TCRLA_Public/050526.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Thursday, May 26, 2005, Vol. 6, Issue 103



ANTOVALLE S.A.: Proceeds With Liquidation
AUTOPISTAS DEL SOL: S&P Retains 'argB+' Ratings on Several Bonds
BERSA: Auction Postponed at Bidder's Request
CEMENTERIO PARQUE: Seeks Court Approval For Reorganization
CLAXSON INTERACTIVE: Revenues Up on Improved Pay TV Performance

EDENOR: EdF-Dolphin Talks in "Due Diligence" Stage
IMPSAT FIBER: Deploys Nortel Next Generation Optical Technology
KILDER S.A.: Initiates Bankruptcy Process on Court Order
METROGAS: Bonds Remain at Default Level - S&P
RAT PACK: Judge Approves Bankruptcy

RAHGSA: S&P Retains Speculative Rating on Bonds
TELEFONICA DE ARGENTINA: Details Program for Issue of ONs
TONIC S.A.: Court OKs Creditor's Involuntary Bankruptcy Motion
URIBURU SANGUINETTI: Court Declares Company Bankrupt
* ARGENTINA: Proceeds With Bond Swap After Judge Lifts Embargo


GLOBAL CROSSING: Strikes New Agreement With Loral Skynet


BANCO SCHAHIN: S&P Assigns `B' to $10M Senior Unsecured Notes
BRASKEM: Unit Sells $150M, 10-Yr Notes
COPEL: Issues Portion of Recent Board Meeting Minutes
EMBRATEL: Preparing to Acquire Telmex's Stake in Net Servicos
EMBRATEL: Board Ratifies Capital Increase

LIGHT SERVICOS: Parent Mulls Gradual Pullout Says Newspaper
TCP: Kicks Off 10-Year, BRL1 Bln Debenture Issue
UNIBANCO: Chagas Replaces Rosenhek as IR Associate Director
VARIG: TAP Looks to Take On Part of Debt


SR TELECOM: Finalizes Agreements With Debenture Holders

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Moody's Changes Rating Outlook to Stable


TV AZTECA: US Court Grants Extension to Hear Arguments
UNEFON: Ends 16-Year Spectrum Leasing Contract With Telcel


PDVSA: Presents True Facts About Oil Production, Exports
PDVSA: Adds 842 Workers to Permanent Payroll in Zulia
SIDOR: Minister Vows to Protect Minority Shareholders' Rights
SIDOR: To Spend $28M on Two Gas Separation Plants

     -  -  -  -  -  -  -  -


ANTOVALLE S.A.: Proceeds With Liquidation
Mr. Caesar Noble Lazcano successfully sought the bankruptcy of
Antovalle S.A. after Court No. 22 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra," reports La

As such, Antovalle S.A. will now embark on the process with Ms.
Alicia Gadara as trustee. Creditors must submit proofs of their
claim to the trustee for authentication. Failure to comply with
this requirement will mean a disqualification from the payments
that will be made after the Company's assets are liquidated.

The creditor sought the Company's liquidation after the latter
failed to pay its debts.

The city's Clerk No. 43 assists the court on the case that will
close with the sale of all of its assets.

CONTACT: Antovalle SA
         Florida 719
         Buenos Aires

         Ms. Alicia Gadara, Trustee
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires

AUTOPISTAS DEL SOL: S&P Retains 'argB+' Ratings on Several Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned an 'argB+' rating for the following corporate bonds
issued by Autopistas del Sol S.A.:

- US$112,334,466 worth of bonds described as "Obligaciones Neg.
original" with undated maturity.

- US$49,306,639 worth of bonds described as "Obligaciones Neg.
original" with undated maturity.

-  US$215,225,419 worth of bonds described as "ONS a tasa de
interes escalonada creciente a 10 anos de vencimiento, monto
original" with undated maturity.

The ratings, posted by securities regulator Comision Nacional de
Valores(CNV) in its web site, were based on the Company's
financial standing as of March 31, 2005.

S&P explains that bonds with 'argB+' ratings face exposure to
adverse business or economic conditions that could lead to an
issuer's inadequate capacity to meet its obligations.

BERSA: Auction Postponed at Bidder's Request
Banco Nacion has postponed the auction for Banco de Entre Rios
(BERSA) from May 24 to June 8 at the behest of an unidentified
bidder, Business News Americas reports, citing a spokesperson
from the federal bank.

"We hope this new date will be the definitive one", the
spokesperson said.

Seven Argentine banks have purchased bidding rules for the BERSA
auction: Galicia, Macro Bansud, Comafi, Hipotecario, Credicoop,
Santiago del Estero and Nuevo Banco de Santa Fe.

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.

CEMENTERIO PARQUE: Seeks Court Approval For Reorganization
Cementerio Parque Jardin del Oeste S.A. filed a "Concurso
Preventivo" motion, Infobae reports. The Company is seeking to
reorganize its finances following cessation of debt payments.
The Company's case is pending before Court No. 16 of Buenos
Aires' civil and commercial tribunal. Clerk No. 31 assists the
court on this case.

CONTACT: Cementerio Parque Jardin del Oeste S.A.
         Malabia 1094
         Buenos Aires

CLAXSON INTERACTIVE: Revenues Up on Improved Pay TV Performance
Claxson Interactive Group Inc. (OTCBB:XSONF) ("Claxson" or the
"Company"), announced Tuesday results for the three-month period
that ended on March 31, 2005. As previously announced, the
Company finalized the sale of its TV Broadcast operation
Chilevision on April 18. In addition, on May 6, Claxson
completed the sale of the language localization operations of
The Kitchen. In accordance with applicable accounting
principles, the assets, liabilities and operations of
Chilevision and the language localization operations of The
Kitchen are reflected as assets and liabilities held for sale in
the balance sheet and as discontinued operations in the
statement of operations of the Company.

Financial Highlights

Net revenue for the first quarter of 2005 was $17.8 million, an
18% increase from net revenue of $15.1 million for the first
quarter of 2004, reflecting the improved performance of Pay TV
and Broadcast Radio. Operating expense for the three months
ended March 31, 2005 was $14.9 million, compared to $14.7
million in the first quarter of 2004. Operating income for the
three-month period ended March 31, 2005 was $2.9 million,
compared to $0.4 million for the three-month period ended March
31, 2004. Foreign exchange gain for the three-month period ended
March 31, 2005 was $0.6 million compared to a $1.0 million in
the same period of 2004. Net income for the three months ended
March 31, 2005 was $1.4 million ($0.11 per basic and $0.10 per
diluted share), compared to $0.2 million ($0.06 per basic and
diluted shares) for the same period in 2004.

During the first quarter of 2005, the average exchange rate of
the Argentine and Chilean currencies compared to the U.S. dollar
remained virtually unchanged and appreciated 2% respectively,
versus the same period in 2004.

"During these first months of 2005 we took some key actions to
increase our focus on Pay TV, our core business. We successfully
completed the sale of Chilevision, as well as the sale of the
language localization operations of The Kitchen," said Roberto
Vivo, Chairman and CEO. "We are pleased with the performance of
all our business units and will be evaluating new business
opportunities to invest the funds obtained from the divested

Pay TV

Net revenue for the first quarter of 2005 was $12.3 million, a
13% increase from net revenue of $10.8 million for the first
quarter of 2004. The increase in net revenue is principally
attributable to increased distribution.

Operating expense (excluding depreciation and amortization) for
the first quarter of 2005 was $9.2 million, virtually unchanged
from the comparable period of 2004.

