TCRLA_Public/050509.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

              Monday, May 9, 2005, Vol. 6, Issue 90

                            Headlines

A R G E N T I N A

ARSOTUR S.R.L.: Court Order Initiates Bankruptcy Process
BACOM S.R.L.: General Report Update Expected June 8
BANCO BISEL: Local S&P Maintains Bonds' `raD' Ratings
BANCO SUQUIA: S&P Maintains `raD' Ratings on $36M Worth of Bonds
BERSA: Bid Winner to be Announced May 24

BRAMIKA S.R.L.: Liquidates Assets to Pay Debts
EDESUR: Reports 1Q05 Net Loss of $1.63M
GASFOR S.R.L.: Required Report Deadling Submission Set
INTERNATIONAL PURCHASE: Seeks Reorganization Approval From Court
KUSEL S.A.: Court Authorizes Plan, Finalizes Reorganization

TGS: Reports Lower Net Income in 1Q05
TELECOM ARGENTINA: S&P Maintains `raD' Rating on Bond Issues
TRANSENER: Net Profit Climbs in 1Q05 on Higher Sales Revenues
VINTAGE PETROLEUM: Reports $32M Net Income in 1Q05


B E R M U D A

PAN PACIFIC: Wind-Up Process Begins
SCHLUMBERGER OILFIELD: Names Robin Mayor as Liquidator


B R A Z I L

AES CORPORATION: Revenue Jumps 17% in First Quarter
AMPLA: S&P Assigns BB- Corporate Credit Rating
BANCO SANTOS: Central Bank to Sell Off Brokerage
BRASKEM: Board Adopts `Braskem Legal Policy'
NET SERVICOS: Holds Share Auction Today

UNIBANCO: S&P Affirms Ratings
USIMINAS: CVRD Stake Sale Expected Later This Year
VARIG: Anticipates State Bank Management Intervention


C H I L E

AES GENER: Records 49% Drop in Net Profits in 1Q05


C O S T A   R I C A

ICE: Awaits Judicial Ruling in Case Against Verizon


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Fitch Cuts FC Rating to 'DDD' From 'C'


J A M A I C A

AIR JAMAICA: Reaches Salary Agreement With Pilots


M E X I C O

AOL LATIN AMERICA: To Retrench 91 Workers by Mid-May


P E R U

* PERU: Optimistic Over $1.5M Debt Prepayment Deal


V E N E Z U E L A

CANTV: Regulator Nixes Plan to Buy Digitel
PDVSA: Chavez Cries Politics Over "Campaign" Against PDVSA


     - - - - - - - - - -


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

ARSOTUR S.R.L.: Court Order Initiates Bankruptcy Process
--------------------------------------------------------
Arsotur S.R.L. enters bankruptcy protection after Court No. 11
of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 11, 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. Ignacio Victor
Kaczer as trustee. Mr. Kaczer will be accepting creditors'
proofs of claims until the end of the verification phase on June
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 5 followed by the general report that is due on
September 16.

CONTACT: Arsotur S.R.L.
         Florida 520
         Buenos Aires

         Mr. Ignacio Victor Kaczer, Trustee
         Avda Callao 441
         Buenos Aires


BACOM S.R.L.: General Report Update Expected June 8
---------------------------------------------------
A general report on the Bacom S.R.L. bankruptcy case is due for
court submission on June 8, 2005, says Infobae. The general
report provides the court with an audit of the Company's
accounting and business records.

Local accounting firm "Estudio Popritkin, Castaneda y
Asociados", serving as trustee on the case, will prepare the
report.

Court No. 1 of Salta's civil and commercial tribunal handles
this case with assistance from the city's Clerk No. 2.

CONTACT: Bacom S.R.L.
         Jujuy 360
         Salta

        "Estudio Popritkin, Casta¤eda y Asociados"
         Trustee
         Avda Belgrano 1051
         Salta


BANCO BISEL: Local S&P Maintains Bonds' `raD' Ratings
-----------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains an `raD' rating on two Short Term Debt Securities (NSC
Reg. No. 344) issued by Banco Bisel S.A. under Program, the
Comision Nacional de Valores (CNV) reports.

The debt securities are:

- US$54 million worth of "Obligaciones Negociables Subordinadas"
issued under Series and/or Class that matured on July 20, 2000;
and

- US$300 million worth of "Programa de Emisi>n de Titulos de
Deuda a Mediano Plazo" issued under Program that also matured on
July 20, 2000

The rating action was taken based on Banco Bisel's financial
health as of December 31, 2004.

According to S&P, an obligation is rated `raD' when it is in
payment default, or the obligor has filed for bankruptcy. The
rating is used when interest or principal payment are not made
on the date due even if the applicable grace period has not
expired, unless the ratings agency believes that such payments
will be made during such grace period.


BANCO SUQUIA: S&P Maintains `raD' Ratings on $36M Worth of Bonds
----------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains a default rating on US$36 million worth of corporate
bonds issued by Banco Suquia S.A., says Argentine securities
regulator, the CNV.

The action, based on the bank's financial status as of December
31, 2004, affected the following bond issues:

- US$23 million worth of "Obligaciones Negociables subordinadas,
autorizadas por AGO de fecha 19.12.97" due on November 7, 2005;
and

- US$13 million worth of "Obligaciones Negociables Subordinadas
convertibles, autorizadas por AGE de fecha 19.9.97" due on May
23,2005.


BERSA: Bid Winner to be Announced May 24
----------------------------------------
Federal bank Banco Nacion will reveal the winner of the auction
for Banco Entre Rios (BERSA) on May 24, Business News Americas
reports. A spokesperson at the federal bank confirmed that
bidding rules have been published and will be on sale from May 9
until May 23.

Banco Nacion took over BERSA and two other Credit Agricole
units, Nuevo Banco Bisel and Banco Suquia, in 2002 after the
French banking giant left Argentina in the midst of the
country's economic and financial crisis.

The three were taken over by Banco Nacion for the purpose of
selling them back to the private sector at a later stage. Local
bank Macro Bansud won the auction for Suquia last year.


BRAMIKA S.R.L.: Liquidates Assets to Pay Debts
----------------------------------------------
Bramika S.R.L. will begin liquidating its assets following the
bankruptcy pronouncement issued by Court No. 14 of Buenos Aires'
civil and commercial tribunal, reports Infobae.

The ruling places the company under the supervision of court-
appointed trustee Liliana Mabel Oliveros Peralta. The trustee
will verify creditors' proofs of claims until July 6. The
validated claims will be presented in court as individual
reports on September 2.

Ms. Peralta 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 17.

The bankruptcy process will end with the sale of the company's
assets. Proceeds from the sale will be used to pay the company's
debts.

CONTACT: Ms. Liliana Mabel Oliveros Peralta, Trustee
         Viamonte 1337
         Buenos Aires


EDESUR: Reports 1Q05 Net Loss of $1.63M
---------------------------------------
Edesur, a unit of Chile's Enersis, posted net losses of ARS4.7
million (US$1.63mn) in the 1Q05, the power distributor told the
Buenos Aires stock exchange without providing comparable figures
for 2004. But El Cronista revealed that Edesur posted net
profits of ARS13.2 million in the same period of 2004. Net
equity at March 31, 2005 stood at ARS2.09 billion.

CONTACT:  EDESUR S.A.
          San Jos, 140
          Buenos Aires
          Tel: 4383-0200
               4381-1313


GASFOR S.R.L.: Required Report Deadling Submission Set
------------------------------------------------------
Mr. Ernesto Carlos Borzone, the trustee assigned to supervise
the liquidation of Gasfor S.R.L., will submit the validated
individual claims for court approval on May 30. These reports
explain the basis for the accepted and rejected claims. The
trustee will also submit a general report of the case on July
12.

Infobae reports that Court No. 25 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 49 assists the court with the proceedings.

