TCRLA_Public/050510.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

              Tuesday, May 10, 2005, Vol. 6, Issue 91

                            Headlines


A R G E N T I N A

AGROFLEX S.A.: Reorganization Process Starts
ALPARGATAS: Fitch Reiterates Junk Status on 5 Bond Issues
BACOM S.R.L.: Court Adjusts Report Submission Deadlines
BLADEX: 1Q05 Net Income Rises Substantially
CENTRAL COSTANERA: 1Q05 Net Profit Up but Costs Double

DISTRISER S.R.L.: Gets Court Approval to Reorganize
EDEMSA: Fitch Retains 'D(arg)' Rating on $150M Worth of Bonds
ENREFA S.A.: Court-Authorized Reorganization Initiated
ESPEJOS VERSAILLES: Court Appoints Trustee for Reorganization
FERVE S.R.L.: Court to Oversee Debt Renegotiation Process

GAS AR CO: Claims Review Deadline Fixed
GAVELE S.A.: Court Grants Reorganization Plea
IEBA: Fitch Retains $230M of Bonds in Default Territory
INDUSTRIAS BADAR: Seeks Reorganization Approval From Court
FRIGORIFICO CAFAYATE: Court Changes Reorganization to Bankruptcy

MIP MATRICERIA: Bankruptcy Initiated by Court Order
NICOL S.A.: Court Mandates Liquidation
NOVA DONNA: Halts Debt Payments, Moves to Reorganize
SIDERAR: Reports Substantial Growth in 1Q05
TELECOM ARGENTINA: $3.2B Worth of Bonds Remain in Default

TEXTIL ROKO: Liquidates Assets to Pay Debts
ZUM-BIER S.R.L.: Court Orders Bankruptcy Required


B E R M U D A

DOMINION MANAGED: Members Consent to Wind-Up
PEGASUS LTD.: Names Robin Mayor as Liquidator
TOTAL FITNESS: Goes Into Liquidation; KPMG To Oversee Operation
TRIMINGHAM BROTHERS: To Sell Sovereign Jewellers


B R A Z I L

AES CORP.: Reorganizes Regional Management Structure
BANCO SANTOS: Moody's Downgrades Ratings Following Liquidation
BANCO SANTOS: Regulator Partially Intervenes Insurance Companies
ELETROPAULO METROPOLITANA: S&P Ratings Reflect Cash Flow Concern
LOCALIZA RENT: Posts Bigger Net Profit, Lower Debt in 1Q05

PRIDE INTERNATIONAL: Fitch Ups Senior Unsecured Rating To 'BB-'
VARIG: Shareholders Select New Board to Rescue Airline


D O M I N I C A N   R E P U B L I C

TRICOM: Strong Subscriber Growth Boosts Revenue in 1Q05


M E X I C O

GRUPO IUSACELL: Reiterates Commitment to Continue Debt Talks
HYLSAMEX: Shareholders Grant Alfa More Time to Examine Options
TV AZTECA: Azteca America Achieves National Coverage


P E R U

BANCO WIESE: Several Firms Express Acquisition Interest


P U E R T O   R I C O

DORAL FINANCIAL: Faces Another Securities Class Action Lawsuit


U R U G U A Y

ANCAP: Resolves ARS74M Debt With Argentine Tax Agency


V E N E Z U E L A

EDC: Posts Lower Net Losses in 1Q05, EBITDA Still Falls


     - - - - - - - - - -


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

AGROFLEX S.A.: Reorganization Process Starts
--------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by local company
Agroflex S.A., reports Infobae.

"Bosnic, Lopez, Feltrin y Asociados," a local accounting firm,
was named as the Company's trustee. The firm's duties include
the verification of credit claims and preparation of the
individual and general report.

The court gave creditors until August 1 to present proof of
their claims to the trustee for verification, Infobae reveals,
without stating whether the court has set the deadlines for the
filing of the trustee's reports.

CONTACT: "Bosnic, Lopez, Feltrin y Asociados", Trustee
          Suipacha 472
          Buenos Aires


ALPARGATAS: Fitch Reiterates Junk Status on 5 Bond Issues
---------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains the
'D(arg)' rating assigned on the following corporate bonds issued
by Alpargatas S.A.I. y C.:

- US$40M worth of "Eurobonos a Mediano Plazo - Serie X" with
undisclosed maturity date;

- US$5.1M worth of "O.N. convertibles" with undisclosed maturity
date;

- ARS70M worth of "Obligaciones negociables convertibles" with
undisclosed maturity date;

- US$81.1M worth of "Obligaciones Negociables Serie A por U$S1.1
millones y Serie B por U$S 80 millones" with undisclosed
maturity date; and

- ARS80M worth of "Obligaciones Negociables Subordinadas
Obligatoriamente Convertibles en Acciones Ordinarias" that
matured on July 30, 2003.

The rating was assigned based on the Company's financial
condition as of December 31, 2004. A 'D(arg)' rating is assigned
to issues with very low recovery potential.


BACOM S.R.L.: Court Adjusts Report Submission Deadlines
-------------------------------------------------------
Court No. 1 of Salta's civil and commercial tribunal reset key
events related to the liquidation of Bacom S.R.L. to the
following dates:

1. Individual Reports Submission - May 24, 2005
2. General Report Submission - July 7, 2005

Accounting firm "Estudio Popritkin, Castaneda y Asociados"
serves as trustee on this case. Clerk No. 2 assists the court
with the proceedings.

CONTACT: Bacom S.R.L.
         Avda Chile 1243
         Salta

        "Estudio Popritkin, Castañeda y Asociados"
         Avda Belgrano 1051
         Salta


BLADEX: 1Q05 Net Income Rises Substantially
-------------------------------------------

     First Quarter 2005 Financial Highlights

- Net income in the first quarter of 2005 was US$40.1 million,
compared to US$53.9 million in the fourth quarter of 2004, and
US$29.8 million in the first quarter of 2004.

- The trade portfolio increased US$72 million, or 3%, to US$2.2
billion since December 31, 2004 and grew US$482 million, or 28%,
since March 31, 2004.

- The Bank received US$110 million in prepayments on Argentine
obligations during the first quarter of 2005, which, along with
scheduled principal reductions and assets sales, resulted in the
reversal of allocated credit loss provisions and impairment loss
on securities in a total amount of US$33 million.

- During the quarter, the credit portfolio in Argentina
decreased by US$138 million, or 58%, to US$102 million at March
31, 2005.  Net of allowances for credit losses, the credit
portfolio stood at US$46 million at March 31, 2005.

Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX - News;
"Bladex" or "the Bank") announced Thursday its results for the
first quarter ended March 31, 2005.

The table below depicts selected key figures and ratios for the
periods indicated (the Bank's financial statements are prepared
in accordance with U.S. GAAP, and all figures are stated in U.S.
dollars):

                                       Key Figures

                           1Q04            4Q04          1Q05
Net Income (US$ million)  $29.8           $53.9         $40.1

EPS (*)                   $0.76           $1.39         $1.03

Return on Average Equity   20.2%           33.1%         24.4%

Tier 1 Capital Ratio       37.9%           42.8%         41.6%

Net Interest Margin         1.69%           1.46%         1.66%

(*) Earnings per share calculations are based on the average
number of shares outstanding during each period.

Comments from the Chief Executive Officer

Jaime Rivera, Chief Executive Officer of Bladex, stated, "During
the first quarter we made steady progress on a number of fronts.

"The figures make it clear that the management effort with
respect to our portfolio in Argentina has paid off handsomely.
The exposure net of the allowance for credit losses is now down
to 2% of assets and 8% of equity, and we have, for the first
time since June 2002, placed an Argentine loan back on an
interest accrual basis.

"Commercially, our trade portfolio continues growing. Year-on-
year, our trade portfolio grew a full 28%, more than four times
the underlying economic growth rate in the Region. More than 70%
of this growth took place in the last six months, while our new
commercial team established itself. Notably, the 3% growth
during the seasonally-slow first quarter was more than double
last year's growth.

"We continue increasing our number of clients and deploying
activities derived from our trade finance client base. This
quarter, for instance, the payments initiative, where progress
has been slower than anticipated, was revamped, and we made 18
proposals to clients compared to 9 made in the six months prior.

"With the operating expense base stabilized we have concentrated
our expense reduction efforts on funding costs, where every
basis point saved brings savings of about US$200 thousand in
interest expense per year. From December 31, 2004 to March 31,
2005, our liability borrowings average margin over Libor
decreased by 4 basis points.

"On another important front, we have started a project to
upgrade our technology platform. While our current systems work
well, we are aware of the advantages that a state of the art,
scalable, flexible, and integrated solution would afford us in
terms of improved client service, shorter response times, faster
product deployment, reduced operational risk, and improved
efficiency. We expect to complete the project within a year.

