TCRLA_Public/050414.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

            Thursday, April 14, 2005, Vol. 6, Issue 73

                            Headlines

A R G E N T I N A

ABARCAL S.A.: Court Declares Company Bankrupt
AEROLINEAS ARGENTINAS: Ushers Latest B737/500 Into its Fleet
ALL MARKETING: Verification Deadline Approaches
APSA: Cancels $48.4M Worth of Notes
ATENEA S.R.L.: Court Grants Reorganization Plea

BANCO BISEL: Moody's Retains Default Rating on Bonds
CERRO BAYO: Reports Submission Set
C.H.C. SACIFIA: Asks Court Permit for Reorganization
ESTACION DE SERVICIO: Court Approves Bankruptcy
FM SEGURIDAD: Verification Deadline Fixed

FUSION SERVICIOS: Court OKs Creditor's Bankruptcy Petition
SAN JORGE: Gears for Reorganization
SENIOR KAFEGO: Trustee Readies Reports for Submission


B R A Z I L

BANCO SCHAHIN: S&P Assigns Ratings
TELEMAR: Board Approves Capital Increase
TELEMAR: Pays Dividends, Interest on Capital
UNIBANCO: Names Interim Officers


D O M I N I C A N   R E P U B L I C

* BANKING SECTOR: ABA Rebuffs Hints of a Crisis


J A M A I C A

DYOLL GROUP: Angry Shareholders Mull Lawsuit


M E X I C O

BALLY TOTAL: Expects to Remain in the Red in 2004
CFE: Protesters Seek Reduction in Tariffs
CYDSA: To Seek CDM's Approval on CER Program
GRUPO IUSACELL: Reaches National Coverage With New Frequencies
GRUPO MEXICO: To Seek Shareholders Approval on Stock Split Plan

GRUPO MEXICO: SPCC Enters Into Registration Rights Agreement
HYLSAMEX: Imsa Hints at Participating in Spin-off


P A N A M A

* PANAMA: IMF Board Commends Efforts to Strengthen Fiscal Health


V E N E Z U E L A

CANTV: CADIVI Grants US$35.7M Dividend on ADR
CERRO NEGRO: Talks Between Partners, Govt. Prove Fruitless
PDVSA: Affirms ENARSA Deal to Maintain Competitive Pricing
PDVSA: Maintains Gasoline Supply to U.S.
PDVSA: Negotiating Long-Term Supply Deals With Repsol, Cepsa

     -  -  -  -  -  -  -  -

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

ABARCAL S.A.: Court Declares Company Bankrupt
---------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared local company Abarcal S.A. "Quiebra", relates La
Nacion.

The Company will undergo the bankruptcy process with Mr. Luis
Plizzo as trustee. Creditors are required to present proof of
their claims to Mr. Plizzo for verification before June 3.
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 that will close with
the sale of the Company's assets. Proceeds from the sale will be
used to repay its debts.

CONTACT: Abarcal S.A.
         Azara 514
         Buenos Aires

         Mr. Luis Plizzo, Trustee
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires


AEROLINEAS ARGENTINAS: Ushers Latest B737/500 Into its Fleet
------------------------------------------------------------
A fifth Boeing B737/500 was incorporated to Aerolineas
Argentinas' fleet complying with the fleet renewal plan
announced in the middle of 2004. The plan, signed with General
Electric Capital, agrees upon the incorporation of 15 units to
automatically replace the B737/200 within a 2 year-term.

The total financing investment amounts 560 million dollars and
it will be increased until year 2007.

With the incorporation of these aircrafts, Aerolineas Argentinas
keeps on leading the South American market with this type of
aircraft that allows to fly with no limits or stops to any
destination of Europe, America and Oceania.

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
         Web site: http://www.aerolineas.com.ar


ALL MARKETING: Verification Deadline Approaches
-----------------------------------------------
The verification of claims for the All Marketing S.A. bankruptcy
will end on June 1 according to Infobae. Creditors with claims
against the bankrupt company must present proof of the
liabilities to Ms. Graciela Maria Caccavallo, the court-
appointed trustee, before the deadline.

Court No. 15 of Buenos Aires' civil and commercial tribunal
handles the company's case with the assistance of Clerk No. 30.
The bankruptcy will conclude with the liquidation of the
company's assets to pay its creditors.

CONTACT: Ms. Graciela Maria Caccavallo, Trustee
         Estados Unidos 2552
         Buenos Aires


APSA: Cancels $48.4M Worth of Notes
-----------------------------------
Alto Palermo S.A. (APSA)reports that on April 7, 2005, the
Company canceled its Notes issued in pesos during the year 2000
for an original amount of $ 85.0 million which have an interest
rate of 14.875%.

The outstanding Notes before the total cancellation were up to
the sum of $48.4 million, which were totally cancelled.

Additionally, the Company got a loan from two financial
institutions of the country for $50.0 million, due on April 5,
2007 and with amortizations each 6 months. This amount was
mainly used to cancel the Company's Notes.

The above-mentioned loan has an interest rate for the first year
of 7.875% that allows the Company to reduce the financial cost
of its debt.

About APSA

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
revenues.

CONTACT: Alto Palermo S.A. (APSA)
         2/F
         476 Hipolito Yrigoyen
         Buenos Aires
         Argentina
         Phone: +54 11 4344 4600
         Web site: http://www.altopalermo.com.ar


ATENEA S.R.L.: Court Grants Reorganization Plea
-----------------------------------------------
Atenea S.R.L., a company operating in Mendoza, begins
reorganization proceedings after Court No. 1 of the city's civil
and commercial tribunal granted its petition for "concurso
preventivo".

During the reorganization, the company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Jose E. Villareal,
the court-appointed trustee.

The court requires the trustee to present an audit of the
company's accounting and business records through a general
report due on April 25.

An informative assembly for the Company's creditors is scheduled
on October 2.

CONTACT: Mr. Jose E. Villareal, Trustee
         Avda Espana 1591
         Mendoza


BANCO BISEL: Moody's Retains Default Rating on Bonds
----------------------------------------------------
The National Securities Commission of Argentina reports that the
local branch of Moody's Ratings Agency maintains the 'D' rating
on various corporate bonds issued by local bank, Banco Bisel
S.A. The rating, which denotes payment default, refers to these
bonds:

- US$54 million worth of "Obligaciones Negociables Subordinadas"
classified under "Series and/or Class." The bonds matured on
July 20, 2000.

- US$100 million worth of "Programa Global de Obligaciones
Negociables" classified under "Program." These bonds also
matured on July 20, 2000.

- US$300 million worth of "Programa de Emision de Titulos de
Deuda a Mediano Plazo" classified under "Program." These bonds
matured on July 20, 2000.

- US$200 million worth of "Programa Global de Emision de
Obligaciones" classified under "Program." The maturity date of
the bonds was not indicated.

The Company's financial status as of December 31, 2004
determined the ratings given by Moody's.

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


CERRO BAYO: Reports Submission Set
----------------------------------
Mr. Gustavo Alejandro Pagliere, the trustee assigned to
supervise the liquidation of Cerro Bayo S.R.L., will submit the
validated individual claims for court approval on June 17. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report of the case on
August 12.

Infobae reports that Court No. 9 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 18 assists the court with the proceedings.

CONTACT: Cerro Bayo S.R.L.
         Presidente Peron 1963
         Buenos Aires

         Mr. Gustavo Alejandro Pagliere, Trustee
         Tucuman 1424
         Buenos Aires


C.H.C. SACIFIA: Asks Court Permit for Reorganization
----------------------------------------------------
C.H.C. Sacifia, a grains distributor operating in Buenos Aires,
has requested for reorganization after failing to pay its
liabilities.

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

The case is pending before Court No. 15 of Buenos Aires' civil
and commercial tribunal. The city's Clerk No. 30 assists the
court on this case.

CONTACT: C.H.C. Sacifia
         Rodriguez Pena 110
         Buenos Aires


ESTACION DE SERVICIO: Court Approves Bankruptcy
-----------------------------------------------
Estacion de Servicio Km. 21 S.A. was declared bankrupt after
Court No. 9 of Buenos Aires' civil and commercial tribunal
endorsed the petition of Ms. Karina Galeano for the Company's
liquidation. Argentine daily La Nacion reports that Ms. Galeano
has claims totaling US$29,303.31 against the Company.

The court assigned Mr. Ruben Faure to supervise the liquidation
process as trustee. Mr. Faure will validate creditors' proofs of
claims until June 6.

The city's Clerk No. 18 assists the court in resolving this
case.

CONTACT: Estacion de Servicio
         Km. 21 SA
         Buenos Aires

         Mr. Ruben Faure, Trustee
         Rivadavia 1227
         Buenos Aires


FM SEGURIDAD: Verification Deadline Fixed
-----------------------------------------
The verification of creditors' claims for the FM Seguridad S.A.
insolvency case is set to end on May 10, states Infobae.

Mr. Manuel Alberto Cibeira, the court-appointed trustee tasked
with examining the claims, will submit the validation results as
individual reports on June 23. He will also present a general
report in court on August 18.

On March 1 next year, the Company's creditors will vote on the
settlement proposal prepared by the Company.

Infobae adds that the company's reorganization is under the
jurisdiction of Court No. 16 of Buenos Aires' civil and
commercial tribunal.

Clerk No. 31 assists the court in the proceedings.

CONTACT: Mr. Manuel Alberto Cibeira, Trustee
         Avda Cordoba 1247
         Buenos Aires


FUSION SERVICIOS: Court OKs Creditor's Bankruptcy Petition
----------------------------------------------------------
Banco Ro de la Plata S.A. successfully requested the bankruptcy
of Fusion Servicios Integrales S.R.L. after Court No. 21 of
Buenos Aires' civil and commercial tribunal declared the Company
"Quiebra," reports La Nacion.

As such, the food products distributor will now start the
process with Mr. Hugo Marcos as trustee. Creditors must submit
proofs of their claims to the trustee by May 24 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 sought for the Company's liquidation after the
latter failed to pay debts amounting to US$20,766.93.

The city's Clerk No. 41 assists the court on the case that will
close with the liquidation of all of its assets.

CONTACT: Fusion Servicios Integrales S.R.L.
         Av. Pte. Roque Saenz Pena 917
         Buenos Aires

         Mr. Hugo Marcos, Trustee
         Jufre 251
         Buenos Aires


SAN JORGE: Gears for Reorganization
-----------------------------------
Court No. 21 of La Plata's civil and commercial tribunal issued
a resolution opening the reorganization of San Jorge S.A. This
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation.

Infobae reports that Ms. Cecilia Laura Phillips will serve as
trustee during the course of the reorganization. She will be
validating creditors' proofs of claims until May 20. The results
of the verification will be presented in court as individual
reports on July 8.

The trustee is also required to provide the court with a general
report of the case on September 16. The general report
summarizes events relevant to the reorganization and provides an
audit of the Company's accounting and business records.

The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on
October 17.

CONTACT: Ms. Cecilia Laura Phillips, Trustee
         Calle 41 Nro. 578
         La Plata


SENIOR KAFEGO: Trustee Readies Reports for Submission
-----------------------------------------------------
Trustee Aldo Emilio Cambiasso is scheduled to submit individual
reports from the Senior Kafego S.R.L. bankruptcy case on August
2. He is also expected to provide a general report of the case
on September 19.

Infobae reports that Court No. 2 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 3 assists the court with the proceedings.

CONTACT: Mr. Aldo Emilio Cambiasso, Trustee
         Avda Cerrito 1070
         Buenos Aires



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B R A Z I L
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BANCO SCHAHIN: S&P Assigns Ratings
----------------------------------
Standard & Poor's Ratings Services assigned its 'B/B' foreign
local currency counterparty credit ratings to Banco Schahin S.A.
(Schahin). The outlook is stable.

The ratings assigned to Schahin reflect the intrinsic risks of a
small bank facing the challenge of growing its retail business
while maintaining adequate funding in the increasingly
competitive and volatile Brazilian banking market; the bank's
loan portfolio with a comparatively worse quality vis-a-vis its
peers and the challenge to improve credit quality indicators and
reduce nonperforming loans (NPLs; credits classified from E to
H) mainly in the middle market segment; and the relatively low
core profitability in past years as compared to the bank's risk
profile.

These risk factors are partially offset by the bank's coherent
strategy to generate more retail business while gradually
reducing the weight of loans to small and midsize companies (to
accomplish this strategy, the bank has developed good
relationships with representatives and correspondent banking
units and recently closed an agreement with HSBC Bank Brasil
S.A.); the bank's efforts to gradually improve its credit
quality by means of diluting its credit risk, while improving
profitability through the increase of its retail operations; and
the conservative approach of its Treasury activity.

"We expect Schahin's credit risk profile to improve in the
medium term due to the increase of the payroll discount lending
to retired people and pensioners, which has significantly lower
risk and offers one of the best growth opportunities in the
market," said Standard & Poor's credit analyst Tamara Berenholc.

With total assets of Brazilian reais (BrR) 965 million ($363
million; at an exchange rate of BrR2.65 to $1.0) as of December
2004, Schahin is a small bank positioned as the 54th largest
financial institution in Brazil. The bank is part of a
conglomerate with operations in several areas, including,
amongst others, oil-related services, engineering, and electric
energy transmission. We do not assign ratings to any industrial
or service company part of Schahin's conglomerate, and the
ratings assigned to the bank do not incorporate potential
support from shareholders (although financial support happened
in the past).

One of the main weaknesses factored in the rating is the quality
of Schahin's loan portfolio at worse levels than banks operating
in similar markets or presenting similar size. Even during a
period of growth in the Brazilian economy, like 2004 when its
peers improved asset quality indicators, Schahin's ratios did
not improve. About two-thirds of Schahin's loans are to the
middle-market segment. While the bank expects to reduce the
weight of this segment on its credit portfolio, this also
depends on market conditions. The remaining portion of its loan
portfolio refers mainly to loans to individuals and consumer
finance.

The bank's key success factors include the agreement and
relationship established with several representatives and
correspondent banking units, as well as constant investments in
IT, meaningful for its size. Despite having a small branch
structure, the bank made agreements with documentation agents
and car dealers to finance the clientele debt (fines, taxes,
etc.), auto financing, and payroll discount lending. Its market
position allowed the bank to be one of the largest financial
agents in the collection of fines and taxes in the State of Sao
Paulo. Its IT and internal system bases are important factors in
an increasingly competitive environment.

The stable outlook on both local and foreign currency ratings
assigned to Schahin incorporates our expectation that the bank
will be able to maintain stability in its consumer finance and
payroll discount lending to support its growth strategy while
maintaining its profitability. It also incorporates the
expectation that the bank will maintain its asset-quality ratio
(NPL ratio) better than current levels and in a positive trend
following better economic prospects for the country and the
benefit of risk reduction with higher participation on
individual loans. The stable outlook also incorporates the
maintenance of a BIS ratio above 13%.

The outlook may be changed to positive or ratings may be raised
if the bank (consolidated figure) shows sustainable growth and
stronger returns, a significant improvement in asset quality
indicators, the maintenance of a stable and diversified funding
base, and better capital ratios. On the other hand, the outlook
could be changed to negative or ratings could be lowered if
there is a significant deterioration in Schahin's asset quality
ratios (vis-a-vis its current levels), or if the bank is unable
to gradually improve its profitability.


TELEMAR: Board Approves Capital Increase
----------------------------------------
Tele Norte Leste Participacoes S/A (NYSE: TNE; Bovespa:TNLP3 and
TNLP4) announced that, at a meeting held Tuesday in Rio de
Janeiro, its Board of Directors approved a capital increase in
the amount of R$154.2 million, to R$4,688,730.8 million.

Such capital increase is in connection with the tax benefit
originated from the goodwill amortization recorded in 2004. The
number of shares to be issued will be 1.3 million common and 2.6
million preferred shares.

The subscription prices in connection with the capital increase
are R$ 36.21 per preferred share and R$ 45.73 per common share
(based on average prices at Bovespa from March 28 to April 08,
2005, with a 5% discount).

The "right of preference" ratio is equivalent to 1.034515% for
common or preferred shares and the respective preference period
is from April 25, 2005 up to and including May 24, 2005. Payment
by the shareholder shall be effected upon subscription. The
shareholder who wish to negotiate their rights, during the
preference period, shall get the appropriate documentation from
Banco do Brasil or from its custodian agent.

The record date for the subscription rights is April 14, 2005
and TNL shares will start trading "ex-subscription rights" in
Bovespa as of April 15, 2005.

CONTACT: Tele Norte Leste Participacoes S.A.
         Rua Humberto de campos
         425-8 Andar Leblon
         Rio de Janeiro, RJ 22430-190
         Brazil
         Phone: +55 21 3131 1210
         Web site: http://www.telemar.com.br


TELEMAR: Pays Dividends, Interest on Capital
--------------------------------------------
Tele Norte Leste Participacoes S.A.(NYSE: TNE), the holding
company of providers of wireline and wireless telecommunications
services in Brazil, announced that the General Shareholders'
Meeting held Tuesday in Rio de Janeiro approved payment in the
amount of R$ 1,000 million as dividends and R$ 100 million as
interest on capital (IOC) referring to the Fiscal Year of 2004.

The initial date of payment will be April 25, 2005, as described
below:

1. Interest on Capital per common or preferred share
(TNLP3/TNLP4 in Bovespa and TNE in NYSE): R$ 0.257394 per share;

2. Accrued Interest and Taxes: as decided in the aforementioned
Meeting, the above-mentioned interest on capital amount accrues
interest based on the CDI (Certificado de Deposito
Interbancario") rate up to December 31, 2004 and remunerated
based on the TR ("Taxa Referencial") rate, from January 01 until
April 25, 2005. The amount indicated above is subject to
withholding taxes, in accordance with Brazilian Law (Laws no.
9245/95 and 9249/95).

3. Dividend per common or preferred share (TNLP3/TNLP4 in
Bovespa and TNE in NYSE): R$ 2.660238 per share, being R$
2.641547 as "principal" and R$ 0.018691 as remuneration based on
the TR ("Taxa Referencial") rate.

4. Accrued Interest and Taxes: as decided in the aforementioned
Meeting, the above mentioned dividend amount is remunerated
based on the TR ("Taxa Referencial") rate, from January 01 until
April 25, 2005. The amount indicated above, will be subject to
withholding tax, as defined by Brazilian Law.

The shares will start trading ex-dividends as of April 15, 2005.