Operating income for the first quarter of 2005 was $2.6 million
compared to $0.8 million for the same period in 2004.

As of March 31, 2005, the Company's owned basic and premium
channels reached approximately 43.3 million aggregate
subscribers, a 12% growth compared to its subscriber base as of
March 31, 2004. Playboy TV and Fashion TV were the Company's
channels that reported the strongest growth.

Broadcast Radio

Net revenue for the first quarter of 2005 was $5.4 million, a
27% increase from net revenue of $4.2 million for the first
quarter of 2004. The increase is attributable to the increase in
audience share in Chile, and revenues generated from new
businesses (such as sale of CD's and concerts), as well as the
2% appreciation in the Chilean peso as compared to 2004.

Operating expense (excluding depreciation and amortization) for
the first quarter of 2005 was $3.4 million compared to $2.7
million for the same period in 2004. The increase is principally
due to the development of the new businesses and increased sales
and marketing expenses.

Operating income for the first quarter of 2005 was $1.5 million
compared to $1.1 million for the same period in 2004.

IberoAmerican Radio Chile's average audience share in the first
quarter of 2005 was 39.3% compared to 34.7% for the same period
of 2004.

Broadband & Internet

Net revenue for the first quarter of 2005 was $29,000 compared
to $26,000 for the same period in 2004.

Operating expense (excluding depreciation and amortization) for
the first quarter of 2005 was $0.2 million compared to $0.3
million for the same period in 2004.

Operating loss for the first quarter of 2005 was $0.2 million,
unchanged when compared to the same period in 2004.

To capitalize on the success of digital platform in Argentina
and Brazil, the Broadband & Internet Division signed an
agreement with Constancio Larguia, a well known Internet
entrepreneur, to launch a web page ( on wellness
subjects in the US market. ESDC Digital Platform provides the
technology solution for, and Infinito provides
English content to be offered as Video On Demand. is
ESDC Digital Platform's first client in the US market.

Statement of Cash Flows

At March 31, 2005, Claxson had cash and cash equivalents of $7.7
million and $83.1 million in debt, which includes $14.8 million
in future interest payments on the 8.75% Senior Notes due in
2010. During the first quarter of 2005 Claxson operating
activities generated cash flow of $2.4 million compared to $2.6
million for the same period of 2004. Although the year-to-year
variance is $0.2 million, in 2005 the cash generation was
primarily attributable to operations while in 2004 it was
primarily attributable to working capital management. Cash
generated from operating activities was primarily used for the
payment of debt obligations and for capital expenditures. In
addition, Claxson obtained $0.6 million from the sale of assets,
resulting in a net cash generation of $0.4 million for the first
quarter of 2005.

Claxson (OTCBB:XSONF) is a multimedia Company providing branded
entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple
platforms through its assets in pay television, radio and the
Internet. Headquartered in Buenos Aires, Argentina, and Miami,
Florida, Claxson has a presence in the United States and all key
Ibero-American countries, including without limitation,
Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson's
principal shareholders are the Cisneros Group of Companies and
funds affiliated with Hicks, Muse, Tate & Furst Inc.

To see financial statements:

CONTACT:   Claxson Interactive Group Inc.
           Juan Iramain
           Phone: 011-5411-4339-3701

           Jose Antonio Ituarte
           Phone: 011-5411-4339-3700

EDENOR: EdF-Dolphin Talks in "Due Diligence" Stage
Negotiations between French Company Electricite de France (EdF)
and Argentina's Dolphin Fund Management over the sale of a
majority stake in Buenos Aires distributor Edenor are in a
period of "due diligence," Dolphin president Marcelo Mindlin
said in a radio interview.

The maximum time to reach an agreement is 30-60 days, Mindlin
said, adding the deal is "far from closed."

According to an Infobae report, Investment bank JP Morgan
received offers last week for part of EdF's 90% stake in Edenor,
but offers from various other pension funds were rejected.

Mindlin noted that EDF is "not a Company running away" and that
it will retain a minority stake in Edenor in partnership with
the local operator.

Dolphin has an active interest in acquiring local energy assets.
Last year, the fund bought a stake in Argentine power
transporter Transener's (TRAN.BA) holding Company from National
Grid (NGG).

EdF controls Edenor through its direct holding, Electricidad
Argentina SA, which holds a 51% stake in the distributor. EdF
owns a further 39% stake in Edenor.

          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mail: to
          Web Site:

IMPSAT FIBER: Deploys Nortel Next Generation Optical Technology
Impsat Fiber Networks, Inc., a leading provider of private
telecommunications network, data center and Internet services in
Latin America, is enhancing its Latin American backbone
infrastructure using next generation optical technology from
Nortel (NYSE:NT)(TSX:NT).

Nortel is currently implementing its Optical Multiservice Edge
(OME) 6500, a next generation optical convergence platform, to
transform Impsat's SONET/SDH network into a high-speed packet
optical infrastructure through a smooth and scalable evolution
path. The deployment is expected to be completed by the end of
the second quarter of 2005.

"Nortel has helped us build our terrestrial network and
infrastructure in Latin America," said Matias Heinrich,
executive vice president of networks, Impsat. "We needed a cost-
efficient solution that would support our 'IP Anywhere'
strategy, which includes high-speed connectivity of 10/100/1000
Ethernet services. Nortel's OME 6500 fits very well within this

"We continue our commitment to building and advancing telecom
infrastructures that boost the competitive edge of regional
businesses, powering commerce and ultimately enhancing the human
experience in the region," said Andrea Cavallari, managing
director of Nortel in the Southern Cone. "Nortel's industry
leading optical convergence platform will help Impsat protect
its key revenue source of existing telecom services while
rolling out new ones on a converged network that can be scaled
as needed to accommodate customer growth as well as future
advanced voice and data services."

Nortel has been working with Impsat since 1999, providing
advanced solutions to help build and expand the terrestrial
portions of the carrier's pan-Latin American high-performance
optical network.

Nortel Optical Multiservice Edge 6500 is a next generation
optical convergence platform that blends multiple services and
network layers (Layer 0, 1, 2) onto a single platform for
significant capital and operating expense reduction, dramatic
network simplification and cost-effective support of broadband
services. OME 6500 has been deployed in more than 30 networks
around the world, including Telesur, Internet2, Jiangxi Power
and SURFnet.

Deployed in more than 1,000 customer networks in 65 countries,
Nortel's end-to-end optical networking portfolio includes next
generation SONET/SDH, optical switching, wave division
multiplexing and Optical Ethernet products. Nortel has deployed
more than 290,000 optical network elements globally. Nortel was
the market share leader in DWDM transport for the fifth year in
a row as of year end 2004, according to the Dell'Oro Group.

About Impsat

Impsat Fiber Networks is a leading regional provider of private
telecommunications network, data center and Internet services in
Latin America. The Company offers integrated data, voice, and
Internet solutions, with an emphasis on broadband transmission,
for national and multinational companies, financial
institutions, governmental agencies and other business
customers. It has operations in Argentina, Colombia, Brazil,
Venezuela, Ecuador, Chile, Peru and the United States and also
provides services in other countries in Latin America. It
operates 15 metropolitan area networks in some of the largest
cities in Latin America, including Buenos Aires, Bogota, Caracas
and Sao Paulo. The Company owns an extensive pan-Latin American
broadband network combining fiber optic and satellite

About Nortel

Nortel is a recognized leader in delivering communications
capabilities that enhance the human experience, ignite and power
global commerce, and secure and protect the world's most
critical information. Serving both service provider and
enterprise customers, Nortel delivers innovative technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries.