"Regarding capital management, a subject which our results have
brought to the forefront again, Bladex seeks to balance risk and
return considerations in order to withstand market volatility,
maintain stable access to funding sources, provide a solid base
to finance growth, promote share ownership by long-term
investors and generate competitive returns to shareholders'
equity, and we will act accordingly.

In summary, we are making progress on all internal and external
fronts in a manner consistent with our strategy of expanding our
client base and our traditional trade intermediation activities,
while deploying new services that flow naturally from this
franchise."

Bladex is a supranational bank originally established by the
Central Banks of Latin American and Caribbean countries to
promote trade finance in the Region. Based in Panama, its
shareholders include central banks and state-owned entities in
23 countries in the Region, as well as Latin American and
international commercial banks, along with institutional and
retail investors. Through March 31, 2005, Bladex had disbursed
accumulated credits of over US$130 billion.

Bladex is listed on the New York Stock Exchange.

     Bladex, Head Office
     Calle 50 y Aquilino de la Guardia, Panama City,
     Panama
     Attention: Carlos Yap, Senior Vice President, Finance
     Tel. No. (507) 210-8581, e-mail: cyap@blx.com,

     -or-

     Investor Relations Firm
     Melanie Carpenter / Peter Majeski
     i-advize Corporate Communications, Inc.
     Tel: (212) 406-3690, e-mail: bladex@i-advize.com

     URL: http://www.blx.co


CENTRAL COSTANERA: 1Q05 Net Profit Up but Costs Double
------------------------------------------------------
Central Costanera, the Argentine generator unit of Spain's
Endesa (ELE), posted a net profit of ARS34.8 million in the
1Q05, slightly higher than the net profit of ARS32.5 million in
the same year-ago period.

According to Dow Jones Newswires, the Company recorded net sales
of ARS196.2 million, up from ARS124.6 million a year ago.
However, operating costs rose to ARS126.3 million from ARS68.4
million in the same quarter of 2004.

Revenue during the recent quarter fell by ARS68 million due to
an August 2003 government measure that required the country's
grid operator to calculate spot power prices as if generators
were using natural gas, when in fact companies such as Central
Costanera have been tapping more expensive alternative liquid
fuels due to a natural gas shortfall.

Central Costanera said fuel costs rose to ARS92.7 million in the
1Q05, more than double ARS41.7 million a year earlier. The
Company expects costs to rise even further in the second and
third quarters, when the Southern Hemisphere winter arrives.

Many analysts are predicting a repeat of last year's energy
crunch, which was a product of higher demand - fueled by the
economic recovery - that exceeded investment in infrastructure
to meet that demand.

CONTACT:  CENTRAL COSTANERA SA
          Avenida Espana 3301
          Buenos Aires, 1107
          ARGENTINA
          +54 11 4307 3040/49
          +54 1 4307 3040


DISTRISER S.R.L.: Gets Court Approval to Reorganize
---------------------------------------------------
Distriser S.R.L. will begin reorganization following the
approval of its petition by Court No. 16 of Buenos Aires' civil
and commercial tribunal. The opening of the reorganization
allows the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

Accounting firms "Estudio Martinez Angelini y Asociados",
"Chiaia, Sotlzing y Asociados" and "Disanto, Fazio, Fr" will
oversee the reorganization proceedings as co-trustees on this
case. The trustees will verify creditors' proof of claims until
July 8. The validated claims will be presented in court as
individual reports on October 3.

The firms will also submit a general report essentially auditing
the company's accounting and business records as well as
summarizing important events pertaining to the reorganization.
The report will be presented in court on December 14.

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

Clerk No. 32 assists the court on this case.

CONTACT: "Estudio Martinez Angelini y Asociados"
          Trustee
          Libertad 877
          Buenos Aires

         "Chiaia, Sotlzing y Asociados"
          Trustee
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Trustee
          Tucuman 1367
          Buenos Aires


EDEMSA: Fitch Retains 'D(arg)' Rating on $150M Worth of Bonds
-------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains the
'D(arg)' rating on bonds issued by Empresa Distribuidora de
Electricidad de Mendoza S.A. 'D(arg)'. The rating was based on
the Company's finances as of December 31, 2004.

The affected bonds were described as "Programa de emision de
Obligaciones Negociables simples". Argentina's securities
regulator, the Comision Nacional de Valores relates that the
bonds, worth a total of US$150M, will mature on April 13, 2005.

Fitch said that the given rating is assigned to bonds that are
currently in default. Edemsa has struggled amid frozen and
"pesofied" tariffs, rising levels of uncollectibles and illegal
power connections. Last year, the Company's debt stood at ARP31
million (US$10.3 million).

CONTACT: Empresa Distribuidora de Electricidad de Mendoza S.A.
         San Martin 322 (5500)
         Mendoza


ENREFA S.A.: Court-Authorized Reorganization Initiated
------------------------------------------------------
Enrefa S.A. successfully petitioned for reorganization after
Court No. 16 of Buenos Aires' civil and commercial tribunal
issued a resolution opening the Company's insolvency
proceedings. Under insolvency protection, the company will
continue to manage its assets subject to certain conditions
imposed by Argentine law and the oversight of a court-appointed
trustee.

Infobae relates that accounting firms " Estudio Martinez
Angelini y Asociados", "Chiaia, Sotlzing y Asociados", and
"Disanto, Fazio, Fr" will serve as joint trustees on this
reorganization. The trustees will accept creditors' proofs of
claims for verification until July 8.

After verifications, the trustee will prepare the individual
reports and submit it in court on October 3. The firms will also
present a general report for court review on December 14.

The company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on August 2, 2006.

CONTACT: "Estudio Martinez Angelini y Asociados"
          Trustee
          Libertad 877
          Buenos Aires

         "Chiaia, Sotlzing y Asociados"
          Trustee
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Trustee
          Tucuman 1367
          Buenos Aires


ESPEJOS VERSAILLES: Court Appoints Trustee for Reorganization
-------------------------------------------------------------
Espejos Versailles S.A., a company operating in Buenos Aires, is
ready to start its reorganization after Court No. 16 of the
city's civil and commercial tribunal appointed Ms. Maria Paulina
Alva to supervise the proceedings as trustee. Clerk No. 32
assists the court on this case.

An Infobae report states that Ms. Alva will verify creditors
claims until July 6. Afterwards, she will present these claims
as individual reports for final review by the court on September
1. The trustee will also provide the court with a general report
pertaining to the Company's reorganization on October 14. The
court has scheduled the informative assembly on April 13 next
year.

CONTACT: Espejos Versailles S.A.
         Avda de Mayo 981
         Buenos Aires

         Ms. Maria Paulina Alva, Trustee
         Montevideo 536
         Buenos Aires


FERVE S.R.L.: Court to Oversee Debt Renegotiation Process
---------------------------------------------------------
Court No. 16 of Buenos Aires' civil and commercial tribunal,
with assistance from Clerk No. 32, issued a resolution opening
the reorganization of Ferve S.R.L., reports Infobae. The
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. The reorganization allows the company to retain
control of its assets subject to certain conditions imposed by
Argentine law and the oversight of a court appointed trustee.

Accounting firms "Estudio Martinez Angelini y Asociados",
"Chiaia, Sotlzing y Asociados", and "Disanto, Fazio, Fr" will
serve as trustees during the course of the reorganization. The
firms will be validating creditors' proofs of claims until July
8. The results of the verification will be presented in court as
individual reports on October 3.

The trustees are also obligated to give the court a general
report of the case on December 14. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on
August 2, 2006.

CONTACT: "Estudio Martinez Angelini y Asociados"
          Trustee
          Libertad 877, Buenos Aires

         "Chiaia, Sotlzing y Asociados"
          Trustee
          Suipacha 190
          Buenos Aires


GAS AR CO: Claims Review Deadline Fixed
---------------------------------------
The verification of creditors' claims for the Gas Ar Co S.A.
insolvency case is set to end on July 8, states Infobae. Local
accounting firms "Estudio Martinez Angelini y Asociados",
"Chiaia, Sotlzing y Asociados" and "Disanto, Fazio, Fr",
appointed as co-trustees on this case will, submit the
validation results as individual reports on July 8. The firms
will also present a general report in court on October 3.

On August 2 next year, the company's creditors will vote on the
settlement proposal prepared by the company. Infobae adds that
the company's reorganization is under the jurisdiction of Court
No. 16 of Buenos Aires' civil and commercial tribunal. The
city's Clerk No. 32 assists the court with the proceedings.

CONTACT: "Estudio Martinez Angelini y Asociados"
          Trustee
          Libertad 877
          Buenos Aires

         "Chiaia, Sotlzing y Asociados"
          Trustee
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Trustee
          Tucuman 1367
          Buenos Aires


GAVELE S.A.: Court Grants Reorganization Plea
---------------------------------------------
Gavele S.A., a company operating in Buenos Aires, begins
reorganization proceedings after the city's civil and commercial
Court No. 16, with assistance from Clerk No. 32, 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 accounting firms
"Estudio Martinez Angelini y Asociados", "Chiaia, Sotlzing y
Asociados" and "Disanto, Fazio, Fr."

Creditors with claims against the Company must present proofs of
the indebtedness to the trustees before July 8. These claims
will constitute the individual reports to be submitted in court
on October 3. The court also requires the trustees to present an
audit of the company's accounting and business records through a
general report due on December 14. An informative assembly for
the Company's creditors is scheduled on August 2 next year.

CONTACT: "Estudio Martinez Angelini y Asociados"
          Trustee
          Libertad 877
          Buenos Aires

         "Chiaia, Sotlzing y Asociados"
          Trustee
          Suipacha 190
          Buenos Aires

         "Disanto, Fazio, Fr"
          Trustee
          Tucuman 1367
          Buenos Aires


IEBA: Fitch Retains $230M of Bonds in Default Territory
-------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintained the
default rating given to a total of US$230 million worth of
Inversora Electrica de Buenos Aires S.A. corporate bonds.

According to the country's securities regulator, the Comision
Nacional Valores, the rating given last week was based on the
Company's finances as of December 31, 2004.

The default rating applies to US$100 million of "Obligaciones
Negociables por U$S 100.000.000", and US$130 million of
"Obligaciones Negociables Simples no convertibles en acciones."
These bonds were classified under "Simple Issue."


INDUSTRIAS BADAR: Seeks Reorganization Approval From Court
----------------------------------------------------------
Court No. 11 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Industrias Badar S.R.L. 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.

The city's Clerk No. 21 assists the court on this case.

CONTACT: Industrias Badar S.R.L.
         Melincue 4254
         Buenos Aires


FRIGORIFICO CAFAYATE: Court Changes Reorganization to Bankruptcy
----------------------------------------------------------------
Frigorifico Cafayate S.R.L., which was undergoing
reorganization, entered bankruptcy on orders from Court No. 20
of Buenos Aires' civil and commercial tribunal, according to
Infobae.

The credit verification process will be done "por via
incidental", says the report, adding that the court ordered the
trustee to submit the general report on October 4.


MIP MATRICERIA: Bankruptcy Initiated by Court Order
---------------------------------------------------
Court No. 20 of Buenos Aires' civil and commercial tribunal
declared Mip Matriceria de Plasticos S.R.L. bankrupt after the
company defaulted on its debt payments. The order effectively
places the company's affairs as well as its assets under the
control of court-appointed trustee Laura Marletta.

As trustee, Ms. Marletta is tasked with verifying the
authenticity of claims presented by the company's creditors. The
verification phase is ongoing until June 10.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on August 5. A general report will also be
submitted on September 16.

Infobae reports that Clerk No. 39 assists the court on this
case. That will close with the disposal of the company's assets.
Proceeds from the sale will be used to repay the company's
debts.

CONTACT: Ms. Laura Marletta, Trustee
         San Jose de Calasanz 530
         Buenos Aires


NICOL S.A.: Court Mandates Liquidation
--------------------------------------
Court No. 20 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Nicol S.A. after the company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement will effectively place the company's affairs as
well as its assets under the control of Mr. Julio Cesar
Moralejo, the court-appointed trustee.

Mr. Moralejo will verify creditors' proofs of claims until July
8. The verified claims will serve as basis for the individual
reports to be submitted in court on September 6. The submission
of the general report follows on October 11.

Clerk No. 40 assists the court on this case that will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Mr. Julio Cesar Moralejo, Trustee
         Junin 55
         Buenos Aires



NOVA DONNA: Halts Debt Payments, Moves to Reorganize
----------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Nova Donna S.R.L., says Infobae. The city's Clerk No. 19
assists the court on this case.

CONTACT: Nova Donna S.R.L.
         Avda Libertador 6550
         Buenos Aires


SIDERAR: Reports Substantial Growth in 1Q05
-------------------------------------------
Highlights: First quarter ended March 31, 2005

- Net sales of ARP1,183.7 million, up 50% from ARP787.4 million
- Operating income of ARP503.9 million, up 82% from ARP277.3
million
- EBITDA of ARP563.9 million (48% of net sales), up 72% from
ARP328.7 million (42% of net sales)
- Net income of ARP417.0 million, up 103% from 205.7 million.
Net earnings per share of ARP1.2002 (ARP9.6019 per ADS)

The net result of ARP417.0 million was mainly generated by an
operating profit of ARP503.9 million, a financial and holding
results, and other ordinary income and expenses gain of ARP73.4
million, an income tax charge of ARP212.2 million, and an equity
gain of ARP51.9 million for related companies Ylopa and Amazonia
participation in Sidor. In the previous year the net result was
ARP205.7 million.

During the period the Argentine economy continued showing
positive signs of growth. Industrial activity grew 6.1% in the
quarter as measured by the EMI index. In the international
scenario, although prices and demand remained basically
unchanged, the trend shows some signs of weakening.

Outlook

In the new fiscal year the Company faces important challenges.
On one hand, the recent exit from the sovereign debt default
establishes the possibility of an economic consolidation of
Argentina, that must be followed by a process of investments and
industrial development, in which Siderar not only participates,
but played and will play a leading role through its SMEs support
program, and its continued support to investments in the sector
and to customers growth.

Natural gas supply is one of the Company's concerns as the
Argentine economy recovery generated a considerable increase in
the consumption of natural gas that was not followed by an
increase in the offer. Investments in the North and South gas
pipelines that are already in execution should help to ease this
situation.

With respect to the international markets, the increase in
production capacity, mainly in China, has generated recent signs
of price weakening in the United States and Europe that resulted
in production cuts announcements by the main steel companies,
especially in Europe. The increase in raw material prices for
the iron ore and coal international markets for the year 2005 is
another factor that impels to take actions to maintain the steel
price levels.

In this scenario its necessary, on one hand, to closely watch
the balance between the offer and the demand of steel products
in the different regions, and its ability to absorb this
production increases without considerably affecting the level of
international prices; on the other hand, it is necessary to
generate higher efficiencies in Siderar to partially offset the
higher costs of raw materials that the Company will bear this
year.

Results for the Quarter ended March 31, 2005 vs. the Quarter
ended March 31, 2004 Siderar recorded a net income of ARP417.0
million in the quarter. In the same period the previous year he
net income was ARP205.7 million. Earnings per share (EPS) and
per ADS were a gain of ARP 1.2002 and ARP9.6019 respectively
based on a total of 347,468,771 shares outstanding as of March
31, 2005. Each ADS represents 8 (eight) class "A" shares.

Total shipments were 597 thousand tons, up 7% compared to the
same period the previous year as a result of higher production
levels.

Domestic market shipments totaled 380 thousand tons, similar to
those of the previous year. The auto industry continued showing
a significant increase in production in the first quarter,
reflecting the recovery of the domestic market and higher
exports. New projects announced in this sector lead to the
approval of investments in the electro galvanized line in order
to increase its production capacity and meet the expected future
demand.

Export shipments totaled 217 thousand tons including 28 thousand
tons of slabs, an increase of 20% compared to the same period
the previous year. Export destinations were as follows:

             % finished products             1Q 2005

                Europe                        50%
                Latin America                 22%
                North America                 22%
                Asia                           4%
                Africa                         2%
                Total                        100%

Net sales were ARP1,183.7 million compared to ARP787.4 million
in the same period the previous year. This improvement is mainly
the result of better steel product prices and higher export
shipments.

Cost of sales in the quarter were ARP621.7 million (53% of net
sales) compared to ARP462.5 million (59% of net sales) in the
same period the previous year. The increase is mainly the result
of higher prices for raw materials such as iron ore, coal and
coke, and for freights, together with higher domestic costs such
as supplies, energy, services and labor.

Selling, general and administrative expenses in the quarter were
ARP58.1 million (5% of net sales), compared to ARP47.6 million
(6% of net sales) in the previous year. The increase in expenses
is mainly due to higher exports.

Operating profit was ARP503.9 million (43% of net sales)
compared to ARP277.3 million (35% of net
sales) the previous year.

EBITDA was ARP563.9 million and EBITDA margin was 48% in the
period, which compares to an EBITDA margin of 42% in the
previous year.

