TCRLA_Public/050622.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, June 22, 2005, Vol. 6, Issue 122

                            Headlines

A R G E N T I N A

ACEROS ZAPLA: Govt. Proposes Transfer of 10% Stake to Workers
AGUAS PROVINCIALES: SUEZ Confirms Sale of Stake to 2 Local Firms
DELTAGRO S.A.: Trustee to Submit Individual Reports
DUQUE CUYO: Verification Ends, Trustee to Prepare Reports
FM SEGURIDAD: Creditor Claims Report Due For Submission

KEY ENERGY: Provides May Rig Hours, Select Financial Data
MEGAMARKETING S.A.: Authentication of Claims Ends
METROGAS: Extends Solicitation of Consents
TENPLUS S.A.: Verification Ends


B E R M U D A

F3 DIVERSIFIED: Member Resolves to Wind-Up
GLOBAL CROSSING: Grant of RSU, Performance Shares Approved
MED NET: Appoints Michael Smith as Liquidator
SHADWELL MASTER: To Be Wound Up Voluntarily
SPEEDY-TECH: Appoints Hoe Boon Kwee as Liquidator


B R A Z I L

CFLCL: Gets Regulatory Clearance to Up Units' Average Rates
COPEL: Bylaws Ammended, PNA Shares Converted to PNB
GLOBOPAR: Moves to Dismiss Involuntary Petition
PRIDE INTERNATIONAL: Ratings Reflect Lagging Credit Measures
VARIG: Section 304 Petition Summary Filed

VARIG: Boeing, ILFC Oppose TRO
VARIG: Alliance Talks With TAP Air Come to a Halt


C O L O M B I A

ECOPETROL: On the Lookout for Partner in Heavy Crude Project


E C U A D O R

* ECUADOR: S&P Cuts Long-Term Rating To 'CCC+' From 'B-'


P A N A M A

* PANAMA: Ratings, Stable Outlook Reflect Debt Burden - Moodys


V E N E Z U E L A

PDVSA: To Sell 30,000b/d of Fuel Oil to Petrochina
PDVSA: National Assembly to Discuss Reform Bill

     -  -  -  -  -  -  -  -

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

ACEROS ZAPLA: Govt. Proposes Transfer of 10% Stake to Workers
-------------------------------------------------------------
Aceros Zapla workers will have a 10% stake in the steel products
maker if Congress approves a bill submitted by the government,
reports Business News Americas.

An unnamed Zapla official revealed that the government proposed
the share transfer to instigate the unfulfilled shared property
program for Zapla workers established during the Company's
privatization.

Zapla workers recently ended a strike following intervention
from government officials. Though the share transfer was not
part of worker complaints during the strike, the issue came up
and was agreed upon during strike negotiations.

A salary hike of ARS270 (US$94) was also agreed upon, although
it was ARS300 below what workers were demanding.

Aceros Zapla in the town of Palpala in Jujuy province produces
hot-rolled long steel, primarily for the oil and automobile
industries, plus machinery and equipment manufacturers.


AGUAS PROVINCIALES: SUEZ Confirms Sale of Stake to 2 Local Firms
----------------------------------------------------------------
French water and energy conglomerate Suez (SZE) confirmed Monday
that it has entered an exclusive pact with Argentine companies
Fides Group and Grupo Energia BV on the sale of its entire stake
in an Argentine water unit.

Suez is selling its interest in Aguas Provinciales de Santa Fe,
a water company serving 1.8 million customers in the Santa Fe
province, for an undisclosed amount. The transaction is expected
to be completed before July 31.

Suez announced its exit in May after talks with local
authorities over a tariff hike failed.

The French company also runs Aguas Cordobesas in Cordoba
province and Buenos Aires-based Aguas Argentinas, its main
holding.


DELTAGRO S.A.: Trustee to Submit Individual Reports
---------------------------------------------------
Court-appointed trustee Martha Magdalena Comba will present to
the court the validated claims of the creditors of Deltagro S.A.
as individual reports tomorrow, June 23, 2005.

Ms. Comba was appointed by Court No. 7 of Buenos Aires' civil
and commercial tribunal to supervise the Company's
reorganization.

After the individual reports, the trustee will also submit a
general report of the case on Aug. 18, 2005.

The city's Clerk No. 14 assists the court with the proceedings.

CONTACT: Ms. Martha Magdalena Comba, Trustee
         Hipolito Yrigoyen 1349
         Buenos Aires


DUQUE CUYO: Verification Ends, Trustee to Prepare Reports
---------------------------------------------------------
The verification of the proofs of claim in the bankruptcy
process of Duque Cuyo S.A. will end tomorrow, June 23, 2005.

Court-appointed trustee Guillermo Alejandro Torres is tasked to
review the claims forwarded by the Company's creditors until the
said date. He will submit the individual reports based on those
claims for court approval on Aug. 22, 2005. He will also submit
a general report on Oct. 3, 2005.

Buenos Aires' civil and commercial Court No. 5, with the
assistance of Clerk No. 9 declared Duque Cuyo S.A. bankrupt
after the Company failed to pay its creditors.

CONTACT: Mr. Guillermo Alejandro Torres, Trustee
         Avda Corrientes 922
         Buenos Aires


FM SEGURIDAD: Creditor Claims Report Due For Submission
-------------------------------------------------------
Individual reports from claims forwarded by creditors of FM
Seguridad S.A. are due for court submission on June 23, 2005.

FM Seguridad is undergoing liquidation under the supervision of
Mr. Manuel Alberto Cibeira, court-appointed trustee. On March 1,
2006, the Company's creditors will vote on the settlement
proposal prepared by the Company.

Infobae reports that Court No. 16 of Buenos Aires' civil and
commercial tribunal is handling the Company's reorganization.
Clerk No. 31 assists the court in the proceedings.

CONTACT: Mr. Manuel Alberto Cibeira, Trustee
         Avda Cordoba 1247
         Buenos Aires


KEY ENERGY: Provides May Rig Hours, Select Financial Data
---------------------------------------------------------
Key Energy Services, Inc. (Pink Sheets: KEGS) announced Monday
rig hours for the month of May 2005. The Company also announced
select financial data for the month ended April 30, 2005. The
Company is providing this information to investors as part of
the consent from the holders of the Company's 6-3/8% senior
notes due 2013 and its 8-3/8% senior notes due 2008.

ACTIVITY UPDATE

The Company announced that it will supply ten well service rigs
for a major oil and natural gas producer and will enter into a
one-year contract to provide well service rig-related services
for this customer in California. Six of these rigs will be
remanufactured and are incremental capacity additions. The one-
year term commences upon delivery of the 10th rig which is
expected in August.

The Company has also entered an additional agreement with IROC
Systems Corp. ("IROC") whereby it will remanufacture and supply
select component parts valued at approximately $917,000. The
equipment includes refurbished Skytop 42-10 drawworks and power
transmission units that will form the basis for six (6) new
service rigs to be constructed by IROC. The company anticipates
that the components will be shipped to Canada over the next few
months. As part of the transaction, Key will receive
approximately 547,411 shares of IROC common stock at a price of
$2.09 Canadian, increasing its holdings to approximately 8.7
million shares upon receipt of the shares.

In other international markets, the Company will be expanding
its Argentina operation as it was recently awarded a multi-well
drilling project for one customer and a multi-well package for a
well service rig for another customer. As part of the
agreements, the Company will remanufacture and ship two idle
rigs to Argentina this summer. In Egypt, the Company is in the
process of shipping two rigs back to the United States and
anticipates that the remaining three rigs will be shipped this
summer. At this time, the Company does not anticipate an
additional extension of its contract by its customer in Egypt.
In connection with the termination of the Egypt contract, the
Company anticipates it will incur shut-down and severance costs
of approximately $1.0 million in the September 2005 quarter
while costs associated with shipping the rigs back to the United
States are expected be paid by the customer under terms of the
agreement. During the month of May, the Egypt operations
contributed approximately 2,092 rig hours and 3,137 truck hours.

The Company's well service activity remains strong as rig hours
for the month of May totaled over 218,000. Further, many of the
Company's regional pricing initiatives have been implemented in
recent months and select new regional initiatives for the
Company's well service rigs are expected to be implemented this
summer. The price increases differ by region and by customer and
the percentage increases generally range from the high-single to
low-double digits. Additionally, the Company's pressure pumping
operation increased its price book by approximately 14%
effective June 1, 2005 and anticipates that the increase will
apply to most customers by the end of July.

The Company continues to invest in its technology initiatives
and as of May 31, 2005, the Company has approximately 143 active
KeyView system units on its well service rigs. The Company
anticipates installing an additional 50 active units by the end
of the year.


ACTIVITY LEVELS

                                   Month Ending
                       5/31/2005       4/30/2005     5/31/2004
    Working Days          21              21            20
    Rig Hours           218,774         216,004       195,974
    Trucking Hours      214,373         214,047       236,864

The Company calculates working days as total weekdays for the
month less any company holidays that fall in that month. For the
month of June 2005, there are 22 working days.

Commenting on activity levels, Dick Alario, Chairman and CEO
stated, "Activity levels remain strong in all regions. We are
now actively seeking and capturing incremental growth
opportunities as evidenced by our contract in California. There
are additional near-term opportunities which we are exploring
and will announce those should they come to fruition."

Mr. Alario concluded, "We continue to make progress with our
international initiatives and are excited to expand our
relationship with our Canadian partner. Further, we continue to
diligently pursue opportunities in Mexico and hope to announce
further details of these discussions in the coming months."

BALANCE SHEET UPDATE

On June 9, 2005, the Company repaid $23 million of the $48
million outstanding under its revolving credit facility and on
June 1, 2005, the Company paid approximately $7.7 million to one
of its equipment lessors, representing the balance owing on a
lease due to the lessor's electing not to provide an additional
waiver of information reporting defaults. As of June 17, 2005,
the Company had cash and short term investments of approximately
$102 million. The Company anticipates it will repay the
remaining $25 million outstanding under its revolving credit
facility on or before June 30, 2005. After giving effect to the
repayment of the $48 million in borrowings, the Company will
have approximately $68 million in availability for borrowing
under the revolving credit facility. The Company's cash position
includes the receipt of approximately $6 million as a result of
the Company's termination of a non-compete agreement made in
connection with an acquisition by the Company in early 2004. The
$6 million fee will be treated as income in the month of June.

SELECT FINANCIAL DATA

Set forth below is certain financial information for the Company
for the month ended April 30, 2005. The information provided has
been prepared by management in accordance with generally
accepted accounting principles but is unaudited and has not been
reviewed by the Company's independent accountants. The table
does not contain all the information or notes that would be
included in the Company's financial statements.

                                                   Month Ended
                                                     4/30/05
                                                 (In thousands -
                                                   Unaudited)
    Select Operating Data:
    Revenues
      Well servicing (1)                             $76,574
      Pressure Pumping                                11,943
      Fishing and Rental Services                      6,340
      Other                                              553
    Total revenues                                   $95,410

    Costs and Expenses
      Well servicing                                 $51,976
      Pressure Pumping                                 7,398
      Fishing and Rental Services                      4,593
      General and administrative                      11,858
      Interest (2)                                     5,579

                                                     4/30/05
                                                 (In thousands -
                                                   Unaudited)
    Select Balance Sheet Data:
    Current Assets
      Cash and cash equivalents (3), (4)             $86,993
      Accounts receivable, net of allowance for
       doubtful accounts                             199,019
      Inventories                                     20,696
      Prepaid expenses and other current assets       43,701
    Total current assets                            $350,409

    Current Liabilities
    Accounts payable                                  60,143
    Other accrued liabilities                         72,802
    Accrued interest                                   8,941
    Current portion of long-term debt and capital
     lease obligations                                 3,884
    Total current liabilities                       $145,770

    Long-term debt, less current portion (5)        $473,794
    Capital lease obligations, less current portion    7,768
    Deferred Revenue                                     469
    Non-current accrued expenses                      40,700

NOTES

  (1) The Well Servicing category includes the financial results
of the Company's remaining contract drilling assets which are
located in Argentina, Appalachia and the Powder River Basin of
Wyoming.

  (2) Interest expense includes amortization of deferred debt
issue costs, discount and premium of approximately $165,000 for
the month ended April 30, 2005

    (3) Cash and short term investments at June 17, 2005 totaled
approximately $102 million.

    (4) Capital expenditures were approximately $9,138,000 for
the month ended April 30, 2005

    (5) Outstanding borrowings under the Company's revolving
credit facility at June 17, 2005 totaled $25 million.

The information herein represents the results for only one
month; ordinarily the Company reports financial information on a
quarterly basis, and the information herein is not necessarily
indicative of the results that may be reported for the full
quarter ended June 30, 2005, or the fiscal year ended December
31, 2005. The information herein is selected financial data and
does not represent a complete set of financial statements, which
would include additional financial data and notes to financial
statements. Until the restatement of the Company's prior year
financial statements is completed, the unaudited information
herein may differ from its restated financial statements. It is
possible that the process of restating the prior year financial
statements could require additional changes to the Company's
financial statements for 2005 that individually or in the
aggregate could be material to the Company's financial position,
results of operations or liquidity.

Key Energy Services, Inc. is the world's largest rig-based well
service company. The Company provides oilfield services
including well servicing, contract drilling, pressure pumping,
fishing and rental tools and other oilfield services. The
Company has operations in all major onshore oil and gas
producing regions of the continental United States and
internationally in Argentina and Egypt.


MEGAMARKETING S.A.: Authentication of Claims Ends
-------------------------------------------------
Creditors of Megamarketing S.A. have until tomorrow, June 23,
2005, to have their claims authenticated by Court-appointed
trustee Juan Fontecha.

The authentication is done to determine the nature and amount of
the Company's debts. Creditors must have their claims
authenticated by the said date to qualify for the payments that
will be made after the Company's assets are liquidated.

Buenos Aires' civil and commercial Court No. 12, with the
assistance of Clerk No. 24, declared the Company bankrupt in
favor of the petition filed by Ms. Angelica Zuniga, the
Company's creditor.

The case will close with the sale of the Company's assets.

CONTACT: Megamarketing S.A.
         Avenida Luis Maria Campos 735
         Buenos Aires

         Mr. Juan Fontecha, Trustee
         Parana 785
         Buenos Aires


METROGAS: Extends Solicitation of Consents
------------------------------------------
MetroGAS S.A. (the "Company") announced Sunday that it is
further extending its solicitation (the "APE Solicitation") from
holders of its 9-7/8% Series A Notes due 2003 (the "Series A
Notes"), its 7.375% Series B Notes due 2002 (the "Series B
Notes") and its Floating Rate Series C Notes due 2004 (the
"Series C Notes" and, together with the Series A Notes and the
Series B Notes, the "Existing Notes") and its other unsecured
financial indebtedness (the "Existing Bank Debt" and, together
with the Existing Notes, the "Existing Debt"), subject to
certain eligibility requirements, of powers of attorney
authorizing the execution on behalf of the holders of its
Existing Notes of, and support agreements committing holders of
its Existing Bank Debt to, execute an acuerdo preventivo
extrajudicial (the "APE") until 5:00 p.m., New York City time,
on July 18, 2005 (the "New Expiration Date"), unless further
extended by the Company.

As of 5:00 p.m., New York City time, on May 18, 2005, powers of
attorney and support agreements had been received with respect
to approximately US$77,314,000 principal amount of Existing
Debt.

The APE Solicitation will remain in all respects subject to all
terms and conditions described in the Company's Solicitation
Statement dated November 7, 2003.

The Settlement Agent for the APE Solicitation is JPMorgan Chase
Bank and its telephone and fax numbers are (212) 623-5136 and
(212) 623-6216, respectively.

Any holder wishing to receive a copy of the the Solicitation
Statement and/or ancillary documents should contact J.P. Morgan
Securities Inc. at 1-877-217-2484 in the United States or
JPMorgan Chase Bank Buenos Aires at 54-11-4348-3475/4325-8046 in
Argentina.
For more information please contact:

CONTACT: MetroGAS S.A.
         Pablo Bosellli
         E-mail: pboselli@metrogas.com.ar
         Phone:(54 11) 4309-1511

         Financial Information Advisor
         Lucia Domville
         E-mail: ldomville@nyc.rr.com
         Phone:(917) 375-1984


TENPLUS S.A.: Verification Ends
-------------------------------
The verification deadline of the authenticity of claims
presented by the creditors of bankrupt local company Tenplus
S.A. (formerly Crear Sistemas S.A.) will end tomorrow, June 23,
2005.

Tenplus was declared bankrupt by Buenos Aires' civil and
commercial Court No. 5 after it defaulted on its debt payments.

The Company's affairs as well as its assets are placed under the
control of court-appointed trustee Carlos Guido Martino, who is
tasked with verifying the authenticity of claims presented by
the Company's creditors.

The trustee will present individual reports based on the
forwarded claims to the court on August 19. A general report
will also be submitted on September 30.

Clerk No. 9 assists the court on this case.

CONTACT: Mr. Carlos Guido Martino, Trustee
         Presidente Roque Saenz Pena 651
         Buenos Aires



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

F3 DIVERSIFIED: Member Resolves to Wind-Up
------------------------------------------
     IN THE MATTER OF THE COMPANIES ACT 1981

                      and

IN THE MATTER OF F3 Diversified Managed Return Fund Limited

The Member of V, acting by written consent without a meeting on
June 10, 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 F3 Diversified Managed Return Fund Limited,
which is being voluntarily wound up, are required, on or before
July 1, 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 F3 Diversified
Managed Return Fund Limited will be held at the offices of
Messrs. Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on July 29, 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


GLOBAL CROSSING: Grant of RSU, Performance Shares Approved
----------------------------------------------------------
The Compensation Committee of the Board of Directors (the
"Board") of Global Crossing Limited (the "Company") approved on
June 14, 2005 the grant of restricted stock units ("RSUs") and
performance shares to key employees of the Company ("Grantees"),
including all executive officers.

Each RSU will vest on June 14, 2008, subject to the applicable
Grantee's continued employment through that date and subject to
earlier pro-rata vesting in the event of death or long-term
disability. An RSU entitles the Grantee to receive a share of
unrestricted common stock of the Company on the vesting date.
The executive officers were granted 248,800 RSUs in the
aggregate.

In addition, a target performance share opportunity was
established for each Grantee. Each performance share earned will
be paid out in unrestricted shares of common stock of the
Company on December 31, 2007, subject to the applicable
Grantee's continued employment through that date and subject to
earlier pro-rata payout in the event of death or long-term
disability. The target number of performance shares for all
executive officers in the aggregate is 288,200 shares.

Each Grantee's target performance share opportunity comprises
three separate award opportunities: One based on a measure of
combined 2005 and 2006 earnings (the "EBITDA Opportunity") in an
amount equal to 40% of the overall target opportunity; one based
on combined 2005 and 2006 cash use (the "Cash Use Opportunity")
in an amount equal to 40% of the overall target opportunity; and
one based on combined 2005 and 2006 gross margin attributable to
the Company's "Invest and Grow" revenue category (the "Invest
and Grow Opportunity") in an amount equal to 20% of the overall
target opportunity. Performance shares with respect to each of
the EBITDA Opportunity, the Cash Use Opportunity and the Invest
and Grow Opportunity will be earned only if the Company achieves
specified financial performance goals relating to that
opportunity.

Specifically, each Grantee will earn (i) 50% of his or her
target award for a given opportunity if the threshold financial
performance goal for that opportunity is achieved, (ii) 100% of
his or her target award for a given opportunity if the target
financial performance goal for that opportunity is achieved and
(iii) 150% of his or her target award for a given opportunity if
the maximum financial performance goal for that opportunity is
achieved. Straight-line interpolation will be used to determine
the payout for performance between the threshold and target
goals or between the target and maximum goals. No payout will be
made for performance below threshold, and the payout for
performance above maximum is capped at 150% of the target
opportunity.

Also on June 14, 2005, at the 2005 Annual General Meeting of
Shareholders (the "2005 AGM") the shareholders of the Company
approved an amendment to the 2003 Global Crossing Limited Stock
Incentive Plan (the "Stock Incentive Plan") to increase by 3.5
million the number of authorized common shares reserved for
issuance under that plan. A description of the Stock Incentive
Plan is included in the Company's proxy statement relating to
the 2005 AGM, which was filed with the Securities and Exchange
Commission on April 28, 2005.

CONTACT: Global Crossing
         Press Contacts
         Catherine Berthier
         Phone: 1 646-862-8514
         Email: PR@globalcrossing.com

         Analysts/Investors Contact
         Laurinda Pang
         Phone: 1 800-836-0342
         Email: glbc@globalcrossing.com
         URL: http://www.globalcrossing.com


MED NET: Appoints Michael Smith as Liquidator
---------------------------------------------
   IN THE MATTER OF THE COMPANIES ACT 1981

                     and

IN THE MATTER OF Med Net International, Ltd.

The Members of Med Net International, Ltd., acting by written
consent without a meeting on June 9, 2005 passed the following
resolutions:

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

2) Michael Smith 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 Med Net International, Ltd., which is being
voluntarily wound up, are required, on or before July 1, 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 Michael Smith,
c/o Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Members of Med Net
International, Ltd., will be held at Suite 803, 8Flr-Dina House,
Ruttonjee Centre, 11 Duddell Street, Central, Hong Kong, SAR,
China, on September 30, 2005 at 9:00 a.m. (Hong Kong time), 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. Michael Smith, Liquidator
         c/o Unit 803, 8/F-Dina House
         Ruttonjee Centre
         11 Duddell Street, Central
         Hong Kong, SAR


SHADWELL MASTER: To Be Wound Up Voluntarily
-------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                           and

       IN THE MATTER OF Shadwell Master Fund, Ltd.

The following Resolutions of Shadwell Master Fund, Ltd., were
adopted the by the sole Member by written consent on the June
10, 2005:

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

b) Nicholas Hoskins be appointed Liquidator for the purposes of
such winding-up, such appointment to be effective forthwith.

The Liquidator informs that:

- Creditors of Shadwell Master Fund, Ltd., which is being
voluntarily wound up, are required, on or before the July 15,
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 attorneys (if any) to the
Liquidator of the said Company at Wakefield Quin, Chancery Hall,
52 Reid Street, Hamilton, Bermuda and if so required by notice
in writing from the said Liquidator, and personally or by their
attorneys, 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 above named
Company will be held at the offices of Wakefield Quin, Chancery
Hall, 52 Reid Street, Hamilton, Bermuda on the July 22, 2005 at
10:00 a.m., or soon as possible thereafter, for the purposes of:

1) having an account laid before them showing the manner in
which the winding-up has been conducted and how the property of
the Company has been disposed of and of hearing any explanation
that may be given by the Liquidator;

2) determining by Resolution the manner in which the books,
accounts and documents of the Company and of the Liquidator
thereof, shall be disposed of; and

3) by Resolution dissolving the Company.

CONTACT: Mr. Nicholas Hoskins, Liquidator
         Chancery Hall
         52 Reid Street, Hamilton
         Bermuda


SPEEDY-TECH: Appoints Hoe Boon Kwee as Liquidator
-------------------------------------------------
     IN THE MATTER OF THE COMPANIES ACT 1981

                       And

    IN THE MATTER OF Speedy-Tech Holdings Ltd.

The Members of Speedy-Tech Holdings Ltd., acting by written
consent without a meeting on June 14, 2005, passed the following
resolutions:

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

2) Hoe Boon Kwee 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 Speedy-Tech Holdings Ltd., which is being
voluntarily wound up, are required, on or before July 1, 2005,
to send their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their solicitors (if any) to Hoe Boon
Kwee, c/o 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 solicitors, to come
in and prove their debts or claims at such time and place as
shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.

- A final general meeting of the Member(s) of Speedy-Tech
Holdings Ltd., will be held at the offices of Messrs. Conyers
Dill & Pearman, Clarendon House, Church Street, Hamilton,
Bermuda on July 22, 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. Hoe Boon Kwee, Liquidator
         21-B Rosyth Road
         Singapore 546171



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

CFLCL: Gets Regulatory Clearance to Up Units' Average Rates
-----------------------------------------------------------
Power group Companhia Forca e Luz Cataguazes-Leopoldina (CFLCL)
has received approval from power regulator Aneel to increase the
average rates of two power companies under its umbrella.

Business News Americas reports that Aneel authorized Cenf and
CFLCL to raise their average rates by 9.75% and 4.24%,
respectively.

Cenf distributes power to 81,720 clients in the town of Nova
Friburgo in Rio de Janeiro state while CFLCL provides services
to 308,554 clients in 65 towns in Minas Gerais state.

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


COPEL: Bylaws Ammended, PNA Shares Converted to PNB
---------------------------------------------------
Shareholders of Companhia Paranaense de Energia-Copel decided in
an extraordinary meeting held on June 17, 2005 that the bylaws
be amended and PNA Shares be converted to PNB. Mr. Ariovaldo Dos
Santos was elected to fill in the vacant position as alternate
member of Copel's Fiscal Council during the 2005-2006 term or
office.

SUMMARY OF THE MINUTES OF THE 164th EXTRAORDINARY SHAREHOLDERS'
MEETING

1. VENUE: Rua Coronel Dulcidio, 800, in the city of Curitiba,
State of Parana.

2. DATE AND TIME: June 17, 2005 - 10:30 am.

3. CALL NOTICE: call notice published by the Official Gazette of
the State and newspapers "O Estado do Parana" and "Diario
Comercio Ind£stria e Servicos - DCI".

4. QUORUM: eighty-six wholes, ninety-nine hundredth per cent
(86.99%) of the voting capital and fifty wholes, eighty-seven
hundredth per cent (50.87%) of preferred shares capital, as per
signatures on the Shareholders' Attendance Book 3, page 37, on
the back.

5. PRESIDING BOARD: RUBENS GHILARDI - Chairman; JOAO BONIFACIO
CABRAL JUNIOR - Chairman of the Board of Directors; MARLOS GAIO-
Secretary.

6. RESOLUTIONS TAKEN:

I. By unanimous vote, in compliance with Sarbanes-Oxley Act, the
following amendments to the Company's Bylaws were approved:

a) inclusion of paragraph 3 in Article 11, with the following
wording: "Paragraph 3 - At least, three members of the Board of
Directors shall compose Copel's Audit Committee, which shall be
ruled by specific charter";

b) amendment to the paragraph VI of the Article 15 and paragraph
IX, of the Article 21, with the following wording: "Article 15:
It shall be incumbent upon the Board of Directors: (...) VI
oversee, approve and review the internal audit annual plan
related to the business and management processes of the
Company"and "Article 21 It shall be incumbent upon the Chief
Executive Officer: (...) IX provide funds for the performance of
internal audit activities".

II. By unanimous vote, with abstention of BNDES Participacoes
S.A. - BNDESPAR, through its representative, the adjustment in
the Company's Bylaws was approved, by virtue of conversion of
PNA shares (Class "A" preferred shares) into PNB shares (Class
"B"preferred shares), as requested by the shareholders in
accordance with the prerogative provided for in paragraph 1 of
the Article 7 of the Bylaws, and "caput" of Article 4 of Copel's
Bylaws shall have the following wording: "Article 4 - The paid-
up capital stock is three billion, four hundred, eighty million
reais (R$ 3,480,000,000.00), represented by two hundred,
seventy-three billion, six hundred, fifty-five million, three
hundred, seventy-six thousand, two hundred and seventy
(273,655,376,270) nonpar shares, of which one hundred, forty-
five billion, thirty-one million, eighty thousand, seven
hundred, eighty-two (145,031,080,782) are common shares and one
hundred, twenty-eight billion, six hundred, twenty-four million,
two hundred, ninety-five thousand, four hundred, eighty-eight
(128,624,295,488) are preferred shares, and of which, four
hundred, four million, two hundred, ninety-seven thousand,
seventy-five (404,297,075) are class "A" shares and one hundred,
twenty-eight billion, two hundred, nineteen million, nine
hundred, ninety-eight thousand, four hundred and thirteen
(128,219,998,413) are class "B" shares.

III. By unanimous vote, with abstention of BNDES Participacoes
S.A. - BNDESPAR, through its representatives, Mr. Ariovaldo Dos
Santos, Brazilian citizen, married, accountant, identity card
(RG) 4.684.743-SP, individual taxpayer's register (CPF/MF)
402.805.438-91, resident and domiciled at Rua Novo Mexico, 189,
in the city of Cotia, State of Sao Paulo, was elected to fill in
the vacant position as alternate member of Copel's Fiscal
Council during the 2005-2006 term of office, which was not
filled in the last Annual Shareholders' Meeting.

SIGNATURES: SILMARA BONATTO CURUCHET - Representative of the
State of Parana; JOAO BONIFACIO CABRAL JUNIOR - Chairman of the
Board of Directors; RUBENS GHILARDI - Chief Executive Officer
and Chairman of the General Meeting; ANTONIO RYCHETA ARTEN -
Fiscal Council's member; REGINA BACELLAR TEORODO DA SILVA -
BNDES Participacoes S.A. - BNDESPAR; MARCIA REGINA DE NORONHA
MACHADO - The Bank Of New York Adr Department; PAULO ROBERTO
ESTEVES - VANGUARD EMERGING MARKETS STOCK INDEX FUND; VANGUARD
EMERGING MARKETS STOCK INDEX FUND; ISHARES MSCI BRAZIL (FREE)
INDEX FUND; COMMONFUND EMERGING MARKETS I C; STATE STREET
EMERGING MARKETS; USAA EMERGING MARKETS FUND; CIBC EMERGING
ECONOMIES FUND; THE BRAZIL MSCI EM MKTS INDEX COMMON TRUST FU;
STICHTING PENSIOENFONDS ABP; IMPERIAL EMERGING ECONOMIES POOL;
IBM TAX DEFERRED SAVINGS PLAN; CENTRAL STATES SOUTHEAST
SOUTHWEST A PE FD; THE CALIFORNIA STATE TEACHERS RETIREMENT SYS;
VIRGINIA RETIREMENT SYSTEM; MISSOURI STATE EMPLOYEES RETIREMENT
SYSTEM; THE MASTER T B OF JAPAN LTD RE MTBC400035147; GANNETT
RETIREMENT PLAN; TEACHERS R. SYSTEM OF THE STATE OF ILLINOIS;
MARLOS GAIO - Secretary.

CONTACT: Companhia Paranaense de Energia- Copel
         Investor Relations team:
         E-mail: ri@copel.com
         Phone:(55 41) 3222-2027


GLOBOPAR: Moves to Dismiss Involuntary Petition
-----------------------------------------------
GMAM Investment Funds Trust I, Foundation for Research and WRH
Global Securities Pooled Trust have agreed to withdraw the
involuntary bankruptcy petition they had filed against Globo
Comunicacoes e Participacoes S.A.  The three US-based funds hold
some US$94 million of the Company's US$1.9 billion debt.

In a motion submitted on June 13, 2005, the creditors asked the
U.S. Bankruptcy Court for the Southern District of New York to
dismiss the involuntary bankruptcy petition filed against
Globopar on December 11, 2003.

The involuntary petition had been previously dismissed on March
3, 2004 but the Bankruptcy Court reversed its decision following
an appeal from the petitioning creditors.  Globopar has
maintained that the U.S. Bankruptcy Court holds no jurisdiction
over its restructuring since it has no assets, operations, or
revenue in the United States.

The withdrawal of the chapter 11 petition comes at the heels of
an out-of-court restructuring agreement with the Company's bank
creditors.  As reported in Troubled Company Reporter Latin
America on May 19, 2005, Globopar secured the approval of its
debt-restructuring proposal in all outstanding bond series.  On
May 5, 2005, all of Globopar's Brazilian and international
creditor banks signed an agreement related to the renegotiation
of the bank debt.

Globopar says that the involuntary petition is not related to
its out-of-court restructuring and the dismissal of the
bankruptcy case will not affect the restructuring negotiations.

Interested-parties with objections to the dismissal of the
Company's bankruptcy case must file a written objection with the
Clerk of the Court on or before 4:00 p.m. on June 27,2005.

Globopar is one of the world's largest television broadcasters,
as well as one of Brazil's largest publishers of newspapers,
magazines and books.  The Company defaulted on its debt in late
2002 after a 35% drop in the value of the Brazilian real, and a
slowdown in the economy, slashed revenue.


PRIDE INTERNATIONAL: Ratings Reflect Lagging Credit Measures
------------------------------------------------------------
Rationale

The ratings on Pride International Inc. reflect participation in
the highly competitive, deeply cyclical, and capital-intensive
contract-drilling segment of the oilfield services industry.
Furthermore, ratings reflect lagging credit measures, despite
debt reduction over the past year. Somewhat offsetting rating
concerns is a large, well-diversified fleet of offshore drilling
units, a balanced contract revenue portfolio, broad geographic
exposure to the world's major offshore petroleum-producing
regions, and a strengthening backlog of favorable contracts for
its rigs.

Houston, Texas-based Pride has about $1.3 billion in long-term
debt.

Pride's business profile reflects participation in the highly
competitive and cyclical contract-drilling industry, which is
characterized by periods of strong demand, tight rig supply, and
high day rates (which can prompt new rig construction or
upgrades), followed by periods of low demand, excess rig supply,
and low day rates (which can result in "stacked" or idled,
rigs). Drilling activity is strongly correlated to worldwide
exploration and production (E&P) capital spending, which
ultimately reflects petroleum price expectations. Standard &
Poor's views Pride's business profile as average for the
industry. Comparison with other offshore contract-drilling
companies is somewhat problematic, because Pride is not a pure
offshore operator with about 17% and 6% of gross margins,
respectively, coming from land contract-drilling operations and
a small E&P services business.

Nevertheless, in terms of offshore fleet size, Pride has 54
mobile offshore drilling rigs (excluding the company's 24
offshore platforms), making the company a sizable competitor in
the major offshore drilling markets. Leverage to the deepwater
market segment is decent, with two drillships and 11
semisubmersible rigs, most of which have been recently built or
upgraded. As of first-quarter 2005, about 38% and 36% of gross
margins were derived from semisubmersible rigs and jack-up rigs,
respectively. In addition, Pride's offshore fleet has broad
geographic coverage, with rigs operating in most of the world's
major offshore petroleum-producing regions: the U.S. Gulf of
Mexico, West Africa, Brazil, and Mexico (with a somewhat lesser
presence in the North Sea, the Middle East, and Southeast Asia).

Leading-edge day rates for Pride's jack-ups in the Gulf of
Mexico are currently pushing over $40,000 per day--up
substantially from mid-$20,000 per day rates exhibited at the
beginning of 2004. In addition, Pride has a heavy rig
concentration in West Africa (mostly semisubmersibles), which
should benefit from rising day rates and increased rig demand.
Consequently, Pride recently signed the South Pacific (a
conventionally moored deepwater semisubmersible) at a $140,000
per day rate in West Africa, which represented a more than 100%
increase over the rig's previous contracted rate. Pride's
customer base is diversified among state oil companies,
independents, and majors, with its largest customer segment
being state-controlled oil companies. Two customers Petroleo
Brasileiro S.A. - Petrobras and Petroleos Mexicanos (PEMEX),
accounted for roughly 17% and 14% of consolidated revenues as of
year-end 2004. In the near term, Pride should benefit from
increased drilling activity in Mexico and Brazil. Despite
sacrificing some leverage to leading-edge day rates, Pride's
ability to enter into multiyear contracts helps improve revenue
visibility for the company.

Although not as large a component of Pride's business as its
offshore operations, land-drilling operations (largely based in
Argentina and Venezuela) have exhibited stronger contract
pricing and increased utilization in recent months. Utilization
for these assets has improved in 2005 by about 6% and contract
prices have increased by roughly 7% to 10% over levels exhibited
early in 2004, reflecting strengthening rig demand in the
region. Nevertheless, broadly speaking, Pride's international
land fleet operates on a short-term basis (typically contracting
for a year or less) and exhibits weaker utilization and
profitability characteristics through the cycle in comparison
with the company's offshore fleet.

Profitability and credit measures have somewhat lagged improving
market conditions, but are beginning to show signs of recovery
as more attractively priced contracts come on line in 2005.
Operating margins (EBITDA to sales) for Pride have improved,
averaging more than 28% in 2005 up from the low-20% area at
year-end 2003. As day rates and rig utilization continue to
strengthen (particularly in the Gulf of Mexico and West African
markets, where Pride has large rig concentrations) and poorer-
priced contracts roll off, margins should widen further. In
addition, continued efforts to increase operating efficiency and
rationalize costs could also yield margin improvement. With
recent debt reduction and increasing cash flow, EBITDA interest
coverage should improve to over 4x in 2005.

Pride's new management has taken some recent steps more
favorable to credit quality, most notably debt reduction through
asset sales. The pace of Pride's asset sale program has
accelerated in recent months, resulting in debt reduction of
about $300 million in 2004. In addition, Pride recently
converted $300 million in 2.5% convertible debentures to common
shares. As a result, total debt to EBITDA at year-end 2005
should be below 3x (this compares with above 5x at the beginning
of 2004). Consistent with its strategy, Pride announced the sale
of the Pride Ohio rig in February 2005 for $40 million and
recently announced the sale of the Piranha and Ile de Sein rigs,
which should yield about $50 million in additional proceeds.

Liquidity

Liquidity for Pride is improving. As of March 31, 2005,
liquidity consisted of $467 million availability under its
senior secured revolving credit facility and about $45.6 million
in unrestricted cash on hand. Nevertheless, Pride's reliance on
its credit facility to fund working-capital needs is somewhat a
weakness from a credit perspective, as commercial lenders have
withdrawn support in previous industry downcycles. However,
Pride has made strides to reduce its capital expenditures from
previous years (which were about $232 million in 2003 and $215
million in 2002) spending roughly $150 million in total for 2004
and an expected $185 million in 2005. Given improved contracts,
wider margins, and increasing rig utilization, Pride should
generate total cash flow from operations well in excess of
planned capital expenditures in 2005. Indentures governing the
9.375% notes and 10% notes restrict borrowings under the
revolver. Pride has a moderately protracted debt maturity
profile with no sizable debt maturities until 2007. Pride does
not currently pay a dividend.

Outlook

The outlook is predicated on high debt leverage and credit
measures that remain somewhat weak for the rating. Standard &
Poor's expects that the company will continue to improve its
financial profile and credit measures over the remainder of
2005. Conversely, if management continues to achieve success
with its debt reduction strategy and continues to demonstrate
strengthening operating performance in the near to intermediate
term, the outlook could be revised to stable.

Primary Credit Analyst: Jeffrey B Morrison, New York
(1) 212-438-2954; jeffrey_morrison@standardandpoors.com


VARIG: Section 304 Petition Summary Filed
-----------------------------------------
Petitioner: Vicente Cervo
            Foreign Representive

Debtors: VARIG S.A. (Viacao Aerea Rio-Grandense)
         Avenida Almirante Silvio de Noronha,
         365 Rio de Janeiro, RJ 20021-010
         Brazil

                  -- and --

         Rio Sul Linhas Aerea S.A.
         Avenida Almirante Silvio de Noronha,
         365 Rio de Janeiro, RJ 20021-010
         Brazil

                  -- and --

         Nordeste Linhas Aereas S.A.
         Avenida Almirante Silvio de Noronha,
         365 Rio de Janeiro, RJ 20021-010
         Brazil

Case Nos.: 05-14400 through 05-14402

Type of Business: VARIG is Brazil's largest air carrier and the
                  largest air carrier in Latin America.  VARIG's
                  principal business is the transportation of
                  passengers and cargo by air on domestic routes
                  within Brazil and on international routes
                  between Brazil and North and South America,
                  Europe and Asia.  VARIG carries approximately
                  13 million passengers annually and employs
                  approximately 11,456 full-time employees.
                  See http://www.varig.com/

Section 304 Petition Date: June 17, 2005

Court: Southern District of New York

Judge: Robert D. Drain

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

Petitioner's Counsel
In Brazil:            Sergio Bermudes, Esq.
                      Escritorio de Advocacia Sergio Bermudes
                      Praca XV de novembro, no 2o
                      7o e 8o andares, Centro
                      CEP: 20010-101, Rio de Janeiro BRAZIL
                      Tel: 55-21-3981-0030
                      Fax: 55-21-2981-0031

Consolidated Financial Condition as of March 31, 2005:

      Total Assets: BRL2,979,309,000

      Total Debts:  BRL9,474,930,000
(Troubled Company Reporter, Monday, June 20, 2005, Vol. 9, Issue
144)


VARIG: Boeing, ILFC Oppose TRO
------------------------------
U.S. aircraft manufacturer Boeing Co. on Monday filed an
objection to a temporary restraining order issued by the U.S.
Bankruptcy Court in the Southern District of New York to prevent
Brazilian airline Varig's aircraft from being seized overseas.

"The Boeing Co. objects to the temporary restraining order
entered on June 17," said attorneys at Kaye Scholer LLP, acting
for Boeing. "The terms of the proposed (order) are extremely
prejudicial to Boeing."

Varig filed for bankruptcy in a Rio de Janeiro court on Friday
to prevent the aircraft leasing unit of American International
Group Inc. (AIG), the ILFC, from seizing 11 Varig jets whose
lease payments weren't up to date. Varig followed that up with a
request for a temporary restraining order in the U.S. to prevent
its aircraft from being seized overseas.

But Boeing, which claims it has 11 current operating leases with
the Brazilian airline, said Varig's filings were "deficient" and
"premature and thus invalid."

The restraining order "would preclude Boeing from taking action
against aircraft owned by Boeing and leased to Varig and its
affiliates," Boeing's lawyers said.

Also opposed to the temporary restraining order is the ILFC,
which is being represented by law firm Klestdat & Winters LLP.
The ILFC said that, as of June 19, Varig is overdue on US$6.8
million for rent, adjusted rent and maintenance reserves on 11
aircraft owned by ILFC. Varig must pay ILFC approximately US$3
million per month for rent and maintenance, it added.

Boeing and the ILFC also claim that aircraft leasing agreements
are not included in the Brazilian bankruptcy protection
agreement.

The Goodrich Corporation (GR), represented by Heller Ehrman LLP,
as well as Discover Financial Services Inc. and Universal Air
Travel Plan Inc, both represented by Hogan & Hartson LLP, have
asked to participate in the case.

In Portugal, TAP President Fernando Pinto told employees in an
internal communication the airline was still keen on reaching
some kind of partnership with Varig.

"TAP continues to closely follow the (legal) process, since the
strategic reasons that led us to seek a deep partnership with
Varig continue to exist," Pinto said in the memo.


VARIG: Alliance Talks With TAP Air Come to a Halt
-------------------------------------------------
Negotiations between Varig and Portugal's TAP Air over a plan,
under which TAP would invest an undisclosed sum in Varig and
receive a stake of up to 20% in the Brazilian carrier, have
ended, the AP reports, citing a top official at Varig.

Omar Carneiro da Cunha, vice president of Varig's board of
directors, said Varig's bankruptcy filing effectively voided the
memorandum of understanding between the two companies.

"We haven't discussed plans for the future, but if they are
interested in future discussions we remain open to them," Cunha
told the AP in a telephone interview.

In Portugal, TAP President Fernando Pinto told employees in an
internal communication the airline was still keen on reaching
some kind of partnership with Varig.

"TAP continues to closely follow the (legal) process, since the
strategic reasons that led us to seek a deep partnership with
Varig continue to exist," Pinto said in the memo.



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

ECOPETROL: On the Lookout for Partner in Heavy Crude Project
------------------------------------------------------------
State-owned oil company Empresa Colombiana de Petroleos
(Ecopetrol) will launch a bidding process in August to choose a
partner for a heavy crude oil exploration and production project
in central Colombia.

Ecopetrol will accept proposals until December 15, the Company
said, adding that the contract is expected to be signed in March
next year. Corporations with minimum proven reserves of 500
million barrels of crude oil and a credit rating of at least BBB
can take part in the selection process.

Ecopetrol said the investment in exploration will range from
US$40 million to US$60 million, while production outlays will
run anywhere from US$1.0 billion to US$1.6 billion.

The three sites to be explored are in Meta province in regions
with reserves of 800 million to 1 billion barrels of oil.

Ecopetrol is engaged in the exploration, production,
transportation, refining and marketing of its crude and
petroleum derivatives. The Company produces some 430,000 b/d of
crude and has a total installed refining capacity of about
285,000 b/d.



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

* ECUADOR: S&P Cuts Long-Term Rating To 'CCC+' From 'B-'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
sovereign credit rating on the Republic of Ecuador to 'CCC+'
from 'B-' and removed it from CreditWatch with negative
implications, where it was placed on April 21, 2005. The outlook
on the rating is stable.

"The downgrade reflects concerns about the ability of the
government to cover its financing needs over the coming year,
given uncertainty about the magnitude of disbursements from
multilateral agencies and the willingness of the private sector
to roll over locally issued debt," said Standard & Poor's credit
analyst Lisa M. Schineller.

Standard & Poor's calculates a central government financing gap
on the order of US$400 million for 2005. The gap differs from
official assumptions owing not to markedly different estimates
about the central government's fiscal out-turn or the
accumulation of revenue in the oil stabilization fund
(FEIREP), but to more conservative expectations about the
availability of official and private-sector funding. Indeed, the
updated official central government fiscal projections that were
submitted to Congress along with proposed legislation to change
the fiscal responsibility law (FRL) and the use of FEIREP
proceeds differ modestly compared with those of the previous
government. "Despite the continued high oil price environment,
the government's access to funding and ability to satisfy its
borrowing needs are materially weaker now than earlier in 2005,"
explained Ms. Schineller. "The changes to the FRL and FEIREP,
coupled with conflicting policy signals from the government,
have raised the likelihood of curtailed access to official and
private sector financing," she added.

Standard & Poor's said that clarification on the amount of
exceptional financing likely to be forthcoming from the
multilaterals for 2005 is not expected until the third quarter.
The time frame depends first on the International Monetary
Fund's evaluation of the final, legislated changes to the FRL
and FEIREP and the government's budget plan for 2006, followed
by funding decisions within the various multilaterals. Lingering
uncertainty about access to official financing could limit the
appetite of the private sector to roll over locally issued debt;
domestic debt maturities are significant in October 2005 (US$260
million) and January 2006 (US$200 million). Against the backdrop
of high expenditure rigidity, these issues heighten the risk
associated with Ecuador's ability to cover its financing needs
over the coming year-a risk that is now consistent with a rating
in the 'CCC' category.

"The stable outlook underscores the evenly balanced pressures on
the rating and the government's ability and willingness to
service its debt," noted Ms. Schineller. "Creditworthiness could
improve with consistent policy signals backed by prudent fiscal
performance that, in turn, restore confidence in government
policy and improve the outlook for access to financing. The
rating could be downgraded should it become apparent that debt-
management capabilities are further impaired, the projected
fiscal out-turn weaken, or instability surface in the here-to-
date, little-changed level of deposits in the banking system,"
she concluded.

Primary Credit Analyst: Lisa M Schineller, New York
(1) 212-438-7352; lisa_schineller@standardandpoors.com



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

* PANAMA: Ratings, Stable Outlook Reflect Debt Burden - Moodys
--------------------------------------------------------------
In its annual report on Panama, Moody's Investors Service says
the country's Ba1 government-bond rating is constrained by high
levels of government-issued debt. The country's Baa1 foreign-
currency credit rating reflects the lack of foreign-exchange
controls for a country whose legal tender is the US dollar and a
service sector that provides a steady source of foreign income.

"Panama's stable credit outlook is supported by improved near-
term growth prospects and the presence of moderate refinancing
needs during 2005 and 2006. The outlook also incorporates our
expectation that the Torrijos administration will carry out the
adjustments required to sustain a reduction in the fiscal
deficit," said Moody's Vice President Mauro Leos, author of the
report.

Although proficient debt management such as debt swaps and
buyback operations have improved Panama's debt profile, the
country's debt-to-GDP ratio of 72% is well above the mean of
similarly-rated countries, according to Moody's report.

Also, the government's debt-to-revenue ratio of more than 300%
reflects the country's low tax base.

"The need to address fundamental fiscal issues, such as pension
reform and a growing fiscal deficit, will influence Panama's
credit outlook," said Mr. Leos.

After several years of increasing fiscal deficits, Panama's
government appears to have renewed its commitment to fiscal
responsibility. Recently approved measures aim to restore fiscal
balance via revenue and expenditure adjustments, "though it is
difficult to establish whether these measures will be aggressive
enough," said Mr. Leos. The country has also overhauled its
fiscal accounting methodology to increase transparency.

In an effort to decrease reliance on external markets, Panama
has issued more domestic debt, "a development that should be
viewed as positive," said Mr. Leos.

The rating agency's report, "Panama 2005 Credit Analysis," is a
yearly update to the markets and is not a rating action.



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

PDVSA: To Sell 30,000b/d of Fuel Oil to Petrochina
--------------------------------------------------
With the aim of following up existing bilateral cooperation
agreements on energy, Petr¢leos de Venezuela and Petrochina Oil
signed in Beijing a contract for the supply of 30,000 barrels
per day of fuel oil for one year, the first 1.8 million-barrel
shipment of which left for China this Friday, June 17th.

The total volume of the contract will contribute towards meeting
the growing fuel demand of this Asian country. At the same time,
further consolidation of bilateral relations between Venezuela
and China will result from this commercial energy initiative, a
solid achievement in solidarity cooperation and integration, to
the benefit of economic and social development for the peoples
of both countries.

The supply contract was signed by PDVSA director Asdrubal Chavez
and Liu Zhongqiu, Vice President of Petrochina Oil, during this
visit of the Venezuelan Energy and Petroleum Ministry and PDVSA
delegation headed by the Ministry's Director General of
Exploration and Production, and Rocio Maneiro, Ambassador of the
Bolivarian Republic of Venezuela to the Popular Republic of
China, for the purpose of engaging in business meetings with
Chinese officials and private enterprise executives, as part of
the preparations for the coming visit of Rafael Ramirez,
Minister of Energy and Petroleum next July.

The busy Venezuela-China energy agenda aims at promoting
groundwork based on the agreements established in the Memorandum
of Understanding on a Greater Cooperation in the Energy Sector,
signed by the President of the State Commission for the
Development and Reform of the Popular Republic of China, Ma Kai,
and the Venezuelan Minister Rafael Ramirez, within the framework
of the visit paid by Hugo Chavez Frias, President of the
Bolivarian Republic of Venezuela on, 23rd. December last to
Beijing where, together with his opposite number Hu Jintao, they
agreed to promote integral bilateral cooperation between the two
countries-

The complementary needs of both countries are made evident by
their political commitment to the creation of a multi-polar
world and, as regards energy, Venezuela's desire to achieve
greater customer diversification for its oil and gas exports,
while China seeks to expand its roster of suppliers to meet its
growing energy demand. Venezuela has oil reserves for more than
285 years' production at the current rate and is the world's
fifth ranking hydrocarbons exporter, while China -a huge market
of 1.3 billion inhabitants- is the world's second largest energy
importer.

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: National Assembly to Discuss Reform Bill
-----------------------------------------------
A reform bill that would allow state oil firm PDVSA to keep more
of the revenues it earns from crude and oil derivatives exports
and have more say over how they are used is now in the hands of
the national assembly.

According to Business News Americas, a clause in the 2001 law
obliges PDVSA to sell all of its foreign currency gains from
exports exclusively to the Central Bank.

The reform bill, which will be discussed and examined by the
national assembly, seeks to modify this particular clause. Not
only that, the bill also removes the Central Bank's control over
what PDVSA does with export revenues kept overseas.

The new article states that the revenues from export activities
will be sold to the Central Bank in the amount necessary to
cover operating expenses and fiscal contributions.

What is not sold to the Central Bank will "be transferred to a
fund that the government will create with the aim of financing
projects of real productive investment - education and health,
improving the profile and balance of the national public debt
and attending to special and strategic situations," the article
says.

Venezuelan oil is currently selling at over US$40 a barrel,
about US$17/b above the 2005 budget price of oil exports
estimated at US$23/b. Part of the difference between the
estimated price and the actual price would be considered a
windfall and could also end up in a rainy day fund. The fund
would be used to prop up public spending if and when oil prices
drop.




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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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