         Juan Carlos Perelli
         Tel: +5411-4827-7278
         Ferngene Kook
         Tel: 954-858-7101

KILDER S.A.: Initiates Bankruptcy Process on Court Order
Kilder S.A., which is domiciled in Buenos Aires, entered
bankruptcy as the city's Court No.6 ruled that it is "Quiebra."
Infobae reveals that the city's Clerk No. 11 aids the court on
the process.

The court appointed Juan Marcelo Villoldo to act as trustee.
Creditors must submit their proofs of claim to the Mr. Villoldo
for verification before June 21, 2005. The trustee is also
required to prepare the individual and general reports on the
bankruptcy process.

CONTACT: Mr. Juan Marcelo Villoldo, Trustee
         Uruguay 651
         Buenos Aires

METROGAS: Bonds Remain at Default Level - S&P
The Argentine arm of Standard & Poor's International Ratings,
Ltd. affirmed the 'raD' rating given to various corporate bonds
issued by Metrogas S.A., according to the CVN. The rating
affects the following bonds that are classified under Series
and/or Class:

- US$130 million worth of "Serie C por U$S 130.000.000 dentro
del Programa Global de U$S 600 millones" which matured on May 7,

- US$110 million worth of "Serie B por euros 110 millones" which
matured on Sep. 27, 2002.

- US$100 million worth of "Serie A por U$S 100.000.000 dentro
del Programa Global de U$S 600 millones" which matured on April
1, 2003.

The rating also affects corporate bonds worth US$600 million,
which are classified under Program. The maturity date of this
particular bond issuance was not disclosed.

The rating assigned to all the bonds were based on Metrogas'
financial status as of March 31, 2005.

          Gregorio Araoz de Lamadrid 1360
          Buenos Aires
          CPA C 1267
          Phone: +54 11 4309 1010
          Fax:  +54 11 4309 1025
          Web site:

RAT PACK: Judge Approves Bankruptcy
Rat Pack SRL was declared bankrupt after Court No. 1 of Buenos
Aires' civil and commercial tribunal endorsed the petition of
Sabiworld LTD for the Company's liquidation. Argentine daily La
Nacion reports that Sabiworld LTD has claims totaling $16,800
against Rat Pack SRL.

The court assigned Ulderico Laudren to supervise the liquidation
process as trustee. Mr. Laudren will validate creditors' proofs
of claim until Aug. 3, 2005.

The city's Clerk No. 2 assists the court on the case.

         11 de Septiembre 4837
         Buenos Aires

         Mr. Ulderico Laudren, Trustee
         Liberty 293
         Buenos Aires

RAHGSA: S&P Retains Speculative Rating on Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained the 'raB+' rating on US$33 million worth of bonds
issued by local Company Raghsa S.A., says the country's
securities regulator CNV. The Company's finances as of February
28, 2005 determined the rating agency's action.

The rating denotes that the bonds face exposure to adverse
business or economic conditions, which could lead to the
Company's inadequate capacity to meet its financial commitment,
said the ratings agency.

The CNV described the affected bonds as "Obligaciones
Negociables", under "Simple Issue". These come due on February
28, 2012.

TELEFONICA DE ARGENTINA: Details Program for Issue of ONs

1) Offering Circular dated April 23, 2004, regarding Telefonica
de Argentina S.A.'s Program for the issue of non-convertible
negotiable obligations for a maximum principal amount not to
exceed pesos 1,500,000,000 (or its equivalent in other
currencies). (To see Offering Circular:

2) Pricing Supplement dated May 14, 2004, to the Offering
Circular of the Program dated April 23, 2004, regarding Class
LESEP Series May-2005 ( Letras del Sector Privado ) for a
principal amount of AR$163,264,000. (To see Pricing Supplement:

3) Pricing Supplement dated October 8, 2004, to the Offering
Circular of the Program dated April 23, 2004 and to the update
thereof, dated June 22, 2004, regarding Class 2 Notes for an
aggregate global principal amount of AR$ 150,000,000 to be
issued in one or two Series.  (To see Pricing Supplement:

4) Pricing Supplement dated January 13, 2005, to the Offering
Circular of the Program dated April 23, 2004 and to the update
thereof, dated January 5, 2005, regarding Class 3 Notes for an
aggregate global principal amount of AR$ 150,000,000 to be
issued in one or two Series. (To see Pricing Supplement:

CONTACT: Telefonica de Argentina S.A.
         Avenida Ingeniero Huergo 723
         Buenos Aires, Argentina
         Phone: 5411 4332-2066
         Web site:

TONIC S.A.: Court OKs Creditor's Involuntary Bankruptcy Motion
Court No. 15 of Buenos Aires' civil and commercial tribunal
declared Tonic S.A. bankrupt, says La Nacion. The ruling comes
in approval of the petition filed by the Company's creditor,
Carrefour Argentina S.A., for nonpayment of US$49,853.77 in

Hector Grisolia, who was named trustee by the court, will
examine and authenticate creditors' claims until Aug. 4, 2005.
This is done to determine the nature and amount of the Company's
debts. Creditors must have their claims authenticated by the
trustee by the said date in order to qualify for the payments
that will be made after the Company's assets are liquidated.

Clerk No. 29 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

         Avenida Callao 420
         Buenos Aires

         Mr. Hector Grisolia, Trustee
         Salguero 2535
         Buenos Aires

URIBURU SANGUINETTI: Court Declares Company Bankrupt
Court No. 7 of Buenos Aires' civil and commercial tribunal,
assisted by Clerk No. 13, declared local Company Uriburu
Sanguinetti Ingenieria Construcciones S.R.L. bankrupt, reports
Infobae. The Company was undergoing reorganization when the
ruling was issued.

The court-appointed trustee, Alberto Eduardo Scravaglieri, will
verify claims "por via incidental", as the court ordered. The
trustee will also be responsible for the individual and general

CONTACT: Alberto Eduardo Scravaglieri, Trustee
         Avda Roque Saenz Pena 651
         Buenos Aires

* ARGENTINA: Proceeds With Bond Swap After Judge Lifts Embargo
Argentina began swapping defaulted bonds for new securities as
part of its US$104 billion restructuring after U.S. District
Judge Thomas Griesa lifted a freeze on US$7 billion of defaulted
Argentine bonds held at Bank of New York Co., reports Bloomberg.

Argentina needs to complete the restructuring to help restore a
US$13.3 billion loan agreement with the International Monetary
Fund and lure new investment.

Failure to reach an accord with the IMF would leave the
government with a financing gap of about US$2 billion this year,
forcing it to sell more domestic bonds, Pablo Morra, economist
at Goldman, Sachs & Co. in New York, said in a report.

The shortfall would rise to US$4.5 billion next year and US$6.1
billion in 2007.

The IMF, Argentina's biggest creditor, abandoned talks almost a
year ago pending the restructuring. The fund last week allowed
the government to delay payments on $2.5 billion owed to the
fund for a year to help the country free up funds for paying
bondholders this year.


GLOBAL CROSSING: Strikes New Agreement With Loral Skynet
Global Crossing (Nasdaq: GLBC) announced Tuesday a new agreement
with Loral Skynet, Bedminster, NJ. By leveraging Global
Crossing's Fast-Track services, Loral Skynet can more easily
reach locations outside its satellite network, delivering
converged IP services to its global customer base.

"Our customers demand seamless, converged communications with
end-to-end QoS virtually anywhere in the world," said Jon
Kirchner, Loral Skynet's vice president of global marketing.
"This agreement supports Skynet's leadership in converged IP
services over satellite, through SkyReach(SM), and allows us to
serve new markets cost-effectively, while retaining our service
features and delivering a totally transparent customer

Using Global Crossing's iMPLS service, the two companies are
interconnecting at Loral Skynet's terrestrial POPs in San Jose,
California; Ashburn, Virginia; and Munich, Germany using the
highest-level industry standard interconnection available. The
network is then directly extended to multiple earth stations
that provide satellite and terrestrial connectivity to Loral
Skynet's customers in North America, Latin America, Asia,
Europe, the Middle East and Africa.

"We're delighted to be expanding our relationship with Loral
Skynet," said Ted Higase, Global Crossing's executive vice
president, worldwide carrier services. "By tightly coupling our
MPLS-based networks, Loral Skynet can connect its customers to
the extensive Loral satellite grid from more than 500 additional

Loral Skynet is also leveraging Global Crossing's IP Transit
service to provide customers with Internet connectivity, and is
using Global Crossing's private line service for both resale and
its own network infrastructure.

Global Crossing iMPLS Service is an enhanced provider
interconnect service that allows MPLS-based service providers to
seamlessly extend IP Virtual Private Network (IP VPN) services
outside their service reach. Recently, Loral Skynet and Global
Crossing combined their respective satellite and terrestrial
capabilities to win a 260 site IP network contract to support
the British Council, a British charity organization partially
funded by the UK Government's Foreign and Commonwealth Office,
illustrating the power of converging transport mediums, all IP-

Critical business communications require consistent levels of
uninterrupted performance. Global Crossing's industry-leading
Service Level Agreements (SLAs) leverage the exceptional quality
of the Company's network to guarantee crystal-clear, virtually
jitter-free performance of real-time converged IP applications.

Available in more than 500 cities in 50 countries, Global
Crossing provides one of the highest performance and versatile
IP VPN solutions currently in place, with true global reach,
scalable connectivity, multiple access options, and flexible
billing options. The solution supports the convergence of
corporate data, voice, IP video and Internet access, all over a
single connection.

Global Crossing's IP Transit, running over its fully-meshed
MPLS-based global IP network, delivers reliable, fast upstream
connectivity to customers around the world, backed by extensive
peering relationships and industry-leading network availability
performance. Global Crossing's Private Line service provides
high-reliability, point-to-point, digital connectivity around
the world.

Global Crossing Fast-Track(TM) Services is a portfolio of
wholesale business solutions which enables service providers to
increase their speed-to-market and revenue realization by
expanding their geographic reach, broadening their range of
converged IP service offerings and providing a unified
experience to customers around the world. Fast-Track Services
portfolio includes a full range of network services with two go-
to-market options: Global Crossing Signature Services(TM) allow
service providers to market these network services under their
own brand to their customers, while Global Crossing Alliance
Services(TM) enable service providers to co-brand the network
services with Global Crossing.

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

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

Please visit http://www.globalcrossing.comfor more information
about Global Crossing.

A pioneer in the satellite industry, Loral Skynet delivers the
superior service quality and range of satellite solutions that
have made it an industry leader for more than 40 years. Through
the broad coverage of the Telstar satellite fleet, in
combination with its hybrid VSAT/fiber global network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration. Headquartered in Bedminster, New
Jersey, Loral Skynet is dedicated to providing secure, high-
quality connectivity and communications. For more information,
visit the Loral Skynet web site at

In addition to being the parent Company of Loral Skynet, Loral
Space & Communications (OTC Bulletin Board: LRLSQ) is a world-
class leader in the design and manufacture of satellites and
satellite systems for commercial and government applications
through its Space Systems/Loral subsidiary. For more
information, visit the Loral Space & Communications web site at

CONTACT: Global Crossing
         Press Contacts
         Catherine Berthier
         Phone: 1 646-862-8514

         Analysts/Investors Contact
         Laurinda Pang
         Phone: 1 800-836-0342


BANCO SCHAHIN: S&P Assigns `B' to $10M Senior Unsecured Notes
Standard & Poor's Ratings Services has assigned its 'B' foreign-
currency short-term senior unsecured debt rating to Banco
Schahin S.A.'s $10 million senior unsecured notes, to be issued
in May 2005 and maturing in one year. The coupon of the
transaction is 6.0% per annum fixed rate.

The counterparty credit ratings on Banco Schahin S.A.
(B/Stable/B) reflect the intrinsic risks of a small bank facing
the challenge of growing its retail business while maintaining
adequate funding in the increasingly competitive and volatile
Brazilian banking market; the bank's loan portfolio, with
comparatively worse quality than those of its peers; and the
relatively low core profitability in past years as compared to
the bank's risk profile.

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

With total assets of Brazilian reais (BrR) 965 million ($363
million, at an exchange rate of BrR2.65 to $1.0) as of December
2004, Schahin is a small bank positioned as the 54th largest
financial institution in Brazil. The bank is part of a
conglomerate with operations in several areas, including,
amongst others, oil-related services, engineering, and electric
energy transmission.

Standard & Poor's Ratings Services does not assign ratings to
any industrial or service Company part of Schahin's
conglomerate, and the ratings assigned to the bank do not
incorporate potential support from shareholders (although
financial support has been demonstrated in the past).

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

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

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

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

Primary Credit Analyst: Tamara Berenholc, Sao Paulo
(55) 11-5501-8950;

BRASKEM: Unit Sells $150M, 10-Yr Notes
Braskem International Limited, a unit of Brazil's largest
petrochemical Company Braskem S.A., sold Tuesday US$150 million
of 10-year notes in the 144a private placement market, reports

The operation was led by Citigroup Global Markets Inc. and ABN
AMRO Securities Inc..

Early this month, Braskem's Chief Executive Jose Carlos
Grubisich Filho revealed that the Company was planning to raise
as much as US$300 million of bonds maturing in 10 to 15 years to
refinance US$250 million of debt due this year.

Braskem, the largest petrochemical Company in Latin America, is
controlled by the Odebrecht Group and Norquisa, which have,
respectively, 47.5% and 25.4% of the voting capital.

CONTACT: Braskem International Limited
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         Web Site:

COPEL: Issues Portion of Recent Board Meeting Minutes

1. VENUE: Rua Coronel Dulcidio, 800, City of Curitiba, State of
Parana. 2. DATE AND TIME: May 19, 2005, at 2 pm. 3. PRESIDING
BOARD: Joao Bonifacio Cabral Junior - Chairman; Rubens Ghilardi
- Executive Secretary.


I. approved, by unanimous vote, the adequacies to the Sarbanes-
Oxley Law, by means of: a) the creation of an Audit Committee
subject to the Board of Directors and consequent inclusion of
the paragraph 3 in the Article 11 of the Company's Bylaws, to be
submitted to the General Shareholders' Meeting, with the
following wording: "Paragraph 3 - At the minimum, three Board of
Directors' members shall compose Copel's Audit Committee, which
shall be ruled by a specific internal regulation"; b) the
amendment to the subsection VI, of the article 15 and to the
subsection IX, of article 21, of the Company's Bylaws, to be
submitted to the General Shareholders' Meeting, with the
following wording: "Article 15 - It is incumbent upon the Board
of Directors: (...) VI to manage, approve and revise the annual
plan of internal audit works of the Company's business processes
and management" and "Article 21 - It is incumbent upon the CEO:
(...) IX to provide funds for the accomplishment of the internal
audit activities"; and, c) the approval of the internal
regulation of the Audit Committee and the appointment to compose
the referred Committee, after formally created by the General
Shareholders' Meeting, of the Board Members Acir Pepes Mezzadri,
Rog‚rio de Paula Quadros and Laurita Costa Rosa, this last one
appointed as a financial expert. Subsequently, a wording shall
be analyzed and adjusted, which comprises the form of
appointment and dismissal of internal auditors.

II. approved, by unanimous vote, the call notice for the
Extraordinary Shareholders' Meeting, on a date to be settled;

III. approved, by unanimous vote, the Company's Internal Audit
planning for the period between 2005 and 2007;

IV. ratified, by unanimous vote, the contracting of the auditing
firms Trevisan Auditores Independentes for Companhia Paranaense
de Gas - Compagas and Martinelli Auditores for Centrais
El‚tricas do Rio Jordao S.A. - Elejor. This approval was
necessary because Compagas already has and Elejor shall have
their accounts fully included in Copel's consolidated balance
sheet and not only by equity investment accounting;

V. ratified, by unanimous vote, with abstention of the Board
Member Maria Aparecida Rodrigues Pla‡a, the appointment of Mr.
Leonilso Jaqueta to take over the Expansion and New Market
Office of Sercomtel S.A.;

VI. approved, by unanimous vote, the sale of Copel's quotas in
Cons¢rcio Rio Farinha, with the guidance that in all the stakes
Copel withdraws from, the amount to be received shall be
audited, confirming if there was any possible loss for the
Company, as well as if there are evidences of fraud in the cause
of this loss and, in a positive case, after verifying the
responsibilities, the Company shall take the appropriate

VII. decided, by unanimous vote, that the change in the
settlement method of the assets due to the Company Amec by the
dissolution of Copel Amec S.C shall be demonstrated by means of
a new report, containing, inclusively, all the history of that
Company, and it shall be discussed in the next board meeting;

VIII. approved, by unanimous vote, the guidelines to be complied
with for the execution of the agreement on the employees' profit
sharing for 2005;

IX. ratified, by unanimous vote, that, since the 161 st
Extraordinary General Meeting, which, among other statutory
amendments, the name and attributions of some offices were
changed: Mr. Jos‚ Ivan Morozowski as Chief Generation and
Transmission and Telecom Officer and Mr. Assis Corrˆa as Copel's
Chief Legal Officer, being, therefore, the current Management,
which exercises the 2003 to 2006 term of office, comprised by
the following members: CEO, CFO and Investor Relations Officer:
Rubens Ghilardi; Chief Distribution Officer: Ronald Thadeu
Ravedutti; Chief Business Management Officer: Luiz Antonio
Rossafa; Chief Generation and Transmission and Telecom Officer:
Jos‚ Ivan Morozowski; and Chief Legal Officer: Assis Corrˆa;

X. approved, by unanimous vote, the proposal for the Chief
Business Management Officer to submit to the Company's Legal
Officer a dismissal process, which has already been concluded,
with the obligation to inform afterwards the Board if there was
any irregularity in this process and, if positive, if there is
any revision possibility. Nothing more to be dealt with, the
meeting was adjourned at 6:30 pm.


          Investor Relations Department

          Ricardo Portugal Alves
          (55 41) 3331-4311

          Solange Maueler Gomide
          (55 41) 3331-4359

EMBRATEL: Preparing to Acquire Telmex's Stake in Net Servicos
compliance with the provisions of CVM Instruction no. 358/2002,
communicates to its shareholders and to the public in general
that, in a meeting held Tuesday, the Board of Directors of the
Company authorized the management of the Company to take the
necessary measures for having economic-financial feasibility
studies and analysis made in order to assess possible
acquisitions by the Company of (i) all of the capital stock of
Telmex do Brazil Ltda. ("TDB") and (ii) an equity stake
equivalent to 37.11% of the capital stock of Net Servi‡os de
Comunicacao S.A. ("NET"), held by Telefonos de Mexico S.A., de
C.V. ("Telmex"), (the "Acquisition"). In such context, the Board
approved the execution of a Memorandum of Understandings with
Telmex, the controlling shareholder of the Company, confirming
the decision of the parties to carry out those studies and their
preliminary interest in implementing the Acquisition, once its
economic-financial studies are concluded.

Should the studies confirm the interest of the Company in
consummating the Acquisition, its implementation shall be
effected by means of merging into EMBRAPAR, the companies which
hold the interests in TDB and NET, respectively, Atlantis
Holdings do Brasil Ltda. ("Atlantis") and Latam Brasil
Participacoes S.A. ("Latam Brasil"), whose total capital stock
(100%) is held, indirectly, by Telmex. As a result of the
Acquisition, Telmex will receive new common shares to be issued
by the Company, as a consequence of the capital increase to be
approved for absorbing the assets and liabilities of the merged

In this same meeting, the members of the Board of Directors
authorized the administration of the Company to hire the
services of financial and legal consultants and other services
that may be necessary to appraise the feasibility of the
Acquisition, as well as, if such feasibility is confirmed, hire
the necessary appraisals for implementing the transactions, in
strict compliance with legal provisions and regulations in

As soon as the studies and other preparatory measures for the
Acquisition are concluded, the respective terms and conditions
shall be submitted to the analysis of the competent bodies of
the Company and promptly disclosed to the market.

The administration of the Company believes that the Acquisition
fits in with the policy of the Company of developing
alternatives for expanding its business lines, seeking not only
to increment its share in the areas where it already has a
consolidated presence, but also its expansion to other segments
of the Telecommunications market in Brazil.

          Isaac Berensztejn, Investor Relations Officer
          Tel: (55 21) 2121-9662
          Fax: (55 21) 2121-6388
          Web site:

EMBRATEL: Board Ratifies Capital Increase
Embratel Participacoes S.A. ("Embrapar" or "Company"), a joint
stock Company, with head-office in the City of Rio de Janeiro,
State Rio de Janeiro, at Rua Regente Feij¢, n.§ 166/1687-B,
communicates to its shareholders and to the public in general
that its Board of Directors ratified on May 23, 2005 the
Company's capital increase, which is now R$4,096,713,387.00
(four billion, ninety six million, seven hundred and thirteen
thousand, three hundred and eighty seven reais), represented by
758,306,004,336 (seven hundred and fifty-eight billion, three
hundred and six million, four thousand, three hundred and
thirty-six) shares, 282,027,681,973 (two hundred and eighty-two
billion, twenty-seven million, six hundred and eighty-one
thousand, nine hundred and seventy three) being nominative
common shares and 476,278,322,363 (four hundred and seventy-six
billion, two hundred and seventy-eight million, three hundred
and twenty-two thousand and three hundred and sixty-three) being
nominative preferred shares, all with no nominal value. The
total amount raised by the Company with the capital increase was
R$1,822,800,000,00 (one billion, eight hundred twenty two
million, eight hundred thousand reais).

LIGHT SERVICOS: Parent Mulls Gradual Pullout Says Newspaper
Electricite de France (EdF) wants to make a partial and gradual
withdrawal from its Brazilian unit, Light Servicos de
Eletricidade SA, for political reasons, but not before 2006,
according to Le Monde newspaper.

The report surfaced just days after the unit gained approval
from creditors to go-ahead with a plan to restructure overdue
debts worth BRL1.77 billion.

When asked about the report, an EDF spokeswoman would not make a
direct comment, but added that "the important thing for Light,
is its debt restructuring."

EDF holds 94.79% in the Company that serves 3.5 million
customers in 31 municipalities in Rio de Janeiro state.

          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO

TCP: Kicks Off 10-Year, BRL1 Bln Debenture Issue
Telesp Celular Participacoes (TCP) launched Tuesday the issuance
of BRL1 billion ($1=BRL2.43) worth of 10-year non-convertible

According to Dow Jones Newswires, the debentures will pay 103.3%
of the CDI interbank rate for the first three years, stepping up
to 104.3% from the fourth year through maturity.

The issue is being managed by Banco Itau BBA.

Proceeds of the operation will be used to refinance existing
debt and extend the average maturity of the Company's debt,
according to TCP Chief Financial Officer Arcadio Martinez.

As of March 31, the Company's net debt reached BRL4.28 billion,
up from BRL3.81 billion a year ago. Gross debt was BRL5.22
billion, of which 60.2% was denominated in foreign currency.

CONTACT: Telesp Celular Participacoes S.A.
         Charles Edwards Allen
         Investor Relations Office
         Tel: 55 11 5105-1172

UNIBANCO: Chagas Replaces Rosenhek as IR Associate Director
Fernando Della Torre Chagas replaced Marcelo Rosenhek on May 23
as Unibanco's Investor Relations Associate Director.

Fernando Chagas holds a Bachelor degree in Business
Administration from Funda‡ao Getulio Vargas, and an MBA from the
Wharton School of the University of Pennsylvania. Fernando
started his career as a trader at Unibanco's Treasury Department
ten years ago. For the past five years he served as Investments
Director, playing an important role in many acquisitions and
strategic alliances Unibanco announced during this period.

Marcelo Rosenhek will assume a position at Unibanco's Treasury,
in the Asset and Liability Management area.

Fernando Chagas can be reached at # 55 11 3097-1980 or through
his email:

CONTACT: Uniao de Bancos Brasileiros S.A. - UNIBANCO
         Investor Relations

VARIG: TAP Looks to Take On Part of Debt
TAP Portugal will not disburse any cash to Brazil's flagship
airline Varig in case its offer for 20% of the latter is
accepted, according to an AFX report.

Instead, it would take over BRL700 million (EUR230 million) of
Varig's debt and would also act as guarantor for the embattled
airline's purchases of new aircraft.

TAP and Varig are currently in talks, which may lead to the
Portuguese airline making an investment in the firm. TAP said in
a statement that it had decided to open talks with Varig because
the airline's controlling shareholder, Fundacao Ruben Berta, had
announced that it wants to cede control of the troubled carrier.

Varig is saddled with BRL9.5 billion (US$3.8 billion) in debt
and has been losing domestic market share.

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:


SR TELECOM: Finalizes Agreements With Debenture Holders
SR Telecom Inc. (TSX: SRX - News; Nasdaq: SRXA - News)
announced Tuesday that it has entered into definitive
agreements with a group representing the required majority of
its outstanding 8.15% Debentures regarding its recapitalization
plan. It has also entered into agreements with the lenders for
its Chilean subsidiary, Comunicacion rurales y telefonia
("CTR"), the Inter-American Development Bank and Export
Development Canada ("the CTR Lenders").

    Transaction Highlights

  - SR Telecom closes an operating credit facility of US$39.6
    million (CDN$50 million) with certain of its 8.15%
    Debenture holders of which US $4.85 million has been drawn
    down on closing.

  - CTR Lenders agree to restructure the terms of the loans to
    CTR and postpone maturity for three years from the date of
    the implementation of the restructuring.

  - Outstanding 8.15% Debentures to be restructured into new
    convertible debt and equity, following which the current
    Debenture holders will own 95.2% of the Corporation's
    equity on a fully-diluted basis, resulting in a dilution to
    existing shareholders of approximately 1,983%. Interest on
    the new convertible debentures can be paid in cash or in
    kind. If paid in kind, the resulting dilution would be over

  - SR Telecom intends, subject to market conditions, to file a
    preliminary prospectus relating to a Rights Offering for up
    to $40 million of common shares to shareholders holding its
    currently outstanding common shares.

Credit Facility

SR Telecom has entered into a credit agreement providing for a
credit facility of US$39.6 million (CDN$50 million) with a
syndicate of Lenders from among the 8.15% Debenture holders.
BNY Trust Company of Canada will act as administrative and
collateral agent for the loans. The credit facility shall be
revolving until October 1, 2006, followed by a non-revolving
term period that shall extend until October 2, 2011. The first
tranche of US$15.85 million is immediately available to SR
Telecom and US$4.85 million has been drawn down on closing. The
balance of the US$39.6 million facility will be available to
the Corporation subject to agreed budgets or covenant
compliance and will be available to fund working capital
requirements. The facility will be secured by the available
assets of SR Telecom.

The financial terms of the credit facility include the
following: a 2% commitment fee based on the facility
accommodations as they become available; cash interest at a
rate equal to the greater of 6.5% or the three-month U.S.
Dollar LIBOR rate plus 3.85%; additional interest that may be
paid in cash or in kind at a rate equal to the greater of 7.5%
or three-month U.S. Dollar LIBOR plus 4.85%; and a payout fee
of either, at the option of the lenders, 5% of the US$39.6
million maximum loan or 2% of distributable value, as defined
therein (which approximates the market capitalization of the
Corporation), at maturity, payable by issuing debt or equity.

CTR Restructuring

In addition, SR Telecom has entered into a waiver and amendment
agreement with the CTR Lenders to restructure the terms of
loans to CTR. Pursuant to the terms of the agreement, the CTR
Lenders have agreed to restructure the repayment schedule of
their loan agreements and to postpone the maturity of the loans
for three years from the date of the implementation of the
restructuring. As part of these arrangements, SR Telecom has
guaranteed the performance of the obligations of CTR to the CTR
Lenders up to an amount of US$12 million. This guarantee may be
reduced over time to the extent SR Telecom makes payments to
the CTR Lenders on account of principal. In addition, the CTR
Lenders have agreed not to exercise or enforce any remedies
they may have against SR Telecom until May 17, 2008 or such
earlier date as there may be a default by SR Telecom under its
new credit agreement or upon an insolvency or bankruptcy of SR
Telecom. SR Telecom has also agreed to provide certain
management, technical, inventory and other support to CTR.

Debenture Exchange

SR Telecom will proceed with the previously announced exchange
of its outstanding CDN$71 million 8.15% Debentures and all
accrued interest of approximately CDN$3.5 million thereon into
new 10% Convertible Redeemable Secured Debentures due in 2011.
Interest on the new Convertible Debentures is payable in cash
or in kind by the issuance of additional Convertible
Debentures, at the option of SR Telecom. The new Convertible
Debentures will be convertible into common shares at a rate of
approximately 4,694 common shares per CDN$1,000 in principal
amount of new Convertible Debentures (the "Conversion Rate")
representing a conversion price at closing of approximately
$0.21 per common share such that the outstanding principal
amount of all new Convertible Debentures will be convertible
into 95.2% of the fully diluted common shares of the
Corporation upon closing of the Debenture exchange. It is
contemplated that CDN$10 million of the 8.15% Debentures will
be converted into approximately 46,939,218 common shares
following the Debenture Exchange, which would represent
approximately 73% of the then issued and outstanding common
shares of the Corporation at such date.

The number of common shares that may be issued, assuming all of
the new Convertible Debentures are converted into common shares
at the Conversion Rate, is approximately 302,328,400 common
shares, which, together with the issuance of 46,939,218 common
shares in exchange for the CDN$10 million portion of the
outstanding 8.15% Debentures, represents a dilution to current
shareholders of approximately 1,983%, without taking into
account the Rights Offering. In addition to the foregoing, to
the extent of the Corporation issues new Convertible Debentures
in payment of interest on the new Convertible Debentures, this
will lead to substantial additional dilution. For example, if
in a given year all interest on $64.5 million of new
Convertible Debentures is paid in kind, such new Convertible
Debentures will be convertible into approximately 30 million
additional common shares. Therefore, over the life of the new
Convertible Debentures, this could lead to further issues in
excess of 180 million common shares, representing a total
dilution of over 3,000%.

The current trading price of the Corporation's common shares
may not accurately reflect the significant dilution resulting
from the transactions described above.

As the aggregate number of common shares issuable in connection
with the Debenture exchange will exceed the maximum number of
securities issuable without security holder approval under the
rules of the Toronto Stock Exchange (the "TSX"), SR Telecom is
relying on an exemption from the security holder approval
requirements provided for under Section 604(e) of the TSX
Company Manual on the basis of its serious financial
difficulty. Upon the recommendation of a special committee of
independent directors of SR Telecom, who are free from any
interest in the transactions and are unrelated to any of the
parties involved in the transactions, the Board of Directors of
SR Telecom has determined that SR Telecom is in serious
financial difficulty, that the transactions are designed to
improve its financial situation and are reasonable in the
circumstances, and has authorized SR Telecom to make the
application to the TSX.

Rights Offering

In addition, as soon as practicable following the closing of
the Debenture exchange, the Corporation intends, subject to
market conditions, to file a preliminary prospectus relating to
a Rights Offering to its shareholders. Pursuant to the Rights
Offering, the Corporation will offer to shareholders holding
its currently outstanding common shares the right to subscribe
to up to $40 million of new common shares at a price to be
determined, but no less than a 20% premium to the conversion
price of approximately CDN$0.21 of the new Convertible

Assuming a subscription price of CDN$0.256 and that the full
amount of CDN$40 million is subscribed for, the shareholders
holding the Corporation's currently outstanding common shares
would own at most 35% of the Corporation's common shares on a
fully diluted basis at that time. The first CDN$25 million
raised under the Rights Offering will be used for working
capital and general corporate purposes and all amounts raised
in excess of CDN$25 million will be applied 50% to working
capital and general corporate purposes and 50% to a pro rata
redemption of the then outstanding new Convertible Debentures
and the principal amount of the loans to CTR by The CTR Lenders
at 95% of their face value.

Financial Advisor

Genuity Capital Markets advised SR Telecom on the
recapitalization plan and led negotiations with the 8.15%
Debenture holders and the CTR Lenders.

About SR Telecom

SR TELECOM (TSX: SRX, Nasdaq: SRXA) designs, manufactures and
deploys versatile, Broadband Fixed Wireless Access solutions.
For over two decades, carriers have used SR Telecom's products
to provide field-proven data and carrier-class voice services
to end-users in both urban and remote areas around the globe.
SR Telecom's products have helped to connect millions of people
throughout the world.

A pioneer in the industry, SR Telecom works closely with
carriers to ensure that its broadband wireless access solutions
directly respond to evolving customer needs. Its turnkey
solutions include equipment, network planning, project
management, installation and maintenance.

SR Telecom is a principal member of WiMAX Forum, a cooperative
industry initiative which promotes the deployment of broadband
wireless access networks by using a global standard and
certifying interoperability of products and technologies.

         David Adams
         Senior Vice-President, Finance and CFO
         Tel: (514) 335-4035

         Scott Lawrence
         Maison Brison
         Tel: (514) 731.0000

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Moody's Changes Rating Outlook to Stable
Moody's Investors Service has changed its outlook on the
Dominican Republic's B3 foreign- and local-currency ratings to
stable from negative as a result of the recent debt exchange.
The exchange, which was successfully completed in early May, had
a high participation rate.

Moody's noted that the stable outlook incorporates the debt
"relief" that will be derived from the extension of maturities
as well as evidence of an improved macroeconomic environment.

Economic policy actions undertaken by the administration of
President Leonel Fernandez have been effective in reversing
trends that led to persistent deterioration in various financial
indicators, said Moody's.

Conservative fiscal and monetary policies have contributed to
restoring the conditions necessary to maintain macroeconomic
stability. Nonetheless, institutional and structural challenges

The rating agency noted that, while the debt ratios of the
Dominican Republic appear low relative to its peer group,
despite larger-than-anticipated increases in international
reserves, the country's external liquidity ratios reveal a high
degree of financial vulnerability when compared to similarly
rated countries, and thereby makes the country's B3 rating
consistent with its current risk profile.


TV AZTECA: US Court Grants Extension to Hear Arguments
The Securities and Exchange Commission (SEC) and Mexico's second
largest television channel TV Azteca (NYSE: TZA) gained more
time to present before a US Judge their arguments on whether
fraud charges against the broadcaster should be dismissed.

According to Reuters, the judge granted the SEC an extension
until June 15, while TV Azteca must reply to the SEC's response
by July 11.

In January, the SEC filed fraud charges against TV Azteca and
Company chairman Ricardo Salinas Pliego for withholding
information on a debt sale at its mobile telephone unit, Unefon.
The suit alleges the deal netted Salinas and former TV Azteca
director Pedro Padilla US$109 million.

CONTACT:  TV Azteca, S.A. de C.V.
          Investors, Bruno Rangel
          Tel: +5255-3099-9167

          Media, Tristan Canales
          Tel: +5255-1720-5786

          Daniel McCosh
          Tel: +5255-1720-0059

UNEFON: Ends 16-Year Spectrum Leasing Contract With Telcel
Wireless phone operator Unefon SA and market leader Telcel have
agreed to terminate a leasing contract, under which Telcel had
paid US$268 million in 2003 for use of Unefon's 8.4 MHz of
spectrum over 16 years, reports Dow Jones Newswires.

Under the termination accord, Unefon agreed to pass the spectrum
to Telcel, leaving itself with 21.6 MHz at the 1,900 MHz
frequency, and Telcel with 28.4 MHz, with another 10 MHz in
several of the country's nine regions in dispute with antitrust

In April, the country's telecommunications regulator Cofetel
completed the auction of four blocks of 10 MHz in each of the
nine regions.

However, the Federal Competition Commission (CFC) issued a
ruling that limited to 35 MHz the amount of 1,900 frequency
spectrum a single operator could amass in any one region.

The ruling prompted the companies to take the case to the
courts. Of the total spectrum auctioned, around 70% has been
awarded and the rest depends of the outcome of the legal

The CFC imposed the cap, arguing that it would encourage the
entry of new operators, although no newcomers took part in the
auction. Existing operators argue that the original spectrum
limit of 65 MHz per operator at both 1,900 MHz and 850 MHz
frequencies should be respected.


PDVSA: Presents True Facts About Oil Production, Exports
The media campaign against PDVSA aimed at creating chaos in the
country, tries to hide the truth about Venezuela's oil
production, exports and the hard currency income generated by
our oil industry, further claiming that not all of this income
finds its way into the national treasury.

In this sense, the Bolivarian government, through the Ministry
of Energy and Petroleum and PDVSA, wishes to inform the country
of the true facts in each case.

Venezuela's oil production is confined by the agreements
established within OPEC and the contractual commitments acquired
by PDVSA during the so-called Oil Opening.

In this context, the country's average oil production for the
January-April 2005 period was 3,240,000 barrels per day, of
which 2,623,000 were PDVSA production, including operating
agreements, while 617,000 barrels per day were produced by the
strategic associations operating in the Orinoco Oil Belt.

In this way, own-effort production plus the operating
agreements' contribution totalled 2,623,000 daily barrels of
crude, of which 449,000 barrels per day went to meet internal
market demand, thereby generating a bolivar income for PDVSA,
and 2,174,000 barrels per day were exported, producing hard
currency income.

Venezuela's exports basket is made up by 1,423,000 barrels per
day of crude oil and 751,000 barrels per day of refined
products, thus totalling 2,174,000 barrels per day of crude and

Now, the 617,000 barrels per day produced by the Orinoco Oil
Belt associations generate a dollar income which does not enter
the country; therefore, the only oil hard currency coming into
the country is derived from the sale abroad of the 2,174,000
barrels per day of crude and products already mentioned.

Based on the overall export volume, the total hard currency
income from exports over the January-April 2005 period rose to
US$12,928 million. However, the $2,171 million generated by the
Orinoco Oil Belt associations never entered the country and,
therefore, neither were they deposited in the Central Bank of
Venezuela, due to complex contractual arrangements inherited
from the old PDVSA.

Thus, over the January-April period, PDVSA's income was only
$10,757 million, disposed of as follows:

Of the total, $640 million were invested in the country's
Economic and Social Development Fund, deposited with the BANDES
and managed through a trust, as one of the direct ways to
benefit the people who are, after all, the real owners of the
oil, while $ 1,148 million went to suppliers for payment of
goods bought abroad and required for PDVSA's production. Also,
$860 million were paid to the Operating Agreements. All payments
to the operating agreements are made in dollars, in accordance
with the terms of the original contractual arrangements.

Similarly, $194 million went to PDVSA's rotating fund abroad
and, finally, a modest $39 million were earmarked for Petr¢leos
de Venezuela's debt service payment, which is substantially low
in relation to its net worth. PDVSA can state with pride that
its debt in relation to net worth is 9%.

The remainder of the total amount, which is to say $7,065
million, was handed over to Venezuela's Central Bank.

Therefore, when we see that the news media avoid giving all the
pertinent information, and that the figures are frequently
distorted, it becomes clear that they are lying. It is ludicrous
to claim that the hard currency income total can be obtained by
multiplying the market price of crude by 3,240,000. As shown
above, the volume going to the internal market and the
production of the associations must first be deducted; in the
latter case, because the dollar income generated does not enter
the country. We must then determine the destination of these
resources. This includes payments to the operating agreements;
contributions to the country's Economic and Social Development
Fund; payments to suppliers for the purchase of inputs necessary
for PDVSA' operations; contributions to the Corporation's
rotating fund abroad, and the money earmarked for the payment of
PDVSA's debt service.

These are the true facts concerning the Venezuelan oil
industry's production, exports and hard currency income
generation, and this is the way in which the Bolivarian
Government of Venezuela, through its Energy and Petroleum
Ministry and the New PDVSA, moves forward in the transparent
management of its resources and the rendering of clear accounts
to the Nation.

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:

PDVSA: Adds 842 Workers to Permanent Payroll in Zulia
In La Salina, municipality of Cabimas, State of Zulia, Rafael
Ramirez Carreno, Minister of Energy and Petroleum of the
Bolivarian Republic of Venezuela and President and CEO of PDVSA,
presented 842 identification cards to the newly absorbed
personnel, who for over 10 years worked for contractors serving
PDVSA, together with a group who defended PDVSA throughout the
contingency plan implemented during to the oil sabotage.

Ramirez, accompanied by members of the Board of Directors,
representatives of PDVSA West operations and Army General
Virgilio Lameda, commander of the Zulia garrison, presented 22
identification cards to new employees. Among them, two women
welders, who represented the 842 workers supporting the
contingency plan.

These Venezuelans are now part of PDVSA's permanent payroll and
will work in production as equipment and instrument operators,
mechanics, electricians, welders and divers, among other
specialties. This complies with the decision made by PDVSA's
Presidency on February 25 th, 2005 to incorporate 5,281
contractor employees who had been working in the Corporation's

Ramirez stated that of the total, 289 persons were added by
absorption, "These workers were being exploited by contractors
who acted as intermediaries between PDVSA and the workers.
Today, they have been absorbed by the new PDVSA because they
deserve it; they have proven their loyalty to our country and
have devoted up to 20 years of their working life to the oil
industry and during that period were subjected to a wicked,
corrupt mechanism installed in our industry with the
participation of the old trade union leaders who favored large

Regarding the 444 workers added by contingency, Ramirez
underlined that this personnel entered the oil industry to
rescue it from the oil sabotage: "here is President Hugo Chavez
Frias' commitment, we are fulfilling our promise".

By another mechanism, 108 workers were also added to this new
PDVSA that has "a large labor and ethical reserve made up by the
workers, those managers who defeated the oil sabotage, those who
are here today, those who have overcome the sabotage effects
that produced over $ 14 billion in direct losses", Ramirez
pointed out.

He added that by having the Board of Directors members and
managers present during this ceremony, in order for them to
shake these workers' hands, we are stating that "each one of you
deserves our support". He added, "We are committed to building a
new PDVSA upon the ruins left after the oil meritocracy, a
corporation which is up to par to the historical commitment to
our people, to our country and that ultimately will bring us

The workers will enjoy all the benefits contemplated in the Oil
Collective Contract. The activity's absorption eliminates the
possibility of incurring in murky situations when repeatedly
using the same contractors for the same activity.

During this ceremony, Henry Ramos, representing the absorbed
personnel, stated that this was an act of justice: "I feel very
pleased because after 13 years working hard with three
contracting companies which service PDVSA. I see that this
Administration is finally doing justice to us because we had
been expecting this for a long time. Both me and my family are
very thankful to President Chavez".

SIDOR: Minister Vows to Protect Minority Shareholders' Rights
Minority shareholders of steelmaker Sidor have found an ally in
mining and basic industry minister Victor Alvarez in their
battle against the government and state heavy industry holding
Company CVG over the proper distribution of dividends.

According to Business News Americas, Alvarez vowed to protect
the rights of the Class B shareholders of Sidor so they can
enjoy dividends from the Company's recovery.

Alvarez's made his commitment after the shareholders disagreed
with the government and CVG, which holds 40% of Sidor, about how
much should be distributed through dividends.

The issue affects nearly 2,000 current and retired Sidor
employees who took part in a workers' participation program
promoted by Venezuela's government through CVG. The workers own
20% of Sidor via CVG's share.

SIDOR: To Spend $28M in 2 Gas Separation Plants
Sidor awarded industrial gases Company Praxair a US$28-million
contract to install two gas separation plants, reports Business
News Americas.

The turnkey agreement includes the installation, assembly and
start-up of both plants. The plants, which are expected to
commence operations between July and August 2006, will produce
600t/d of oxygen, nitrogen and argon in both liquid and gaseous
states, complementing Sidor's two existing gas separation

Sidor's plants, which produced 3.4Mt of steel products in 2004,
are in Puerto Ordaz in the southeastern Venezuelan state of

Sidor is 60%-owned by the Amazonia consortium of Mexico's
Hylsamex, the Argentine-Italian Techint group, Brazil's Usiminas
and Venezuela's Sivensa.


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
Sheryl Joy P. Olano, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *