TCRLA_Public/050616.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, June 16, 2005, Vol. 6, Issue 118

                            Headlines


A R G E N T I N A

ACEROS ZAPLA: Striking Workers May Have Gained Political Backing
BERSA: Bidder Accuses Rivals of Tender Rule Violations
COLEGIO: Seeks Court Authority to Reorganize
CONSTRUCTORA SOLER: Court Approves Concurso Motion
ITALMARMI S.A.: Judge Approves Bankruptcy

NUEVOS TEJIDOS: Bankruptcy Now Official
PINTURERIAS REMO: Reorganization Deteriorates To Bankruptcy
TELECOM ARGENTINA: Fitch Assigns 'B-' to Proposed Restructuring


B E R M U D A

BOYLE LIMITED: Names Robin J Mayor as Liquidator
BUNSEN LIMITED: Member Resolves to Wind Up Company
GUILDENSTERN LIMITED: Appoints Robin J Mayor as Liquidator
LORAL SPACE: Unit Selling Satellite Bandwidth to AMNSA
ROSENCRANTZ LIMITED: Robin J Mayor Named as Liquidator


B R A Z I L

BANCO BRADESCO: Executive Officers to Propose Dividend In July
ELETROPAULO METROPOLITANA: Fitch Ups Int'l LC, FC Ratings
TELEMAR: Mobile Subscriber Base Grows to Eight Million


M E X I C O

GRUPO MEXICO: Asarco Employees Prepare to Initiate Strike


P U E R T O   R I C O

DORAL FINANCIAL: Kirby, McInerney Files Class Action Lawsuit


T R I N I D A D   &   T O B A G O

BWIA: Trade Unionist Advises Government to Keep Airline Flying


U R U G U A Y

URUGUAYAN BANKS: BROU to Embark on $2.8B Refinancing Process


V E N E Z U E L A

PDVSA: 1Q05 Production Output Falls Short of Target
PDVSA: To Invest $500M in New JV Project With Cadafe
SIDOR: Offers Additional Equity Stake to Workers


     - - - - - - - - - -


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

ACEROS ZAPLA: Striking Workers May Have Gained Political Backing
----------------------------------------------------------------
Negotiations between steel products maker Aceros Zapla and its
striking workers are at an impasse, as workers remain steadfast
in their demands, reports Business News Americas.

"They [the striking workers] continue asking for the same and
don't change their minds," said a company official, who believes
left-wing political groups are likely to be behind the ongoing
strike that began since June 2.

These groups are influencing workers to stick to their
irreversible positions, "which makes the situation even more
difficult as workers are demanding a lot without giving up a
thing," the official added.

Moreover, government entities have tried to distance themselves
from the situation due to the belief that the strike is managed
by outside players, the official said.

The workers started the strike demanding a salary hike of ARS300
(US$104) a month. The Company's offer of a ARS130-hike by June
to be upped to ARSP160 by July and to ARS200 by August was
rejected by the union.

Aceros Zapla, which employs 700 workers, produces hot-rolled
long steel primarily for the oil industry and construction and
also for the automobile industry, machinery and equipment
manufacturers. The Company is located in the northwest province
of Jujuy.


BERSA: Bidder Accuses Rivals of Tender Rule Violations
------------------------------------------------------
Banco de Santiago del Estero questioned the bids made by its
rivals, Nuevo Banco de Santa Fe and Comafi, for Banco de Entre
Rios (BERSA), reports Business News Americas. Last week's
auction for BERSA concluded with Banco de Santa Fe making the
highest bid of ARS172 million, beating Banco de Santiago's offer
of ARS120 million and Comafi's ARS98 million.

But Banco de Santiago claimed its rivals' payment guarantees
were reportedly made using checks instead of in cash or charged
on a central bank account as the tender rules stipulated. The
announcement of the Bersa winner was scheduled for June 15.

French banking giant Credit Agricole left Argentina in the midst
of the country's economic and financial crisis in 2002 and left
behind three subsidiaries, BERSA, Suquia and Bisel. Banco Nacion
took over the banks for the purpose of selling them back to the
private sector at a later stage. Suquia was auctioned last year
and the Bisel auction could take place this year.


COLEGIO: Seeks Court Authority to Reorganize
--------------------------------------------
Colegio de Familia S.R.L., a company operating in Buenos Aires,
has requested for reorganization after failing to pay its
liabilities, Infobae reports. The reorganization petition, once
approved by the court, will allow the Company to negotiate a
settlement with its creditors in order to avoid a straight
liquidation.

