TCRLA_Public/050413.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 13, 2005, Vol. 6, Issue 72

                            Headlines

A R G E N T I N A

AEROLINEAS ARGENTINAS: Marsans Firm on Keeping Majority Stake   
ALUNAMAR S.A.: Reports Submission Set
BANCO BISEL: Schedules Shareholders Meeting
IRSA: Noteholder Exercises Conversion Right
JJ FELICIDADES: Proceeding With Liquidation

LA BRESCIANA: Gets Court Approval for Reorganization
LITTLE PALACE: Court Grants Reorganization Plea
MAQUIRENTAL S.A.: Court OKs Creditor's Bankruptcy Petition
METRO MEDICION: Court Approves Bankruptcy
NEW CATERING: Liquidates Assets to Pay Debts

PESCADOS Y MARISCOS: Trustee Readies Report for Submission
PROALBA S.A.: Submits Reorganization Petition in Court
SENOR KAFEGO: Court Declares Company Bankrupt
TAPAMAR S.A.: Debt Payments Halted, Moves to Reorganize
TRANSENER: Fitch Maintains Default Rating on $450M Bonds

* ARGENTINA: Bond Exchange A "Success" Despite Holdouts


B A R B A D O S

COURTS: Planned Sale Attracts Interest From a Number of Firms


B E R M U D A

FOSTER WHEELER: Conducts Coal-to-Liquids Study
GLOBAL CROSSING: SEC Concludes Reciprocal Transactions Probe
INTER-OCEAN HOLDINGS: Ceases Underwriting, Enters Run Off
INTER-OCEAN HOLDINGS: A.M. Best Downgrades, Withdraws Ratings
LORAL SPACE: Begins Construction of TerreStar Satellite


B R A Z I L

AES CORPORATION: Draws Flak for City Hall Black Out
CSN: Drop in Shares Unrelated to Purchase of Tin Mine


C O S T A   R I C A

ICE: To Bring Back Special Service Lines to Boost Sales


M E X I C O

EAGLEPICHER: Mexican Ops Excluded in Bankruptcy Filing
GRUPO DESC: Signs IT Service Contract With NEORIS
GRUPO MEXICO: Asarco Resorts to Chapter 11 to Deal With Claims
MEXICANA DE AVIACION: Unveils New Airline
VITRO: Finacity Posts Details of Receivables Securitization


P E R U

ENAFER: Liquidator Releases Updates on Status of Liquidation


V E N E Z U E L A

PDVSA: Reports Higher Net Income in 2004
PDVSA: PowerSeraya Certain of Continued Orimulsion Fuel Supply
PDVSA: To Discuss Wind Power Project With Cadafe This Week

     -  -  -  -  -  -  -  -

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

AEROLINEAS ARGENTINAS: Marsans Firm on Keeping Majority Stake   
-------------------------------------------------------------
Grupo Marsans revealed its plans for Aerolineas Argentinas,
quelling rumors of an impending bail out from the troubled
Argentine carrier.

Business Latin America reports that the Spanish Company is
committed to upgrading Aerolineas' fleet as well as its
facilities over the next six years.

Marsan's CEO says that on the drawing board are plans to
purchase 15 Boeing 737/500 jets and two Airbus 310s to augment
the carrier's stable. The airline could also expect to offer
better international flights with the proposed acquisition of
two Jumbo 747/400s. New headquarters for the airline is also
being considered.

Hints of Grupo Marsans exit from Argentina surfaced following a
protracted legal dispute with the government over the unit's
2003 results. Officials had rejected the financial statements
that were required for Aerolineas' IPO.

CONTACT: AEROLINEAS ARGENTINAS
         Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
         Phone: (54-11) 4310-3000
         Fax: (54-11) 4310-3585
         E-mail: volar@aerolineas.com.ar
         Home Page: www.aerolineas.com.ar


ALUNAMAR S.A.: Reports Submission Set
-------------------------------------
Local accounting firm "Estudio Mendez Scolnik y Asoc," the
trustee assigned to supervise the reorganization of Alunamar
S.A., will submit validated individual claims for court approval
on August 3. These reports explain the basis for the accepted
and rejected claims. The trustee will also submit a general
report of the case on September 9.

Infobae reports that Court No. 24 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this case. The city's
Clerk No. 47 assists the court with the proceedings.

CONTACT: "Estudio Mendez Scolnik y Asoc."
         Trustee
         Avda Segurola 1791
         Buenos Aires


BANCO BISEL: Schedules Shareholders Meeting
-------------------------------------------
Argentine bank Banco Bisel has called a general shareholders'
meeting for May 4, 2005, Business News Americas report, citing a
filing with the Buenos Aires stock exchange.

Bisel is one of three banks taken over by the Argentine
government in early 2002 when French banking conglomerate Credit
Agricole SA left Argentina in the middle of the country's
financial crisis.

Bisel is yet to find a new owner.

CONTACT:  Banco Bisel S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Argentina
          Phone: 0341-4200300
          Web Site: http://www.bancobisel.com.a


IRSA: Noteholder Exercises Conversion Right
-------------------------------------------
Inversiones y Representaciones S.A. (IRSA) reports that a holder
of Company's Convertible Notes exercised it conversion right.
Hence, the financial indebtedness of the Company shall be
reduced in US$ 28,984 and an increase of 53,181 ordinary shares
face value pesos 1 (V$N 1) each was made.

The conversion was performed according to terms and conditions
established in the prospectus of issuance at the conversion rate
of 1.83486 shares, face value pesos 1 per Convertible Note of
face value US$ 1. As a result of that conversion the amount of
shares of the Company goes from 338,372,526 to 338,425,707. On
the other hand, the amount of registered Convertible Notes is
US$ 63,354,010.

IRSA is Argentina's largest, most well-diversified real estate
Company, and it is the only Company in the industry whose share
are listed on the Bolsa de Comercio de Buenos Aires and The New
York Stock Exchange.

Through its subsidiaries, IRSA manages an expanding top
portfolio of shopping centers and office buildings, primarily in
Buenos Aires. The Company also develops residential subdivisions
and apartments (specializing in high-rises and loft- style
conversions) and owns three luxury hotels.

Its solid, diversified portfolio of properties has established
the Company as the leader in the sector in which it
participates, making it the best vehicle to access the Argentine
real estate market.

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


JJ FELICIDADES: Proceeding With Liquidation
-------------------------------------------
Banca Nacionale del Lavoro S.A. successfully sought the
bankruptcy of JJ Felicidades S.A. after Court No. 18 of Buenos
Aires' civil and commercial tribunal declared the Company
"Quiebra," reports La Nacion.

