TCRLA_Public/050406.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, April 6, 2005, Vol. 6, Issue 67



APSA: Bids for Control Over Mendoza Plaza Shopping
ASKING EDITORES: Court Orders Liquidation
CASA SIMON: Court Sets Report Submission Dates
CERRO BAYO: Court Declares Company Bankrupt
ENTERTAINMENT DEPOT: Approved Plan Concludes Reorganization

FUNDICIONES AGENA: Court Designates Trustee for Liquidation
IMPRESIONES INTEGRALES: Proceeds With Liquidation
LA ROUE S.A.: Court Approves Concurso Motion
METROGAS: Extends Time for Debt Offer Approval to May 2
MULTICANAL: Judge's Ruling Postponed Pending SEC Decision

MUTUAL QUIMICOS: General Report Due April 22
PRECISION MEDICA: Court OKs Creditor's Bankruptcy Motion
PROAFE S.A.: Bankruptcy Proceeding Initiated
TGS: Assigns 'raBB' Rating on Bonds
TRANSPORTES OMNIBUS: Plan Gets Court Approval


INTELSAT: Genesis Uses Intelsat for North American Distribution


BRASKEM: Shareholders Approve Stock Split, Dividend Distribution
CSN: Special, General Shareholder Meetings Combined; Agenda Set
NET SERVICOS: Bradespar Disposes of Entire Equity Stake
USIMINAS: S&P Raises Outlook on LC Rating to Positive


COCA COLA EMBONOR: S&P Details Liquidity, Outlook Ratings


TERMOEMCALI FUNDING: `D' Rating Follows Missed September Payment
* COLOMBIA: Prepays $1.25B Loan to IDB


PETROECUADOR: Suffers $3M Loss From Strike, Sabotage


BANCO INDUSTRIAL: S&P Assigns 'BB-/B' Ratings; Outlook Stable


C&W JAMAICA: Court Affirms Right to Provide Service
C&W JAMAICA: Gary Barrow Leaves C&W


PDVSA: 37 Companies Keen on Rafael Urdaneta Gas License Bid
* VENEZUELA: To Sell U.S. Dollar-Denominated Bonds Worth $1B

     - - - - - - - - - -


APSA: Bids for Control Over Mendoza Plaza Shopping
Real estate investment and development company Alto Palermo S.A.
(APSA) hopes to secure its control over Mendoza Plaza Shopping
by moving to acquire the 31.2 percent stake held by Chilean
department stores chain Falabella. El Cronista reports that the
US$3 million deal, if successful, will give APSA full control
over the shopping center. Last October, the company increased
its holdings in Mendoza Plaza to 68.8 percent by purchasing the
31.2 percent stake held by the Perez Cuesta Family for US$5.3

APSA, 60.1 percent owned by IRSA, is a major player in
Argentina's retail industry. As of June last year, the company
operated and owned a majority equity interest in seven shopping
centers in the country plus a minority stake in one shopping
center property. Earning from its leases and services segment
jumped 51 percent in 2004 ending with ARP103.62 million in

ASKING EDITORES: Court Orders Liquidation
Asking Editores S.A. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court No. 23 of
Buenos Aires' civil and commercial tribunal. The declaration
effectively prohibits the company from continuing to administer
its own assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Mr. Emilio Reboiras as
trustee. Mr. Reboiras will be reviewing creditors' proofs of
claims until May 16. The verified claims will serve as basis for
the individual reports to be presented for court approval on
June 29. The trustee will also submit a general report of the
case on August 25.

Clerk No. 45 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Mr. Emilio Reboiras, Trustee
         Avda La Plata 326
         Buenos Aires

CASA SIMON: Court Sets Report Submission Dates
Mr. Eduardo Hugo Caggiano, the trustee assigned to supervise the
liquidation of Casa Simon S.R.L., will submit the validated
individual claims for court approval on June 21. These reports
explain the basis for the accepted and rejected claims. The
trustee will also submit a general report of the case on August

Infobae reports that Court No. 23 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 46 assists the court with the proceedings.

CONTACT: Mr. Eduardo Hugo Caggiano, Trustee
         Avda Corrientes 745
         Buenos Aires

CERRO BAYO: Court Declares Company Bankrupt
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared local company Cerro Bayo S.R.L. "Quiebra", relates La
Nacion. The court approved the bankruptcy petition filed by Mr.
Juan Panete, whom the Company has debts amounting to

The Company will undergo the bankruptcy process with Mr. Gustavo
Pagliere as trustee. Creditors are required to present proof of
their claims to Mr. Pagliere for verification before May 5.
Creditors who fail to submit the required documents by the said
date will not qualify for any post-liquidation distributions.

Clerk No. 18 assists the court on the case.

CONTACT: Cerro Bayo S.R.L.
         Valentin Virasoro 1638
         Buenos Aires

         Mr. Gustavo Pagliere, Trustee
         Tucuman 1424
         Buenos Aires

ENTERTAINMENT DEPOT: Approved Plan Concludes Reorganization
The settlement plan proposed by Entertainment Depot S.A. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by Court No. 4
of Buenos Aires' civil and commercial tribunal and will now be
implemented by the company.

