TCRLA_Public/050615.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

           Wednesday, June 15, 2005, Vol. 6, Issue 117

                            Headlines

A R G E N T I N A

ADRIMAR S.R.L.: Judge Approves Bankruptcy
AGRO: Court Favors Creditor's Involuntary Bankruptcy Motion
AGUAS ARGENTINAS: Still Locked in Tough Talks With Government
EDITORIAL PLUS: Bankruptcy Process Begins By Court Order
GALU S.A.: Court Designates Trustee for Liquidation

GARBIN S.A.: Court Authorizes Plan, Concludes Reorganization
HSBC BANK ARGENTINA: Moody's Withdraws Ratings
IRSA: Conversion Reduces Debt by US$3,193
MORON VIAL: Court Rules Bankruptcy
PETROBRAS ENERGIA: Oil, Gas Output Down 7% in May

QUINTINO BOCAYUVA: Initiates Bankruptcy Proceedings
SADECO S.A.: Gets Court Approval for Reorganization
SAN ANDRES: Reorganization Proceeds To Bankruptcy
SOCIEDAD COMERCIALIZADORA: Begins Liquidation
TAR S.R.L.: Enters Bankruptcy on Court Orders

VICTORIO LOMBARDI: Declared Bankrupt by Court
* ARGENTINA: Names The Bank of New York as Trustee
* SANTIAGO DEL ESTERO: Fitch Cuts Series 04 & 05 Notes to 'C'


B A H A M A S

BANCO BAC: S&P Revises Outlook to Stable; Affirms Ratings


B R A Z I L

BANCO PACTUAL: Moody's Withdraws Ratings
CITIBANK: Moody's Withdraws Ratings for Business Reasons
TELEMAR: New Billing Model May Require Investment of $245M


C H I L E

LE MANS DESARROLLO: Regulator Close to Selling Annuities


C O L O M B I A

ECOPETROL: 5 Companies Chosen to Develop 7 Marginal Fields
EMCALI: TermoEmcali Reaches Agreement to Restructure Obligations
TELECOM: Accepting Proposals to Build Access Network


M E X I C O

GRUPO MEXICO: SPCC Announces Pricing of Secondary Offering
TFM: KCS Announces Successful Consent Solicitation


P U E R T O   R I C O

DORAL FINANCIAL: Unit to Open 6 New Branches This Year


V E N E Z U E L A

BANCO DEL CARIBE: Moody's Withdraws Ratings
PDVSA: ABB Secures $360,000 Consulting Agreement
PDVSA: Delays $64M Oil Output Payment to Harvest

     -  -  -  -  -  -  -  -

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

ADRIMAR S.R.L.: Judge Approves Bankruptcy
-----------------------------------------
Adrimar S.R.L. was declared bankrupt after Court No. 17 of
Buenos Aires' civil and commercial tribunal endorsed the
petition of Ernesto Escobedo for the Company's liquidation.
Argentine daily La Nacion reports that Mr. Escobedo has claims
totaling $8,482.59 against Adrimar.

The court assigned Carlos Moreno to supervise the liquidation
process as trustee. Mr. Carlos Moreno will validate creditors'
proofs of claim until Sep. 15, 2005.

The city's Clerk No. 33 assists the court in resolving this
case.

CONTACT:  Adrimar S.R.L.
          Avenida Santa Fe 3445
          Buenos Aires

          Mr. Carlos Moreno, Trustee
          Tucuman 1658
          Buenos Aies


AGRO: Court Favors Creditor's Involuntary Bankruptcy Motion
-----------------------------------------------------------
Court No. 8 of Buenos Aires' civil and commercial tribunal
declared Agro La Granja S.A. bankrupt, says La Nacion. The
ruling comes in approval of the petition filed by the Company's
creditor, Mr. Carlos Noronha, for nonpayment of $35,000 in debt.

Trustee Susana Beatriz Gonzalez Cabrerizo will examine and
authenticate creditors' claims until Aug. 2, 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. 16 assists the court on the case, which will conclude
with the liquidation of the Company's assets.

CONTACT: Agro La Granja S.A.
         Pilar 1453
         Buenos Aires

         Ms. Susana Beatriz Gonzalez Cabrerizo, Trustee
         Guayaquil 236
         Buenos Aires


AGUAS ARGENTINAS: Still Locked in Tough Talks With Government
-------------------------------------------------------------
Negotiations between the government and Buenos Aires water
concessionaire Aguas Argentinas over a new contract continue
with no "basic agreement" in sight.

"The negotiation of the new contract is not simple," news
service Infobae quoted federal planning minister Julio De Vido
as saying.

The federal government's public service contracts re-negotiation
and analysis unit (Uniren) is expected to send to Aguas a model
memorandum of understanding this week. While the letter is not
an ultimatum, it is as much as the government thinks it can
offer the Company, according to local newspaper El Cronista.

The bone of contention is Aguas' insistence on an official
credit of US$300 million to be paid back over 18 years with a
moderate interest rate, which the government wants to do away
with, as it may set a precedent with other service providers.

Another factor that's complicating the negotiations is the fact
that the government wants Aguas to invest some ARS250 million
annually to upgrade the network. The government, however, has
proposed raising rates to help the Company fulfill its
requirements.

Aguas may be allowed to raise rates by 16-20% over the next two
years.

Aguas is the sole provider of potable water and sewerage
services in the City of Buenos Aires and 17 surrounding
districts. The Company is 35%-owned and operated by Suez
Lyonnaise des Eaux S.A. (Lyonnaise), a leading French water
services and construction group.


EDITORIAL PLUS: Bankruptcy Process Begins By Court Order
--------------------------------------------------------
Buenos Aires' civil and commercial Court No. 17 declared
Editorial Plus Ultra S.A. "Quiebra," reports Infobae. The
declaration signals the Company to proceed with the bankruptcy
process, which will close with the liquidation of its assets.

The court, assisted by Clerk No. 34, appointed Mr. Nestor
Rodolfo del Potro as receiver who will authenticate proofs of
claim until Aug. 12, 2005. Afterwards, the receiver will prepare
the individual reports based on the results of the
authentication and then submit these reports to court on Sep.
26, 2005. After these results are processed in court, the
receiver will then submit the general report on Nov. 8, 2005.

CONTACT: Mr. Nestor Rodolfo del Potro, Trustee
         Avda Corrientes 1291
         Buenos Aires


GALU S.A.: Court Designates Trustee for Liquidation
---------------------------------------------------
Buenos Aires accountant Carlos Federico Berger was assigned
trustee for the liquidation of local company Galu S.A., relates
Infobae.

Mr. Berger will verify creditors' claims until Aug. 31, 2005,
the source adds. After that, he will prepare the individual
reports, which are to be submitted to court on Oct. 13, 2005.
The submission of the general report should follow on Nov. 24,
2005.

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

CONTACT: Mr. Carlos Federico Berger, Trustee
         Santiago del Estero 112
         Buenos Aires


GARBIN S.A.: Court Authorizes Plan, Concludes Reorganization
------------------------------------------------------------
Buenos Aires-based Garbin S.A. concluded its reorganization
process, according to data released by Infobae on its Web site.
The conclusion came after the city's civil and commercial Court
No. 6, with assistance from Clerk No. 11, homologated the debt
plan signed between the Company and its creditors.

CONTACT: Garbin S.A.
         Buenos Aires


HSBC BANK ARGENTINA: Moody's Withdraws Ratings
----------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
HSBC Bank Argentina S.A. for business reasons.

The bank has no rated foreign currency debt outstanding.

This action does not reflect a change in HSBC Bank Argentina
S.A.'s creditworthiness.

For further details please refer to Moody's Withdrawal Policy on
moodys.com.

HSBC Bank Argentina S.A., a subsidiary of HSBC Holdings plc, was
Argentina's fifth largest private sector bank with total assets
of $ 2.4 billion as of December 31, 2004.

The following ratings were withdrawn:

- Long Term Foreign Currency Deposit Rating: Caa2, with stable
outlook

- Short Term Foreign Currency Deposit Rating: Not Prime, with
stable outlook

Bank Financial Strength Rating: E, with stable outlook

New York
Jeanne Del Casino
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
M. Celina Vansetti
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


IRSA: Conversion Reduces Debt by US$3,193
-----------------------------------------
Inversiones y Representaciones Sociedad Anonima (IRSA) reported
that a holder of Company's Convertible Notes exercised its
conversion right.

Hence, the financial indebtedness of the Company shall be
reduced by US$3,193 and an increase of 5,858 ordinary shares
face value pesos 1 (V$N 1) each was made. The conversion was
performed according to terms and conditions established in the
prospectus of issuance at the conversion rate of 1.83486 shares,
face value pesos 1 per Convertible Note of face value US$1.

As a result of that conversion the amount of shares of the
Company goes from 347,352,963 to 347,358,821. On the other hand,
the amount of registered Convertible Notes is US$58,485,462.

About IRSA

IRSA is Argentina's largest, most well diversified real estate
company, and it is the only company in the industry whose share
is listed on the Bolsa de Comercio de Buenos Aires and the New
York Stock Exchange.

Through its subsidiaries, IRSA manages an expanding top
portfolio of shopping centers and office buildings, primarily in
Buenos Aires. The Company also develops residential subdivisions
and apartments (specializing in high-rises and loft- style
conversions) and owns three luxury hotels.

Its solid, diversified portfolio of properties has established
the Company as the leader in the sector in which it
participates, making it the best vehicle to access the Argentine
real estate market.

CONTACT: IRSA Inversiones y Representaciones S.A.
         1066
         Bolivar 108
         Buenos Aires, Argentina
         Phone: 541-342-7555


MORON VIAL: Court Rules Bankruptcy
----------------------------------
Buenos Aires' civil and commercial Court No. 6 decreed the
bankruptcy of Moron Vial S.A., reports Infobae. The Company will
kick off the process with Mr. Luis Juan Kuklis as receiver, who
will verify creditors' claims until Aug. 30, 2005. The Company's
case will conclude with the liquidation of its assets to repay
creditors. Clerk No. 11 assists the court in handling the
proceedings.

CONTACT: Mr. Luis Juan Kuklis, Trustee
         Lavalle 1619
         Buenos Aires


PETROBRAS ENERGIA: Oil, Gas Output Down 7% in May
-------------------------------------------------
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE,
NYSE:PZE), controlling company of Petrobras Energia S.A. (Buenos
Aires: PESA), announces Petrobras Energia S.A.'s oil and gas
daily average production for May 2005.

For comparative purposes production for 2004 fiscal year
includes Petrolera Santa Fe's and Petrobras Argentina's
production.

For conversion into barrels of oil equivalent, gas production is
expressed at 9,300 kilocalories.

Production from block 18 in Ecuador is reported on a 70%
interest.

Total Oil & Gas Production

                                May-05             May-04
                              (1 month)           (1 month)

- Oil Argentina                  51.8               59.4
- Oil Venezuela                  43.3               46.7
- Oil Peru                       12.5               11.1
- Oil Bolivia                     1.4                0.1
- Oil Ecuador                     9.4                6.3
Total Oil Production             118.4              123.6
- Gas Argentina                  39.8               46.0
- Gas Venezuela                   3.3                4.2
- Gas Peru                        1.9                1.7
- Gas Bolivia                     6.1                7.2
Total Gas Production             51.1               59.1
Total Oil & Gas Production      169.5              182.7

CONTACT: Petrobras Energia Participaciones S.A.
         Edificio Perez Companc
         Maipu 1
         Buenos Aires, C 1084 ABA
         Argentina
         Phone: 54-11-4344-6000
         Website: http://www.petrobrasenergia.com


QUINTINO BOCAYUVA: Initiates Bankruptcy Proceedings
---------------------------------------------------
Court No. 20 of Buenos Aires' civil and commercial tribunal
declared Quintino Bocayuva Construcciones S.A. "Quiebra,"
reports Infobae. Clerk No. 39 assists the court on the case,
which will close with the liquidation of the Company's assets to
repay creditors.

Rut Noemi Alfici, who has been appointed as trustee, will verify
creditors' claims until Aug. 8, 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 Sep.
19, 2005, followed by the general report on Oct. 31, 2005.

CONTACT: Ms. Rut Noemi Alfici, Trustee
         Rodriguez Pena 565
         Buenos Aires


SADECO S.A.: Gets Court Approval for Reorganization
---------------------------------------------------
Sadeco S.A. de Construcciones will begin reorganization
following the approval of its petition by Court No.12 of Buenos
Aires' civil and commercial tribunal. The opening of the
reorganization will allow the Company to negotiate a settlement
with its creditors in order to avoid a straight liquidation.

Leandro Jose Villari will oversee the reorganization proceedings
as the court-appointed trustee. He will verify creditors' claims
until Aug. 4, 2005. The validated claims will be presented in
court as individual reports on Sep. 15, 2005.

Mr. Villari is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on Oct. 27, 2005.

The date for the Informative Assembly, the final stage of a
reorganization where the settlement proposal is presented to the
company's creditors for approval, is yet to be disclosed.

Clerk No. 24 assists the court on this case.

CONTACT: Sadeco S.A. de Construcciones
         Sanchez de Loria 1801
         Buenos Aires

         Mr. Leandro Jose Villari, Trustee
         Talcahuano 316
         Buenos Aires


SAN ANDRES: Reorganization Proceeds To Bankruptcy
-------------------------------------------------
The reorganization of San Andres de Procida S.A. has progressed
into bankruptcy. Argentine news source Infobae relates that
Buenos Aires' civil and commercial Court No. 26 ruled that the
Company is "Quiebra Decretada".

The report adds that the court assigned Mr. Mario Suez as
trustee, who will verify creditors' proofs of claim until Aug.
8, 2005.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Sep. 20, 2005. A general report on the bankruptcy process is
expected on Nov. 2, 2005.

Clerk No. 52 assists the court on the Company's case.

CONTACT: Mr. Mario Suez, Trustee
         Rodriguez Pena 454
         Buenos Aires


SOCIEDAD COMERCIALIZADORA: Begins Liquidation
---------------------------------------------
Sociedad Comercializadora de Carnes S.A. of Buenos Aires will
begin liquidating its assets after Court No. 5 of the city's
civil and commercial tribunal declared the Company bankrupt.
Infobae reveals that the bankruptcy process will commence under
the supervision of court-appointed trustee, Monica Graciela
Aquim.

The trustee will review claims forwarded by the Company's
creditors until Aug. 11, 2005. After claims verification, Ms.
Aquim will submit the individual reports for court approval on
Sep. 23, 2005. The general report will follow on Nov. 4, 2005.
Clerk No. 10 assists the court on this case.

CONTACT: Ms. Monica Graciela Aquim, Trustee
         Uruguay 662
         Buenos Aires


TAR S.R.L.: Enters Bankruptcy on Court Orders
---------------------------------------------
Buenos Aires' civil and commercial Court No. 14 declared Tar
S.R.L. bankrupt after the Company defaulted on its debt
payments. The bankruptcy order effectively places the Company's
affairs as well as its assets under the control of court-
appointed trustee, Mario Isaac Bekierman.

As the trustee, Mr. Bekierman is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Aug. 29, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Oct. 10, 2005. A general report will
also be submitted on Nov. 22, 2005.

Infobae reports that Clerk No. 27 assists the court on this
case, which will end with the disposal of the Company's assets
in favor of its creditors.

CONTACT:  Mr. Mario Isaac Bekierman, Trustee
          Avda Raul Scalabrini Ortiz 25
          Buenos Aires


VICTORIO LOMBARDI: Declared Bankrupt by Court
---------------------------------------------
Victorio Lombardi S.R.L. is now "Quiebra" - meaning bankrupt,
says Infobae. Buenos Aires' civil and commercial Court No. 6
decreed the Company's bankruptcy and appointed Clara Susana
Auerhan, as receiver for the Company. Ms. Auerhan will be
reviewing creditors' claims until Aug. 26, 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. 11, will conclude the bankruptcy process by
liquidating its assets to repay creditors.

CONTACT:  Ms. Clara Susana Auerhan, Trustee
          Uruguay 872
          Buenos Aires


* ARGENTINA: Names The Bank of New York as Trustee
--------------------------------------------------
The Bank of New York, a global leader in securities servicing,
has been appointed by the Republic of Argentina to act as U.S.
and U.K. trustee, registrar, paying agent and common depositary
for the new securities issued as a result of the Republic's
recent debt restructure, in which The Bank of New York also
provided corporate trust services. The debt restructure was
accomplished via a global exchange offer in which the exchange
of approximately US$81.8 billion in outstanding eligible
securities was swapped for newly issued bonds.

The new bonds include U.S. dollar-denominated par bonds due
2038, Euro-denominated par bonds due 2038, 8.28% U.S. dollar-
denominated discount bonds due 2033, 7.82% Euro-denominated
discount bonds due 2033, U.S. dollar-denominated GDP-Linked
Securities, and Euro-denominated GDP-Linked Securities.

The Bank played a critical role in helping the Republic of
Argentina successfully complete its recent debt restructuring by
acting as global exchange agent, Luxembourg exchange agent,
calculation agent, and continuing collateral agent. During the
offer period, which commenced on January 14, 2005, and expired
on February 25, 2005, the Bank processed tenders received from
seven clearing firms and custodians worldwide.

Karen Peetz, executive vice president and Head of the Bank's
Corporate Trust Division, said, "We have supported many high-
profile restructuring transactions in Latin America, and this
transaction was the market's largest and most complex multi-
jurisdictional and multi-currency exchange offer to-date. We are
especially proud of our role in this deal because we organized a
talented and dynamic team of experts who customized an
innovative technology platform solution that met the Republic's
very specific and complex requirements. This collaboration and
appointment is a true testament to The Bank of New York's
ongoing commitment to meeting the needs of our clients."

The Bank of New York is a leading provider of corporate trust
and agency services. The Bank and its subsidiaries and
affiliates administer a portfolio of more than 90,000 trustee
and agency appointments, representing more than $2.7 trillion in
outstanding securities for more than 30,000 clients around the
world. The Bank is a recognized leader for trust services in
several debt products, including corporate and municipal debt,
mortgage-backed and asset-backed securities, derivative
securities services and international debt offerings.

The Bank of New York Company, Inc. (NYSE:BK) is a global leader
in providing a comprehensive array of services that enable
institutions and individuals to move and manage their financial
assets in more than 100 markets worldwide. The Company has a
long tradition of collaborating with clients to deliver
innovative solutions through its core competencies: securities
servicing, treasury management, investment management, and
individual & regional banking services. The Company's extensive
global client base includes a broad range of leading financial
institutions, corporations, government entities, endowments and
foundations. Its principal subsidiary, The Bank of New York,
founded in 1784, is the oldest bank in the United States and has
consistently played a prominent role in the evolution of
financial markets worldwide.

This announcement is not an offer to sell or a solicitation of
an offer to buy any securities. The offering is made only by
means of the prospectus.


* SANTIAGO DEL ESTERO: Fitch Cuts Series 04 & 05 Notes to 'C'
-------------------------------------------------------------
Fitch Ratings has downgraded the global scale foreign and local
currency ratings of Santiago del Estero's series 04 and 05 under
the co-participation tax revenue collateralized medium-term note
program, to 'C' from 'CC'.

The rating action is based on the strong uncertainty existing
with respect to the next debt service payment of both series,
after the immobilization of the co-participation tax revenues
collateralizing these payments following a recent judicial
measure imposed by a judge of Santiago del Estero.

Fitch has not received any information from the trustee
confirming if the coming debt service, due on June 15th, will be
paid with the funds in the reserve account. On the other hand,
even if the payment is made with funds in the reserve account,
Fitch believes that both series' notes will remain under stress
given the high uncertainty that the reserve account will be
replenished in the required 10 days established in the
Indenture. In addition, Fitch understands that even if this
judicial measure is solved before the next debt service payment,
due on December 2005, it is probable to expect changes in the
current terms and conditions of series 05.

CONTACT:  Sofia Migueliz, +0054 11 5325-8100, Argentina
          Eduardo D'Orazio, +0054 11 5325-8100, Argentina
          Alfredo Gomez Garza, +0052 81 8335-7179, Mexico

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



=============
B A H A M A S
=============

BANCO BAC: S&P Revises Outlook to Stable; Affirms Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services revised its foreign and local
currency outlooks on Banco BAC San Jose S.A. and the foreign
currency outlook of BAC Bahamas Bank to stable from negative. At
the same time, all counterparty credit ratings assigned to both
banks, including the 'BB+/B' local currency and 'BB/B' foreign
currency counterparty credit ratings on BAC San Jose, were
affirmed.

"The ratings affirmation and outlook revision follow similar
rating actions taken on the sovereign credit ratings on Costa
Rica, and are a reflection of BAC San Jos‚'s significant
exposure to Costa Rica's sovereign risk," said Standard & Poor's
credit analyst Leonardo Bravo. An important portion of the
banks' assets is represented by government securities, and their
businesses are directly linked to the economic evolution of the
country.

The stable outlook mirrors the outlook on the sovereign credit
ratings on Costa Rica, and reflects BAC San Jos‚'s and BAC
Bahamas Bank's significant exposure to that country. All things
being equal, a rating or outlook change on the sovereign would
prompt a similar change on the ratings or outlook on the banks.
The stable outlook takes into consideration expectations that
the banks will continue to perform adequately and expand their
businesses under the current policies.

Primary Credit Analyst: Leonardo Bravo, Mexico City
(52)55-5081-4406; leonardo_bravo@standardandpoors.com

Secondary Credit Analyst: Francisco Suarez, Mexico City
(52) 55-5081-4474; francisco_suarez@standardandpoors.com



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

BANCO PACTUAL: Moody's Withdraws Ratings
----------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco Pactual S.A., for business reasons.

The bank has no rated foreign currency debt outstanding.

This action does not reflect a change in Banco Pactual, S.A's
creditworthiness.

For further details please refer to Moody's Withdrawal Policy on
moodys.com.

Banco Pactual S.A. had total assets of US$3.2 billion as of
December 31, 2004.

The following ratings were withdrawn:

Long Term Foreign Currency Deposit Rating: B2, with positive
outlook

Short Term Foreign Currency Deposit Rating: Not Prime, with
stable outlook

Bank Financial Strength Rating: D-, with stable outlook

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

New York
M. Celina Vansetti
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


CITIBANK: Moody's Withdraws Ratings for Business Reasons
--------------------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Citibank, N.A. (Brazil) for business reasons.

The bank has no rated foreign currency debt outstanding.

This action does not reflect a change in Citibank, N.A.
(Brazil)'s creditworthiness.

For further details please refer to Moody's Withdrawal Policy on
moodys.com.

Citibank N.A. (Brazil) had total assets of US$1.5 billion as of
December 31, 2004.

The following ratings were withdrawn:

- Long Term Foreign Currency Deposit Rating: B2, with positive
outlook

- Short Term Foreign Currency Deposit Rating: Not Prime, with
stable outlook

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

New York
M. Celina Vansetti
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


TELEMAR: New Billing Model May Require Investment of $245M
----------------------------------------------------------
Fixed line operator Telemar will have to switch its call
charging system from pulses to minutes beginning January 1, 2006
to adhere to a new billing model. The move, according to
Business News Americas, will require the operator to invest
BRL600 million (US$245mn).

"We are still evaluating how to do the technical part, as the
switch is a very complicated process," Business News Americas
quoted a Telemar spokesperson as saying.

"When the telecom sector was privatized, in 1998, we built our
network on the pulse principle in order to bring standardized
service to every client; to change that will be highly costly,"
she added.

Meanwhile, Telemar president Ronaldo Iabrudi is calling on
telecoms regulator Anatel to shed light on an important issue --
the switch from pulses to minutes, as this affects operators'
revenues considerably.

Within the actual charging model, a pulse can be equivalent to
up to four minutes and cannot be split even if the call does not
last that long. To prevent operators' revenues from suffering
and to guarantee profitability, Iabrudi has demanded that Anatel
should establish a per minute price equivalent to the previous
method.

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



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

LE MANS DESARROLLO: Regulator Close to Selling Annuities
--------------------------------------------------------
The annuities portfolio of bankrupt life insurer Le Mans
Desarrollo are about to go under the hammer, according to
Alejandro Ferreiro of the SVS, the securities and insurance
regulator.

Le Mans, which was intervened in 2003 following the collapse of
its parent, local financial group Inverlink, has assets totaling
some CLP33 billion (US$55.6 million) - not enough to cover the
pensions of its 3,100 affiliates.

"We have to see with the [government's] budget office how we can
link the state pension guarantee to ensure that the assets
available can keep paying the pensions," Ferreiro said.



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

ECOPETROL: 5 Companies Chosen to Develop 7 Marginal Fields
----------------------------------------------------------
State oil company Ecopetrol, which is looking to increase its
investments in exploration, awarded seven contracts to five
companies in a tender to develop marginal fields either
undeveloped or inactive, reports Business News Americas.

The winning bidders and their respective marginal fields are as
follows: the Vetra NTC consortium (Arjona); Sadeven (Berlin and
Bravo); Cosacol (Mugrosa); Serinpet (Play˘n); and Campos de
Produccion (Quebrada Roja and Toca).

Ecopetrol said contracts for the Hato Nuevo, Mojada or Oru-Yuca
fields were not awarded because the two companies that presented
the best economic bids did not have the necessary technical
qualifications.


EMCALI: TermoEmcali Reaches Agreement to Restructure Obligations
----------------------------------------------------------------
The TermoEmcali Project has reached agreement to restructure
Emcali's obligations to the project and settle certain disputes
with Emcali. The agreements with Emcali and the restructuring of
the project's financial obligations are subject to obtaining the
necessary consents from the project's secured creditors. The
process for soliciting those consents is anticipated to begin
shortly.

Details of the agreements can be found in www.termoemcali.com.

TermoEmcali owns a 234 MW, natural gas-fired combined cycle
power station located near Cali. Built in 1999, TermoEmcali's
development and construction costs were financed via secured
notes. Emcali is the municipal utility of Cali, Colombia.


TELECOM: Accepting Proposals to Build Access Network
----------------------------------------------------
State-owned telco Colombia Telecomunicaciones (formerly known as
Telecom) has launched a new tender for a contract to build its
access network, reports Business News Americas. Interested
bidders will have until June 20 to submit proposals.

Telecom was liquidated in July 2003 and its assets were taken
over by Colombia Telecomunicaciones, which continues to use the
Telecom brand name.



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

GRUPO MEXICO: SPCC Announces Pricing of Secondary Offering
----------------------------------------------------------
Southern Peru Copper Corporation (NYSE and LSE: PCU) (SPCC), a
subsidiary of Grupo Mexico, S.A. de C.V. (GMexico) announced
Thursday that the offering of 20,978,497 shares of its common
stock by its selling stockholders, Phelps Dodge and Cerro
Trading, has priced at $42 dollars per share. The referred
secondary offering was more than two times oversubscribed. SPCC
will not receive any proceeds from the sale of the shares. This
offering has resulted in the shares being disseminated to a
larger investor base.

The underwriters have an option to purchase up to an additional
1,573,387 shares of common stock from the selling stockholders
at the offering price above, less the underwriting discounts and
commissions, to cover over-allotments.

The offer will be made only by means of a prospectus.  Citigroup
and UBS Investment Bank are joint bookrunning managers of the
offering with Merrill Lynch & Co. serving as senior co-manager
and Scotia Capital and BNP Paribas acting as co-managers.

SPCC is a publicly traded copper mining company and a producer
of molybdenum, silver and zinc.

A registration statement relating to these securities has been
filed with the U.S. Securities and Exchange Commission.  Copies
of the prospectus relating to this offering, when available, may
be obtained from the managing underwriters listed above.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of the jurisdiction.

CONTACT:  SOUTHERN PERU COPPER CORP.
          Avenida Caminos del Inca #171
          Chacarilla del Estanque
          Santiago de Surco
          Lima, 33
          Peru
          Website: http://www.southernperu.com
          Phone: +51-(0)1-372-1414
          Officers: Oscar Gonzalez Rocha, Pres.


TFM: KCS Announces Successful Consent Solicitation
--------------------------------------------------
Kansas City Southern ("KCS") (NYSE:KSU) announced Monday the
expiration and successful completion, as of 5:00 p.m., New York
time, on June 10, 2005, of the previously announced solicitation
of consents by its wholly owned subsidiary, The Kansas City
Southern Railway Company ("KCSR"), to amend the indentures, as
supplemented where applicable (the "Indentures"), under which
KCSR's outstanding 9 1/2% Senior Notes due 2008 (the "9 1/2%
Notes") and outstanding 7 1/2% Senior Notes due 2009 (the "7
1/2% Notes" and together with the 9 1/2% Notes, the "Notes")
were issued. KCSR has received the requisite consents from a
majority of the outstanding aggregate principal amount of each
series of Notes.

Accordingly, upon the terms and subject to the conditions set
forth in the Consent Solicitation Statement dated May 11, 2005,
and as thereafter amended, KCSR, KCS, the other note guarantors,
and the trustee under each of the Indentures, respectively, have
signed supplemental indentures with respect to each such series
of Notes to permit TFM, S.A. de C.V. ("TFM"), an indirect
subsidiary of KCS, to effect a settlement of certain disputes
among TFM, Grupo Transportacion Ferroviaria Mexicana, S.A. de
C.V., an indirect subsidiary of KCS, and the Mexican government.
KCS does not know when or if a settlement of these disputes will
be consummated.

Holders of the Notes may request copies of the supplements to
the Indentures by contacting Investor Relations at KCSR at 427
West 12th Street, Kansas City, Missouri, 64105 (telephone 816-
983-1551).

Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama. Its primary U.S. holdings include The Kansas
City Southern Railway Company, founded in 1887, and The Texas-
Mexican Railway Company, founded in 1885, serving the central
and south central U.S. Its international holdings include a
controlling interest in TFM, S.A. de C.V., serving northeastern
and central Mexico and the port cities of Lazaro Cardenas,
Tampico and Veracruz, and a 50% interest in The Panama Canal
Railway Company, providing ocean-to-ocean freight and passenger
service along the Panama Canal. KCS's North American rail
holdings and strategic alliances are primary components of a
NAFTA Railway system, linking the commercial and industrial
centers of the U.S., Canada and Mexico.



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

DORAL FINANCIAL: Unit to Open 6 New Branches This Year
------------------------------------------------------
Doral Bank, a local unit of Puerto Rico-based Doral Financial
Corporation (NYSE: DRL), will open six new branches this year
under a US$6-million expansion plan, Business News Americas
reveals.

"The idea is to cover the whole island," Doral Bank Chairman
Jose Vigoreaux said, adding, "We are going where there is
demand. We still haven't entered the island's interior, which is
very competitive with a large number of savings and loan
cooperatives. First we want to cover the areas where we have
made loans."

The announcement of the expansion plan comes at a time when
Doral Financial Corporation is trying to come to grips with
accounting problems related to the way it values securities
called interest-only (IO) strips. Earlier this year, the SEC
launched an informal investigation into the group when it said
it would restate financial results for the periods between 2000
and 2004.



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

BANCO DEL CARIBE: Moody's Withdraws Ratings
-------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco del Caribe, S.A., Banco Universal for business reasons.

The bank has no rated foreign currency debt outstanding.

This action does not reflect a change in Banco del Caribe, S.A.,
Banco Universal's creditworthiness.

For further details please refer to Moody's Withdrawal Policy on
moodys.com.

Banco del Caribe, S.A., Banco Universal, the fourth largest
Venezuelan bank, had total assets of US$794.4 million as of
December 31, 2004.

The following ratings were withdrawn:

- Long Term Foreign Currency Deposit Rating: B3, with stable
outlook

- Short Term Foreign Currency Deposit Rating: Not Prime, with
stable outlook

- Bank Financial Strength Rating: E+, with stable outlook

Mexico City
David Olivares Villagomez
Vice President - Senior Analyst
Financial Institutions Group

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


PDVSA: ABB Secures $360,000 Consulting Agreement
------------------------------------------------
PDVSA awarded ABB Performance Service a US$360,000 consulting
agreement to improve reliability of electrical motors and pumps
in the Complejo Refinador Paraguana (CRP) in Venezuela,
according to an OilOnline report.

Under the agreement, ABB will evaluate the current practices
adopted by PDVSA in the selection, operation and maintenance of
motors and pumps at the site.

Based on the outcome of the evaluation, the ABB and the PDVSA
team will together develop a reliability program to boost
equipment effectiveness and optimize maintenance costs in a
sustainable way.

Both PDVSA and ABB have expressed confidence in the success of
the project.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: Delays $64M Oil Output Payment to Harvest
------------------------------------------------
Harvest Natural Resources, Inc. (NYSE: HNR) announced Monday
that Harvest Vinccler, C.A., its 80 percent owned Venezuelan
subsidiary (HVCA) will experience a further delay in the payment
for 2005 first quarter deliveries of oil and gas to Petroleos de
Venezuela, S.A. (PDVSA). A payment in the amount of $64 million
was due on May 31st, and officials from PDVSA had assured HVCA
that payment would be received during the week ending June 10th.
HVCA has been informed by PDVSA that an agreement on the payment
process to pay its contractors has been reached between PDVSA
and the Venezuelan Central Bank. The Company understands that
other oil and gas service contractors doing business in
Venezuela have similarly had their payments delayed.

Harvest President and Chief Executive Officer, Dr. Peter J.
Hill, said, "We are disappointed with the delay, particularly in
the face of repeated assurances from senior PDVSA executives. We
will preserve all of our options for recovery in accordance with
our contract. We remain hopeful and committed to finding a
mutually satisfactory resolution to all issues with PDVSA and to
the migration of our current agreement to a mixed company
structure under the Organic Hydrocarbon Law."

Harvest Natural Resources, Inc. headquartered in Houston, Texas,
is an independent oil and gas development and production company
with principal operations in Venezuela and an office in Russia.
For more information visit the Company's website at
http://www.harvestnr.com.

CONTACT:  Harvest Natural Resources, Inc.
          Steven W. Tholen, Senior VP, CFO
          Tel: +1-281-899-5714
                   or
          Amanda Koenig, Investor Relations
          Tel: +1-281-899-5716





                            ***********


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

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