As such, the Company will now start the process with Mr. Jorge
Del Hoyo as trustee. Creditors must submit proofs of their claim
to the trustee by May 26 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 city's Clerk No. 35 assists the court on the case that will
close with the sale of all of its assets.

CONTACT: JJ Felicidades S.A.
         Lavalle 2616
         Buenos Aires

         Mr. Jorge Del Hoyo, Trustee
         Avenida Presidente Julio Argentino Roca 610
         Buenos Aires


LA BRESCIANA: Gets Court Approval for Reorganization
----------------------------------------------------
La Bresciana S.A.C.I.F.I. will begin reorganization following
the approval of its petition by Court No. 7 of Quilmes' civil
and commercial tribunal. The opening of the reorganization will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

Ms. Alicia Tellechea oversees the reorganization as the court-
appointed trustee. She will verify creditors' claims until June
3. The validated claims will be presented in court as individual
reports on July 19.

Ms. Tellechea is also required to submit a general report
essentially auditing the Company's accounting and business
records as well as summarizing important events pertaining to
the reorganization. The report will be presented in court on
August 30.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on March 2 next year.

CONTACT: La Bresciana S.A.C.I.F.I.
         Calle 321 Nro. 2666
         Quilmes

         Ms. Alicia Tellechea, Trustee
         Garibaldi 204
         Quilmes


LITTLE PALACE: Court Grants Reorganization Plea
-----------------------------------------------
Little Palace S.A. successfully petitioned for reorganization
after Court No. 26 of Buenos Aires' civil and commercial
tribunal issued a resolution opening the Company's insolvency
proceedings.

Under insolvency protection, the Company will continue to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee.

Infobae relates that Mr. Pablo Amante will serve as trustee
during the course of the reorganization. The trustee will be
accepting creditors' proofs of claims for verification until May
20.

After verifications, the trustee will prepare the individual
reports and submit it in court on July 5. He will also present a
general report for court review on August 31.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on December 20.

CONTACT: Little Palace S.A.
         Guemes 3856
         Buenos Aires

         Mr. Pablo Amante, Trustee
         Lavalle 1537
         Buenos Aires


MAQUIRENTAL S.A.: Court OKs Creditor's Bankruptcy Petition
----------------------------------------------------------
Mr. Carlos Carrido successfully sought the bankruptcy of
Maquirental S.A. after Court No. 4 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra," reports La
Nacion.

As such, the heavy machinery distributor will now start the
process with Mr. Roberto Hermida as trustee. Creditors must
submit proof of their claims to the trustee by June 26 for
authentication. Failure to do so will mean a disqualification
from the payments that will be made after the Company's assets
are liquidated.

The creditor requested the Company's liquidation after the
latter failed to pay debts amounting to US$34,366.90.

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

CONTACT: Maquirental S.A.
         Avenida Montes de Oca 1771
         Buenos Aires

         Mr. Roberto Hermida, Trustee
         Tucuman 1668
         Buenos Aires


METRO MEDICION: Court Approves Bankruptcy
-----------------------------------------
Metro Medicion S.A. was declared bankrupt after Court No. 21 of
Buenos Aires' civil and commercial tribunal endorsed the
petition of Mr. Marcelo Meriggi for the Company's liquidation.
Argentine daily La Nacion reports that Mr. Meriggi has claims
totaling US$52,189.61 against the Company.

The court assigned Ms. Maria Barbieri to supervise the
liquidation process as trustee. Ms. Barbieri will validate
creditors' proofs of claims until May 3.

The city's Clerk No. 42 assists the court in resolving this
case.

CONTACT: Metro Medicion S.A.
         Bartolome Mitre 1131
         Buenos Aires
  
         Ms. Maria Barbieri, Trustee
         Avenida Cabildo 2040
         Buenos Aires


NEW CATERING: Liquidates Assets to Pay Debts
--------------------------------------------
New Catering S.R.L. will begin liquidating its assets following
the bankruptcy pronouncement issued by Court No. 18 of Buenos
Aires' civil and commercial tribunal, Infobae reports.

The ruling places the Company under the supervision of court-
appointed trustee Javier Marcelo Espineira. The trustee will
verify creditors' proofs of claims until May 18. The validated
claims will be presented in court as individual reports on July
1.

Mr. Espineira will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on August 29.

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

CONTACT: Mr. Javier Marcelo Espineira, Trustee
         Viamonte 783
         Buenos Aires


PESCADOS Y MARISCOS: Trustee Readies Report for Submission
----------------------------------------------------------
Pescados y Mariscos S.A., a Company operating in Buenos Aires,
starts its reorganization with the appointment of Mr. Manuel
Camilo Arias as trustee for the case.

Infobae reports that the Mr. Arias will verify creditors' claims
until June 2. Afterwards, he will present these claims as
individual reports for final review by the court on August 1.
The trustee will also provide the court with a general report of
the case on September 12.

The court has scheduled the informative assembly on March 9,
2006.

Court No. 13 of the city's civil and commercial tribunal has
jurisdiction over this case. The city's Clerk No. 25 assists
with the proceedings.

CONTACT: Pescados y Mariscos S.A.
         Avda Rivadavia 1427
         Buenos Aires

         Mr. Manuel Camilo Arias, Trustee
         Amenabar 2529
         Buenos Aires


PROALBA S.A.: Submits Reorganization Petition in Court
------------------------------------------------------
Court No. 17 of Buenos Aires' civil and commercial tribunal is
reviewing the merits of a petition to reorganize presented by
Proalba S.A.

La Nacion recalls that the chemical Company filed the petition
following cessation of debt payments on February 10 this year.
Reorganization will allow the Company to avoid bankruptcy by
negotiating a settlement with its creditors.

Proalba has stated assets of US$379,108.54 and liabilities
totaling US$255,317.89.

The city's Clerk No. 34 assists the court on this case.

CONTACT: Proalba S.A.
         Maipu 267
         Buenos Aires


SENOR KAFEGO: Court Declares Company Bankrupt
---------------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal
declared local Company Senor Kafego S.R.L. "Quiebra", relates La
Nacion. The court approved the bankruptcy petition filed by
Tersuave S.A., whom the Company has debts amounting to
US$11,000.

The Company will undergo the bankruptcy process under the
supervision of trustee Aldo Cambiasso. Creditors are required to
present proof of their claims to Mr. Cambiasso for verifications
by June 6. Creditors who fail to submit the required documents
by the said date will not qualify for any post-liquidation
distributions.

