TCRLA_Public/050505.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, May 5, 2005, Vol. 6, Issue 88

                            Headlines


A R G E N T I N A

ACINDAR: Higher Sales Help Boost 1Q05 Net Profit
AGUAS PROVINCIALES: French Parent Withdraws From Concession
ANTU APLICACIONES: Proceeds With Liquidation
APSA S.R.L.: Court Designates Trustee for Liquidation
ASERNAT S.A.: Closes Reorganization Process

BUENOS AIRES COMMERCIAL: Court Orders Liquidation
COMPANIA BELGA: Debt Payments Halted, Set To Reorganize
CUIDAR SALUD: Judge Approves Bankruptcy
EDEERSA: Concession Cancelled Due to "Grave Noncompliance"
EL PULKI: Court Converts Reorganization to Bankruptcy

ENGIMATIC S.A.: Seeks to Reorganize After Missed Debts Payments
ENTOOLS S.A.: Seeks Reorganization Approval From Court
ESPACIO EMPRESARIAL: Claims Validation Deadline Approaches
GULF CUER: Court Rules Liquidation Required
LA PANADERIA S.A.: Liquidates Assets to Pay Debts

METROGAS: Extends Time For APE Subscription
OXIA JEANS: Bankruptcy Initiated on Court Orders
ORGANIZACION J.G.: Court Grants Reorganization Plea
PEBIAL S.A.: Court Declares Company Bankrupt
SOUTHERN WINDS: Court Approves Concurso Motion


B E R M U D A

FOSTER WHEELER: Unit Secures Preem Petroleum Study Contract
GLOBAL CROSSING: Completes Trader Voice Business Sale
INTELSAT: Delays 1Q05 Financials Filing to May 13


B R A Z I L

BANCO BMG: S&P Assigns 'BB-/B' Counterparty Credit Ratings
BANCO BRADESCO: Pays Monthly Interest on Equity
BANCO SCHAHIN: Ratings Reflect Intrinsic Small Bank Risks
COPEL: Power Market at Concession Area Grows 2.4% in 1Q05
EMBRATEL: All Unsubscribed Shares Acquired at Auction

GERDAU: Net Profit Reaches BRL810.5M in 1Q05
GERDAU: Plans Cash Dividend Payment
NET SERVICOS: Net Revenues Grow 24.2% YoY in 1Q04
USIMINAS: Completes Cosipa Integration
VOTORANTIM PARTICIPACOES: S&P Assigns Ratings, FC Withdrawn


C H I L E

ENAMI: Legalizes Transfer of Ventanas to Codelco


C O L O M B I A

* COLOMBIA: Fitch Rates $335M FRN Issue 'BB'


J A M A I C A

AIR JAMAICA: Union Talks Collapse Over Layoffs


M E X I C O

GRUPO IUSACELL: Creditor Accelerates Loan Payment Schedule
GRUPO IUSACELL: To Seek Shareholders OK to Delist ADS From NYSE
TV AZTECA: Delisting Plans Cause Cut U.S. Share Prices


U R U G U A Y

NBC: Governent to Sell to Private Investor by Year-end


V E N E Z U E L A

PDVSA: Possible Insider Trading Center of CITGO Probe
PDVSA: Union Riled Over Payroll Cuts


     - - - - - - - - - -

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

ACINDAR: Higher Sales Help Boost 1Q05 Net Profit
------------------------------------------------
Steel maker Acindar Industria Argentina de Aceros (Acindar)
reported net profit of ARS152.5 million ($52.6 million) in the
1Q05, higher than the ARS130.9 million net profit in the 1Q04,
reports Reuters. The Company, which provides building materials
to the farm and construction sectors, attributed the 16.5%
increase in profit to higher net sales during the period.

In a statement to the Buenos Aires Stock Exchange, Acindar
revealed net sales in the 1Q05 shot up 36% to ARS571 million.
Domestic sales grew to ARS458 million from ARS359 million in
1Q04. But by volume, domestic sales fell 11.3%.

At the same time, the volume of exports rose 10.8% while revenue
from such sales nearly doubled.

The Company, which is controlled by Brazilian mining-metals
company Belgo-Mineira, recently announced it is taking measures
to prepare for a possible gas supply shortage at its operations.

Acindar suffered from gas supply problems for most of 2004 due
to low investment level caused by government-imposed price
freezes.

CONTACT: Acindar Industria Argentina de Aceros S.A.
         2739 Estanislao Zeballos Beccar
         Buenos Aires
         Argentina B1643AGY
         Phone: +54 11 4719 8500
         Fax: +54 11 4719 8501
         Web site: http://www.acindar.ar.com


AGUAS PROVINCIALES: French Parent Withdraws From Concession
-----------------------------------------------------------
French utility Suez (SZE) has decided to terminate its water
concession in Argentina's Santa Fe province, reports Dow Jones
Newswires. In a brief press statement, Suez, which operates
Aguas Provinciales de Santa Fe, said its board of directors will
seek "dealings with the province of Santa Fe that, within the
framework of the termination of the contractual relationship,
permit an orderly exit in the short term."

Suez's withdrawal didn't come as a surprise to Santa Fe
officials. Speculations of a Suez pullout emerged after
negotiations over rate hikes failed to bear fruit and the
company had set a deadline Friday for the government to answer a
final request for a 60% increase. The administration, which
rejected the proposal, had already drafted a law last week
creating a provincial water company that could take over the
service in the case of a Suez departure.

At the national level, negotiations over Aguas Argentinas'
contract have also been difficult, and Suez had signaled in the
past that it could leave its Buenos Aires concession as well.
But according to Dow Jones Newswires, talks continue and Suez
has said it would be open to a mixed company where the
government controls a partial stake in the utility.


ANTU APLICACIONES: Proceeds With Liquidation
--------------------------------------------
Moineaus SAIC successfully sought a bankruptcy declaration for
Antu aplicaciones Industriales Integrales S.A. from the Court
No. 10 of uenos Aires' civil and commercial tribunal, reports La
Nacion.

As such, the Company will now start the process with Mr. Oscar
Paez as trustee. Creditors must submit proofs of their claim to
the trustee by June 21 for authentication. Failure to comply
with this requirement 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$4,208.38. The city's
Clerk No. 19 assists the court on the case that will close with
the sale of all of its assets.

CONTACT: Antu Aplicaciones Industriales Integrales S.A.
         Malabia 1067
         Buenos Aires

         Mr. Oscar Paez, Trustee
         Juana Manso 1666
         Buenos Aires


APSA S.R.L.: Court Designates Trustee for Liquidation
-----------------------------------------------------
Mr. Cesar Stock, a public accountant in Buenos Aires, was
assigned trustee for the liquidation of local company Apsa
S.R.L., relates Infobae. Mr. Stock will verify creditors' claims
until June 6, the source adds. Afterwards, he will prepare the
individual reports, which are to be submitted in court on August
2. The submission of the general report should follow on
September 14.

The city's civil and commercial Court No. 10 holds jurisdiction
over the Company's case. Clerk No. 20 assists the court with the
wind-up proceedings.

CONTACT: Mr. Cesar Stock, Trustee
         Avda Corrientes 4149
         Buenos Aires


ASERNAT S.A.: Closes Reorganization Process
-------------------------------------------
The reorganization of Asernat S.A. has been concluded. Data
revealed by Infobae on its web site indicated that the process
was concluded after Court No. 5 of Buenos Aires' civil and
commercial tribunal homologated the debt agreement signed
between the Company and its creditors.


BUENOS AIRES COMMERCIAL: Court Orders Liquidation
-------------------------------------------------
Buenos Aires Commercial Group S.A. prepares to wind-up its
operations following the bankruptcy pronouncement issued by
Court No. 10 of the city's civil and commercial tribunal. The
declaration effectively prohibits the company from administering
its assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Mr. Fernando Luis Greco
as trustee. Mr. Greco will be reviewing creditors' proofs of
claims until June 20. The verified claims will serve as basis
for the individual reports to be presented for court approval on
August 15. The trustee will also submit a general report of the
case on September 26.

Clerk No. 19 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Mr. Fernando Luis Greco, Trustee
         Arenales 2365
         Buenos Aires


COMPANIA BELGA: Debt Payments Halted, Set To Reorganize
-------------------------------------------------------
Court No. 13 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of a petition to reorganize
submitted by Compania Belga de Aceros S.A.

La Nacion recalls that the company filed the petition following
cessation of debt payments on April 12 last year. Reorganization
will allow the Company to avoid bankruptcy by negotiating a
settlement with its creditors.

CONTACT: Compania Belga de Aceros S.A.
         O'Higgins 2178
         Buenos Aires


CUIDAR SALUD: Judge Approves Bankruptcy
---------------------------------------
Cuidar Salud S.A., a medical services company based in Buenos
Aires, was declared bankrupt after Court No. 4 of the city`s
civil and commercial tribunal endorsed the petition of Instituto
Medico de Alta Tecnologia S.A. for the company's liquidation.
Argentine daily La Nacion reports that the creditor has claims
totaling ARP15,000 against the Company.