The case is pending before the city's civil and commercial Court
No. 7. Clerk of Court No. 14 assists on this case.

CONTACT: Colegio de Familia S.R.L.
         Roseti 758
         Buenos Aires


CONSTRUCTORA SOLER: Court Approves Concurso Motion
--------------------------------------------------
Court No. 24 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization from construction outfit
Constructora Soler S.A., according to a report from Argentine
daily La Nacion. In its filing, Constructora Soler revealed
assets of $257,323.89 and liabilities worth $385,017.62.

Trustee Adriana del Carmen Gallo will verify claims from the
Company's creditors until Sep. 15, 2005. After verification
period, the trustee will submit the individual and general
reports in court. Dates for submission of these reports are yet
to be disclosed.

The informative assembly will be held on May 26, 2006. Creditors
will vote to ratify the completed settlement plan during the
said assembly.

The city's Clerk No. 48 assists the court on the case.

CONTACT: Constructora Soler S.A.
         R. Scalabrini Ortiz 2368
         Buenos Aires

         Ms. Adriana del Carmen Gallo, Trustee
         Av. Roque Saenz Pena 651
         Buenos Aires


ITALMARMI S.A.: Judge Approves Bankruptcy
-----------------------------------------
Italmarmi S.A. was declared bankrupt after Court No. 20 of
Buenos Aires' civil and commercial tribunal endorsed the
petition of Carlos Gomez for the Company's liquidation.
Argentine daily La Nacion reports that Mr. Gomez has claims
totaling $29,673.78 against Italmarmi.

The court assigned Rodolfo Venegas to supervise the liquidation
process as trustee. Mr. Venegas will validate creditors' proofs
of claim until Sep. 14, 2005.

The city's Clerk No. 40 assists the court in resolving this
case.

CONTACT: Italmarmi S.A.
         Fernandez 1970
         Buenos Aires

         Mr. Rodolfo Venegas
         Av. Corrientes 880
         Buenos Aires


NUEVOS TEJIDOS: Bankruptcy Now Official
---------------------------------------
Buenos Aires' Nuevos Tejidos S.A. was declared bankrupt after
Court No. 21 of the city's civil and commercial tribunal
endorsed the petition of Osecac for the Company's liquidation.
Argentine daily La Nacion reports that Osecac has claims
totaling $4,974.18 against Nuevos Tejidos.

The court assigned Ana Calzada Percibale to supervise the
liquidation process as trustee. Ms. Percibale will validate
creditors' proofs of claim until Aug. 31, 2005.

The city's Clerk No. 41 assists the court in resolving this
case.

CONTACT: Nuevos Tejidos S.A.
         Azcuenaga 568
         Buenos Aires

         Ms. Ana Calzada Percibale, Trustee
         Avenida San Martín 2805
         Buenos Aires


PINTURERIAS REMO: Reorganization Deteriorates To Bankruptcy
-----------------------------------------------------------
The reorganization of Pinturerias Remo S.A. has progressed into
bankruptcy. Argentine news source Infobae relates that Bahia
Blanca's civil and commericial Court No. 1, with the assistance
of Clerk No. 1, ruled that the Company is "Quiebra Decretada".

The report adds that the court assigned Mr. Juan Carlos
Rodriguez as trustee, who verified creditors' proofs of claim
until June 8, 2005.

The court also ordered the trustee to prepare individual reports
after the verification process is completed. A general report on
the bankruptcy process is expected to follow.

CONTACT: Pinturerias Remo S.A.
         Donato 565
         Bahia Blanca

         Mr. Juan Carlos Rodriguez, Trustee
         Alsina 19
         Bahia Blanca


TELECOM ARGENTINA: Fitch Assigns 'B-' to Proposed Restructuring
---------------------------------------------------------------
Fitch Ratings has assigned preliminary international scale
foreign currency ratings of 'B-' and a national scale rating of
'BBB-(arg)' to Telecom Argentina S.A.'s (Telecom). Fitch has
also assigned preliminary international foreign currency ratings
to two new notes to be issued as part of Telecom's debt
restructuring process. Fitch will maintain the international
scale unsecured debt ratings of 'DD' and the national scale debt
ratings of 'D(arg)' until the restructuring process is
completed. The Rating Outlook is expected to be Stable.

Telecom's preliminary ratings reflect the expected improvement
in the company's capital structure and debt maturity profile
resulting from the proposed debt restructuring. The
restructuring is expected to extend debt maturities, lower
interest costs, and annual debt service, as well as reduce
overall levels of debt. Under the proposed debt restructuring,
Telecom will issue two new notes totaling up to US$1,872
million. Considering the exchange rate of Aug. 4, 2004, tranche
A consists of US$877 million 5.5% step-up notes due 2014 and
tranche B consists of US$995 million 9.0% step-up notes due 2012
that will be exchanged for total debt of US$3,117 million,
including principal and accrued interest. Both tranches pay
semiannual interest and principal.

Telecom's financial profile will clearly improve post
restructuring and should be able to successfully meet its debt
service obligations going forward. On a pro forma basis, credit
ratios are strong for the rating category, net debt to EBITDA is
expected to be lower than 3.0 times (x), and EBITDA to interest
expense should strengthen to approximately 4.0x, from 2.8x at
the end of 2004. Total net debt is expected to decline to
US$1,755 million from US$2,194 million at the end of March 2005.
The debt maturities are expected to lower refinancing risks in
the medium term, as the company uses cash flow from operations
to prepay debt over the following years. The average life and
average interest cost should be 4.9 years and 8.0%,
respectively.

Telecom ratings are constrained by significant regulatory and
sovereign related risks. Regulated tariffs have and continue to
remain frozen since the crisis began in 2002, which limits
revenue flexibility and adds exposure to devaluation and
inflationary risks. Telecom's revenues are peso-denominated
while its debt is largely foreign currency-denominated.

Over the medium to long term, improvements in Telecom's credit
quality will hinge upon a sustained recovery of the Argentine
economy and telecommunications services demand, and tariff
relief as part of a sustainable regulatory framework for the
fixed line business. During 2004, the company benefited from a
partial recovery in demand for telecommunications services,
particularly in the wireless segment. Consequently, the company
was able to increase revenues by 20% during 2004, but EBITDA
only increased by 3% because of the challenging competitive
environment in the wireless unit that resulted in increase
advertising, handset subsidies, and sales commissions costs.

Telecom has been in default since the first half of 2002 when it
suspended payments on its debt obligations. The company
restructured a small portion of its defaulted debt during June
2003 by repurchasing notes with a 45% cash discount. In August
2004, Telecom announced that it had achieved 94.47%
participation on its proposal to restructure all of its
outstanding unsecured debt under the framework of an Acuerdo
Preventivo Extrajudicial (APE). The APE is an out-of-court
restructuring agreement governed by Argentine law that requires
a minimum participation by two-thirds of a company's creditors.
The APE was endorsed and the judicial homologation was completed
on May 26, 2005 and June 10, 2005, respectively. Following the
homologation, nonconsenting lenders have 10 days to choose one
of the options offered by Telecom and after that, the company
has 90 days to carry out the exchange.

Telecom is one of the largest telecommunications providers in
Argentina, with 3.8 million fixed lines in service (47%
estimated market share), 4.2 million wireless subscribers, and
239,000 internet subscribers. Telecom is 55% owned by Nortel
Inversora, which in turn is jointly controlled by Telecom Italia
and Grupo Werthein; 5% owned by employees; and the remainder is
publicly traded.

CONTACT:  FITCH RATINGS
          Sergio Rodriguez, CFA, +5281 8335-7179
          Dolores Teran, +5411 5235-8120
          Brian Bertsch, 212-908-0549 (Media Relations)



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B E R M U D A
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BOYLE LIMITED: Names Robin J Mayor as Liquidator
------------------------------------------------
     IN THE MATTER OF THE COMPANIES ACT 1981

                       and

         IN THE MATTER OF Boyle Limited

The Member of Boyle Limited, acting by written consent without a
meeting on June 8, 2005 passed the following resolutions:

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

2) 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 Boyle Limited, which is being voluntarily
wound up, are required, on or before June 30, 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 Member of Boyle Limited will be
held at the offices of Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, Bermuda on July 20, 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;

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


BUNSEN LIMITED: Member Resolves to Wind Up Company
--------------------------------------------------
      IN THE MATTER OF THE COMPANIES ACT 1981

                        and

          IN THE MATTER OF Bunsen Limited

The Member of Bunsen Limited, acting by written consent without
a meeting on June 8, 2005 passed the following resolutions:

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

2) 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 Bunsen Limited, which is being voluntarily wound
up, are required, on or before June 30, 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 Member of the Bunsen Limited
will be held at the offices of Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda on July 20,
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;

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


GUILDENSTERN LIMITED: Appoints Robin J Mayor as Liquidator
----------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                           and

          IN THE MATTER OF Guildenstern Limited

The Member of Guidenstern Limited, acting by written consent
without a meeting on June 8, 2005 passed the following
resolutions:

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

2) 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 Guidenstern Limited, which is being voluntarily
wound up, are required, on or before  June 30, 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 Member of Guidenstern Limited
will be held at the offices of Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda on July 20,
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;

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


LORAL SPACE: Unit Selling Satellite Bandwidth to AMNSA
------------------------------------------------------
Loral Skynet announced Tuesday that it has signed an agreement
with Ascent Media Network Services Asia (AMNSA), Singapore, to
provide satellite capacity and access management services to
ESPN STAR Sports. Using dedicated C-band bandwidth on Loral's
Telstar 18 satellite and occasional-use C-band capacity on both
Telstar 18 and Telstar 10, ESPN STAR Sports will uplink live
video from sporting events across Asia to its Singapore
production facility for rebroadcast to cable operators or direct
broadcast service providers in Asia.

"The broad reach of Skynet's Asian satellites allows Skynet and
its partner Ascent Media Network Services to provide
comprehensive regional backhaul coverage to programmers like
ESPN STAR Sports," said Patrick Brant, president, Loral Skynet.
"Since it entered service last year, Telstar 18 has exceeded our
business expectations in terms of utilization. We look forward
to working with Ascent Media and its customers as our
relationship continues to expand in this important region of the
world."

ESPN STAR Sports, a joint venture between ESPN Inc. and STAR, is
Asia's definitive and complete sports provider with thirteen
networks spanning the region - ESPN Asia, ESPN India, ESPN
Taiwan, ESPN Singapore, ESPN Philippines, MBC-ESPN (Korea), ESPN
Hong Kong, STAR Sports Hong Kong, Xing Kong Sports, STAR Sports
India, STAR Sports Taiwan, STAR Sports S.E.A and STAR Sports
Singapore. Feeds for all thirteen networks are aggregated and
produced in Singapore, and then redistributed across Asia, in
line with local audience preferences.

Telstar 18, located at 138 degrees East longitude, and Telstar
10, located at 76.5 degrees East longitude, are powerful Space
Systems/Loral-built 1300 satellites whose combined coverage area
stretches from Western Europe and the Middle East, across
Central Asia through the Indian sub-continent, to China, Korea,
Japan, South East Asia, Australia and the U.S. through Hawaii.
The satellites host a variety of video and data services,
including SkyReach(SM), Loral Skynet's IP-based two-way
broadband service.

In addition to full-time bandwidth services, Skynet offers
occasional use services in Asia on both Telstar 18 and Telstar
10 through a separate agreement with AMNSA. Skynet provides
these part-time services through AMNSA's 24x7 booking and
customer support center, offering customers access to a cost-
efficient platform for delivering breaking news stories, planned
events, or regularly scheduled recurring feeds.

Ascent Media Network Services specializes in video distribution
and post-production services, with facilities in Los Angeles,
CA; New York; NY; Stamford, CT; Minneapolis, MN; London, and
Singapore. Channel origination, master control, creative
services and transmission are among the many offerings utilized
by the major broadcast and cable networks as well as other
content providers. In addition, the group provides a full array
of engineering and technical services for broadcast, cable,
satellite, and corporate clients.

Ascent Media Group is a provider of services to media
entertainment industries, offering clients effective solutions
for the creation, management and distribution of content through
more than 70 facilities worldwide. Ascent Media Group
(www.ascentmedia.com) is headquartered in Santa Monica, CA.

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

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

CONTACT:  LORAL SPACE & COMMUNICATIONS
          John McCarthy
          (212) 338-5345


ROSENCRANTZ LIMITED: Robin J Mayor Named as Liquidator
------------------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                           and

         IN THE MATTER OF Rosencrantz Limited

The Member of the Rosencrantz Limited, acting by written consent
without a meeting on June 8, 2005 passed the following
resolutions:

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

2) 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 Rosencrantz Limited, which is being voluntarily
wound up, are required, on or before June 30, 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 Member of Rosencrantz Limited
will be held at the offices of Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda on July 20,
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;

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 Mayor, Liquidator
         Clarendon House
         Church Street, Hamilton
         Bermuda



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

BANCO BRADESCO: Executive Officers to Propose Dividend In July
--------------------------------------------------------------
Banco Bradesco's Executive Vice President and Investor Relations
Director Jose Luiz Acar Pedro disclosed in a letter dated June
14, 2005 that the Company's Executive Officers plan to propose
to the Board of Directors on July 1, 2005 the payment to the
Company's stockholders with the net amount of R$0.048450 per
common stock and R$0.053295 per preferred stock. He wrote:

The Board of Executive Officers of this Bank, in a meeting held
as of today, decided to propose to the Board of Directors, in a
meeting to be held on July 1st, 2005, the payment to the
Company's stockholders, pursuant to the Corporate By-Laws and
legal provisions, of interest on own capital related to the
month of July 2005, in the amount of R$0.057000 per common stock
and R$0.062700 per preferred stock, benefiting the stockholders
registered in the Company's records on that date (July 1st,
2005).

Upon approval of the proposal, the payment will be made on
August 1st, 2005, at the net amount of R$0.048450 per common
stock and R$0.053295 per preferred stock, after deduction of
Withholding Income Tax of fifteen percent (15%), except for the
legal entity stockholders that are exempt from such taxation,
which will receive for the declared amount.

The respective Interests will be computed, net of Withholding
Income Tax, in the calculation of the mandatory dividends for
the year as provided in the Corporate By-Laws.

The Interests relating to the stocks under custody at CBLC -
Brazilian Company and Depository Corporation will be paid to
CBLC which will be transferred to the stockholders through the
depository Brokers.

CONTACT: Banco Bradesco S.A.
         Predio Novo - 4 ANDAR
         Cidade de Deus
         S/N, Osasco
         Sao Paulo, 06029-900
         Brazil
         Phone: 55-11-3684-9229
         Web site: http://www.bradesco.com.br


ELETROPAULO METROPOLITANA: Fitch Ups Int'l LC, FC Ratings
---------------------------------------------------------
Fitch Ratings has upgraded the international local and foreign
currency ratings of Eletropaulo Metropolitana Eletricidade de
Sao Paulo S.A. (Eletropaulo) to 'B' from 'B-' and concurrently
assigned a preliminary rating of 'B' to the proposed five-year
bond issuance of up to US$200 million. The long-term national
scale corporate rating also was upgraded to 'BB+(bra)' from
'BB(bra)'. Proceeds of the proposed debt issuance will be used
to refinance existing bank debt and for general corporate
purposes. All ratings also have been assigned a Positive
Outlook.

The upgrades reflect Eletropaulo's improving credit protection
measures, which should strengthen over the next year supported
by projected growth in operating income and cash flow and the
expected reduction in annual debt service. The company earlier
this year prepaid debt by approximately R$184 million with
proceeds of the third tranche of the rationing loan (R$243
million, representing 90% of rationing losses for 2002) and the
company paid its scheduled amortization in March 2005 in the
amount of R$62 million. The company's debt structure includes an
amortization schedule that reduces refinancing risk over the
next few years and should result in lower total debt levels.
Eletropaulo should also benefit from the improved outlook for
the Brazilian regulatory environment.

Projected operating cash flow is expected to be sufficient to
meet scheduled debt service payments as well as projected
capital expenditures over the next few years. At least 50% of
the proceeds of the proposed international bond issuance will be
used to refinance on a pro rata basis a portion of the R$1.8
billion (US$670 million equivalent) bank debt (as of March 2005)
that was restructured in 2004. The new debt issuance would
further lengthen the average life though slightly increasing
overall interest expense. Even with the proposed new five-year
bullet maturity, the amortization schedule should result in a
material deleveraging of the company over the next few years.
Longer term, Fitch expects that the company will likely issue
additional debt depending on market conditions to maintain a
balanced capital structure consistent with a debt-to-EBITDA
ratio of 2.5x-3.0x.

The company is supported by its large, stable customer base but
continues to be pressured due to lower demand following the
electricity rationing of 2001 and the beginning of 2002, as
consumption growth has been slow to materialize. Going forward,
the company expects stable demand levels through 2005 with
modest growth beginning in 2006. Future improvement in operating
cash flow should also benefit from improving operating
efficiencies and a more favorable economic environment.

Through March 2005, net revenues were BRL2 billion (versus
BRL1.6 billion on March 2004) and un-adjusted EBITDA was BRL289
million (versus BRL258 million). Debt-to-EBITDA improved to 4.6x
in first-quarter 2005 compared to 5.1x in first-quarter 2004.
Revenues and EBITDA for first-quarter 2005 and fiscal year 2004
were positively affected by a 17.9% average tariff increase in
July 2004, which included 50% of the deferred CVA adjustment
from 2003, and an additional 0.7% increase in September 2004.

On an adjusted basis, which includes the positive adjustment for
RTE (regulatory asset amortization), interest on Fundacao CESP
debt and an adjustment of CVA (cash costs paid but not
reported), adjusted EBITDA figures for 1Q2005, 1Q2004, and full
year 2004 are R$618 million, R$359 million and R$2.1 billion,
respectively. The increase in adjusted EBITDA in 2005 primarily
reflects past costs now being recovered [including Itaipu energy
purchases, ESS (System Service Charge), and CDE (Energy
Development Account)] and a temporary favorable above-average
spread between sale tariffs and energy purchases. Resulting
debt-to-adjusted EBITDA through March 2005 (LTM) was 2.3x while
adjusted EBITDA covered cash interest expense by 4.3x, an
improvement over fiscal 2004 ratios of 2.5x and 3.5x,
respectively. Coverage ratios are expected to improve in the
near term, reflecting an expected positive annual tariff
adjustment in July and continued consumption growth, and longer
term as debt further amortizes.

Eletropaulo is the largest electricity distributor in Latin
America in terms of revenues. Eletropaulo essentially operates
as a natural monopoly for the distribution of electricity in its
concession area. The company has a 30-year exclusive concession
(beginning in 1998) to distribute electricity to a service
territory that includes 5.1 million customers in 24
municipalities in the greater Sao Paulo metropolitan area.

CONTACT:  Jason T. Todd +1-312-368-3217, Chicago
          Mauro Storino +5521 4503-2600, Rio de Janeiro

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


TELEMAR: Mobile Subscriber Base Grows to Eight Million
------------------------------------------------------
Tele Norte Leste Participacoes S.A. (NYSE: TNE) announced Monday
that its wireless arm Oi, the first cellular operator in Brazil
to utilize GSM, reached 8 million subscribers, after only three
years of operation. To date in 2005, Oi has added more than one
million clients to its customer base, representing 16% year-to-
date growth.

Oi remains focused on further increasing synergies with TNE's
fixed-line operations. For the full year 2005, Oi expects to
increase its subscriber base slightly faster than the 25% growth
it estimates for the overall Brazilian wireless market.

CONTACT: Telemar TNE
         Investor Relations
         E-mail: invest@telemar.com.br

         Roberto Terziani
         Phone: 55 21 3131 1208

         The Global Consulting Group
         IR Team
         Phone: 55 21 3131 1313 - 1317

         Kevin Kirkeby
         E-mail: kirkeby@hfgcg.com
         Fax: 55 21 3131 1155
              1-646-284-9494
         Phone: 1-646-284-9416

         URL: http://www.telemar.com.br/ir



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

GRUPO MEXICO: Asarco Employees Prepare to Initiate Strike
---------------------------------------------------------
Grupo Mexico's US copper mining and production subsidiary Asarco
is facing a strike threat after failing to come up with an offer
for new labor contracts+. Business News Americas reports that
the United Steelworkers of America union (USWA), which
represents a large majority of Asarco's unionized employees, is
carrying out strike preparation sessions in Arizona and Texas
for all unionized workers of Asarco.

According to USWA District 12 director Terry Bonds, contracts
covering nearly 750 hourly-paid Asarco employees in Arizona and
Texas expired last year. Since then, employees have been working
without a new labor agreement under the terms and conditions of
the expired agreements, he said.

Asarco, besides failing to make an acceptable offer for new
contracts, is also demanding a wage freeze and "substantial
reductions" in health care and pension benefits, Bonds added.

"With copper prices at 10-year highs, Asarco's proposals are
unfair and unjust. We must prepare for the worst if it becomes
clear we are unable to negotiate a fair and equitable agreement
acceptable to our members," Bonds said.



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

DORAL FINANCIAL: Kirby, McInerney Files Class Action Lawsuit
------------------------------------------------------------
The law firm of Kirby McInerney & Squire, LLP announces that a
class action lawsuit has been commenced in the United States
District Court for the Southern District of New York on behalf
of purchasers of Doral Financial Corp. ("Doral" or the
"Company") (NYSE:DRL) securities, as described more fully below.

If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please
contact us by phone at (888) 529-4787, or by email at
obraun@kmslaw.com for more information. If you are a member of
the purported class, you may move the Court to serve as lead
plaintiff through counsel of your choice, or you may choose to
do nothing and remain an absent class member.

Doral, the largest residential mortgage lender in Puerto Rico,
engages in mortgage banking, including thrift operations,
institutional securities operations and insurance agency
activities. The action charges Doral and certain of its officers
with violations of the federal securities laws. The alleged
violations stem from the dissemination of false and misleading
statements which had the effect of artificially inflating the
price of Doral securities.

The Complaint alleges that, throughout the period from September
29, 2003 through April 19, 2005 (the "Class Period"), Doral's
purported financial results -- including Doral's assets, net
income, and net gain on mortgage loan sales -- had been
materially inflated through the materially incorrect valuation
of and accounting for Doral's interest-only strip ("IO Strip")
portfolio. Investors were first alerted to issues with Doral's
IO Strip on January 19, 2005, when Doral announced a $97.5
million write-down of the portfolio's carrying value -- causing
Doral securities to decline materially. The decline accelerated
in mid-March 2005 when Doral's Form 10-K and Annual Report
revealed further negative information about the value and
valuation of Doral's IO Strips. Finally, on April 19, 2005,
Doral admitted that its valuation methodology for IO Strips
throughout 2000-2004 had been incorrect, that it would have to
restate its previously-issued financial statements, and that it
expected that the restatement would decrease the previously-
reported fair value of its IO Strips by $400-$600 million (a
45%-68% devaluation) and would necessitate a $290-$435 million
charge against earnings for the required adjustments (i.e., 25%-
35% of the net income that Doral reported for that period).

The action charges Doral and certain of its senior officers with
violations of sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, as
well as section 11 of the Securities Act of 1933. The action is
brought on behalf of a proposed class of all investors who
purchased Doral's 4.75% preferred stock during the Class Period.

Kirby McInerney & Squire, LLP which represents the plaintiffs,
has specialized in complex litigation, including securities
class actions, for several decades. The firm has repeatedly
demonstrated its expertise in this field, and has been
recognized by various courts which have appointed the firm to
major positions in consolidated and multi-district litigation.
The firm's efforts on behalf of shareholders in securities
litigation have resulted in recoveries totaling hundreds of
millions of dollars, and the firm's achievements and quality of
service have been chronicled in numerous published decisions.
More information about the firm, class actions in general, or
about the role of the lead plaintiff in a securities class
action can be obtained through Kirby McInerney & Squire's
website at http://www.kmslaw.com.

If you are a member of the class described above, you may, no
later than June 20, 2005, move the Court to serve as lead
plaintiff of the class, if you so choose, pursuant to the
Private Securities Litigation Reform Act of 1995 (the "PSLRA"),
15 U.S.C. sections 78u-4(a) and 77z-1(a). A lead plaintiff is a
representative party that acts on behalf of other class members
in directing the litigation. Under certain circumstances, one or
more class members may together serve as lead plaintiff. Your
ability to share in any recovery is not, however, affected by
the decision whether or not to seek appointment as a lead
plaintiff.

More information on this and other class actions can be found on
the Class Action Newsline at www.primezone.com/ca.

CONTACT:  Kirby McInerney & Squire LLP
          Orie Braun
          (212) 371-6600
          (888) 529-4787
          obraun@kmslaw.com



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Trade Unionist Advises Government to Keep Airline Flying
--------------------------------------------------------------
The government must keep BWIA flying, Mr. David Abdulah,
president of the Federation of Independent Trade Unions and Non
Governmental Organisations (FITUN), made this recommendation in
a letter to Trade and Industry Minister Kenneth Valley.

"BWIA is a vital and strategic national enterprise and must not
be closed down," Mr. Abdulah said in the letter.

He stated that BWIA provided essential air services to Trinidad
and Tobago and the Caribbean, without which this country and the
region would be adversely affected in terms of Caribbean
integration, Caricom, CSME and the ACS.

Abdulah also advised the government to keep at least 75% the
airline's shares.

"It is quite obvious from the experiences of BWIA and Air
Jamaica that privatization has not worked. It is pointless
seeking to return to a state of private ownership when this has
been proven to be a failure," the trade unionist said.

In April, independent Senator Ramesh Deosaran recommended BWIA's
closure, saying the airline is not making money. His
recommendation came days after the government threw a US$35.6
million lifeline around BWIA's neck.

To see important facts about BWIA:
http://bankrupt.com/misc/BWIA.pdf

CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA)
         Phone: + 868 627 2942
         E-mail: mail@bwee.com
         Home Page: http://www.bwee.com



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

URUGUAYAN BANKS: BROU to Embark on $2.8B Refinancing Process
------------------------------------------------------------
A source from state bank Banco Republic (BROU) revealed that the
bank will refinance some 70,000 financial system debtors,
including its own debtors and also those of liquidated banks -
Comercial, Montevideo, Caja Obrera and De Credito - to the tune
of US$2.8 billion.

According to Business News Americas, BROU will refinance up to
US$250,000 per debtor, in the case of loans issued as of
December 2002 and which are past due as of December 31, 2004.

Debtors will have until September 30th to refinance their debts.

BROU president Fernando Calloia said the plan must get the
backing of the general public in order for it to succeed.

"If the idea prevails that nothing will be enough, the success
of the process will be limited," Calloia said.

The bank's board reportedly said the refinancing process would
not affect BROU's equity and will permit the bank to incorporate
debtors who are currently outside the formal financial system
into its customer base.



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

PDVSA: 1Q05 Production Output Falls Short of Target
---------------------------------------------------
State oil firm PDVSA produced an average of 3.3. million barrels
of oil a day (Mb/d) in the first quarter of this year, reports
Business News Americas. Energy and oil minister and PDVSA
president Rafael Ramirez said the Company missed the 3.4Mb/d
production target set in the government's 2005 budget to meet
fiscal goals this year.

The budget estimated an oil price of US$23 a barrel compared to
an average export basket price this year of about US$40/b.

"We already identified that in the first quarter results we were
not adjusting our production to what we had planned in terms of
volume for the budget," Mr. Ramirez said.

"We have been taking action to reactivate some wells that have
lacked steam and gas injection. We will be able to present
better results in a few months," said Mr. Ramirez, "In Monagas
[state] we are already producing 25,000b/d above our goal."

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: To Invest $500M in New JV Project With Cadafe
----------------------------------------------------
State oil firm PDVSA and state-owned power company Cadafe have
formed a joint venture project which will see the creation of a
300MW thermoelectric plant in the western state of Falcon,
reports Business News Americas.

According to Cadafe president and energy and oil deputy minister
Nervis Villalobos, the Companies will call for bids in "the next
few weeks" on a turnkey contract to build the plant, which will
supply PDVSA's refining facilities in Falcon state.

The project will require an investment of US$500 million.

PDVSA has previously teamed up with Cadafe through the latter's
subsidiary Eleoriente in a project to build two substations in
Anzoategui state.

Cadafe operates about 15,000km of power lines across Venezuela
including hundreds of substations and has about 4,000MW
installed capacity.


SIDOR: Offers Additional Equity Stake to Workers
------------------------------------------------
Workers of Siderurgica del Orinoco (Sidor), who were not able to
acquire shares in the steelmaker last year under the first phase
of the workers participation program, will have their chance to
do so until June 22. According to Business News Americas, Sidor
started selling shares this week under the second phase of the
program, aiming to sell off 10.4% of Sidor to give workers a 20%
total stake in the Company.

The process, which is being managed by Banco de Desarrollo
Economico y Social (Bandes) and the state heavy industry holding
company Corporacion Venezolana de Guayana (CVG), will run until
June 22, according to Sidor's workers union (Suttis) official
Johny Luna.

Meanwhile, Sidor workers are still trying to figure out which
system should be applied in distributing the first dividend
payments.

"Now we are negotiating which system would be applied, whether
[the dividends] would be distributed per share or in a linear
way [equitably]," Luna said.

The union said this first distribution payment should be linear,
meaning the payment must equally take into account Sidor's
entire workforce - partners, pensioners, retired workers and
former workers - so for the first time all would benefit.

But others say the payment should be made according to the
number of shares held by each worker.

"Due to this problem we are now submitting a referendum so that
finally shareholders will be the ones who decide on the plan,"
Luna added.

However, news reports say mining and basic industry (Mibam)
minister Victor Alvarez has already signed an agreement
assigning payments to shareholders who own shares.

Sidor is 60%-owned by the Amazonia consortium made up of
Mexico's Hylsamex, the Techint group, Brazil's Usiminas and
Venezuela's Sivensa. The Company's plants are in Puerto Ordaz in
southeastern Venezuela's Bolivar state.


                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Sheryl Joy P. Olano, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
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The TCR Latin America subscription rate is $575 per half-year,
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members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
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