Clerk No. 3 assists the court on the case.

CONTACT: Senor Kafego S.R.L.
         Avenida Pueyrredon 749
         Buenos Aires

         Mr. Aldo Cambiasso, Trustee
         Cerrito 1070
         Buenos Aires


TAPAMAR S.A.: Debt Payments Halted, Moves to Reorganize
-------------------------------------------------------
Court No. 24 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
Company Tapamar S.A., says La Nacion.

The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments at the
end of 2001.

The city's Clerk No. 48 assists the court on this case.

CONTACT: Tapamar S.A.
         Avenida del Libertador 774
         Buenos Aires


TRANSENER: Fitch Maintains Default Rating on $450M Bonds
--------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a 'D(arg)'
rating on US$450 million worth of corporate bonds issued by the
Argentine high-voltage power transporter Compania de Transporte
de Energia Electrica de Alta Tension Transener SA.

Securities regulator CNV says the action affected bonds
described as "Programa Global de Obligaciones Negociables
simples no convertibles en acciones." These bonds matured on
March of 2003.

Another US$345 million worth of Transener bonds were given
B(arg) ratings. The affected bonds are:  

- US$100 million worth of bonds described as "ONs Clase 6 a la
Par con Oferta Publica por hasta U$S 100 MM."

- US$245 million worth of bonds described as "ONs Clase 7 con
Descuento con Oferta Publica por hasta U$S 245 MM."

Fitch took the action based on the Company's financial health as
of December 31, 2004.

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


* ARGENTINA: Bond Exchange A "Success" Despite Holdouts
-------------------------------------------------------
Argentina will not engage in talks with holdout creditors
despite calls by the International Monetary Fund to the
contrary, Bloomberg reports, citing Economy Minister Roberto
Lavagna.

Lavagna said the government has no obligation to deal with
investors holding US$20 billion in defaulted bonds after they
spurned the debt swap.

"Nobody should try to force negotiations or a reopening because
it isn't going to happen," Lavagna said in response to IMF
spokesman Thomas Dawson's comments on April 8 that the country
should "develop a realistic strategy" to resolve the demands of
non- participating bondholders.

Although the defaulted sovereign bonds exchange operation was
considered a "success" by Argentine authorities because 76% of
creditors adhered, an estimated US$20 billion out of a total
US$82 billion rejected the offer, which basically meant
exchanging one US dollar face value for 33 US cents.

During an Inter-American Development Bank meeting in Japan on
the weekend, Lavagna said the country would deal with the
holdouts in "due course." Lavagna denied his weekend comments
imply the country will reopen the exchange. Newspaper headlines
today [Monday] in Argentina suggesting it would negotiate with
holdouts are wrong, he said.


===============
B A R B A D O S
===============

COURTS: Planned Sale Attracts Interest From a Number of Firms
-------------------------------------------------------------
KPMG, the administrator to collapsed U.K-based furniture
retailer Courts PLC, has received expressions of interest from
several firms in connection to the planned sale of the Caribbean
operations of Courts Plc.

This, according to Barbados Daily Nation, was confirmed by
Charles Elphick, head of corporate communications with Courts
Plc.

KPMG had "received expressions of interest from a number of
parties who want to acquire Courts Plc's international
businesses as a whole or separately," Elphick said.

Courts Plc owns stores in Barbados, Jamaica, Belize, Dominica,
Trinidad and Tobago, St Kitts-Nevis, Antigua, St Lucia, St
Vincent and the Grenadines, Grenada, and Guyana. Their total
turnover is about US$600 million.

Elphick stressed that Courts' overseas businesses were
"profitable and valuable assets", which the administrator and
the Plc management want to continue to perform in order to
enhance their value.

KPMG has not yet entered into detailed discussions with
prospective buyers as it is still finalizing its strategic
review.

CONTACT:  Mailing Address:
          Courts Barbados Ltd
          P.O. Box 689C
          Bridgetown
          Barbados

          Registered Offices and Head Office:
          Courts Barbados Ltd.
          St. George Street
          Bridgetown
          St. Michael

          Head Office Telephone & Fax:
          Tel: +(246)-431-6850
          Fax: +(246)-429-5445



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

FOSTER WHEELER: Conducts Coal-to-Liquids Study
----------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWHLF) announced Monday that its UK
subsidiary, Foster Wheeler Energy Limited, in a joint venture
with China Huanqiu Contracting & Engineering Corp., has been
awarded a feasibility study Stage I contract by Sasol Synfuels
International (Proprietary) Limited (Sasol) and its Chinese
partners, China Shenhua Coal Liquefaction Corporation Ltd. and
Ningxia Luneng Energy and High Chemistry Investment Group Co.,
Ltd. (jointly called "the Combined Chinese Working Team").

The Foster Wheeler contract value was not disclosed. The project
will be included in the Company's first-quarter 2005 bookings.

The contract is related to two 80,000 barrels per day coal-to-
liquids (CTL) facilities to be located at Ningxia Autonomous
Region and Shaanxi Province, respectively, both in the coal-rich
western part of the People's Republic of China.

"Foster Wheeler is delighted to be awarded this contract by
Sasol and the CCWT," said Steve Davies, chairman and chief
executive officer of Foster Wheeler Energy Limited. "This first
use of Sasol's CTL technology outside South Africa builds on the
relationship developed over the last eight years between Foster
Wheeler and Sasol, optimizing and engineering the application of
Sasol's gas-to-liquids (GTL) technology in the global
marketplace, and on our long track record of delivering
successful projects in China.

"Coal-to-liquids is a key part of the Chinese government's
energy strategy, and we are pleased to be involved at the early
stages of its implementation and to be involved with other
companies so well-placed to ensure its rapid and commercial
development," continued Mr. Davies.

Coal-to-liquids comprises an integrated process for the
conversion of coal into selected fuel products such as diesel,
naphtha and liquefied petroleum gas by using a combination of
three principal processes, i.e., gasification of coal to
synthesis gas, conversion of gas-to-liquids and hydrocracking
the converted products into fuel products. The three processes
will involve separate technologies, central to which is Sasol's
low-temperature Fischer-Tropsch technology for the conversion of
synthesis gas to liquid fuels.

The Foster Wheeler/Huanqiu joint venture will evaluate the
available technologies for the projects and complete feasibility
study Stage I work to integrate these with the associated
utilities and infrastructure systems in order to maximize the
value of the project to its shareholders. Huanqiu will provide
gasification experience together with the essential local
technical, commercial and legislative information to ensure the
study conclusions are robust.