UNIBANCO: Names Interim Officers
--------------------------------
The Board of Directors of Uniao De Bancos Brasileiros S.A.
(UNIBANCO) approved these resolutions during the meeting held at
the Company's offices on April 8:

1. Elected to the Board of Officers with terms until the
investiture of the members to be elected by the Board of
Directors in a meeting to be held until April 30, 2005, Messrs.:

1. Executive Officer: RAPHAEL AFONSO GODINHO DE CARVALHO,
Brazilian citizen, married, mathematic, domiciled in the city of
Sao Paulo, State of Sao Paulo, at Av. Eusebio Matoso, 891, 2nd
floor, bearer of Identity Card RG N. 06,706,275-2-SSP/RJ and
enrolled with the Individuals Taxpayers Enrollment ("CPF") under
N. 887,072,617-72;

2. OFFICERS:

2.1. CAI IGEL, German citizen, married, bank worker, domiciled
in the city of Sao Paulo, State of Sao Paulo, at Av. Eusebio
Matoso, 891, 12th floor, bearer of Identity Card of Foreigners
RNE N. W268276-K and enrolled with the Individuals Taxpayers
Enrollment ("CPF") under N. 111,113,338-74;

2.2. CARLOS ALBERTO BEZERRA DE MOURA, Brazilian citizen,
married, graduates in account sciences, domiciled in the city of
Sao Paulo, State of Sao Paulo, at Av. Eusebio Matoso, 891, 2nd
floor, bearer of Identity Card CRC N. 83.541-5-CRC-RJ and
enrolled with the Individuals Taxpayers Enrollment ("CPF") under
N. 034,141,847-10; and

2.3. CARLOS HENRIQUE ZANVETTOR, Brazilian citizen, married,
electronic engineer, domiciled in the city of Sao Paulo, State
of Sao Paulo, at Av. Eusebio Matoso, 891, 17th floor, bearer of
Identity Card RG N. 15,353,133-SSP/SP and enrolled with the
Individuals Taxpayers Enrollment ("CPF") under N. 115,624,088-
36.

2. In compliance with the rules enacted by the Governmental
bodies in charge of the inspection and regulation to which this
company is subjected, this Board has decided to indicate as
responsible by the below mentioned departments the following
member of the Board of Officers:

RAPHAEL AFONSO GODINHO DE CARVALHO
Officer incumbent of the Deposit Accounts - Rules ("Resolucoes")
N. 2025/1993 and 2078/194 and "Circular"N. 452/1994; and Officer
incumbent of the Investment Accounts - "Circular" N. 3248/2004.

CONTACT: Unibanco
         Ms. Valerie Cadier Adem
         Phone: 55-11-3097-4520
         E-mail: valerie.adem@unibanco.com.br
                 or
         Mr. Cesar Augusto
         Phone: 55-11-3097-1391
         E-mail: cesar.augusto@unibanco.com.br



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D O M I N I C A N   R E P U B L I C
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* BANKING SECTOR: ABA Rebuffs Hints of a Crisis
-----------------------------------------------
The Association of Dominican Banks has denied rumors that the
country's banking industry is facing a crisis, reports DR1 Daily
News.

To support its claim, ABA cited the results of 10 banks that had
published their quarterly reports over the past few months. The
positive results, including a 52 percent jump in common shares,
belies allegations of a crisis. ABA adds that public confidence
in the industry remains high as evidenced by the RD$4.9 billion
growth in deposits.

Fears of a growing crisis was fanned by former president
Hipolito Mejia's allegations that the PLD government is trying
to cover-up the results of a study identifying problems in the
industry. ABA says the report could be referring to the 2003
bank crisis.


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

DYOLL GROUP: Angry Shareholders Mull Lawsuit
--------------------------------------------
Minority shareholders of Dyoll Group met Thursday evening at
Medallion Hall hotel to discuss possible litigation against the
Company's board of directors and the Financial Services
Commission (FSC), the Jamaica Observer reports.

The group plans to file a suit against the Company and the
regulator, which assumed temporary management control of the
Company last month, for keeping them in the dark about critical
investment information. They alleged that persons were led to
invest more in the stock in the run up to the suspension of
trading, and that now, they have no information on the status of
their investments nor the extent of their exposure.

The case will also cite lack of timely action by the regulator
against the company that might have reduced investors' exposure
well before the trading of shares was suspended.

"Neither the FSC nor Dyoll have informed shareholders to date.
The regulator has been busy with Dyoll's local book of business
and seems to have very little interest in shareholders," said
Richard Burgher, chairman of the Federal Capital Group and
convener of the minority shareholders' meeting.

Former bar association president and legal luminary Hillary
Phillips QC of the law firm Grant Stewart and Phillips has been
retained to guide the group on legal action.


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

BALLY TOTAL: Expects to Remain in the Red in 2004
-------------------------------------------------
Bally Total Fitness Holding Corporation (NYSE: BFT) ("Bally" or
the "Company") announced Tuesday selected operating data for the
fourth quarter and year ended December 31, 2004 and for the two
months ended February 28, 2005.

Highlights:

- Achieved record gross committed membership fees of $1.2
billion in 2004, a 14% increase over the prior year.

- Gross committed membership fees increased 8% in the fourth
quarter 2004 over the same period in the prior year.

- Same club gross committed membership fees grew 4% during the
fourth quarter 2004 and 9% for the year ended December 31, 2004.

- Number of new joining members increased 20% in the fourth
quarter 2004 over the prior year quarter and 22% for the full
year.

- New joining members increased 10% through February 2005 versus
prior year.

- Company expects to report net loss for the quarter and year
ended December 31, 2004.

"We are starting to see the benefit of our efforts over the past
12 months," said Paul Toback, Chairman and Chief Executive
Officer of Bally Total Fitness. "We have put in place a number
of initiatives to help drive membership, reduce costs and
attract the best talent to return the business to financial
health. Our operating metrics show that we are on the right
track."

"We have strengthened our finance team with three new
appointments. Finance veteran Carl Landeck joined us as CFO,
Katherine Abbott joined us from J.P. Morgan as Treasurer and
David Reynolds joined us from Comdisco, Inc. as Controller. Each
of these individuals brings substantial management and financial
turnaround experience, building the leadership of our finance
department and management team overall."

Operational Overview

In 2004, Bally made changes to its membership offerings that
gave new members more options for joining Bally. In addition to
month-to-month memberships, these include an add-on program for
friends and family and a results guarantee. A next generation of
customized memberships we call our build-your-own-membership
plan is also currently being tested in several markets.

In addition, Bally benefited from a more effective advertising
and marketing program. As a result, membership sales trends
continued to show improvement, with gross committed membership
fees growing 8% during the fourth quarter of 2004 and 14% for
the twelve months ended December 31, 2004 over the comparable
prior year periods.

New membership joins increased 20% during the fourth quarter of
2004 and 22% for the twelve months ended December 31, 2004 over
the comparable prior year periods. Total members grew 1% to
3,992,000 at December 31, 2004 from 3,956,000 at December 31,
2003.

The Company expects to report a net loss for the three and
twelve months ended December 31, 2004.

Operating Data

The following operating data reflect membership sales and cash
flow data. Since this data is not affected by the Company's
revenue recognition policy or other accounting matters, the
Company does not expect these items to change as a result of the
previously announced restatements. However, the following
operating data has not been reviewed by KPMG LLP and therefore
is subject to change, which changes may be material individually
or in the aggregate.

As of April 11, 2005, the Company had approximately $13.7
million of outstanding advances under the $100 million revolving
credit portion of its $275 million credit facility, including
$9.7 million in letters of credit.

On April 5, 2005, the Company announced that it had secured an
amendment and waiver to its existing credit agreement with its
revolving credit and term lenders. The amendment provided the
Company with additional covenant flexibility by exempting from
the calculation of various financial covenants certain costs
incurred by Bally in connection with the SEC and Department of
Justice investigations and other matters. The amendment also
waived certain technical defaults, which generally related to
the timing of delivery of financial information and perfection
of leasehold mortgages.

Conference Call

Bally will be hosting a conference call on Tuesday, April 12,
2005, at 5:00 p.m. Eastern Time. In order to participate, please
dial (877) 209-0397, international (612) 332-1025, at least 15
minutes before the start of the call and use ID Code "Bally
Total Fitness". The conference call can also be accessed through
the Company's web site at www.ballyfitness.com, where it will be
available for replay through April 27, 2005.

About Bally Total Fitness

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

To view selected operating data:
http://bankrupt.com/misc/BallyTotal.htm

CONTACT: Bally Total Fitness
         Mr. Jon Harris
         Phone: 773-864-6850
         E-mail: jharris@ballyfitness.com
         Web site: http://www.ballyfitness.com


CFE: Protesters Seek Reduction in Tariffs
-----------------------------------------
A group of people gathered outside the offices of Yucatan state
power company CFE in the city of Merida on Monday to protest
against high tariffs levied by the utility, reports Business
News Americas.

High tariffs "are harmful to the economy and stop the advance
and growth in productive sectors," said Enrique Ancona Tellgel,
president of the state council for the reduction of power
tariffs (Certey).

Certey is leading the protesters, which include local business
leaders, workers, farmers, and state and federal lawmakers.

Ancona claimed Certey submitted a formal request to the CFE in
November last year but is yet to get a response.

Ancona warned that if CFE does not come up with a more concrete
proposal in the coming days, Certey will organize mass protests
throughout the state that could include street blockades and/or
a general strike.

CFE reported a MXN9.6-billion (US$868 million) net loss in 2004,
up 52% from a MXN6.2-billion loss in 2003.

CONTACT: Comision Federal de Electricidad
         Rio Rodano 14, Col. Cuauhtemoc
         06598 Mexico, D.F., Mexico
         Phone: +52-55-5229-4400
         Fax: +52-55-5310-4614
         http://www.cfe.gob.mx


CYDSA: To Seek CDM's Approval on CER Program
--------------------------------------------
After gaining approval from the environment ministry Semarnat
for its carbon emission reduction (CER) program, industrial
group Cydsa is preparing to present project design documents to
the clean development mechanism (CDM), reveals Business News
Americas.

"We are advancing on the project, but the 001 methodology we are
using has not yet been finalized. It is being reviewed and may
be approved by the CDM executive board at its next meeting,
which should be end-May," Business News Americas quotes Cydsa
chemical division strategic planning director Walter Hugler as
saying.

The program aims to capture hydro fluorocarbon (HFC-23) gas to
stop it from escaping into the atmosphere. Once captured, the
gas would be frozen into liquid form and transported to a
treatment plant in the US (in Texas state) for destruction.

"We will use properly equipped trucks for the HFC-23 transport -
the gas is not toxic, the only problem with it is its effect on
the ozone layer," Hugler said.

Cydsa expects to launch the program by the end of the year. In
reducing greenhouse gases, Cydsa may be eligible to receive
carbon emission reduction certificates (CERs) as established in
the Kyoto protocol.

The CERs can be traded on the international market, with each
credit selling for US$4-$10. Cydsa hopes to generate 3.7 million
credits a year with the program, bringing into the Company
anywhere from US$148 million - 370 million in CER sales.

Cydsa has already been contacted by companies and organizations
interested in purchasing its CER certificates, he added, but
Cydsa will not yet commit to any interested party until the
methodology is approved. Also, "the certificate prices may
increase in the future."

Cydsa, which produces textiles, industrial packaging, chemicals,
petrochemicals and plastics, and offers wastewater and
environmental management services, saw its net losses soar to
MXN1.08 billion (US$97.3 million) in 2004 from losses of MXN807
million (US$72.7 million) in 2003.

At the end of December 2004, the industrial group's debt reached
MXN4.78 billion (US$431 million), which compared favorably to
liabilities of MXN7.52 billion (US$677 million) at the end of
2003.

CONTACT:  Jose de Jesus Montemayor Castillo
          Chief Financial Officer
          +011-52-81-8152-4585
          URL: http://cydsa.com/Ingles/index.htm


GRUPO IUSACELL: Reaches National Coverage With New Frequencies
--------------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL, NYSE: CEL), announced
Tuesday that it has received from the Mexican Federal
Telecommunications Commission (COFETEL) the results of the
auction of several frequency bands of the radioelectric spectrum
for the furnishing of fixed and mobile wireless service (PCS).
Grupo Iusacell, through its subsidiary Iusacell PCS de Mexico,
was allocated 10 MHZ in the PCS regions 2, 3, 5, 6, 7, 8 and 9.

By obtaining these frequencies, Iusacell becomes a company with
national coverage, which is the objective Iusacell has been
pursuing for some time, and has secured sufficient spectrum to
be able to offer more and better services to its customers in
the future.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.

Independent of the negotiations towards the restructuring of its
debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operates.

CONTACT: Grupo Iusacell, S.A. de C.V.,
         Investor Contacts
         Mr. Jose Luis Riera K.
         Chief Financial Officer
               or
         J. Victor Ferrer
         Finance Manager
         E-mail: vferrer@iusacell.com.mx
         Phone: +5255-5109-5927
         Web site: http://www.iusacell.com


GRUPO MEXICO: To Seek Shareholders Approval on Stock Split Plan
---------------------------------------------------------------
Grupo Mexico SA (GMEXICO.MX) will propose a three-for-one stock
split at a shareholders meeting scheduled for April 29, the
mining and railroad company revealed in a filing with the
Mexican Stock Exchange.

Citing the filing, Dow Jones Newswires reports that the
operation would see Grupo Mexico swapping 865 million class B
shares for 2.6 million new class B shares.

Grupo Mexico B shares have risen sharply in the past two years
as rising world copper prices led to a turnaround in the
company's performance.

Moreover, Grupo Mexico said it will propose the re-establishment
of a share-buyback program, for which a maximum amount will be
determined for this year.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Web site: http://www.gmexico.com


GRUPO MEXICO: SPCC Enters Into Registration Rights Agreement
------------------------------------------------------------
On April 4, 2005, Southern Peru Copper Corporation ("SPCC")
entered into a Registration Rights Agreement dated as of March
31, 2005 (the "Registration Rights Agreement") with Cerro
Trading Company, Inc. ("Cerro"), SPC Investors, L.L.C. ("SPC"),
Phelps Dodge Corporation ("PD"), Phelps Dodge Overseas Capital
Corporation ("PDOCC"), Climax Molybdenum B.V. ("Climax") and
Americas Mining Corporation ("AMC").

The Registration Rights Agreement contemplates that SPCC will
file as promptly as practicable, and in any event will use its
reasonable best efforts to file by April 29, 2005 (i.e., within
20 business days from SPCC's April 1, 2005 acquisition of Minera
Mxico, S.A. de C.V.), a shelf registration statement on Form S-
3 (the "Registration Statement") covering the resale of all SPCC
Common Stock held by Cerro, SPC, PDOCC, Climax and their
respective permitted transferees (collectively, the "Selling
Stockholders") with the Securities and Exchange Commission (the
"Commission"). In general, during the first six months following
the effectiveness date of the Registration Statement (the
"Initial Six-Month Period"), the Selling Stockholders will only
be permitted to sell their Common Stock in SPCC through
underwritten offerings sponsored by SPCC and SPCC will not be
permitted to conduct primary offerings of its common stock. The
price, underwriting discount and other financial terms related
to the resale of SPCC Common Stock in connection with any
underwritten offering conducted during the Initial Six-Month
Period will be subject to the reasonable approval of each
Selling Stockholder electing to participate in such underwritten
offering. Subject to monthly volume-based selling restrictions,
the Selling Stockholders may effect further sales of their
Common Stock in SPCC during the six-month period following the
end of the Initial Six-Month Period, but SPCC will not be
obligated to sponsor any underwritten offerings in connection
with such further sales.

Pursuant to the Registration Rights Agreement, AMC, Cerro, SPC,
PDOCC and Climax also agreed to convert on the effectiveness
date of the Registration Statement all of their Class A Common
Stock, in accordance with SPCC's Restated Certificate of
Incorporation, into an equal number of fully paid and non-
assessable shares of SPCC's Common Stock.

As of March 31, 2005, Cerro, SPC, PDOCC and Climax owned
22,551,884 shares of SPCC's Class A Common Stock, representing
34.3% of the total number of shares of Class A Common Stock
issued and outstanding.

Southern Peru Copper Corporation (SPCC) is one of Peru's largest
companies and one of the ten largest copper producers worldwide.
The ownership of SPCC shares, either directly or through
subsidiaries, is as follows: Grupo Mexico (75.1%), Cerro Trading
Company (7.7%); Phelps Dodge (7.6%) and other shareholders
(9.6%).

CONTACT:  SOUTHERN PERU COPPER CORP.
          Avenida Caminos del Inca #171
          Chacarilla del Estanque
          Santiago de Surco
          Lima, 33
          Peru
          Website: http://www.southernperu.com
          Phone: +51-(0)1-372-1414


HYLSAMEX: Imsa Hints at Participating in Spin-off
-------------------------------------------------
Industrial conglomerate Grupo Imsa SA is looking at the
possibility of participating in the spin-off of steel company
Hylsamex SA, Imsa Chief Executive Eugenio Clariond said after
Imsa's AGM on Monday.

However, Imsa will not make any "rash" decisions and may
ultimately decide not to invest in Hylsamex at all, but if it
does, it will be on a "viable and financially sound basis," he
added.

Grupo Alfa, which spun off 39% of its 90% stake in Hylsamex over
a year ago, had planned to complete the spin-off in the first
quarter of this year. But a rebound in steel prices has led
several steel companies to approach Alfa with the idea of buying
Hylsamex or merging it into their own operations.

After years of losses, Hylsamex returned to profitability in
2004 and reduced its debt by almost 50% thanks to strong demand
and high steel prices.

Hylsamex sales were MXN26.8 billion (US$2.4bn) in 2004, a 59%
increase on 2003, while operating income increased 912% to
MXN7.4 billion during the same period.

Grupo Alfa said it is in discussions with four foreign companies
and two Mexican companies over the future of Hylsamex.

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

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

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



===========
P A N A M A
===========

* PANAMA: IMF Board Commends Efforts to Strengthen Fiscal Health
----------------------------------------------------------------
On March 23, 2005, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with
Panama.

Background

For the second consecutive year, real GDP growth was strong. In
2004, real GDP grew about 6 percent led by a boom in
construction (stimulated by temporary tax incentives) and by
export-oriented services (in particular the Colon Free Zone and
ports).

Unemployment declined modestly in 2004, despite high real GDP
growth. Though 2004 was a year of high oil prices, inflation
remains low as has been traditional in Panama.

The nonfinancial public sector deficit (excluding the Panama
Canal Authority) increased slightly, to 5 percent of GDP in 2004
from 4.7 percent in 2003. The new administration took revenue
and expenditure measures starting in September 2004 to contain
the deficit. Aspects of fiscal accounting methods were also
reviewed to improve fiscal transparency.

The banking system experienced a second year of recovery, after
the financial markets turmoil in financial markets in South
America during 2002. Domestic deposits rose by 9 percent and
nonresident deposits remained stable in 2004. Domestic credit to
the private sector grew 9 percent in 2004 because of rapid
growth of credit in commerce and mortgages fuelled by the
economic expansion.

The financial system remains sound. Nonperforming loans ratios
averaged 2 percent and capital adequacy ratios were 19 percent
at end-September 2004. Liquidity remains ample despite pressures
on the liquidity of the National Bank of Panama resulting from
increased credit to the government and a reduction in deposits
from the social security fund.

Panama remains focused on concluding free trade agreements.
After reaching agreements with Taiwan and El Salvador, Panama is
now pursuing negotiations with the United States, Costa Rica,
and Nicaragua. Negotiations with the United States are at an
advanced stage.

In 2005, GDP growth is likely to slow down. Construction sector
activity will decelerate, though the level of activity will
remain high because tax incentives were extended until end-2005.
The contribution to growth from the external sector, though
positive, is likely to be smaller than in 2004 as a result of a
less favorable, though still positive, external environment. The
administration is committed to reducing the nonfinancial public
sector deficit in 2005. Inflation is expected to remain low.

Executive Board Assessment

Executive Directors welcomed Panama's strong economic growth
performance, which has helped lower unemployment in a setting of
continued low inflation. Noting the progress made in reducing
extreme poverty, Directors encouraged the authorities to
continue with the development of a well-targeted program for
rural poverty reduction and the achievement of the Millennium
Development Goals. Directors commended the authorities' emphasis
on fiscal discipline and transparency in their economic program,
and concurred that fiscal deficit reduction and the related
improvement in public debt dynamics are key for sustaining
economic growth and lowering poverty. They noted that, in moving
forward, the main challenges are to strengthen government
finances and to restore the long-term viability of the public
pension system, while fostering medium-term growth prospects by
enhancing the competitiveness of the private sector.

Directors commended the authorities' commitment to strengthening
the fiscal position, as reflected in the budget for 2005 and in
the recently adopted fiscal reform. They supported envisaged
reductions in current expenditure and the recently adopted
reforms to the tax system, which could underpin a stronger-than-
targeted fiscal performance in 2005. In this regard, Directors
encouraged the authorities to make use of stronger-than-budgeted
revenues to further reduce unpaid bills to domestic suppliers.

Directors welcomed the emphasis of the fiscal reform on equity
considerations, and the focus of the tax reform on increasing
the buoyancy of tax collections and enhancing its efficiency.
They concurred that the focus of the authorities' fiscal program
on expenditure restraint appropriately targets overstaffing and
improved efficiency in other spending areas, including public
investment.

Directors commended the authorities' efforts to launch an
information campaign on the reform of social security. They
noted that, given the fundamental imbalance between pension
contributions and benefits, substantial efforts will be
necessary to restore long-term equilibrium to the public pension
system. Directors agreed with the importance of the authorities'
actions to improve portfolio management and eliminate
inefficiencies of the social security system.

Directors, observing that the fiscal responsibility law had not
functioned well, recommended that revisions incorporate
procedural as well as numeric rules, and emphasized that the
revised rules be well-defined, transparent, and supported by
sound policies. In this context, Directors agreed that the
presentation of fiscal accounts both excluding and including the
accounts of the Panama Canal Authority is appropriate, and they
welcomed the authorities' decision to assess fiscal transparency
practices through a fiscal ROSC.

Directors commended the soundness of Panama's financial system.
They observed that the expansion of regional banking heightens
the need for effective supervision, and supported the efforts of
the Superintendency of Banks to enhance coordination across
countries in the region. Directors encouraged the authorities to
strengthen governance in the National Bank of Panama and the
Savings Bank. The business plans for these banks should be based
on sound commercial banking practices and include mechanisms to
ensure that the National Bank's credit to the government remains
short-term in nature.

Directors noted the importance of strengthening the
competitiveness of the export-oriented service sector for
Panama's medium-term outlook. They welcomed Panama's commitment
to further integration with the regional and global economy and
observed that the prospective free trade agreement with the
United States could help attract foreign direct investment by
providing greater assurance of a stable legal framework, and
stimulate resources to move to the more productive sectors of
the Panamanian economy. Directors supported the authorities'
strategy for fostering greater competitiveness and productivity
by strengthening the business climate, streamlining business
procedures, and enhancing the quality of human capital through
sustained investment in education. They encouraged the
authorities to enhance labor market flexibility by extending
flexible employment practices from the special economic zones to
other sectors.

Directors welcomed the authorities' emphasis on good governance
and supported their efforts to fight corruption. They encouraged
the authorities to adopt an integrated approach to addressing
governance problems, including in the civil service and in
government procurement. Directors noted that the Panama Canal
Authority could potentially provide an anchor for institution
building, and noted that a prospective expansion of the canal,
if approved in a referendum and well managed, could yield
important benefits for the Panamanian economy. In view of the
project's prospectively large financing costs, Directors
supported the authorities' aim of minimizing fiscal risks, in
particular by ensuring that the Canal Authority is run on a
commercial basis.

Directors encouraged the authorities to improve the quality,
timeliness and coverage of economic data. They welcomed the
authorities' interest in a data ROSC, which would assess
strengths and identify weaknesses in economic statistics, and
supported the authorities' intention to request a follow-up to
the Offshore Financial Center assessment.

To view economic indicators:
http://bankrupt.com/misc/Panama.htm



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

CANTV: CADIVI Grants US$35.7M Dividend on ADR
---------------------------------------------
CANTV is set to pay US$35.7 million in dividends on its American
Depositary Receipts (ADR) after receiving approval for the
dollar denominated payment from local foreign exchange regulator
CADIVI.

Reuters reports that the dividend payment will be pegged to the
current fixed exchange ratio of 2,150 bolivars to one U.S.
dollar.

CANTV paid dividends to its local investors in December but
deferred payment to its ADR holders in compliance with toughened
foreign exchange controls.

About CANTV

Cantv, a Venezuelan corporation, is the leading Venezuelan
telecommunications services provider with approximately 3.1
million access lines in service, 3.1 million cellular
subscribers and 363 thousand Internet subscribers as of December
31, 2004.

The Company's principal strategic shareholder is a wholly owned
subsidiary of Verizon Communications Inc. with 28.5% of the
capital stock. Other major shareholders include the Venezuelan
Government with 6.6% of the capital stock (Class B Shares),
employees, retirees and employee trusts which own 7.1% (Class C
Shares) and Telefonica de Espana, S.A. with 6.9%. Public
shareholders hold the remaining 50.9% of the capital stock.

CONTACT: Cantv - Investor Relations
         Phone: +011 58 212 500-1831 (Master)
                +011 58 212 500-1828 (Fax)
         E-mail: invest@cantv.com.ve


CERRO NEGRO: Talks Between Partners, Govt. Prove Fruitless
----------------------------------------------------------
The partners in the extra-heavy crude upgrading project Cerro
Negro and the energy and oil ministry failed to reach an
agreement regarding a unilateral increase in royalty rates.

"Talks have ceased, there's no agreement," Business News
Americas quoted an unnamed official as saying.

US oil company Exxon Mobil, the world's largest oil firm,
partners with UK's BP PLC (BP) and state-run Petroleos de
Venezuela SA (PDVSA) in Cerro Negro.

During an opening of Venezuela's oil industry to foreign capital
in the 1990s, the government assigned 1% royalty rates to
projects like Cerro Negro given that extra-heavy crude projects
carry a heftier price tag than regular oil production projects.

In October last year, President Hugo Chavez ordered a royalty
increase from the 1% rate to the 16.7% maximum, a move that
angered the Cerro Negro partners.

Exxon Mobil argues the low tax rate compensated for heavy
investment during the initial phases of the project. Oil
Minister Rafael Ramirez, however, said the increase is justified
because of skyrocketing oil prices in the world market, and
ruled out the possibility of the tax hike's rollback.


PDVSA: Affirms ENARSA Deal to Maintain Competitive Pricing
----------------------------------------------------------
Under their service station brand name, state oil companies
PDVSA and ENARSA offer Argentinean consumers the most attractive
price for ecological and common naphtha, and gasoil in the
market.

The price of fuel sold in ENARSA / PDV service stations owned by
state companies Petroleos de Venezuela (PDVSA) and Empresa
Nacional de Energia Argentina (Enarsa) ranks among the most
competitive prices in the Argentinean market.

The price of premium (ecological) naphtha at ENARSA / PDV
stations is maintained at 1.969 pesos per liter, 2 cents below
the closest competitor's. The sale price of common naphtha is
1.669 pesos at Argentinean-Venezuelan service stations.

The liter of gasoil sold at ENARSA / PDV gas stations is
maintained at 1.419 pesos, which represents at least a 2-cent
savings for the Argentinean consumer compared to the price to
pay in any other service station.

PDVSA's presence in the Argentinean market under the ENARSA /
PDV brand name stems from the energy integration policy fostered
among Latin American countries by the President of the
Bolivarian Republic of Venezuela , Hugo Chavez Frias, and other
presidents of the region to overcome the vast inequalities that
affect the peoples in this continent.

ENARSA / PDV has two service stations in Argentina , which are
located in strategic areas: One station on Avenida Del
Libertador, in the Federal capital city, and another one on the
Pan American highway of the Buenos Aires Province . In the
aggregate, the average traffic volume of both ways exceeds 2
million vehicles per day.

Both state oil companies plan to continue establishing service
stations in the Argentinean territory, which should allow them
to commercialize an average volume of 55,000 barrels of fuel per
day, which are equivalent to 4 million liters per day
approximately.

PDVSA and ENARSA's alliance was reaffirmed within the framework
of the Iguazu Statement about the Petrosur's initiative executed
on April 2004 for the development of energy integration projects
in the region.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: Maintains Gasoline Supply to U.S.
---------------------------------------
Minister of Energy and Petroleum, and President of Petroleos de
Venezuela S.A. Rafael Ramirez ratified that Venezuela continues
its gasoline supply to the United States, a major client in the
international market, and that only two cargoes carrying 300,000
barrels of product were deferred after recent technical problems
in the Amuay Refinery.

"We have not suspended gasoline delivery to the United States.
Only to cargoes had to be deferred. We communicated with our
clients through the Refining Vice-President's Office to let them
know that we were considering other options to honor our
commitments, and had not suspended gasoline delivery".

Ramirez said that in the event gasoline supply had been
suspended, PDVSA would have had to declare "Act of God", and the
price of gasoline in international markets would have gone up.

Minister Ramirez reported that Petroleos de Venezuela has
several options available to honor its commitments with
international clients, including gasoline supply from the Isla
Refinery, and product routinely stored by the Corporation in its
refining system.

A four-day shutdown

The Amuay refinery, which makes part of the Paraguana Refining
Complex, reached last Monday a crude processing volume of 430
thousand barrels per day, thus exceeding the 419 MBD target
scheduled for this month. By maintaining this processing volume,
as re-scheduled, losses incurred from a power failure shutdown
last March 31 will be compensated for, reported PDVSA Refining
Vice-President Alejandro Granado.

"Four days after shutdown, distillation and naphtha
fractionation units were safely started-up, to begin processing
significant volumes of crude. Progressively, as required by the
start-up sequence, other plants were incorporated into
production to yield Diesel, desulphurized gasoil, jet fuel, and
gasoline", Granado pointed out.

PDVSA Refining Vice-President added that the Venezuelan refining
system, which includes the Isla refinery in Curacao, operates on
a supplementary basis. It allows to handle contingencies through
the supply and exchange of components required for finished
products, as well as to meet market obligations thanks to the
system inventory levels, while giving priority to the domestic
market.

Current inventory levels of the Amuay refinery contribute one
million five-hundred and twenty-five thousand barrels of
gasoline and components for gasoline blending, both for the
leaded and unleaded types, he said.

Furthermore, Granado pointed out that the Flexicoker unit which
was under commissioning after an overhaul will also begin
operations following the refinery sequence.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: Negotiating Long-Term Supply Deals With Repsol, Cepsa
------------------------------------------------------------
State oil company Petroleos de Venezuela (PDVSA) is looking to
secure long-term oil supply contracts with Spanish refiners
Repsol YPF S.A. and Cepsa S.A., reports Dow Jones Newswires.

Talks between the companies involved are underway, according to
PdVSA President Rafael Ramirez.

Ramirez said PdVSA is looking for "direct" contracts with the
refineries these companies operate, and that PdVSA won't scrap
existing contracts to send oil to Spain.

"It will be from volumes that are not already committed,"
Ramirez said.




                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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
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* * * End of Transmission * * *