Financial and holding results were a gain of ARP89.1 million.
This result includes a gain of ARP4.6 million in net financial
income, a loss of ARP7.3 million in net foreign exchange rate
differences as a result of the Argentine Peso appreciation, and
a gain of ARP91.9 million in net inventory and spare parts
holding results, reflecting mainly the increase in the
international price of raw materials and some services. This
result compares to a gain of ARP61.6 million last year,
including a loss of ARP13.1 million in net financial results, a
gain of ARP4.8 million in net foreign exchange rate differences,
and a gain of ARP69.9 million in net inventory and spare parts
holding results. The difference compared to the previous year is
mainly a gain of ARP9.9 million in net inventory and spare parts
holding results, and a gain of ARP13.5 million due to the lower
indebtedness.

Other income and expense represented a net loss of ARP15.7
million in the quarter, compared to a net loss of ARP 8.3
million in the same period the previous year. The increase is
mainly the result of a higher contingency provision this year.

The income tax charge of the period was ARP212.2 million,
including an income tax provision charge of ARP218.9 million,
and a differed tax provision recovery of ARP6.8 million. In the
same period the previous year the income tax charge was ARP124.6
million, including an income tax provision charge of ARP110.6
million, and a differed tax provision charge of ARP14.0 million.
The tax increase is the result of a higher net income.

Amazonia and Ylopa equity holdings result for the quarter,
generated by its participation in Sidor, was a gain of ARP51.9
million compared to a loss of ARP0.3 million in the same period
the previous year. This significant improvement was generated by
a higher Sidor's operating result. Additionally, as a result of
the Venezuelan currency depreciation, the Company registered a
negative conversion difference of ARP131.6 million. Siderar's
investment in Amazonia and Ylopa was, as of March 31, 2005,
ARP436.9 million.

During the period the operating cash flow was ARP570.2 million.
The most relevant applications were ARP454.9 million increases
in liquidity, ARP78.9 million investments in fixed and
intangible assets, and ARP19.2 million increases in inventories.

The ARP78.9 million invested in the period included the
expansion of the coke producing facilities with the start up of
the #2 battery, and the modernization of the #1 converter of the
steel shop. Information technology investments were ARP6.8
million.

On April 18, 2005 the Shareholders Meeting approved a cash
dividend distribution of ARP299.9 million, equivalent to
ARP0.863 per share (ARP6.904 per ADS), effective May 6, 2005.

To see financial statements:
http://bankrupt.com/misc/Siderar_1Q2005.pdf

CONTACT:  Siderar S.A.I.C.
          Leonardo Stazi (CFO)
          Pablo Brizzio (Financial Manager)
          Guillermo Etchepareborda (IR)
          54 (11) 4018-2308 / 2434 / 2752
          URL: http://www.siderar.com


TELECOM ARGENTINA: $3.2B Worth of Bonds Remain in Default
---------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintains a `D(Arg)'
rating on a total of US$3.2 billion worth of corporate bonds
issued by Telecom Argentina S.A. (formerly Telecom Argentina
STET-France Telecom S.A.), the Comision Nacional de Valores
(CNV) reports.

The bonds in default are:

- US$200 million worth of "Programa de ON simples." Maturity
date was not indicated;

- US$1.5 billion worth of "Programa Global de ONs autorizado por
Asamblea de fecha 16.3.99", due on August 2, 2004; and

- US$1.5 billion of "Programa de obligaciones negociables," with
undisclosed maturity date.

The rating action was taken based on the Company's finances as
of December 31, 2004.

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


TEXTIL ROKO: Liquidates Assets to Pay Debts
-------------------------------------------
Buenos Aires-based Textil Roko S.R.L. will begin liquidating its
assets following the pronouncement of the city's Court No. 18
that the company is bankrupt, reports Infobae.

The ruling places the company under the supervision of court-
appointed trustee Jorge Ernesto del Hoyo. The trustee will
verify creditors' proofs of claims until August 25.

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

CONTACT: Textil Roko S.R.L.
         Uruguay 684
         Buenos Aires


ZUM-BIER S.R.L.: Court Orders Bankruptcy Required
-------------------------------------------------
Zum-Bier S.R.L. enters bankruptcy protection after Court No. 18
of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 35, 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. Jorge Alberto Testa
as trustee. Mr. Testa will be verifying creditors' proofs of
claims until the end of the verification phase on June 22.

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 3 followed by the general report, which is due on
September 14.

CONTACT: Mr. Jorge Alberto Testa, Trustee
         Maipu 459
         Buenos Aires



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

DOMINION MANAGED: Members Consent to Wind-Up
--------------------------------------------
              IN THE MATTER OF THE COMPANIES ACT 1981

                             And

      IN THE MATTER OF Dominion Managed Investments Limited

The Members of Dominion Managed Investments Limited, acting by
written consent without a meeting on 28th April 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 and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Dominion Managed Investments Limited, 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 Members of Dominion Managed
Investments Limited 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., or as soon as
possible thereafter, 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, Trustee
         Clarendon House
         Church Street
         Hamilton, Bermuda


PEGASUS LTD.: Names Robin Mayor as Liquidator
---------------------------------------------
              IN THE MATTER OF THE COMPANIES ACT 1981

                               And

                   IN THE MATTER OF PEGASUS LTD

The Members of Pegasus Ltd., acting by written consent without a
meeting on 29th April 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 and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Pegasus 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 Members of Pegasus 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., or as soon as possible thereafter, 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


TOTAL FITNESS: Goes Into Liquidation; KPMG To Oversee Operation
---------------------------------------------------------------
The Official Receiver of Total Fitness Centre Ltd. and Prince
Deli and Bakery Ltd. has appointed KPMG Financial Services to
act as his agent to oversee the liquidation of the failed
company, the Royal Gazette reports.

As such, all enquiries from Total Fitness members, staff and
creditors should now be directed to KPMG. The Official Receiver
also directs any parties interested in buying the business or
its assets to contact KPMG directly.

The co-businesses on Burnaby Street abruptly ceased operations
on April 29, 2005. Its 25 staff as well as an estimated 150
current members were given no advance notice of the closure.

For months, rumors have been circulating that the gym/deli might
close down. Management has been looking for new premises
following notification that its landlord planned to tear down
its current home. As recently as January this year, the Company
assured that the rumors were untrue and it had every intention
of continuing in business.

But Joanne Thain, director of Total Fitness, said last Friday
that the closure came for a number of different reasons beyond
the pending loss of location.

"We were finding the rising cost of running a fitness center and
deli was getting beyond our ability to do," she said. "It was
getting too high and we were also finding a lot of competition.
There are so many other gyms now, every little building has a
gym and it is hard to get the volume."

Ms. Thain said another reason for the closure is that her father
is in poor health and is "really not able to deal with it
anymore".

Former UBP MP Dr. Clarence James became the sole owner of the
company after he began legal proceedings against his business
partner David Dunkley in 2002, claiming that the affairs of the
company were not being conducted properly.


TRIMINGHAM BROTHERS: To Sell Sovereign Jewellers
------------------------------------------------
Trimingham Brothers Ltd. has decided to put on the block
Sovereign Fine Jewellers Ltd., the only retail business owned by
the Company that does not bear the Trimingham's name, according
to a Royal Gazette report.

"The idea is that Trimingham Brothers would be looking at
selling it off as going concern," Trimingham's legal counsel
Wendell Hollis was quoted as saying.

Trimingham's purchased Sovereign Fine as a going concern from
David Herrington some years ago.

The Island's oldest retailer has also been investigating the
possibility of selling off other departments within its main
retail operation as going concerns.

The shoes, jewelry and cosmetics departments are among those Mr.
Hollis previously pinpointed as possibly ending up in other
hands. At least three parties are interested in taking over the
store's cosmetic business.

Along with its main store on Front Street, Trimingham's will
also be closing down its various Trimingham's satellite shops
within the next couple months. All but the store in Paget are
rental properties.

As for the Paget property, Mr. Hollis said that the owners, the
Trimingham family trust, are now "reviewing their options".

Trimingham Brothers shocked the region in March when it
announced that the largest and most recognized retailer in
Bermuda would close its doors this summer after 163 years in
business.

Trimingham's took over its biggest rival, HA&E Smith, in a
merger last year. Those close to the industry speculated that
the Smith's buyout may ultimately have been Trimingham's undoing
by putting too heavy a burden of debt on the latter.
Trimingham's management told the press that the closing is not
due to bankruptcy, although it did admit that it was not able to
secure long-term financing.

CONTACT:  TRIMINGHAM'S
          37 Front Street
          Hamilton HM 11 Bermuda
          Phone: 441-295 1183
          Fax: 441 295 3777
          E-mail: information@triminghams.com



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

AES CORP.: Reorganizes Regional Management Structure
----------------------------------------------------
AES Corp. has a new regional organizational structure, which
includes, among other changes, the appointment, effective as of
May 4, 2005, of four new regional presidents.