The study is scheduled for completion by the end of the year.

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


GLOBAL CROSSING: SEC Concludes Reciprocal Transactions Probe
------------------------------------------------------------
Global Crossing (NASDAQ: GLBC) announced Monday that the U.S.
Securities and Exchange Commission (SEC) investigation of the
Company's reciprocal purchases and sales of telecommunications
capacity with other carriers and related matters has been
resolved by the SEC's entry of an administrative order.

"We're happy to have reached a settlement with the SEC and that
we can put these issues solidly behind us without a finding of
fraud or a financial penalty against the Company," said Global
Crossing CEO John Legere. "We look forward to focusing on Global
Crossing's bright future and building our brand as a provider of
IP services to our customers around the world."

The order finds that the Company did not comply with certain
reporting obligations under the securities laws and requires the
Company to cease and desist from committing any future
violations. In addition, the order states that the SEC staff
received significant cooperation from the Company during the
course of its investigation. No fines or penalties were assessed
against the Company, and the order does not include a finding of
fraud. The Company neither admitted nor denied the SEC's
findings.

Global Crossing first announced that the SEC was conducting a
formal investigation into allegations regarding its reciprocal
transactions in February 2002.

About Global Crossing

Global Crossing (NASDAQ: GLBC) provides telecommunications
solutions over the world's first integrated global IP-based
network. Its core network connects more than 300 cities and 30
countries worldwide, and delivers services to more than 500
major cities, 50 countries and 6 continents around the globe.
The Company's global sales and support model matches the network
footprint and, like the network, delivers a consistent customer
experience worldwide.

Global Crossing IP services are global in scale, linking the
world's enterprises, governments and carriers with customers,
employees and partners worldwide in a secure environment that is
ideally suited for IP-based business applications, allowing e-
commerce to thrive. The Company offers a full range of managed
data and voice products including Global Crossing IP VPN
Service, Global Crossing Managed Services and Global Crossing
VoIP services, to more than 40 percent of the Fortune 500, as
well as 700 carriers, mobile operators and ISPs.

CONTACT: Ms. Becky Yeamans
         Phone: + 1 973-937-0155
         E-mail: PR@globalcrossing.com

         Analysts/Investors Contact
         Ms. Laurinda Pang
         Phone: + 1 800-836-0342
         E-mail: glbc@globalcrossing.com
         Web site: http://www.globalcrossing.com


INTER-OCEAN HOLDINGS: Ceases Underwriting, Enters Run Off
---------------------------------------------------------
Inter-Ocean Holdings Ltd., a Bermuda-based finite risk
reinsurer, has ceased underwriting and will run off the business
of its reinsurance units, reports Royal Gazette.

"After much consideration, the board of directors of Inter-Ocean
has decided to put the Company into voluntary runoff," an Inter-
Ocean spokeswoman said. "Current management will be retained in
order to direct the Company's runoff operations."

The Company didn't release details to back its decision, though
analysts have cited the mounting regulatory scrutiny of finite
reinsurance as a potential roadblock to Inter-Ocean's future
business prospects.

Business Insurance revealed in a report that Inter-Ocean is
owned by 11 insurance and reinsurance companies that have helped
produce much of its business and that act as 100%
retrocessionaires of its two units, Inter-Ocean Reinsurance Co.
Ltd. of Bermuda and Inter-Ocean Reinsurance (Ireland) Ltd. The
two units thus retain no net underwriting risk and have
collected only fees and, in some cases, profit commissions on
the business they assume, analysts say.

The 11 Inter-Ocean shareholders are: Associated Electric & Gas
Insurance Services Ltd.; American Re-Insurance Co.; Converium
Holding Ltd.; Federal Insurance Co., a unit of Chubb Corp.; GMAC
Insurance Holdings Inc.; Hannover Ruckversicherung A.G.;
Platinum Underwriters Holdings Ltd.; RenaissanceRe Holdings
Ltd.; Swiss Reinsurance Co.; Westfield Insurance Co.; and XL
Capital Corp.

According to Business Insurance, Inter-Ocean deals have already
caused trouble for one of these shareholders: RenaissanceRe
stated in its 2004 10-K report filed last week with the
Securities and Exchange Commission that it is restating its
earnings for 2001 through 2003 after concluding that it
accounted improperly for transactions with the reinsurer.

The problems stemmed from a 2001 aggregate excess of loss
reinsurance agreement under which RenaissanceRe ceded business
to Inter-Ocean, along with a second deal under which it agreed
to sell reinsurance recoverables to Inter-Ocean. While
RenaissanceRe treated the excess of loss contract as traditional
reinsurance, the two deals should have been considered together;
in combination, they "lacked the necessary risk transfer" to be
considered reinsurance, RenaissanceRe concluded after an
internal review.

The effect of the restatement is to increase RenaissanceRe's
2003 net income by US$1.3 million, reduce its 2002 net income by
US$21.9 million and increase its 2001 net income by US$20.6
million, the Company said.

RenaissanceRe's outside directors also concluded that several
senior executives, including Chief Executive Officer James
Stanard, "made mistakes and in some instances lacked due care"
in accounting for the Inter-Ocean deals, according to the 10-K.


INTER-OCEAN HOLDINGS: A.M. Best Downgrades, Withdraws Ratings
-------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to
B++ (Very Good) from A- (Excellent) and the issuer credit rating
to "bbb" from "a-" for the reinsurance subsidiaries of Inter-
Ocean Holdings Limited (Inter-Ocean) (Bermuda).

Additionally, A.M. Best has downgraded the issuer credit rating
to "bb" from "bbb-" of Inter-Ocean. Subsequently, Inter-Ocean
and its reinsurance subsidiaries ratings will be withdrawn and
assigned a rating of NR-4 (Company Request). The latter action
is in response to management's request that the operating
subsidiaries be removed from A.M. Best's interactive rating
process.

The rating downgrade follows Inter-Ocean's announcement that it
has voluntarily entered into runoff and has ceased writing new
business. As a runoff entity, Inter-Ocean's liabilities will
continue to be supported by its 11 shareholders who originally
sourced all of the Company's business and continue to maintain a
strong level of expertise in the global insurance and
reinsurance market. One of these shareholders ultimately assumes
all the underwriting or timing risk for each transaction
undertaken by Inter-Ocean.


LORAL SPACE: Begins Construction of TerreStar Satellite
-------------------------------------------------------
Space Systems/Loral (SS/L) announced Monday that it has
completed design reviews of TerreStar Networks, Inc.'s
geostationary satellite, TerreStar-1, and entered into the
construction phase of the Mobile Satellite Services (MSS)
program.