The court assigned Mr. Oscar Chapiro to supervise the
liquidation process as trustee. Mr. Chapiro will validate
creditors' proofs of claims until June 10.

The city's Clerk No. 7 assists the court in resolving this case.

CONTACT: Cuidar Salud S.A.
         Paraguay 1896
         Buenos Aires

         Mr. Oscar Chapiro, Trustee
         Scalabrini Ortiz 151
         Buenos Aires


EDEERSA: Concession Cancelled Due to "Grave Noncompliance"
----------------------------------------------------------
The government of Entre Rios province terminated local power
distributor Edeersa's concession Monday, citing "grave
noncompliance" by the Company, which won rights to distribute
power in Entre Rios in 1996.

The government, instead, created a new province-owned company,
known as Energia de Entre Rios (Enersa), to distribute power.

In a statement, Entre Rios said Enersa will operate under the
terms of the contract signed with Edeersa until the energy
secretary drafts a new contract within 90 days.

The regional government provisionally took over Edeersa in
November 2003 after its previous owner, U.S.-based Public
Service Enterprise Group Inc.'s (PSEG), walked away from the
power distributor.

PSEG abandoned its 90% interest in Edeersa after failed attempts
to sell the Company, and transferred the shares to a trust fund
benefiting current Edeersa employees, including existing
shareholders.

However, the government rejected the transfer and took a 51%
stake in the Company, hoping to re-privatize it through a public
tender.

In July 2004, Entre Rios opened the bidding process for the 51%
stake. However, in March this year, Entre Rios declared the
tender void after no bids were received by the February 25
bidding deadline.

Seven companies and investment funds had bought bidding rules
but none submitted bids. Edeersa's US$102-million debt was cited
as one reason why companies may have chosen not to bid.

The no-show auction sparked speculation by some suitors that the
province set the stakes too high in a deliberate bid to keep
Edeersa for itself.


EL PULKI: Court Converts Reorganization to Bankruptcy
-----------------------------------------------------
El Pulki II S.R.L., which was undergoing reorganization, entered
bankruptcy on orders from Court No. 9 of Corrientes' civil and
commercial tribunal, according to Infobae.

Trustee Rosa del Carmen Diaz de Vigili, the court-assigned
trustee, will conduct the verification of creditors' claims "por
via incidental."

CONTACT: El Pulki II S.R.L.
         Brasil 756
         Corrientes

         Ms. Rosa del Carmen Diaz de Vigili, Trustee
         Salta 648
         Corrientes


ENGIMATIC S.A.: Seeks to Reorganize After Missed Debts Payments
---------------------------------------------------------------
Engimatic S.A., a data processing company operating in Buenos
Aires, requested authorization to reorganize after failing to
pay its liabilities since April 20 this year.

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. 17 of the city's civil and
commercial tribunal. Clerk No. 34 assists on this case.

CONTACT: Engimatic S.A.
         San Jose 920
         Buenos Aires


ENTOOLS S.A.: Seeks Reorganization Approval From Court
------------------------------------------------------
Court No. 17 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Entools S.A., says Infobae

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. 17 assists the court on this case.

CONTACT: Entools S.A.
         Montevideo 536
         Buenos Aires


ESPACIO EMPRESARIAL: Claims Validation Deadline Approaches
----------------------------------------------------------
The verification of claims for the Espacio Empresarial SRL
bankruptcy case will end on June 8 according to Infobae.
Creditors with claims against the bankrupt company must present
proof of the liabilities to Mr. Fernando Ezequiel Aquilino, the
court-appointed trustee, before the deadline.

Court No. 1 handles the company's case with the assistance of
Clerk No. 2. The bankruptcy will conclude with the liquidation
of the company's assets to pay its creditors.

CONTACT: Mr. Fernando Ezequiel Aquilino, Trustee
         Lavalle 1459
         Buenos Aires


GULF CUER: Court Rules Liquidation Required
-------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Gulf Cuer S.R.L. after the company
defaulted on its debt obligations, Infobae reveals.

The liquidation pronouncement will effectively place the
company's affairs as well as its assets under the control of Mr.
Jose Maria Colace, the court-appointed trustee.

Mr. Colace will verify creditors' proofs of claims until June
14. The verified claims will serve as basis for the individual
reports to be submitted in court on August 10. The submission of
the general report follows on September 22.

Clerk No. 20 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to pay the company's creditors.

CONTACT: Mr. Jose Maria Colace, Trustee
         Avda Cordoba 652
         Buenos Aires


LA PANADERIA S.A.: Liquidates Assets to Pay Debts
-------------------------------------------------
Buenos Aires-based La Panaderia S.A. will begin liquidating its
assets following the pronouncement of the city's Court No. 26
ordering the Company's liquidation.

The ruling places the company under the supervision of court-
appointed trustee Jose Miguel Fernandez. The trustee will verify
creditors' proofs of claims until June 30. The validated claims
will be presented in court as individual reports on August 26.

Mr. Fernandez will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on October 7.

The bankruptcy process will end with the disposal company assets
in favor of its creditors.

CONTACT: La Panaderia S.A.
         Sarandi 248
         Buenos Aires

         Mr. Jose Miguel Fernandez, Trustee
         Junin 55
         Buenos Aires


METROGAS: Extends Time For APE Subscription
-------------------------------------------
Metrogas S.A. has until May 18 to secure creditor approval for
an extra-judicial settlement known as `Acuerdo Preventivo
Extrajudicial' (APE) that would establish new repayment terms
for its defaulted bonds.

The Argentine natural gas distributor had previously extended
the deadline for its consent solicitation after failing to
achieve the approval of major creditors representing an
estimated 85 percent of its total defaulted debt.

As of Monday, the Company has secured consent for a total of
US$86.2 million from its existing debt, about US$1 million more
than March's figures.

The APE proposal, adopted in November 2003, offers a 50 percent
return of for every 1 dollar of the debt. The same ratio applies
for debts denominated in Argentine peso or the Euro.

Creditors can also choose an option where capitalized interest
is added to the principal and paid over a period of nine years.
Under this scheme, the modified debt will pay 3% interest for
the first two years, 4% for the following two years, 5% for the
next two years and 6% for the remaining period.

GBR Information Services handles Metrogas' international debt
transactions while JP Morgan Chase Bank serves as the local
agent in Argentina.

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

CONTACT: MetroGAS S.A.
         Gregorio Araoz de Lamadrid 1360
         C 1267 AAB Buenos Aires, Argentina
         Phone: 5411-4309-1000


OXIA JEANS: Bankruptcy Initiated on Court Orders
------------------------------------------------
Oxia Jeans S.A. enters bankruptcy protection after Court No. 9
of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 17, ordered the company's liquidation.
The order effectively transfers control of the company's assets
to a court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Mr. Miguel Angel Troisi
as trustee. Mr. Troisi will verify creditors' proofs of claims
until the end of the verification phase on July 8.

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 August 29 followed by the general report that is due on
October 21.

CONTACT: Mr. Miguel Angel Troisi, Trustee
         Cerrito 146
         Buenos Aires


ORGANIZACION J.G.: Court Grants Reorganization Plea
---------------------------------------------------
Organizacion JG S.A., a company operating in Buenos Aires,
begins reorganization proceedings after Court No. 22 of the
city's civil and commercial tribunal, with assistance from Clerk
No. 44, 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 Roberto Jose Gaztelu,
the court-appointed trustee.

Creditors with claims against the Company must present proofs of
the company's indebtedness to the trustee by July 1. These
claims will constitute the individual reports to be submitted in
court on August 29. The court also requires the trustee to
present an audit of the company's accounting and business
records through a general report due on October 10.

An informative assembly for the company's creditors is scheduled
on March 27 next year.

CONTACT: Mr. Roberto Jose Gaztelu, Trustee
         Virrey del Pino 2719
         Buenos Aires


PEBIAL S.A.: Court Declares Company Bankrupt
--------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared local construction company Pebial S.A. "Quiebra",
relates La Nacion. The order comes in approval of the bankruptcy
motion filed by Banco Patagonia S.A., whom the Company has debts
amounting to US$11,015.17.

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

The city's Clerk No. 19 assists the court on the case.

CONTACT: Pebial S.A.
         Hipolito Yrigoyen 3788
         Buenos Aires

         Mr. Jorge Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires


SOUTHERN WINDS: Court Approves Concurso Motion
----------------------------------------------
Court No. 15 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Southern Winds
SA, according to a report from Argentine daily La Nacion.

Accounting firm Estudio Aguilar, Pinedo, Rascado Fernandez will
verify claims from the Company's creditors until September 6.
After the verification period, the trustee will submit the
individual and general reports in court. Dates for submission of
these reports are yet to be disclosed.

The informative assembly will be held on May 29, 2006. Creditors
will vote to ratify the completed settlement plan during the
said assembly.

The Company reported assets totaling US$109,743,220 and debts of
US$184,915,296 in its court filing.

