falling considerably. Brazil's banking system has strengthened
substantially in recent years and the system coped well with the
failure of a mid-sized bank in late 2004. Reflecting recent
developments, financial market sentiment is very positive:
sovereign spreads have fallen to record lows, the real has
appreciated in recent months, and strong capital flows have
allowed the central bank to rebuild international reserves.
Moreover, the government has already funded about three quarters
of its US$6 billion external issuance requirements for 2005.

"Looking forward, continued progress on the structural reform
agenda will be key to further enhancing Brazil's growth
potential and reducing poverty and inequality. Substantial
structural advances in recent months include the enactment of
bankruptcy, private partnership and judicial reform laws and a
streamlining of foreign exchange regulations. The government's
agenda for 2005 includes important tax reforms and further
measures to strengthen the business environment. The current
context provides a favorable opportunity to advance other
priority reforms, including measures to further promote
financial intermediation, increase budget flexibility, address
remaining imbalances in the pensions system, and reduce labor
market informality and administrative barriers to doing
business," Ms. Krueger stated.

Brazil is an original member of the IMF; its quota is SDR 3.04
billion (about US$4.63 billion), and its outstanding use of IMF
credit currently totals SDR 16.1 billion (about US$24.58
billion)

CONTACT: IMF - External Relations Department
         700 19th Street, NW
         Washington, D.C. 20431 USA

         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278

         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772



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

AES GENER: Rating Reflects Relatively High Generation Cost
----------------------------------------------------------
Corporate Credit Rating:  BB+/Stable/--

Financial policy:  Moderate

Debt maturities:
  2005 US$45.1 mil
  2006 US$100.3 mil
  2007 US$46.4 mil
  2008 US$49.0 mil
  2009 US$49.4 mil
  2010 US$16.7 mil
  Thereafter US$615 mil

Total debt US$921.9 mil (not including accrued interest)

Bank lines/Liquid assets: AES Gener had US$124.2 million in
consolidated cash reserves that represented 190% of its short-
term consolidated debt as of December 2004.

Outstanding Rating(s)
AES Gener S.A.
  Sr unsecd debt
  Foreign currency:  BB+
  Sr secd debt
  Foreign currency:  BB+

AES Corp. (The)
  Corporate Credit Rating:  B+/Positive/--
   Sr unsecd debt:  B-
  Sr secd debt
   Local currency:  BB
  Sub debt
   Local currency:  B-
  Pfd stk
   Local currency:  CCC+

Chivor S.A. E.S.P.
Corporate Credit Rating B/Positive/--
  Sr secd debt
   Foreign currency:  B

Major Rating Factors

Strengths:

- Long-term power sale contracts with Chilectra S.A., Chilquinta
Energia S.A. and Minera Escondida, which provide certain cash
flow stability,

- Reliable supply source during periods of drought, although AES
Gener is a relatively high-cost generator because of its thermal
profile within a largely hydro system,

- Most of AES Gener's cash flow is generated in Chile,

- Strong demand for power and higher electricity prices in
Chile, and

- Good financial profile.

Weaknesses:

- Relatively high-cost generator in Chile,
- High natural gas supply risk in Chile, and
- High concentration of sale contracts offset by its customers'
strong credit profile.

Rationale

The 'BB+' rating on AES Gener S.A., the second-largest power
generator in Chile, reflects its relatively high generation cost
deriving from its thermal profile in a largely hydroelectric
sector and the increasing natural gas-supply risk in Chile,
which already affected the availability of its natural gas-fired
installed capacity since the first half of 2004. This risk is
offset by AES Gener's large long-term power sales contracts with
solid offtakers like Chilectra S.A. and Chilquinta Energia S.A.
in the Central Interconnected System (SIC) and with a large
copper mining Company in Chile's Northern Interconnected System
(SING), and by its good financial profile.

AES Gener's profit margin and cash flow generation are highly
dependent on the evolution of the node price, which represents
about 35% to 40% of total consolidated revenues, and also to the
spot price in the SIC because, under normal weather conditions,
the Company generally meets its large power sale contracts with
Chilectra and Chilquinta with a high level of power purchases at
low prices in the spot market. When spot prices are below AES
Gener's generation cost, the Company buys lower-cost energy from
the spot market to fulfill its power sales contracts, and thus
its margins improve. When spot prices are higher, margins fall
as AES Gener either buys more expensive energy in the spot
market or generates at its own higher cost. In this context,
adverse hydrology and the shortages in natural gas supply from
Argentina (caused by restrictions imposed by the Argentine
government on natural gas exports to Chile) increase the cost of
buying and generating power given the need to burn higher-cost
fuels and significantly influence AES Gener's margins. Standard
& Poor's expects AES Gener to weather the effects of the natural
gas restrictions without a significant deterioration of its
financial profile due to the higher node prices in the SIC and
because it considers unlikely that Argentine natural gas exports
to Chile will be fully interrupted at least in the period 2005
to 2007. Standard & Poor's expects the Chilean government to
maintain node prices to remain above US$40 per megawatt-hour
(MWh) in the SIC in coming years to promote new investments in
power generation. In this context, AES Gener's high level of
sales at the node price in the SIC should allow it to offset the
higher cost of purchases in the spot market and also part of the
increased cost of generating with higher-cost fuels to replace
natural gas. However, if Argentine natural gas exports to Chile
were highly restricted at the same time that there is poor
hydrology in the SIC, the Company's cost of sales would increase
significantly above the current projected levels and would
trigger a ratings change.

AES Gener's financial profile significantly improved after it
completed its debt-restructuring plan in June 2004, which
included a US$328 million debt reduction (26% of the total
consolidated debt held by the Company as of December 2003) and
significant extension of debt maturities to levels more in
accordance with the Company's cash generation capacity. As a
result, AES Gener's leverage decreased to a moderate 38.7% as of
Dec. 31 2004, if measured by total debt to total capital, and
funds from operations (FFO) interest coverage and FFO to total
average debt slightly improved to 3.0x and 19.9% in fiscal 2004
compared with 3.1x and 15.7%, respectively, in fiscal 2003.
However, these ratios would have reached good levels 3.7x and
21.8%, respectively, in fiscal 2004 excluding the one time
prepayment cost of Termoandes' financial debt. Although Standard
& Poor's expects coverage measures to remain volatile,
reflecting changes in hydrology in the SIC and volatile natural
gas shortages, current ratings reflect the assumption that FFO
interest coverage and FFO to total average debt will remain
above 3x and 15%, respectively, from 2005 to 2008.

AES Gener is the second-largest generator in the Chilean
electricity market, accounting for about 20% of Chile's total
generating capacity, with an installed capacity of 2,428 MW. The
Company is 98.79% indirectly owned by U.S.-based AES Corp.
(B+/Positive/--). The corporate credit rating on AES Gener is
significantly higher than that on AES Corp. In most
circumstances, Standard & Poor's will not rate the debt of a
wholly owned subsidiary higher than the debt of the parent.
However, it makes exceptions on the basis of the cumulative
value provided by enhancements, such as structural protections,
covenants, and an independent shareholder or director. The
enhancements in place for AES Gener, together with certain legal
insulation provided by Chilean bankruptcy law, provide Standard
& Poor's with sufficient comfort to allow for the current three-
notch separation.

Liquidity

AES Gener's liquidity is good and has significantly improved
after the Company implemented its debt-restructuring plan. This
is evidenced by cash reserves of US$83.1 million and US$124.2
million on an individual and consolidated basis as of Dec. 31,
2004, compared with US$30.9 million and US$65.4 million in
short-term debt maturities, respectively. Standard & Poor's
expects AES Gener to maintain a good liquidity position given
its long-term debt profile and assuming a dividend payout ratio
of about 50%, relatively low capital expenditures, normal
hydrology, and manageable natural gas supply shortages in the
SIC.

Outlook

The stable outlook incorporates Standard & Poor's expectation
that the projected relatively high node prices in the SIC will
allow AES Gener to offset higher operating costs deriving from
higher spot prices and variable generation costs and to maintain
a good financial performance. Standard & Poor's expects the
Company's FFO interest coverage and FFO to total average debt to
remain above 3x and 15%, respectively, in the period 2005-2008.
AES Gener's ratings could be upgraded if the Company can weather
the different uncertainties in the Chilean power sector and
consolidates the improvement in its financial profile. On the
other hand, ratings could be downgraded if a power supply crisis
affects the SIC and results in a strong deterioration of
financial performance.

Primary Credit Analyst: Sergio Fuentes, Buenos Aires
(54) 114-891-2131; sergio_fuentes@standardandpoors.com


MANQUEHUE NET: Bets on Broadband to Boost Profits This Year
-----------------------------------------------------------
In an effort to return to profits this year, telephony and
broadband provider Manquehue Net said it will focus on providing
broadband service and serving the corporate segment, relates
Business News Americas.

"We're betting we'll be in the black. We have systematically
decreased our loss level each year," Manquehue Net general
manager Jorge Troncoso was quoted as saying.

The Company reported a net loss of CLP3.17 billion (US$5.42mn)
in 2004, cutting by half the previous year's net loss of CLP6.17
billion.

For the first time however, the Company recorded an operating
profit in 2004, registering CLP1.31 billion, compared to an
operating loss of COP286 million in 2003 following a reduction
in operating expenses and administrative costs.

CEO Jorge Troncoso has said earlier that the Company is poised
to become profitable this year.



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

* COLOMBIA: Secures $170M Financing From World Bank
---------------------------------------------------
The World Bank approved Tuesday two loans for a total of $170
million to continue a public sector fiscal reform program, and
improve access to water supply and sanitation services
throughout Colombia.

"These loans support the Government of Colombia's development
plan through social investment and increased transparency and
efficiency of the State," said Isabel Guerrero, World Bank
country director for Colombia and Mexico. "Maintaining fiscal
balance and investing in basic services for the poor are
essential to achieve poverty reduction and faster sustainable
growth."

The $100 million Third Programmatic Fiscal and Institutional
Structural Adjustment Loan seeks to promote fiscal reforms
necessary to attain sustainable economic stability while
improving efficiency and accountability of public expenditure.

The new loan is part three of a financing plan that began in
March 2003 with a $300 million commitment, followed by a $150
million loan in November 2003.

The program will focus on the following activities:

Modernize the tax administration system by accelerating the
phase-out of tax exemptions for profits of certain firms and
increase revenues by al least 0.3% of GDP;

Improve the sustainability of public finances through the
submission of a new budget law to Congress that complements the
2003 Fiscal Responsibility Law;

Strengthen public sector revenue and expenditure control by
establishing oversight bodies for procurement and asset
management; and Improve monitoring system for the public sector
reform process.

"Sustainable fiscal and financial management is key to improve
the targeting and quality of public expenditure, especially to
secure the implementation of pro-poor social programs," said
Mario Francisco Sangines, World Bank task manager for the
project.

The $100 million, fixed-spread loan is repayable in 13.5 years,
including 8.5 years of grace.

Water and Sanitation Sector Support Project

The $70 million Water and Sanitation Sector Support Project will
improve the supply of efficient and sustainable municipal water,
sewerage, and wastewater treatment in Colombia by providing
capital investment subsidies in connection with coverage
expansion and service quality improvement in poor areas.

The project will support the following objectives:

Support service-improvement related investment through targeted
capital grants in small- and medium-size cities, and in some
high poverty peri-urban areas of large cities served by public
utilities; Scale-up the involvement of the private sector in
medium-size cities through the introduction of performance-based
management arrangements with specialized operators;

Deliver appropriate water supply and sanitation investments in
Colombia's underserved rural areas by financing the
rehabilitation and construction of basic water and sanitation
systems, including investments in water sourcing through wells
and septic and latrine disposal; and

Improve financial viability and accountability of the
participating municipalities while strengthening their
implementation capacity.

"About 1.2 million Colombians - mostly poor- will benefit from
improved access to water and sanitation services," said David N.
Sislen, World Bank senior economist and task manager for the
project. "The project will also improve the institutional and
operational profile of nearly 60 public water companies and
bring private sector management to almost a dozen utilities."

The $70 million, fixed spread loan is repayable in 15.5 years
and includes a grace period of 7.5 years.

The Water and Sanitation Sector Support Project is the first of
a three-phase program. The second phase is expected to broaden
and deepen the program's approach while putting a specific
emphasis on investments and policy reforms in Colombia's rural
areas, and the third phase is expected to focus primarily on
investments in wastewater treatment and disposal.  



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

INVERSIONES FINANCIERAS: Fitch Affirms `BB' Nat'l Scale Rating
--------------------------------------------------------------
Fitch Ratings has affirmed the `BB' national scale credit rating
of El Salvadorian financial holding Inversiones Financieras
Promerica, reports Business News Americas.

The outlook on the rating is positive.

The rating is influenced by the performance of Banco Promerica,
the Company's only subsidiary that has long-term and short-term
ratings of BB/N4.

The unit's rating reflects improving asset quality, its ability
to maintain a wide spread on its loans, and recent improvements
in capitalization.

Factors weighing on the ratings are the bank's small size and a
concentrated deposit base.

As of Dec. 2004, Banco Promerica registered US$192 million in
assets and US$164 million in deposits.



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

AIR JAMAICA: Provides More Info on Flights' Suspension
------------------------------------------------------
Air Jamaica has temporarily suspended its flights to the Eastern
Caribbean (EC) due to a shortage of available aircraft caused by
the carrier's Quality Assurance Check Program. Air Jamaica
flights from New York (JFK) and Montego Bay to three EC
destinations - Barbados, St. Lucia, and Grenada - have been
suspended for a period of four weeks. The full schedule will
resume on April 16, 2005.

During the four-week suspension of EC service, Air Jamaica will
continue to operate flights to its nine remaining Caribbean
destinations - Jamaica (Kingston and Montego Bay), Bonaire,
Curacao, the Cayman Islands, Haiti, Nassau, Turks & Caicos, and
the Dominican Republic - as well as its 13 gateways in North
America and Europe.

Air Jamaica customer relations and reservations staff are being
proactive in contacting affected passengers to re-accommodate
them on other carriers in line with IATA guidelines.
Cancellation penalties for travel to/from the EC through April
15, 2005 have also been waived.

Air Jamaica's Quality Assurance Check Program was initiated in
early February when the JCAA mandated that the airline
immediately shorten the maintenance cycle on its aircraft from
18 to 15 months following a December 2004 instruction from the
U.S. Federal Aviation Authority (FAA). This has resulted in the
temporary removal of several aircraft from the Air Jamaica
fleet.

About Air Jamaica

Air Jamaica is a service-oriented passenger airline offering
travelers a level of comfort, convenience and amenities not
commonly found in air travel today. All Air Jamaica flights
feature hot meals and complimentary champagne, wine and beer.
Even Air Jamaica's flight schedules are developed with the
customer in mind - arrival times are set early enough and
departure times late enough to ensure travelers maximize
precious vacation time. The Air Jamaica fleet is comprised of
new Airbus A320, A321 and A340 aircraft. Air Jamaica operates
300+ weekly flights connecting 13 cities in the U.S., Canada and
the UK with 12 Caribbean destinations.  

CONTACT: Air Jamaica
         8300 N.W. 33rd Street Suite 440
         Miami Fl. 33122
         Phone:  (305) 670 3222
         Fax:  (305) 669 6631
   
          

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

BALLY TOTAL: Katherine Abbott Joins Bally as VP and Treasurer
-------------------------------------------------------------
Bally Total Fitness Holding Corporation (NYSE:BFT) announces the
appointment of Katherine L. Abbott to the position of Vice
President and Treasurer, effective immediately.

"Kathy's financial and operational expertise, and previous
treasury experience make her a great asset to Bally's revamped
Finance Department," said Paul Toback, Chief Executive Officer
of Bally. "We are pleased to have Kathy as Treasurer and look
forward to her playing a significant role in the Company's
continued turnaround efforts."

In her new position, Ms. Abbott will report to Chief Financial
Officer Carl Landeck and have direct responsibility for Bally
Total Fitness's treasury operations. She will also oversee the
Company's investor relations.

Prior to joining Bally Total Fitness, Ms. Abbott was a Vice
President of the Restructuring Group for J.P. Morgan Securities,
Inc. She previously served as Vice President and Treasurer for
Budget Group Inc., a global car and truck rental Company with
revenues of over $2 billion. Ms. Abbott has also served in key
positions at Credit Agricole Indosuez and the Container
Corporation of America, where she served as the Company's
assistant treasurer. She holds a B.S. degree in Business from
Indiana University and an M.B.A. from the University of Chicago.

About Bally Total Fitness

Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers, with approximately four
million members and 440 facilities located in 29 states, Mexico,
Canada, Korea, China and the Caribbean under the Bally Total
Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle
Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R)
brands. With an estimated 150 million annual visits to its
clubs, Bally offers a unique platform for distribution of a wide
range of products and services targeted to active, fitness-
conscious adult consumers.

CONTACT: Bally Total Fitness
         Chicago
         Mr. Jon Harris
         Phone: 773-864-6850
         Web site: http://www.BallyFitness.com


PEMEX: Evaluates Hydrocarbon Reserves as of Jan. 2005   
-----------------------------------------------------
PEMEX announced Tuesday that additions to Mexico's oil and gas
reserves attributable to exploratory activity as of January 1,
2005, were 916.2 million barrels of crude oil equivalent. As a
result of the above, PEMEX replaced 57% of its production
considering proved, probable and possible reserves (3P), 29%
considering proved and probable reserves (2P) and 15%
considering proved reserves (1P). These new reserves are
comprised by reservoirs of non-associated gas and crude oil. It
is important to highlight that, taking into account the
aforementioned addition to reserves, developments and existing
field revisions, the reserve replacement of proved reserves
reached 23%. Correspondingly, PEMEX maintained the upward trend
of this indicator, which illustrates the amount of new reserves
relative to annual production.

In 2004, annual production reached 1,610.8 million barrels of
crude oil equivalent. Non-associated gas discoveries were
noteworthy and were mainly located in the North Region, while,
crude oil discoveries were mostly found in the South and Marine
Regions.

Total hydrocarbon reserves, or the accumulation of proved,
probable and possible reserves, as of January 1, 2005 were
46,914.1 million barrels of crude oil equivalent. Of this
amount, 17,649.8 million barrels were proved reserves, 15,836.1
million were probable and 13,428.2 million are possible. Within
the 3P reserves category, 71% is crude oil, 2% are condensates,
7% represents liquids from plants and 20% is dry gas.

Considering 2004 annual production, the reserves-production
ratio in crude oil equivalent is 29 years for 3P reserves, 21
years for 2P reserves and 11 years for proved reserves.

PEMEX estimates proved reserves in compliance with the
definition of proved reserves established by the Securities and
Exchange Commission (SEC). The evaluation of probable and
possible reserves is in line with the definitions determined by
the Society of Petroleum Engineers (SPE), the World Petroleum
Congresses (WPC) and the American Association of Petroleum
Geologist (AAPG).

The US Securities and Exchange Commission (SEC) permits oil and
gas companies, in their filings with the SEC, to disclose only
proved reserves that a Company has demonstrated by actual
production or conclusive formation tests to be economically and
legally producible under existing economic and operating
conditions. We use certain terms in this document, such as total
reserves, probable reserves and possible reserves, that the
SEC's guidelines strictly prohibit us from including in filings
with the SEC. Investors are urged to consider closely the
disclosure in Form 20-F, File No. 0-99, available from us at:

Marina Nacional
329 Floor 38
Col. Huasteca, Mexico City 11311
Phone: (52 55) 1944 9700
Web site: http://www.pemex.com

You can also obtain this Form from the SEC by calling
1-800-SEC-0330.

CONTACT: Petroleos Mexicanos
         Ave. Marina Nacional 329
         Mexico City, 11311
         Phone: 52-55-5722-2500
         Web site: http://www.pemex.com.


XERIUM TECHNOLOGIES: Moody's Assigns B1 Rating; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Xerium
Technologies, Inc.'s (Xerium) $650 million guaranteed senior
secured term loan B and $100 million guaranteed senior secured
revolving credit facility. Moody's also assigned a B1 senior
implied rating, B3 issuer rating, and SGL-3 speculative grade
liquidity rating to the Company. The rating outlook is stable.

Concurrent with the new bank facility the Company will be
executing an initial public offering of common equity that is
expected to generate proceeds to the Company of approximately
$212 million from a primary offering of shares. The IPO and bank
facility are contingent financings with the proceeds being used
to repay approximately $808 million of Xerium's outstanding
debt.

Xerium is a leading manufacturer and supplier of consumable roll
cover and clothing products, predominantly to the paper
manufacturing industry, and estimates its market share for roll
products at least 33% and clothing at approximately 15% of
global demand. From 1976 to 1999, Xerium grew in part through
several acquisitions and was acquired by Apax Partners (Apax), a
manager of private equity funds, in December 1999. Since its
acquisition by Apax, Xerium acquired three additional companies
and executed two recapitalizations.

The B1 senior implied rating reflects the Company's relatively
good operating performance, stable market position, geographic
diversity, and adequate liquidity. In addition, the meaningful
equity contribution will de-lever its balance sheet and lower
interest costs. However, the ratings also incorporate the
limited scope and modest size of the Company's operations, its
acquisitive nature, high customer concentration, and competitive
pressures, in addition to high debt levels and potential
dividend requirements.

Xerium has performed reasonably well despite a weak operating
environment in the paper manufacturing industry as a number of
paper machines have been either shut down or idled. Over the
past four years, the Company has generated positive free cash
flow and maintained relatively good credit metrics despite high
debt levels and ongoing restructuring actions. Going forward,
performance should improve as current cost initiatives take hold
and the operating environment within the paper industry remains
somewhat favorable. Nevertheless, the paper industry is highly
cyclical and Xerium competes against companies that are larger
and possess greater financial flexibility, such as Voith AG
(Baa1, stable), Metso Corporation (Ba1, stable), and Albany
International (not rated). Xerium stated in its most recent S-1
filing that, in 2004, pricing pressures from competitors
required the Company to reduce the size of a proposed price
increase in North America.

The contemplated transaction will have a meaningful impact on
credit metrics by reducing Xerium's debt levels by approximately
$143 million, to $665 million from $808 million, and gross
interest costs by about $25 million (cash interest costs by
about $13 million) to $42 million from $67 million. This will
result in pro forma leverage on a gross debt to adjusted EBITDA
(excluding one-time restructuring costs) basis declining to just
over 4.0x from 4.9x, and pro forma EBITDA coverage of gross
interest improving to approximately 4.0x from 2.5x for 2004.
Liquidity should also remain adequate with full availability
under its $50 million six and a half year revolving credit
facility and the expectation that the Company should remain cash
flow positive.

Despite the benefits from lower debt levels, a proposed dividend
will negatively impact cash flow and corresponding credit
metrics. Xerium is planning to pay an annual dividend of at
least $40 million, which more than offsets the benefits of lower
cash interest costs and could result in cash flow credits
metrics that are weaker post this transaction. Xerium's balance
sheet is also relatively weak with intangibles representing 34%
of total assets, which has a significant impact on asset
coverage of the bank facility. When looking at the guarantor
group of companies, the net tangible book value of assets would
be less than the anticipated $665 million of outstanding debt.
Even after incorporating the non-guarantor subsidiaries, the
consolidated book value of net tangible assets was approximately
$667 million as of December 31, 2004.

Xerium is also relatively small in size with average historical
revenues of approximately $500 million, generated from two
primary products, clothing and rolls, that are predominantly
sold to a single industry, paper manufacturing. The Company's
sales to the steel, leather, and textile industries represent
about 10% of total sales and 12% of sales are generated by roll
cover refurbishment services and mechanical services operations
in the roll segment. Xerium has been very acquisitive in the
past and, while it is Moody's understanding that no acquisitions
are currently being contemplated, the ratings allow for
moderately-sized acquisitions as long as the acquisitions are
sized commensurate with cash flow and maintain the Company's
current risk characteristics.

Xerium is also undertaking a legal entity reorganization of its
Brazilian operations, which is expected to take less than six
months and involves the aggregation of three separate businesses
under a single corporate structure. As part of the current
refinancing, the Company will have a $50 million 364-day
revolving credit facility for the sole purpose of facilitating
the reorganization. The 364-day revolver will not be available
after the reorganization in Brazil and will not be used for
anything outside the Brazilian reorganization.

The B1 rating on the senior secured bank credit facility
reflects the benefit derived from a secured interest in
substantially all of the assets of US subsidiaries and 65% of
the stock of first-tier non-domestic subsidiaries. Certain
assets of non-US subsidiaries will also secure the obligations
of non-US borrowers. The bank facility is also guaranteed by all
US subsidiaries, while certain non-US subsidiaries will
guarantee non-US borrowers. The bank credit facility will be the
only debt in the capital structure, although the credit facility
allows for the addition of up to $150 million in subordinated
debt for acquisitions.

The issuer of the bank credit facility will be Xerium, with
direct co-borrowers being Xerium Italia SpA, Stowe Woodward /
Mount Hope, Inc., Weavexx Corporation, and Huyck Austria GmbH.

The stable outlook reflects Moody's expectation that operating
performance will improve as current restructurings and cost
initiatives are realized and that management will prudently
manage its dividend policy, all of which should help reduce debt
to more moderate levels and strengthen liquidity. The outlook
assumes any acquisitions will not negatively impact Xerium's
credit metrics. We also expect a successful completion of the
Brazilian management reorganization without any impact to credit
metrics. Factors that could negatively impact the ratings and or
outlook would be a decline in credit metrics or liquidity due in
part to increased competition, deterioration in paper industry
fundamentals resulting in a decline in paper production, or a
larger-than-anticipated debt financed acquisition. However, a
sustained improvement in operating performance resulting in more
moderate debt levels, improved credit metrics, and stronger
liquidity would likely improve the ratings or outlook.

The SGL-3 speculative liquidity rating reflects Moody's view
that over the next twelve months Xerium will be able to fund all
cash requirements from internal sources, except for
extraordinary capex, but considers the Company's $50 million
revolver as modest and the cushion under its financial covenants
as relatively tight. Moody's also believes cash on the balance
sheet will remain modest over the next twelve months, due in
part to the expected dividend payout, and the Company does not
currently own any assets, outside of what is secured, that can
be monetized in the near term to satisfy liquidity needs.

Xerium Technologies, Inc., headquartered in Westborough MA, is a
manufacturer and supplier of consumable products used primarily
in the production of paper.



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

DORAL FINANCIAL: Explores Alternatives Regarding Sale of IOs
------------------------------------------------------------
Doral Financial Corporation (NYSE: DRL), a diversified financial
services Company, announced Wednesday that it was evaluating
various alternatives with respect to a possible sale of a
portion of its portfolio of interest-only strips. The Company
noted that it was engaged in preliminary discussions with a
major financial institution regarding a possible sale of a
portion of Doral Financial's IOs. The discussions are
preliminary in nature and are subject to completion of due
diligence and the negotiation of an acceptable sale agreement.
No assurance can be given that the sale will in fact be effected
or on the terms thereof.

About Doral Financial

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



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

CADAFE: To Meet Face-to-Face With Union on March 29
---------------------------------------------------
Management and workers at state-owned power utility Cadafe have
agreed to meet face-to-face on March 29 to address the dispute
that has strained the relations between both parties.

"All of our complaints will hopefully be redressed" that day,
Angel Nava, president of the Fetralec federation that groups the
unions representing Cadafe's 13,000-plus workers, was quoted by
Business News Americas as saying. "It will be a very important
meeting," Nava said.

The dispute centers on workers' safety and health-care
grievances that union officials say could result in partial
stoppages at Cadafe, the largest transmission and distribution
Company in Venezuela.

Labor ministry negotiators managed to persuade Nava to promise
that "minimum services" would be maintained even if a strike is
called.


PDVSA: Inks $202M Accord to Develop Railroads
---------------------------------------------
State oil Company Petroleos de Venezuela (PdVSA), through
subsidiary CVP, signed a VEB432 (US$202 million) billion
agreement with the Autonomous Railroad Institute to develop
Venezuela's railway infrastructure.

Specifically, VEB262 billion will be used to finalize a rail
tract stretching from Caracas to Tuy Medio, the Infrastructure
Ministry said Wednesday, adding, almost VEB169 billion will
serve to complete another rail system in Western Venezuela.

The CVP manages joint venture and third-party operating
contracts for PDVSA.

The projects fall under Venezuela's national rail plan that
calls for spending almost US$5 billion to complete some 4,000km
over the next 20 years to improve inter-regional transport plus
cargo and passenger movement to boost development.

President Hugo Chavez has vowed to revamp the nation's rail
network as part of a campaign to improve transportation in
various parts of the country.

Chavez's government has enjoyed windfall oil gains during the
past year and has used the proceeds to fund a number of
projects, particularly social spending programs popular with the
poor.

Critics of his government claim Chavez has invested little in
PdVSA itself and has distracted the Company from focusing on its
core business, oil exploration and production.


PDVSA: Enel Requests Arbitration to Recoup $200M
------------------------------------------------
PDVSA is now facing arbitration proceedings brought by Italian
energy firm Enel in the international court, reports Business
News Americas.

A top PDVSA executive suggests that Enel requested the arbitrage
in the hopes of recovering US$200 million following PDVSA's
decision to stop supplying Enel with orimulsion shortly after a
supply agreement expired on December 31, 2003.

After the contract expired, Enel sought to renew it, but PDVSA
declined.

"PDVSA has only sent them two spot shipments of orimulsion but
it won't be able to send anymore because production of
orimulsion has been completely halted", the source 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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