The TerreStar satellite, together with an Ancillary Terrestrial
Component (ATC), is designed to provide next-generation, 2-GHz
mobile voice and data communications, monitoring and messaging
services throughout the United States.

Scheduled for delivery in 2007, TerreStar-1 has a service life
of 15 years and will carry a state-of-the-art MSS payload
featuring a large unfurlable reflector. The satellite will be
capable of generating hundreds of spot beams covering the
Continental U.S., Canada, Alaska, Hawaii, Puerto Rico and the
U.S. Virgin Islands.

SS/L's contract with TerreStar also includes an option for
construction of a second satellite, TerreStar-2.

An FCC decision earlier this year opened the door for TerreStar
Networks, and other select satellite operators, to incorporate
an ATC with its satellite-delivered communications service. The
previously unavailable 2-GHz frequency band will allow MSS
operators to provide advanced mobile voice and data services.

These services will be enhanced by ATC technology, which allows
for coverage in areas where a satellite's signal could be
locked, including urban canyons, dense forest or other areas out
of the satellite's line-of-sight.

"SS/L has taken a leadership position in the development of 2-
GHz MSS satellites, which are at the heart of next generation
mobile services," said C. Patrick DeWitt, president, Space
Systems/Loral. "Together with our experience on other 2-GHz
systems, the TerreStar award positions SS/L as the industry
leader in the design and development of some of the world's most
advanced mobile communication systems."

TerreStar-1 is based on SS/L's space-proven 1300 platform, which
has an excellent record of reliable operation. Its high
efficiency solar arrays and lightweight batteries are designed
to provide uninterrupted electrical power. In all, SS/L
satellites have amassed more than 1,100 years of reliable on-
orbit service.

About TerreStar Networks

Headquartered in McLean, Va., TerreStar Networks Inc. is an
emerging provider of advanced mobile satellite services in North
America with plans to develop, build and operate an innovative
and spectrum-efficient spot beam satellite network in the 2 GHz
frequency band. The TerreStar investor group includes Motient
Corporation (OTC Pink Sheets: MNCP), SkyTerra Communications
(OTC BB: SKYT), TMI Communications, Columbia Capital and
Spectrum Equity Investors.

About Space Systems Loral

Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTCBB: LRLSQ), is a premier designer,
manufacturer, and integrator of powerful satellites and
satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the Company has
an international base of commercial and governmental customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L is ISO 9001:2000
certified.

About Loral Space

Loral Space & Communications is a satellite communications
Company. In addition to Space Systems/Loral, through its Skynet
subsidiary Loral owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
and for broadband data transmission, Internet services and other
value-added communications services.

CONTACT: Loral Space & Communications Ltd.
         600 Third Avenue
         New York, NY 10016
         USA
         Phone: 212-697-1105
         Web site: http://www.loral.com



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

AES CORPORATION: Draws Flak for City Hall Black Out
---------------------------------------------------
AES Eletropaulo's move to pull the plug on 85 buildings owned by
Sao Paolo's city government has ruffled the feathers of local
politicians and placed the electric utility Company smack in the
middle of a raging battle between former mayor Marta Suplicy and
the city's current top man, Jose Serra.

The New York Times reported Tuesday that Eletropaulo decided to
cut-off power in city hall to coax officials to negotiate almost
US$235.5 million in unpaid electrical charges accumulated since
1996.

While the local government secured a court injunction forcing
Eletropaulo to return power within hours of the power cut, Mr.
Serra has seized the incident to drive his point that
Eletropaulo's lenient treatment of the former administration had
political color. Ms. Suplicy is a member of President Luiz
Inacio Lula da Silva's Workers' Party.

Mr. Serra had accused Suplicy of leaving Sao Paolo's coffers in
near bankruptcy at the end of her term. He claims that he
inherited an estimated BRL8 billion in short-term debt owed to
various utility companies as well as the federal government.  

Brazil is an important component of AES Corporation's
international operations. As the biggest power distributor in
Latin America, Eletropaulo contributes about a quarter to AES's
global revenues. AES plans to sink BRL428 million in Eletropaulo
this year.


CSN: Drop in Shares Unrelated to Purchase of Tin Mine
-----------------------------------------------------
Shares of Companhia Siderurgica Nacional (CSN) continue to dip
Monday, the second day of trading after the integrated flat-
steel producer said it was purchasing a tin mine and foundry in
the country's northern state of Rondonia.

Business News Americas reports that CSN's shares closed down
3.9% on Sao Paulo's Bovespa stock exchange and were off 3.14% on
the New York Stock Exchange.

But according to Elaine de La Rocque, an analyst of investment
research firm BES Securities, the fall was related to a general
dip in investor desire for shares in the steel sector.

"The fall is not very significant. It's part of a general
reaction by investors to the sector unrelated to the purchase,"
La Rocque said.

CSN said Friday it will pay BRL100 million to buy Estanho de
Rondonia (ERSA) a tin mine and smelter located in the Amazon
jungle in northern Brazil. The Company said it will hand over
BRL76.83 million worth of its own shares for ERSA and then pay
an additional BRL23.13 million in cash at the end of the year.

Overall, analysts were positive about CSN's move. Brokerage
Merrill Lynch and BES Securities both maintained buy ratings on
shares of CSN, which has production capacity of some 6Mt/y, in
separate research reports. Merrill Lynch called the purchase a
step toward further integration of CSN's operations, a sentiment
BES' La Rocque echoed.

"This was an integration purchase, not a move toward becoming a
mining Company," La Rocque said.

CONTACT: Companhia Siderurgica Nacional-CSN
         Av. Presidente Juscelino Kubitschek 1830
         Torre 1
         13 andar, Itaim Bibi
         Sao Paulo, SP 04543-900
         Brazil
         Web site: http://www.csn.com.br



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

ICE: To Bring Back Special Service Lines to Boost Sales
-------------------------------------------------------
Electricity and telecommunications provider ICE plans to re-
launch in May special commercial lines that use the 900 prefix.
According to Business News Americas, the move is expected to
boost annual sales by CRC3 billion (US$6.3mn).

ICE was forced to discontinue the service five years ago due to
complaints of high call rates. Now, the public services
regulator Aresep has issued rules to control the use of these
lines, insisting, for example, that users must have the right to
disable their phones for such services.



