TCRLA_Public/050614.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 14, 2005, Vol. 6, Issue 116

                            Headlines

A R G E N T I N A

AGROVEN S.A.: Court OKs Creditor's Bankruptcy Call
AGUAS PROVINCIALES: Banco de Galicia Clings to 22.5% Stake
ELEMAR CARGAS: Reorganization Concluded
FRIGORIFICO: Debt Payments Halted, Set To Reorganize
FULGORES S.A.: Initiates Bankruptcy Process on Court Order

ONRAK S.A.: Files Petition to Reorganize
RUDVIG S.A.: Court Rules Bankruptcy
SERFA S.A.: Declared Bankrupt by Court
SHIPTRADE S.A.: Court Orders Liquidation
TELECOM ARGENTINA: Court Approval of APE Becomes Final

TELECOM ARGENTINA: No New Debt Issuance in the Offing
TRANSTRAM S.R.L.: Debt Payments Halted, Moves to Reorganize


B E R M U D A

FOSTER WHEELER: Awarded EPCm Contract With Woodside Energy


B R A Z I L

BANCO ITAU: La Caixa Intends to Sell Stock Participation
ELETROPAULO METROPOLITANA: Ordered to Bury Cables
NEWFIELD EXPLORATION: Fitch Assigns `BB+' to Sr. Unsec. Rating
NII HOLDINGS: Enters Into Agreement to Convert Notes Into Shares
USIMINAS: Integration of Cosipa Ups Operating Profit


C H I L E

MANQUEHUE NET: GTD Sheds Light on Acquisition Reports


M E X I C O

LFC: Opens Tender for Fourteen 32MW Gas-Fired Projects
SATMEX: May Seek More Time to Respond to Bankruptcy Petition


P U E R T O   R I C O

DORAL FINANCIAL: Moody's Downgrades Senior Debt Rating to Baa3


U R U G U A Y

ANCAP: PDVSA to Supply 1Mb Crude in August

     -  -  -  -  -  -  -  -


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

AGROVEN S.A.: Court OKs Creditor's Bankruptcy Call
--------------------------------------------------
Agroven S.A. entered bankruptcy after Court No. 12 of Buenos
Aires' civil and commercial tribunal approved a bankruptcy
motion filed by Mr. Alejandro Patilis, reports La Nacion. The
Company's failure to pay its debt prompted the creditor to file
the petition.

Working with the city's Clerk No. 23, the court assigned Mr.
Ricardo Randrup as trustee for the bankruptcy process. The
trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claim to the
trustee before Aug. 1, 2005.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Agroven S.A.
         Macias 675
         Buenos Aires

         Mr. Ricardo Randrup, Trustee
         Avenida Cordoba 1351
         Buenos Aires


AGUAS PROVINCIALES: Banco de Galicia Clings to 22.5% Stake
----------------------------------------------------------
Argentine bank Banco de Galicia will not let go of its 22.5%
stake in Aguas Provinciales de Santa Fe, reports Business News
Americas.

Banco de Galicia affirmed its commitment to the utility a few
days after local water utility Latin Aguas announced it has
signed a letter of intent to buy a controlling 66% share from
French Suez Environment.

Latin Aguas is aiming to take over services within two months
and plans to invest some ARS100 million (US$34.5mn) within three
years.

Since Suez's announcement in May that it has decided to pull out
of its Santa Fe concession, several companies have come out,
expressing their interest in buying a stake in Aguas
Provinciales.

Among those interested are Uruguayan firms CSI Ingenier¡a and
Ciemsa; Saur and South Wather, which operate Mendoza city's
water services; Italian Company Impregilo; and 5 de Septiembre,
a consortium made up of former employees from Aguas Argentinas
and Obras Sanitarias.

All of the companies interested in a piece of Aguas Provinciales
want to keep Banco de Galicia as a shareholder because of the
importance of having a financial partner in the equation.


ELEMAR CARGAS: Reorganization Concluded
---------------------------------------
The settlement plan proposed by Elemar Cargas S.A. for its
creditors acquired the number of votes necessary for
confirmation. As such, the reorganization plan has been endorsed
by Court No. 14 of Buenos Aires' civil and commercial tribunal
and will now be implemented by the Company.