David Gee (50) was appointed to serve as regional President of
AES's North America group. Mr. Gee served as Vice President of
Strategy for AES since 2004. Prior to joining AES, he served as
Vice President -- Strategic Planning at PG&E Corporation from
2002 - 2003 and was a consultant at McKinsey and Company from
1985 - 2000. AES has not entered into an employment agreement
with Mr. Gee in connection with Mr. Gee's appointment.

Andres Gluski (47) was appointed to serve as regional President
of AES's Latin America group. Mr. Gluski joined AES in 1998 and
has since held several senior leadership positions including
Senior Vice President, Caribbean and Central America and
Chairman and CEO of Electricidad de Caracas, a subsidiary of
AES. AES has not entered into an employment agreement with Mr.
Gluski in connection with Mr. Gluski's appointment.

Haresh Jainsinghani (38) was appointed to serve as regional
President of AES's Asia group. Mr. Jaisinghani joined AES in
1994 and has since held several senior leadership positions,
including Officer and Vice President of AES in Asia, where he
managed operations and business development. AES has not entered
into an employment agreement with Mr. Jainsinghani in connection
with Mr. Jainsinghani's appointment.

Shazhad Qasim (50) was appointed to serve as regional President
of AES's Europe, Africa and the Middle East group. Mr. Qasim
joined AES in 1992 and has since held senior leadership
positions, including Senior Vice President and General Manager
of AES in the Middle East and North Africa, where he was
responsible for business development and operations. AES has not
entered into an employment agreement with Mr. Qasim in
connection with Mr. Qasim's appointment.

As part of the new organizational structure, John Ruggirello,
formerly Chief Operating Officer - Contract Generation and
acting COO- Integrated Utilities, will remain Executive Vice
President and a member of the Executive Office.


BANCO SANTOS: Moody's Downgrades Ratings Following Liquidation
--------------------------------------------------------------
Moody's Investors Service downgraded its ratings for Banco
Santos S.A. The long-term global local and foreign currency
deposit ratings were downgraded to C from Caa1, and the foreign
currency bond rating was downgraded to C, from Caa3. The long-
term national scale deposit rating was downgraded to C.br, from
Caa1.br. All ratings have a stable outlook.

The rating action follows the announcement of Banco Santos's
liquidation by Brazil's Central bank and concludes the rating
review that was initiated in November 2004.

The following ratings were downgraded:

Global local currency long-term deposit rating: to C, from Caa1

Foreign currency long-term deposit ratings: to C, from Caa1

Foreign currency long-term bond rating: to C, from Caa3

Long-term national scale deposit rating: to C.br, from Caa1.br


BANCO SANTOS: Regulator Partially Intervenes Insurance Companies
----------------------------------------------------------------
Insurance companies belonging to Banco Santos are heading for
the auction block or liquidation, Business News Americas
reports, citing Brazil's insurance regulator, the Susep. The
regulator's announcement follows a decision by the central bank
to liquidate Banco Santos and the brokerage Santos Corretora de
Cambio e Valores.

Banco Santos, the 20th-largest Brazilian bank by assets, was the
first to be taken over by the government since 1999. The bank
failed after running short BRL2.2 billion (US$892 million) to
cover BRL2.98 billion in liabilities.

Even after the bank's intervention, the Santos insurers and a
savings bond provider continued to operate. But after the
central bank revealed its intention to liquidate the bank, Susep
decided to partially intervene the companies with the aim of
selling or liquidating them.

The partial intervention will see the three companies, Santos
Seguradora, Santos Companhia de Seguros and Valor Capitalizacao,
continue to operate but with a Susep representative joining
their respective boards to supervise the operations.

Susep has not put a final date on the partial intervention but
it will begin to search for potential buyers of the companies,
and liquidate them if no buyers are found.


ELETROPAULO METROPOLITANA: S&P Ratings Reflect Cash Flow Concern
----------------------------------------------------------------

Rationale

The ratings assigned to Eletropaulo Metropolitana Eletricidade
de São Paulo S.A. reflect that although the new terms and
conditions of the debt restructuring concluded in 2004 are more
favorable and the amortization schedule is smoother than the
company had before, Eletropaulo still faces fairly tight cash
flow to handle its debt maturities in 2005, and will need to
take on additional debt to refinance debt amortizations starting
in 2007. However, this scenario incorporates the fact that the
company would receive the planned resources from Banco Nacional
de Desenvolvimento Economico e Social (BNDES) regarding the
capitalization program (about Brazilian real (BrR) 771 million)
and the third tranche of the rationing financing (BrR243
million, already received in January 2005). The company filed a
debenture shelf registration program of BrR1.5 billion, of which
a portion should be issued during 2005 and would serve to
enhance the company's financial flexibility.

The ratings also reflect the following concerns:

    * Leveraged capital structure (funds from operations (FFO)
to total debt should remain below 20% during the next two to
three years);
    * Pressure to upstream dividends together with AES Tietê and
AES Uruguaiana to holding company Brasiliana Energia S.A. to
support payment of US$510 million debt at the holding company
level. Brasiliana holds an 11-year debt that starts to amortize
in 2007;
    * High volume of past due accounts receivable, mostly
related to state government and municipalities. In December
2004, Eletropaulo reported BrR1.16 billion of renegotiations
with those delinquent consumers, although about BrR300 million
are already provisioned as a loss;
    * Still untested financial flexibility and credit access as
the company is just emerging from a significant debt
restructuring; and
    * Regulatory framework that is still evolving and being
implemented, although the new regulatory framework has brought
more stability to the sector.

The following strengths partially mitigate these weaknesses:

    * Fairly strong and resilient cash flow generation, with
EBITDA margins in the area of 18% of revenues in the past four
years;
    * Lower exposure to currency mismatches, as only 17% of
restructured debt is denominated in foreign currency (most of it
is already hedged), even though 100% protected by hedging
instruments;
    * Scheduled debt amortization should be supported through
internal cash generation until 2006;
    * Favorable customer mix base, as 70% of revenues come from
residential and commercial consumers, which presents more stable
consumption; and
    * A 30-year monopoly to distribute electricity in the most
developed and densely populated region of Brazil, and its
adequate operating efficiency indicators measured by outage
duration (8.97 hours per customer per year) and outage frequency
(6.41 times per year).

At fiscal year-end 2004, Eletropaulo registered EBITDA of
BrR1.36 billion, an improvement of 18% over the previous year,
basically as a result of 15% revenue increase fueled by the
18.6% tariff increase during 2004. Internal cash generation
reached BrR792 million, up from the BrR475 million achieved in
2003. The strong improvement in FFO is a direct result of
increased EBITDA (BrR200 million higher), plus the reduction of
interest expenses charges reflecting the average lower interest
rates charged to Brazilian corporations. This performance
resulted in FFO to interest coverage to pick-up, hitting 3.26x
in 2004 (compared with 2.05x in 2003). And, although the FFO to
total debt also improved to 14.4% in 2004 from 9% in 2003),
Eletropaulo continues to present a leveraged capital structure
with ratios of total debt to total capitalization of 74.7% and
total debt to EBITDA of roughly 4.0x as of December 2004 (down
from 4.5x in December 2003), considering BrR1.8 billion of
recognized debt with the pension fund and not considering the
cash income from Reajuste Tarifário Extraordinário (RTE) in the
EBITDA calculation.

In 1998, Eletropaulo was granted a 30-year concession to
distribute energy in the metropolitan region of São Paulo.
Eletropaulo supplies electricity to more than 15 million people
spread out in 5.1 million consumption units, with a consumption
of 32,668 gigawatt hours in 2004. Together with AES Tietê and
AES Uruguaiana, Eletropaulo is part of the Brasiliana group
controlled by the nonoperating holding company, Brasiliana.
Brasiliana shareholders are BNDES (foreign currency BB-/Stable/-
-; local currency BB/Stable/--; 53.6% of total capital) and the
AES Corp. (B+/Positive/--; 46.4% of total capital). U.S.-based
AES manages the group.

Liquidity

Standard & Poor's considers Eletropaulo's liquidity and
financial flexibility still tight, as the company came out from
a wide debt renegotiation last year, and they are the key rating
factors for this company. Eletropaulo reported total debt of
BrR5.5 billion (including the BrR200 million hedge adjustment)
as of December 2004, including a total of BrR1.8 billion of the
pension fund liability (Fundação CESP). Short-term maturities
are BrR1.4 billion (also including pension fund short term
portion of BrR170 million plus BrR200 million of a negative
hedge position) and represent about 26% of the total debt,
compared with the historical level of short-term debt of more
than 50%. The company reduced foreign currency exposure to 17%
of the total debt compared with 40% in 2003, and has already
swapped 100% of the total to local currency until their
maturity.

