TCRLA_Public/050607.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, June 7, 2005, Vol. 6, Issue 111

                            Headlines


A R G E N T I N A

AGUAS PROVINCIALES: Legislature Seeks Exit Details
CANADA MUEBLES: Court Converts Bankruptcy to Reorganization
COELSA: Liquidates Assets to Pay Debts
ESCENCIA ARGENTINA: Initiates Bankruptcy Proceedings
FUNDICION INDUSTRIAL: Court Orders Liquidation

IMMI PACK: Court Designates Trustee for Liquidation
INSTELEC ELECTRONICA: Seeks Court Approval to Reorganize
INTERBAND S.A.: Debt Payments Halted, Set To Reorganize
IRSA: Buys 13-Story Building From Cargill
SAN ANDRES: Declared Bankrupt by Court

TRADINGSUR S.A.: Reorganization Concluded
YORN S.A.: Heading for Liquidation After Bank Ruling
* ARGENTINA: Fitch Rates New Govt Bonds; Raises Country Ceiling


B E R M U D A

ALLERGY THERAPEUTICS: Members Resolve to Wind-Up
BIJOUX SALES: Appoints Paul Harshaw as Liquidator
FOSTER WHEELER: NASDAQ Revises Trading Symbols For Warrants
ORIENTAL MANAGEMENT: Members Hire Robin Mayor as Liquidator


B R A Z I L

CEMIG: To Borrow $1.542B to Refinance Debt
CFLCL: $87M Receivables Fund Particulars Expected This Week
LIGHT SERVICOS: Shareholders OK $316M Debt Sale
TELEMAR: BNDES Authorizes $89M Loan
UNIBANCO: Acquires Banco Dibens' Car Unit for BRL128M


C O L O M B I A

FIBRATOLIMA: Mayor, Liquidator Move to Rescue Firm


C O S T A   R I C A

ICE: Court Rejects Lawyer's Suit to Scrap Ericsson/ICE Contract


E C U A D O R

PETROECUADOR: President Resigns Amidst Fraud Allegations


M E X I C O

GRUPO DESC: To Swap MXN2.43 Bln, 7-Yr Notes for New Certificates
LEVI STRAUSS: Wins Appeal in Legal Dispute With Mexico City Firm
TV AZTECA: Releases Details on Newly Adopted Resolutions


P U E R T O   R I C O

DORAL FINANCIAL: Murray, Frank Files Class Action Suit


U R U G U A Y

URAGUA: OSE Officially Rejects Contract


     - - - - - - - - - -


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

AGUAS PROVINCIALES: Legislature Seeks Exit Details
--------------------------------------------------
The legislature of Argentine province Santa Fe authorized a
measure that compelled governor Jorge Obeid to release details
of a request made by private waterworks operator Aguas
Provinciales de Santa Fe to abandon its contract, reports
Business News Americas.

Aguas, controlled by French utility Suez, sent a note to the
governor in May, seeking permission to unilaterally abandon its
current contract. Given the unique nature of the request, the
legislature wants to find out more details.

Aguas provides potable water services to 1.83 million residents
and sewerage service to 1.25 million in 15 provincial cities
including capital Santa Fe.


CANADA MUEBLES: Court Converts Bankruptcy to Reorganization
-----------------------------------------------------------
Canada Muebles S.R.L. will embark on a reorganization process
after Buenos Aires' civil and commercial Court No. 6 converted
the Company's ongoing bankruptcy case into a "concurso
preventivo", states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.

Ms. Maria Cristina Gialdini, the court-appointed trustee, will
verify creditors' proofs of claim. Creditors with unverified
claims cannot participate in the Company's settlement plan.

CONTACT: Canada Muebles S.R.L.
         Iriondo 541
         Canada de Gomez
         Departamento Iriondo (Santa Fe)

         Ms. Maria Cristina Gialdini, Trustee
         Lavalle 667
         Canada de Gomez (Santa Fe)


COELSA: Liquidates Assets to Pay Debts
--------------------------------------
Coelsa y Asociados S.R.L. will begin liquidating its assets
following the pronouncement of the city's Court No. 12 of Buenos
Aires' civil and commercial tribunal that the Company is
bankrupt, Infobae reports. The bankruptcy ruling places the
Company under the supervision of court-appointed trustee, Silvia
Ines Trombetta. The trustee will verify creditors' proofs of
claim until July 22, 2005. The validated claims will be
presented in court as individual reports on Sep. 2, 2005.

Ms. Trombetta will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, Oct. 14, 2005.

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

CONTACT: Ms. Silvia Ines Trombetta, Trustee
         Viamonte 1337
         Buenos Aires


ESCENCIA ARGENTINA: Initiates Bankruptcy Proceedings
----------------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal
declared Escencia Argentina S.A. "Quiebra," reports Infobae.
Clerk No. 41 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.

Mario Leizerow, who was appointed as trustee, will verify
creditors' claims until Aug. 22, 2005 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on Oct.
3, 2005, followed by the general report on Nov. 15, 2005.

CONTACT: Escencia Argentina S.A.
         Uruguay 367
         Buenos Aires

         Mr. Mario Leizerow, Trustee
         Bouchard 644
         Buenos Aires


FUNDICION INDUSTRIAL: Court Orders Liquidation
----------------------------------------------
Fundicion Industrial Argentina S.A. prepares to wind-up its
operations following the bankruptcy pronouncement issued by
Court No. 26 of Buenos Aires' civil and commercial tribunal. The
declaration effectively prohibits the Company from administering
its assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Mr. Luis Maria
Rementeria as trustee. Mr. Rementeria will be reviewing
creditors' proofs of claim until July 4, 2005. The verified
claims will serve as basis for the individual reports to be
presented for court approval on Aug. 30, 2005. The trustee will
also submit a general report of the case on Oct. 12, 2005.

Clerk No. 51 assists the court on this case that will end with
the sale of the Company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Fundicion Industrial Argentina S.A.
         Parana 145
         Buenos Aires

         Mr. Luis Maria Rementeria, Trustee
         Piedras 1319
         Buenos Aires


IMMI PACK: Court Designates Trustee for Liquidation
---------------------------------------------------
Buenos Aires' accountant Mirra Noemi Andrada was assigned
trustee for the liquidation of local company Immi Pack S.A.,
relates Infobae.

Ms. Andrada will verify creditors' claims until June 21, 2005,
the source adds. After that, she will prepare the individual
reports, which are to be submitted in court on Aug. 16, 2005.
The submission of the general report should follow on Sep. 28,
2005.

The city's civil and commercial Court No. 3 handles the
Company's case with assistance from Clerk No. 5.

CONTACT: Ms. Mirra Noemi Andrada, Trustee
         Malabia 187
         Buenos Aires


INSTELEC ELECTRONICA: Seeks Court Approval to Reorganize
--------------------------------------------------------
Instelec Electronica S.R.L. has filed a "Concurso Preventivo"
petition to reorganize its finances, reports La Nacion. The
Company's case is pending before Court No. 16. Clerk No. 32 will
assist the court on the case.

CONTACT: Instelec Electronica S.R.L.
         Buenos Aires


INTERBAND S.A.: Debt Payments Halted, Set To Reorganize
-------------------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal is
now analyzing whether to grant Interband S.A. approval for its
petition to reorganize. La Nacion recalls that the Company filed
a "Concurso Preventivo" petition following cessation of debt
payments on Feb. 2005. Clerk No. 9 is assisting the court on the
Company's case.

CONTACT: Interband S.A.
         Av. de Mayo 1130
         Buenos Aires


IRSA: Buys 13-Story Building From Cargill
-----------------------------------------
IRSA-Inversiones y Representaciones SA (IRS), Argentina's
largest real estate developer, bought a 13-story office building
for US$27.25 million from Andean Asset Management, a unit of
Cargill. Dow Jones Newswires reports that IRSA will pay US$10
million in cash for the building and pay the remaining balance
in 36 monthly installments at an interest rate of 8.5%.

The acquisition, according to IRSA, adds 15,015 square meters of
leaseable floor space to its office property portfolio. At the
end of March, the Company had 82,696 square meters of leasable
floor space within its office segment and occupancy stood at
89%.

IRSA's office space business hasn't recovered as quickly from
Argentina's 2002 economic crisis as the Company's shopping
center and hotel segments, which benefited from the tourism boom
that followed the peso's 70% plunge against the dollar during
the crisis.


SAN ANDRES: Declared Bankrupt by Court
--------------------------------------
San Andres de Procida S.A. is now bankrupt after Court No. 26 of
Buenos Aires' civil and commercial tribunal declared it
"Quiebra", Infobae reports. The court, which is assisted by
Clerk No. 52 on the case, is yet to appoint a receiver, who will
be reviewing creditors' claims to determine the amount each
creditor will get after all the assets of the Company are
liquidated.

CONTACT: San Andres de Procida S.A.
         Coronel Salvadores 1380
         Buenos Aires


TRADINGSUR S.A.: Reorganization Concluded
-----------------------------------------
The settlement plan proposed by Tradingsur S.A. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by Court No. 7
of Buenos Aires' civil and commercial tribunal and will now be
implemented by the Company.

CONTACT:  Tradingsur S.A.
          Buenos Aires


YORN S.A.: Heading for Liquidation After Bank Ruling
----------------------------------------------------
Buenos Aires-based Yorn S.A. will begin liquidating its assets
following the pronouncement of Court No. 22 of the city's civil
and commercial tribunal that the Company is bankrupt, reports
Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Carlos Alberto Bavio. The trustee
will verify creditors' proofs of claim until July 8, 2005. The
validated claims will be presented in court as individual
reports on Sep. 6, 2005.

Mr. Bavio will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy on Oct. 20, 2005.

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

CONTACT: Mr. Carlos Alberto Bavio, Trustee
         Pavon 4374
         Buenos Aires


* ARGENTINA: Fitch Rates New Govt Bonds; Raises Country Ceiling
---------------------------------------------------------------
Fitch Ratings, the international ratings agency, has assigned
the following ratings to the US$35 billion in bonds Argentina
issued as part of its debt exchange:

--Par bonds in foreign currency issued under foreign law 'CCC+';
--Par bonds in foreign currency issued under Argentine law 'B-';
--Par bonds in local currency issued under Argentine law 'B-';
--Discount bonds in foreign currency issued under foreign law
'CCC+';
--Discount bonds in foreign currency issued under Argentine law
'B-';
--Discount bonds in local currency issued under Argentine law
'B-';
--Quasi par bonds in local currency issued under Argentine law
'B-'.

At the same time, Fitch has upgraded the following ratings:
--Country ceiling to 'B' from 'B-';
--Short-term foreign currency to 'B' from 'C'.

Fitch also affirmed the following ratings:
--Bodens in local currency 'B-';
--Local and foreign currency bonds eligible but not tendered in
the debt exchange 'D';
--Long-term foreign currency issuer default rating 'DDD'.

Additionally, Fitch assigned 'B-' ratings to Bodens in foreign
currency.

The Rating Outlook on the non-default ratings is Stable.

"The ratings on the new bonds reflect Fitch's expectation that
Argentina should be able to meet debt service obligations over
the next 18-24 months assuming an adequate fiscal stance is
maintained, that it can fully refinance debt coming due in the
local market, and that some new disbursements are made by
multilateral lenders. The margin of maneuver in public finances
will remain tight for the foreseeable future, however, leaving
them vulnerable to confidence shocks," said Morgan C. Harting,
Fitch sovereign analyst for Argentina. Fitch believes that until
relations with holdouts are normalized, prospects for
multilateral financing will be constrained. Furthermore,
potential claims by holdouts against the government will pose an
ongoing risk that payments on new bonds could be exposed to
attachment by foreign courts.

Assuming near-term financing needs are covered, government debt
could continue on a declining path over the near term as a
result of economic growth, real exchange rate appreciation and a
primary budget surplus. Fitch expects growth to exceed 6% this
year and that the general government primary balance will equal
about 3.7% of GDP. The peso is expected to appreciate in real
terms mostly due to rising inflation, which Fitch believes could
reach 10% by year-end. Above-average growth will become more
difficult to sustain relatively soon because of supply
bottlenecks, particularly in the energy and gas sectors.
Concerns in the private sector about regulatory certainty and
macroeconomic stability are also limiting long-term investment,
further dampening economic growth potential.

As activity slows, the fiscal position will become more
difficult to sustain, particularly if the government
significantly loosens expenditures in response to demands for
higher wages and pensions. Adjustment away from distortionary
taxes on exports and financial transactions that were imposed
during the crisis will also need to be phased out over time,
requiring new revenues or expenditure cuts elsewhere. Some
relief will be afforded by the low interest expense profile over
the next several years resulting from the debt exchange and the
cessation of payments on non-tendered bonds.

Rapid growth in imports reduced the current account balance to
2% of GDP in 2004 from 5.7% in 2003, and import growth is
expected to outpace export growth again in 2005, although the
current account should remain in surplus at a level similar to
last year. Marginal net capital outflows are expected, though
the overall balance of payment should be positive, allowing
international reserves to rise by about US$3.2 billion, ending
the year at US$22.1 billion. This would exceed 2006 government
debt service of about US$16.6 billion, but Fitch does not expect
international reserves to be fully and freely available to the
government because of legal restrictions on central bank
financing of the government and also because doing so could give
rise to trade interruptions.

The foreign currency issuer default rating is 'DDD' because the
government has ceased payment on bonds not tendered in the debt
exchange with face value of approximately US$18.9 billion, or
24% of eligible securities. The issuer default rating and the
ratings on these securities will remain in default until
relations with these creditors are normalized.



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

ALLERGY THERAPEUTICS: Members Resolve to Wind-Up
------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                          And

   IN THE MATTER OF Allergy Therapeutics (Bermuda) Limited

The Members of Allergy Therapeutics (Bermuda) Limited, acting by
written consent without a meeting on June 2, 2005 passed these
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 Allergy Therapeutics (Bermuda) Limited which is
being voluntarily wound up, are required, on or before June 17
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 Allergy Therapeutics
(Bermuda) Limited will be held at the offices of Messrs. Conyers
Dill & Pearman, Clarendon House, Church Street, Hamilton,
Bermuda on July 6, 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


BIJOUX SALES: Appoints Paul Harshaw as Liquidator
-------------------------------------------------
     IN THE MATTER OF THE COMPANIES ACT 1981

                      And

       IN THE MATTER OF Bijoux Sales Ltd.

The Members of Bijoux Sales Ltd. acting by Unanimous Written
Resolution on May 20, 2005, passed these resolutions:

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

2) That Paul Harshaw of Ram Re House, 2nd Floor, 46 Reid Street,
Hamilton HM 12, Bermuda be and is hereby appointed Liquidator of
the Company with full power and authority to conduct the
winding-up in accordance with the Companies Act 1981 and the
Companies (Winding Up) Rules 1982, such appointment to be
effective forthwith.

The Liquidator Informs that:

- Creditors of Bijoux Sales Ltd., which is being voluntarily
wound up, are required, on or before June 21, 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 solicitors (if any) to Paul
Harshaw, the undersigned, at Lynda Milligan-Whyte & Associates,
2nd Floor, Ram Re House, 46 Reid Street, Hamilton, HM 12,
Bermuda, the Liquidator of the said Company, and if so required
by notice in writing from the said Liquidator, and personally or
by their solicitors, 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 the Company will be
held at the offices of Lynda Milligan-Whyte & Associates, Ram Re
House, 2nd Floor, 46 Reid Street, Hamilton HM 12, Bermuda on
July 8, 2005 at 10:00 a.m. or as soon thereafter as possible,
for the purposes of considering and, if thought fit resolving:

1. the approval of and adoption of an account laid before them
showing the manner in which the winding-up of the Company has
been conducted and its property disposed of;

2. hearing any explanation that may be given by the Liquidator;

3. the manner in which the books, accounts and documents of the
Company and the Liquidator shall be disposed of; and

4. to dissolve the Company.

CONTACT: Mr. Paul Harshaw, Liquidator
         Ram Re House
         2nd Floor
         46 Reid Street
         Hamilton HM 12
         Bermuda


FOSTER WHEELER: NASDAQ Revises Trading Symbols For Warrants
-----------------------------------------------------------
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Friday that the
NASDAQ Stock Market has revised the NASDAQ trading symbols for
Foster Wheeler's Class A and Class B Common Stock Purchase
Warrants to FWLTW and FWLTZ, respectively. The Company's Common
Shares will trade under the symbol FWLT as originally announced.

Foster Wheeler will begin trading on the NASDAQ Stock Market on
June 3, 2005.

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

CONTACT: Foster Wheeler Ltd.
         Media Contact:
         Maureen Bingert
         Phone: 908-730-4444

         Investor Contact:
         John Doyle
         Phone: 908-730-4270

         Other Inquiries:
         Phone: 908-730-4000
         Web site: http://www.fwc.com


ORIENTAL MANAGEMENT: Members Hire Robin Mayor as Liquidator
-----------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                          And

         IN THE MATTER OF Oriental Management Ltd.

The Members of Oriental Management Ltd., acting by written
consent without a meeting on May 30, 2005 passed these
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 the Oriental Management Ltd., which is being
voluntarily wound up, are required, on or before June 17, 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 Oriental Management
Ltd will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
July 6, 2005 at 9:00 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



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

CEMIG: To Borrow $1.542B to Refinance Debt
------------------------------------------
Cemig (Companhia Energetica de Minas Gerais), a listed company
holding public service concessions, with share securities traded
on the stock exchanges of New York, Madrid and Sao Paulo, hereby
informs the public, in accordance with its commitment to
implement best corporate governance practices, and in accordance
with Instructions 358 and 359 of the Brazilian CVM (of 3 January
2002 and 22 January 2002 respectively), that, in line with the
company's strategic policy orientation to lengthen its debt
profile, reduce cost of debt and reduce exposure to foreign
currency, the Board of Directors approved Thursday the completed
contractual arrangements for borrowing, in the local Brazilian
bank lending market, of funds in the amount of approximately
R$1.542 billion. This funding will have a total tenor of 8
years, will be amortized in four equal consecutive annual
installments over the period 2010 to 2013, and will be used to
re-finance debt of the company and its subsidiaries Cemig
Geracao e Transmissao S.A. and Cemig Distribuicao S.A. becoming
due in the period June through December 2005.

At the same meeting the Board also approved the use of
additional funding of R$ 677 million, which had been previously
offered to Cemig, with the same tenor and repayment timetable,
for refinancing of debts becoming due in 2006 and thereafter,
for a higher financial cost or linked to foreign currency
exchange rate variation. The amount to be contracted could thus
total R$ 2.219 billion.

This transaction has significantly increased the company's
credit quality.

CONTACT: Cemig (Companhia Energetica de Minas Gerais)
         Av. Barbacena, 1.200 - 7 andar - ala B1
         Bairro Santo Agostinho
         30190-131 - Belo Horizonte - MG

         Investor Relations:
         Phone: 31 3299-3930
                31 3299-4015
         Fax: 31 3299-3934
              31 3299-3933
         E-Mail: ri@cemig.com.br
         Site: www.cemig.com.br


CFLCL: $87M Receivables Fund Particulars Expected This Week
-----------------------------------------------------------
Power group Companhia Forca e Luz Cataguazes-Leopoldina (CFLCL)
will release the details of a BRL210-million (US$87 million)
receivables fund at a road show that is scheduled to start this
week. Spanish bank Santander is managing the sale, reports
Business News Americas.

CFLCL announced plans to launch the fund last year as part of a
BRL311-million financing package. At the time, company CFO
Mauricio Botelho said it was seeking a BRL71-million, nine-year
loan from regional development bank Banco do Nordeste and was
planning to launch a BRL240-million fund.

CONTACT: Companhia Forca e Luz Cataguazes-Leopoldina
         Mauricio Perez Botelho
         Investor Relations Director
         Praca Rui Barbosa, 80 - CEP 36770-901
         Cataguases, MG
         Phone: (32) 3429-6282
         Fax: (32) 3429-6480
         E-mail: mbotelho@cataguazes.com.br


LIGHT SERVICOS: Shareholders OK $316M Debt Sale
-----------------------------------------------
Power distributor Light Servicos de Eletricidade SA moved closer
towards concluding its debt restructuring program after its
shareholders approved the proposed issuance of BRL767 million
(US$316mn) in 10-year local convertible debt.

According to Business News Americas, national development bank
BNDES has agreed to buy BRL720 million of the debt and minority
shareholders will have the option to buy the remaining BRL47
million. The debt will pay four percentage points over BNDES'
long-term interest rate TJLP, currently at 9.75% a year.

There is also a four-year grace period. After three and half
years, BNDES will have the option to convert part of the debt
into shares that will represent a stake of 12-20%, depending on
how much BNDES decides to convert.

The debt sale forms part of Light's US$1.5 billion debt-
restructuring program announced on May 18. The program includes
extending maturities on more than US$600 million of short-term
debt Light owes 12 banks and investment funds, the postponement
to 2012 from 2007 the payment of US$160 million debt and a
US$400-million capital injection by company controller, France's
EDF.

The operation is expected wrap up by June 30.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


TELEMAR: BNDES Authorizes $89M Loan
-----------------------------------
Brazilian fixed line operator Telemar Norte Leste (TNL) is to
receive a BRL215-million (US$89mn) loan from the national
development bank BNDES, says Business News Americas. BNDES
approved the loan, which Telemar will use to fulfill PGMU
universal access obligations and for education projects mainly
in north and northeast Brazil.

The project, which involves the installation of 37,000 fixed
line telephony terminals in rural areas, requires an investment
of BRL379 million. Telemar will put up the remaining balance of
the investment.

The PGMU federal universal access law forces fixed line
operators to install public phones in small villages with 100 to
300 inhabitants, while all people living in villages with more
than 300 inhabitants have the right to have their own individual
telephone line.

The deadline for these implementations is December 31, 2005.

CONTACT: Tele Norte Leste Participacoes S.A.
         Phone: (212) 815-2921
         Fax: (212) 571-3050
         Web Site: http://www.telemar.com.br/

         Investor Relations
         Email: invest@telemar.com.br
         Roberto Terziani 55 21 3131 1208
         IR Team 55 21 3131 1313 - 1317
         Fax: 55 21 3131 1155


UNIBANCO: Acquires Banco Dibens' Car Unit for BRL128M
-----------------------------------------------------
Unibanco, the country's third-largest private bank, assumed
total control of the motor vehicle financing unit of small local
bank Banco Dibens SA.

Unibanco already had a 51% stake in Banco Dibens, and will now
pay BRL128.2 million ($1=BRL2.41) to assume total control. The
bank will acquire the remaining stake through an issue of BRL8.7
million of its own shares to toll road operator Grupo Verde,
which owned the remaining stake in Banco Dibens' vehicle
financing unit.

According to Unibanco, the vehicle-financing portfolio of Banco
Dibens is worth BRL4 billion. Unibanco's total credit portfolio
reached BRL33.176 billion on March 31.



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

FIBRATOLIMA: Mayor, Liquidator Move to Rescue Firm
--------------------------------------------------
Mr. Ruben Dario Rodriguez, mayor of Colombian city of Ibague
(Tolima Department), and Mr. Alberto Valencia Ramirez,
liquidation manager of Fibratolima, designed a proposal to save
the national textile firm from slipping further into
liquidation.

According to Noticias Financieras, the two authorities met with
Agriculture minister Andres Felipe Arias to present their
proposal, which calls for the conversion of Fibratolima's debt
into stakes in the Company.

Fibratolima has debts totaling COP70 million, most of which are
owed to state entities.

The Company manufactures, mercerizes and processes all types of
textiles. It is also involved in wholesale and import/export
activities. Since its creation in 1988, the Company had
consistent working capital problems due to the high level of
debt it incurred with the purchase of equipment. These problems
eventually caused a lack of resources for the purchase of raw
materials and inventory.

In March 2002, Fibratolima closed its plants and entered into
bankruptcy restructuring proceedings.

Last year, the Superintendencia de Sociedades, the government
agency in charge of liquidations, ordered its liquidation after
the Company failed to reach an accord with its creditors over
some changes in the conditions of its debt-restructuring plan
under Colombia's bankruptcy laws.



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

ICE: Court Rejects Lawyer's Suit to Scrap Ericsson/ICE Contract
---------------------------------------------------------------
A Costa Rican lawyer failed in his attempt to have the country's
constitutional court annul a US$130-million GSM contract that
local telecoms monopoly ICE awarded Swedish equipment firm
Ericsson in June last year to install 600,000 GSM-technology
mobile lines.

Business News Americas recalls that the lawyer, Pablo Barahona,
last week asked the court to annul the contract, citing
irregularities during the bidding process.

In his suit, Barahona named as defendants interim comptroller
Marta Acosta Zuniga, Norman Villalobos Martínez, manager of the
comptroller's institutional development division and Manuel
Corrales Umana, manager of the entity's authorizations
department.

The comptroller general approved the contract in March this year
despite an internal investigation into possible bribes between
employees of ICE and Ericsson.

The court's decision to uphold the contract is an added
guarantee that the project will go ahead.

ICE hopes to begin selling lines by October 2005, when it will
try to have around 200,000 ready.



=============
E C U A D O R
=============

PETROECUADOR: President Resigns Amidst Fraud Allegations
--------------------------------------------------------
Faced with accusations he was jailed for alleged fraud in 2001,
Robert Pinzon decided to quit his post as president of state oil
company Petroecuador, reports Business News Americas.

The secretary of President Alfredo Palacio's administration,
Luis Herreria, confirmed the letter of resignation had been
received on Friday.

Reports have it that Pinzon was locked up in Litoral
penitentiary for two weeks in October 2001 and that he defaulted
on two bank loans.

Carlos Quiroz has been named as a possible replacement for
Pinzon.



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

GRUPO DESC: To Swap MXN2.43 Bln, 7-Yr Notes for New Certificates
----------------------------------------------------------------
Conglomerate DESC SA plans to swap about MXN2.43 billion in
seven-year notes for new debt certificates to be issued under a
MXN3-billion debt program, reports Dow Jones Newswires. The
issue will be in two tranches. The first, scheduled for between
the last week of June and the middle of July, will be in
exchange for up to MXN1.16 billion in existing notes denominated
in inflation indexed investment units, or UDIS, due October
2006.

According to a company spokesman, the first issue would be at
five years with a floating interest rate, and denominated either
in pesos indexed to the dollar or in UDIs.

The second issue will be in exchange for MXN1.27 billion in UDI
notes due July 2007, and the maturity will probably be the same.
The timing of the second swap offer will depend on market
conditions, the spokesman said.

DESC, S.A. de C.V. (BMV: DESC), one of the largest industrial
groups in Mexico, has net debt of US$620 million at the end of
March.

CONTACT: Ms. Maria Barona
         Ms. Melanie Carpenter
         Phone: 212-406-3690

         Contacts:
         Ms. Marisol Vazquez-Mellado
         Mr. Jorge Padilla
         E-mail: investor.relation@desc.com.mx
         Phone: (5255) 5261-8044
         Web site: http://www.desc.com.mx


LEVI STRAUSS: Wins Appeal in Legal Dispute With Mexico City Firm
----------------------------------------------------------------
On May 31, a civil appeals court in Mexico City reversed a lower
court ruling that would have required Levi Strauss &Co. (LS&CO.)
to pay approximately $45 million in damages to a former
contractor, Compania Exportadora de Maquila Comexma (Comexma).
Under the appeals court ruling, the damages award was reversed
entirely and LS&CO. was awarded court costs and attorneys' fees.

Comexma sued LS&CO. following an unauthorized anti-
counterfeiting raid on its Mexico City facilities in June 2001,
initiated by LS&CO.'s outside Mexican brand counsel. No
counterfeiting was discovered and the raid was terminated when
LS&CO. representatives confirmed that Comexma was an authorized
manufacturer at the time.

In their original lawsuit, Comexma alleged that the raid
resulted in the loss of prestige in the commercial market, the
loss of business and the need to shut down the company. The
trial court awarded Comexma approximately $24.5 million in
direct damages, and approximately $20.5 million in damages for
harm to its reputation. LS&CO. appealed the trial court decision
to Mexico City's civil appellate court.

In overturning the lower court's ruling, the appeals court found
that there was no direct relationship between the raid and
Comexma's decision to close the facility, the damages claimed by
Comexma were not caused by the raid, and there was no intent by
LS&CO. to harm the former contractor.

MEDIA CONTACTS:  E.J. Bernacki
                 (415) 501-6262

                 Jeff Beckman
                 (415) 501-1698



TV AZTECA: Releases Details on Newly Adopted Resolutions
--------------------------------------------------------
SUMMARY OF RESOLUTIONS ADOPTED AT THE GENERAL EXTRAORDINARY
SHAREHOLDERS' MEETING OF TV AZTECA, S.A. DE C.V.,

At the corporate offices of the Company, and in the absence of
Mr. Ricardo B. Salinas Pliego, Chairman of the Board of
Directors, Mr. Francisco Xavier Borrego Hinojosa Linage was
designated by unanimous vote of all shares represented at the
Meeting as President of the Meeting and Mr. Othon Frias
Calderon acted as Secretary of the Board of Directors.

I. Analysis and resolution on the convenience to continue with
the American Depositary Receipts Program (ADRs) in the United
States, and if appropriate, the amendment to the Company's By-
Laws.

By a majority of the votes compromising 99.85% of the shares of
the Company, the following resolutions were adopted:

FIRST. The shareholders approved the cancellation of the
American Depositary Receipts ("ADRs") program and the
termination by the Company of the Deposit Agreement, dated as
of August 15, 1997, among the Company, The Bank of New York
("BONY") and the holders of the corresponding ADRs.

SECOND. The shareholders approved the modification of the Form
F-6 filed by the Company with the Securities and Exchange
Commission ("SEC") with the purpose of reducing the number of
ADRs registered under said Form to zero.

THIRD. The shareholders approved an amendment to the Deposit
Agreement in order to reduce from 2 years to 60 days the time
period which holders of the ADRs have to exercise their right
to exchange their ADRs for shares of the Company (or the
securities representing them) and for BONY to sell the shares
of the Company (or the securities representing them)
represented by the ADRs then held by BONY.

FOURTH. The shareholders approved to authorize any Attorney-in-
fact of the Company with faculties to execute acts of
administration, to carry-out and execute in the name and on
behalf of the Company, all acts, notifications and processes
necessary to comply with the resolutions adopted at such
Shareholders' Meeting, including but not limited to the
termination of the Deposit Agreement, amendment of the Form F-
6, notification to BONY and the New York Stock Exchange and any
other entity or third party, including local and foreign
authorities, and take all actions that may be required in order
to carry out the resolutions adopted therein.

FIFTH. The shareholders approved the amendment of Clause
Twenty-Six of the By-laws of the Company in the order to
include the non-delegable faculty of the General Extraordinary
Shareholders' Meeting of the Company to authorize any act,
agreement or mechanism involving the shares of the Company (or
the securities representing them, including CPOs), which have,
among others, the following effects:

   (i)  Submit the Company to the jurisdiction or authority
            of a foreign authority, and/or

   (ii)  Compel the Company to furnish to any foreign
            authority, organism or market with reports or
            information regarding the Company or any act
            regarding the Company, or its assets, operations,
            directors, officers or shares (or the securities
            representing them, including CPOs).

II.  Appointment of Special Delegates to formalize the
resolutions adopted at the Meeting.

By unanimous vote of the shares that represent the capital
stock of the Company, the following resolution was adopted:

FIRST. The shareholders approved the appointment as delegates
of Mr. Francisco Xavier Borrego Hinojosa Linage and Othon Frias
Calderon, in order that, jointly or severally, they may (i)
appear before a Notary Public of their choice to notarize the
minutes of the Meeting; (ii) undertake all the necessary acts
to formalize and comply with the resolutions adopted in the
Meeting, including the preparation and presentation, by
themselves or by third parties, of any letter, schedule,
report, consent, document and additional information required
to be filed in accordance with the applicable laws of the
United Mexican States and/or the United States of America; and
(iii) generally take all actions that may be required in order
to carry out the resolutions adopted therein.

CONTACT: TV Azteca, S.A. de CV
         Phone: 55 3 099 1313
         Web Site: http://www.tvazteca.com.mx



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

DORAL FINANCIAL: Murray, Frank Files Class Action Suit
------------------------------------------------------
Murray, Frank & Sailer LLP has filed a class action lawsuit in
the United States District Court for the Southern District of
New York on behalf of all securities purchasers of Doral
Financial Corporation ("Doral" or "the company") (NYSE:DRL)
between May 15, 2000 and May 26, 2005, inclusive (the "Class
Period").

The Complaint charges Doral and certain of the Company's
executive officers with violations of federal securities laws by
issuing materially false and misleading financial statements to
the investing public. Doral is a financial services company
engaged in mortgage banking, banking, institutional securities
operations, and insurance agency activities in the New York City
metropolitan area and in Puerto Rico. A substantial portion of
its business is the offering of various mortgage loan products
secured by single family residences.

The Complaint alleges that during the Class Period defendants
failed to disclose and/or misrepresented material adverse facts,
including that: (a) the Company was using overly aggressive and
unrealistic assumptions to value its derivative portfolio of
interest-only strips ("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.

On January 19, 2005, the Company warned of potential trouble
with its hedging strategy against interest rate changes through
its use of a derivative portfolio of IO Strips. Subsequently, on
March 15, 2005, Doral filed its Annual Report with the SEC in
which the Company disclosed for the first time its use of overly
aggressive assumptions in valuing its IO Strips portfolio. The
revelation was followed by downgrades of the Company's common
stock by numerous securities analysts and Standard & Poor's
lowered its outlook for Doral's long-term debt from stable to
negative, expressing "concern over the sustainability of the
Company's business model." In a matter of days Doral stock
plummeted from $38.29 per share to $21.50 per share in extremely
heavy volume.

On April 19, 2005, the Company announced that it had 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") and estimated that the correction
would 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. On May 27, 2005, the Company confirmed in a press
release that it would reduce the recorded fair value of its
floating rate interest only strips by approximately $600
million.

Murray, Frank & Sailer LLP and its predecessor firms have
devoted its practice to shareholder class actions and complex
commercial litigation for more than thirty years and have
recovered hundreds of millions of dollars for shareholders in
class actions throughout the United States.

If you purchased or otherwise acquired Doral securities on any
world exchange between May 15, 2000 and May 26, 2005, and
sustained damages, you may, no later than June 20, 2005, move
the Court to serve as lead plaintiff. Shareholders outside the
United States may also join the action, regardless of which
exchange was used to purchase the securities. To serve as lead
plaintiff, however, you must meet certain legal requirements.
You can join this class action as lead plaintiff online at
http://www.murrayfrank.com/CM/NewCases/NewCases.asp.If you
would like to discuss this action, this announcement, or your
rights and interests, please contact plaintiff's counsel Eric J.
Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.

CONTACT: Murray, Frank & Sailer LLP
         Eric J. Belfi
         Christopher S. Hinton
         (800) 497-8076 or (212) 682-1818
         Fax: (212) 682-1892
         E-mail: info@murrayfrank.com
         URL: www.primezone.com/ca



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

URAGUA: OSE Officially Rejects Contract
---------------------------------------
State water utility OSE has formally rescinded private water
operator Uragua's contract, reports Business News Americas.
Urugua spokesman Ernesto Kreimerman said the Company regrets
that the state made the decision before the June 28 court date,
which was to settle the issue.

However, Uragua's customers in the city of Maldonado need not
worry about the decision as the public sector will absorb all of
them, according to housing, territorial planning and environment
minister Mariano Arana.

In addition, OSE will take in 115 of Uragua's workers as
contract employees.



                            ***********


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

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