CONTACT: Mr. Ernesto Carlos Borzone, Trustee
         Cuenca 1464
         Buenos Aires


INTERNATIONAL PURCHASE: Seeks Reorganization Approval From Court
----------------------------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by International Purchase S.A. Argentine daily Infobae
reports that the company filed the request after defaulting on
its debt payments.

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.

Clerk No. 11 assists the court on this case.

CONTACT: International Purchase S.A.
         Espinosa 1583
         Buenos Aires


KUSEL S.A.: Court Authorizes Plan, Finalizes Reorganization
-----------------------------------------------------------
Buenos Aires-based company Kusel S.A. concluded its
reorganization process, according to data released by Infobae on
its Web site. The conclusion came after the city's civil and
commercial Court No. 16, with assistance from Clerk No. 31,
homologated the debt plan signed between the Company and its
creditors.


TGS: Reports Lower Net Income in 1Q05
-------------------------------------
Transportadora de Gas del Sur S.A. ("TGS" or "the Company")
reported Thursday a ARP93.2 million Net Income, or ARP0.117 per
share, (ARP0.587 per ADS) for the three month period ended March
31, 2005, compared to the ARP100.4 million or ARP0.126 per share
(ARP0.632 per ADS) reported for the same period of 2004.

Almost 50% of the Net Income for the first quarter of 2005 was
explained by the Argentine Peso revaluation effect on the net
monetary position in US dollar, which amounted to ARP46.2
million.

The lower Net Income for the first quarter of 2005 is mainly due
to a decrease in the Company's natural gas liquids ("NGL")
sales, which was partially offset by a slight increase of the
other two business segments as well as a reduction of financial
expenses.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

In the three month period ended March 31, 2005, TGS posted total
net revenue of ARP231.5 million in comparison with the ARP245.1
million earned in the first quarter of 2004.

Gas Transportation revenue for the first quarter of 2005 was
ARP109.5 million, showing a 3.3% increase when compared to the
ARP106.0 million earned in the same quarter of 2004. The
increase was driven basically by higher sales of firm gas
transportation services, resulting from new firm transportation
capacity agreements effective May 2004.

The Gas Transportation segment represented approximately 47% and
43% of the Company's total revenue for the first quarters of
2005 and 2004, respectively. Gas Transportation revenues are
derived principally from firm contracts, under which pipeline
capacity is reserved and paid for regardless of actual usage by
the shipper. TGS also provides interruptible transportation
services subject to available pipeline capacity.  This segment
is subject to regulation by Ente Nacional Regulador del Gas
("ENARGAS").

The Economic Emergency Law passed by the Argentine Congress on
January 6, 2002, determined the "pesification" of regulated
tariffs at an exchange rate of US$ 1=ARP1, as well as the
prohibition to apply variations of local and international
indexes, or any other type of price adjustment thereon. Since
that time, the tariff renegotiation process has been delayed
with no significant progress thus far.

The NGL Production and Commercialization segment revenue
decreased to ARP107.6 million in the three month period ended
March 31, 2005 from ARP129.8 million for the same period of
2004, representing a 17.1% reduction. The decrease in revenue is
mainly due to a 26% reduction of volumes sold, which represented
a ARP25.1 million decrease, generated by insufficient natural
gas offer from the producers. This negative impact was partially
offset by the increase in international reference prices,  the
effect of which amounted to ARP6.0 million.

NGL Production and Commercialization revenue accounted for
approximately 46% and 53% of the total revenue for the first
quarter of 2005 and 2004, respectively. NGL production and
commercialization consists of natural gas processing activities,
conducted at the Cerri Complex, located near the city of Bahia
Blanca, which is connected to each of TGS's main pipelines,
where ethane, propane, butane and natural gasoline are
recovered. This segment also includes the commercialization of
NGL for both the Company's own account and on behalf of its
clients.

In the first quarter of 2005, Other Services revenues amounted
to ARP14.4 million, a 54.8% increase when compared to the same
period of 2004. This increase is mainly due to the effect of
additional services being provided, including: (i) a ARP1.7
million increase in midstream, (ii) ARP1.8 million increase in
construction services associated with the San Martin pipeline
expansion and (iii) a ARP1.2 million increase from the expansion
of client base in the telecommunication services.

The Other Services segment mainly includes midstream and
telecommunication activities. Its share in the Company's total
revenue accounted for approximately 6% and 4% of the total
revenue for the three month periods ended March 31, 2005 and
2004, respectively. Midstream activities consist of gas
treatment, separation, and removal of impurities from the
natural gas stream and gas compression, rendered at wellhead,
typically to gas producers. In addition, TGS provides services
related to pipeline and compression plant construction and
related operation and maintenance services. Telecommunication
services are rendered through Telcosur S.A., a company
controlled by TGS. Telcosur S.A. provides services as an
independent carrier of carriers to leading telecommunication
operators and corporate customers located in its service area.

Costs of Sales and Administrative and Selling Expenses for the
first quarter of 2005 rose by ARP3.4 million, from ARP128.2
million registered in the first quarter of 2004 to ARP131.6
million for the same period of 2005, mainly due to: (i) a ARP4.3
million increase in tax on exports (rates increased from 5% to
20%, effective May 2004) and (ii) ARP2.1 of costs incurred for
the San Martin pipeline expansion. Both of these negative
effects were partially mitigated by a ARP3.2 reduction in NGL
production costs, as the volume of natural gas purchased and the
associated richness incentive payments were lower (generated by
lower natural gas availability), partially compensated by
increases in the related prices.

Net Financial Expense for the first quarter of 2005 amounted to
ARP3.4 million. This amount includes an exchange rate gain of
ARP46.2 million generated by the 2.1% Argentine Peso revaluation
on the net monetary position in US dollars. Net Financial
Expense for the 2005 period decreased by ARP8.0 million when
compared to the first quarter of 2004. This positive variation
is principally due to lower interest accruals, generated by the
reduction in principal and the  lower effective interest rate
following renegotiation.

Other Income increased from ARP0.2 million in the three-month
period ended March 31, 2004 to ARP4.9 million in the same period
of 2005. This increase is attributable to a favorable  Court
ruling  in connection with a legal action filed by the Argentine
Tax Authority ("AFIP") against TGS. Therefore, the Company
posted the recovery of the ARP5.6 million allowance, booked in
2002.

For the first quarter of 2005, the Company reported a ARP8.4
million Income Tax expense, compared to ARP4.4 million for the
same quarter of 2004. This variation of ARP4.0 million is due
basically to a lower reversal of the tax loss carryforward
allowance posted in the 2005 period.

Liquidity and Capital Resources

Cash flow from operating activities for the three-month period
ended March 31, 2005 amounted to ARP122.7 million. These funds
were applied as follows: (i) ARP42.3 million to investment
activities, (ii) ARP25.6 million to financing activities and
(iii) the remainder to increase TGS's cash position.  Currently,
TGS relies on cash generated from operations as its primary
source of financing future activities.  For detailed information
on the Company's cash flow refer to Exhibit IV.

About TGS

TGS (NYSE: TGS, MERVAL: TGSU2), with a current firm contracted
capacity of approximately 65.4 MMm3/d or 2.3 Bcf/d, is
Argentina's leading transporter of natural gas. The Company is
also Argentina's leading processor of natural gas and one of the
largest marketers of natural gas liquids. TGS is quoted on both
the New York and Buenos Aires stock exchanges under the ticker
symbols TGS and TGSU2, respectively. TGS's controlling
shareholder is Compania de Inversiones de EnergĦa S.A.
("CIESA"), which together with Petrobras EnergĦa and a
subsidiary and Enron Corp. subsidiaries, hold approximately 70%
of the Company's common stock. CIESA is currently owned 50% by
Petrobras EnergĦa S.A. and a subsidiary, and 50% by subsidiaries
of Enron Corp.