Amortization requirements for 2005 should be resolved through
the receipt of BrR771 million from the BNDES capitalization
program, plus BrR243 million from the third tranche of the
rationing financing already received in January 2005. The
remaining portion is likely to be repaid using internal cash
generation, or by refinancing in the market. Eletropaulo filed
with the CVM (Brazilian Securities and Exchange Commission) a
debenture shelf registration program of BrR1.5 billion, of which
a portion should be issued during 2005 and would serve to
enhance the company's financial flexibility.

Forecasts for 2006 onward are more difficult to project, as
refinancing risk could increase again. In addition, from 2007
on, Brasiliana will start to amortize its debt with BNDES, which
will require Eletropaulo to increase the amount of dividends
upstream (together with AES Tietê and AES Uruguaiana).
Eletropaulo's capacity to raise new debt to fund cash gaps is
still to be tested, limiting financial flexibility and
constraining the rating, even considering that by 2007
Eletropaulo should post a leverage ratio lower than it is now.

Standard & Poor's views dividends sent to Brasiliana as a
mandatory requirement for Eletropaulo, mostly from 2007 on, due
to the contributions Eletropaulo will need to make to its
nonoperating holding company. Brasiliana holds in its books an
11-year, US$510 million debt with BNDES, which starts to mature
in 2007 and whose sole repayment source is cash from its
subsidiaries: Eletropaulo AES Tietê, and AES Uruguaiana.

Outlook

The stable outlook on Eletropaulo's ratings reflects Standard &
Poor's expectation that the company will continue to present
financial indicators that are in line with the rating category
(minimum EBITDA margin of 18%, minimum FFO to interest coverage
of 2.0x, FFO to total debt higher than 12%). The ratings also
include Standard & Poor's expectation that the company will
receive the resources from the BNDES capitalization program, and
also will not need to resort to external sources of funding to
resolve debt amortization requirements until 2006. Eletropaulo's
creditworthiness should improve as the company shows better
financial flexibility and market perception, accesses new
funding (banks or capital markets), and delivers more
sustainable cash flow protection ratios; which could ultimately
provoke an outlook change to positive or even an upgrade.
Conversely, the ratings would come under downward pressure if
Eletropaulo resorted to external sources of funding to refinance
debt until 2006, with the exception of transactions designed to
smooth out its debt amortization schedule and to reduce costs.
Also, the outlook could be revised to negative if Eletropaulo
fails to deliver the financial performance required for the
current rating.

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


LOCALIZA RENT: Posts Bigger Net Profit, Lower Debt in 1Q05
----------------------------------------------------------
Brazilian car rental company Localiza Rent a Car S.A. reported a
1Q05 net profit of BRL34.23 million, up from the 1Q04 net profit
of BRL23.738 million, relates Dow Jones. The Company, the
largest car rental company in Latin America, revealed net
revenues in the 1Q05 were BRL215.9 million, up from BRL146.7
million seen in the same period a year ago.

Net debt at the end of the 1Q05 stood at BRL250 million, lower
than the BRL293-million net debt at the end of 2004.

Standard and Poor's said Localiza is the leading car rental
company in Brazil and benefits from an efficient distribution
network with about 80 key locations in the country. A well-
balanced portfolio combining the daily car rental, fleet
management, and used car sales businesses has allowed the
company to report strong cash generation, even under fairly
stressful economic conditions.

S&P assigned BB- to Localiza's corporate credit rating.


PRIDE INTERNATIONAL: Fitch Ups Senior Unsecured Rating To 'BB-'
---------------------------------------------------------------
Fitch Ratings has upgraded Pride International's (Pride) senior
unsecured rating to 'BB-' from 'B+'. Additionally, the senior
secured credit facility rating has been upgraded to 'BB+' from
'BB'. The Rating Outlook has been revised to Positive from
Stable.

The ratings reflect the significant improvement in capital
structure that has taken place in the last two quarters.
Presently, Pride has less than $1.4 billion of debt,
approximately $600 million less than when Fitch last reviewed
the ratings. Furthermore, Pride management has suggested that it
will maintain a stronger balance sheet going forward.

Several factors contributed to the reduction in debt including
the exit of the Technical Services business, working capital
improvements, a better drilling environment in the latter half
of 2004, asset sales and a commitment from management. Pride
exited the Technical Services business in mid-2004 upon
completion of several new platform rig construction projects.
This segment was a drag on cash flow as it contributed
cumulative losses in excess of $125 million from 2003 through
2004.

Additionally, exiting the Technical Services segment improved
Pride's working capital situation. Working capital had been a
use of funds for several years due to excess receivables for the
Technical Services segment and from some international
customers. Those issues have been resolved and management
remains focused on further improving working capital.

Free cash flow also improved due to the strength of the contract
drilling market, particularly in the shallow water Gulf of
Mexico. For several years the shallow water Gulf of Mexico had
been weak despite strong commodity prices. That trend changed in
the second half of 2004 as utilization rates and dayrates for
Pride's fleet improved meaningfully. Utilization rates for
Pride's jackups in the Gulf of Mexico now exceed 90%, average
dayrates are near $40,000 and leading edge dayrates top $50,000
per day.

Pride also completed more than $110 million of asset sales in
the fourth quarter of 2004 and first quarter of 2005.
Furthermore, Pride announced it had entered into agreements to
sell two tender-assisted barge rigs and other assets, which the
company expects will generate about $50 million in proceeds.

The previously mentioned items all created discretionary cash
flow which was used to reduce debt as the company had promised
for some time. Furthermore, Pride recently announced that nearly
all notes outstanding under the company's 2.5% convertible
senior notes due 2007 had been tendered for conversion.
Approximately $298.6 million of tendered notes were converted
into approximately 18.1 million shares of common stock,
demonstrating management's commitment to delevering. Adjusting
for this transaction, debt is now less than $1.3 billion from
$1.7 billion at quarter end. Management's ability and
willingness to reduce debt were critical in the rating decision.

Pride's LTM EBITDA as of March 31, 2005, was approximately $500
million, providing adjusted interest coverage of greater than
3.0 times (x) and adjusted debt-to-EBITDA under 4.0x. Pro forma
for the recently converted notes, adjusted debt-to-EBITDA would
be close to 3.0x. At quarter's end, Pride had $55 million of
cash on hand, of which $10 million was restricted. The company
also had full availability of its $500 million revolving credit
facility.

While the Latin American Land business and E&P Services
operation have performed well for Pride, Fitch maintains its
cautious view of businesses operating in Argentina or Venezuela
due to the political uncertainty in each country. Fitch
currently has a sovereign rating of 'D' for Argentina and 'B+'
for Venezuela. Pride's Latin American Land and E&P Services
operations contributed 17% and 6%, respectively to the company's
LTM EBITDA.

The Positive Rating Outlook is based on Fitch's view of the
contract drilling industry in 2005 and 2006 and an expectation
that Pride management will continue delevering the company's
balance sheet so that its financial position is similar to its
peers.


VARIG: Shareholders Select New Board to Rescue Airline
------------------------------------------------------
Shareholders of Viacao Aerea Riograndense SA (Varig) have picked
a new board of directors that will steer the embattled airline
out of a possible liquidation, reports Bloomberg. The new board
will be led by David Zylbersztajn, former president of Brazil's
national petroleum agency.

The other new board members are Eleazar de Carvalho Filho,
former president BNDES Participacoes SA, the holding company
unit of Brazil's state development bank; Omar Carneiro da Cunha
Sobrinho, former president of the Brazil unit of AT&T Corp.;
Sergio Xavier Ferolla, a retired air force brigadier general and
former head of Brazil's top military court; Sergio de Almeida
Bruni, an economist; and Marcos Castrioto de Azambuja, a
Brazilian diplomat.

They join the only two remaining members of the board, Gesner de
Oliveira and Harro Fouquet.

Varig is struggling to fight off liquidation after it defaulted
on BRL5.76 billion ($2.34 billion) of debt and after it fell to
third in the Brazilian domestic air- travel market with 27.61%
of passengers carried from 30.63% a year earlier.

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



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

TRICOM: Strong Subscriber Growth Boosts Revenue in 1Q05
-------------------------------------------------------
Tricom, S.A. (OTC Bulletin Board: TRICY - News) announced Friday
consolidated unaudited financial and operational results for the
first quarter ended March 31, 2005. These results reflect
increased penetration in the Company's core domestic businesses,
as well as improved macroeconomic conditions in the Dominican
Republic characterized by the appreciation of the value of the
Dominican peso. The 2005 first quarter marks the Company's third
consecutive quarter of revenue growth, primarily driven by
increased revenues from its domestic telephony, mobile, cable
television and data and Internet access services.

"We are very pleased to report another quarter of double-digit
revenue growth driven by strong subscriber growth in our major
domestic businesses," said Carl Carlson, Chief Executive
Officer. "During the first quarter, we continued executing on
our disciplined, focused business plan. Going forward, we are
cautiously optimistic and expect continuing progress by making
targeted capital investments, while maintaining a rigorous
financial discipline with respect to operational decisions."

Results of Operations

Operating revenues grew 26.9 percent to $55.0 million for the
2005 first quarter, compared to the same period in the previous
year, driven primarily by the Company's domestic telephony,
mobile, cable and data & Internet services, offset by lower
international long distance revenues. Operating losses totaled
$1.9 million during the 2005 first quarter, compared to $9.3
million during the 2004 first quarter. The improvement in the
Company's operating performance during the 2005 first quarter is
attributable to improved margins driven by higher operating
revenues. Net loss totaled $19.2 million, or $0.30 per share for
the 2005 first quarter, compared to a net loss of $23.3 million,
or $0.36 per share during the 2004 first quarter.

First quarter long distance revenues decreased by 13.7 percent
to $18.6 million from the year-ago period, primarily due to
lower international long distance traffic, derived from the
Company's U.S.-based wholesale and retail operations, together
with lower average termination rates to the Dominican Republic.
On a sequential basis, however, first quarter long distance
revenues increased by 8.2 percent from long distance revenues in
the 2004 fourth quarter driven by a higher volume of long
distance minutes.

Domestic telephony revenues increased by 75.4 percent to $20.6
million in the 2005 first quarter, primarily due to a higher
average number of lines in service and average revenues per
subscriber, together with the positive impact of currency
appreciation. At March 31, 2005, the Company had approximately
156,000 lines in service, representing a 6.5 percent increase
from lines in service at March 31, 2004.

Mobile revenues increased by 45.5 percent to $9.2 million in the
2005 first quarter, driven primarily by higher mobile subscriber
additions and airtime minutes coupled with the increase in the
average value of the Dominican peso during the first quarter.
Mobile subscribers at March 31, 2005, totaled approximately
320,000, representing a 15.6 percent increase from mobile
subscribers at March 31, 2004. During the 2005 first quarter,
the Company identified and voluntarily disconnected
approximately 28,000 mobile subscribers that had not utilized
the Company's services for an extended period of time.

Cable revenues increased by 79.4 percent to $4.7 million for the
2005 first quarter, primarily due to currency appreciation, a
higher average cable subscriber base, as well as higher monthly
cable service fees. At March 31, 2005, cable subscribers totaled
approximately 60,500, a 1.6 percent increase from the number of
cable subscribers at March 31, 2004.

Data and Internet revenues increased by 73.1 percent to $1.9
million for the 2005 first quarter, mainly due to the growth of
the Company's data and Internet subscriber base, as well as the
positive impact of currency appreciation during the first
quarter. At March 31, 2005, data and Internet access accounts
totaled approximately 15,300, representing a 6.6 percent
increase from the number of data and Internet subscribers at
March 31, 2004.

Consolidated operating costs and expenses increased by 8.0
percent to $56.9 million in the 2005 first quarter, primarily
driven by higher selling, general and administrative expenses
(SG&A) and increased costs of sales and services. These
increases were partly offset by lower non-cash depreciation and
amortization charges.

SG&A expenses increased by 38.3 percent to $17.8 million in the
2005 first quarter, primarily as a result of higher salaries and
other employee compensations, energy and occupancy costs, as
well as marketing and promotional expenses. The increases in
SG&A expenses were largely due to the impact of currency
appreciation over peso-denominated expenses. Cost of sales and
services increased 4.4 percent to $21.9 million during the 2005
first quarter due to higher dollar-denominated transport and
access charges, offset in part by a lower cost of equipment
sold. Due to a lower average depreciable asset base, the
Company's depreciation and amortization charges decreased by 4.6
percent to $16.0 million during the 2005 first quarter.

Interest expense totaled approximately $16.5 million in the 2005
first quarter, compared to $15.4 million in the 2004 first
quarter. Beginning in October 2003, the Company suspended
principal and interest payments on its unsecured debt
obligations and principal payments on its secured indebtedness.
During the 2005 first quarter, the Company recorded
approximately $1.0 million in foreign currency exchange losses
attributed to the impact of the rise of average value of the
Dominican peso on the Company's peso-denominated liabilities.

Liquidity and Capital Resources

Total debt amounted to $448.0 million at March 31, 2005,
compared to $448.3 million at December 31, 2004. Total debt
included $200 million principal amount of 11-3/8 percent Senior
Notes, approximately $34.0 million of secured debt and
approximately $214.0 million of unsecured bank and other debt.

At March 31, 2005, the Company had approximately $24.0 million
of cash on hand, compared to $17.7 million at hand at December
31, 2004, and $7.4 million at hand at March 31, 2004. The
increase in cash resulted from higher cash provided by the
Company's operating activities. During the 2005 first quarter,
the Company's net cash provided by operating activities totaled
$9.3 million, compared to net cash provided by operating
activities of $5.6 million during the 2004 first quarter.

Capital expenditures totaled $1.5 million during the 2005 first
quarter, compared to $766,000 during the 2004 first quarter. The
Company's capital expenditures during the 2005 first quarter
were made primarily for the installation of additional lines,
mobile network enhancements and other network improvements.

Financial Restructuring Update

Since October 2003, the Company has suspended principal and
interest payments on its outstanding unsecured indebtedness and
principal payments on its secured indebtedness. As a result, the
Company is in default with respect to its outstanding
indebtedness, approximately $400 million principal amount as of
December 31, 2004.

As previously announced, the Company continues to engage in
discussions with the holders of its indebtedness, which includes
an ad hoc committee of holders of its 11-3/8 percent Senior
Notes due 2004, regarding an agreement on a consensual financial
restructuring of its balance sheet. The Company's future results
and its ability to continue operations will depend on the
successful conclusion of the restructuring of its indebtedness.

Since these negotiations are ongoing, the value and treatment of
the Company's existing secured and unsecured obligations, as
well as that of the interest of its existing shareholders, is
uncertain at this time. Even if a restructuring can be
completed, the value of the Company's existing debt securities
and instruments is expected to be substantially less than the
current recorded face amount of such obligations, and investors
in the Company's equity interests, including the American
Depository Shares, are expected to receive little or no value
with respect to their investment.

About Tricom

Tricom, S.A. is a full-service communications services provider
in the Dominican Republic. It offers local, long distance,
mobile, cable television and broadband data transmission and
Internet services. Through Tricom USA, it is one of the few
Latin American-based long distance carriers that are licensed by
the U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through its
subsidiary, TCN Dominicana, S.A., it is the largest cable
television operator in the Dominican Republic based on its
number of subscribers and homes passed.

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

CONTACT:  Miguel Guerrero, Investor Relations
          Ph +1-809-476-4044, or +1-809-476-4012
          E-mail: investor.relations@tricom.net
          URL: http://www.tricom.net



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

GRUPO IUSACELL: Reiterates Commitment to Continue Debt Talks
------------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (NYSE: CEL) (BMV: CEL) announces
that receipt of a notice from the Trustee Agent of the Bond due
in 2006 does not affect discussions nor does it alter the debt
restructuring process. The Company reiterates its commitment to
continue negotiations with creditors to try to reach a
comprehensive restructuring agreement as soon as possible.

Grupo Iusacell 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.

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:
          Jose Luis Riera K.
          Chief Financial Officer
          +011-5525-5109-5927

          J. Victor Ferrer
          Financial Manager
          +011-5525-5109-5273
          vferrer@iusacell.com.mx


HYLSAMEX: Shareholders Grant Alfa More Time to Examine Options
--------------------------------------------------------------
Conglomerate Alfa SA has until the end of the year to complete a
sale or spinoff of steel unit Hylsamex SA, reports Dow Jones
Newswires. Shareholders granted the Company more time to
consider proposals by Mexican and foreign steel companies
interested in buying the unit.

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

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

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

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


TV AZTECA: Azteca America Achieves National Coverage
----------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish language
television programming in the world, announced Thursday that
Azteca America, the company's wholly-owned broadcasting network
focused on the U.S. Hispanic market, has reached national
network coverage.

"We are thrilled to be able to present additional details of our
coverage advances to leading advertisers during our Upfront
presentation on May 16 in New York City," said Luis J. Echarte,
President and CEO of Azteca America. "Our expanded cable and
satellite footprint -- including recent affiliates carriage
agreements with Comcast, Time Warner, Charter and Cox, as well
as Dish and DirecTV -- is combined with exciting programming
news, which will bring unparalleled advertising opportunities to
current and potential national clients. Our commitment to our
viewers as well as clients is for dynamic, long-term growth."