CONTACT: Elemar Cragas S.A.
         Buenos Aires


FRIGORIFICO: Debt Payments Halted, Set To Reorganize
----------------------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal is
now analyzing whether to grant Frigorifico La Colorada 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 May 12, 2005. Clerk No. 3 is
assisting the court on the Company's case.

CONTACT: Frigorifico La Colorada S.A.
         Avenida Belgrano 535
         Buenos Aires


FULGORES S.A.: Initiates Bankruptcy Process on Court Order
----------------------------------------------------------
Fulgores S.A., which is domiciled in Buenos Aires, entered
bankruptcy as the city's civil and commercial Court No.13 ruled
that it is "Quiebra." Infobae reveals that the city's Clerk No.
25 aids the court on the process.

The court appointed Mr. Mario Gabriel Sogari as the Company's
receiver. Creditors must submit their proofs of claim to the
receiver for verification before Aug. 10, 2005. The receiver is
also required to prepare the individual and general reports on
the bankruptcy process.

CONTACT: Mr. Mario Gabriel Sogari, Trustee
         Montevideo 708
         Buenos Aires


ONRAK S.A.: Files Petition to Reorganize
----------------------------------------
Onrak S.A. filed a "Concurso Preventivo" motion, reports La
Nacion. The Company is seeking to reorganize its finances
following cessation of debt payments early this month. The
Company's case is pending before Court No. 2, assisted by Clerk
No. 3.

CONTACT: Onrak S.A.
         Bruselas 567
         Buenos Aires


RUDVIG S.A.: Court Rules Bankruptcy
-----------------------------------
Buenos Aires' civil and commercial Court No. 13 decreed the
bankruptcy of Rudvig S.A., reports Infobae. The Company will
kick off the process with Mr. Carlos Alberto Yacovino as
receiver, who will verify creditors' claims until Aug. 2, 2005.
The Company's case will conclude with the liquidation of its
assets to repay creditors. Clerk No. 25 assists the court in
handling the proceedings.

CONTACT: Mr. Carlos Alberto Yacovino, Trustee
         Jean Jaures 933
         Buenos Aires


SERFA S.A.: Declared Bankrupt by Court
--------------------------------------
Serfa S.A. is now "Quiebra" or bankrupt, says Infobae. Buenos
Aires' civil and commercial Court No. 13 decreed the Company's
bankruptcy and appointed Elsa Ester Andrade, as receiver for the
Company. Ms. Elsa Ester Andrade will be reviewing creditors'
claims until Aug. 1, 2005. Analyzing these claims is important
because the outcome of the process will determine the amount
each creditor will get after all the assets of the Company are
liquidated. The court, which is aided by Clerk No. 25, will
conclude the bankruptcy process by liquidating its assets to
repay creditors.

CONTACT:  Ms. Elsa Ester Andrade, Trustee
          Avda Callao 449
          Buenos Aires


SHIPTRADE S.A.: Court Orders Liquidation
----------------------------------------
Shiptrade S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 9 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 Ms. Griselda Isabel
Eidelstein as trustee. Ms. Eidelstein will be reviewing
creditors' proofs of claim until Aug. 9, 2005. The verified
claims will serve as basis for the individual reports to be
presented for court approval on Sep. 20, 2005. The trustee will
also submit a general report of the case on Nov. 1, 2005.

Clerk No. 18 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:  Shiptrade S.A.
          San Martin 551
          Buenos Aires

          Ms. Griselda Isabel Eidelstein, Trustee
          Lambare 1140
          Buenos Aires


TELECOM ARGENTINA: Court Approval of APE Becomes Final
------------------------------------------------------
Telecom Argentina S.A. (NYSE: TEO) (BASE: TECO2) ("Telecom
Argentina") announced that, as of Friday, the court approval of
its Acuerdo Preventivo Extrajudicial ("APE") has become final.
As informed on May 30, 2005, the Argentine court approved on May
26, 2005, the APE that was entered into by Telecom Argentina and
its financial creditors.

Telecom Argentina will soon initiate, as ordered by the
Argentine court, the publication of notices in widely circulated
national and foreign newspapers informing non-consenting
creditors of the court's decision to permit them to select among
any of the options offered by Telecom Argentina in its APE,
within ten (10) court days following the last publication of
notices. The Argentine court has provided that non-consenting
creditors that do not submit an election before the Argentine
court within such timeframe shall be allocated to Option A.

    For additional information, contact:

     Telecom Argentina S.A.
     Pedro Insussarry
     +011-54-11-4968-3743

     Moira Colombo
     +011-54-11-4968-3628

     Gaston Urbina
     +011-54-11-4968-3627

     Morgan Stanley & Co. Incorporated
     Carlos Medina
     +1-212-761-6520


     MBA Banco de Inversiones S.A.
     Diego Steverlynck
     +011-54-11-4319-5865

Telecom Argentina is a Company incorporated under the laws of
Argentina with its registered office at Alicia Moreau de Justo
50, Piso 10, C1107AAB, Buenos Aires, Argentina. Telecom
Argentina is one of Argentina's largest telecommunications
operators. It provides local and long-distance telephony, mobile
communications (through its subsidiary Telecom Personal), data
and Internet access services in Argentina. It also operates a
mobile license in Paraguay through one of its subsidiaries.
Telecom Argentina common stock is listed on the Buenos Aires
Stock Exchange under the ticker "TECO2" and Telecom Argentina
ADSs are listed on the New York Stock Exchange under the ticker
"TEO".


TELECOM ARGENTINA: No New Debt Issuance in the Offing
-----------------------------------------------------
The conclusion of fixed-line provider Telecom Argentina's debt
restructuring would give the Company access to capital markets
once again, says Dow Jones Newswires.

But according to analysts, the telecom outfit is unlikely to
take on new debt anytime soon, as its cash position and revenue
streams from cellular and Internet operations should
sufficiently cover its capital expenditures in the near term.

"They're very solid and they have their market share secured, so
I don't see any complications," said Freddy Vieytes, an analyst
at local brokerage Puente Hermanos. "Because of that, they won't
need to look for outside financing."

Telecom Argentina may issue new peso debt to replace foreign-
denominated obligations at the end of the year or early next,
according to the Company's Manager of Institutional Relations,
Pedro Insussary.

"The first objective is to close the restructuring; the second
is to reduce the level of indebtedness," Insussary said. "And on
this base, we'll see where we are and what alternatives the
Company has to replace (existing) debt."

Insussary said the Company designed its restructuring to ensure
it wouldn't need new debt for its investment needs.

Analysts also say there's no rush for Telecom Argentina to issue
new debt to finance capital expenditures while the Company's
strong revenue from its mobile telephony and Internet businesses
is still buoying the Company, as it did during the three years
since the country's financial crisis.

However, analysts warned that Telecom Argentina can't initiate
overly aggressive investment plans just yet, since the debt
restructuring agreement imposes certain limits on capital
expenditures. This hampers the telecom's ability to respond to a
fiercely competitive and fast-changing cellular phone market.


TRANSTRAM S.R.L.: Debt Payments Halted, Moves to Reorganize
-----------------------------------------------------------
Court No. 26 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
Company Transtram S.R.L., says La Nacion.

The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments on
June 22, 2001.

The city's Clerk No. 52 assists the court on this case.

CONTACT: Transtram S.R.L.
         Avenida Rivadavia 2462
         Buenos Aires



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

FOSTER WHEELER: Awarded EPCm Contract With Woodside Energy
----------------------------------------------------------
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Friday that its
Australian subsidiary Foster Wheeler (WA) Pty Ltd. has been
awarded an engineering, procurement and construction management
(EPCm) contract with Woodside Energy Ltd. (Operator) on behalf
of the North West Shelf Venture following final investment
approval by its six joint-venture participants to invest A$2
billion on a Phase V LNG expansion project to be built at
Karratha, Western Australia. Foster Wheeler is leading a joint
venture with WorleyParsons Services Pty Ltd. to execute this
project, which involves the addition of a fifth liquefied
natural gas (LNG) processing train with a production capacity of
4.2 million metric tonnes a year to the existing 11.7 mtpa LNG
complex.

The contract value was not disclosed. The project will be
included in the Company's second-quarter bookings.

"This latest award reinforces our position in LNG, which is a
core business for Foster Wheeler, and demonstrates Woodside's
and its five international partners' confidence in our ability
to meet their business objectives. We are delighted that the
North West Shelf Venture has secured final investment approval
for this project to proceed and for the full EPCm contract to be
awarded," said Steve Davies, chairman and chief executive
officer of Foster Wheeler Energy Limited. "We have been working
with Woodside (NWSV Operator) for a number of months, finalizing
the project definition and achieving an early start on
engineering. This will allow us to maintain the scheduled start-
up date of the fourth quarter of 2008.

"Foster Wheeler has proven experience in the project management,
engineering and construction of complex, world-scale projects,
including the construction of LNG liquefaction facilities and
offsite pre-assembly. That, combined with our partner's local
knowledge, creates a high-performing team, fully focused on
delivering the North West Shelf Venture's objectives: a safe,
successful, and high-quality facility."

Woodside's Director of North West Shelf Ventures, Jack Hamilton,
said the expansion would bring significant economic and social
benefits to the remote Pilbara region of Western Australia where
its gas processing facilities are located, as well as Western
Australia and Australia.

"Our plant will be one of the largest single LNG complexes in
the Asia-Pacific region following expansion," Dr. Hamilton said.

"The Venture's latest investment follows last year's
commissioning of a fourth LNG processing train and second
trunkline and, combined, these major projects will have enabled
the Venture to effectively double its LNG capacity in
approximately four years."

The expansion project also includes an additional fractionation
unit, acid gas recovery unit, boil-off gas compressor, two new
gas turbine power generation units, a second loading berth and a
new fuel gas system compressor. For additional information on
the Phase V Expansion, please refer to Item 5 under Notes to
Editors below.

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



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

BANCO ITAU: La Caixa Intends to Sell Stock Participation
--------------------------------------------------------
Investimentos Itau S.A ("Itausa"), Banco Itau holding Financeira
S.A. ("Itau") and Caja De Ahorros Y Pensiones De Barcelona ("La
Caixa") informed the market that La Caixa has announced its
intention of gradually selling its preferred stock participation
in Itau via the Sao Paulo Stock Exchange (Bovespa).

This decision is the result of changes in La Caixa's investment
policy contained in its strategic plan following the adoption of
the new IFRS - International Financial Reporting Standards / IAS
- International Accounting Standards, which came into effect in
the European Union as from January 1 2005. These standards
require an investment stake of at least 20% before results can
be consolidated. Should this not be the case, such investments
are booked at cost and recognized as income from dividends
and/or as interest on equity capital.

It has therefore been decided in accordance with the highest
principles governing the strategic mutual interests between the
parties concerned, that the current Stockholders' Agreement is
to be terminated. In so doing, Itau S.A. relinquishes its
preemptive rights to the acquisition of the shares (3.12% of
Itau S.A.'s total capital stock), and consequently La Caixa
shall no longer be eligible to appoint a member to the Board of
Directors, a member to sit on the International Advisory Board,
and a Managing Director as permitted under the above-mentioned
Agreement.

Itau intends to buy back these shares to be held as treasury
stock at a time when prevailing market conditions are conducive.
Management believes the eventual share buy-back creates
stockholder value by increasing earnings per share (EPS),
neither affecting Itau's operations, nor significantly changing
its capital adequacy ratios and limits.

The expected consequence for Itau in terms of adjustments to its
equity pick-up, bearing in mind that the shares in question
shall be entirely acquired by Itau (based on the average share
price for June 3 2005) translates into a reduction of
approximately R$ 520 million in its result. However, this does
not represent any disbursement, at the same time contributing to
an increased stake in ITAU's total capital stock from 46.8% to
48.3%.

The partnership with La Caixa will continue through the
investment held in Banco BPI S.A. and the close cooperation
involving capital flows between Brazil and the Iberian
Peninsula.

CONTACT: Banco Itau Holding Financeira S.A.
         Investor Relations
         Mr. Geraldo Soares
         Investor Relations Superintendency
         Praca Alfredo Egydio de Souza Aranha 100
         Torre Conceicao - 11   04344-902
         Sao Paulo
         Phone: +5511 5019-1549
         Fax: +5511 5019-1133
         URL: http://www.e-potecario.com.ar/home.aspx


ELETROPAULO METROPOLITANA: Ordered to Bury Cables
-------------------------------------------------
Power distributor Eletropaulo Metropolitana Eletricidade de Sao
Paulo S.A. (Bovespa: ELPL3 and ELPL4) will have to bury all
existing cables in the metropolis in five years, according to a
bill approved by the Sao Paulo city council, reports Business
News Americas.

According to market estimates, the costs of burying cables could
reach BRL60 billion (US$24 billion).

The new law, which still has to be sanctioned by the city's
mayor, also forces Eletropaulo to replace its 700,000 power
poles in the city with trees.

In addition, the new law bars Eletropaulo from laying overhead
cables in new network extensions.

Eletropaulo distributes power to some 4 million clients in the
city through a distribution and transmission network 23,000km
long. Eletropaulo operates over 70,000 overhead transformers on
the city poles.

CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
         Investor Relations Manager
         Ms. Clarice Silva Assis
         E-mail: clarice.assis@aes.com
         Phone:(55 11) 2195-2229
         Fax:(55 11) 2195-2503


NEWFIELD EXPLORATION: Fitch Assigns `BB+' to Sr. Unsec. Rating
--------------------------------------------------------------
Fitch Ratings has initiated coverage of Newfield Exploration
Company (Newfield) and assigned a rating of 'BB+' to the
Company's senior unsecured debt and $600 million unsecured
credit facility, and a rating of 'BB-' to the Company's senior
subordinated notes. The Rating Outlook is Stable.

The ratings are supported by the Company's conservative
management team and growth strategy (including the Company's
hedging program), modest production costs and debt levels
relative to the Company's peer group, the high percentage of
assets operated by the Company, and the significant
diversification of its asset base in recent years. Offsetting
factors include higher finding and development costs and a lower
reserve-to-production ratio (reserve life) relative to the
Company's peer group, as well as concerns over the potential for
additional debt to finance future acquisitions. The Company,
however, also has a history of reducing debt following
transactions, reflected by the repayment of $135 million of
revolver borrowings since Sept. 30, 2004, reducing total balance
sheet debt to $933 million at March 31, 2005.

Like other independent upstream oil companies, Newfield is
generating significant cash from operations and is reinvesting
the bulk of the cash back into growing its reserve base. Cash
flow from operations for the last 12 months ending March 31,
2005 totaled $1.04 billion with capital expenditures of $958
million. Credit protection metrics remain very strong as the
Company generated EBITDA of $1.16 billion over the 12-month
period, which provided interest coverage of 19.6 times (x) and
leverage, as measured by debt-to-EBITDA, of only 0.8x. Leverage,
as measured by debt to barrel of oil equivalent (boe) of proven
reserves were reasonable at year-end 2004 at $3.34/boe, and debt
to proven developed producing reserves (PDPs) at $4.45/boe.
Liquidity remains strong with only $63 million of cash
borrowings and $25 million of letters of credit (LOCs) under its
credit facility and $31 million of cash on hand.

Newfield's focus has historically been on high production,
shortlived reserves to maximize the value of the Company's
investments. This has been the strategy since Newfield was
founded in the late 1980s, when the Company began acquiring
assets in the high decline, shallow water Gulf of Mexico. Under
this approach, the Company also benefits from having no
lingering proven undeveloped reserves (PUDs) on its books. The
strategy, however, also drives the key negative metrics in the
analysis of Newfield -- higher finding and development costs and
lower reserve life -- which are discussed further below.

Newfield now has the size and flexibility to diversify its
exploration portfolio, including its deep water and
international efforts. The Company's 2005 capital budget of $950
million includes $285 million targeted for exploration.
Newfield's portfolio of exploration projects reflects a balance
of low-risk, low-cost opportunities as well as higher risk,
higher return opportunities such as the high-profile Treasure
Island prospect being drilled by Newfield's partner, ExxonMobil.
Another core strength of Newfield is the high percentage of
properties the Company operates as well as its mitigation of
risk on its non-operated properties, such as Treasure Island,
where Newfield's partners often pick up the bulk of the upfront
exploration costs for the opportunity to participate in the
play.

The Company supplements its organic efforts (100% reserve
replacement three-year average from 2002 to 2004) with
opportunistic acquisitions, including the purchase of Inland
Resources Inc. (Inland) in August 2004. Newfield's proven
reserves have nearly doubled over the last three years to nearly
300 million barrels of oil equivalent (mmboe) at the end of 2004
from 156 mmboe at the end of 2001. Total reserve replacement has
averaged 236% annually over the period. Newfield's approach to
booking estimated reserves can be viewed as 'middle of the
road,' as the Company has avoided the pitfalls of being too
conservative or too aggressive in its estimates. As a result,
reserve reports reflect only minimal revisions each year, a key
strength of the Company.

Although Newfield often pays what Fitch has historically viewed
as full price for acquisitions, the Company also locks in the
economics of the transactions through hedging a significant
percentage of its production. Newfield currently has more than
70% of its oil and gas production hedged through early 2006,
primarily through swaps and collars, as well as significant
hedges on its oil production through 2010. Newfield also manages
its capital budget within its cash from operations and has been
free cash flow positive since 2001. Given the location and
quality of the Company's core reserves, the bulk of its
production has historically been priced at prevailing Henry Hub
and West Texas Intermediate crude prices, which is reflected in
the Company's robust price realizations (average of $33.34/boe
in 2004).

Through the major acquisitions completed in recent years,
Newfield now has a foothold in four major basins in the U.S. as
well as modest offshore international operations in Malaysia,
the North Sea, China, and Brazil. The Company has yet to report
any significant results from its international efforts, with
only 2.5% of 2004 production and less than 2% of reserves at
year-end coming from overseas. With development work ongoing
with both the Grove discovery in the North Sea and the Abu
Cluster offshore Malaysia as well as continued progress on the
plan of development for the Bohai Bay project offshore China,
Fitch expects increasing reserve bookings from international
operations in 2005 and beyond.

Despite industrywide cost inflation in recent quarters, Newfield
remains very competitive with its production costs relative to
its peers, averaging $6.85/boe of total operating costs in 2004.
Costs have also remained under control despite the significant
diversification in the Company's asset base in recent years. The
lower costs have also helped to offset the Company's higher
finding, development and acquisition costs (FD&A of $13.16/boe
average from 2002 to 2004), giving the Company a significant
free cash flow per boe of production ($11.50/boe) relative to
its peer group.

Newfield's high finding costs relative to its peer group
($13.16/boe three-year average FD&A) is a key concern for Fitch.
The primary drivers for the higher costs have been the nature of
the Company's core asset base in Gulf of Mexico, the efforts in
recent years to grow and diversify its reserve base, and the
desire to capitalize on the current high price environment.
While this metric may improve in coming years due to the
Company's larger and more diversified asset base as well as
through success from its exploration efforts, Fitch expects the
Company to continue to manage its investments by maximizing the
economics of its drilling efforts and future acquisitions.

The second core concern with Newfield is its low reserve life
relative to its peer group. As noted, this stems from the
Company's historical focus on high-value, high-decline
properties. Due to the Company's diversification efforts in
recent years, the proven-reserves-to-production ratio has
improved significantly from 5.3 years at the end of 2001 to 7.3
years at the end of 2004. Further improvement, however, would
require major changes to the Company's strategy and, ultimately,
its asset base, which Fitch currently views as unlikely.

Despite Newfield's portfolio of drilling opportunities, Fitch
views the likelihood of further sizable acquisitions to be
fairly high. The rising costs to buy companies and properties,
however, have placed increasing pressure on the leverage
statistics of Newfield and other upstream companies relative to
the low debt/boe metrics seen in recent years. The August 2004
acquisition of Inland Resources for $575 million added 54
million boe of proven reserves at a price of $10.58/boe.
Newfield funded the transaction conservatively with $325 million
of 6-5/8% 10-year notes and $323 million of common stock. A
point of note, however, is that given rising acquisition prices,
at 50% debt the Inland transaction was leveraging to Newfield
with $5.29/boe of the funding coming in the form of debt,
significantly higher than the Company's year-end 2003 debt/boe
of $2.92.

Fitch believes, however, that management is not willing to grow
for growth's sake and, as a result, the risk of the Company
making a bad acquisition or overleveraging appears limited. The
Company also has a history of reducing debt following
transactions, as seen since the Inland transaction. The inherent
risks of future acquisitions are also mitigated by the Company's
hedging strategy, its in-house analyses of potential purchases,
and the flexibility afforded by the Company's larger asset base.

While Newfield continues to perform very well under the current
commodity environment, the higher finding and development costs
and low reserve life limit positive rating momentum at this
point in time. Negative rating action would likely be considered
under a highly leveraging acquisition.

Newfield is a mid-sized oil and gas exploration and production
Company headquartered in Houston. The Company has operations in
several major regions of the United States (shallow and deep
water Gulf of Mexico, Mid-Continent, South Texas, and Rocky
Mountains), as well as international offshore operations in the
North Sea off of the United Kingdom, Malaysia, China, and
Brazil. At year-end 2004, the Company's reserves had grown to
nearly 300 mmboe, of which 75% was proven developed and 70%
natural gas.


NII HOLDINGS: Enters Into Agreement to Convert Notes Into Shares
----------------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) (the "Company") entered on
June 8, 2005, into an agreement with a holder of US$40.0 million
in principal amount of the Company's 3.5% Convertible Notes due
2033 to convert such Notes into 1,500,000 shares of the
Company's common stock, par value $0.001 per share, pursuant to
the terms of the Indenture dated as of September 16, 2003
between the Company and Wilmington Trust Company. As have
previously reported, the Notes, which the Company issued
initially in 2003 and which were not convertible at that time,
are currently convertible pursuant to the terms of the
Indenture. In consideration for such conversion, the Company
made a cash payment of approximately $4.4 million to the holder.
The Company's issuance of the shares of common stock in this
transaction was made pursuant to the exemption from registration
provided by Section 3(a)(9) of the Securities Act of 1933, as
amended. The conversion occurred on June 10, 2005.

NII Holdings, Inc., a publicly held Company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and International
Direct Connect(SM), an extension of Direct Connect(R), a radio
feature that allows Nextel subscribers to communicate instantly
and across national borders.

CONTACT: NII Holdings
         Investor Relations:
         Tim Perrott
         Phone:(703) 390-5113
         Email: tim.perrott@nii.com

         Media Relations:
         Claudia E. Restrepo
         Phone:(786) 251-7020
         Email: claudia.restrepo@nii.com

         URL: http://www.nii.com


USIMINAS: Integration of Cosipa Ups Operating Profit
----------------------------------------------------
Steelmaker Usiminas sees a 3.9% growth in its operating profit
in the 2Q05 thanks to continued synergies from its consolidation
of flat steel subsidiary Cosipa, reports Business News Americas.

"For the rest of [2Q05], results will approach expectations,
with an outlook for growth in operating profit of 3.9%," the
Company said a filing to securities regulators (CVM). "The
tendency for operating results points to a good second half as
well, nearing expectations."

The Company has generated annual savings of US$170 million since
the consolidation of Sao Paulo-based Cosipa. However, the
Company had to establish new timetables for some of its projects
due to delays related to environmental licensing and bidding
processes, Usiminas said.

Meanwhile, the Usiminas board gave its go-ahead signal for the
Company to begin negotiations to participate in Planaris, a
holding Company for the Amazonia consortium (which controls
Venezuelan steelmaker Sidor), Mexican steelmaker Hylsamex and
Argentina's Siderar, both Techint companies.

The board restricted Usiminas investment in Planaris to US$100
million. The Company will have a minimum 10% stake in the new
holding Company.

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



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

MANQUEHUE NET: GTD Sheds Light on Acquisition Reports
-----------------------------------------------------
Corporate services provider GTD Teleductos stressed to stock
market regulator SVS that it has not yet signed any agreement to
acquire 100% of Manquehue Net, relates Business News Americas.

Reports surfaced last week that GTD has agreed to buy 100% of
Manquehue Net for US$117 million. GTD will pay US$32 million for
Manquehue's assets as well as pay off Manquehue's debt totaling
US$85 million, according to reports.

Margarita Andrade, of Chilean credit ratings agency Humphreys,
had said that GTD's acquisition would lead to a favorable
result.

"Manquehue net has gone through several changes in the last few
years and is just now starting a period with positive financial
results. So obviously a change in controllers is positive
because it should lead the Company to a more stable path,"
Andrade said.

Manquehue, which has been in the red since it was launched in
2000, expects to report profits this year, saying it will focus
on providing broadband service, the only business area that has
recorded positive growth with a client base of 15,000
connections.

"Closing this year in the black is independent of the change in
ownership, because it has more to do with management, which has
certainly performed well," Andrade added.

Manquehue offers fixed line telephony services and Internet
access to the corporate and residential segments in Chile's
metropolitan region, with 100,000 clients and a 2.7% market
share.

The Company is currently owned by gas distribution firm Metrogas
(25.54%), US telecoms holding Company Williams International
Telecom (23.52%), Capital Trust (19.14%), Chile's Rabat family
(19.13%) and Xycom Devel Chile (12.67%).



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

LFC: Opens Tender for Fourteen 32MW Gas-Fired Projects
------------------------------------------------------
State-owned power distributor Luz y Fuerza del Centro (LFC) has
launched the tender to build fourteen 32MW natural gas-fired
projects in the DF and Edomex, Business News Americas reports.

An LFC source revealed that interested bidders can purchase
bidding rules until July 7. Technical bids and economic bids
will be opened on July 13 and August 10, respectively. LFC will
award the 14 contracts in August.

Construction of all 14 plants will begin immediately after the
contracts are awarded, with operations set for end-2006 or early
2007.

According to the source, state oil company Pemex will supply the
projects with natural gas.

Over the last few years, LFC has struggled to develop much-
needed generation projects to avoid the system from collapsing
in high-demand areas in coming years due to lack of resources.


SATMEX: May Seek More Time to Respond to Bankruptcy Petition
------------------------------------------------------------
Embattled satellite operator Satmex has until June 15 to respond
to an involuntary bankruptcy petition filed last month in the
U.S. Bankruptcy Court for the Southern District of New York by
bondholders of at least US$379 million owed by Satmex.

But according to a Business News Americas report, the
bondholders and Satmex's majority shareholder Sergio Autrey are
likely to seek extension of at least two weeks from the court to
resolve their differences over a debt restructuring plan.

Reports have it that Autrey may file for bankruptcy under
Mexican law, a so-called concurso mercantil, for fear that a
US$188-million note held by the government may not be considered
as Satmex debt under US law and would be lost in a debt
restructuring deal. The loan was issued to Firmamento, a holding
Company controlled by Autrey.



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

DORAL FINANCIAL: Moody's Downgrades Senior Debt Rating to Baa3
--------------------------------------------------------------
Moody's Investors Service downgraded the senior debt rating of
Doral Financial Corporation (Doral) to Baa3 from Baa2. The
ratings remain on review for further possible downgrade. The
rating action reflects Doral's pending restatement of past
financial statements to adjust for the value of its interest-
only (IO) strips. The Company also plans to change its current
business model by reducing loans sales that create IOs, thus
lowering its profitability. The ratings were placed on review
for possible downgrade on April 21, 2005.

Doral has estimated an impairment charge of approximately $600
million on its IO strips. The Company is determining how to
allocate the charge among the affected restatement periods
between years 2000 and 2004. The rating downgrade reflects weak
internal controls at Doral. In the meantime, the Company has
engaged the services of First Manhattan Consulting Group to help
develop a better model for evaluating their IOs and to enhance
its risk management practices.

According to Moody's, there remains considerable uncertainty
regarding the outcome of its business model change as well as
litigation risks and regulatory scrutiny. Additionally, Moody's
noted that there could be weak internal controls elsewhere in
the organization and also cited corporate governance issues.

Finally, a prolonged delay in the filing of its financial
reports could result in liquidity pressures. Thus, the ratings
remain under review for possible further downgrade. However,
Moody's expects that the Company will file its financial
statements in a timely manner, in order to avoid such adverse
funding consequences. Moody's expects to conclude the review
after the Company files its financial statements.

The following is a partial list of ratings that were downgraded
and at the same time, are on review for possible downgrade:

Doral Financial Corporation -- Senior debt to Baa3 from Baa2.

Doral Financial, headquartered in San Juan, Puerto Rico, had
total assets of $15 billion at December 31, 2004.

New York
Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Rosemarie Conforte
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653



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

ANCAP: PDVSA to Supply 1Mb Crude in August
------------------------------------------
State oil company Ancap awarded Venezuelan state oil company
Petroleos de Venezuela (PDVSA) on Thursday a contract to supply
1 million barrels (Mb) of crude in early August.

With the deal, Ancap expects to save US$2 a barrel on the
international price depending on the type of crude shipped,
according to Ancap president Daniel Martinez.

The deal is the first step under an energy cooperation agreement
signed between the two countries in March.

Under the agreement with Venezuela, Ancap can pay 25% of the
bill in 15 years with 2% annual interest with a two-year grace
period. The rest must be paid within three months. Part of this
can be settled with goods such as agricultural products,
software or cement.

Ancap buys 1Mb of crude every month in online tenders. PDVSA is
expected to bid on the next tender in July.





                            ***********


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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