FUNDICIONES AGENA: Court Designates Trustee for Liquidation
Buenos Aires accountant Nora Mabel Pszemiarower was assigned
trustee for the liquidation of local company Fundiciones Agena
S.A., relates Infobae. Ms. Pszemiarower will verify creditors'
claims until May 26, the source adds. After that, he will
prepare the individual reports, which are to be submitted in
court on July 7. The submission of the general report should
follow on September 5.

The city's Court No. 14 holds jurisdiction over the Company's
case. Clerk No. 27 assists with the wind-up proceedings.

CONTACT: Ms. Nora Mabel Pszemiarower, Trustee
         Corrientes 1257
         Buenos Aires

IMPRESIONES INTEGRALES: Proceeds With Liquidation
Contec S.A. successfully sought a bankruptcy from Court No. 5 of
Buenos Aires' civil and commercial tribunal. The Court declared
Impresiones Integrales "Quiebra," reports La Nacion.

Consequently, the graphic arts firm will now start the process
with Mr. Marcelo Carlos Rodriguez as trustee. Creditors must
submit proofs of their claim to the trustee by May 24 for
authentication. Failure to comply with this requirement will
mean disqualification from the payments that will be made after
the Company's assets are liquidated.

The creditor petitioned the Court to liquidate the Company after
it failed to pay debts amounting to US$39,401.89. The city's
Clerk No. 9 assists the court on the case that will close with
the sale of all of its assets.

CONTACT: Impresiones Integrales S.R.L.
         Marcelo Torcuato de Alvear 1371
         Buenos Aires

         Mr. Marcelo Carlos Rodriguez, Trustee
         Cerrito 146
         Buenos Aires

LA ROUE S.A.: Court Approves Concurso Motion
Court No. 12 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by La Roue S.A.,
according to a report from Argentine daily La Nacion. The
Company, a dealer of motor vehicles, applied to undergo a
"concurso preventivo" proceeding after defaulting on its debt
payments on November 8, 2004. It reported assets worth
US$592,586.24 and debts totaling US$1,990,332.

         Ventura Bosch 7058
         Buenos Aires

METROGAS: Extends Time for Debt Offer Approval to May 2
Natural gas distributor Metrogas (NYSE: MGS) has again permitted
additional time for approval of its debt offer with new
repayment terms in the form of an out-of-court settlement known
in Spanish as APE, reports Business News Americas. In a filing
with the Buenos Aires bourse, the utility said the new deadline
is May 2, 2005 unless further extended by the Company.

Metrogas initially invited subscription to the APE in November
2003. As of April 1, the Company said it has lined up deals for
US$85.3 million of the debt's principal.

Metrogas reported a full year 2004 net loss of ARS122.98 million
and net assets of ARS652.7 million as of Dec. 31, 2004.

U.K. energy company BG Group PLC (BRG) and Spain's Repsol-YPF
(REP) together control a 70% stake in Metrogas through a
consortium called Gas Argentino. Metrogas' employees own 10% of
the company's shares and the rest float on the stock exchange.

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

MULTICANAL: Judge's Ruling Postponed Pending SEC Decision
A judge in the Federal District Court of New York said he will
reserve his final ruling on Argentine cable operator
Multicanal's bankruptcy case until U.S. regulators decide on the
Company's proposal to fix discrimination against U.S. retail

Dow Jones Newswires reveals that, at a March 30 hearing in New
York, federal judge Alvin Hellerstein gave Multicanal 60 days to
get a no-action letter from the Securities and Exchange
Commission on the said proposal.

"I affirm Judge [Allan] Gropper's thorough and reasoned
decisions," Judge Hellerstein said in reference to the previous
U.S. bankruptcy court decisions in August 2004 and January 2005
that granted the Argentine company protection from its

"I reserve, however, final judgment until when I learn about
what the SEC does."

Following the January ruling, bondholder group Argentinian
Recovery Co., an entity formed to consolidate investment fund
W.R. Huff Asset Management's holdings in Multicanal, appealed
the case to the federal district court.

ARC argued the Company's debt offer violated U.S. retail
bondholder rights since those creditors were offered only the
cash component of the debt restructuring proposal. Other
noteholders also had the option of tendering their Multicanal
bonds for new paper and equity.

Dow Jones Newswires recalls that in August, the courts had asked
Multicanal to fix the different treatment of bondholder groups.
ARC, however, opposed the Company's plan to open the other
alternatives to U.S. retail creditors, saying it was unfair to
implement such a system without holding a fresh bondholder vote.

In addition, ARC had wanted Multicanal to register the
securities to be delivered under the restructuring with the SEC.

The cable company will now have to get a no-action letter from
U.S. regulators for its plan to offer U.S. retail bondholders
the non-cash options.

Meanwhile, Judge Hellerstein also asked Multicanal to get a
ruling that would address the issue of shareholder dilution,
since U.S. retail bondholders' opting for the equity alternative
of the debt work-out could water down what other creditors would
expect to receive.

          Avalos 2057
          (1431) Buenos Aires, Argentina

MUTUAL QUIMICOS: General Report Due April 22
Court No. 12 of San Lorenzo's civil and commercial tribunal
expects to receive a general report on the Mutual Quimicos
Papeleros de Capitan Bermudez liquidation case on April 22. The
report provides the court with an audit of the Company's
accounting and business records.

CONTACT: Mutual Quimicos Papeleros de Capitan Bermudez
         Florida 152
         Capitan Bermudez(Santa Fe)

PRECISION MEDICA: Court OKs Creditor's Bankruptcy Motion
Precision Medica Complementaria S.A. entered bankruptcy after
Court No. 8 of Buenos Aires' civil and commercial tribunal
approved a bankruptcy petition filed by ABN Amro Bank N.V.,
reports La Nacion. The Company's failure to pay US$167,489.13 in
debt prompted the creditor to file the proceeding.

Working with the city's Clerk No. 16, the court assigned Mr.
Arturo Calleja 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 their proofs of claims to the
trustee before July 6.

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: Precision Medica Complementaria S.A.
         Uruguay 978
         Buenos Aires

         Mr. Arturo Calleja, Trustee
         Lambare 1140
         Buenos Aires

PROAFE S.A.: Bankruptcy Proceeding Initiated
Court No. 3 of Buenos Aires' civil and commercial tribunal
declared Proafe S.A. bankrupt, says La Nacion. The Company
reported assets valued at US$10,811.91 and debts totaling
US$518,425.13 in its court filing.

Trustee Analia Chelala will examine and authenticate creditors'
claims until June 15. This is done to determine the nature and
amount of the Company's debts. Creditors must have their claims
authenticated by the trustee by the said date in order to
qualify for the payments that will be made after the Company's
assets are liquidated.

Clerk No. 6 assists the court on the case that will conclude
with the sale of the Company's assets.

CONTACT: Proafe S.A.
         Fitz Roy 2277
         Buenos Aires

         Ms. Analia Chelala, Trustee
         Avenida Corrientes 2335
         Buenos Aires

TGS: Assigns 'raBB' Rating on Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned an 'raBBB' rating on corporate bonds issued by
Transportadora de Gas del Sur S.A. (TGS), says the CNV.

The bonds affected are:

- US$276,600,000 worth of bonds described as "Clase A bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2010.

- US$42,900,000 worth of bonds described as "Clase A-P bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2010.

- US$233,600,000 worth of bonds described as "Clase B-A bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2013.

- US$36,200,000 worth of bonds described as "Clase B-A-P bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2013.

- US$21,700,000 worth of bonds described as "Clase B-B bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2013.

- US$3,300,000 worth of bonds described as "Clase B-B-P bajo el
Programa por hasta U$S 800 millones monto emitido" maturing on
December 31, 2013

The rating action is based on the Company's financial status as
of December 31, 2004.

TGS's operates the largest gas pipeline system in Latin America
capable of transporting 2.2 billion cubic feet per day
("bcf/d"). Its system connects the main gas fields in the south
and west areas of Argentina with the gas distributors in the
city of Buenos Aires and other areas.

CONTACT: Transportadora de Gas del Sur S.A.
         Don Bosco 3672, 5th Floor
         1206 Capital Federal
         Buenos Aires,
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         Web site:

TRANSPORTES OMNIBUS: Plan Gets Court Approval
The settlement plan proposed by Transportes Omnibus General
Pueyrredon S.R.L. for its creditors acquired the number of votes
necessary for confirmation. As such, the plan has been endorsed
by Court No. 9 of Mar del Plata`s civil and commercial tribunal
and will now be implemented by the company.

CONTACT: Transportes Omnibus General Pueyrredon S.R.L.
         Calle Arturo Alio 3.655
         Mar del Plata


INTELSAT: Genesis Uses Intelsat for North American Distribution
The Intelsat Americas(TM)-7 (IA-7) and Intelsat Americas(TM)-13
(IA-13) satellites have been selected to provide expanded North
American distribution of niche foreign language cable
programming for Genesis Networks, an emerging provider of next-
generation global video transmission services to major
broadcasters. Genesis Networks will utilize the Intelsat
Americas fleet, as part of its hybrid network, to provide end-
to-end solutions in the video transmission market.

Genesis Networks is greatly increasing its capacity on IA-13 and
purchasing a significant amount of new capacity on IA-7, giving
it access to over 3,000 digital cable headends, with the
potential to expand distribution of its customers' programming
within North America by accessing Intelsat prime cable arc
locations and distribution neighborhoods. Genesis provides
distribution services for North American cable systems for a
growing number of ethnic broadcasters from Latin America,
consisting of multiple channels from Argentina, Peru and Mexico.
In addition, Genesis has contracted with channels from India.