TV Azteca noted it is committed to present the most sought after
Spanish-language content to US Hispanic audiences, and to offer
advertisers top quality viewerships to optimize their marketing
efforts.

"We are now strongly positioned to tap the US Hispanic market on
a large scale," said Mario San Roman, Chief Executive Officer of
TV Azteca. "There is a major opportunity to expand our business
within a market almost the size of Mexico's broadcast television
industry, with double-digit annual growth."

"We are firmly focused on our goal to achieve over 15% share of
the US Hispanic market in the medium term, and to generate solid
profitability levels in the near future," added Mr. San Roman.

Azteca America is the fastest-growing Hispanic network in the
United States and a fully owned subsidiary of TV Azteca, S.A. de
C.V. TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates also include Todito.com, an
Internet portal for North American Spanish speakers.

CONTACT:  TV Azteca, S.A. de C.V.
          Investor Relations:
          Bruno Rangel
          Tel: +5255-1720-9167
          E-mail: jrangelk@tvazteca.com.mx

          Media Relations:
          Daniel McCosh
          Tel: +5255-1720-0059
          E-mail: dmccosh@aztecaamerica.com



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

BANCO WIESE: Several Firms Express Acquisition Interest
-------------------------------------------------------
Peru's Finance Minister Pedro Pablo Kuczynski revealed Thursday
various companies are looking into the possibility of buying a
controlling share in Banco Wiese Sudameris, reports Dow Jones
Newswires.

"I understand that there are various (interested parties). But
who decides who is the buyer is the seller," Mr. Kuczynski was
quoted as saying.

Italy's Banca Intesa SpA, which has a controlling share in Banco
Wiese, has said in the past that selling the bank was an option.
Prior to Banca Intesa's acquisition of Banco Wiese, the latter
had been experiencing severe liquidity problems since the second
half of 1998.

Reports suggest that the government may also have to pay US$314
million next year as part of a financial aid package offered in
the late 1990s to help save the bank.

Banco Wiese Sudameris was the first Peruvian bank to list on the
New York Stock Exchange, although it has since has delisted its
American Depositary Receipt.



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

DORAL FINANCIAL: Faces Another Securities Class Action Lawsuit
--------------------------------------------------------------
Abraham Fruchter & Twersky LLP announced Thursday that a class
action has been commenced in the United States District Court
for the Southern District of New York on behalf of purchasers of
Doral Financial Corp. ("Doral") (NYSE: DRL) publicly traded
securities during the period between October 10, 2002 and April
19, 2005 (the "Class Period").

The complaint charges Doral and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Doral is a diversified financial services company engaged
in mortgage banking, commercial banking, institutional broker-
dealer activities and insurance agency activities.

The complaint alleges that during the Class Period, defendants
made materially false and misleading statements regarding the
Company's business and prospects. On January 19, 2005, the
company reported fourth quarter earnings and for the first time
warned of potential trouble with its hedging strategy against
interest rate changes through its use of a derivative portfolio
of interest-only strips ("IO Strips"). Doral was forced to
record a $97.5 million pretax impairment charge on its
derivative portfolio of IO Strips. On March 15, 2005, Doral
filed its Annual Report on Form 10-K with the Securities and
Exchange Commission ("SEC"). In its 2004 Annual Report the
Company disclosed for the first time its use of overly
aggressive assumptions in valuing its derivatives portfolio of
IO Strips. In a matter of days Doral stock plummeted from $38.29
per share to $21.50 per share in extremely heavy volume of more
than ten times the daily average.

Then on April 19, 2005, the Company announced that "after
consulting with various financial institutions and other firms
with experience in valuation issues, the Company has determined
that it is appropriate to correct the methodology used to
calculate the fair value of its portfolio of floating rate
interest only strips ("IOs"). The Company's preliminary estimate
is that this correction will result in a decrease in the fair
value of its floating rate IOs of between $400 million to $600
million as of December 31, 2004."

According to the complaint, the true facts, which were known by
each of the defendants but concealed from the investing public
during the Class Period, were as follows: (a) the Company was
using overly aggressive and unrealistic assumptions to value its
derivative portfolio of IO Strips used to hedge its mortgage
portfolio against interest rate fluctuations; (b) the Company
was using fraudulent accounting practices and materially
overstated its net income, net gain on mortgage loan sales and
net capital; and (c) the Company was using ineffective risk
management and hedging strategies against the increasing risk of
rising interest rates. As a result of these false statements,
Doral's stock price traded at inflated levels during the Class
Period, increasing to as high as $49.45 per share on January 18,
2005. The Company sold $740 million worth of notes and $345
million worth of preferred stock during the Class Period.
However, after the truth was revealed in Doral's press release
on April 19, 2005, the Company's shares fell to below $16 per
share.

Plaintiff seeks to recover damages on behalf of all purchasers
of Doral publicly traded securities during the Class Period (the
"Class"). The plaintiff is represented by Abraham Fruchter &
Twersky LLP which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial
fraud.

If you wish to serve as lead plaintiff, you must meet certain
legal requirements set forth in the applicable law and file
appropriate papers with the Court no later than 60 days from
April 21, 2005. You do not need to seek appointment as a lead
plaintiff in order to share in any recovery. Under certain
circumstances, one or more Class members may together serve as
lead plaintiff. You may retain Abraham, Fruchter & Twersky, LLP,
or other counsel of your choice, to serve as your counsel in
this action or you may choose to do nothing and remain an absent
class member.

If you have any questions concerning this case or your rights or
interests with respect to this matter, please contact
plaintiff's counsel:

          ABRAHAM FRUCHTER & TWERSKY, LLP
          Jack G. Fruchter, Esq.
          (212) 279-5050
          (800) 440-8986
          Facsimile (212) 279-3655
          jfruchter@aftlaw.com

          ABRAHAM FRUCHTER & TWERSKY, LLP
          Ximena Skovron, Esq.
          (212) 279-5050
          (800) 440-8986
          Facsimile (212) 279-3655
          xskovron@aftlaw.com



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

ANCAP: Resolves ARS74M Debt With Argentine Tax Agency
-----------------------------------------------------
Uruguayan President Tabare Vazquez announced late Thursday that
Argentina's tax agency AFIP has forgiven Uruguayan state-owned
oil company ANCAP's ARS74-million debt. President Vazquez,
according to Dow Jones Newswires, made the announcement
following a meeting with his Argentine counterpart, Nestor
Kirchner.

The debt with AFIP was incurred by ANCAP's money-losing
Argentine subsidiary, Petrolera del Conosur, which operates 172
service stations under the Sol Petroleo brand. ANCAP is
preparing to sell the unit, which registered net losses of
ARS78.8 million (US$27 million) in 2004 because it pays more for
fuel than it receives at the pump.

Interested buyers include Brazilian state-owned oil company
Petrobras (PBR); Venezuelan state-owned Petroleos de Venezuela,
or PdVSA (PVZ.YY); and Argentina's new state-run energy company,
Enarsa.



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

EDC: Posts Lower Net Losses in 1Q05, EBITDA Still Falls
-------------------------------------------------------
Power company L.A. Electricidad de Caracas (EDC), a local unit
of US company AES Corp (NYSE: AES), minimized net losses in the
1Q05 following a cost reduction program, as well as a lower
devaluation of the bolivar in the 1Q05 compared to 1Q04.

Business News Americas reports that the Company reported a 25.5%
decline in net loss to VEB68.4 billion (US$31.9 million) in the
1Q05, compared to the VEB91.8-billion loss in the same period a
year ago.

Operating revenue in the recent quarter was down 5.7% to VEB291
billion from VEB308 billion in 1Q04 due to an adjustment for
inflation and lower sales in the national SIN grid.

Lower sales were partly compensated by a 4.3% increase in demand
in the areas served by EDC and lower energy losses.

Operating expenses dropped to VEB161 billion in the first
quarter, down slightly from VEB162 billion, due to lower fuel
oil no. 6 purchase costs as the result of a power purchase
agreement with Edelca.

EBITDA fell to VEB130 billion in 1Q05 from VEB147 billion year-
on-year, for reasons mentioned above.

At March 31, 2005, financial debt stood at US$610 million, lower
than the US$780 million recorded in March 2004.

CONTACT: C.A. La Electricidad de Caracas
         Avenida Vollmer
         Caracas, Venezuela

         Scarlett Alvarez
         Directora: Relaciones con Inversionistas
         Tel: 0212 502-2950
         E-mail: edcinversionistas@aes.com



                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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