TCRLA_Public/050503.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

              Tuesday, May 3, 2005, Vol. 6, Issue 86

                            Headlines


A R G E N T I N A

BANCO GALICIA: ARS1 Bln Bond Program Gets Shareholders' Nod
BANCO GALICIA: IFC Authorizes $40M Loan
CIT S.A.: Court Allows Liquidation
EUROMAYOR: Bonds Remain at Default Level
FRANCHISE INVESTMENT: Enters Bankruptcy on Court Orders

IRSA: Conversion Reduces Debt by $4.8M
NICOL S.A.: Court OKs Creditor's Bankruptcy Petition
PATRIOT S.A.: Court Favors Involuntary Bankruptcy Motion
PROTELIA S.A.: Seeks Reorganization Approval From Court
ROMBOY S.A.: Halts Debt Payments, Seeks to Liquidate

SIEMAR S.A.C. Y C.: Liquidates Assets to Pay Debts
TGS: Fails to Renegotiate Contract With Govt.


B E R M U D A

GRN REINSURANCE: Liquidator to Declare Final Dividend


B R A Z I L

BANCO SANTOS: Federal Police Files Fraud Charges Vs. Owner
BRASKEM: Odebrecht, Petrobras Renew Option to Increase Stake
NII HOLDINGS: Strong Subscriber Growth Boosts Income 32% in 1Q05
SABESP: Board Approves Payment of Dividends
TCP: Ebitda Rises 10.2% in 1Q05 From Previous Quarter

TELEMAR: Declares Interest On Capital - 2005 FISCAL YEAR


C O L O M B I A

* COLOMBIA: IMF Executive Board OKs $613M Stand-By Arrangement


J A M A I C A

AIR JAMAICA: Board Agrees to Dissolve Holding Company
AIR JAMAICA/BWIA/LIAT: Caribbean Needs Strong Airline  
DYOLL GROUP: NCB Makes $536M Impairment Provision


M E X I C O

AHMSA: Presents New Debt Proposal to Creditors
AOL LATIN AMERICA: Receives $14.1M for AOL Mexico SaleS
CYDSA: Cuts Net Losses in 1Q05
GRUPO MEXICO: To Pay MXN0.75/Share in Dividends This Month
MAXCOM TELECOMUNICACIONES: Revenues Up 26% in 1Q05

PEMEX: Government Could Pass New Tax Bill by June
TV AZTECA: Charges Brewing for Company Chairman
TV AZTECA: Approves $80M Cash Distribution
VITRO: Ratings Reflect High Financial Leverage - S&P


P E R U

* PERU: Signs New $613 Million Debt Deal With IMF


P U E R T O   R I C O

R&G FINANCIAL: Wechsler Harwood LLP Files Class Action Suit


T R I N I D A D   &   T O B A G O

BWIA: Executive Confirms Continued Flights to Suriname


V E N E Z U E L A

PDVSA: Govt. Wants Cooperation Among State-Owned Oil Companies


     - - - - - - - - - -


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

BANCO GALICIA: ARS1 Bln Bond Program Gets Shareholders' Nod
-----------------------------------------------------------
Shareholders of Banco de Galicia y Buenos Aires gave a go-ahead
signal to the creation of a five-year, ARS1 billion ($1=ARS2.91)
bond program at a meeting Thursday, reports Business News
Americas.

In a filing to the local stock exchange, the bank said that
proceeds from the bond sale would be used for "investments in
physical assets situated in the country, the integration of
working capital in the country, the refinancing of obligations
(or) the integration of capital injections in subsidiaries."

Banco Galicia, the main banking unit of Argentine financial
company Grupo Financiero Galicia (GGAL), reached an agreement
with its creditors last year to restructure $1.3 billion in
debt. It issued three series of dollar-denominated bonds as part
of that deal.

Standard & Poor's Rating Services said in late March it will
upgrade Banco Galicia's national scale rating from "raBBB-" to
"raA" once Argentina completes its $103 billion sovereign debt
restructuring. That settlement has been delayed pending a U.S.
court ruling related to the government debt swap.


BANCO GALICIA: IFC Authorizes $40M Loan
---------------------------------------
The World Bank's commercial arm, the International Finance
Corporation (IFC), approved a US$40 million loan to Banco de
Galicia.

The bank will use the money to extend loans to small and medium
companies related to exports in Argentina.

The loan will be disbursed in two tranches: one of US$25 million
and a second of US$15 million, which will take place only if the
conditions of the first loan are met.

CONTACT:  Banco de Galicia Y Buenos Aires
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman

          Grupo Financiero Galicia SA
          2nd Floor
          No 456 Tte Gral Juan D Peron
          Buenos Aires
          Argentina 1038
          Phone: +54 11 4343 7528/9475
          Home Page: http://www.gfgsa.com
          Contact: Atty. Abel Ayerza, Chairman


CIT S.A.: Court Allows Liquidation
----------------------------------
Cit S.A. of Buenos Aires was declared bankrupt after Court No.
24 of the city's civil and commercial tribunal endorsed a
liquidation petition filed against the company.

Clarin reports that the telephone network installation company
went into bankruptcy protection after failing to pay debts
estimated at US$7,405.73.

The city's Clerk No. 48 assists the court in resolving this case
that will close with the sale of the Company's assets. Proceeds
from the sale will be used to repay the Company's debts.

CONTACT: Cit S.A.
         Av. Jorge Newbery 4574
         Buenos Aires


EUROMAYOR: Bonds Remain at Default Level
----------------------------------------
Over US$7.4 million worth of corporate bonds issued by Argentine
company Euromayor S.A. de Inversiones received 'D' ratings from
local ratings agency Evaluadora Latinoamericana S.A.
Calificadora de Riesgo. The rating was made based on the
company's financial status as of January 31, 2005.

The affected bonds include some US$3.078 million worth of bonds
called "Serie II Clase dólares", and about US$4.42 million of
"Serie II Clase pesos". Both set of bonds are classified under
"Series and/or Class", and matured in June 2003.


FRANCHISE INVESTMENT: Enters Bankruptcy on Court Orders
-------------------------------------------------------
Franchise Investment Company S.A. FICSA enters bankruptcy
protection after Court No. 19 of Buenos Aires' civil and
commercial tribunal, with the assistance of Clerk No. 38,
ordered the company's liquidation. The order effectively
transfers control of the company's assets to a court-appointed
trustee who will supervise the liquidation proceedings.

Infobae reports that the court selected Ms. Ana Maria Pazos as
trustee. Ms. Pazos will be verifying creditors' proofs of claims
until the end of the verification phase on May 30.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on July 12 followed by the general report that is due on
September 7.

CONTACT: Franchise Investment Company S.A. FICSA
         Avda Corrientes 480
         Buenos Aires

         Ms. Ana Maria Pazos, Trustee
         Montiel 1147
         Buenos Aires


IRSA: Conversion Reduces Debt by $4.8M
--------------------------------------
Inversiones y Representaciones Sociedad Anonima (IRSA) reported
that a holder of Company's Convertible Notes exercised it
conversion right.

Hence, the financial indebtedness of the Company shall be
reduced in US$ 4,865,355 and an increase of 8,927,256 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 338,425,707 to 347,352,963. On the other hand,
the amount of registered Convertible Notes is US$ 58,488,655.

About IRSA

IRSA is Argentina's largest, most well diversified real estate
company, and it is the only company in the industry whose share
is 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


NICOL S.A.: Court OKs Creditor's Bankruptcy Petition
----------------------------------------------------
Mr. Vicente Ledesma successfully sought for the bankruptcy of
Nicol S.A. after Court No. 20 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra."

Clarin says that the creditor sought for the Company's
liquidation after the latter failed to pay debts amounting to
US$ 6,499.51.

The city's Clerk No. 40 assists the court on the case.
  
CONTACT: Nicol S.A.
         Moreno 634
         Buenos Aires


PATRIOT S.A.: Court Favors Involuntary Bankruptcy Motion
--------------------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared Patriot S.A. bankrupt, says Clarin. The ruling comes in
approval of the petition filed by the Company's creditor, Mr.
Guillermo Nemirosky, for nonpayment of US$6,300.00 in debt.

Clerk No. 18 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

CONTACT: Patriot S.A.
         San Martin 569
         Buenos Aires


PROTELIA S.A.: Seeks Reorganization Approval From Court
-------------------------------------------------------
Court No. 14 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Protelia S.A.

Local news source Clarin reports that the construction supplies
company filed the request after defaulting on its debt payments
since April 8 this year.

The reorganization petition, if granted by the court, will allow
the Company to negotiate a settlement with its creditors in
order to avoid a straight liquidation.  The city's Clerk No. 27
assists the court on this case.

CONTACT: Protelia S.A.
         San Martin 793
         Buenos Aires


ROMBOY S.A.: Halts Debt Payments, Seeks to Liquidate
----------------------------------------------------
Court No. 16 of Buenos Aires' civil and commercial tribunal is
presently reviewing the merits of a voluntary liquidation
petition submitted by Romboy S.A., says Clarin. The city's Clerk
No. 32 assists the court on this case.

CONTACT: Romboy S.A.
         Larraya 2280
         Buenos Aires


SIEMAR S.A.C. Y C.: Liquidates Assets to Pay Debts
--------------------------------------------------
Buenos Aires-based Siemar S.A.C. y C. will begin liquidating its
assets following the bankruptcy pronouncement issued by Court
No. 22 of the city's civil and commercial tribunal.