"IA-7 and IA-13 provide our ethnic programmers access to
thousands of cable headends in North America, giving them
critical program delivery capability upon which we build value
added services," said Paul Dujardin, President, Genesis Networks
Inc. "Intelsat's flexible support at a time of rapid growth in
our business has helped us provide our customers with a high
level of success in distributing their programming. It allows
our cable programming customers to focus on successfully
establishing and growing their own businesses by leaving the
origination and distribution in the hands of Genesis and

Ramu Potarazu, COO, Intelsat Ltd., added that, "Intelsat's prime
cable distribution neighborhoods, in combination with our
expertise in distributing ethnic programming to thousands of
people in the United States makes us well-poised to meet the
exact needs of cable programmers, post-production houses or
major media companies, and sets us apart from other operators in
this market. We are committed to helping customers maximize
their market advantage."

About Intelsat

As a global communications leader with 40 years of experience,
Intelsat helps service providers, broadcasters, corporations and
governments deliver information and entertainment anywhere in
the world, instantly, securely and reliably. Intelsat's global
reach and expanding solutions portfolio enable customers to
enhance their communications networks, venture into new markets
and grow their businesses with confidence.

CONTACT: Intelsat
         Ms. Jodi Katz
         Phone: 202-944-8223
         Web site:


BRASKEM: Shareholders Approve Stock Split, Dividend Distribution
Petrochemicals firm Braskem SA's proposal to reorganize its
shares received authorization from the Company's shareholders at
a March 31 meeting. Dow Jones Newswires reports that Braskem is
proposing a reverse stock split of its preferred shares,
exchanging one new share for every 250 existing shares.

"As a consequence, the trading value of Braskem shares will be
divided by four," the Company said in the statement.

The reorganization would lower the price per share and increase
liquidity, allowing it to tap a larger pool of investors,
including individuals. Additionally, the move would lower the
minimum number of shares required per trade to 100, from the
current 100,000.

Shareholders also approved Braskem's proposal to split its ADRs,
exchanging one new ADR for every two existing ADRs, to bring the
price per ADR in line with other Brazilian issuers. As a
consequence, each ADR will represent two new preferred shares.

Each ADR currently represents 1,000 preferred shares.

Shareholders' approval also extends to the Company's proposal to
disburse BRL204 million ($1=BRL2.66) dividend and interest
payments relative to 2004 results.

Braskem revealed it is preparing to list on Level 2 of Sao
Paulo's Bovespa stock exchange, which has stricter corporate
governance requirements than the current Level 1. The new
trading level will provide tag-along rights to all shareholders,
regardless of the class of share, in the event of a takeover,
Braskem said.

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

CSN: Special, General Shareholder Meetings Combined; Agenda Set
The Shareholders of Companhia Siderurgica Nacional are hereby
called to the Special General Meeting to be held on April 29,
2005, at 11:00 a.m., in the head office of the Company, that
shall be held at the same time of the Annual General Meeting,
originally scheduled on April 4, 2005, which is hereby recalled
to be held at the same day, April 29, 2005, at 10:00 a.m.,
located at Rua Sao Jose 20, Grupo 1602, Centro, Rio de Janeiro -
RJ, to deliberate the following Agenda:

Extraordinary General Meeting

1. Change the Company By-Laws in order to create the Audit

Annual General Meeting:

1. examination, discussion and approval of the accounts rendered
by the Company's officers, the management report and the
financial statements, referred to the fiscal year ended on
December 31, 2004;

2. ratification of the distribution of intermediary dividends in
the amount of R$35,000,000.00 approved by the Board of Directors
on June 14, 2004;

3. deliberation on the management proposal regarding the
allocation of the net profit of the fiscal year of 2004, in the
amount of R$2,144,996,655.09, and of the appraisal surplus in
the amount of R$244,846,352.46, as follows:

R$86,798,191.36 of the fiscal year net profit, to complement the
legal reserve balance, pursuant article193 of Law No. 6,404/76;

distribution of R$239,391,000.00 as interest over capital (
juros sobre o capital pr>prio ), corresponding to the gross
amount of R$0.86456 per share, and R$2,028,653,816.19 as
dividends, corresponding to the amount of R$7.32649 per share;

4. election of the members of the board of directors;

5. Approval of the global remuneration to the management in the
amount of up to R$ 30,000,000,00.

According to the provisions of Instrucao CVM No. 165, dated
December 11, 1991, as amended by Instrucao CVM No. 282, dated
June 26, 1998, it is necessary at least 5% of the voting capital
of the Company to require the implementation of multiple voting.

The Shareholders whose shares are under custody must present the
documents described in item II of article 126 of Law No.
6,404/76. The Shareholders who will be represented by an
attorney-in-fact must comply with the provisions of paragraph 1
of article 126 of Law No. 6,404/76, and must file the respective
powers of attorney with special powers of representation in the
general meetings mentioned above at the Company's head office at
least three days before the date scheduled for such meetings.

CONTACT: Companhia Siderurgica Nacional-CSN
         Av. Presidente Juscelino Kubitschek 1830
         Torre 1
         13 andar, Itaim Bibi
         Sao Paulo, SP 04543-900
         Web site:

NET SERVICOS: Bradespar Disposes of Entire Equity Stake
Holding company Bradesco Participacoes (Bradespar) has
completely divested its stake in pay television firm Net
Servicos de Comunicacao SA, reports Dow Jones Newswires.
Bradespar, through its Bradesplan Participacoes SA subsidiary,
sold its 4.75% stake in Net's preferred shares in various
transactions between January and March for an undisclosed value.

Net Servicos recently completed a BRL1.45-billion debt
restructuring. As part of the process, Mexico's Telefonos de
Mexico SA has bought into Net Servicios' share capital. The
Company will be controlled by the GB Participacoes holding
company, which is still 51% controlled by Brazilian media giant
Organizacoes Globo. Telmex owns 49% of GB, which in turn owns
51% of Net Servicios's voting shares.

Net Servicos de Comunicacao S.A. is the largest pay television
service provider in Brazil with approximately 1.4 million
subscribers. The Company maintains its headquarters in Sao
Paulo, Brazil.

CONTACT: Net Servicos - Investor Relations
         Mr. Marcio Minoru
         Phone: (5511) 5186-2811
         Mr. Rodrigo Alves
         Phone: (5511) 5186-2637
         Web site:

USIMINAS: S&P Raises Outlook on LC Rating to Positive
Standard & Poor's Ratings Services affirmed Monday its 'BB'
local-currency and 'BB-' foreign-currency corporate credit
ratings on Usinas Siderurgicas de Minas Gerais S.A. - Usiminas.
The outlook on the local-currency rating was revised to positive
from stable. The outlook on the foreign-currency rating remains

"The outlook revision reflects the improvement in Usiminas'
capital structure through the end of 2004, which we believe will
prevail even under less favorable market conditions due to the
company's conservative financial profile," said Standard &
Poor's credit analyst Reginaldo Takara.

Usiminas currently has a total consolidated debt balance that is
about US$900 million lower than the average of the previous five
years, as the company used its strong cash flow in 2003 and
extraordinary cash windfall in 2004 to reduce debt (while
keeping a prudent dividend policy and low capital expenditures).
We believe Usiminas will continue to report very strong cash
generation in 2005, which, combined with the already light
amortization schedule for the next several years, leaves the
company in a comfortable position to manage stress scenarios and
larger growth projects (such as the possible expansion of its
Ipatinga plant) without jeopardizing its conservative financial
posture or raising liquidity risks. In addition, we expect still
further debt reduction in 2005, as capital commitments this year
are not high compared with cash flows, allowing for
strengthening liquidity for eventual higher expenditures
starting in 2006.

We believe that Usiminas remains in a favorable position to pass
cost increases on and still remain competitive in the domestic
market and in a much more favored position than its
international peers in export markets. On the domestic front,
while some cooling is not ruled out with very high base interest
rates in Brazil, and some challenges may be ahead with a less
favorable global and local economic environment (with potential
turbulence in the domestic market with elections next year), we
still expect reasonably strong domestic demand for steel in the
medium term, allowing Usiminas to manage price increases so that
they are aligned with international prices.

The positive outlook on the local-currency corporate credit
rating reflects the potential for a rating increase if some
current uncertainties are solved in the medium term. We believe
that Usiminas' ratings could be raised if the company continues
to report strong profitability in the next couple of quarters,
confirming its ability to absorb cost effects, either through
price increases or by administering the mix of raw materials
purchased. We also see the company's definition about its
cherished expansion project at Ipatinga as a key medium- to
long-term credit factor because, if approved by the company's
board of directors, it will demand adequate financing in cost
and particularly in tenor that has not yet been secured. While
we already believe Usiminas is well positioned to manage
Brazil's country risks, a potential upgrade would also depend on
a scrutinized analysis of the company's exposure and
vulnerabilities to such risks in a stress scenario.

The stable outlook on the foreign-currency corporate credit
rating reflects the outlook on the foreign-currency sovereign
rating on the Federative Republic of Brazil.


COCA COLA EMBONOR: S&P Details Liquidity, Outlook Ratings

The ratings on Coca Cola Embonor S.A. (Embonor) reflect the
moderately high leverage for the rating, the challenge of
improving its financial performance in the highly competitive
carbonated soft drink market, and a low degree of
diversification. These factors are partially offset by the
leading position of this Chilean Coca-Cola bottler within its
franchised territories in Chile and Bolivia, Coca-Cola Co.'s
(KO) 45.5% ownership level (and inclusion of the Coca-Cola name
in the bottler's name), and corresponding ongoing credit
enhancement derived from some degree of implied support by KO.