The city's Clerk No. 30 assists the court on the case.

CONTACT: Southern Winds S.A.
         Suipacha 1111
         Buenos Aires

         Estudio Aguilar, Pinedo, Rascado Fernandez
         Trustee
         Hipolito Yrigoyen 900
         Buenos Aires



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

FOSTER WHEELER: Unit Secures Preem Petroleum Study Contract
-----------------------------------------------------------
Foster Wheeler Ltd. announced Wednesday that its UK subsidiary
Foster Wheeler Energy Limited has been awarded a study contract
by Preem Petroleum AB of Sweden for fuel oil upgrading at its
Gothenburg and Lysekil refineries. The terms of the award were
not disclosed. The project will be included in the company's
first-quarter bookings for 2005.

"Foster Wheeler is delighted to be awarded this contract by
Preem," said Steve Davies, chairman and chief executive officer
of Foster Wheeler Energy Limited. "We are assisting Preem in
developing an investment `road map' for upgrading fuel oil to
higher value products, such as gasoline, diesel or power.
Working in an integrated team with Preem, we will bring our in-
depth expertise in residue upgrading and refinery investment
planning, together with Preem's detailed understanding of their
own operations, to develop the optimal processing schemes to
meet our client's business objectives over the next 10-15
years."

The study will consider a wide range of options for fuel and
residue upgrading, and select the most economic schemes for
further evaluation in the next phase of the work. It will also
determine the feedstocks to be used and the unit capacities to
be considered for fuel oil upgrading facilities, which will be
added to the two existing refineries.

"Preem is pleased to be working with Foster Wheeler on this
important strategic study," commented Robert Onsander, senior
vice president of Preem Petroleum AB. "Foster Wheeler has
demonstrated its extensive knowledge in investment planning and
refining technologies to help Preem in meeting the company's
future business objectives. This award continues the successful
relationship that Preem has built up with Foster Wheeler over
many years of working together."

About Foster Wheeler

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

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


GLOBAL CROSSING: Completes Trader Voice Business Sale
-----------------------------------------------------
Global Crossing announced Tuesday that it has completed the sale
of its Trader Voice business to WestCom Corporation, after
receiving all necessary regulatory approvals. As previously
announced, Global Crossing will receive $25 million in gross
cash proceeds for the Trader Voice business, including a three-
year, $700,000 prepayment for certain services under a
separately signed wholesale services agreement. After the
payment of certain fees and the deduction of certain retained
liabilities, Global Crossing expects approximately $22 million
in net cash proceeds from the transaction.

"With this transaction finalized, we can focus all our energies
on Global Crossing's core business -- providing multinational
enterprise and carrier services with global IP products and
services," said John Legere, Global Crossing's chief executive
officer.

About Global Crossing

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

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

About Westcom

WestCom Corporation is an international telecommunications
company that provides specialty trader voice and data products
to the financial industry. Our global private network enables
members to turn up new trader voice lines within 24 hours to
participating financial institutions. WestCom's global Trader
Voice Exchange Network is the largest of its kind in the world,
reaching 20 countries and every major financial center. WestCom
offers a variety of solutions including trader voice ring down
service, multiple-point Hoot 'n Holler networks and point-to-
point data services. WestCom is focused exclusively on the
financial community, with expertise in supporting the critical
trading activities for many of the largest firms in the world.
Headquartered in New York City, WestCom with network operations
centers in New York and London, and business offices in Paris,
Frankfurt, Chicago, San Francisco, Houston and South Carolina.

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

         Ms. Tisha Kresler
         Phone: + 1 973-937-0146
         E-mail: PR@globalcrossing.com

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


INTELSAT: Delays 1Q05 Financials Filing to May 13
-------------------------------------------------
Intelsat, Ltd. is rescheduling its first quarter 2005 earnings
release and conference call to provide time for the Company to
complete purchase accounting in connection with the January 28,
2005 acquisition of Intelsat, Ltd. by Intelsat Holdings, Ltd.
Intelsat, Ltd. will issue its earnings release and hold a
conference call on May 13, 2005 at 11:00 a.m. ET to discuss its
first quarter 2005 financial results.

The live audio webcast and earnings press release will be
accessible through the Intelsat Investor Relations website:
www.intelsat.com/investors.

A telephone bridge has also been established to accommodate
Intelsat's global investor base. United States-based
participants should call (800) 510-9834. Non-U.S. participants
should call +1 (617) 614-3669. The participant pass code is
11614293. Participants will have access to a replay of the
conference call through May 27, 2005. The replay number for
U.S.-based participants is (888) 286-8010 and for non-U.S.
participants is +1 (617) 801-6888. The participant pass code is
14103524.

About Intelsat

Intelsat is a global communications provider offering flexible
and secure services to customers in over 220 countries and
territories. Intelsat has maintained a leadership position for
over 40 years by distributing video, voice, and data for
television and content providers, government and military
entities, major corporations, telecommunications carriers, and
Internet service providers. Intelsat's reach, power and
expanding solutions portfolio deliver information reliably and
quickly to every corner of the globe.

CONTACT: Intelsat, Ltd.
         E-mail: media.relations@intelsat.com
         Phone: +1 202-944-7500
         Web site: http://www.intelsat.com/



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

BANCO BMG: S&P Assigns 'BB-/B' Counterparty Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB-/B'
counterparty credit ratings in both local and foreign currency
to Banco BMG S.A. (Banco BMG). The outlook is stable.

"The ratings assigned to Banco BMG incorporate the intrinsic
risks to a small to midsize bank operating in a highly
competitive market, with significant product concentration,"
said Standard & Poor's credit analyst Daniel Araujo. The ratings
also incorporate the challenge to consolidate a stable and
diversified funding base to support its growth strategy. These
risks are partially offset by the bank's position as one of the
leaders in its niche market, good business execution and
controls benefiting from technological features and distribution
capabilities, consistent growth in its loan portfolio, and high
profitability, while maintaining good asset quality indicators.

Banco BMG holds a leading market share in the payroll discount
segment, and has been able to capture the strong growth of the
industry as a pioneer in this market. It has long developed the
technology and distribution capabilities to achieve a large
number of target clients and show continuous expansion on its
portfolio. The successful implementation and execution of its
niche strategy reflect a large and loyal distribution network
based on bank correspondents and agents that cover most of the
country, and an updated technological platform allowing for good
control of operations and agile decision making.

The main challenges in the medium term are to confront the
competitive pressures from new entrants in a market viewed as
very attractive by larger players, and the maintenance of more
stable and diversified funding to sustain its strategic plan.
Based on the opportunities currently available in the market and
the bank's expertise, we expect Banco BMG to continue benefiting
from the potential market expansion, although its high
participation tends to reduce gradually as other players fight
for market share. The increase in volumes should compensate the
gradual decline in bank spreads in the medium term.

The stable outlook reflects our expectations that Banco BMG will
benefit from the maintenance of its core competencies, with
further growth in its niche operations in payroll-discount
loans, maintaining asset quality and capitalization at levels
similar to 2004. The bank is also expected to maintain
efficiency indicators at levels better than the average in the
market, with the ratio of nonfinancial expenses to revenues
between 40% and 50%.

The ratings may be lowered or the outlook may be revised to
negative if there is a significant worsening in asset quality to
levels higher than 5% (loans from "E" to "H" according to local
regulations); if profitability (ROA) levels drop drastically to
less than 1.5% on an adjusted basis (excluding sales of loan
portfolio); if funding becomes problematic to support the bank's
operations; and if liquidity is significantly impaired.

The ratings are not constrained by the sovereign credit rating
on Brazil, meaning that an upgrade of the sovereign credit
rating would not prompt a rating or outlook change at Banco BMG.
If, on the other hand, the foreign currency sovereign credit
rating is lowered or its outlook revised to negative, the
foreign currency rating on Banco BMG would be changed in tandem.


BANCO BRADESCO: Pays Monthly Interest on Equity
-----------------------------------------------
The Board of Directors of Banco Bradesco S.A., in a meeting held
Monday, approved the proposal submitted by the Board of
Executive Officers to pay to the Company's stockholders,
pursuant to the Corporate By-laws and legal provisions, of
interest on own capital related to the month of May/2005, in the
amount of R$0.057000 per common stock and R$0.062700 per
preferred stock, benefiting the stockholders registered in the
Company's records on May 2, 2005.

The payment will be made on June 1st, 2005, at the net amount of
R$0.048450 per common stock and R$0.053295 per preferred stock,
after deduction of Withholding Income Tax of fifteen percent
(15%), except for the legal entity stockholders that are exempt
from such taxation, which will receive for the declared amount.

The respective Interests will be computed, net of Withholding
Income Tax, in the calculation of the mandatory dividends for
the year as provided in the Corporate By-Laws.

The Interests relating to the stocks under custody at CBLC-
Brazilian Company and Depository Corporation will be paid to
CBLC that will transfer to the stockholders through the
depository Brokers.

CONTACT: Banco Bradesco S.A.
         Predio Novo - 4 ANDAR
         Cidade de Deus
         S/N, Osasco
         Sao Paulo, 06029-900
         Brazil
         Phone: 55-11-3684-9229
         Web site: http://www.bradesco.com.br


BANCO SCHAHIN: Ratings Reflect Intrinsic Small Bank Risks
---------------------------------------------------------

CREDIT RATING: B/Stable/B

OUTSTANDING RATING: Counterparty Credit:  B/Stable/B

Rationale

The ratings assigned to Banco Schahin S.A. 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 comparatively worse quality than those of
its peers; the expectation that the bank will 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 improve gradually its credit
quality by means of diluting its credit risk, while improving
profitability by increasing its retail operations; and the
conservative approach of its Treasury activity.

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. Standard & Poor's Ratings Services does 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 has been demonstrated 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 of 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.

Problem loans have increased in recent years, mainly due to
specific losses with middle-market credits. The ratio of NPLs
(from 'E' to 'H' per Standard & Poor's criteria) to total loans
stood at 7.6% at Dec. 31, 2004 (adjusted for credit operations
that have guarantees under the program Fundo de Garantia para a
Promo‡ao da Competitividade of BNDES), compared to 7% at Dec.
31, 2003, and net written-off credits to total loans also
reached 4.2% in 2004, compared to 2.5% in 2003. The
deterioration in asset quality reduced provisioning coverage
(although this remains in line with Central Bank requirements),
thus comparing negatively with major peers.

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.

Schahin has built extensive relationships with representatives
and correspondent banking units (mainly through partnership with
documentation agents, driving schools, car dealers, and
repairs), to position itself more as a niche bank focused on
consumer finance and payroll discount lending mainly to public
employees. In addition, in December 2004, Schahin entered into a
partnership agreement with HSBC Bank Brasil, whereby Schahin
generates the bank loan portfolio of payroll discount loans to
pensioners and INSS beneficiaries, and HSBC provides funding and
books the loans. Different from other agreements in the market,
this is a profit-sharing agreement in which revenues and costs
are split between both institutions. The agreement estimates the
generation of minimum BrR3 billion loans in three years with
average monthly interest of 3%. The bank is required to maintain
this network of correspondents while retaining its clientele,
considered a key factor to support the bank's expansion and
generate recurrent results.

Liquidity at Schahin is viewed as manageable. Despite its
efforts to diversify its funding sources, Schahin is challenged
to maintain the stability and diversification of its funding.
Like other small and midsize Brazilian banks, Schahin's deposit
base was reduced after the Banco Santos intervention by the
Central Bank, which led institutional investors to withdraw
deposits from small and midsize banks. Schahin had its time
deposit base reduced by approximately 25%-which is in line with
the reduction in other small and midsize banks-generating
deterioration of its liquidity ratios: liquid assets-to-deposits
reached 17% in December 2004 compared to 52% in September 2004.
Yet, the bank's decision to focus on lower-risk lending (mainly
payroll discount lending) and the development of relationships
with other banks that are interested in acquiring ceded loans
have helped to improved the bank's liquidity and its lending
activities with no pressure for capital and deposits.

Schahin maintains a conservative approach on its Treasury
activities, the latest being responsible for matching the bank's
books, defining pricing to be used by the commercial area, and
managing the bank's liquidity. In addition, the bank's market
risk management is adequate to its profile.

Profitability has been low in past years as compared to its risk
profile. Although Schahin has shown profitability improvement in
terms of quality (with more diversified revenues coming from
lending), the rating remains constrained by the bank's success
in building a track record of strong and consistent returns more
in line with its above-average risk profile. The pressure
related to credit risk (given the need to constitute provisions)
and to maintain its operational structure to support growth had
pressured profitability. In the medium to long term, the bank's
small operation and growing competition should put pressure on
spreads and on the bank's profitability.

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.

Outlook

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-…-vis its current levels), or if the bank is unable
to gradually improve its profitability.

CONTACT:  Primary Credit Analyst
          Tamara Berenholc, Sao Paulo
          Tel: (55) 11-5501-8950
          E-mail: tamara_berenholc@standardandpoors.com

          Secondary Credit Analyst:
          Daniel Araujo, Sao Paulo
          Tel: (55) 11-5501-8939
          E-mail: daniel_araujo@standardandpoors.com


COPEL: Power Market at Concession Area Grows 2.4% in 1Q05
---------------------------------------------------------
Power consumption market in Companhia Paranaense de Energia's
(Copel) concession area grew by 2.4% between January and March
2005, Copel CFO Rubens Ghilardi revealed in a filing with the
Securities and Exchange Commission.

Residential, commercial and rural consumption grew by 3.4%, 5.7%
and 4.1%, respectively.

The consumption growth of the commercial segment in 1Q05
remained at 2004 levels. Such performance is a result of the
increased credit offer that led a pick up in the economy and
resulted in a greater number of new connections compared to the
last 5 years.

The good performance of the rural segment is mainly due to the
increase in the export of agricultural and agribusiness
products, that resulted in higher income for rural producers
and, consequently, purchase of electronic products.

Residential performance is a result of the 2.9% increase in the
number of consumers, as well as the increase in the average
consumption in the period (0.4% above the number recorded in the
same period of 2004).

Industrial consumption, excluding unregulated ("free")
consumers, was stable this quarter.

The drop at unregulated ("free") consumers is due to the ending
of the Distribution agreements with consumers outside the
concession area.

CONTACT: Copel
         Investor Relations team:
         E-mail: ri@copel.com
         Tel: (55-41) 222-2027


EMBRATEL: All Unsubscribed Shares Acquired at Auction
-----------------------------------------------------
Embratel Participacoes S.A., announced that the unsubscribed
common and preferred shares by the company's shareholders during
the preemptive rights exercise period were offered at an auction
held Tuesday at the Sao Paulo Stock Exchange (BOVESPA).

All shares were acquired. The ordinary shares offered, a total
of 186,223, were acquired at a price of R$4.31 and the preferred
shares offered, a total of 72,706,957, were acquired at a
minimum price of R$4.30.

As a result of exercising their preemptive rights and acquiring
shares in the auction today, Telefonos de Mexico S.A. de C.V.
("Telmex") controlling stake, held through Startel, New Startel,
Telmex Solutions and Consertel, increased to 95.14% of the
common shares, 45.40% of the preferred shares and 63.90% of the
total capital.

With the above-mentioned auction, the company's capital
increase, approved by the Board of Directors on February 3, 2005
and re-ratified in February 23, 2005, is concluded with the
entire subscription of the shares offered. After the
ratification by the Board of Directors of the capital increase,
the company's capital will be of R$4,096,713,387.00.

A registration statement on Form F-3 ("F-3") has been filed with
the U.S. Securities and Exchange Commission ("SEC") regarding
the shares, ADSs and the related subscription rights to be
offered in the United States of America and has been declared
effective. This press release does not constitute an offer to
sell or the solicitation of an offer to buy shares, ADSs or the
related subscription rights in the United States or to U.S.
persons (as such term is defined under Regulation S under the
U.S. Securities Act of 1933, as amended, nor shall there be any
sale of shares or subscription rights in any state in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the laws of any such state.

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is well positioned
to be the country's only true national local service provider
for corporate customers. Service offerings include: telephony,
advanced voice, high-speed data communication services,
Internet, satellite data communications, corporate networks and
local voice services for corporate clients. Embratel is uniquely
positioned to be the all-distance telecommunications network of
South America. The Company's network has countrywide coverage
with 32,466 km of fiber cables.

CONTACT: Ms. Silvia M.R. Pereira
         Investor Relations
         Phone: (55 21) 2121-9662
         Fax: (55 21) 2121-6388
         E-mail: silvia.pereira@embratel.com.br
                 invest@embratel.com.br


GERDAU: Net Profit Reaches BRL810.5M in 1Q05
--------------------------------------------
HIGHLIGHTS:

- Net Profit - Consolidated net profit for the first quarter
2005 reached R$ 810.5 million, 89.7% greater than that of the
same period in 2004, when it reached R$ 427.3 million. The
Brazilian based operations presented a net profit of R$ 554.8
million, 71.4% more than in the first quarter of 2004. In North
America, net profit reached R$ 209.2 million compared to R$ 62.6
million, and South America, except for Brazil, had a net profit
of R$ 46.5 million, 13.1% superior to that of January through
March of 2004. Consolidated net margin went from 10.2% to 13.9%.

- Gross Sales Revenue - Consolidated gross sales revenue reached
R$ 6.9 billion, presenting an increase of 39.3% over that of the
same period in 2004. A significant contribution to this increase
was the consolidation of the new North American units and the
increase in the average prices practiced in the international
markets. Business in Brazil is responsible for 50.2% of this
total (R$ 3.5 billion), units in North America for 44.6% (R$ 3.1
billion) and companies in Chile, Uruguay and Argentina for the
remaining 5.2% (R$ 360.9 million). Gross sales revenue from the
units abroad and exports from Brazil, as a whole, represented
62.5% of the consolidated gross sales revenue in the first
quarter 2005.

- Exports - To clients overseas, the Brazilian based companies
shipped 721.8 mil tons this quarter, a tonnage similar to that
of the first quarter of 2004. These shipments generated revenues
of US$ 279.2 million, 26.9% greater, a consequence of the
increases in international prices, when compared to those of the
first three months of 2004.

- EBITDA - EBITDA (earnings before financial expenses, taxes,
depreciation and amortization) in the first three months of the
year reached the mark of R$ 1.4 billion, an increase of 60.2%
compared to the same period in 2004. EBITDA margin was 24.3%
against 21.2% in the first quarter last year.

- Output - The output of slabs, blooms and billets for this
first quarter of 2005 reached 3.5 million tons, 8.8% more than
in the same period in 2004. The output of rolled products
reached 2.7 million tons, presenting an increase of 8.3% when
compared to the volume produced in the first quarter of the
previous year.

- Dividends - Shareholders will be credited dividends for the
first quarter of 2005 on May 24th, based on shares held on May
13th. Metalurgica Gerdau S.A. will pay R$ 89.1 million (R$ 0.72
per share) and Gerdau S.A. R$ 199.2 million (R$ 0.45 per share).
Taking into account the last four quarters, the dividend yield
(dividend per share/share price) is 11.5% per year at
Metalurgica Gerdau S.A. and 8.8% per year at Gerdau S.A.,
calculated on stock quotes of April 29th, 2005.

- Stock Dividend - On March 31st, the Boards of Metalurgica
Gerdau S.A. and Gerdau S.A. approved a stock dividend of 50% on
shares held on April 11th, date of the operation. With this
stock dividend, a result of capitalization of Investment and
Working Capital Reserves, the number of shares outstanding went
from 83.2 million to 124.8 million at Metalurgica Gerdau S.A.,
and from 296.7 million to 445.1 million at Gerdau S.A.

- Metalurgica Gerdau S.A. in the IBOVESPA - The preferred shares
of Metalurgica Gerdau S.A. are now part of the theoretical
portfolio base of the Ibovespa. It will be effective as of May
2nd. This index is the benchmark for large investors and fund
managers in managing their portfolios, and is composed of the 55
most liquid shares in the market. The index is assembled based
on a combination between volumes traded, number of trades
actually made and the negotiability index for the last twelve
months. With the inclusion of the preferred shares of
Metalurgica Gerdau S.A., both Gerdau listed companies are now
part of the index in which Gerdau S.A. is the 6th largest
participant (weight).

- New mill in Paulo - The new melt shop in Aracariguama, state
of Sao Paulo, is in its final phase and should start producing
crude steel in July. To get this part of the project into actual
production investments totaling US$ 114.0 million were required.
The total amount was used for civil construction, steel
structure, acquisition and installation of equipment. The
project includes a rolling mill that should cost an additional
US$ 60.0 million and is scheduled to begin operating in the
second quarter of 2006.

- Expansion and technological update at the Ouro Branco mill -
The technological updating and capacity increase of 1.5 million
metric tons at the Ouro Branco (MG) mill is moving forward. The
investment of US$ 1.1 billion will be used in a new a coking
oven, new sinterizing plant, a HPS (Hybrid Pelletized Sinter)
for the existing sinterizing unit, a new blast furnace, a bloom
continuous caster, a Dephosphorization System, the expansion of
the existing thermo-electric and the expansion of rolling mill
#1, among other improvements made to the productive process. All
of these projects are in compliance with the environmental
agencies' regulations. To finance the project, the Company got,
on December 2004, the first line of credit of US$ 240.0 million
with the ABN Amro Bank N.V., the Bank of Tokyo-Mitsubishi and
UFJ Bank Limited, with a Nippon Export and Investment Insurance
(NEXI), a Japanese government-related agency. In April this
year, contracts in the amount of US$ 236.0 million were signed
with the Chinese companies Minmetals Development Co. and China
Metallurgical Construction (Group) Corporation for the
acquisition of the coking oven, the sinterizing unit and the
blast furnace. This contract includes the equipment, know-how
services, supervision and training regarding these units.

- Strategic alliance in Colombia - As announced on December
23rd, 2004, Gerdau has formalized an agreement with the
controlling shareholders of Diaco S.A. and Siderurgica del
Pacifico S.A. - Sidelpa, in Colombia, for the acquisition of
their respective stakes in these companies. Currently, the buy-
out of minority shareholders at Diaco is under way so that the
company can be delisted.

FIRST QUARTER 2005 PERFORMANCE
Gerdau S.A. - Consolidated

Output and Shipments

- Output of slabs, blooms and billets for the first quarter of
2005 at the Gerdau companies reached 3.5 million tons, 8.8%
greater than in the same period in 2004. This evolution is due
mainly to the consolidation of the new assets in North America.

- The units in Brazil contributed with 1.8 million tons in the
quarter, volume 4.2% superior to that of the same period in
2004, and representing 51.0% of total consolidated output. In
North America, output reached 1.6 million tons, 12.8% more than
the previous year and equivalent to 45.7% of total output.
Companies in Chile and Uruguay produced 115.4 mil tons (3.3% of
total), presenting an increase of 34.2%.

- Output of rolled products reached 2.7 million tons in the
quarter, an increase of 8.3% compared to the same period in
2004. In Brazil, output reached 968.4 mil tons, 5.2% lower
reflecting a smaller demand in civil construction and in
industrial consumers in January and February. Meanwhile in North
America output reached 1.6 million tons, an increase of 17.8%
while South America (ex-Brazil) had an output of 127.3 thousand
tons, 19.7% more than in the same quarter in 2004.

- Consolidated shipments for the first quarter of the year
totaled 3.4 million tons, 6.6% greater than the volume of the
same quarter in 2004. The highlights for the quarter were the
operations abroad which presented a growth of 17.1%, due to, in
part, to the consolidation of the new mills as well as the good
performance of these units.

- Exports from Brazil sustained a good rhythm remaining at the
same levels of the first quarter of 2004. Exports totaled 721.8
mil tons, contributed with 45.5% of total shipments of the
Brazilian operation, and generated revenues of US$ 279.2 million
in the quarter.

- Shipments from the units abroad and exports from Brazil
represented 74.2% of the first quarter 2005's consolidated
shipments.

Results

- Consolidated net sales revenue for the quarter were R$ 5.8
billion, 40.0% greater than that of the same period in 2004, as
a result of the increase in tonnage shipped. This increase was
impacted positively due in part to the consolidation of the new
units in North America and the improved prices for steel
products in the international markets. Operations in Brazil
contributed with a net sales revenue of R$ 2.7 billion, 45.7% of
the total. At the same time, business in North America generated
revenue of R$ 2.9 billion (49.5% of total) and the South
American units R$ 282.6 million (4.8% of total).

- The Gerdau companies abroad and exports from Brazil, together,
contributed with 67.7% to the consolidated net sales revenue of
the first quarter of 2005.

- The improved operating margins, both in Brazil and abroad,
contributed to the increase in gross margin from 24.4%, in the
first quarter of 2004, to 27.6% in the first quarter of 2005.
Gross profit reached R$ 1.6 billion, in the months of January
through March, 58.5% superior to that of the same period in the
preceding year.

- EBITDA reached R$ 1.4 billion in the quarter, 60.2% greater
than the value reached in the months of January through March
2004. The controlling of cost of sales and operating expenses
resulted in an increase in the EBITDA margin in the period,
reaching 24.3% compared to 21.2% in the first quarter of 2004.

- Net financial expenses in the quarter totaled R$ 123.0
million, 19.9% lower than that of the same period in 2004, a
consequence of the lower indebtedness in the period. This amount
includes monetary variations of R$ 6.4 million and FX variations
of R$ 35.6 million.

- The result in equity pick up was positive by R$ 22.5 million
in the quarter. This total refers to the variation of the
several different currencies, vis-…-vis the Brazilian real, in
translating the value of the investments made in the countries
in which Gerdau operates. It also includes the fiscal incentives
and the amortization of goodwill.

- This first quarter also included the accrual in Other
Operating Revenues the recovery of the improper collection of
taxes (PIS), based on Decree-laws 2,445/88 and 2,449/88, from
Gerdau S.A. after a favorable outcome in a legal suit. The
amount recovered was R$ 33.0 million, net of income taxes.

- Net profit in the first quarter reached R$ 810.5 million,
89.7% greater than that of the first quarter of 2004. Net margin
evolved from 10.2%, in the first quarter of 2004, to 13.9%, in
January through March of 2005.

Investments

- Investments in the quarter totaled USS$ 174.0 million,
destined, mostly, to the construction of the new mill in the
state of Sao Paulo and for the increase in the capacity of the
Ouro Branco (MG) mill.

        Investments per Region:

        South America             1.5%
        Brazil                   80.4%
        North America            18.1%

Indebtedness

- Net debt at the end of March was of R$ 4.1 billion, 22.1% less
than that of March 31st of 2004, reflecting the improvements in
cash generation in the period.

- Of the total debt, 25.2% was short term (R$ 1.6 billion) and
74.8% long term (R$ 4.8 billion).

- Of the main indicators that determine the limits to
indebtedness of the Gerdau companies, it is worth mentioning
that total debt over EBITDA generated in the last twelve months
was of 1.1X, for a maximum permissible limit of 4.0X. This same
EBITDA over Net Financial Expenses, excluding monetary and FX
variations, 23.4X, when it shouldn't go below 2.0X.

- On March 31st, cash & cash and equivalents totaled R$ 2.3
billion, of which 68.6%, that is, R$ 1.6 billion were indexed to
foreign currencies, mainly to the U.S. dollar.

NON-CONSOLIDATED INFORMATION

Metalurgica Gerdau S.A.

- Dividends based on the first quarter of 2005 total R$ 89.1
million (R$ 0.72 per share) and will be paid on May 24th based
on shares held on the 13th of this same month. Taking into
consideration the compensation of shareholders in the last four
quarters, the dividend yield (dividend per share/share price) is
11.5% per year calculated on a stock price of R$ 33.40 per
share, as recorded on April 29th, 2005.

- On March 31st, the Board approved a stock dividend of 50%
based on the number of shares held on April 11th, date of the
operation. With this stock dividend, as a result of the
incorporation of Investment and Working Capital Reserves, the
number of shares outstanding went from 83.2 million to 124.8
million.

- Metalurgica Gerdau S.A. (GOAU) shares moved R$ 774.5 million
at the Bovespa throughout the first quarter of 2005, an increase
of 74.8% compared to the same period in 2004. There were 26,430
trades (+131.9%), and represented 12.3 million of shares
compared to 6.1 million in the months of January through March
of 2004. In the quarter, the daily trading average of preferred
shares reached R$ 11.0 million compared to R$ 6.2 million in the
same quarter of 2004.

- As a result of this increase in liquidity, the Metalurgica
Gerdau S.A. preferred shares will become part of the theoretical
portfolio of the Bovespa Index, valid as of May 2nd. This index
is a benchmark for large investors and fund managers to mirror
their investments. It is composed of 55 most liquid stocks and
are selected based on a combination of volume traded, number of
trades and a negotiability index of the last twelve months.

- Metalurgica Gerdau S.A. had a net profit of R$ 311.7 million
(R$ 3.78 per share) in the first quarter, 86.7% superior to that
of the first quarter of 2004. This profit comes from, basically,
equity pick up of investments in its subsidiaries.

- On March 31st, 2005, shareholders' equity at this company was
R$ 3.3 billion, representing a shareholders' equity of R$ 39.68
per share.

Gerdau S.A.

- Dividends relative to the first quarter will be paid on May
24th, 2005 in a total of R$ 199.2 million. This total is
equivalent to R$ 0.45 per share held on May 13th. Taking into
consideration the compensation of shareholders in the last four
quarters, the dividend yield (dividend per share/share price) is
8.8% per year based on a stock price of R$ 24.49 per share,
recorded on April 29th, 2005.

- On March 31st, the Board approved a stock dividend of 50%
based on the number of shares held on April 11th, date of the
operation. With this stock dividend, the result of the
incorporation of Investment and Working Capital reserves, the
number of shares outstanding went from 296.7 million to 445.1
million.

- Gerdau S.A. (GGBR) shares moved R$ 2.7 billion on the Bovespa,
109.1% more than the first quarter of 2004. There were 86,677
trades (+128.0%) and represented 60.2 million shares compared to
20.6 million in the first quarter 2004. The average daily trade
of preferred shares reached R$ 39.6 million from January to
March 2005.

- The Gerdau S.A. ADRs (GGB), traded at the New York Stock
Exchange (NYSE), moved US$ 721.9 million in the first quarter of
2005, an amount 226.1% greater than that of the same period in
2004 and equivalent to a daily average of US$ 11.8 million.
Shares traded reached 40.5 million in the quarter compared to
10.2 million in same period of the last year.

- At the Madrid Stock Exchange (Latibex), there were 278.0
thousand preferred shares of Gerdau S.A. traded (XGGB)
throughout the first quarter, 284.5% greater than volumes
transacted in the same period of 2004. These trades moved
financial resources in the order of ? 3.7 million in the first
three months of the year compared to ? 1.3 million in the same
period in 2004.

- From January through March, Gerdau S.A. had a net profit of R$
694.8 million (R$ 2.35 per share) compared to R$ 382.0 million
(+81.9%) in the previous year's same quarter. This profit comes
from, basically, equity pick up of investments in its
subsidiaries.

- On March 31st, 2005, shareholders' equity at this company was
of R$ 6.8 billion, representing a shareholders' equity of R$
22.93 per share.

Gerdau Acominas S.A.

- The output of slabs, blooms and billets in the first quarter
of 2005, reached 1.8 million tons, 4.2% more than in the same
period of 2004. In rolled products, the output was of 968.4 mil
tons, 5.2% less than in the same quarter in the previous year.

- Shipments for the first quarter totaled 1.6 million tons, 3.1%
less than the same quarter of 2004, reflecting the lower demand
in the civil construction and the industrial steel-consuming
sector in the months of January through February. Exports
maintained a good pace reaching 721.8 thousand tons in the
quarter staying at about the same levels of the first quarter of
2004. Shipments abroad contributed with 45.5% of total shipments
and generated revenues of US$ 279.2 million in the quarter.

- Gerdau Acominas S.A.'s gross sales revenue reached R$ 3.5
billion in the first quarter of this year, 34.6% superior to
those of the same period in 2004. This reflects mainly the 30.0%
increase in the average US dollar export-selling price. Net
sales revenue reached R$ 2.7 billion, 33.5% more than in the
first quarter of 2004.

- Gross margin was 40.2% in the first quarter 2005 compared to
37.4% in the same months in 2004. As already mentioned, this
improvement is the result of higher international prices for
steel products and the adjustment of domestic prices to
compensate for the increase in certain costs.

- EBITDA reached R$ 925.6 million in the quarter, 50.6% greater
than the R$ 614.7 million obtained in the first quarter of 2004.
It was possible to record a higher EBITDA margin (34.9%) in the
first quarter due to the factors mentioned above and to the
effort to reduce operating costs. This higher margin surpassed
by 4 percentage points the margin obtained in the same period
last year.

- Net profit reached R$ 506.7 million in the first quarter of
the year, 62.0% superior to that of the same period of 2004. Net
margin evolved from 15.8% to 19.1%.

- Based on the quarter's results, shareholders will be receiving
R$ 217.4 million, on May 24th, as dividends. This amount
represents R$ 1.37 per share held on May 13th.

- On March 31st, the shareholders' equity at the company was of
R$ 5.3 billion, equivalent to a shareholders' equity of R$ 33.55
per share.

Gerdau Ameristeel Corporation

- In the first quarter of 2005, Gerdau Ameristeel's (GNA.TO)
shares moved Cdn$ 241.9 million at the Toronto Stock Exchange,
360.8% more than in the same period of 2004. There were 30.8
million shares traded in the period, an evolution of 177.5%.

- Nova York Stock Exchange (NYSE), Gerdau Ameristeel shares
(GNA) moved US$ 110.4 million throughout the first quarter of
2005, with a daily average of US$ 1.8 million. There were 17.2
million shares traded in the period.

- Net sales revenue of the Company, adjusted to Brazilian GAAP
reached R$ 2.9 billion in the first quarter of 2005, 42.3%
superior to that of the same period in 2004. This growth is due
to the increase in the average selling price and to the
consolidation of the new units acquired throughout the year of
2004.

- EBITDA also adjusted to Brazilian GAAP, reached R$ 409.9
million in the period from January to March this year, 100.9%
superior to the same months in 2004. EBITDA margin went from
10.1% to 14.2%.

- Net profit reached R$ 209.2 million in the quarter, compared
to R$ 62.6 million in the same period in 2004 (+234.2%).

About Gerdau

The Gerdau Group is the largest long steel producer in the
Americas, with 26 steel mills located in Brazil, Argentina,
Canada, Chile, the United States and Uruguay. During the first
nine months of this year, the Group produced 10 million metric
tons of steel and recorded sales of R$ 17.6 billion and a net
income of R$ 2.5 billion. The Group has shares listed on the
stock exchanges of Brazil, the United States, Canada and Spain
(Latibex). It is one of the largest recyclers of the Americas,
reusing nearly 11 million metric tons of scrap per year.

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

CONTACT: Gerdau S.A.
         Avenida Farrapos 1811
         Porto Alerge, RS 90220-005
         Brazil
         Phone: +55 3323 2000
         Web site: http://www.gerdau.com.br


GERDAU: Plans Cash Dividend Payment
-----------------------------------
The Gerdau Group informs its Shareholders that the Boards of
Metalurgica Gerdau S.A. and Gerdau S.A., in meetings held on May
3, 2005, deliberated about the proposals presented by management
with regards to the payment of dividends for the first quarter
of the 2005.

The amounts will be calculated and paid based on the position
held by shareholders on May 13th, 2005. The payment date will be
May 24th, 2005, and constitute an anticipation of the annual
minimum dividend, as stated in the bylaws, as follows:

Company Common & Preferred Shares          Amount per Share

METALURGICA GERDAU S.A.                         R$ 0.72
GERDAU S.A.                                     R$ 0.45

Please note that shares acquired on May 16th, 2005, and
thereafter, will be traded Ex-Dividend. Additional information
can be obtained at the Company's Shareholders Department,
located at:

      Av. Farrapos 1811, 90220-005
      Porto Alegre / RS - Brazil
      Phone: +55 (51) 3323-2211
      Fax: +55 (51) 3323-2281
      E-mail: acionistas@gerdau.com.br


NET SERVICOS: Net Revenues Grow 24.2% YoY in 1Q04
-------------------------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq: NETC; Bovespa: NETC4
and NETC3; and Latibex: XNET), the largest Pay-TV multi-service
operator in Latin America, and an important provider of bi-
directional broadband Internet access (Virtua), announced
Tuesday its 1Q05 financial results. The following financial and
operating information, except where otherwise stated, is
presented in U.S. GAAP on a consolidated basis.

- Net Revenues reached US$ 137.6 million, a 24.2% growth versus
the US$ 110.8 million recorded in 1Q04, showing that the organic
growth is resulting in steady revenue growth for the Company.

- The Company recorded quarterly consolidated EBITDA of US$ 43.8
million, a 40.0% increase in comparison to the same period of
2004.

- Operating Income (EBIT) grew by 71.7%, from US$ 17.3 million
in 1Q04 to US$ 29.7 million this quarter.

- Consolidated Net Debt by the end of the quarter was US$ 340.5
million, a 30.0% increase in comparison to the US$ 261.9 million
net debt recorded by the end of the first quarter of 2004.

- The Company's Net loss was of US$ 6.5 million, an upturn in
comparison to the US$ 15.0 million net loss recorded in the same
period of the previous year.

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

CONTACT: Investor Relations
         Net Servicos de Comunicacao S.A.
         Mr. Marcio Minoru
         Phone: +5511-2111-2811
         E-mail: minoru@netservicos.com.br

         Mr. Sandro Pina
         Phone: +5511-2111-2721
         E-mail: sandro.pina@netservicos.com.br


USIMINAS: Completes Cosipa Integration
--------------------------------------
Steelmaker Usinas Siderurgicas Minas Gerais SA (Usiminas) has
completed the absorption and delisting of its local unit
Companhia Siderurgica Paulista SA (Cosipa), reports Dow Jones
Newswires. Usiminas completed its consolidation of Cosipa in
March, when it purchased all outstanding shares of the company
at auction on Bovespa. Cosipa's shares were then delisted and
the unit's registration canceled by securities regulators April
5.

Following these operations, the board of Usiminas decided to
establish a new management structure for the combined company,
which will maintain their separate brands.

Current Usiminas chief Rinaldo Campos Soares will remain
president in the new management scheme. Omar Silva Junior will
be industrial director, while Gabriel Marcio Janot Pacheco will
head up development. Idalino Coelho Ferreira will be director of
domestic sales, and Renato Vallerini Junior will be director of
foreign sales.

Now that the restructuring and consolidation efforts are
complete, Usiminas said it plans to start a US$600 million
investment program to expand production and modernize equipment.

Cosipa, a flat, non-coated steel maker (slab, heavy plate, hot
and cold rolled products) installed in Cubatao, Sao Paulo was
acquired by Usiminas in 1993. Since then, Usiminas has invested
heavily in technology updating and production capacity
increases. In the last ten years, approximately US$ 1.2 billion
were invested in the installations.

Usiminas and Cosipa are the two main companies in the Usiminas
System, the largest steel making complex in Latin America, with
an installed capacity of around 9.5 million tons of flat steel
per annum.

CONTACT: Mr. Bruno Seno
         Phone: +55 (31) 3499-8710
         E-mail: brunofusaro@usiminas.com.br


VOTORANTIM PARTICIPACOES: S&P Assigns Ratings, FC Withdrawn
-----------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BBB-' local
currency and 'BB-' foreign currency corporate credit ratings to
Votorantim Participacoes S.A. (VPar). The outlook is stable.

At the same time, the 'BBB-' local currency and the 'BB-'
foreign currency corporate credit ratings on Votorantim Group
were withdrawn.

"The ratings withdrawal is intended to better reflect the
current corporate structure of the Votorantim Group by focusing
the analysis on the group's main corporate holding company,
VPar, in light of the rearrangements undertaken by the group in
the past several years," said Standard & Poor's credit analyst
Daniel Araujo. "As such, VPar today [Tuesday] holds all of the
group's shares in its industrial and financial divisions
(cement, metals, banking, pulp and paper, orange juice,
chemicals, and venture capital)."

The local currency rating reflects VPar's sound business
diversification in segments in which the group benefits from
strong fundamentals: sound market position and/or strong and
growing export capabilities, low-cost position, and, in most
cases, vertical integration. The rating also factors in a
moderate financial policy, characterized by fairly low net debt
leverage and strong liquidity. These positives are tempered by a
gradual increase in the group's acquisition strategy (with a
bias toward international markets), large capital commitments in
the pipeline, some increase in gross debt levels relative to
cash flows, and a mounting exposure to financial businesses,
which we view as riskier than the average of its industrial
portfolio.

The Votorantim Group, as reflected by the assets managed by Vpar
and their consolidated financial profile, is one of the largest
industrial conglomerates in Brazil, with net revenues of $5.7
billion and EBITDA of $1.7 billion in 2004. Total debt,
including contingent exposure to projects, adds up to $5 billion
and cash reserves to $3 billion as of Dec. 31, 2004.

The stable outlook on the local currency corporate credit rating
reflects the expectation that VPar will sustain satisfactory
profitability and liquidity as a reflection of sound and
resilient FOCF, benefiting from business diversification and
fair to positive market fundamentals for some of its key
operations. The ratings also factor in expectations for
improving consistency for financial reporting. The stable
outlook on the foreign currency corporate credit rating reflects
the outlook on the sovereign rating of the Federative Republic
of Brazil.



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

ENAMI: Legalizes Transfer of Ventanas to Codelco
------------------------------------------------
National mining company Enami and state copper company Codelco
have signed agreements legalizing the transfer of Ventanas
smelter and refinery from Enami to Codelco, reports Business
News Americas. The transfer, valued at US$393 million, will help
Enami alleviate its debt problem.

Enami plans to pay off US$450 million in debt and will use the
Ventanas proceeds to pay a large chunk of the debt. Enami is
also selling its 10% stake in the Quebrada Blanca copper mine to
raise money to pay the remaining balance.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

* COLOMBIA: Fitch Rates $335M FRN Issue 'BB'
--------------------------------------------
Fitch Ratings, the international rating agency, has assigned a
'BB' rating to the Republic of Colombia's US$335 million issue
of floating-rate notes maturing March 17, 2013. The notes pay a
coupon equal to three-month LIBOR plus 355 basis points. The
rating is in line with Fitch's long-term foreign currency rating
on Colombia. The Rating Outlook is Stable.

Economic performance has continued on an improving trend over
the past two years and near-term prospects appear generally
sound, although external and election-related risks are
significant. Growth has been supported by a favorable external
environment and by improvements in local business sentiment
based in part on perceptions of advances in the war against
insurgent groups. Currency appreciation has helped reduce
general government debt to 52% of GDP at end-2004. After
narrowing to 2.8% in 2004 from 4% of GDP in 2003 on higher tax
revenues and local government budget under-execution, the
general government deficit is expected to revert back to 4% of
GDP this year because of higher local government spending and
deterioration in the social security balance.

It is clear that some portion of Colombia's recent economic
improvement is the result of transitory positive shocks that
will not be sustained over the medium term. Higher oil prices,
low international interest rates, and strong external demand
have helped improve economic performance, and Fitch expects
these conditions to revert toward normal levels this year and
next. Beyond the expectation of a somewhat less favorable
external environment going forward, there are also risks that
local and foreign sentiment may cool somewhat as the 2006
presidential and legislative elections approach and uncertainty
as to whether President Uribe may run for re-election continues.
The somewhat larger fiscal deficit target for this year may have
to be reduced further if political and external risks prove to
have been underestimated. Structural fiscal imbalances related
to the social security deficit, declining oil production, and
rising transfers to local governments will make it difficult to
reduce shortfalls below current levels absent significant fiscal
reform. This appears unlikely before the elections and cannot be
assured afterward, either.