CONTACT: Buenos Aires
         Investor Relations
         Mr. Gonzalo Castro Olivera
         Finance & IR Manager
         E-mail: gonzalo_olivera@tgs.com.ar

         Ms. Maria Victoria Quade
         Investor Relations
         Ms. victoria_quade@tgs.com.ar
         Phone: (54-11) 4865-9077

         Media Relation
         Mr. Rafael Rodriguez Roda
         Phone: (54-11) 4865-9050 ext. 1238

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


TELECOM ARGENTINA: S&P Maintains `raD' Rating on Bond Issues
------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
affirmed the `raD' ratings previously assigned to a number of
corporate bonds issued by Telecom Argentina S.A. (ex Telecom
Argentina STET - France Telecom S.A). The affected bonds,
according to information from the official Web site of the
country's securities regulator, Comision Nacional de Valores
(CNV), include:

- EUR250 Million worth of bonds described as "Serie 1 bajo el
Programa Global de ONS (D) vencimiento en septiembre 2004" with
undated maturity.

- EUR190 Million worth of bonds described as "Serie 2 bajo el
Programa Global de ONS (D) vencimiento en septiembre 2004" with
undated maturity.

- US$1.5 Billion worth of bonds describe as "Series C por U$S
agost99" with undated maturity.

The action by S&P was based on Telecom Argentina's financial
health as of December 31, 2004. The ratings agency said that a
`raD' rating is assigned to financial obligations that are
currently in default or whose obligor has filed for bankruptcy
protection.

The rating may also be issued when interest or principal
payments are not made on the date due, even if the applicable
grace period has not expired, unless S&P has reason to believe
that payments will be made during such grace period.

CONTACT:  TELECOM ARGENTINA S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Web site: http://www.telecom.com.ar


TRANSENER: Net Profit Climbs in 1Q05 on Higher Sales Revenues
-------------------------------------------------------------
Higher net sales revenue helped high-voltage electricity
transporter Transener boost its net profit in the 1Q05,
according to Dow Jones Newswires. In its Thursday earnings
report, the Company revealed a net profit of ARS14.7 million in
the 1Q05, higher than the ARS8.1 million posted in the year-
earlier period as net sales revenue rose to ARS80.7 million from
ARS65.7 million.

Higher sales revenue came from non-regulated operations, which
would include activity not restricted by a three-year freeze on
utility rates, Transener said.

The government has authorized some partial rate adjustments for
the electricity and gas sector, though broader rate hikes depend
on the pace of ongoing contract negotiations between the
administration and the country's utility sector.

Transener managed to improve its financial health this year
after it secured an acceptance rate of 98.8% from its creditors
for its US$465 million debt restructuring offer last month and
is now en route to settling that exchange. The Company gave no
time frame for that process.

Transener was one of the last major energy companies to
restructure its financial debt, and the slow negotiations with
creditors had left it susceptible to bondholder lawsuits and
foreign-exchange effects on its large debt load.

CONTACT:  Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


VINTAGE PETROLEUM: Reports $32M Net Income in 1Q05
--------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Wednesday income
from continuing operations before previously announced non-cash
unrealized derivative losses (a non-GAAP measure) of $43.4
million, or $0.65 per diluted share, in the first quarter of
2005. This compares to income from continuing operations of
$18.4 million, or $0.28 per diluted share, in the same quarter
last year. The significant increase was driven by a 20 percent
increase in production and significantly higher oil and gas
prices. Income from continuing operations (the GAAP measure) in
the first quarter of 2005 was $21.2 million, or $0.32 per
diluted share, reflecting the previously announced non-cash
unrealized derivative losses of $22.2 million after tax, or
$0.33 per diluted share.

Net income was $31.9 million, or $0.48 per diluted share, for
the first quarter of 2005 compared to $19.1 million, or $0.29
per diluted share, in the year earlier quarter. Included in net
income for the first quarter of 2005 is income from discontinued
operations of $10.7 million, or $0.16 per diluted share.

Cash flow, a non-GAAP measure, was $103.0 million for the first
quarter of 2005, up 58 percent from cash flow of $65.2 million
in the first quarter of 2004.

Production Up 20 Percent

Total production from continuing operations for the quarter of
6.8 million barrels of oil equivalent (BOE) was 20 percent above
the comparable 5.6 million BOE in the first quarter of 2004.
This increase was driven by a 24 percent increase in oil
production and a 12 percent increase in gas production compared
to the prior-year quarter.

Argentina oil production, before the impact of changes in
inventories, in the first quarter of 2005 averaged 31,379 net
barrels of oil per day (BOPD), an increase of 15 percent over
the 27,203 net BOPD produced in the comparable quarter of 2004.
The prior year's quarter was negatively impacted by a labor
strike reducing first quarter 2004 reported production by
approximately 1,800 BOPD. The remaining increase over the prior
year's quarter is a result of the company's acquisition of
properties in the San Jorge basin during September 2004 and
additional production resulting from the company's drilling and
workover programs.

Oil production in Yemen made its initial contribution in the
second quarter of 2004 and averaged 3,825 net BOPD during the
first quarter of 2005, before the impact of changes in
inventories. All of the An Nagyah field production is being
trucked to a nearby facility for processing and transporting to
an export terminal until the company's planned pipeline is
operational. The trucking capacity is approximately 7,500 gross
BOPD (3,900 net). An 18-mile (28 km) pipeline to the processing
facility is under construction and scheduled to be operational
late in the second quarter of 2005 with initial throughput
anticipated at 10,000 gross BOPD (5,200 net).

A central processing facility with an initial capacity of 10,000
to 12,000 gross BOPD (5,200 to 6,250 net) is scheduled to start
up during the third quarter of 2005.

Total net gas production from continuing operations continued to
show strong increases, fueled by U.S. exploitation successes and
the December 2004 acquisition of producing properties in the
Gulf Coast area of Alabama. Net gas production in the U.S.
increased 23 percent from last year's first quarter to average
85,360 Mcf per day in the first quarter of 2005.

The company estimates that U.S. production for the first quarter
of 2005 was reduced by 192 MBbls of oil and 238 MMcf of gas, or
232 MBOE as a result of heavy rains and mudslides in Ventura
County, California. Currently, production of approximately 400
BOPD and 950 Mcf per day remains shut in. It is expected this
production will be restored by the end of the second quarter.

Commodity Prices and Revenues

Including the impact of derivative financial instruments
accounted for as hedges, the company's realized price for oil
from continuing operations increased 18 percent to an average of
$33.62 per barrel in the first quarter of 2005, compared with
last year's first quarter average price of $28.54 per barrel.
The company's realized price for gas, including the impact of
hedges, increased 27 percent to $4.47 per Mcf compared to $3.51
per Mcf in the first quarter of 2004. As a result of the
increases in production and oil and gas prices, oil and gas
revenues increased 45 percent to $215.4 million for the first
quarter of 2005 from $148.5 million in the same quarter of 2004.

Costs and Expenses

Production costs from continuing operations totaled $6.44 per
BOE in the first quarter of 2005, which is one percent higher
than the $6.35 per BOE for the previous year's quarter. During
the first quarter of 2005, the company incurred approximately
$3.5 million to repair mudslide damage on its properties in
Ventura County, California caused by heavy rains early in the
quarter.

The company expects to spend an additional $4.0 million in total
during the second and third quarters of 2005 on these repairs.
The prior year's first quarter included $1.9 million for costs
to repair damage resulting from fires in California during late
2003.

First quarter export taxes in Argentina increased from $6.2
million in 2004 to $13.3 million in 2005 primarily as a result
of the increased export tax rates announced in August 2004.

Production, transportation and storage costs combined with
production, ad valorem and export taxes (total LOE) increased to
$9.99 per BOE in the first quarter of 2005 from $8.72 per BOE in
the year-earlier quarter, primarily attributable to the
increased export taxes in Argentina.