During fiscal 2004, both Embonor's sales and EBITDA generation
declined by about 23% and 10%, respectively, as a result of the
sale of the Peruvian operations in early 2004. Nevertheless,
excluding the Peruvian operations, EBITDA increased by about
7.3% compared to 2003, as a result of volume increases in the
served areas of about 8.1% and the higher dollar realized prices
in Chile, due to the domestic currency appreciation (that helped
offset the exchange rate volatility and lower margins in
Bolivia). Overall, profitability is expected to improve
moderately over the medium term based on positive long-term soft
drink consumption growth fundamentals in the region,
particularly in Chile. Given relatively stable current price
levels, the EBITDA margin is expected to move in the 21%-23%
range during the next two years (versus 19.2% in 2004), making
the bottler more comparable to its industry peers in the region.
Nevertheless, this will depend on the resolution of the
political instability in Bolivia. In addition, lower debt and
interest levels, moderate investment plans, and modestly
improving cash generation projected for the next two years are
expected to translate into more adequate coverage measures of
EBITDA interest coverage of 5x or funds from operations-to-debt
ratio of nearly 20% by 2006.

Given that the Bolivian operation is relatively small in terms
of contribution to the consolidated entity, Standard & Poor's
Ratings Services does not factor Bolivian sovereign risks into
our rating on Embonor. This approach would be reassessed if
growth in more volatile territories is much greater in the
future (which seems unlikely at this point), or cash flow from
Chilean operations covers less than 1x consolidated interest.
Furthermore, excluding EBITDA from Bolivia, we estimate EBITDA
from Chile alone would provide interest coverage under severe
stress of approximately 4x by 2006, in the event that
unfavorable volatility temporarily limited cash generation in
its Bolivian franchise, and in light of the current political
instability in this country.

Embonor is the second-largest Coca-Cola bottler in Chile, where
it generated about 82% of its cash flow in fiscal 2004 (measured
as a percentage over consolidated EBITDA), and the largest Coca-
Cola bottler in Bolivia, where it has a leading market share of


We consider Embonor's liquidity position to be somewhat weak.
Cash reserves as of December 2004 were only $7.4 million, as the
proceeds from the sale of the Peruvian subsidiary were mostly
used for the repayment of debt. Nevertheless, this is mitigated
by the low short-term debt of $5.1 million as of December 2004.

In addition, because of its adequate position within the Chilean
market and its unique relationship with KO, Embonor enjoys very
good access to the domestic and global financial markets. In
this sense, in December 2004, Embonor obtained a syndicated
credit facility for up to $180 million (to be drawn through
March 2006) to pay, prepay, and/or refinance most of its
existing debt. This new facility will result in significant
interest savings from 2006 (as the interest rate is based on 6m
LIBOR plus a spread of about 100 basis points [bps; with a
pricing grid down to 70 bps] compared to the 9.875% rate for the
existing bonds), which should help Embonor to gradually
strengthen free cash flow generation, and would improve the debt
maturity profile. In addition, Embonor benefits from access to
additional noncommitted credit lines totaling approximately
$29.5 million with banks in Chile.

After the repayment of a substantial portion of the debt
denominated in local currency (with the proceeds of the sale of
the Peruvian operations in early 2004), Embonor's exposure to
foreign-denominated debt climbed to 95% of its total debt,
increasing currency mismatch risks. Nevertheless, these risks
are almost fully mitigated by hedges applied by the company (for
about 98% of total consolidated debt considering hedges taken
through March 2005).


The stable outlook on Embonor reflects our view that, while
challenged by intense competition, Embonor is well positioned to
progressively strengthen its positioning within its franchised
territories. Rating stability still relies on continued implied
operational support by KO, and incorporates expectations for
improved financial performance through the strengthening of its
internal cash-flow generation during the next two fiscal years.
Rating stability also assumes that Embonor will be able to
maintain positive free operating cash and a conservative
investment plan and dividend policy during that period. The
ratings could benefit from a significant improvement in cash
generation and additional debt reductions that translated into
ratios of fund from operations and free operating cash flow to
debt of around 40% and 25%, respectively, and debt to EBITDA of
less than 2x.

Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-


TERMOEMCALI FUNDING: `D' Rating Follows Missed September Payment

The 'D' rating on TermoEmcali Funding Corp.'s US$165 million
senior secured notes reflect the Colombian company's failure to
make its Sept. 15, 2004 debt-service payment of about $5.4
million on its 10.125% senior notes due 2014. In addition, the
project-financed entity failed to make further debt-service
payments due Dec. 15, 2004 and March 15, 2005.

TermoEmcali operates a 234 MW combined-cycle, natural-gas-fired
power generation facility, selling capacity and energy to
Emcali, a Colombian municipal utility that provides diversified
services to two million inhabitants in and around Santiago de

TermoEmcali entered a 20-year purchased-power agreement (PPA)
with Emcali to provide capacity and energy and eventually
transfer the facility to Emcali at no cost. However, after
Emcali defaulted on March 6, 2003, the PPA has not been honored.
Emcali stopped making its payments from March to December 2003
for an outstanding amount of US$44 million.

In November 2003, TermoEmcali and Empresas Municipales de Cali
(Emcali), the project's offtaker, signed a memorandum of
understanding (MOU), while pursuing an orderly restructuring of
the obligations under the PPA. The MOU expired June 30, 2004,
and although the parties have discussed extending it, Emcali has
indicated it would not continue payments under the MOU until an
energy-purchase agreement (EPA), replacing the former PPA, is
signed. In light of Emcali's suspension of payments under the
PPA and the MOU, TermoEmcali did not have adequate liquidity to
make the entire debt service payment scheduled for Sept. 15,

Despite the expiration of the MOU and Emcali's failure to
perform its obligations under the PPA, Emcali and TermoEmcali
continued to negotiate a restructuring of the PPA. In parallel
with those negotiations, TermoEmcali and a committee of
restricted bondholders and other lenders have held discussions
about restructuring the financing documents on a basis
consistent with cash flows anticipated under a restructured PPA.

In December 2004, TermoEmcali submitted to Emcali the general
restructuring agreement (GRA). Although it is TermoEmcali's
understanding that the GRA reflected the agreement reached with
Emcali, certain matters have continued to be negotiated.

Primary Credit Analyst: Federico Mora, Mexico City (52) 55-5081-

Secondary Credit Analyst: Fabiola Ortiz, Mexico City (52) 55-

* COLOMBIA: Prepays $1.25B Loan to IDB
President Alvaro Uribe announced that his government paid off on
Friday a US$1.25-billion loan to the Inter-American Development
Bank ahead of schedule, allowing it to save at least US$115
million in high interest costs between 2005 and 2008, relates
the Associated Press.

In an interview with the local RCN Radio, Mr. Uribe said the
government is taking advantage of a strengthening peso against
the U.S. dollar to pay off the loan.

"By prepaying it, this gives us a very good reputation in the
banks, in the international markets and allows us to begin to
obtain 20- or 30-year credits," Mr. Uribe said.

The dollar has devalued against the Colombian peso by 13% over
the past year. Uribe said the devaluation also propelled the
government to convert US$3 billion public debts in dollars to
pesos in order to save money.


PETROECUADOR: Suffers $3M Loss From Strike, Sabotage
State oil company Petroecuador lost US$2.94 million in oil
revenues over a three-day period last week following a strike by
workers and a sabotage in Ecuador's Amazon region, reports
Business News Americas.

>From March 31 to April 2, nearly 300 workers from security
company Vargas Cedeno, whose contracts with Petroproduccion had
expired, blocked entrance roads to the Auca field in Orellana
province, forcing the unit to cut oil production by a total
58,645 barrels.

Contributing to the loss is the theft of electricity cables from
the Libertador field in Sucumbios province. This incident
resulted in an additional 2,300-barrel loss as operations on the
Atacapi 14, Secoya and Pichincha wells were halted.


BANCO INDUSTRIAL: S&P Assigns 'BB-/B' Ratings; Outlook Stable
Standard & Poor's Ratings Services assigned its 'BB-/B'
counterparty credit and CD ratings to Banco Industrial S.A. The
outlook is stable. At the same time, Standard & Poor's assigned
its 'BBB-' bank survivability assessment.

"The ratings assigned to Banco Industrial S.A. consider its
leading market position and adequate financial profile," said
Standard & Poor's credit analyst Francisco Suarez. The bank's
modest efficiency levels, a vulnerable regulatory framework for
the Guatemalan financial system, and the slow economic
environment in which the bank operates limit the rating level.

The 'BBB-' bank survivability assessment takes into
consideration Banco Industrial's relevance to Guatemala's
banking system, and its good liquidity levels. Standard & Poor's
bank survivability assessment is a current opinion on the
likelihood that over the medium-tem, a bank will continue to
operate either directly or through a successor organization
regardless of whether it is solvent or insolvent or is paying
all of its obligations on a timely basis or not. The
survivability assessment, however, does not itself comment on
which particular functions the bank might continue to perform
and which it may cease in a stress situation.

As the largest bank in Guatemala, Banco Industrial benefits from
a large and stable deposit base, strong brand-name recognition,
and the largest branch network with 186 full-service branches,
84 kiosks, and 245 ATMs of its own network located throughout
Guatemala. It had a market share of 20% in terms of assets and
19% in terms of deposits. Concentration in the Guatemalan
banking industry is high, as the seven largest banks concentrate
71% of total assets. The importance of Banco Industrial to
Guatemala's payment system is high, as 24% of total transactions
are done through its network.

In spite of challenges derived from the competitive environment
and the limited structure of the Guatemalan economy, it is
expected that Banco Industrial's financial profile and strong
market presence will be maintained. As investments on expanding
its branch and technological networks are assimilated,
efficiency should show modest improvements. As growth trends are
expected to remain strong, the bank has the challenge to
maintain capital and asset quality levels similar to the ones
reported historically.

Primary Credit Analyst(s): Jaime Carreno, Mexico City (52) 55-

Francisco Suarez, Mexico City (52) 55-5081-4474;


C&W JAMAICA: Court Affirms Right to Provide Service
Jamaica's Supreme Court passed a landmark judgment in February
when it ruled that Cable and Wireless Jamaica had a legal right
to provide service to costumers even if they are squatters on
the property, says the Jamaica Observer. The ruling countered
the generally held belief that squatters have no right to
services on captured land.

The court decision surprised Robert and Marjorie Evans, legal
owners of the property, because his case hinged on the fact that
C&WJ's clients were illegal occupants of their property. The
Evans' will be appealing the ruling.

Apart from stating that C&WJ did not trespass when it ran
telephone wires on the property at the request of the squatters,
the ruling also emphasized the phone company's obligation to
provide service that customers contract, creating a relationship
that begins when the customer applies for service.

C&W JAMAICA: Gary Barrow Leaves C&W
Gary Barrow ends his 15-year service under the Cable & Wireless
organization with the announcement of his resignation, five
months after his transfer to the Company's London office. The
Jamaica Gleaner reported Saturday that Mr. Barrow is leaving the
Company after the completion of his review of the Company's
liberalization and post-liberalization strategy in the Caribbean
telecom market.

The report quotes Cable and Wireless Jamaica and CEO for the
Caribbean Len de Barros as saying that Mr. Barrow's study "will
help ensure the successful transition of our other businesses to
achieve high performance in liberalized markets and maintain and
strengthen customer service and customer confidence."

Cable & Wireless Jamaica is the domestic and international
franchise carrier in Jamaica of Cable & Wireless and has been
fully digital since 1991. Cable & Wireless Jamaica is also the
leading mobile operator with a totally digital mobile network.
The company also offers a wide range of IP and Data Services and
is the leading Internet Services Provider on the island.

CONTACT: Cable & Wireless Jamaica
         47 Halfway Tree Road
         PO Box 21
         Kingston 5
         Web site:


PDVSA: 37 Companies Keen on Rafael Urdaneta Gas License Bid
A total of 37 oil companies from various parts of the world
confirmed their attendance to the event organized by the
Ministry of Energy and Oil to present the first phase of the
Rafael Urdaneta Project, in which 5 blocks will be offered for
bid in the area offshore the Gulf of Venezuela and one as
development block in La Vela Sur, State of Falcon.

Companies from the United States, England, Russia, China, Japan,
France, Brazil, Argentina, Spain, Netherlands, Norway, Algeria,
Iran, Italy, Canada and Venezuela, among others, have shown
interest in participating in this selection process to bid for
free gas licenses.

A minimum exploratory program should be undertaken in these
blocks, including seismic study and drilling one well within a
24 months term. The Rafael Urdaneta Project encompasses 29 areas
in all, where it is expected to find 26 TCF (trillion cubic
feet) of gas.

The official act will be held at the Villa Caribe Hotel located
in Los Taques, State of Falcon. The Minister of Energy and Oil,
Rafael Ramirez and other regional government officials will be
there, together with national and international companies'
representatives interested in bidding for these licences.

Similarly, national and regional representatives interested in
participating in the endogenous development issues related to
the activities linked to those licences will be present.

Among the companies that confirmed their attendance are: Amerada
Hess, Anadarko, Billington, Bp, British Gas, ChevronTexaco,
CNPC, ConocoPhillps, El Paso Corp., Eni, ExxonMobil, Gazprom,
Inelectra, Lukoil, Marubeni, Mitsubishi, Mitsui, Nimir,
Occidental, ONGC, Perenco, Petrobras, Petrocanada, Petropars,
Pluspetrol, Repsol, Samsung, Shell, Sonatrach Petroleum,
Statoil, Suelopetrol, Tecnoconsult, Tecpetrol, Teikoku Dil,
Total, Vincler Oil and West Falcon Samson.

During the event, general aspects of the Rafael Urdaneta
Project, that is part of the National Gas Plan, will be
explained. Under this Plan, several licences have already been
granted to explore for, and produce gas onshore and in the
Paltaforma Deltana region.

Similarly, bid information packages with information about the
areas will be available for companies interested in bidding for
these licences to explore for, and produce free gaseous
hydrocarbons offshore the Gulf of Venezuela and the Northeast of
the State of Falcon . These areas have low exploratory risks and
geologic characteristics that make them potentially prolific in
gaseous hydrocarbons.

With the Rafael Urdaneta Project, the Ministry of Energy and Oil
wants to promote the development of the country's gas potential,
in order to improve the quality of life of Venezuelans and
leverage industrial park development, pursuant to the Law on
Gaseous Hydrocarbons, the National Development Plan, and the
National Gas Plan.

* VENEZUELA: To Sell U.S. Dollar-Denominated Bonds Worth $1B
Venezuela, the world's fifth-largest supplier of oil, will issue
bonds for US$1 billion on domestic markets, reports Bloomberg.
The Finance Ministry announced the government will sell bonds
denominated in U.S. dollars to investors who will pay bolivars
at an exchange rate of 2,150 per dollar, about equal to the
government's fixed exchange rate. The bonds will expire in 2025
and Citigroup and JP Morgan will be in charge of the

According to the ministry's statistics, Venezuela owes US$26.4
billion in foreign debt, and US$12.97 billion to local
investors. The oil producing country expects to finance its debt
this year through various overseas and local debt issues.


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *