TCRLA_Public/050621.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 21, 2005, Vol. 6, Issue 121

                            Headlines


A R G E N T I N A

AGUSTI S.A.A.I.C.I.F.I.E.: Liquidates Assets to Pay Debts
CUIDAR SALUD: Court Declares Company Bankrupt
EDESUR: UNIREN Letter of Understanding to Add Revenue
FRANCER S.R.L.: Debt Payments Halted, Moves to Reorganize
INGEOMA S.A.: Gets Court Approval for Reorganization

MANUFACTURAS: Enters Bankruptcy on Court Orders
TELEFONICA DE ARGENTINA: Moodys Ups FC Ratings to B3 From Ca
* SANTIAGO DEL ESTERO: Fitch Downgrades Series 05 notes to 'D'


B E R M U D A

FOSTER WHEELER: Moody's Raises Corporate Credit Rating


B O L I V I A

* BOLIVIA: Fitch Revises Sovereign Ratings; Outlook to Negative


B R A Z I L

CEMIG: Interest on Equity to be Paid on June 30
ELETROBRAS: Ratings Influenced by Majority Government Ownership
PARMALAT BRASIL: Laticinios Plans Industria de Alimentos Buy
TCP: Releases Results of Bovespa Auction Held on June 17
USIMINAS: Ratings Reflect Exposure to Volatile Steel Sector

VARIG S.A.: Obtains Initial NBRL Stay Order


D O M I N I C A N   R E P U B L I C

REPUBLIC BANK (DR): Parent Announces Name Change
TRICOM: Carlson Resigns as CEO, Board Names Noboa Succeessor


J A M A I C A

DYOLL GROUP: Liquidator to Meet With Contributors, Creditors


M E X I C O

METALFORMING TECHNOLOGIES: Files For Chapter 11 in Delaware
SATMEX: Rules Out Plan to File for Bankruptcy in Mexico


P A N A M A

WILLBROS GROUP: Placed on Default Notice by Noteholder


U R U G U A Y

GALICIA URUGUAY: Completes Exchange Offer


V E N E Z U E L A

CANTV: Moves to Expand Mobile Unit's Network


     - - - - - - - - - -


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

AGUSTI S.A.A.I.C.I.F.I.E.: Liquidates Assets to Pay Debts
---------------------------------------------------------
Buenos Aires-based Agusti S.A.A.I.C.I.F.I.E. will begin
liquidating its assets following the pronouncement of the city's
civil and commercial Court No. 22 that the Company is bankrupt,
reports Infobae. The bankruptcy ruling places the Company under
the supervision of court-appointed trustee, Mateo Reynaldo
Alberto. The trustee will verify creditors' proofs of claim
until Aug. 4, 2005. The validated claims will be presented in
court as individual reports on Sep. 15, 2005.

Mr. Alberto will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy on Nov. 27, 2005.

The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.

Clerk No. 43 assists the court on this case.

CONTACT: Mr. Mateo Reynaldo Alberto, Trustee
         Saavedra 237
         Buenos Aires


CUIDAR SALUD: Court Declares Company Bankrupt
---------------------------------------------
Cuidar Salud S.A. is now "Quiebra" - meaning bankrupt, says
Infobae. Buenos Aires' civil and commercial Court No. 4 decreed
the Company's bankruptcy and appointed Oscar Chapiro, as
receiver for the Company. Mr. Chapiro will be reviewing
creditors' claims until Aug. 8, 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.
7, will conclude the bankruptcy process by liquidating its
assets to repay creditors.

CONTACT: Mr. Oscar Chapiro, Trustee
         Avda Raul Scalabrini Ortiz 151
         Buenos Aires


EDESUR: UNIREN Letter of Understanding to Add Revenue
-----------------------------------------------------
Chilean Enersis S.A. Chief Financial Officer Alfredo Ergas Segal
disclosed in a letter to Securities and Insurance Superintendent
Alejandro Ferreiro Y dated June 17, 2005 that its subsidiary in
Argentina, Empresa Distribuidora Sur Sociedad Anonima (EDESUR)
signed a Letter of Understanding with the Unidad de
Renegociacion y Analisis de Contratos de Servicios Publicos
(UNIREN).

In the letter, he wrote:

"We hereby inform you that on this date, our subsidiary in
Argentina, Empresa Distribuidora Sur Sociedad Anonima (EDESUR)
signed a Letter of Understanding with the Unidad de
Renegociacion y Analisis de Contratos de Servicios Publicos
(UNIREN), (Renegotiation and Analysis of Public Services
Contracts Unit), an entity related to the Ministry of the
Economy and Production and Federal Planning, Public Investment
and Services, within the framework of the process of
renegotiation of the Concession Contract of EDESUR established
in Law N§ 25.561 (Public Emergency and Reform of the Exchange
Regulations Law) and the complementary norms of the Republic of
Argentina.

This Letter of Understanding includes the terms and conditions
that, once the other procedures established in that country have
been complied with, will constitute the base of the Agreement on
the Integral Renegotiation of the Concession Contract between
the National Executive and EDESUR.

The document establishes a Transitional Tariff Regulation
starting on November 1, 2005 with an increase in the average
tariff for the service of no higher than 15%, submits for the
approval of the authorities the payment of dividends during the
period of this Transitional Regulation and includes other
aspects related to investments and the quality of their service.
Additionally, the Agreement establishes an Integral Tariff
Review between the signing date of the Letter of Understanding
and September 30, 2006. This process will set the new tariff
regulations that will come into force on November 1, 2006 for a
period of 5 years, under the authority of the National
Electricity Regulatory Entity, in accordance with Law Number
24.065.

In addition, the Letter of Understanding imposes the obligation
to initially suspend and subsequently desist from all legal
action initiated against the Government of Argentina by EDESUR
and by its shareholders. This requirement will imply that
ENERSIS S.A. suspends the international arbitration process
initiated on April 25, 2003 before the Centro Internacional de
Arreglo de Diferencias Relativas a Inversiones entre Estados y
Nacionales de Otros Estados, CIADI, (International Centre for
the Settlement of Investments Disputes, ICSID), to file a
request against the Republic of Argentina for damages deriving
from the actions of the Republic of Argentina with the
introduction of the Law on Public Emergency and Reform of the
Exchange Regulations and its legal and regulatory norms, with
respect to its investment in Edesur. Following the publication
of the Resolution approving the tariffs as a result of the
Integral Review of Tariffs, ENERSIS S.A. and its subsidiaries
Enersis Internacional, Chilectra S.A., Chil ectra Internacional,
Empresa Nacional de Electricidad S.A. and Elesur S.A. would
proceed to desist from the international arbitration process
before the CIADI mentioned above.

According to preliminary estimates made by Enersis, the signing
of the Letter of Understanding by Edesur and the period of the
Transitional Tariff Regulation that extends from November 1,
2005 to November 1, 2006, will produce a positive effect on
ENERSIS S.A.'s results, estimated in US$ 17 million.
Furthermore, it is expected that the new tariff regulation to be
negotiated, and which will be in force for 5 years starting on
November 1, 2006 will produce at least, a positive effect
equivalent to that obtained during the period of the
Transitional Tariff Regulation mentioned above, although it is
not possible at this time to make more precise estimates."


FRANCER S.R.L.: Debt Payments Halted, Moves to Reorganize
---------------------------------------------------------
Court No. 1 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Francer S.R.L., says Infobae. The Company filed a
"Concurso Preventivo" petition after it failed to pay its
creditors. The city's Clerk No. 2 assists the court on this
case.

CONTACT: Francer S.R.L.
         Coronel Pagola 3826
         Buenos Aires


INGEOMA S.A.: Gets Court Approval for Reorganization
----------------------------------------------------
Ingeoma S.A. will begin a reorganization process as its petition
to Court No.11 of Buenos Aires' civil and commercial tribunal
was approved. The process allows the Company to negotiate a
settlement with its creditors in order to avoid a straight
liquidation.

Ricardo Adrogue will oversee the reorganization proceedings as
the court-appointed trustee. He will verify creditors' claims
until Sep. 2, 2005. The validated claims will be presented in
court as individual reports on Oct. 17, 2005.

Mr. Adrogue 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 Nov. 28, 2005.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on April 25, 2006.

Clerk No. 21 assists the court on this case.

CONTACT:  Mr. Ricardo Adrogue, Trustee
          Bouchard 468
          Buenos Aires


MANUFACTURAS: Enters Bankruptcy on Court Orders
-----------------------------------------------
Manufacturas de Cintas Industriales S.A. (formerly called
Manufacturas Don Alberto S.A.C.I.F.I. y A.) enters bankruptcy
protection after Court No. 21 of Buenos Aires' civil and
commercial tribunal, with the assistance of Clerk No. 41,
ordered the Company's liquidation. The order effectively
transfers control of the Company's assets to a court-appointed
trustee who will supervise the liquidation proceedings.

Infobae reports that the court selected Ernesto Jacobo Bermann
as trustee. Mr. Bermann will be verifying creditors' proofs of
claim until the end of the verification phase on Aug. 26, 2005.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on Oct. 7, 2005 followed by the general report, which is due on
Nov. 21, 2005.

CONTACT: Manufacturas de Cintas Industriales S.A.
         Paraguay 1446
         Buenos Aires

         Mr. Ernesto Jacobo Bermann, Trustee
         Avda Cordoba 817
         Buenos Aires


TELEFONICA DE ARGENTINA: Moodys Ups FC Ratings to B3 From Ca
------------------------------------------------------------
Moody's Investors Service upgraded the long-term foreign
currency debt ratings of Telefonica de Argentina SA (TASA) to B3
from Ca. The rating outlook is stable. Approximately $700
million in debt is affected.

The upgrade reflects the fact that the company has managed to
stabilize its operations and restructured and reduced debt in
the aftermath of the 2002 devaluation of the Argentinean peso.

The ratings upgrade also reflects TASA's ability to generate
positive free cash flow and reduce leverage, despite the tariffs
freeze and pesification since 2002. After a drop in revenues as
well as the number of total lines in service during 2002, the
company's operations stabilized in fiscal year 2003 and produced
growth in 2004 of both revenues and lines in service In
particular, 2004 showed growth in DSL services which are not
regulated. However, DSL contribution is still small relative to
total sales, and competition from other broadband providers --
largely cable companies -- remains important.

In spite of the difficult operating environment, TASA improved
its operating performance during the past two years, as shown by
EBITDA margin improvement over the period from 43% to 57% and
EBIT margins swinging from -1.7% to 19%. The improvement
reflects significant reductions in costs at all levels; sales,
general & administrative expenses dropped from over 28% of sales
in fiscal year 2002 to 17% in fiscal year 2004, while cost of
service fell from 73% to 63%.

Moody's believes that at the current tariff and debt levels,
TASA will be able to generate positive cash flows and reduce
leverage despite inflation during the next few years. Moody's
rating action reflects our estimates that 2005 free cash flow
will be approximately 18% of debt, and that debt will be less
than 2.5X EBITDA.

However, although TASA's financial metrics are currently strong
relative to other emerging markets telephone companies, some
regulatory uncertainty exists including, the lack of a
resolution on the current negotiation of tariffs adjustment
mechanisms going forward between telecom companies and the
government.

TASA is the incumbent basic telephone service provider in its
area of influence, the southern region of the country, where it
has a strong market position. Long distance services in the
corporate segment have been more competitive, but TASA still has
a strong market position in its area. Organic growth in the
basic telephone services business will remain limited due to the
mature nature of the market, and should largely come from value-
added services, dial-up internet and DSL.

TASA is 98% owned by the Telefonica Group (Spain). While Moody's
believes that Argentinean operations will continue to be of
strategic importance to Telefonica Group, we do not look for the
parent to provide any significant external financial support and
have not factored such support into the ratings upgrade.

A definitive agreement regarding the tariff adjustment
mechanism, a more stable and predictable regulatory framework,
and continued replacement of dollar denominated debt with local
currency denominated debt could result in an upward ratings
pressure.

On the other hand, if tariffs remain frozen and inflation rises
significantly, ratings could come under downward pressure.
Additional downward pressure could also result from devaluation
of the Argentinean peso, if TASA continues to hold a high
proportion of dollar denominated debt, and if there is a
significant deterioration in its financials metrics.

Headquartered in Buenos Aires, Argentina, TASA is a
telecommunications service provider, which is 98% owned by the
Telefonica Group (Spain).


* SANTIAGO DEL ESTERO: Fitch Downgrades Series 05 notes to 'D'
--------------------------------------------------------------
Fitch Ratings has downgraded the global scale foreign and local
currency ratings of Santiago del Estero's series 05 under the
co-participation tax revenue collateralized medium-term note
program, to 'D' from 'C'. Additionally, Fitch has placed the 'C'
rating of series 04 notes on Rating Watch Negative.

The rating action followed the default on the debt service
payment of series 05 notes, of US$10,828,019 due on June 16,
2005. The trustee did not inform why it did not use the funds
deposited in the reserve account in order to pay the debt
service.

This constitutes an event of default and, consequently the
holders of at least 20% of the aggregate principal amount of
series 05 notes outstanding may declare immediately due and
payable the principal amount of all the notes issued under the
medium-term note program (including series 04 notes).

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

FOSTER WHEELER: Moody's Raises Corporate Credit Rating
------------------------------------------------------
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Friday that Moody's
Investors Service has raised Foster Wheeler's corporate credit
rating to "B3". This new rating replaces the Moody's rating of
"Caa2," which had applied following the Company's successful
equity-for-debt exchange completed during the second half of
2004.

Moody's also rated the Company's Senior Secured Notes due 2011
as "B3." Advising a rating outlook of "stable," Moody's
commented that "the stable outlook reflects the Company's
success in arresting declining backlogs and the expectation that
its book of business will continue to improve."

"We are pleased that Moody's has chosen to raise our corporate
credit rating," said Raymond J. Milchovich, chairman, president
and chief executive officer. "Our objective for 2004/2005 was to
successfully restructure the company's balance sheet and
operations and this revised rating is a further confirmation of
our achievements to date. Our focus now is on booking new
business, building backlog, and delivering 'best in class'
products and services which consistently meet or exceed our
clients' expectations."

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
         or
         Investor Contact:
         John Doyle
         Phone: 908-730-4270
         or
         Other Inquiries:
         Phone: 908-730-4000
         URL: http://www.fwc.com



=============
B O L I V I A
=============

* BOLIVIA: Fitch Revises Sovereign Ratings; Outlook to Negative
---------------------------------------------------------------
Fitch Ratings revised Friday the Outlook on the Republic of
Bolivia's ratings to Negative from Stable. Fitch also affirmed
Bolivia's long-term local and foreign currency ratings at 'B-'.

'The revised Outlook reflects Fitch's concerns that recent
social and political turmoil could jeopardize medium-term
economic prospects, which would have negative implications for
poverty reduction and debt sustainability,' said Theresa Paiz
Fredel, Fitch sovereign analyst for Bolivia. In addition,
Bolivia's highly dollarized financial system increases the
country's vulnerability to both domestic and external shocks.
Given the G-8's recent announcement to grant Bolivia and other
highly indebted countries additional debt relief, Fitch believes
that international support could continue to be forthcoming in
the form of official financing and/or donations. Additionally,
access to domestic borrowing and export earnings, from
hydrocarbons in particular, should be sustained in the immediate
future, contributing to the sovereign's ability to service its
debt in a timely manner. However, given the tense social and
political environment, an interruption of cash flows to the
government cannot be ruled out.

Bolivia is among the poorest countries rated by Fitch, a factor
that constrains its credit rating due to policy implications and
contributions to social unrest. Widespread poverty and declines
in informal sector income have contributed to a prolonged period
of social unrest and reform fatigue, as well as increased
social, political, and regional fragmentation. Over time, the
severe level of polarization in the country has made it
difficult for the government to implement fiscal adjustment
measures and complete its structural reform agenda. In addition,
the government has not been able to develop a consensus on
medium-term economic policies, particularly with respect to
providing a new hydrocarbons framework. This situation derailed
an important Liquefied Natural Gas (LNG) project in 2003 and led
the Congress to approve a new hydrocarbons law in May 2005 that
could be detrimental to maintaining and/or attracting new
foreign investment.

Furthermore, governability has become increasingly difficult,
resulting in the resignations of both President Gonzalo Sanchez
de Lozada in October 2003 and President Carlos Mesa in June
2005. After being sworn in as president on June 9, Eduardo
Rodriguez, the ex-chief justice of the Supreme Court, and the
fourth in line for constitutional succession of the presidency,
will be focusing on preparing the country for congressional and
presidential elections. As such, the daunting task of addressing
the demands of Bolivians for the nationalization of the energy
sector, the drafting of a new constitution, and a referendum
that would give Bolivia's regions more autonomy will most likely
be delayed until the next democratically elected government
arrives in office.

In spite of a prolonged period of social unrest and political
uncertainty, Bolivia's macroeconomic performance improved last
year due to a benign international environment and the
government's efforts to tighten fiscal policy. Real GDP growth
picked up to around 3.6% in 2004 from 2.8% in 2003, underpinned
by exports of hydrocarbons and minerals. High international
commodity prices and increased export volumes also benefited
Bolivia's external accounts, with export growth reaching 35%.
The combined public sector deficit declined to 5.7% of GDP in
2004 from 8.1% of GDP in 2003 (including grants). Fiscal
consolidation and growth contributed to an improvement in
Bolivia's debt ratios, while inflation remained in single
digits.

A loss of international support or a further deterioration of
the social and political environment that affects debt service
capacity or willingness could trigger a downgrade. Conversely,
more clarity on debt forgiveness and/or an easing of social
tensions, which results in improved governability could lead to
a revision of the Outlook back to Stable.

CONTACT: Theresa Paiz Fredel +1-212-908-0534, New York

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



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

CEMIG: Interest on Equity to be Paid on June 30
-----------------------------------------------
Companhia Energetica De Minas Gerais - CEMIG released a notice
Friday to inform stockholders that the payments of Interest on
Equity approved by the meetings of the Board of Directors held
on June 31, Aug. 26 and Nov. 30 last year will be paid on June
30, 2005, as follows:

- Interest on Equity in the amount of R$ 200,000,000.00 (two
hundred million Reais), corresponding to R$ 1,233922 per
thousand shares, which will be paid to all stockholders whose
names were on the Company's Nominal Share Register on
06/10/2004;

- Interest on Equity in the amount of R$ 100,000,000.00 (one
hundred million Reais), corresponding to R$ 0.616961 per
thousand shares, which will be paid to all stockholders whose
names were on the Company's Nominal Share Register on
08/09/2004;

- Interest on Equity in the amount of R$ 46,200,000.00 (forty
and six million and two hundred thousand Reais), corresponding
to R$ 0,285036 per thousand shares, which will be paid to all
stockholders whose names were on the Company's Nominal Share
Register on 12/10/2004;

The payment will be made automatically for all stockholders
whose details are up to date in the registry of Banco Itau S.A.

CONTACT: Companhia Energetica De Minas Gerais - CEMIG
         Investor Relations:
         Phone: 31 3299-3930
                31 3299-4015
         URL: www.cemig.com.br
         E-Mail: ri@cemig.com.br
         Fax: 31 3299-3934
              31 3299-3933


ELETROBRAS: Ratings Influenced by Majority Government Ownership
---------------------------------------------------------------
Rationale

Eletrobras - Centrais Eletricas Brasileiras' ratings are linked
to the Federative Republic of Brazil's sovereign ratings
(foreign currency BB-/Stable/--; local currency BB/Stable/--),
reflecting Eletrobras' majority government ownership (58.4%).
This strongly influences the company's business planning, and
large incentives to support it. The ratings also reflect its
strategic role in financing the electric power industry in
Brazil, and managing federal assets in generation, transmission,
and distribution. At the same time, the ratings reflect the
company's significant exposure to sovereign-related risks,
including an evolving regulatory environment in Brazil, which
can affect the credit quality of its loan portfolio, the
performance of its subsidiaries that might require financial
support from Eletrobras, and potential interference from the
federal government.

Eletrobras is one of the main financial agents for the Brazilian
electricity sector, lending to its own subsidiaries, as well as
to other electric power companies. As such, the risk profile of
the company's loan portfolio is directly related to the systemic
risk of the electric sector, which largely determine the credit
quality of Eletrobras' creditors. The funding for its financing
activities is a combination of internally generated cash
originated from the repayment of interest and principal of its
loans, which has proved to be a fairly stable source of cash
flow, access to the international and domestic capital markets
and government electricity funds that it manages. The holding
company is also responsible for supporting the expansion and
development of the electric system, as well as social programs
through the administration of federal programs and funding (such
as Reserva Global de Reversao and Conta de Desenvolvimento
Energetico).

Eletrobras's debt level is low when compared with its large
amount of accounts receivable, which provides a comfortable
cushion to deal with occasional problematic loans. The inflow of
receivables covers annual debt obligations by at least 2x, and
cash flow protection measures are strong for the rating
category, with the annualized EBITDA to total debt and total
debt to EBITDA at 91% and 1x, respectively. Interest income from
loans granted to the energy sector accounted for about Brazilian
real (BrR) 1.1 billion in the first three months of 2005 (BrR4.1
billion in December 2004), improving about 9% compared with the
same period in 2004. Such improvement is related to the small
devaluation of 0.4% of the Brazilian Real against the dollar
during the quarter, which had a positive result as 53% of the
loan portfolio is denominated in foreign currency.

Funds from operations (FFO) reached about BrR450 million in
March 2005. The annualized FFO interest coverage and FFO to
total debt were 2.6x and 26%, respectively, in first-quarter
2005. Projection indicates an average cash generation (FFO) of
BrR1.2 billion per year.

Liquidity

Liquidity is adequate for the rating category. As of March 30,
2005, the company's total debt reached BrR4.5 billion, of which
BrR1.6 billion matures in the short term. Main debt maturities
include a BrR750 million (US$300 million) international bond due
in June 2005 and BrR410 million (US$165 million) syndicated loan
in April 2005. The remaining is due to multilateral
institutions, which represent around 43% of the total debt and
which the federal government guarantees. Eletrobras plans to
raise about BrR$1 billion (US$400 million) in the international
market by the end of June to recover its cash position, which
was used to honor its debt maturities. Another liquidity source
is its internal cash generation, with FFO expected to reach
BrR1.2 billion at fiscal-year-end 2005.

In March 2005, 100% of Eletrobras total debt was in foreign
currency, and is hedged internally by the company's large
accounts receivables, also in foreign currency (about BrR21
billion, or 53% of total loans, and where the main debtor is
Itaipu Binacional (a joint venture with Paraguay).

The capital expenditure program of its subsidiaries is expected
to reach BrR4.2 billion for this year. About 36% will be
invested in generation, especially for the continuation of the
4,200 MW Tucuru” hydroelectric power plant expansion, and 43%
will be invested in transmission. The remainder will be invested
in distribution and social programs. Eletrobras also plans to
bid for build-and-operate concessions for new power generation
projects that the government plans to tender by year-end 2005
and for the transmission grid. The bidding will be made through
its subsidiaries along with other partners and not through
Eletrobras (holding) as it did in the past for the existing
assets.

Outlook

The stable outlook on the foreign currency rating reflects that
of the Federative Republic of Brazil. The stable outlook on the
local currency reflects the expectation that Eletrobras will
continue to play an essential role in Brazil's electricity
sector and therefore continue receiving implicit support from
its majority owner, the federal government. In addition,
Eletrobras is expected to adequately cover its debt-service
obligations, considering its liquidity position. Holding company
debt levels are moderate, and 51% (from multilateral
institutions) is guaranteed by the federal government. The
proportion of guaranteed debt is expected to decline during
coming years as Eletrobras accesses the public markets.

Primary Credit Analyst: Juliana Gallo, Sao Paulo (55) 11-5501-
8948; juliana_gallo@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-
5501-8945; milena_zaniboni@standardandpoors.com


PARMALAT BRASIL: Laticinios Plans Industria de Alimentos Buy
------------------------------------------------------------
Parana-based dairy producer Laticinios Canaa is looking to buy
Parmalat Brasil SA Industria de Alimentos, the former unit of
bankrupt Italian food group Parmalat Finanziaria SpA. Just-
food.com reports that the deal is expected to be concluded in
the next six months. The plant's price is BRL6.0 million (US$2.5
million), while its net assets are estimated at BRL2.0 million.

After seven years of operating the plant, Parmalat sold it to
the food producer Alimentos Rio Grande. In 2002, the plant
stopped operations due to liabilities inherited by Parmalat
Brasil.


TCP: Releases Results of Bovespa Auction Held on June 17
--------------------------------------------------------
Tele Centro Oeste Celular Participacoes S.A. ("Company"),
(BOVESPA: TCOC3 (Common), TCOC4 (Preferred), NYSE: TRO),
announces today the total number of common and preferred shares
sold at the seventh auction held on 06/17/2005 at the Sao Paulo
Stock Exchange, and the respective per shares prices to be
credited to the shareholders pro rata to the fractional shares
held by them before the auction;

                   Auction held on 06/17/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON      881,200            19,700           0.40885

                   Auction held on 06/15/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON      896,300            15,100           0.31338

                   Auction held on 06/08/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON      924,200            27,900           0.57903

                   Auction held on 06/03/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON      974,200            50,000           1.15349

                   Auction held on 05/31/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON      996,200            22,000           0.56393

                    Auction held on 05/25/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON    1,009,000            12,800           0.38321

                    Auction held on 05/20/2005
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON    1,009,000               0                 0

TCOC4  PN      942,708           942,708          24.31592

                             Total
Code  Type  Number of Shares  Number of Shares   Net Value per
               Offered             Sold            Share (1)
TCOC3  ON    1,009,000           147,500            3.40189

TCOC4  PN      942,708           942,708           24.31592

(1) Value net of trading expenses

The 861,500 common shares not sold at the auction held on
06/17/05 shall be offered at another auction, to be held on
06/22/2005, for the reference price of R$ 20.97 per common
share, which is the same price of the session held on June 6, 15
and 17 of 2005, the result thereof should be consequently
disclosed by the Company.

Having in consideration that not all the shares offered at the
auction above were sold, the proceeds from the sale of the
common and preferred shares traded at the referred auction will
only be made available to the holders of fractional shares after
the sale of the totality of the Company's shares that remained
unsold after such auction, as follows:

(a) The Shareholders whose shares are in custody with Banco ABN
Amro Real S.A. shall appear to any branch of said institution in
order to receive the amounts to which they are entitled;

(b) The amount corresponding to the Shareholders having entered
custody agreements with the CBLC - Brazilian Settlement and
Custody Company, shall be directly credited to that company,
which will transfer the respective amounts to the Shareholders
through the Custody Agents; and

(c) For those Shareholders whose Shares are blocked or without
updated record, the amount to which they are entitled shall be
retained by the Company and made available to the respective
Shareholder for payment, which shall be released exclusively
against presentation of document evidencing unblocking of the
shares and/or identification, as the case may be, at any ABN
Amro Real S.A. branch, the institution acting as trustee of the
book-entry shares issued by the Company.

CONTACT:  Tele Centro Oeste Celular Participacoes S.A.
          Arcadio Luis Martinez Garcia
          Executive VP for Finance, Planning and Control
                  and Investor Relations Officer

          Charles Edwards Allen
          Investor Relations Office
          Tel: 55 11 5105-1172
          Email: ir@vivo.com.br
          URL: http://www.vivo.com.br


USIMINAS: Ratings Reflect Exposure to Volatile Steel Sector
-----------------------------------------------------------
Rationale

The local-currency corporate credit rating on Brazil's largest
flat-steel maker Usinas Sider£rgicas de Minas Gerais S.A.
(Usiminas) reflects its exposure to the cyclical and volatile
global steel sector; some reliance on the equally volatile
economic and operating environment of its home market Brazil;
and increasing competition within the Brazilian steel industry.
These risks are tempered by Usiminas' solid financial profile,
with total debt levels and liquidity currently at very
conservative levels; a sound business profile, made evident by a
very competitive cost structure; resilient operating
profitability and robust free cash generation through economic
cycles; and a very favorable market position in the fairly
concentrated flat carbon steel sector in Brazil, in particular
in the higher-end, quality-products segments.

The ratings on Usiminas reflect the consolidated credit quality
of the so-called "Usiminas System," consisting of the combined
operating and financial profiles of Usiminas and its wholly
owned (since May 2005) subsidiary Companhia Sider£rgica Paulista
- Cosipa, and their respective subsidiaries altogether. The
Usiminas System comprises the largest flat-steel production
complex in Latin America, with a consolidated capacity for 9.5
million metric tons per year of crude steel and operations in
the states of Minas Gerais (Ipatinga) and Sao Paulo (Cubatao,
under Cosipa). Usiminas' consolidated revenues and EBITDA
amounted to $1.30 billion and $638 million, respectively, in
first-quarter 2005, equivalent to 1.77 million tons shipped.
About 22% of its consolidated shipments in the period were
destined to export markets (averaging, however, 29% in the past
two years).

Usiminas' business fundamentals are quite positive, and we
expect them to be sustainable in the future. However, they are
also tempered by a relevant exposure to the Brazilian economy,
as about 75% of production, on average, is destined to domestic
clients. Usiminas can produce a wide range of flat carbon steel
products at its two plants in Brazil (slabs, heavy plates, hot-
rolled, cold-rolled, and galvanized steel coils) with the
Ipatinga plant focusing on higher-end products (aimed at
demanding domestic clients, in particular, auto makers) and the
Cubatao plant producing more commodity-type products. Favorable
logistics trimming freight costs down is an important
competitive edge, which combined with modern facilities, low
legacy costs, and streamlined operations result in a favorable
cost position, considerably stronger than those of its peers in
Europe and the U.S. Standard & Poor's Ratings Services believes
that this cost-competitive edge is sustainable in the future
despite some coal and iron ore cost increases affecting 2005 and
part of 2006, as those are hitting steel makers around the world
in a reasonably uniform way (structurally moving the global
industry's cost curve up). Additionally, Usiminas has already
reformatted its coal consumption mix in order to minimize the
actual cost impact of this raw material. In the international
comparison, we believe that higher iron ore and coal prices
actually widen the lag between low-cost producers such as
Usiminas and the industry's average, leaving the company in a
more favorable competitive position to face a sector slowdown or
a decline in steel prices anytime in the future. Because of
that, we believe that Usiminas will likely manage to report cash
flows stronger than in the previous 2001-2002 trough (apart from
the benefits of a stronger balance sheet, as commented below).
Investments in a new coke plant, already under way, will make
the company fully self-sufficient in coke in 2006, which further
reduces cost volatility in the long run and also bodes well for
its cost position.

While we are starting to see some market weakening, indicating
that the steel bonanza may be reaching an end, we continue to
envision fair to positive industry prospects in the medium term,
with steel prices remaining substantially higher than in the
previous trough for the next several quarters. In the domestic
front, market conditions have become stiffer due to high
domestic interest rates (with April as a particularly difficult
month), but we still expect reasonable growth for the whole
year. In a broader sense, however, we see Usiminas' credit
profile improvement more bolstered by an overall financial
strengthening coupled with strong competitive fundamentals
rather than exclusively or highly dependent on market
conditions.

Usiminas' financial profile kept improving in first-quarter
2005, boosted by strong results in semi-finished products and
export markets. Cash generation remains very strong, but the
most notable financial profile improvement is debt-related, with
a substantial decline in total gross debt levels, directly
reflecting its prudent financial stance, which we regard as the
most conservative among our rated Brazilian steel companies. As
a result, not only have debt maturities been brought to a level
that is comfortably compatible with the company's cash
generation (even if taken in a more "normalized" view, that is
to say, assuming a through-the-cycle, lower EBITDA per ton), but
interest cash expenses also continue to plummet, producing a
positive trend for the next several quarters and leaving room
for EBITDA interest coverage to remain quite robust even in a
potential downturn. The strong pickup in EBITDA margin to 50% in
March 2005 is still due to extraordinary profitability at Cosipa
(which currently is producing cash flow as strong as that of
Usiminas), which we believe will soften under less favorable
market conditions ahead. Still, Usiminas should be able to
report consolidated EBITDA margins in the comfortable mid-30s
through the cycle.

Current credit measure ratios are to be cautiously interpreted
as outstandingly high due to the favorable moment in the steel
cycle, with total debt-to-EBITDA, EBITDA-to-interest, and funds
from operations-to-total debt ratios at 0.97x, 9.0x, and 77%,
respectively (compared with 1.3x, 7.2x, and 58.6% in December
2004 and 2.75x, 3.97x, and 28.1% in March 2004). These ratios
are taken on a last-12-month basis for the interim results, with
total debt adjusted for pension liabilities of about Brazilian
real (BrR) 1.3 billion ($518 million converted by the exchange
rate of March 31, 2005). Even so, we forecast credit measures to
resiliently remain at solid levels due to perennial capital
structure improvements undertaken in 2004 and to be further
expanded in 2005; in particular, we still expect some debt
reduction in the quarters ahead. That, coupled with strong free
operating cash flow (FOCF) expected to remain robust in 2005 and
2006, opens room for the company to absorb both demand slowdowns
in Brazil and globally and still perform incremental investments
to expand capacity and improve efficiency without jeopardizing
its credit profile.

Liquidity

Usiminas' liquidity is sound. The company reported cash reserves
of $875 million as of March 31, 2005, $405 million in excess of
short-term debt maturities of $469 million through the next 12
months (including accrued interest). Debt concentration is now
represented by only two bonds (one of $75 million coming due in
November 2006 and its $175 million notes due 2009), with the
rest of the debt consisting essentially of pre-export financing
and BNDES loans. Capital expenditures should go up this year
with the new projects being implemented, but Usiminas is still
expected to report FOCF of some $200 million, which coupled with
only modest new long-term financing (used to adequately fund
capital expenditures) should still allow for some net debt
reduction by year-end 2005. Usiminas' debt maturities in 2006
amount to approximately $500 million.

Apart from some already announced improvement expenditures at
both Ipatinga and Cubatao (a power plant and a new coke plant at
Ipatinga that will make the company self-sufficient in coke, and
a new continuous caster at Cosipa), which should represent some
$300 million invested in 2005 through 2007, Usiminas is
currently studying the possibility of expanding the capacity of
its Ipatinga plant by 2 million tpy, a project that could
represent a cash outlay of some $800 million in three years.
While we have not fully incorporated the impact of this project
in our rating assumptions, we believe that, if approved by the
company's board of directors within the next couple of quarters,
Usiminas will manage to find adequate long-term funding to
finance it without affecting liquidity, which comes on top of
internal cash sources that are expected to remain fairly strong
in the medium term.

Outlook

The positive outlook on the local-currency corporate credit
rating reflects the potential for a rating increase if some
current uncertainties are solved in the medium term. We believe
that Usiminas' ratings could be raised if the company continues
to report strong profitability in the next couple of quarters,
confirming its ability to absorb cost effects (which will
gradually enter into the company's cost matrix within the next
several quarters), either through price increases or by
administering the mix of raw materials purchased. We also see
the company's definition about its expansion project at Ipatinga
as a key medium- to long-term credit development because, if
approved by the company's board of directors, it will demand
adequate financing in cost and particularly in tenor that has
not been secured yet. Although we believe that current rich cash
flow streams and low indebtedness give room for the company to
comfortably absorb the required debt to finance the expansion,
conditions for such expansion are still to be fully incorporated
into the rating analysis. While we already believe Usiminas is
well positioned to manage Brazil's country risks, a potential
upgrade would also depend on a scrutinized analysis of the
company's exposure and vulnerabilities to such risks in a stress
scenario.

Our ratings and outlook are supported by two main medium-term
assumptions: first, that current market conditions leave low-
cost steel makers such as Usiminas in a privileged position to
weather even reasonably stressful pricing environments should
the global economy decelerate; and second, that the company's
improved balance sheet (reflected especially in low debt
maturity concentration for the next several years) will prevail,
allowing it to manage any decline in cash flows due to either a
domestic slowdown or a decline in global steel prices
(compressing current robust cash flows). Material changes in
these two main assumptions could predicate an outlook revision
to stable or a negative action on the ratings.

The stable outlook on the foreign-currency corporate credit
rating reflects the outlook on the foreign-currency sovereign
rating on the Federative Republic of Brazil.

Primary Credit Analyst: Reginaldo Takara, Sao Paulo (55) 11-
5501-8932; reginaldo_takara@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-
5501-8945; milena_zaniboni@standardandpoors.com


VARIG S.A.: Obtains Initial NBRL Stay Order
-------------------------------------------
Judge Alexander dos Santos Macedo of the Commercial Bankruptcy
and Reorganization Court in Rio de Janeiro, Brazil, issued, on
June 17, 2005, an interim order pursuant to the New Bankruptcy
and Reorganization Law of Brazil that prohibits VARIG's 29
Aircraft Lessors from seizing, repossessing or otherwise
interfering with VARIG, S.A., and its affiliates' leased
aircraft.

A copy of the Brazilian Court's Interim Order dated June 17,
2005, is available at no charge at:

          http://bankrupt.com/misc/VARIGInterimOrder.pdf

The leases are important to the Debtors' continued operations.
"The seizure of aircraft would cause inestimable loss to the
[Debtors]," Sergio Bermudes, Esq., at Escritorio de Advocacia
Sergio Bermudes, in Rio de Janeiro, Brazil, told the Court.

The Debtors have also requested judicial reorganization, which
includes a stay or injunction for 180 days prohibiting actions
by creditors to enforce rights and remedies on account of their
claims.  The Brazilian Court has yet to rule on the request.

Vicente Cervo, the foreign representative appointed in Varig,
S.A., and its debtor-affiliates' Brazilian bankruptcy
proceedings, filed a Sec. 304 petition on June 17, 2005 (Bankr.
S.D.N.Y. Case Nos. 05-14400 and 05-14402).  Rick B. Antonoff,
Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr.
Cervo in the United States and Sergio Bermudes, Esq., in Brazil.
As of March 31, 2005, the Debtors reported BRL2,979,309,000 in
total assets and BRL9,474,930,000 in total debts. (Varig
Bankruptcy News, Issue No. 01; Bankruptcy Creditors' Service,
Inc., 215/945-7000)

Restructuring Database:

NBRL Debtors:      VARIG, S.A. (Viacao Aerea Rio-Grandense)
                   Rio Sul Linhas Aerea S.A.
                   Nordeste Linhas Aereas S.A.

NBRL
Petition Date:     June 17, 2005

Brazilian Court:   Commercial Bankruptcy and Reorganization
Court
                   Rio de Janeiro, Brazil

Brazilian Judge:   The Honorable Alexander dos Santos Macedo

U.S. Bankruptcy
Court:             United States Bankruptcy Court
                   Southern District of New York
                   Alexander Hamilton Custom House
                   One Bowling Green, 5th Floor
                   New York, New York 10004-1408
                   Telephone (212) 668-2870

Petitioner's
Sec. 304 Petition
Date:              June 17, 2005

U.S. Sec. 304
Proceeding
Case No.:          05-14400, Jointly Administered

U.S. Judge:        The Honorable Robert D. Drain

Sec. 304
Petitioner:        Vicente Cervo
                   General Manager, North America of VARIG,
S.A.,
                   In his capacity as Foreign Representative

Debtors' Counsel
in Brazil:         Sergio Bermudes, Esq.
                   Escritorio de Advocacia Sergio Bermudes
                   Rio de Janeiro, Brazil

Petitioner's
U.S. Counsel:      Rick B. Antonoff, Esq.
                   Pillsbury Winthrop Shaw Pittman LLP
                   1540 Broadway
                   New York, New York 10036
                   Tel: (212) 858-1000
                   Fax: (212) 858-1500

(VARIG BANKRUPTCY NEWS, Issue No. 1, Bankruptcy Creditors'
Service, Inc. 215-945-7000)



===================================
D O M I N I C A N   R E P U B L I C
===================================

REPUBLIC BANK (DR): Parent Announces Name Change
------------------------------------------------
The Republic Bank Ltd. of Trinidad and Tobago has changed the
corporate identity of its Dominican Republic subsidiary from
Banco Mercantil to Republic Bank (DR) SA, The Trinidad Guardian
reports. The change of name comes 17 months after Republic Bank
acquired 100% shareholding of the sixth largest bank in the
Dominican Republic. Republic Bank (DR) SA will bear the
identical Republic Bank corporate identity as its parent
company.

Republic Bank's managing director, David Dulal-Whiteway, said
that the rebranding was reflective of the bank's vision to be
the financial institution of choice in the Caribbean and that it
placed both institutions in a stronger position to face the
challenges of globalization.

Republic Bank (DR) SA is one of Republic Bank's eight overseas
subsidiaries. It is also the first institution in a Spanish-
speaking territory to be acquired by a Trinidadian bank.

In April, Fitch Ratings affirmed Banco Mercantil's `CCC' ong-
term foreign currency rating and the `C' song-term foreign
currency rating. At the time, Fitch said that the bank's
financial profile, while still relatively weak, has improved
considerably in the past few months, which places it in a better
position to benefit from the economic recovery in the Dominican
Republic.


TRICOM: Carlson Resigns as CEO, Board Names Noboa Succeessor
------------------------------------------------------------
Tricom, S.A. (OTC Bulletin Board: TRICY.PK - News) announced
Friday that Carl Carlson has left as Chief Executive Officer
(CEO) and President of the Company, effective immediately. The
Company's Board of Directors has selected Hector Castro Noboa,
Secretary and Vice-Chairman of the Board of Directors, to
succeed Mr. Carlson as CEO. Mr. Carlson will continue to work
with the Company in a consulting role.

Hector Castro Noboa, 64, a member of Tricom's Board of Directors
since the Company's formation in 1988, will remain on the board.
Mr. Castro has been Vice-Chairman and Executive Vice President
in a number of companies affiliated with GFN Corporation, the
Company's majority shareholder. Mr. Castro has also held
positions in a number of financial institutions, including
Deutsche Sudamerikanische Bank, Citibank, and Banco
Metropolitano. Mr. Castro, a former professor of international
economics and macroeconomics at Universidad Nacional Pedro
Henriquez Urena, has a degree in Business Economics from
Madrid's Universidad Complutense.

About TRICOM

Tricom, S.A. is a full service communications services provider
in the Dominican Republic. The Company offer local, long
distance, mobile, cable television and broadband data
transmission and Internet services. Through Tricom USA, the
Company is one of the few Latin American based long distance
carriers that is licensed by the U.S. Federal Communications
Commission to own and operate switching facilities in the United
States. Through its subsidiary, TCN Dominicana, S.A., the
Company is the largest cable television operator in the
Dominican Republic based on its number of subscribers and homes
passed. For more information about Tricom, please visit
http://www.tricom.net

CONTACT: Miguel Guerrero, Investor Relations
         Phone: (809) 476-4044 / 4012
         E-mail: investor.relations@tricom.net



=============
J A M A I C A
=============

DYOLL GROUP: Liquidator to Meet With Contributors, Creditors
------------------------------------------------------------
Court appointed provisional liquidator Keith Hartley Cooper is
calling contributors and creditors of Dyoll Group to a meeting
to discuss the winding up of the insurance company, The Jamaica
Observer reports.

Mr. Cooper will meet with the Company's contributors on July 4,
1:00 pm at the Jamaica Conference Centre in Kingston. Proxies to
be used at the said meeting "must" be lodged with Cooper at the
office of Trustee in Bankruptcy at Grenada Crescent, New
Kingston, no later than July 1, at noon, according to Mr.
Cooper's notice.

Mr. Cooper's meeting with creditors is scheduled for July 4,
2:00pm, same venue as the meeting with contributors. For
creditors to vote at the meeting, they must lodge proof of
entitlement with Cooper by June 30 at noon; and their proxies
must be lodged the next day.

Such proof includes names and addresses, particulars of debts or
claims, and, where applicable, names of their attorneys.

The meetings will consider, by resolution, whether to petition
the court to appoint a liquidator to replace the Trustee in
Bankruptcy for the winding up, and to appoint a 'Committee of
Inspection' to act alongside the liquidator.

The Supreme Court ordered to wind up Dyoll at the behest of the
Financial Services Commission.



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

METALFORMING TECHNOLOGIES: Files For Chapter 11 in Delaware
-----------------------------------------------------------
Metalforming Technologies, Inc. (MTI) announced Thursday that it
and its seven wholly owned subsidiaries have filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the District of Delaware. The subsidiaries include
Crescive Die & Tool Inc., MTI-Indiana Inc., Flint Manufacturing
Co., Johnson Stamping Inc., Metalform Industries Inc., MTI
Holding Corp., Northern Tube Inc. and Metalforming Technologies
De Mexico, S De R.L. De C.V.

As part of the Company's Chapter 11 filing, two of its major
lenders, Patriarch Partners and Canadian Imperial Bank of Canada
(CIBC), have agreed to provide up to $12 million debtor-in-
possession (DIP) financing. The financing will be used to fund
the Company's operations in the ordinary course during Chapter
11.

The Company is confident that with the financing provided by
Patriarch Partners and CIBC, coupled with the fact that it has a
received a firm offer to be acquired by Patriarch Partners will
stabilize the Company's business operations.

Joseph Ponteri, the President and Chief Executive Officer of
Metalforming Technologies, Inc., stated:

"The precipitous rise in steel prices in 2004 and their
continued high prices though the first half of 2005 put a
squeeze on our liquidity. Our inability to pass on these price
increases and the depressed demand for product in the first half
of 2005 impacted our profitability.

During this time, we look forward to receiving the continued
support of our vendors, suppliers, carriers, customers, and the
dedication of our employees. We are confident that this
restructuring will serve the interests of our employees,
creditors and customers by making the Company healthier
overall."

Metalforming will be represented in its bankruptcy by Young,
Conaway, Stargatt & Taylor. The case number is 05-11697. Judge
Peter J. Walsh has been assigned the case.

Metalforming Technologies, Inc. is a US$185 million supplier of
tubular systems, metal components and assemblies.

CONTACT:  METALFORMING TECHNOLOGIES, INC.
          980 North Michigan Avenue
          Suite 1000
          Chicago, Illinois 60611


SATMEX: Rules Out Plan to File for Bankruptcy in Mexico
-------------------------------------------------------
Mexican satellite company Satelites Mexicanos SA (Satmex) has no
plans of seeking bankruptcy proceedings in Mexico in the near
term, Dow Jones Newswires reports, citing Satmex Chairman and
Chief Executive Sergio Autrey.

By filing for bankruptcy in Mexico, Satmex would have to respond
immediately to an involuntary bankruptcy petition filed last
month in the U.S. Bankruptcy Court for the Southern District of
New York by creditors holding at least $379 million in SatMex
notes.

The U.S. bondholders aren't the only ones seeking to recover
debts from Satmex.

SatMex missed a US$188 million payment to the government in
December, a debt that stemmed from the 1997 privatization of the
satellite operator. That debt is at the holding company level,
backed by equity, and subordinate to the notes subject to the
restructuring, creditors contend in documents filed with the
U.S. court.

Deputy Minister for Communications Jorge Alvarez Hoth said the
government has a three-pronged consideration regarding SatMex.

"First the government has to act as regulator, guaranteeing
coverage for users, then as a shareholder it needs to look after
the state's assets, and as a creditor it has to make sure it
gets paid," he was quoted as saying.

Satmex has been in default since 2003, now on a total of US$523
million within a debt load that reportedly totaled US$800
million in December 2004.

The Company is jointly owned by Loral Space & Communications
Ltd. (LRLSQ) of the U.S. and Mexican company Principia SA, run
by Autrey. The Mexican state owns 23.6% of the Company.



===========
P A N A M A
===========

WILLBROS GROUP: Placed on Default Notice by Noteholder
------------------------------------------------------
On March 31, 2005, Willbros Group, Inc. (the "Company") issued a
press release announcing that it would delay the filing of its
Annual Report on Form 10-K for the year ended December 31, 2004,
due to the continuation of an independent investigation relating
to its international operations.

Pursuant to the Indenture dated as of March 12, 2004 (the
"Indenture"), between the Company, as issuer, and JPMorgan Chase
Bank, as trustee with respect to the Company's $70.0 million of
2.75% Convertible Senior Notes due 2024 (the "Notes"), the
Company is required to provide the trustee with copies of all
annual and quarterly reports which it is required to file with
the SEC pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, within 15 calendar days after
it files such annual and quarterly reports. The Indenture
provides that a failure by the Company to comply with this
requirement is not an "event of default" until either (i) the
trustee notifies the Company or (ii) the holders of at least 25%
in aggregate principal amount of the Notes outstanding notify
both the Company and the trustee, in each case by certified
mail, of the failure to perform, and the Company does not
observe or perform the covenant for a period of 60 days after
written notice of such failure is given in accordance with the
Indenture. If an event of default were to occur, the trustee or
the holders of at least 25% in aggregate principal amount of the
Notes then outstanding could declare all unpaid principal and
accrued interest on the Notes then outstanding to be immediately
due and payable. Moreover, any failure by the Company to perform
or observe any covenant under the Indenture which would entitle
the noteholders or the trustee to accelerate the Notes, would
also constitute an event of default under the Company's senior
credit facility.

The Company has received a letter dated June 10, 2005, from a
law firm representing Whitebox Advisor, Inc., which claims to be
the holder of $17,595,000, or approximately 25.1% of the Notes.
In this letter, Whitebox Advisor, Inc. asserts that, as a result
of the Company's failure to timely file with the SEC its 2004
Form 10-K and its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2005, it is placing the Company on notice of an
event of default.

The Company does not believe that it has failed to perform its
obligations under the Indenture. As discussed above, the
Indenture provision referenced in the letter specifically
requires that the Company ensure delivery of copies of its
annual and quarterly reports to the trustee within 15 calendar
days after they are filed with the SEC. The Indenture provision
does not require the Company to file those reports within the
deadlines set forth in the SEC's rules and regulations. The
Company will furnish to the trustee copies of its 2004 Annual
Report on Form 10-K and its Quarterly Report on Form 10-Q for
the quarter ended March 31, 2005, within 15 days after it files
such reports with the SEC. The Company believes that such action
will comply fully with the Indenture.

CONTACT: WILLBROS GROUP, INC.
         Dresdner Bank Bldg.
         50th Street, 8th Floor
         P.O. Box 850048
         Panama 5, Panama
         Phone: (50-7) 263-9282

         OFFICERS: Larry J. Bump, CEO
                   Gary L. Bracken, Pres. & COO
                   Melvin F. Spreitzer, CFO
                   John N. Hove, Sec't.



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

GALICIA URUGUAY: Completes Exchange Offer
-----------------------------------------
Banco Galicia Uruguay, a unit of Argentina's Banco de Galicia y
Buenos Aires, has concluded an exchange offer, accepting US$242
million in old bonds and certificates of deposit, reports Dow
Jones Newswires. The US$242 million represents all of the
securities tendered by holders of the Uruguayan bank's bonds and
certificates of deposit.

Galicia Uruguay launched the exchange on April 15, offering
US$14 in cash and US$86 in Argentine government Boden 2012 bonds
for every US$100 in the bank's bonds or certificates of deposit.
The bank had said it would swap up to US$200 million in old
securities, though it was free to raise that amount.

Uruguay's central bank closed Banco Galicia Uruguay in February
2002 as Argentina's financial crisis spilled over into the
neighboring country. At that time, about US$1.2 billion in
deposits were frozen.

Banco Galicia is the main banking unit of Argentine financial
company Grupo Financiero Galicia (GGAL). The local bank
completed its own $1.3 billion debt restructuring one year ago.

CONTACT:  Banco de Galicia Y Buenos Aires
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman

          Grupo Financiero Galicia SA
          2nd Floor
          No 456 Tte Gral Juan D Peron
          Buenos Aires
          Argentina 1038
          Phone: +54 11 4343 7528/9475
          Home Page: http://www.gfgsa.com
          Contact: Atty. Abel Ayerza, Chairman



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

CANTV: Moves to Expand Mobile Unit's Network
--------------------------------------------
In an effort to keep up with stiff competition from Movistar,
telco Cantv (NYSE: VNT) will extend this year the network of its
mobile operator Movilnet, reports Business News Americas. Cantv
President Gustavo Roosen said the Company will invest US$450
million in the project.

"Our goal is for us to have by August, the largest coverage and
best quality signal in the country," Mr. Roosen said.

Mr.Roosen expects the Company to see growth levels of 12% in
2005.

CONTACT: Cantv Investor Relations
         Phone: +011 58 212 500-1831 (Master)
                +011 58 212 500-1828 (Fax)
         E-mail: invest@Cantv.com.ve

         The Global Consulting Group
         Ms. Lauren Puffer
         Phone: 646 284-9426 (US)
         E-mail: lpuffer@hfgcg.com



                            ***********


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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Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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