Exploration costs of $10.3 million for the first quarter of 2005
consisted of $6.3 million of seismic, geological and geophysical
costs, $2.6 million of dry hole costs, primarily in Yemen, and
$1.4 million of leasehold impairments. This compares to
exploration expense for the first quarter of 2004 of $1.2
million, comprised entirely of seismic, geological and
geophysical costs.

Interest expense declined 18 percent to $11.6 million in the
first quarter of 2005 compared to the first quarter of 2004
primarily due to a 19 percent reduction in average debt
outstanding.

Income from discontinued operations of $10.7 million resulted
from the reversal of a contingent tax liability established in
conjunction with a prior-year asset disposition.

Previously Announced Derivative Losses

The previously announced non-cash unrealized derivative losses
of $22.2 million after tax were recorded in the first quarter of
2005 as a result of a substantial increase in oil prices during
January and February when most of the company's oil price swap
agreements were accounted for under mark-to-market accounting.
As these oil price swap agreements are settled in future
periods, the pre tax $36.4 million non-cash charge for
unrealized losses (included in non-operating income or expense)
will be offset by higher reported oil revenues in those periods
than would be reported had this non-cash charge not been
recognized in the first quarter.

As of March 1, 2005, the company re-designated all of its oil
price swap agreements as cash flow hedges and resumed hedge
accounting for these agreements. Under hedge accounting, the
effective portion of the gain or loss on a derivative instrument
is reported as a part of "accumulated other comprehensive
income" (a component of stockholders' equity) and reflected as
an adjustment to oil and gas sales revenues in the same period
during which the hedged volumes are sold.

2005 Cash Flow and EBITDAX Targets Increased

The company is increasing its production target for 2005 from
the previously announced 26.4 million BOE to 26.8 million BOE.
The increase is due to the company's success in returning wells
shut in by the mudslides in California to production faster than
was originally anticipated plus additional gas sales in
Argentina and Bolivia as a result of increased market demands.

Due to strong oil prices experienced during the first quarter
and the strength of the forward price curve, the company has
increased its average NYMEX price assumption for 2005 to $50 per
barrel versus the previous assumption of $40 per barrel. The
company's gas price assumption for 2005 remains unchanged at
$6.50 per MMBtu. At the increased NYMEX price assumption of $50
per barrel for oil, the company expects the above normal
contract differentials recently experienced in Argentina to
continue during 2005 and has adjusted its expected net realized
prices for oil production as a percent of NYMEX prices during
2005 to be 71 percent versus the previous target of 75 percent.

After considering the impact of the increase in targeted
production, assumed NYMEX oil and gas prices, realized price
assumptions and the other assumptions enumerated in the
accompanying table, "Vintage Petroleum, Inc. and Subsidiaries,
Revised 2005 Targets," the company is increasing its target for
2005 cash flow (as defined in the attached table) by 11 percent
to $354 million, which is $34 million higher than the previous
target of $320 million. Similarly the revised target for 2005
EBITDAX has been raised by 10 percent, or $46 million, to $486
million from the previous target of $440 million.

About Vintage Petroleum

Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation, exploration, and development
of oil and gas properties and the marketing of natural gas and
crude oil. Company headquarters are in Tulsa, Oklahoma, and its
common shares are traded on the New York Stock Exchange under
the symbol VPI. For additional information, visit the company
website at www.vintagepetroleum.com.

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

CONTACT: Mr. Robert E. Phaneuf
         Vice President - Corporate Development
         Vintage Petroleum  Corporation
         Phone: (918) 592-0101



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

PAN PACIFIC: Wind-Up Process Begins
-----------------------------------
             IN THE MATTER OF THE COMPANIES ACT 1981

                           And

           IN THE MATTER OF Pan Pacific (Bermuda) Ltd.

At a special general meeting of Pan Pacific (Bermuda) Ltd., duly
convened and held at the registered office of the Company,
Century House, 16 Par-la-Ville Road, Hamilton, Bermuda, on the
22nd day of April 2005, the following resolutions were passed:

1) that the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) that R. Craig Christensen and Akira Shimizu be and are hereby
appointed Joint & Several Liquidators for the purposes of such
winding-up, such appointment to be effective forthwith.

The Liquidator informs that:

- Creditors of Pan Pacific (Bermuda) Ltd., which is being
voluntarily wound up, are required, on or before May 27, 2005 to
send their names and addresses and the particulars of their
debts or claims to the Liquidators of the Company and, if so
required by notice in writing from the said Liquidators, to come
in and prove their debts or claims at such time and place as
shall be specified in such notice or in default thereof they
will be excluded form the benefit of any distribution made
before such debts are proved

- A final general meeting of the Member of Pan Pacific (Bermuda)
Ltd. will be held at the offices of Arthur Morris, Christensen &
Co., Century House, 16 Par-la-ville Road, Hamilton, Bermuda on
the 8th day of June 2005 at 10:00 a.m. for the following
purposes:

1) receiving an account showing the manner in which the winding-
up of the Company has been conducted and its property disposed
of and hearing any explanation that may be given by the
Liquidators;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidators
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Joint Liquidators
         R. Craig Christensen
         Century House
         16 Par-la-Ville Road
         Hamilton, Bermuda

         Akira Shimizu
         4-26-11 Kamiyogha Setagaya-ku
         Tokyo, Japan


SCHLUMBERGER OILFIELD: Names Robin Mayor as Liquidator
------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                        And

IN THE MATTER OF Schlumberger Oilfield International Sales Ltd.

The Member of Schlumberger Oilfield International Sales Ltd.,
acting by written consent without a meeting on 2nd May, 2005
passed the following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J. Mayor be appointed Liquidator for the purpose
of the wind-up.

The Liquidator informs that:

- Creditors of Schlumberger Oilfield International Sales Ltd.,
which is being voluntarily wound up, are required, on or before
May 20, 2005 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Robin J. Mayor at Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator
of the said Company, and if so required by notice in writing
from the said Liquidator, and personally or by their lawyers, to
come in and prove their debts or claims at such time and place
as shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.

- A final general meeting of the Member of Schlumberger Oilfield
International Sales Ltd. will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on June 10, 2005 at 9:30 a.m. for the purposes
of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street, Hamilton
         Bermuda



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

AES CORPORATION: Revenue Jumps 17% in First Quarter
---------------------------------------------------
The AES Corporation (NYSE:AES) reported Thursday strong first
quarter results with income from continuing operations of $133
million and diluted earnings per share of $0.20 in 2005 compared
to $74 million and diluted earnings per share of $0.12 in the
first quarter of 2004. Net income of $133 million and diluted
earnings per share of $0.20 for 2005 represents an increase of
$85 million from $48 million and diluted earnings per share of
$0.08 in the prior year. Adjusted earnings per share(a) were
$0.17 per share for the first quarter of 2005 and 2004. The
table below summarizes key financial measures for the first
quarter of 2005 and 2004.

                                       First      First     %
($ millions except per share)         Quarter    Quarter  Change
                                       2005       2004

Revenue                               $2,645     $2,257      17%
Gross Margin                            $782       $680      15%
Operating Income                        $733       $632      16%
Income from Continuing Operations       $133        $74      80%
Net Income                              $133        $48     177%
Diluted Earnings Per Share from
Continuing Operations                 $0.20      $0.12      67%
Adjusted Earnings Per Share(a)         $0.17      $0.17       0%
Net Cash Provided by
Operating Activities                    $520       $402      29%

         (a) Adjusted earnings per share, (a non-GAAP financial
             measure), excludes from diluted earnings per share
             from continuing operations the effects of gains or
             losses from mark-to-market accounting adjustments
             related to derivatives, certain foreign  currency
             transaction gains and losses, significant impacts
             from net asset disposals or impairments and early
             retirements of recourse debt.

"We've started the year on a strong operating note. Our
businesses continued to deliver solid performance improvement
during the first quarter with all four segments reporting
significant increases in revenue and an AES-wide increase in
gross margin of $102 million, a 15% increase over 2004", said
AES President and Chief Executive Officer Paul Hanrahan.

"Additionally, in our contract generation segment, we completed
the acquisition of SeaWest. We also finalized the Power Purchase
Agreement and obtained a support letter from the Bulgarian
government for AES to develop, construct, and operate the 600
megawatt lignite fired Maritza power project."

Consolidated Financial Highlights

Consolidated key financial highlights for the first quarter of
2005 as compared to the first quarter of 2004 are summarized
below:

- Revenue increased 17% in the first quarter of 2005 with
increases in all segments, with particularly strong revenues
reported by our large utility business in Brazil (Eletropaulo).
Excluding the estimated impact of foreign currency translation,
revenues would have increased by 14%.

- Gross margin increased 15% driven largely by higher revenues.
Gross margin as a percent of sales declined slightly from 30.1%
in 2004 to 29.6% in 2005 due to higher fuel costs at our
Argentina and Chile businesses, the delay in the tariff increase
for our Venezuelan utility partially offset by higher margin
earnings from Eletropaulo.

- Interest expense declined $26 million to $467 million from
$493 million in 2004 reflecting lower hedge related costs and
the benefits of debt retirement at the parent company, partially
offset by additional interest on debt related to new projects.

- Income tax expense increased as a result of higher earnings
and an increase in our effective tax rate from 32% in 2004 to an
estimated 36% in 2005. The estimated rate increase is due to
increases in the local taxes imposed on our foreign businesses.

- Income from continuing operations increased 80% to $133
million from $74 million in 2004 due to better operating
performance and lower net interest expense, partially offset by
increases in minority interest expense related to higher
earnings at Eletropaulo.

- Diluted earnings per share from continuing operations
increased from $0.12 in 2004 to $0.20 in 2005.

- Adjusted earnings per share remained consistent at $0.17 in
2005. Despite the increase in our effective tax rate and higher
minority interest expense, improved performance was driven by a
15% increase in gross margin amounts for the first quarter of
2005.

- Net cash from operating activities of $520 million increased
$118 million from $402 million in 2004. Higher year over year
earnings, proceeds from the termination of a foreign currency
hedge and stable working capital levels contributed to the
increase.

- Maintenance capital expenditures were $124 million compared to
$122 million in the first quarter of 2004. Free cash flow, (a
non-GAAP financial measure) defined as net cash from operating
activities less maintenance capital expenditures was $396
million in 2005 versus $280 million during the same period in
2004.

Segment Financial Highlights

Segment key financial highlights for the first quarter of 2005
compared to the prior year period are summarized below:

- The Large Utilities segment, with 38% of consolidated revenue,
increased its revenue by 23% to $1,007 million from $818 million
in 2004. Excluding the estimated impacts of foreign currency
translation, revenues would have increased 18% for the first
quarter of 2005 versus 2004. Gross margin of $252 million
increased by 30% from $194 million for the same period in 2004.

Revenue increases were due to improvements in tariffs, including
the final realization of prior year tariff increases in Brazil
related to lost margin during the 2002 rationing period,
favorable foreign currency translation impacts and demand. Gross
margin as a percent of sales increased to 25.0% from 23.7%
primarily as a result of revenue increases in the quarter,
partially offset by higher purchased electricity and other fixed
costs and the delay in the Venezuelan tariff increase.

- The Growth Distribution segment, with 14% of consolidated
revenue, increased its revenue by 14% to $374 million from $328
million in 2004. Excluding the estimated impacts of foreign
currency translation, revenues would have increased 9% for the
first quarter of 2005 versus 2004. Gross margin of $73 million
increased 16% from $63 million for the same period in 2004.

Revenue increases were driven by improvements in tariffs,
foreign currency translation impacts and demand. Gross margin as
a percent of sales increased slightly to 19.5% from 19.2%
primarily as a result of revenue growth in the quarter that was
substantially offset by increased variable costs, including
purchased electricity costs.

- The Contract Generation segment, with 37% of consolidated
revenue, experienced an increase in its revenue of 13% to $985
million from $868 million in 2004 due to higher energy pricing,
increased volumes and favorable foreign currency translation
impacts. Excluding the estimated impacts of foreign currency
translation, revenues would have increased 11% for the first
quarter of 2005 versus 2004. Gross margin of $393 million
increased 9% from $359 million. Increases were due to energy
pricing gains and increased volumes. Gross margin as a percent
of sales declined to 39.9% in the first quarter of 2005 from
41.4% in 2004 primarily due to higher priced fuel sources in our
Chilean business caused by Argentina gas restrictions, increased
purchased electricity costs in our Chilean business, as well as
decreased contractual capacity payments at one plant in North
America.

- The Competitive Supply segment, with 11% of consolidated
revenue, increased its revenue by 15% to $279 million from $243
million in 2004. Revenues increased due to higher production
volumes, higher realized prices and favorable foreign currency
translation impacts. Excluding the estimated impacts of foreign
currency translation, revenues would have increased 13% for the
first quarter of 2005 versus the same quarter in 2004. Gross
margin remained at $64 million, similar to the prior year. Gross
margin as a percent of sales declined to 22.9% in the first
quarter of 2005 from 26.3% in 2004 primarily due to higher fuel
costs in our Argentine plants and forced outages in our New York
plants.

Outlook

AES reaffirmed its 2005 financial guidance which includes
diluted earnings per share from continuing operations of $0.76
with adjusted earnings per share of $0.83. The difference is
attributable to expected effects from foreign currency
transactions, recourse debt retirement, and derivatives mark-to-
market accounting. The operating scenario underlying this
guidance assumes a number of market factors, including foreign
exchange rates, commodity prices, interest rates, tariff
increases, new investments, as well as other significant factors
which could make actual results vary from the guidance.
Additional guidance elements are presented in the company's
First Quarter 2005 Financial Review presentation.

About AES

AES is a leading global power company, with 2004 sales of $9.5
billion. AES operates in 27 countries, generating 44,000
megawatts of electricity through 120 power facilities and
delivers electricity through 15 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

To learn more about AES, please visit www.aes.com or contact
media relations at media@aes.com.

Conference Call Information:

A replay of the conference call will be available at www.aes.com
and by telephone at 1-877-519-4471, using reservation number
5836200 followed by the pound key (#). International callers
should dial 1-973-341-3080 and use the same reservation number.
The telephonic replay will be available from 12:00 pm EDT on
Thursday, May 5 until Thursday, May 19, 2005. A replay at
www.aes.com will be available shortly after the completion of
the call.

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

CONTACT: AES Corporation
         Media Contact:
         Mr. Robin Pence
         Phone: 703-682-6552
                or
         Investor Contact:
         Mr. Scott Cunningham
         Phone: 703-682-6336


AMPLA: S&P Assigns BB- Corporate Credit Rating
----------------------------------------------

Rationale

The 'BB-' corporate credit ratings assigned to Brazilian
electric utility Companhia de Eletricidade do Rio de Janeiro
(now known as Ampla) are supported by:

    * The company's balanced financial standing with credit
metrics in line with the rating category. As of December 2004,
Ampla had funds from operations (FFO) to total debt of 18%,
total debt to capitalization of 49.5%, total debt to EBITDA
of3.6x, and FFO to gross interest coverage of 2.4x.

    * Steady, sizable residential and commercial customer base
(jointly represents 74% of total revenues) and monopoly
franchise to distribute energy in part of the state of Rio de
Janeiro.

    * Minimal exposure to currency risk. Ampla has only about
US$60 million (12% of total debt) tied to foreign currency and
this amount is protected by the use of swaps. During 2003, the
exposure was US$380 million and the intercompany conversion into
capital in early 2004 was responsible for reducing this amount.

    * Supportive approach from its parent companies, the family
block of Spain-based Endesa S.A. (A/Negative/A-1), Chile-based
Enersis S.A. (BBB-/Stable/--), and unrated Chile-based Chilectra
S.A. (referred as the Endesa/Enersis group). Since 2002, this
group capitalized Brazilian real (BrR) 1.3 billion of debt
(about US$430 million) to enhance Ampla's capital structure, as
it had deteriorated due to several problems the entire electric
sector faced since the 2001 rationing crisis.

The rating also reflects the following weaknesses:

    * Ampla faces the challenge of reducing its high level of
energy losses (23% compared with average 13% by its peers), thus
restraining the company's capacity to improve cash generation.

    * The company has a significant amount of historical past
due receivables, which currently accounts for more than twice
monthly net revenues.

    * The company is exposed to a new and evolving regulatory
environment in Brazil, though implementation has been done
without major incidents so far.

After overcoming the negative results produced by the 2001
electricity-rationing crisis, Ampla has focused on strengthening
its capital structure since 2003. One improvement occurred in
March 2004, when the company's major shareholders,
Endesa/Enersis, converted BrR710 million of intercompany loans
into capital. This capital conversion also demonstrated support
from shareholders, which already had supported other debt-to-
capital conversions during 2002 totaling BrR631 million.

Ratings stability is highlighted not only by the recent capital
structure buildups through intercompany conversions and debt-
profile extensions, but also by Ampla's improving financial
performance in 2004. In December 2004, the company had EBITDA of
about BrR351 million (compared with BrR300 million in 2003) and
FFO of BrR230 million. Consequently, Ampla showed enhanced cash
flow protection indicators including FFO to total debt of 18%,
compared with 11% in the same period of 2003; total debt to
EBITDA of 3.6x, compared with 5.4x (including intercompany debts
not converted at that time); and FFO interest coverage increased
to 2.4x (from about 2x in 2003).

Ampla also now has a significantly lower foreign currency
exposure. In December 2003, dollar-denominated debt reached
US$380 million (65% of total debt), including US$280 million of
intercompany transactions. Now, foreign currency exposure is
only US$60 million (12% of total debt). Still, Ampla continues
with its policy to hedge the short-term portion of those debts.
Although the company had always hedged its higher foreign
currency exposure in the past, the reduction of dollar-
denominated transactions prevents Ampla from being exposed to
possible cash disbursements when the local currency unexpectedly
appreciates.

Privatized in 1996, Ampla has the exclusive concession to
deliver electricity until 2026 in parts of the state of Rio de
Janeiro. The company's major shareholders are the Endesa/Enersis
group with 91.9% and Energias de Portugal S.A. (A/Watch Neg/A-1)
with 7.7%. In 2004, the company distributed 7,292 megawatt-hours
to 2.1 million customers, representing a 2.4% share of the
Brazilian electric distribution market.

Liquidity

Ampla's liquidity is comfortable due to the resolution of its
refinancing needs through the recently issued BrR400 million
debentures, low exposure to dollar-denominated debts, and
enhancement of its capital structure after the BrR710 million
intercompany conversions into capital. The shareholders decision
to not upstream dividends since 2001 has also contributed to
Ampla's financial flexibility during the past three years.

As a result of the intercompany conversion, Ampla's total debt
was BrR1.3 billion in December 2004, a drop of some BrR500
million compared with December 2003. Of the total amount, BrR393
million was short-term debt, in which about BrR240 million was
working capital loans. To deal with its short-term debt, the
company made use of part of its five-year, BrR400 million
debentures issued in January 2005.

Outlook

The stable outlook reflects the expectation that Ampla will
maintain its capital structure similar to the current levels and
with a soft amortization schedule, which translates to an
adequate leverage ratio of total debt to total capital in the
50% area and exposure to foreign-currency transactions below
20%. In addition, Standard & Poor's expects the company to
continue posting adequate cash flow protection measures as shown
in December 2004 of FFO interest coverage higher than 2x and FFO
to total debt in the 20% area. If Ampla's efforts to adequately
address some current operating deficiencies, such as the high
level of energy losses and past due receivables, positively
affect future cash flow generation and its capacity to repay
debt, the outlook could be revised to positive. On the other
hand, if both issues are not adequately resolved and also
escalate from the current levels, leading Ampla to present
indicators lower that those abovementioned, the outlook could be
revised to negative.

Primary Credit Analyst: Marcelo Costa, Sao Paulo (55) 11-5501-
8955; marcelo_costa@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-
5501-8945; milena_zaniboni@standardandpoors.com


BANCO SANTOS: Central Bank to Sell Off Brokerage
------------------------------------------------
The Central Bank's decision to liquidate intervened bank Banco
Santos also include brokerage Santos Corretora de Cambio e
Valores, according to Business News Americas. In a statement,
central bank chairman Henrique Meirelles explained that the
liquidation decision was based on Santos' economic and financial
problems, irregularities and the impossibility of reopening the
bank and the brokerage for business as usual again.

The announcement of liquidation came after a series of failures
by Santos' controller, Brazilian banker Edemar Cid Ferreira, to
reach an agreement with creditors. Santos's debts are estimated
at BRL2 billion (US$810mn). The bank's major creditors are
pension funds represented by local pension association Abrapp
and creditors represented by KPMG, whose combined claims amount
to between 60% and 70% of the total debt.


BRASKEM: Board Adopts `Braskem Legal Policy'
-------------------------------------------
The Board of Directors of Braskem S.A held a meeting on May 3,
2005 to approve these items:

a) PD.CA/BAK-08/2005 - Braskem Legal Policy , to the effect of
approving the Braskem Legal Policy, pursuant to the Board of
executive Officers' proposal, after a presentation brought by
Executive Officer Mauricio Roberto de Carvalho Ferro, according
to the terms contained in the Annex to the respective PD, which,
after signature of the Board of Directors present members, will
remain filed at the Company's headquarter;

b) PD.CA/BAK-09/2005 - Issuance of Instruments of Indebtedness
in the International Market , for the purpose of authorizing the
issuance of the Notes, in accordance with the characteristics
described in the Annex of the respective PD, authorizing the
Board of Executive Officers to sign the necessary documents and
contracts for the faithful implementation of such transactions,
which main characteristics are described in the Annex 1, 2 and 3
of the respective PD;

The board also discussed these items:

a) RESIGNATION OF MEMBERS OF THE BOARD OF DIRECTORS

The board acknowledged of the resign requests presented by the
Board member Fernando de Castro Sa, which will remain at the
exercise of its charge until the substitute take office, being
registered the wishes of thank of the other members of the Board
of Directors to the resigning member for the commitment and the
contributions during their charges at the Company, being after
that approved the convocation of the General Extraordinary
Meeting to elect the substitute of the resigning Director, to be
held at time and date to be defined by the President of the
Board of Directors and disclosed through the publishing of the
respective Notice of Convocation;

b) BOARD OF DIRECTORS MEMBERS' REMUNERATION

The board approved the proposals of individualization of the
annual Board of Directors members' remuneration to the fiscal
year of 2005, which are defined pursuant to the global limits
defined on the Annual Shareholders Meeting held on March 31,
2005, and will be in effect from May, 2005, after the analysis
and referendum by the People and Organization Committee,
pursuant to the minutes of meeting of the aforementioned
Committee held on April 18, 2005, which will remain filed at the
Company's headquarters;

The responsible Executive Officers by the subjects contained in
this item II has made presentations as follows:

1) The results of the First Fiscal Quarter of 2005;
2) The following-up of the Investments approved by the Board of
Directors and of the Alliance Agreement;
3) The following-up of the Program Braskem +;

Subjects of Company Interest:

Approved the modification of the date of the next ordinary
meeting of this Board of Directors, from June, 14 to June 22,
2005.

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


NET SERVICOS: Holds Share Auction Today
---------------------------------------
Net Servicos de Comunicacao S.A. (Company or NET), a publicly-
held company, headquartered in the city and State of Sao Paulo,
located at Rua Verbo Divino, 1356 - 1§ andar, Chacara Santo
Antonio, with the corporate taxpayer's ID (CNPJ/MF)
#00.108.786/0001-65, under the terms of the Instruction 358/02
issued by CVM (Securities and Exchange Commission of Brazil),
announces the following relevant notice:

The share leftover auction under the terms of the capital
increase, approved at the Board of Directors' Meeting held on
November 3, 2004 and ratified by the Extraordinary Shareholders'
Meeting held on February 4, 2005, and object of the Notice to
Shareholders dated March 18, 2005, will be made at the Sao Paulo
Stock Exchange - Bovespa, having Pactual CTVM S.A. as broker,
Today, from 1:05 pm to 1:20 pm at the electronic trade.

CONTACT: Net Servicos - Investor Relations
         Mr. Marcio Minoru
         Phone: (5511) 5186-2811
         E-mail: minoru@netservicos.com.br
         Mr. Rodrigo Alves
         Phone: (5511) 5186-2637
         E-mail: rodrigo.alves@netservicos.com.br
         Web site: http://www.ir.netservicos.com.br


UNIBANCO: S&P Affirms Ratings
-----------------------------
Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign
currency and 'BB/B' local currency counterparty credit ratings
on Unibanco-Uniao de Bancos Brasileiros S.A. (Unibanco). The
outlook is stable.

The local currency counterparty credit rating on Unibanco
incorporates the relatively weak operational efficiency and
credit quality of the bank as compared to that of its major
retail peers; the fairly low profitability of its large branch
network; and the implicit risks of operating in the Brazilian
market and its high economic risk (in the banking industry).
Partially counterbalancing these aspects, the rating also
reflects the well-positioned consumer finance franchise resulted
from several acquisitions and agreements, which puts the bank in
a good position to benefit from the expected growth in this
segment; the bank's organizational restructuring that should
improve future efficiency; and the lower delinquency ratio of
its newly originated loans, mainly in the retail segment.

Unibanco's organizational restructuring done in 2004 generated a
leaner structure with a focus on bottom-line and cost-control
discipline. Positive changes were implemented, including the
consolidation of back office and supporting units, the
definition of leaner processes, repositioning of the bank's
brand, and higher synergies among its business areas. "We expect
these changes to be reflected in the bank's financial profile,
namely through better cross selling, revenues mix, and
efficiency," said Standard & Poor's credit analyst Tamara
Berenholc.

Unibanco is well positioned to benefit from the retail growth
prospect in the country. The bank has established a strong
consumer finance franchise, resulted from several acquisitions
and agreements. Unibanco expanded its share in the Brazilian
retail market, both through operational agreements with large
distribution chains (such as Sonae, Magazine Luiza, and Ponto
Frio) and its own companies (Unicard, Dibens, Fininvest, and
Hipercard), which increased the weight of the retail portfolio
over total loans to 36% in December 2004 from 33% in December
2003. This segment should drive most of the lending growth in
the future and produce positive returns to the bank.

The stable outlook on the local currency credit rating reflects
our expectation that, while operating more actively in the
retail market, the bank should preserve its profitability at
levels close to those presented in 2004, and improve its asset
quality indicators to benefit from its adequate underwriting.
The stable outlook also considers the improving efficiency
ratios, given the bank's cost control disciplines and closure of
unprofitable businesses.

The stable outlook on the foreign currency counterparty credit
rating reflects that on the sovereign foreign currency rating on
Brazil. At its current level, Unibanco's foreign currency credit
rating should move in tandem with the foreign currency credit
rating on the sovereign. The local currency credit rating of the
bank would automatically follow negative changes in the
sovereign credit rating. The local currency rating would have to
be assessed on its own merits if the sovereign local currency
rating were to improve (positive outlook or upgrade).


USIMINAS: CVRD Stake Sale Expected Later This Year
--------------------------------------------------
Brazil's iron ore miner Companhia Vale do Rio Doce SA (CVRD) may
divest of its 23% stake in flat-steel maker Usinas Siderurgicas
Minas Gerais SA (Usiminas) in the second half of this year,
reports Dow Jones Newswires. The sale would fulfill CVRD's long
time plan to get rid of the stake reported to be worth BRL2
billion. CVRD is Usiminas's single biggest stockholder but isn't
part of the shareholders group that controls the Company.

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


VARIG: Anticipates State Bank Management Intervention
-----------------------------------------------------
Saddled with approximately BRL6.5 billion (USD$2.6
billion) in debts, airline Varig SA may be placed under control
of a state bank. Citing unnamed sources, AFX reports that
Banrisul, a bank run by the state of Rio Grande do Sul, may
assume management of Varig as part of a plan to keep the airline
afloat. One of Banrisul's missions would be to find an entity
that will invest in the cash-strapped company.

Among the candidates rumored to buy a 20% stake in the Brazilian
airline is Portuguese airline TAP. Two weeks ago, TAP presented
Varig a proposal, which according to Fernando Pinto, chairman of
TAP-Portugal, doesn't contain an acquisition nor a merger offer,
as what reports are suggesting. According to Pinto, TAP has
simply presented a financial restructuring plan for Varig.

The Brazilian government is pressuring Varig to settle
on a restructuring plan as soon as possible. Varig's complicated
shareholder structure has so far impeded its sale. The nonprofit
Rubem Berta Foundation representing employees has an 87% stake
in the airline and has repeatedly rejected efforts in recent
years to force it to relinquish control.

But Brazilian government officials, after floating the idea of a
state takeover of Varig in December to save the airline from
going out of business, now say they firmly support a market
solution for its troubles.

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page: www.varig.com.br/english/
          Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil



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

AES GENER: Records 49% Drop in Net Profits in 1Q05
--------------------------------------------------
AES Gener, the second-largest generator in the Chilean
electricity market, saw net profits fall 49% to CLP5.5 billion
(US$9.5 million) in the 1Q05 from the same period in the
previous year, reports Business News Americas.

In a filing to the securities regulator SVS, the Company said
the decline in its net profit is due to the 26% drop in its
operating profits, registering US$23 billion in the recent
quarter. Lower operating profits were due to higher fuel costs
at the Company's thermoelectric plants and the higher cost of
spot market purchases due to Argentine gas restrictions and
lower than normal water levels at the country's hydroelectric
plants.

High international prices for diesel and coal also affected
operating profits, partially compensated by increased node
prices in Chile.

AES Gener revealed revenues in the 1Q05 increased 22.4% to
CLP114 billion year-on-year due to higher revenues from sales to
regulated clients, to the spot market and to the Escondida mine
as well as sales of fuel and power to other clients.

Non-operating losses in the 1Q05 increased 16.8% to CLP12.5
billion year-on-year due to lower financial income from interest
payments by company parent Inversiones Cachagua on a US$200-
million inter-company loan repaid in February 2004.

Non-operating costs decreased 19.8% to CLP15.3 billion due to
lower other non-operating expenses and the Company's debt
reduction program that eliminated CLP4.472 billion of debt in
the 1Q05.

As of March 31, 2005, AES Gener's equity stood at CLP828
billion, up 6.8% year-on-year. Total assets were valued at
CLP1.49 trillion, down from CLP1.72 trillion on March 31 2004.

US power company AES (NYSE: AES) owns AES Gener through its
Inversiones Cachagua holding company.

CONTACT: AES Gener
         Mariano Sanchez Fontecilla 310 Piso 3
         Santiago de Chile
         Phone: 562-6868900
         Fax: 562-6868991



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

ICE: Awaits Judicial Ruling in Case Against Verizon
---------------------------------------------------
A Costa Rican Appellate Court sided with electricity and
telecoms monopoly ICE in a case lodged against it by a local
unit of US telecoms company Verizon (NYSE: VZ), says Business
News Americas. ICE and Verizon signed a telephone guide supply
contract that included a US$2.4 million non-fulfillment penalty
fee. Alleging that Verizon published incomplete telephone guides
as they were divided up into sectors, ICE did not distribute the
guides and is suing for damages.

Verizon filed an appeal to prevent ICE from ending the contract,
but the court rejected the appeal.

Now, both companies are awaiting a judicial ruling before
deciding what further action to take, ICE's legal representative
Geovany Bonilla and Verizon marketing manager Seidy Delgado
said.



===================================
D O M I N I C A N   R E P U B L I C
===================================

* DOMINICAN REPUBLIC: Fitch Cuts FC Rating to 'DDD' From 'C'
------------------------------------------------------------
Fitch Ratings has downgraded the Dominican Republic's foreign
currency issuer rating as well as the ratings on the debt
eligible for the exchange to 'DDD' from 'C'. However, the long-
term local currency rating has been placed on Rating Watch
Positive in anticipation of the government's improved liquidity
position as a result of the exchange.

The downgrade marks the completion of a comprehensive debt
exchange, which Fitch deemed to be an event of default under its
criteria for distressed debt exchanges. The government announced
Thursday that the exchange offer had achieved the required
minimum participation level and that the exchange would
therefore be completed. Of the US$1.1 billion in global bonds
eligible for the exchange, slightly more than 90% was tendered.
As local currency obligations were excluded from the debt
exchange, the long-term local currency (Dominican peso) rating
remains at 'CCC+'.

Ratings on the securities to emerge from the exchange will be
formally rated when they are issued on May 11, and are likely to
be rated in the 'B' category. In accordance with Fitch's
practice in distressed debt exchanges, existing bonds would
retain a default rating for at least 30 days. After 30 days, if
the government is committed to continuing to pay principal and
interest on any outstanding defaulted bonds according to their
original terms, the ratings on these securities would be raised
to a non-default rating to the extent that they are not fully
extinguished through tenders.

As the results of the exchange imply a substantial improvement
in the Dominican Republic's liquidity position, the long-term
local currency rating has been placed on Rating Watch Positive.
Scheduled amortizations through 2013 are almost entirely to
official creditors. Most of the savings in 2005 comes from Paris
Club debt relief (US$142 million) and the 100% capitalization of
the remaining interest payments on the new bonds (US$46
million), as market amortizations, which amount to US$20
million, would remain unchanged as a result of the exchange. In
2006, the most significant savings would come from the five-year
extension of the US$500 million maturity on the existing bonds.
In light of stronger than expected fiscal results during the
first quarter of this year, the public sector's total financing
needs could be reduced to an estimated 4.2% of GDP in 2005 from
8.4% in 2004. As the new bonds begin to amortize in 2007, market
amortizations would increase to US$119 million from US$20
million pre-exchange.

CONTACT:  Theresa Paiz Fredel +1-212-908-0534
          Morgan Harting +1-212-908-0820, New York

MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York



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

AIR JAMAICA: Reaches Salary Agreement With Pilots
-------------------------------------------------
Renewed talks between the management of Air Jamaica and its
pilots proved successful on Thursday, according to an AP Online
report. Besides agreeing to a 5.6% pay cut, the 180 pilots also
agreed to cuts in a range of employee benefits, including meal
allowances and overtime pay. The pilots had conceded that salary
reductions were necessary but bitterly fought cuts to benefits.

The talks follow intervention from Prime Minister P.J.
Patterson, who pressured all sides to agree to a contract during
two days of emergency talks.

The agreement gives Caribbean's largest regional airline much-
needed thrust in its bid to cut costs amid massive losses caused
by higher fuel and security costs and a drop in passengers
following the 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
===========

AOL LATIN AMERICA: To Retrench 91 Workers by Mid-May
----------------------------------------------------
The Board of Directors of America Online Latin America, Inc.
("AOLA") approved on April 29, 2005 a workforce reduction. AOLA
will terminate 15 employees in its Mexican operating subsidiary
and 76 employees at its Brazilian subsidiary. AOLA expects to
complete this workforce reduction by mid-May 2005. AOLA expects
to incur severance charges of approximately $596,000 in the
second quarter of 2005. AOLA implemented this workforce
reduction in light of its financial condition.

In addition, AOLA filed an amendment to its Fifth Restated
Certificate of Incorporation on May 3, 2005 to increase the
scope of activities in which AOLA and its subsidiaries may
engage in Spain.

To view Certificate of Amendment to the Fifth Restated
Certificate of Incorporation:
http://bankrupt.com/misc/AOLA.htm

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



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

* PERU: Optimistic Over $1.5M Debt Prepayment Deal
--------------------------------------------------
Peru is confident that the Paris Club, a 19-member group of
creditor nations, will accept its proposal to prepay almost
US$1.5 million of its debt.

In a report from Reuters, Economy Minister Pedro Pablo Kuczynski
stated that the government has received the Club's response to
its recently submitted debt payment plan. Mr. Kuczynski says
they could reach an agreement with the member-nations by the end
of the month.

At the end of 2004, the Andean nation owed $8.51 billion to the
Paris Club or almost 34 percent of its total foreign debt. Peru
is scrambling to prepay around $1.5 billion of this debt. The
prepayment could translate into annual savings of $300 million
in the next four years.

Approval of the prepayment scheme is crucial for Peru, whose
repayments grew to almost US$1.08 billion this year from US$370
million in 2004. Analysts say that Peru will likely issue long
term paper to spread its debt commitments until 2012.

The Group of Seven Industrialized Countries, United States,
Japan, Canada, Germany, Britain, France and Italy, are core
members of the Paris Club. Russia and Australia are members as
well.



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

CANTV: Regulator Nixes Plan to Buy Digitel
------------------------------------------
Compania Anonima Nacional Telefonos de Venezuela's (CANTV) plan
to acquire Digitel, the third largest telecom in the country,
has failed to get regulatory approval from Conatel. The telecom
regulator didn't authorize the plan because "we want to prevent
the creation of a duopoly in Venezuela's telecom sector," Alvin
Lezama, head of the telecom regulatory agency, told reporters
Thursday.

CANTV, the country's top telecommunications company, had planned
to pay Telecom Italia Mobile SpA US$450 million for Digitel. A
successful acquisition would have left only two main telecom
operators in the market - the other being Movistar, a company
owned by Spain's Telefonica.

"We're putting the interest of users and consumers ahead," of
business considerations, said Mr. Lezama.

The government has decided, he noted, that CANTV's bid for
Digitel created private business efficiencies but resulted in
less competition among companies. Mr. Lezama dismissed concerns
that such a decision could send a negative message to foreign
investors.

"Foreign investment must also promote competition," the
regulator said.

CANTV can now appeal the decision, regulators said. Company
officials can also restate their acquisition plan but that would
require another full review of its plans, regulators said.

"This process is closed," Mr. Lezama said.


PDVSA: Chavez Cries Politics Over "Campaign" Against PDVSA
----------------------------------------------------------
President Hugo Chavez of Venezuela has attributed recent
allegations of misconduct at PDVSA to a smear campaign against
the state-owned oil company funded by his political opponents,
reports El Universal. El Universal had earlier claimed that
PDVSA failed to deliver almost 51 percent of foreign currency
revenues from oil to the Venezuelan Central Bank.

President Chavez, however says that the report is "...based on
half-truths" although he admitted to internal flaws within the
PDVSA management. Chavez further defended PDVSA by pointing out
the company's contribution to economic and social enhancement in
Venezuela.

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
Lucilo Junior M. Pinili, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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