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

EAGLEPICHER: Mexican Ops Excluded in Bankruptcy Filing
------------------------------------------------------
EaglePicher Holdings, Inc., and EaglePicher Incorporated
(collectively "EaglePicher") announced today that, in order to
implement their strategic initiatives and position the Company
for the future, they and several of their affiliates have
voluntarily filed to reorganize under Chapter 11 of the
Bankruptcy Code. EaglePicher said the filing would facilitate
its previously planned divestiture of a number of its operating
units and enable it to more effectively restructure its
business.

In papers filed with the U.S. Bankruptcy Court in the Southern
District of Ohio in Cincinnati, the Company said it has received
a commitment for up to $50 million in debtor-in-possession (DIP)
financing from a group of lenders led by Harris Trust and
Savings Bank, subject to court approval and certain limitations
and conditions. Under the terms of the proposed DIP agreement,
EaglePicher's existing receivables securitization would be
replaced and the DIP would provide the Company with substantial
additional liquidity.

According to EaglePicher President and CEO Bert Iedema, a number
of factors combined to severely limit both the Company's
liquidity and borrowing ability. "While we would have preferred
to restructure out of court, recent events have deprived us both
of the time and resources to do so," Mr. Iedema said, adding
that continuing deterioration at its Hillsdale automotive unit
and high commodity costs in metal and energy have left the
Company with insufficient cash to continue to operate without
additional borrowing.

"Over the past several weeks it has become clear to management
that in order to maximize value for creditors, EaglePicher must
preserve the value of its various operating divisions and, at
the same time, focus the Company's resources where they will
provide the greatest return," Mr. Iedema said. "The Company
looked at several alternatives, including various
recapitalization and refinancing options. However, mounting
liquidity problems have left us with little choice but to file
Chapter 11 as a means to continue to operate while we seek the
best and highest offers for the businesses we decide to sell."

Mr. Iedema said that the Company expects day-to-day operations
to continue as usual during the Chapter 11 process. "We
appreciate the past support of our suppliers and expect that,
with the availability of the DIP financing and the protections
afforded under the Bankruptcy Code, they will have the assurance
they need to continue to work with us going forward."

He added that management has sought authority from the
Bankruptcy Court to pay employees and retirees and continue
benefits without interruption or delay.

"We deeply appreciate the loyalty of our employees, retirees and
customers. We intend to fulfill our commitments to them without
interruption while we reorganize under court protection.
Moreover, we remain committed to providing our customers with
high quality products, supported by superior customer and
technical service. Meeting their needs remains our highest
priority."

The Company's operations outside the United States were not
included in the filing, and there should be no impact whatsoever
on their ability to serve customers, pay employees and fulfill
their financial obligations to suppliers.

EaglePicher Incorporated, founded in 1843, and headquartered in
Phoenix, Arizona, is a diversified manufacturer and marketer of
innovative, advanced technology and industrial products and
services for space, defense, environmental, automotive, medical,
filtration, pharmaceutical, nuclear power, semi-conductor and
commercial applications worldwide. The Company has 4,200
employees and operates more than 30 plants in the U.S., Canada,
Mexico, Korea, and Germany.

EaglePicher Holdings, Inc. is the parent of EaglePicher
Incorporated. EaglePicher(TM) is a trademark of EaglePicher
Incorporated.

CONTACT:  EAGLEPICHER HOLDINGS, INC.
          Sandra Sternberg
          Tel: +1-602-794-9620
                 or
          Anita-Marie Laurie
          Tel: +1-310-788-2850
          URL: http://www.eaglepicher.com


GRUPO DESC: Signs IT Service Contract With NEORIS
-------------------------------------------------    
DESC, S.A. de C.V. (BMV:DESC) announced Monday that it has
signed an outsourcing contract with NEORIS for IT support and
project development.

The outsourcing contract between the two companies includes
support for ERP and non-ERP applications, project development,
access to specialized talent to service the particular demand of
each of DESC's businesses, and access to best practices and
methodologies, while DESC continues to reduce its current cost
structure in order to become more competitive and flexible.

This contract also includes support to critical applications via
a 24-7-365 model with both on-site personnel and remote
attention.

NEORIS has become Latin America's 4th largest IT consulting firm
and the region's 5th largest custom application development
firm. Neoris has also fortified its position in the United
States and Europe by offering systems of integration,
development of applications and IT consulting and software.

About DESC

DESC S.A. de C.V.(BMV: DESC) is one of the largest industrial
groups in Mexico, with 2004 sales of approximately US$ 2 billon
and nearly 14,000 employees, which through its subsidiaries is a
leader in the Automobile Parts, Chemical, Food and Property
sectors.

CONTACTS: Ms. Marisol Vazquez-Mellado
          Mr. Jorge Padilla
          Phone: (5255) 5261-8044
          E-mail: investor.relation@desc.com.mx

          Ms. Maria Barona
          Ms. Melanie Carpenter
          Phone: 212-406-3690
          E-mail: desc@i-advize.com
          Web site: http://www.desc.com.mx


GRUPO MEXICO: Asarco Resorts to Chapter 11 to Deal With Claims
--------------------------------------------------------------
Tucson, Ariz.-based Asarco, a unit of Mexican copper mining
concern Grupo Mexico SA, announced Monday that several non-
operational and dormant subsidiaries have filed Chapter 11
proceedings to deal with asbestos-related claims.

Dow Jones Newswires reports that the filing was made in Corpus
Christi, Texas. The filing subsidiaries include Lake Asbestos of
Quebec Ltd., which was sold in 1989, and CAPCO Pipe Company
Inc., which was sold in 1994. Both businesses were already
discontinued. Nevertheless, they face personal injury claims
stemming from the widespread "asbestos crisis" of the late
1990s.

"In order to dispose of thousands of claims in an expeditious
and fair manner, Asarco has turned to the congressionally
authored solution, and will seek a permanent injunction under
section 524(g) of the Bankruptcy Code in which all asbestos-
related claims will be channeled to a trust for an equitable
resolution and payment," the Company said.

Section 524(g) of the Bankruptcy Code gives temporary protection
to parent companies from asbestos-related personal injury claims
against their subsidiaries. All claims have to be heard at the
same court.

The filing won't affect customers, suppliers, employees or any
of Asarco's operational units, the Company said.

CONTACT: ASARCO
         1150 N. 7th Ave.
         Tucson, AZ  85705
         Tel: 520-798-7500
         Fax: 520-798-7780

         EXECUTIVE OFFICERS:
         Daniel Tellechea Salido - Chairman of the Board
                                   CEO/President
         Manuel F. Ramos Rada - Member of the Board
                                VP, Metallurgical Operations
         John D. Low - VP, Mining Operations


MEXICANA DE AVIACION: Unveils New Airline
-----------------------------------------
Grupo Mexicana de Aviacion announced Monday a new airline
concept, which will revolutionize air travel in Mexico. The new
airline, named Click Mexicana, headed by Isaac Volin Bolok, is a
Company part of Grupo Mexicana and will have the infrastructure
support offered by Mexicana de Aviacion.