The Stable Outlook reflects the expectation that growth and
fiscal performance will be broadly sustained over the next two
years, supporting general stability in government debt and
gradual reductions in external debt. Creditworthiness could
improve on: substantial reductions in structural fiscal
imbalances; continued growth in investment to support higher
potential output; and sustained, strong export performance. The
credit could come under pressure, on the other hand, if fiscal
performance should deteriorate beyond current expectations and
if Colombia reverts back to a prolonged slow-growth path.
Significant deterioration in monetary and exchange rate
stability could also increase credit risk.



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

AIR JAMAICA: Union Talks Collapse Over Layoffs
----------------------------------------------
Contract negotiations between Air Jamaica and the Jamaica
Airline Pilots Association (JALPA) collapsed Monday at the
Ministry of Labor and Social Security, according to a Jamaica
Gleaner report. Talks broke down after the pilots' union learned
that Air Jamaica's government-appointed board had decided to lay
off its remaining 180 pilots as part of a restructuring plan.

Union leaders contend that the board's decision violated a deal
struck last year between civil servants and the government, in
which the government agreed not to dismiss workers in exchange
for a two-year cap on public wage increases.

Air Jamaica is still struggling to recover from massive
financial losses stemming from higher security costs and a slump
in passengers in the aftermath of the Sept. 11, 2001, terror
attacks in the United States.

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



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

GRUPO IUSACELL: Creditor Accelerates Loan Payment Schedule
----------------------------------------------------------
Grupo Iusacell, S.A. de C.V. announced that on April 29, 2005,
it received a notice dated March 21, 2005 from The Bank of New
York, acting as trustee for the $350 million 14 1/4 % notes due
December 2006, informing that, due to Grupo Iusacell's non-
payment of interest since June 1, 2003, an unspecified
percentage of noteholders have requested the acceleration of
principal and accrued interest on the notes.

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 operate.

CONTACT: Investors
         Grupo Iusacell, S.A. de C.V.
         Mr. Jose Luis Riera K.
         Chief Financial Officer
         Phone: +5255-5109-592

         Mr. J. Victor Ferrer
         Finance Manager
         Phone: +5255-5109-5927
         E-mail: vferrer@iusacell.com.mx
         Web site: http://www.iusacell.com


GRUPO IUSACELL: To Seek Shareholders OK to Delist ADS From NYSE
---------------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL; NYSE: CEL), announced
Monday that it will submit to the consideration of an
extraordinary shareholders meeting the convenience to continue
with its American Depository Shares (ADSs) program in the United
States with shares listed in the New York Stock Exchange (NYSE).

The Company considers that renowned cases of regulatory non-
compliance in the recent past, such as Worldcom, Enron,
Adelphia, Parmalat, etc. have created over-regulation in the
United States securities markets. As a result, issuers have had
to divert time and resources to comply with excessive
regulation, to the detriment of a more efficient management of
the business.

For foreign issuers in the United States, over-regulation
considerably increases current costs and expenses, along with
the risk of liability, and the benefits are very questionable.
As a result of this, the shareholders meeting of Grupo Iusacell
will consider the impact of the costs upon its business, as well
as the current and future benefits of its ADSs program.

If the shareholders' meeting decides to terminate the ADSs
program, the Company would disclose it to investors and would
send notice of this decision to Bank of New York (BONY).
Pursuant to section 6.02 of the Deposit Agreement signed with
BONY, the Company has the power to terminate it. This contract
can be accessed in documents filed by the Company with the
Securities & Exchange Commission (SEC) or in
http://www.sec.gov/Archives/edgar/data/1089695/00010191550300050
4/0001019155- 03-000504-index.htm. Such termination would be
notified to ADSs holders 90 days in advance of its termination.

If the shareholders meeting decides to terminate the ADSs
program: a) the Company would immediately communicate this
decision to both BONY and the New York Stock Exchange (NYSE); b)
BONY would notify holders of ADSs; c) the Company would proceed
to modify its F-6 format (ADSs Registry), reducing the issuance
of ADSs to zero; and d) the Company would file its modified F-6
form with the SEC.

Trading of ADSs may continue during the 90 days following the
termination of the Deposit Agreement. During that period, ADSs
holders may continue to exchange them for common shares listed
on the Mexican Stock Exchange (BMV).

Once the Deposit Agreement is terminated, the NYSE should
suspend the trading of ADSs, should notify the SEC of the
termination of the program, and request the delisting of the
ADSs from the NYSE. In case that the delisting from the NYSE
were to happen, the SEC would make it public.

In that case, ADSs holders would have the following two options
during the period of time determined by the shareholders
meeting: 1) Give instructions to BONY to exchange its ADSs into
common shares, or 2) exchange their ADSs into common shares and
request their sale in the Mexican market.

If there are less than 300 holders who are residents of the
United States, the Company may ask the SEC to cancel the
registration of the ADSs. In that case, the reporting
obligations and other U.S. securities regulatory compliance
requirements would cease to apply to the Company. We must
highlight that the registry with the SEC and the listing with
the NYSE are two independent acts, and as such, in case of an
eventual delisting from the NYSE, the Company would continue
complying with its reporting obligations with the SEC, for as
long as its registry with this authority is maintained.

The trading of shares in Mexico and the United States will
remain in place until the shareholders meeting decides about it.

If the shareholders' meeting decides not to terminate the ADSs
program, the Company would maintain its outstanding stock in the
US market as it is Monday, and ADSs holders would maintain the
same rights they currently possess.

In any event, the Company will timely disclose to investors the
relevant events that take place.

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 operate.

CONTACT:  GRUPO IUSACELL, S.A. DE C.V.
          Jose Luis Riera K., Chief Financial Officer
          Tel: +5255-5109-5927

          J.Victor Ferrer, Finance Manager
          Tel: +5255-5109-5927
          E-mail: vferrer@iusacell.com


TV AZTECA: Delisting Plans Cause Cut U.S. Share Prices
------------------------------------------------------
Mexican broadcaster TV Azteca saw its shares plunge in the U.S.
Tuesday following an announcement that it is considering
delisting from the New York Stock Exchange. TV Azteca's American
depositary receipts fell 56 cents, or 7 percent, to $7.46.
Volume was a record 11.2 million of the ADRs.

Mexico's No. 2 network said late Monday that it plans to hold a
shareholders meeting on June 1 to determine whether to cease the
company's American Depository Receipts program. Azteca cited
concerns about the high costs of "over-regulation" in the U.S.
market.

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/



=============
U R U G U A Y
=============

NBC: Governent to Sell to Private Investor by Year-end
------------------------------------------------------
The Uruguayan government is planning to privatize by the end of
the year Nuevo Banco Comercial (NBC), the state-controlled bank
that was created in March 2003 from the assets of intervened and
suspended local banks Banco Comercial, Banco Montevideo and
Banco Caja Obrera.

Citing economy minister Danilo Astori, Business News Americas
reports that the government's plan has already attracted the
interest of three bidders. Astori, however, did not provide
details of a potential price tag or which entities are
interested in purchasing NBC.

When it opened its doors in 2003, NBC had equity of US$150
million and assets and liabilities worth US$825 million and
US$699 million, respectively.

The bank has 46 branches throughout Uruguay and is looking to
become a major player in the local financial system.



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

PDVSA: Possible Insider Trading Center of CITGO Probe
-----------------------------------------------------
The head of Venezuelan Congress' Energy and Mines Commission
revealed Tuesday that the Commission's ongoing corruption probe
of Citgo Petroleum Corp. will focus on possible insider trading
in a bond buyback last year, reports Dow Jones Newswires.

"We believe the worst thing that happened was the bond
repurchase," said Jesus Garcia, a ruling party lawmaker who
heads the Commission.

The Commission is investigating if Citgo officials leaked
information of the deal to investors, noting, "Prices changed
two to three days before the announcement (of the buyback)."

Citgo, a wholly owned US subsidiary of Petroleos de Venezuela SA
(PDVSA), bought back US$550 million in bonds due 2011 last
October. Luis Marin, then-president of the firm, told the
Commission earlier this year that the operation was carried out
in line with U.S. regulations.

Apart from the bond deal, Garcia said that the Commission is
also investigating the management of pension funds at the firm
and an asphalt contract signed by Marin last year.


PDVSA: Union Riled Over Payroll Cuts
------------------------------------
The leader of Maracaibo Oil Trade Union, Mr. Luis Ortega, warns
PDVSA's management that they are looking after the welfare of
around 7,000 PDVSA Zulia workers recently fired by the state-
owned oil company.

In a report from El Universal, Ortega claimed that PDVSA's
decision could spark a crisis in the oil industry. He adds that
the government did not respect the law when it moved to dismiss
the workers.

The Union says that the workers, allegedly hired by supporters
of President Chavez to augment manpower during the two-month
nationwide strike in 2002-2003, were fired because the Company
no longer has use for them.

Ortega's backlash also extended to alleged corruption within
PDVSA's ranks, alluding to 30 managers who had joined PDVSA in
2003. In addition, Ortega debunked the Company's three million-
barrel daily production, saying actual daily production is below
the one million mark.



                            ***********


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

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members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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