Infobae reports that the bankruptcy ruling places the company
under the supervision of court-appointed trustee Alberto A.
Vilela. The trustee will verify creditors' proofs of claims
until May 30. The validated claims will be presented in court as
individual reports on July 26.

The trustee will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, September 7.

CONTACT: Mr. Alberto A. Vilela, Trustee
         Rodriguez Pena 431
         Buenos Aires


TGS: Fails to Renegotiate Contract With Govt.
---------------------------------------------
Transportadora de Gas del Sur (TGS), Argentina's largest natural
gas transportation company, has failed to renegotiate a
concession with the Argentine Government.

At a recently held public assembly, TGS asked the government to
allow a 40% hike on the rates of its services. The Company
insisted that the hike percentage is necessary for it to
increase its transport capacity in order satisfy demand.

TGS delivers approximately 61% of the country's total gas
consumption.

However, the government turned down the request, saying it could
only allow a 10% hike.

In late March, Standard & Poor's raised its local and foreign
currency ratings on TGS to 'B-' from 'CCC+'. However, the
ratings agency warned the ratings could come under pressure if
the renegotiation of the concession contract negatively affects
TGS' business or financial profiles or if further government
intervention (i.e., as a form of mandatory investments,
additional export duties, or significant natural gas
restrictions to be processed at the Cerri complex in the
province of Buenos Aires) significantly affects the Company's
cash generation.

TGS has approximately US$910 million in debt outstanding.

CONTACT: Transportadora de Gas del Sur S.A.
         Don Bosco 3672, 5th Floor
         1206 Capital Federal
         Buenos Aires,
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         E-mail: eduardo_pawluszek@tgs.com.ar
         Web Site: http://www.tgs.com.ar/



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

GRN REINSURANCE: Liquidator to Declare Final Dividend
-----------------------------------------------------
                  Notice Of Final Dividend
    GRN Reinsurance International Limited - In Liquidation

Notice is hereby given that it is the Liquidator's intention to
declare a first and final dividend in this matter on May 25,
2005 and that the same will be mailed to creditors whose claims
have been admitted in this liquidation.

Creditors who have not already done so are required to file a
proof of claim on or before May 13, 2005 by sending same to the
Liquidator in care of Ernst & Young, Reid Hall, 3 Reid Street,
Hamilton, Bermuda (attn: David Alexander). Proof of claim forms
can be obtained from the same address or by calling + 441-294-
5389.

CONTACT: Mr. John C. McKenna
         Liquidator
         Ernst & Young
         Reid Hall
         3 Reid Street
         Hamilton
         Bermuda HM 11
         Tel: 295 7000
         Fax: 294 5318



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

BANCO SANTOS: Federal Police Files Fraud Charges Vs. Owner
----------------------------------------------------------
Intervened bank Banco Santos owner, Edemar Cid Ferreira, is now
facing fraud charges, according to Business News Americas.

The federal police charged Cid Ferreira along with several
officials and directors of Banco Santos, Banco BVA and Banco
Modal as part of an effort to bust a group that allegedly
committed fraud against the Brazilian federal revenue service
and Brazil's social security agency, the INSS.

The group reportedly used a trading company called Vale Couros
for its fraudulent operations, and that company was acquired by
Banco Santos in June last year.

Banco Santos has been under the central bank's intervention
since November 2004 after the financial institution ran out of
cash to cover its bad loans. The central bank is yet to decide
if the bank will be liquidated or not.


BRASKEM: Odebrecht, Petrobras Renew Option to Increase Stake
------------------------------------------------------------
Braskem S.A., leader in the thermoplastic resins segment in
Latin America and one of the three largest Brazilian privately-
owned industrial companies, announced Friday that its
controlling shareholder (Odebrecht S.A. and its subsidiaries
ODBPAR Investimento S.A. and Nordeste Quimica S.A. - NORQUISA)
entered into a Second Amendment to Memorandum of Understanding
regarding the execution of a Shareholders' Agreement in respect
of Braskem, with Petrobras Quimica S.A. - Petroquisa (a
subsidiary of Petroleo Brasileiro S.A.), amending and restating
the First Amendment entered into on July 26, 2002, which Second
Amendment establishes new terms and conditions, the principal
terms of which are set forth below:

1. Petroquisa Option to Increase its Ownership of Share Capital
of Braskem:

Odebrecht, Norquisa, ODBPAR and Petroquisa granted an option to
Petroquisa for Petroquisa to purchase (the "Option") common
shares of Braskem that will result in Petroquisa owning up to
30% of the voting share capital of Braskem (the "Option
Shares").

2. Expiration of Option:

If Petroquisa elects to exercise the Option, it must do so prior
to December 31, 2005 in a single exercise in respect of all of
the Option Shares.

3. Payment for Option Shares:

If Petroquisa exercises the Option, Petroquisa must pay for the
Option Shares through a contribution of:

(a) its ownership interest in petrochemical companies located in
the Triunfo Petrochemical Complex in Rio Grande do Sul; and

(b) its ownership interest in other petrochemical companies that
Braskem considers to be strategic(collectively, (a) and (b), the
"Assets").

If the value of the Assets contributed as payment for the Option
Shares is insufficient for Petroquisa to obtain the level of
ownership in the voting share capital of Braskem that it desires
(up to the 30% limit set forth above), Odebrecht, ODBPAR and
Norquisa will agree to sell the remaining Option Shares to
Petroquisa for the price per share at which Braskem issues
Option Shares, determined as set forth in Item 4 below.

If the value of the Assets contributed as payment for the Option
Shares exceeds the value of 30% of the voting share capital of
Braskem, Petroquisa will be required to subscribe for class "A"
preferred shares of Braskem with the excess value of the Assets.

In order to exercise the Option, Petroquisa must inform
Odebrecht regarding which Assets it intends to use to subscribe
for the Option Shares by September 29, 2005.  Odebrecht has the
right to terminate the Option if Petroquisa does not include, as
part of the Assets designated to be contributed, Petroquisa's
ownership interests in petrochemical companies located in the
Triunfo Petrochemical Complex in Rio Grande do Sul that
Odebrecht considers essential to the grant of the Option.

4. Valuation Methodology of the Assets:

If Petroquisa elects to exercise the Option, Petroquisa must
deliver written notice to Odebrecht, Norquisa and ODBPAR on or
prior to October 14, 2005 informing them of its decision to
commence the valuation process of the Assets in order to allow
for the eventual exercise of the Option.

The Option Shares will be valued based on the economic value of
Braskem, which will be calculated using the discounted cash flow
method, without giving effect to any control premium, and the
value of the Assets to be contributed to Braskem will also be
calculated using the discounted cash flow method for each
company involved, without giving effect to any control premium
and using the same criteria and valuation date (as that used for
Braskem).

5. Ownership of Other Petrochemical Companies:

The Second Amendment amends and restates all of the terms and
conditions of the First Amendment, including the elimination of
the restriction on Petroquisa from owning interests in other
petrochemical companies or projects following its exercise of
the Option.  The terms of the Memorandum, however, remain in
full force and effect.

6. Shareholders' Agreement:

Simultaneously with the exercise of the Option, the parties have
agreed to enter into a shareholders' agreement in respect of
their ownership interests in Braskem, which agreement will
include in greater detail the terms and conditions of the
Memorandum and the Second Amendment.

The Second Amendment went into effect on April 29, 2005 and will
remain in effect through December 31, 2005.

Pedro Novis, Chairman of the Board of Directors of Braskem,
stated that "the renewal of the option took into consideration
the importance to Brazil, to Brazilian companies and to their
shareholders of the acceleration of the integration process in
the petrochemical sector, with significant synergy gains and
increased competitiveness of these companies."

Jose Carlos Grubisich, Chief Executive Officer of Braskem, added
that "this decision demonstrates the confidence of shareholders
in the business model of the company and its potential for
growth with value creation."  

About Braskem

Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), born out of
an August 2002 merger between local groups Odebrecht and
Mariani, with giant petrochemical operation Copene as its base,
sells its products in Latin America, the United States and
Europe.

CONTACT: Braskem S.A.
         Av. Nacoes Unidas
         4777 Cep
         San Paulo, 05477-000
         Brazil

         Investor Relations:
         Mr. Jose Marcos Treiger
         Phone: +55-11-3443-9529
         E-mail: jm.treiger@braskem.com.br

         Mr. Luiz Henrique Valverde
         Phone: +55-11-3443-9744
         E-mail: luiz.valverde@braskem.com.br
         Web site: http://www.braskem.com.br


NII HOLDINGS: Strong Subscriber Growth Boosts Income 32% in 1Q05
----------------------------------------------------------------
HIGHLIGHT:

- Subscriber additions of 106,500 - a 19% increase over first
quarter 2004 resulting in ending subscribers of 1.99 million

- Consolidated operating revenues of $370 million - a 29%
increase over first quarter 2004

- Consolidated operating income before depreciation and
amortization of $100 million - a 23% increase over first quarter
2004

- Mexico spectrum license transfer completed - adding an average
15MHz per market for less than $4 million, excluding annual fee,
bringing NII's average spectrum position to 20MHz nationwide in
Mexico

- Quarter-end consolidated cash and short-term investments of
$335 million

NII Holdings, Inc. (Nasdaq: NIHD) announced Friday its
consolidated financial results for the first quarter of 2005.
The Company reported consolidated operating revenues of $370
million, a 29% increase as compared to the first quarter of
2004, and consolidated operating income before depreciation and
amortization of $100 million, a 23% increase as compared to the
same period last year.

The Company added about 106,500 net subscribers to its network
during the quarter, an increase of 19% over the first quarter of
2004, resulting in approximately 1.99 million subscribers as of
March 31, 2005. The Company generated consolidated operating
income of $74 million during the quarter; a 30% increase over
the first quarter of 2004 and reported first quarter
consolidated net income of $44 million, or $0.64 per basic
share. NII Holdings ended the first quarter of 2005 with $335
million in consolidated cash, cash equivalents and short-term
investments.

Commencing in the fourth quarter of 2004 and effective for the
full year 2004, the Company eliminated its one-month lag
financial reporting policy. As such, the results for both the
current quarter and comparisons to the prior year in this press
release are presented on a calendar year basis.

"NII is off to a terrific start in 2005, driving strong year-
over-year growth in subscribers and operating cash flow, while
maintaining its operational leadership position in the Latin
American wireless market," said Steve Shindler, NII Holdings'
Chairman and CEO. "As wireless growth accelerates across all of
Latin America, NII is in a perfect position to benefit from this
growth as well as through the expansion into new markets in
Mexico and Brazil."

NII Holdings' average monthly revenue per subscriber (ARPU) was
$56 for the first quarter, the same as the first quarter of
2004. The Company also reported churn of 1.8% for the first
quarter - a 10 basis point improvement year over year - driven
by churn reductions in Brazil and Peru. NII Holdings'
consolidated cost per gross add, or CPGA, was $342 for the
quarter - a 4% improvement over last year.

"Our profitable growth strategy continues to deliver solid value
for our stakeholders," said Lo van Gemert, NII Holdings'
President and COO. "Subscriber growth was strong during the
quarter, driven largely by our operations in Mexico. Nextel
Mexico added 54% more subscribers in the first quarter of this
year as compared to the preceding fourth quarter in 2004. In
addition to solid subscriber growth during the quarter, we
generated strong increases in revenues and operational cash flow
year-over-year, while improving our subscriber acquisition
cost."

As previously announced, during the quarter, the Company
successfully completed the bidding process in the 800 MHz
auction in Mexico. As a result, the Company acquired an
additional 15 MHz per basic service area, bringing NII Holdings'
average spectrum position to 20 MHz nationwide. The additional
licenses cover approximately 43 million potential subscribers,
bringing NII Holdings' total licensed coverage in Mexico to
about 97 million subscribers.

"The conclusion of the 800 MHz auction in Mexico has been
overwhelmingly positive for NII Holdings, resulting in
significantly more spectrum at a small fraction of the cost than
we originally anticipated," said Shindler. "For a price tag of
less than $4 million in upfront cost, NII will now have an
average spectrum position of 20MHz nationwide in Mexico,
providing the raw material to increase our covered footprint by
50%, raising our GDP coverage in Mexico to over 81%, and
positioning the Company to achieve the benefits of scale in our
largest and most profitable market."

Subsequent to the quarter and as part of NII's previously
announced expansion plan in Mexico, in April the Company
announced that it launched digital service in the Mexican city
of Saltillo -- one of the most important cities in the northern
region of the country - covering the city as well as the
highways linking San Luis Potosi -- Saltillo -- Monterrey with
the Nextel Mexico digital network. Saltillo has over 3,200
corporations, including local and multinational firms, has a
very strong affinity with Monterrey's industries and is part of
the production chain for many of the companies in Monterrey.

"This is an important milestone in our expansion plan in
Mexico," said Peter Foyo, Nextel Mexico's President. "Saltillo
is an industrial-rich city, with not only strong business
affinity with Monterrey, but also strong business ties with the
United States. This launch not only adds another important city
to the Nextel Mexico network, but also opens up additional
opportunities in our existing markets in Northern Mexico."

Anatel, the Brazilian communications regulator, had on its
meeting agenda for April 27, 2005, proposed modifications to
regulations that the Company believes were adopted in a form
that would provide Nextel Brazil with an equal footing with
other mobile carriers with regard to interconnect expenses.
Anatel has not, however, published the official notice or the
language of the amendment. "Assuming this amendment was adopted,
this is a great win for the Company that will further improve
our financial performance and create additional growth and
investment opportunities within the Brazilian market," Shindler
said. "However we need to await the final official statements
from the government."

Consolidated capital expenditures, including capitalized
interest, were $73 million during the first quarter of 2005.

The Company ended the quarter with approximately $605 million in
long-term debt, which includes $480 million in convertible
notes, $116 million in local currency tower financing
obligations and $9 million in capital lease obligations. With
quarter-end consolidated cash, cash equivalents and short- term
investments of $335 million, the Company's net debt at the end
of the quarter was $270 million, resulting in a net debt to 2005
operating income before depreciation and amortization guidance
of about 0.6 times.

In addition to the preliminary results prepared in accordance
with accounting principles generally accepted in the United
States (GAAP) provided throughout this press release, NII has
presented consolidated operating income before depreciation and
amortization, ARPU, CPGA and net debt to OIBDA, which are non-
GAAP financial measures and should be considered in addition to,
but not as substitutes for, the information prepared in
accordance with GAAP.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connect(R), a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

To view financial statements:
http://bankrupt.com/misc/NII.htm

CONTACT: Investor Relations
         Mr. Tim Perrott
         Phone: (703) 390-5113
         E-mail: tim.perrott@nii.com

         Media Relations
         Ms. Claudia E. Restrepo
         Phone: (786) 251-7020
         E-mail: claudia.restrepo@nii.com
         Web site: http://www.nii.com/


SABESP: Board Approves Payment of Dividends
-------------------------------------------
SABESP (NYSE: SBS and Bovespa: SBSP3) the largest water and
sewage utility company in the Americas and the third in the
world (in number of clients) hereby inform the Shareholders
that, in a meeting held on April 28, 2005, the Board of
Directors of Companhia de Saneamento Basico do Estado de Sao
Paulo - SABESP pursuant to paragraph 2 of Article 30 of its
Bylaws, after hearing the Fiscal Council, deliberated to approve
the Full Executive Board's proposal for the declaration of
payment of dividends in the form of Interest on Own Capital,
referring to the first quarter of 2005 to the shareholders on
the reference date of May 9, 2005.

The Dividends as Interest on Own Capital, totaling
R$38,200,000.00 corresponding to R$ 1.34131202 per thousand
common shares will be paid no later than 60 days after the 2006
Annual Shareholders' Meeting.

Withholding Income Tax will be deducted from the amount of
payment of dividends as Interest on Own Capital, pursuant to
current legislation, except for exempt shareholders who prove
this condition prior to September 30, 2005, by submitting
related documents to the Company at Rua Costa Carvalho, 300 -
Sao Paulo - SP, CEP: 05429-900, in attention to the
Superintendencia de Captacao de Recursos e Relacoes com
Investidores, FI, sala 265.

Said Interest on Own Capital will be declared and computed in
the calculation of the mandatory minimum dividends, as provided
in Article 30 - item II, letter "b" of the Company's Bylaws and
in Paragraph 7 of the Article 9 of the Law 9249/95.

The shares now are traded ex-interest from May 10, 2005.

CONTACT:  SABESP
          Investor Relations:
          Mario Sampaio
          Tel: +55-11-3388-8664
          E-mail: maasampaio@sabesp.com.br

          Marisa Guimaraes
          Tel: +55-11-3388-9135
          E-mail: marisag@sabesp.com.br


TCP: Ebitda Rises 10.2% in 1Q05 From Previous Quarter
-----------------------------------------------------
Telesp Celular Participacoes S.A. (TCP) announced its
consolidated results the first quarter of 2005 (1Q05).

R$ million                1Q05            4Q04          1Q04

Net Operating Revenue  1,684.1         1,953.2       1,718.6
Total Operating Costs (1,009.1)       (1,340.9)     (1,019.8)
EBITDA                   675.0           612.3         698.8
EBITDA Margin (%)         40.1%           31.3%         40.7%
Net Result               (97.9)         (234.6)        (35.3)

Number of customers
(thousand)           17,949          17,631        14,295
Market share
(source: Anatel)         49.8%           51.4%         56.8%
Net Additions
(thousand)              319           1,268           997


HIGHLIGHTS:

- First 3G cellular operator in Latin America. A key tool for
the company's innovation strategy, which was possible due to the
CDMA2000 1xEV-DO technology.

- Absolute leadership in innovation and variety of services
launched on the market. Successful in the differentiation
strategy as regards its competitors as a result of the provision
of innovating services".

- TCP's customer base has risen 25.6% over 1Q04, recording
17,949 thousand customers.

- In relation to 1Q04, the post-paid customers base increased by
5.8%, showing the successful campaigns for obtaining customers
in this market segment.

- SAC recorded a 8.5% reduction, as compared to 4Q04, despite
the strong competition and marketing campaigns turned to
different market segments.

- Monthly churn at 1.5% in 1Q05, with 0.3 p.p. reduction in
relation to 4Q04, showing the successful customer retention
campaigns, despite the strong competition.

- The R$ 675.0 million EBITDA represents a 10.2% increase in
relation to 4Q04. EBITDA Margin of 40.1% in 1Q05, in spite of
being operating in one of the most competitive markets in the
world, with high growth potential.

- TCP's accrued losses decreased by 58.3% as compared to the
4Q04, totaling R$ 97.9 million.

- Sustained growth of data revenues, which increased by 25.0%
over last year, accounting for 5.7% of the net services revenue
in 1Q05.

- The qualified base for data services has already reached 84%
in 1Q05.

- Productivity increase in 1Q05 was 21.4% in relation to 1Q04,
showing the growing improvement in operating efficiency.

About Telesp Celular

Telesp Celular Participacoes (controller of Tele Centro Oeste
Participacoes S.A.) (Bovespa: TSPP3 (ON = Common Shares) / TSPP4
(PN = Preferred Shares); NYSE: TCP), along with Tele Leste
Celular Participacoes S.A., Tele Sudeste Celular Participacoes
S.A. and Celular CRT Participacoes S.A., make up the assets of
the joint venture undertaken by Portugal Telecom and Telefonica
Moviles that operates under the VIVO brand, Top of Mind on the
Brazilian market. In April 2005 VIVO Group reached 27 million
customers, thus consolidating its market leadership.

To view financial statements:
http://bankrupt.com/misc/Telesp.pdf

CONTACT: VIVO Investor Relations
         Phone: +011-55-11-5105-1172
         E-mail: ir@vivo.com.br
         Web site: http://www.vivo.com.br


TELEMAR: Declares Interest On Capital - 2005 FISCAL YEAR
--------------------------------------------------------
Telemar Norte Leste S.A. approved Thursday the declaration of
Interest on Capital ("IOC") in the amount of R$299.8 million to
be distributed along with the mandatory dividends to be declared
for 2005. The Company's proposal was presented and voted on at  
he 2005 General Shareholders' Meeting on April 30, 2006.

Following are the details:

Brazilian Record Date: April 29, 2005
Brazilian Ex-Date: May 02, 2005
Gross Dividend Rates:

- common share:             R$1.19
- preferred shares Class A: R$ 1.31
- preferred shares Class B: R$ 1.19

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
         E-mail: invest@telemar.com.br
         Web site: http://www.telemar.com.br



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

* COLOMBIA: IMF Executive Board OKs $613M Stand-By Arrangement
--------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved Friday an 18-month, SDR 405 million (about US$613
million) Stand-By Arrangement to support Colombia's economic
program through November 2006. An amount equivalent to SDR 193.5
(about US$292.2 million) will be made immediately available,
with the remaining balance distributed in five equal
installments of SDR 42.3 million (about US$64 million ).
However, the authorities intend to treat the arrangement as
precautionary, and therefore do not intend to draw on the credit
available.

The Board has also completed the fourth and final review under
an SDR 1.55 billion (about US$2.34 billion) Stand-By Arrangement
that was approved on January 15, 2003 (see Press Release No.
03/04), and which will end effective May 2, 2005 at the
authorities' request. In completing the review, the Board
approved Colombia's request for waivers of the non-observance of
two performance criteria. No drawings were made under the
expiring arrangement either.

Following the Executive Board's discussion of Colombia, Anne O.
Krueger, First Managing Director and Acting Chair, made the
following statement:

"Colombia's economic performance continued to improve during
2004, reflecting strong policy implementation as well as the
favorable external environment. Economic activity showed solid
growth, unemployment and poverty fell, and inflation declined to
the lowest level in decades. The external sector strengthened,
aided by broad-based export growth as well as sizable net
capital inflows. The combined public sector deficit fell sharply
in 2004, supported by unexpectedly high world oil prices as well
as a large surplus of the autonomous local and regional
governments. This helped reduce the public debt further.

"For 2005-06, economic policies seek to sustain this strong
performance. The successor 18-month Fund arrangement will allow
for a gradual exit from Fund financial support. Fiscal policy
continues to aim at reducing the public debt. In line with this
objective, the government is targeting a decline in the combined
public sector deficits in 2005 and 2006, based on prudent
assumptions about the world oil price and the overall balance of
the local and regional governments. The authorities also intend
to save most of any oil price windfall. Monetary policy will
target a gradual decline in inflation in 2005-06, in the context
of a managed float exchange rate policy.

"Structural reforms continue to advance. The authorities intend
to press for congressional approval by June 2005 of the revised
budget code, the constitutional amendment for pension reform,
and the new securities market law. The authorities are
continuing to strengthen the financial system. In particular,
one state-owned bank was restructured in March 2005, and another
one will be brought to the point of sale by end-2005. The
government intends to continue building political support for
key medium-term reforms, such as strengthening tax policy and
improving the system of revenue sharing. These policies will
help lay the foundation for continued growth with stable prices
over the medium term", Ms. Krueger said.

Program Summary

Colombia performed very well under the program approved in
January 2003. The authorities' sound policy implementation
continued to reduce vulnerabilities and foster economic growth.
Real GDP increased steadily in 2003-04, helping reduce
unemployment. Inflation declined to the lowest level in decades
and the external sector strengthened, with a low current account
deficit and strong capital inflows in 2004. Fiscal
consolidation, together with the real appreciation of the peso,
lowered gross public debt from about 60 percent of GDP at end-
2002 to about 53 percent by end- 2004, together with a sizable
increase in public deposits. Likewise, the financial sector
continued to perform well.

The new program seeks to support the authorities' macroeconomic
framework-especially with regard to fiscal policy and public
debt reduction-during the upcoming transition to a new
government to take office in August 2006. By maintaining sound
economic policies in the coming 18 months, the country will
strengthen its credibility further and continue to reduce
economic vulnerabilities, which are crucial to achieve sustained
economic growth.

The program envisages real GDP to rise by 4 percent a year in
2005-6, while inflation would decline to 5 percent in 2005 and
to 3-5 percent in 2006. Net international reserves are projected
to stay at around US$12.2 billion by end-2005.

Fiscal policy in 2005-06 will stay on the path to reduce public
debt to close to 40 percent of GDP by 2010. The fiscal targets
assume that spending by local and regional governments will
return to normal levels following a sharp and unexpected decline
in 2004. The combined public sector deficit would amount to 2.5
percent of GDP in 2005 and decline to 2.0 percent in 2006. As a
result, public debt would decline to about 50 percent of GDP by
end- 2006. These targets will be reduced by a significant share
of any price windfall, lowering public debt further.

The government intends to continue to advance key structural
fiscal reforms, which include a constitutional amendment to the
pension regime, a new securities law, and a reform of the budget
code. The government will bring the state-owned bank Granahorrar
to the point of sale, and will also try to privatize some small
electricity firms with an estimated book value of 0.8 percent of
GDP.

Colombia is an original member of the IMF; its quota is SDR 774
million (about US$1.17 billion); and it has no outstanding use
of IMF credit.



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

AIR JAMAICA: Board Agrees to Dissolve Holding Company
-----------------------------------------------------
The board of Air Jamaica has decided to wind-up Air Jamaica
Holdings, the entity that primarily employs the embattled
airline's staff, the Jamaica Observer reports.

The action has caused apprehension among unions who see the move
as a precursor to pre-emptive action by the airline to make its
entire staff redundant and rehire them on new terms.

According to Labor Minister Horace Dalley, who confirmed the
board's decision, the future structure of the Company -
including the likely implications of the dissolution of Air
Jamaica Holdings if that were to happen - would be discussed
between the Air Jamaica management, the pilots association and
their affiliate union, the Bustamante Industrial Trade Union
(BITU) at a meeting scheduled for this week.

Air Jamaica is struggling to deal with a million-dollar debt,
part of it owed to the Jamaica government. As part of its
restructuring plan, the airline is reducing its fleet from 20 to
15 aircraft and recently announced that over the next month it
will cut 40 of its 220 pilots. In January, it made redundant
about 100 flight attendants.

CONTACT: AIR JAMAICA
         Corporate Communications
         Tel: 876-922-3460 ext 4060-5
         URL: www.airjamaica.com


AIR JAMAICA/BWIA/LIAT: Caribbean Needs Strong Airline  
-----------------------------------------------------
Officials from Trinidad and Tobago stressed the need for a
strong and viable regional carrier during the 7th Annual
Caribbean Conference on Sustainable Tourism Development.

In a report from Hardbeatnews.com, Chief Secretary of the Tobago
House of Assembly Orville London said in the assembly that  the
Caribbean governments must work together to strengthen the local
aviation industry in the face of continuing financial woes at
BWIA, Air Jamaica and LIAT.

He adds that any delay in seeking solutions to the airlines'
problems eventually means lost income and opportunities for the
Caribbean nations.

Tourism minister Howard Chin Lee also commented on the state of
the Caribbean's airlines. He stated that the success of the
local tourism industry relies heavily on a healthy regional
carrier whose top priority will be the region.


DYOLL GROUP: NCB Makes $536M Impairment Provision
-------------------------------------------------
The unaudited six-month (to March 31, 2005) financials of the
National Commercial Bank (NCB) revealed that the group has made
a $536 million impairment provision for its investment in the
Dyoll Group, the Jamaica Gleaner reports.

The largest shareholder in Dyoll, NCB holds over 27 million
shares or approximately 46% of the Company. The impairment
provision, which amounts to roughly $19.11 per share, has caused
a fluctuation in NCB's operating profit.

Compared to the corresponding quarter last year there was a 53%
decline in the operating profit, which fell by $375 million, to
$858 million. Viewed against its six months, there was a flat
movement in NCB's operating profit, which increased by a
negligible four million dollars.

The Jamaica Gleaner recalls that NCB paid $561 million, or
$19.99 per share, last year for its investment in Dyoll.
However, that investment was seriously compromised when Dyoll's
capital base was eroded as a result of the plethora of claims
submitted to the company in the aftermath of Hurricane Ivan and
its inability to honour those claims. With rumors swirling about
the financial health of the Company and of its difficulty in
getting capital injection, the Jamaica Stock Exchange (JSE)
suspended trading in Dyoll's shares at $14.50.



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

AHMSA: Presents New Debt Proposal to Creditors
----------------------------------------------
Steel maker Altos Hornos de Mexico SA (AHMSA) and holders of the
US$1.87 billion in debt it defaulted on in 1999 met in New York
Thursday, their first major meeting in several years, according
to Dow Jones Newswires.

During the meeting, the Monclova-based company, acting through
the Vector brokerage that it hired last year to negotiate its
debt, presented a proposal to pay the debt over seven years in
pesos, converting the original amounts at the exchange rate in
effect at the time of its default.

The peso, which closed Friday at MXN11.0910 to the dollar, was
around MXN9.30 to the dollar when AHMSA suspended debt payments
nearly six years ago.

AHMSA said it would replace existing debt with seven-year notes
and then buy back at least US$400 million worth of restructured
debt via an auction, accepting the most attractive bids.

The new notes would pay 3% interest to holders of AHMSA debt,
1.5% to holders of debt in AHMSA parent Grupo Acerero del Norte,
or GAN, with AHMSA shares as collateral, and zero interest to
other GAN creditors.

The Company expects the creditors to present a counter proposal
soon.

AHMSA registered a net profit of MXN1.74 billion ($1=MXN11.1450)
in the first quarter of 2005 on sales of MXN5.81 billion.

CONTACT: AHMSA
         International Operations
         Prolongacion Juarez s/n
         Monclova, Coah., 25770
         Phone: + 52 (866) 649 34 00
         Fax: + 52 (866) 649 23 10
         E-mail: sales@ahmsa.com
         Web site: http://www.ahmsa.com.mx


AOL LATIN AMERICA: Receives $14.1M for AOL Mexico Sale
------------------------------------------------------
On April 25, 2005, America Online Latin America, Inc. ("AOLA"),
and its wholly-owned subsidiary Latin America Quotaholder, LLC
("Quotaholder"), entered into an Equity Purchase Agreement (the
"Agreement") with Comunicaciones Nextel de Mexico, S.A. de C.V.
("Comunicaciones Nextel"), and Servicios NII, S.A. de C.V.
(collectively with Comunicaciones Nextel, "Buyer").

Under the Agreement, AOLA and Quotaholder sold to Buyer all of
the equity interests in AOL Mexico, S. de R.L. de C.V., a
Mexican company ("AOL Mexico") with limited assets as described
below. Buyer paid AOLA and Quotaholder Mxp$155,818,350.00, or
approximately $14.1 million, in consideration for the sale. AOL
Mexico's substantial cumulative net operating losses will be
available to Buyer.

The business of AOL Mexico was transferred to a newly-formed,
wholly -owned subsidiary of AOLA and Quotaholder, AOL, S. de
R.L. de C.V. ("New AOL Mexico") on February 1, 2005 so that the
only remaining assets at the time of the sale were aged accounts
receivable, customer information and certain call center assets.

The net proceeds of the transaction will not be available for
AOLA's general use. Instead, the net proceeds will be set-aside
in a separate account to be used to fund the ordinary course
operating expenses and the sale or liquidation of New AOL
Mexico. Any funds remaining after the sale or liquidation of New
AOL Mexico will be remitted to Time Warner Inc. ("TW") in
accordance with the terms of the Letter of Consent ("TW
Consent") dated as of April 25, 2005 by and between AOLA and TW.

About AOL Latin America

America Online Latin America, Inc., is a leading interactive
service provider in Latin America, deriving the bulk of its
revenues principally from member subscriptions in Brazil,
Mexico, Argentina and Puerto Rico.

AOLA also generates additional revenues from advertising and
other revenue sources, including programming services provided
to America Online for Latino content area and revenue sharing
agreements with certain local telecommunications providers. At
Sept. 30, 2004, AOLA's balance sheet shows $39.9 million in
assets and a $147.4 million shareholder deficit.

CONTACT: America Online Latin America, Inc.
         6600 N. Andrews Ave.
         Suite 500
         Fort Lauderdale, FL 33309
         USA
         Phone: 954-229-2100


CYDSA: Cuts Net Losses in 1Q05
------------------------------
Industrial group Cydsa (Grupo Celulosa y Derivados S.A) slashed
net losses in the 1Q05 to MXN57 million (US$5.2mn) from MXN411
million in the 1Q04, reports Business News Americas.

In a filing to the Mexico City bourse BMV, the Company, which
produces textiles, industrial packaging, chemicals,
petrochemicals and plastics, said it increased sales 1.7% to
MXN1.66 billion.

However, gross profits fell 6.2% to MXN274 million against
profits in the 1Q04 due to higher costs of raw materials and
energy.

Ebitda stood at MXN91 million, slightly down from MXN93.9
million in the same quarter last year.  

During the 1Q05, Cydsa was able to prepay US$7.2 million in debt
to banks, representing 6.5% of its total bank debt, and US$14
million to bondholders, representing nearly 55% of the bonds in
circulation.

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


GRUPO MEXICO: To Pay MXN0.75/Share in Dividends This Month
----------------------------------------------------------
Grupo Mexico, the world's third-largest copper producer,
announced Friday it will make a dividend payment of MXN0.75 a
share this month, reports Dow Jones Newswires.

The dividend applies to Grupo Mexico B shares prior to a three-
for-one split that shareholders approved at an annual meeting
held Thursday.

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.

Meanwhile, the Company announced shareholders decided to set
aside up to MXN4 billion for future dividends and authorized
share buybacks for up to US$200 million 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


MAXCOM TELECOMUNICACIONES: Revenues Up 26% in 1Q05
--------------------------------------------------
    * Revenues increased 26% over 1Q04 and 3% over 4Q04
    * EBITDA grew 38% over 1Q04 and 5% over 4Q04
    * Lines in service increased 28% over 1Q04 and 7% over 4Q04
    * Voice customers grew 27% over 1Q04 and 7% over 4Q04
    * Data customers grew 16% over 1Q04 and 11% over 4Q04

    LINES:

The number of lines in service at the end of 1Q05 increased 28%
to 177,007 lines, from 138,829 lines at the end of 1Q04, and 7%
when compared to 164,895 lines in service at the end of 4Q04.

During 1Q05, 21,444 new voice lines were installed, more than
twice the 9,789 lines installed during 1Q04. When compared to
4Q04, the number of installations increased 9% from 19,752
lines.

During 1Q05, the monthly churn rate for voice lines was 1.9%,
lower than the 2.2% monthly average churn during 1Q04. When
compared to 4Q04, churn rate remained at 1.9%. Voluntary churn
in 1Q05 resulted in the disconnection of 2,446 lines, a rate of
0.5%, similar to the rate registered in 4Q04 with 2,787
disconnected lines. Involuntary churn resulted in the
disconnection of 6,626 lines, a rate of 1.4%, which is in line
with 6,028 disconnected lines in 4Q04.

                                                       vs.   vs.
     LINES                    1Q04     4Q04     1Q05  1Q04  4Q04

Business Lines             24,700   28,249   30,617   24%    8%
Residential Lines         107,159  125,934  135,132   26%    7%
Public Telephony Lines        --       492    1,298  N/A   164%
Total Voice Lines         131,859  154,675  167,047   27%    8%
Wholesale                   6,970   10,220    9,960   43%   -3%
Lines in Service (1)      138,829  164,895  177,007   28%    7%

Data Equivalent Lines (2)  14,557   17,837   19,233   32%    8%

(1) Does not include Data Equivalent Lines
(2) Data Conversion @ 64Kbps

    CUSTOMERS:

Total customers grew 27% to 129,535 at the end of 1Q05, from
102,332 at the end of 1Q04, and 7% when compared to 120,562
customers at the end of 4Q04.

The change in the number of customers by category was the
following: (i) business customers increased by 7% from 1Q04 and
3% from 4Q04; and (ii) residential customers increased by 27%
from 1Q04 and 8% from 4Q04.

                                                     vs.   vs.
CUSTOMERS                  1Q04     4Q04     1Q05  1Q04  4Q04

Business                   3,753    3,925    4,034    7%    3%
Residential               98,579  116,637  125,501   27%    8%
Total Voice Customers    102,332  120,562  129,535   27%    7%

Data Customers             5,869    6,154    6,816   16%   11%

    REVENUES:

Revenues for 1Q05 increased 26% to Ps$246.3 million, from
Ps$195.9 million reported in 1Q04. Voice revenues for 1Q05
increased 21% to Ps$199.9 million, from Ps$165.6 million during
1Q04, driven by a 27% increase in voice lines while ARPU
remained at the same level. Data revenues for 1Q05 were Ps$11.2
million and contributed with 5% of total revenues. Data revenues
in 1Q04 were Ps$11.0 million. Wholesale revenues for 1Q05 were
Ps$35.1 million, an 82% increase from Ps$19.3 million in 1Q04.

Revenues for 1Q05 increased 3% to Ps$246.3 million, from
Ps$238.2 million in 4Q04. Voice revenues for 1Q05 increased 4%
to Ps$199.9 million, from Ps$192.0 million during 4Q04. Data
revenues in 1Q05 increased 9% to Ps$11.2 million, from Ps$10.3
million during 4Q04. During 1Q05, revenues from Wholesale
customers decreased 2% to Ps$35.1 million, from Ps$35.9 million
in 4Q04.

COST OF NETWORK OPERATION:

Cost of Network Operation in 1Q05 was Ps$83.6 million, an 18%
increase when compared to Ps$71.1 million in 1Q04. Over the same
period, outbound traffic grew 33%, showing an improvement on a
cost per minute basis. The Ps$12.5 million increase in Cost of
Network Operation was generated by: (i) Ps$7.2 million, or 15%,
increase in network operating services, mainly driven by Ps$3.3
million higher calling party pays interconnection charges;
Ps$2.8 million higher cost of circuits; and, Ps$1.4 million
higher long distance interconnection, which were partially
offset by Ps$0.2 million lower AsistelMax, lease of ports and
other services cost; (ii) Ps$2.6 million higher technical
expenses, basically as a result of Ps$1.5 million higher lease
of equipment expenses, Ps$0.8 higher maintenance expenses; and,
Ps$0.3 higher leases of sites and poles; and, (iii) Ps$2.6
million, or 100%, increase in installation expenses and cost of
disconnected lines.

Cost of Network Operation increased 6% quarter-over-quarter when
compared to Ps$78.8 million in 4Q04. The Ps$4.8 million increase
in Cost of Network Operation was generated by: (i) Ps$2.8
million, or 5% increase in Network operating services, mainly
driven by Ps$1.8 million higher long distance reselling cost,
Ps$1.2 million higher leases of circuits and ports, Ps$0.4
million lower calling party pays charges; and, Ps$0.2 lower
AsistelMax and other services cost; (ii) Ps$0.7 million increase
in Technical expenses; and (iii) Ps$1.4 million increase of
installation expenses and cost of disconnected lines. On a
traffic-related cost basis, the cost per minute deteriorated as
outbound traffic decreased 11%.

Gross margin at 66% in 1Q05 showed an improvement from 64%
reported in 1Q04 and a small decrease from the 67% reported in
4Q04.

SG&A:

SG&A expenses were Ps$104.7 million in 1Q05, a 26% increase from
Ps$82.9 million in 1Q04. The increase was mainly driven by: (i)
higher salaries, wages and benefits of Ps$13.4 million; (ii)
higher sales commissions of Ps$6.2 million; (iii) higher
consulting fees of Ps$1.7 million; and (iv) higher general and
insurance expenses of Ps$2.6 million. Higher expenses were
partially offset by: (i) lower bad debt reserve of Ps$1.5
million; and (ii) lower leases and maintenance expenses of
Ps$0.5 million.

SG&A expenses in 1Q05 slightly increased to Ps$104.7 million
from Ps$104.4 million in 4Q04. Increases of Ps$2.6 million in
salaries, wages and benefits and Ps$2.6 million in sales
commissions were offset by Ps$4.1 million lower bad debt reserve
and Ps$2.3 million lower advertising expenses.

EBITDA:

EBITDA for 1Q05 increased 38% to Ps$58.0 million, from Ps$41.9
million reported in 1Q04. When compared to 4Q04, EBITDA grew 5%
from Ps$55.0 million.

EBITDA margin of 24% improved from 21% of 1Q04, and from 23% in
4Q04.

CAPITAL EXPENDITURES:

Capital expenditures for 1Q05 were Ps$84.1 million, two and a
half times the Ps$24.0 million reported in 1Q04, and a 58%
decrease when compared to Ps$141.6 million in 4Q04.

CASH POSITION:

Maxcom's cash position at the end of 1Q05 was Ps$37.4 million in
Cash and Cash Equivalents, including Ps$5.6 million of
restricted cash in connection with a banking financing obtained
in 4Q04, compared to Ps$53.0 million at the end of 1Q04. Cash
and Cash Equivalents at the end of 4Q04 were Ps$66.3 million,
including Ps$5.6 million of restricted cash.

NEW REPORTING FORMAT:

Beginning this quarter, we are improving our quarterly reports
to provide a more executive summary on the results and
performance of the Company. We are also modifying this report to
more closely align with information released by peers and
competitors, in the telecom industry.

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile
connectivity to micro, small and medium- sized businesses and
residential customers in the Mexican territory. Maxcom launched
commercial operations in May 1999 and is currently offering
Local, Long Distance and Internet & Data services in greater
metropolitan Mexico City, Puebla and Queretaro. The information
contained in this press release is the exclusive responsibility
of Maxcom Telecomunicaciones, S.A. de C.V. and has not been
reviewed by the National Banking and Securities Commission of
Mexico (CNBV). The registration of the securities described in
this press release before the Special Section of the National
Registry of Securities (Registro Nacional de Valores) held by
the CNBV does not imply a certification of the investment
quality of the securities or of Maxcom's solvency. The
securities described in this press release have not been
registered before the Securities Section of the National
Registry of Securities held by the CNBV and therefore cannot be
publicly offered or traded in Mexico. The trading of these
securities by a Mexican investor will be made under such
investor's own responsibility.

To see financial statements:
http://bankrupt.com/misc/MAXCOM_TELECOMUNICACIONES.htm

CONTACT: MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
         Jose-Antonio Solbes
         Tel: +52-55-5147-1125
         E-mail: investor.relations@maxcom.com

         Lucia Domville
         Tel: +1-917-375-1984
         E-mail: ldomville@nyc.rr.com


PEMEX: Government Could Pass New Tax Bill by June
-------------------------------------------------
A new tax measure allowing state-owned oil company Pemex
significant tax savings could pass into law as early as June
after senate approved Wednesday, 6 to 8, a modified version of
the scheme submitted by congress last year.

The bill, currently under review at lower house, promises annual
savings of US$2.25 billion for the Company that had lost almost
US$7.15 billion since 2001 under the present tax program. Pemex
contributes around one-third of Mexico's total fiscal income.

Business News Americas reports that Pemex needs the savings
realized form the tax cuts to fund exploration and production
investments budgeted at US$10 billion yearly. The Company also
needs more cash to replace aged pipelines that has resulted in a
series of accidents in recent months.   

  
TV AZTECA: Charges Brewing for Company Chairman
-----------------------------------------------
The dispute between TV Azteca and the Finance Ministry escalated
Thursday when the latter asked prosecutors to bring criminal
charges against the broadcaster's chairman Ricardo Salinas
Pliego for unlawful use of privileged information.

Citing unidentified sources, Bloomberg reports that Finance
Minister Francisco Gil Diaz's fiscal prosecutor filed the 1,200-
page request to charge Salinas Pliego, who controls TV Azteca,
with the attorney general's office April 27.

The proposed criminal charges go beyond a civil suit brought by
the U.S. Securities and Exchange Commission Jan. 4 that accused
Salinas Pliego and his company of securities fraud for hiding a
transaction that netted him US$109 million.

The SEC suggested in January that Salinas Pliego made a US$109-
million profit in 2003 after buying debt that TV Azteca phone
unit Unefon SA owed to Nortel Networks Corp. for a discounted
price, and then receiving repayment from Unefon at full value
three months later. The SEC alleged Mexico City-based TV Azteca,
whose shares trade in both Mexico and the U.S., failed to tell
shareholders about the transaction. The SEC requires companies
to disclose so-called related-party transactions because they
may involve conflicts of interest.

Gil Diaz's request came after TV Azteca filed a criminal lawsuit
against him with the attorney general's office in Mexico City on
April 26, accusing him of using threats to stop Azteca from
airing a program last week that criticized his decision to bail
out banks such as Grupo Financiero Banamex SA, now owned by
Citigroup Inc., after the devaluation of the peso in 1994.

Gil Diaz, in a statement April 27, rejected the accusations and
said TV Azteca's tactics were "absolutely improper."

CONTACT:  TV Azteca, S.A. de C.V.
          Investors, Bruno Rangel
          Tel: +5255-3099-9167
          E-mail: jrangelk@tvazteca.com.mx

          Media, Tristan Canales
          Tel: +5255-1720-5786
          E-mail: tcanales@tvazteca.com.mx

          Daniel McCosh
          Tel: +5255-1720-0059
          E-mail: dmccosh@tvazteca.com.mx
          URL: http://www.irtvazteca.com/


TV AZTECA: Approves $80M Cash Distribution
------------------------------------------
TV Azteca, S.A. de C.V., one of the two largest producers of
Spanish- language television programming in the world, announced
that its Annual Meeting of Shareholders held today at its
corporate offices in Mexico City approved distributions to
shareholders for an aggregate amount of US$80 million to be paid
during 2005. Of the total sum, US$78 million is planned to come
from capital reductions and Ps.24 million (approximately US$2
million) from the company's preferred annual dividends. A
payment of US$59 million is scheduled to be made on June 9 and
another of approximately US$21 million on December 1.

The distributions are part of TV Azteca's six-year plan for uses
of cash, which entails making disbursements to shareholders
above US$500 million and reducing the company's debt by
approximately US$250 million within a six-year period that
started in 2003.

The cash distributions made to date, when added to the upcoming
disbursement of US$80 million, represent an aggregate amount of
US$405 million, equivalent to a 27% yield on the April 28, 2005,
ADR closing price. Prior distributions include: US$125 million
on June 30, 2003, US$15 million on December 5, 2003, US$33
million on May 13, 2004, US$22 million on November 11, 2004, and
US$130 million on December 14, 2004.

Company Profile

TV Azteca  (NYSE: TZA) (BMV: TVAZTCA) operates two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca affiliates include Azteca America Network, a new
broadcast television network focused on the rapidly growing US
Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT: Investor Relations
         Mr. Bruno Rangel
         Phone: +011-52-55-3099-9167
         E-mail: jrangelk@tvazteca.com.mx

         Media Relations
         Mr. Daniel McCosh
         Phone: +011-52-55-3099-0059
         E-mail: dmccosh@tvazteca.com.mx
         Web site: http://www.tvazteca.com.mx


VITRO: Ratings Reflect High Financial Leverage - S&P
----------------------------------------------------

ISSUER CREDIT RATINGS               To               From  

Vitro S.A. de C.V.
  Corporate Credit Rating        B/Stable/        B+/Negative/

Vitro Envases Norteamerica, S.A. de C.V.
  Corporate Credit Rating        B/Stable/        B+/Negative/

REVISED RATINGS                     To               From  

Vitro S.A. de C.V.
  Sr unsecd debt
  (Foreign currency)                CCC+              B-

Vitro Envases Norteamerica, S.A. de C.V.
  Sr secd debt
  (Foreign currency)                 B                B+

Major Rating Factors

Strengths:

- Leading position in flat glass, glass containers, and
glassware
business in Mexico
- Export activities and international operations (particularly
in the U.S.)

Weaknesses:

- High financial leverage
- Weak free operating cash flow generation
- Challenging operating environment faced by Vitro's operating
units across the board

Rationale

The ratings on Vitro S.A. de C.V. (Vitro) reflect the company's
high financial leverage, its weak free operating cash flow
generation, and the challenging operating environment faced by
its operating units across the board. The ratings also reflect
the company's leading position in flat glass, glass containers,
and glassware business in Mexico and its export activities and
international operations (particularly in the U.S.), which
contribute about 50% of total revenues.

Monterrey, Mexico-based Vitro, through its subsidiary companies,
is Mexico's leading glass producer. Vitro is a major participant
in three principal businesses: flat glass, glass containers, and
glassware. Vitro also produces raw materials and equipment and
capital goods for industrial use.

Vitro's high leverage is reflected in its key financial
indicators. For the 12 months ended Dec. 31, 2004, Vitro posted
EBITDA interest coverage, total debt/EBITDA, and FFO/total debt
ratios of 1.8x, 4.4x, and 9.7%, respectively, which compare
unfavorably to the 2.0x, 4.2x, and 13% posted in 2003.
Furthermore, the company's free operating cash flow generation
is considered weak, as evidenced by a FOCF/sales ratio of 2% and
FOCF/total debt ratio of 3% posted in 2004. The operating
environment for Vitro's operations is challenging across the
board, and it reflects increased competition in the domestic
market and the continued strength in natural gas prices. In
2005, the spotlight will be on the glass containers business, as
it is expected to drive the company's revenue and EBITDA
generation. It appears that prospects for the unit are favorable
due to the acceptance of price increases by key customers.
Nevertheless, the company's performance has been disappointing
in recent years and 2005 could see another decline in the
issuer's EBITDA margin.

Liquidity

The company's prefinancing cash flow generation is weak (less
than $50 million is expected in 2005) and compares unfavorably
to debt maturities (ex-trade facilities) that totaled $216
million as of Dec. 31, 2004. Nevertheless, Standard & Poor's
believes that Vitro's liquidity is sufficient to meet its 2005
maturities. As of Dec. 31, 2004, the issuer held about $234
million in unrestricted cash, which should be sufficient to meet
holding company obligations of about $100 million that are due
in 2005. Vitro's financing plan for 2005 will focus on the
refinancing of debt maturities that total $115 million during
the year, particularly $80 million due at its flat glass
subsidiary (Vitro Plan S.A. de C.V.) The company has
demonstrated good access to the capital markets, as evidenced by
the recent issue of $80 million notes through Vena.

Outlook

The stable outlook reflects Standard & Poor's opinion that
Vitro's liquidity is adequate to meet its debt maturities due in
2005. The ratings could be lowered if the company's key
financial indicators fail to improve during the year, as it is
expected that excess cash balances will be directed toward debt
reduction as maturities come due. In particular, Standard &
Poor's expects Vitro's EBITDA interest coverage and its total
debt/EBITDA ratio to move toward 2.0x and 4.0x during the year.
A positive rating action would demand a substantial improvement
in Vitro's operating and financial performance relative to
Standard & Poor's expectations.

Business Profile

Following the sale of a number of noncore assets over the last
six years, the company redefined its core business to focus on
glass. Vitro's core business units (flat glass, glass
containers, and glassware) somewhat diversify the company's
exposure to one particular industry. An increasingly competitive
environment resulting from increased competition and the
relative strength of the Mexican peso since 1998 have hurt the
profitability of Vitro's operations. In response, the company
has restructured its portfolio to concentrate its efforts on the
aforementioned core business units and to reduce expenses in
order to improve its cash flow generation. Nevertheless, the
company continues to face important challenges across its major
business lines: In flat glass, the increased presence of foreign
participants in the Mexican market, as evidenced by the start-up
of the new Guardian facility in Mexico; in the glass containers
business, the continued growth of alternative products,
particularly PET; and in glassware, continued competition from
low-priced imports in Mexico and the U.S. In order to counter
the aforementioned trends, the company has launched a number of
initiatives across its business lines that seek to strengthen
its flat glass distribution network in Mexico, to develop new
products and services for its glass containers customers, and to
maintain its leadership position in the glassware business in
North America. Despite the aforementioned efforts and the
company's initiatives to reduce energy costs, the competitive
pressures faced by Vitro do not seem to have subsided, and this
is reflected in the continued deterioration of the company's
operating margin over the past couple of years. Nevertheless,
the company's operating margin remains comparable to that of its
global peers and attractive relative to other building materials
producers.

Financial Policy: Very aggressive

Vitro's aggressive financial policy is reflected in its high
leverage and tight liquidity. We expect the company to continue
with its efforts in switching debt from the holding company to
the operating level.

Financial Profile

The negative trend in the company's operating margins coupled
with its high debt leverage have led to the steady deterioration
of Vitro's key financial ratios over the past five years. The
company's key financial measures also reflect Vitro's weak cash
flow generation, which has prevented a significant reduction in
the company's debt burden despite the continued progress of the
group asset sales program. Nevertheless, the company's asset
sales program has had a positive contribution to the group's
liquidity and is consistent with management's efforts to focus
on its core business lines.

In the absence of free operating cash flow to fund significant
debt reduction, over the last couple of years Vitro's efforts
have been directed toward changes in the capital structure to
better match the group's assets and liabilities. As a result,
the company has structured a number of transactions at its
operating companies, the most recent being the issue of debt by
Vitro Envases Norteramerica. The aforementioned refinancing
initiatives, coupled with healthy cash balances, provide comfort
regarding the company's ability to meet short-term debt
maturities. Nevertheless, the weakness in the company's free
operation cash flow generation weighs heavily on Vitro's rating,
as the company depends on its refinancing efforts to meet
significant debt maturities.

Accounting

Vitro prepares its financial statements in accordance with
Mexican GAAP. The company's financial statements as of December
31, 2004, received a clean opinion. In our analysis we use
supplemental ratios that consider the company's factoring
agreements as debt. In 2004, the aforementioned agreements
totaled $105 million. We believe that the payments of $7 million
per year related to a guarantee provided by Vitro to the Pension
Benefit Guaranty Corp. regarding Anchor Glass Container Corp.'s
pension plan are manageable for Vitro. To date no payments have
been made and the company has stated that certain defenses may
be asserted by the company. The company's pension liability
reflects the benefits from the recent changes to Vitro's retiree
benefits, which has moved to a lump sum payment upon retirement,
from a lifetime pension. The notes to the financial statements
also reveal that over half of the pension plan assets are in the
form of shares of Vitro.

CONTACT:  Primary Credit Analyst:
          Jose Coballasi, Mexico City
          Tel (52)55-5081-4414
          E-mail: jose_coballasi@standardandpoors.com  



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

* PERU: Signs New $613 Million Debt Deal With IMF  
-------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved Friday an 18-month, SDR 405 million (about US$613
million) Stand-By Arrangement to support Colombia's economic
program through November 2006. An amount equivalent to SDR 193.5
(about US$292.2 million) will be made immediately available,
with the remaining balance distributed in five equal
installments of SDR 42.3 million (about US$64 million). However,
the authorities intend to treat the arrangement as
precautionary, and therefore do not intend to draw on the credit
available.

The Board has also completed the fourth and final review under
an SDR 1.55 billion (about US$2.34 billion) Stand-By Arrangement
that was approved on January 15, 2003, and which will end
effective May 2, 2005 at the authorities' request. In completing
the review, the Board approved Colombia's request for waivers of
the non-observance of two performance criteria. No drawings were
made under the expiring arrangement either.

Following the Executive Board's discussion of Colombia, Anne O.
Krueger, First Managing Director and Acting Chair, made the
following statement:

"Colombia's economic performance continued to improve during
2004, reflecting strong policy implementation as well as the
favorable external environment. Economic activity showed solid
growth, unemployment and poverty fell, and inflation declined to
the lowest level in decades. The external sector strengthened,
aided by broad-based export growth as well as sizable net
capital inflows. The combined public sector deficit fell sharply
in 2004, supported by unexpectedly high world oil prices as well
as a large surplus of the autonomous local and regional
governments. This helped reduce the public debt further.

"For 2005-06, economic policies seek to sustain this strong
performance. The successor 18-month Fund arrangement will allow
for a gradual exit from Fund financial support. Fiscal policy
continues to aim at reducing the public debt. In line with this
objective, the government is targeting a decline in the combined
public sector deficits in 2005 and 2006, based on prudent
assumptions about the world oil price and the overall balance of
the local and regional governments. The authorities also intend
to save most of any oil price windfall. Monetary policy will
target a gradual decline in inflation in 2005-06, in the context
of a managed float exchange rate policy.

"Structural reforms continue to advance. The authorities intend
to press for congressional approval by June 2005 of the revised
budget code, the constitutional amendment for pension reform,
and the new securities market law. The authorities are
continuing to strengthen the financial system. In particular,
one state-owned bank was restructured in March 2005, and another
one will be brought to the point of sale by end-2005. The
government intends to continue building political support for
key medium-term reforms, such as strengthening tax policy and
improving the system of revenue sharing. These policies will
help lay the foundation for continued growth with stable prices
over the medium term", Ms. Krueger said.

Program Summary

Colombia performed very well under the program approved in
January 2003. The authorities' sound policy implementation
continued to reduce vulnerabilities and foster economic growth.
Real GDP increased steadily in 2003-04, helping reduce
unemployment. Inflation declined to the lowest level in decades
and the external sector strengthened, with a low current account
deficit and strong capital inflows in 2004. Fiscal
consolidation, together with the real appreciation of the peso,
lowered gross public debt from about 60 percent of GDP at end-
2002 to about 53 percent by end- 2004, together with a sizable
increase in public deposits. Likewise, the financial sector
continued to perform well.

The new program seeks to support the authorities' macroeconomic
framework-especially with regard to fiscal policy and public
debt reduction-during the upcoming transition to a new
government to take office in August 2006. By maintaining sound
economic policies in the coming 18 months, the country will
strengthen its credibility further and continue to reduce
economic vulnerabilities, which are crucial to achieve sustained
economic growth.

The program envisages real GDP to rise by 4 percent a year in
2005-6, while inflation would decline to 5 percent in 2005 and
to 3-5 percent in 2006. Net international reserves are projected
to stay at around US$12.2 billion by end-2005.

Fiscal policy in 2005-06 will stay on the path to reduce public
debt to close to 40 percent of GDP by 2010. The fiscal targets
assume that spending by local and regional governments will
return to normal levels following a sharp and unexpected decline
in 2004. The combined public sector deficit would amount to 2.5
percent of GDP in 2005 and decline to 2.0 percent in 2006. As a
result, public debt would decline to about 50 percent of GDP by
end- 2006. These targets will be reduced by a significant share
of any price windfall, lowering public debt further.

The government intends to continue to advance key structural
fiscal reforms, which include a constitutional amendment to the
pension regime, a new securities law, and a reform of the budget
code. The government will bring the state-owned bank Granahorrar
to the point of sale, and will also try to privatize some small
electricity firms with an estimated book value of 0.8 percent of
GDP.

Colombia is an original member of the IMF; its quota is SDR 774
million (about US$1.17 billion); and it has no outstanding use
of IMF credit.

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

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

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

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



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

R&G FINANCIAL: Wechsler Harwood LLP Files Class Action Suit
-----------------------------------------------------------
Wechsler Harwood LLP announced Friday that it has filed a
Federal Securities fraud class action suit on behalf of all
purchasers of the common stock of R&G Financial Corp. ("R&G
Financial" or the "Company") (NYSE:RGF) between April 21, 2003
and April 26, 2005, both dates inclusive (the "Class Period").

The action, entitled Reikes v. R&G Financial Corp., Case No. 05
CV 4265, is pending in the United States District Court for the
Southern District of New York, and names as defendants, the
Company, Chairman, Chief Executive Officer, and director, Victor
J. Galan, its Vice Chairman and President, Ramon Prats, and its
Executive Vice President, and Chief Financial Officer, Joseph
Sandoval. A copy of the Complaint can be obtained from the Court
or can be viewed on Wechsler Harwood web site at: www.whesq.com

The Complaint charges defendants with violations of Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder. Specifically, the Complaint
alleges that defendants issued a series of materially false and
misleading statements contained in press releases and filings
with the Securities and Exchange Commission during the Class
Period, including: (1) that R&G Financial's earnings quality had
been significantly weakened by the Company's use of overly
aggressive assumptions to generate gain on sale income, as well
as to boost the value it retained in its interest only ("IO")
residuals in securitization transactions; (2) that R&G
Financial's methodology used to calculate the fair value of its
IO residual interests retained in securitization transactions
was incorrect and caused the Company to overstate its financial
results by at least $50 million; (3) that the Company's
financial statements were not prepared in accordance with
Generally Accepted Accounting Principles ("GAAP"); (4) that the
Company lacked adequate internal controls and was therefore
unable to ascertain the true financial condition of the Company;
and (5) that as a result, the value of the Company's net income
and financial results were materially overstated during the
Class Period.

On March 25, 2005, after the market closed, R&G Financial
announced that it would restate its financial results for fiscal
years 2003 and 2004. News of this shocked the market. Shares of
R&G Financial, on April 26, 2005, fell $8.14 per share, or 35.12
percent, to close at $15.04 on unusually heaving trading volume.
After the market closed on April 26, 2005, R&G Financial issued
a press release announcing that it was also now subject to an
informal SEC probe relating to its restatement announcement.

If you are a member of the class described above, you may, not
later than June 27, 2005 move the Court to serve as lead
plaintiff of the class, if you so choose. A lead plaintiff is a
representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Under
certain circumstances, one or more class members may together
serve as "lead plaintiff." Your ability to share in any recovery
is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Wechsler Harwood, or
other counsel of your choice, to serve as your counsel in this
action.

If you wish to discuss this action with us, or have any
questions concerning this notice or your rights and interests
with regard to the case, please contact the following:

  Wechsler Harwood LLP
  488 Madison Avenue, 8th Floor
  New York, New York 10022
  Toll Free Telephone: (877) 935-7400

  Wechsler Harwood LLP
  Shareholder Relations Department:
  Craig Lowther
  clowther@whesq.com



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Executive Confirms Continued Flights to Suriname
------------------------------------------------------
BWIA will continue its flight operations to Suriname, Carlton
DeFour, BWIA's area manager for South America, said, refuting
rumors in the Surinamese media that the Company intends to
terminate its flights to Paramaribo, Suriname.

"There are no plans for suspension of the flights to Suriname",
the official said in an interview with Caribbean Net News.

Since the start in April 2003 the Suriname flights was the
fastest growing route for the airline.

"The growth was phenomenal, and for that reason since it is one
of the most lucrative ones we have no intension to terminate
that," DeFour added.

With regards to the issue of BWIA joining forces with Surinamese
national carrier Surinam Airways to take over BWIA's flights
from Port of Spain to Curacao, DeFour said that there is no
agreement on this issue between the two airlines.

The possibility for cooperation has not yet been discussed
between the two parties, he said, and there are no indications
that such will happen in the near future.

To see important facts about BWIA:
http://bankrupt.com/misc/BWIA.pdf

CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA)
         Phone: + 868 627 2942
         E-mail: mail@bwee.com
         Home Page: http://www.bwee.com



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

PDVSA: Govt. Wants Cooperation Among State-Owned Oil Companies  
--------------------------------------------------------------
"State presence in the production of hydrocarbons has been, and
will continue to be, of capital importance to the development of
this industry, to world energy security and, beyond that, to
raise the value of these resources and their use as levers for
the sustained development and quality of life of our peoples",
according to PDVSA vice-president Alejandro Granado, at the
Third State Oil Companies' Forum, held this week at the
Brazilian capital, and which brings together industry leaders
from all over the world.

"The joint action of governments and state-owned oil companies
is an effective lever in bringing about integration processes
based con complementarity. Private sector efforts are no doubt
important, but the decisive plans are determined by governments,
by their collective will and political commitment at the highest
level," Granado explained at the Forum, an event which has the
objective of exchanging experiences and initiatives on the main
aspects of the hydrocarbons industry, while exploring new
cooperation possibilities.

The Venezuelan government is developing a policy aimed at
promoting complementarity and cooperation among state oil
companies, as well as among them and private capital, as a means
of making the best use of opportunities and being able to take
on the increasing challenges posed by the markets, now and in
the future. With the firm political commitment of our
governments, our state oil companies, such as PDVSA, Enarsa,
Ancap and Cupet, among others, are setting trends in the
development of joint projects, within a framework of mutual
respect, solidarity and cooperation. These are achievements in
the long-desired project for regional integration", he
emphasized.

Granado also said: "It is important to reclaim the States'
ownership rights over their natural resources and obtain a just
remuneration from the market for the use of these nonrenewable
assets".

" Venezuela offers a continuous investment flow in the oil-
industry upstream, with which we ensure everyone a secure supply
under just and stable economic conditions. We are also firmly
convinced that we should combine our efforts in the downstream,
for which our companies as a whole have the required
technological knowledge."

On closing, vice-president Granado said: "Sustainable
development, peace and the quality of life for our people to
which we aspire can only be based on mutual respect for the
rights of each party, and the will of everyone to use them in
such a way that it promotes joint coexistence and prosperity. It
is our conviction that state oil companies play, and will
continue to play, a decisive role in the achievement of this
objective."

PDVSA, one of the world's largest energy corporations, is owned
by the Republic of Venezuela and is responsible for developing
the country's petroleum and petrochemical resources. PDVSA's
largest market is the United States, where most of its products
are sold by its wholly-owned subsidiary CITGO Petroleum Corp.

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

                            ***********

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

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subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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