The name Click, is the result of a study carried out by Landor,
a renowned worldwide firm specializing in branding - brand
positioning. The word Click is easy to pronounce in any
language, it communicates speed and technology and refers to the
sales channel in which we will offer our best rates, Click's own
website.

Click Mexicana will operate 10 Fokker airplanes, with a
configuration of 100 seats, with 35 inches of space between
rows, placing it as one of the most comfortable in the industry.
These modern airplanes will integrate to the fleet gradually
between July and December this year.

The new airline will offer flights to some cities served by
Mexicana de Aviacion, with the same frequency and service
quality. At first, it will operate nine national destinations in
round trips from Mexico City to Saltillo, Nuevo Laredo, San Luis
Potosi, Oaxaca, Zihuatanejo, Huatulco, Tuxtla Gutierrez,
Villahermosa and Merida.

The announcement was issued during the XXX Tianguis Turistico
trade event, being held in this port city. Emilio Romano, CEO of
Grupo Mexicana de Aviacion stated, "We are very pleased to
present a new low cost airline concept, unprecedented in our
country, which will offer accessible and competitive rates to a
greater number of clients. We are sure we will significantly
increase the volume of clients who will have the opportunity to
travel by air, efficiently and with quality services."

Isaac Volin, CEO of Click Mexicana, said, "This is a very
interesting challenge, as it revolutionizes the concept of
flying in Mexico, by making it easier for a greater number of
people to travel on modern, reliable and comfortable airplanes."

About Click Mexicana

Click Mexicana is the first low cost airline in Mexico.
Initially, it will operate nine routes with 10 Fokker airplanes,
completely renovated equipment and the most advanced technology.
The main contact with clients is through the Click's own
Website, where clients will find the most competitive prices and
the best promotions. They will also have a friendly Call Center
and modern virtual self-service kiosks, together with the
regular sales channels, with the conviction and assurance that
at every point of contact, the service will mark the difference.

CONTACT:  GRUPO MEXICANA DE AVIACION
          Fabio Serrano Vigil
          Tel: (55) 548-3000 Ext. 3871
          E-mail: fabio.serrano@mexicana.com.mx


VITRO: Finacity Posts Details of Receivables Securitization
-----------------------------------------------------------
Finacity Corporation announced Monday that on March 31, 2005, in
its capacity as Arranger, it facilitated the successful closing
and funding of an innovative two-tranche trade receivables
securitization for three subsidiaries of Finacity's client Vitro
Envases Norteamerica S.A. de C.V. ("VENA"), a 100% owned
subsidiary of Vitro S.A. de C.V. ("Vitro") (NYSE: VTO) (BMV:
VITRO A).

Acting as the Arranger, Master Servicer and Bond Administrator,
Finacity successfully structured a five-year transaction that
provides VENA with an almost 100% advance on receivables
assigned from VENA subsidiaries Compania Vidriera, S.A. de C.V.,
which conducts a substantial majority of VENA's glass container
operations in Mexico, Industria del Alcali, S.A. de C.V. which
is engaged in the manufacturing and distribution of soda ash,
sodium bicarbonate, calcium chloride and salt, and
Comercializadora Alcali, S. de R.L. de C.V. which markets Alcali
products.

The construct developed by Finacity for Vitro demonstrates
innovation from operational, structural and reporting
perspectives. As Master Servicer and receivables underwriter,
Finacity has taken responsibility for all functions, from credit
analysis through to collections services, for VENA's receivables
on an outsourced basis. These functions have been sub-contracted
by Finacity to ABN AMRO Bank (Mexico) S.A. as the Servicer and
Tecnologia en Cuentas por Cobrar S. A. de C.V. as the Sub-
servicer in the transaction. Finacity has split VENA's funding
into two tranches. The senior tranche is a MXN 550,000,000,
variable rate, five-year term bond rated AAA.mx by Standard &
Poor's and Aaa.mx by Moody's and due in 2010. The senior tranche
was funded by domestic investors in Mexico. The subordinate
tranche, a USD19,000,000, five-year term offering, was funded by
a single North American investor with recourse back to Vitro. As
Bond Administrator, Finacity will generate reports daily for the
various constituents: Vitro, investors, both rating agencies and
the regulators in order to provide all parties with visibility
to assets, collateral values and receivables performance.

This transaction represents the first peso-denominated,
domestically funded, trade receivables-backed securitization
rated AAA/Aaa in Mexico. Finacity's detailed involvement in the
structural and operational aspects of this transaction has
helped Vitro receive significantly more liquidity from VENA's
receivables than in the arrangement with its previous lender.

"This is the first transaction of its type in the Mexican market
and we are very pleased with the positive reaction of the
market. The result has been a very attractive financial
instrument for the market, with the highest ratings and with
good interest rates. I believe that this transaction strengthens
the fine perception that the market has of Vitro and of our
efforts to find innovative and attractive instruments for our
financing operations and for the market," commented Fabrice
Serfati, Vitro's Finance Manager.

"We are very proud and pleased to have served Vitro's needs in
their home country through such a complex transaction," said
Adrian Katz, Finacity's Chief Executive Officer. "The structure
we created for Vitro demonstrates Finacity's creativity and
breadth of execution capabilities for our clients both in Mexico
and globally."

About Finacity Corporation

Finacity is a Company that specializes in the provision of
efficient, securitization-based trade receivables funding
solutions as well as state-of-the-art servicing, collections and
reporting capabilities. Finacity's offerings can include both
domestic and international receivables for its clients.
Finacity's strategic partners and investors include ABN AMRO
Bank, Bank of America, Euler Hermes ACI, Amroc Investments,
Avenue Capital, Kleiner Perkins Caufield & Byers, Bain & Co.,
and the partners of Texas Pacific Group.

About Vitro, S.A. de C.V.

Vitro, through its subsidiary companies, is one of the world's
leading glass producers. Vitro is a major participant in three
principal businesses: flat glass, glass containers and
glassware. Vitro serves multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses, and aluminum
containers. Vitro also produces raw materials and equipment and
capital goods for industrial use. Founded in 1909 in Monterrey,
Mexico-based Vitro has joint ventures with major world-class
partners and industry leaders that provide its subsidiaries with
access to international markets, distribution channels and
state-of-the-art technology. Vitro's subsidiaries have
facilities and distribution centers in eight countries, located
in North, Central and South America, and Europe, and export to
more than 70 countries worldwide.

CONTACT: Vitro, Sociedad Anonima
         Ave. Ricardo Margain 400
         Col Valle del Campestre
         Garza Garcia, Nuevo Leon 66250
         Mexico
         Phone: +52 81-8863-1200
         Website: http://www.vto.com



=======
P E R U
=======

ENAFER: Liquidator Releases Updates on Status of Liquidation
------------------------------------------------------------
Defunct national railroad Company Enafer registered debts of
more than PEN682 million (US$209mn) and negative equity of more
than PEN678 million soles, Business News Americas reveals,
citing a report by the Company's liquidator.

Manuel Adrianzen, a representative of the liquidator, was
reporting to a congressional subcommittee investigating the
situation at the railroad.

Adrianzen has promised the committee a prompt series of reports
and updates on the total assets received, the status of
auctions, non-concessionable assets, the process of liquidation
and the allocation of a US$32-million World Bank loan.

In his report, he also revealed that Enafer is facing 580
lawsuits related to claims by the railroad's former workers, who
are demanding about PEN500,000.

The liquidator is trying to complete the sell-off of Enafer's
assets, a process that has proven to be much more complicated
than expected.

Some of the rail properties that are destined to go on the block
have been taken over by squatters and built on. In order for the
sale to go through, a plan must be in place to delineate the
borders of these properties and secure their possession.

Proceeds from any properties that are sold will go to settle
claims from the railroad's former employees.



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

PDVSA: Reports Higher Net Income in 2004
----------------------------------------
CITGO Petroleum Corp., a U.S.-based subsidiary of Venezuelan
state-owned oil Company Petroleos de Venezuela SA (PDVSA),
registered net income of US$625 million in 2004, higher than the
US$439 million recorded in 2003, reports Dow Jones Newswires.

Net sales in 2004 amounted to US$32 billion, up from US$25
billion in 2003. The Company said it paid a US$400-million
dividend to PdV America, an affiliate of PdVSA, last December.

In a filing to the U.S. Securities and Exchange Commission,
CITGO stated it has sufficient liquidity (defined as cash,
available borrowing capacity and access to an accounts
receivable sales facility) to maintain its current operations
and to complete capital projects that are underway.

Estimated capital expenditures for 2005 are approximately US$515
million. Of this amount, US$261 million is for regulatory
projects, US$162 million for strategic projects and US$92
million is for maintenance projects. Liquidity at year-end was
approximately US$553 million. Although CITGO has debt maturities
during 2005 of approximately US$11 million, it routinely
evaluates financing opportunities that not only mature in 2005
but also future years.

The filing also revealed that as of December 31, 2004, the
Company had an aggregate of US$1.1 billion of indebtedness
outstanding that matures on various dates through the year 2033.

As of December 31, 2004, its contractual commitments to make
principal payments on this indebtedness were US$11 million,
US$201 million and US$62 million for 2005, 2006 and 2007,
respectively.

As of December 31, 2004, the Company has a US$260 million, three
year, unsecured revolving bank loan, which matures in December
2005. There was no outstanding balance under this credit
agreement at December 31, 2004, the filing said.

As of December 31, 2004, the Company's other principal
indebtedness consisted of:

(i)   US$248 million in 6% senior notes issued in 2004,

(ii)  US$7 million in 11-3/8% senior notes issued in 2003,

(iii) US$150 million in 7-7/8% senior notes issued in 1996,

(iv)  US$165 million in senior notes issued pursuant to a
       master shelf agreement with an insurance Company,

(v)   US$23 million in private placement senior notes issued in
       1991,

(vi)  US$459 million in obligations related to tax exempt bonds
       issued by various governmental units, and

(vii) US$80 million in obligations related to taxable bonds        
        issued by various governmental units.

Rumors abound that PDVSA could sell CITGO, which has come under
pressure in Venezuela to contribute more money in dividends.
However, Energy and Oil Minister Rafael Ramirez denied these
rumors, saying CITGO will not be sold but restructured in order
to make it more efficient.

CONTACT: CITGO PETROLEUM CORPORATION
         Investor Relations Contact:
         Kate Robbins
         Public Affairs Manager
         (832) 486-5764
         E-Mail: InvRel@citgo.com


PDVSA: PowerSeraya Certain of Continued Orimulsion Fuel Supply
--------------------------------------------------------------
Singaporean power generator PowerSeraya is confident that
Venezuela will continue to supply it with Orimulsion fuel,
suggests Dow Jones Newswires.

"We have a 10-year contract. As far as we know, it is being
honored," said Neil McGregor, managing director of PowerSeraya.

McGregor's comments came after PDVSA president and energy and
oil minister Rafael Ramirez was reported as saying that state
oil firm PDVSA will stop producing its patented boiler fuel
orimulsion within one year.

"Orimulsion production has been reduced from about 80,000
barrels a day a few years ago to 40,000 b/d these days, and even
that volume will soon disappear and be merged with crude
production," Ramirez was quoted as saying.

PDVSA will develop the Morichal area in eastern Venezuela, where
the extra-heavy crude used to make orimulsion comes from, as a
"Faja" area, Ramirez said. This means crude will no longer be
used for manufacturing orimulsion but blended or upgraded for
export.

In September 2004, the government announced it would not sign
any more orimulsion contracts and would absorb the operations of
its Bitor subsidiary into PDVSA East because producing
orimulsion has become unprofitable at today's high oil prices.


PDVSA: To Discuss Wind Power Project With Cadafe This Week
----------------------------------------------------------
State power Company Cadafe is scheduled to meet with state oil
Company PDVSA this week to engage in talks about a new joint
venture project.

According to Business News Americas, both companies plan to
become partners in a new project to provide Venezuela's Falcon
state with a wind-based solution to its electricity needs.

PDVSA president and energy and oil minister Rafael Ramirez also
mentioned the planned JV last week in the wake of an electricity
mishap that left PDVSA's Amuay refinery - part of the CRP
refining complex - without power for several days.

A Cadafe official said that the Company is in the process of
"gathering information" for a wind power project.

There is no timeframe for the said project, which would be in
addition to the PDVSA-Cadafe joint venture project to build a
new 300MW thermoelectric plant in Falcon, mainly to service the
CRP complex but also to provide electricity to the city of Punto
Fijo and other parts of the state.




                            ***********


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 * * *