TCRLA_Public/050627.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

           Monday, June 27, 2005, Vol. 6, Issue 125



CORDERO HNOS: Receiver to Present General Report
GATIPRINT S.A.: Verification of Creditors' Claims Ends
JUAN C. GUZMAN: Files Petition to Undergo Reorganization
LOMA NEGRA: Brazilian Firm Yet to Finalize Purchase Plans
PESCA DEL SOL: Enters Bankruptcy on Court Orders

RICARDO AMIGHINI: Individual Reports to be Submitted Tuesday
SUDAMERICAN S.A.: Trustee to Submit Individual Reports
TORPEDOS S.R.L.: Trustee Ceases Verification of Claims
TRANSENER: Enre to Impose Fine Following June 21 Incident
WOOLYN S.A.: Gets Court Approval for Reorganization


FOSTER WHEELER: Appoints della Sala as CEO of E&C Group
LORAL SPACE: Intelsat Americas(TM)-8 Satellite Launched


AES CORP.: CFO to Resign by Year End
BANCO DO NORDESTE: Govt.'s Ownership Affects Ratings
BRASKEM: Ratings Unaffected by Joint Venture With Petrobras
CESP: Ratings Down on Weak Cash Flow Says S&P
COPEL: Gets Regulatory Approval to Increase Power Rates

PARMALAT: Unveils Mutual Claims Settlement Proposal
TELEMAR: Board Approves Credit of IOC


PAZ DEL RIO: Denies Reports on Impending Sale


C&W JAMAICA: France Telecom Draws Up Takeover Plan
SINGER: Sells Jamaica Retail Business for Approx. $8.5M


AHMSA: Authorities Drop Tax Charges
ALFA: To Shut Down Alpek Plant Next Month
GRUPO MEXICO: UBS Recommends `Buy'
INNOVA: S&P Raises Ratings, Removes From CreditWatch Positive
SATMEX: Mulls South American, Central American Expansion

     -  -  -  -  -  -  -  -


CORDERO HNOS: Receiver to Present General Report
Local accounting firm "Estudio Romero, Crubiller, Torres" will
submit a general report for the Cordero Hnos S.R.L.
reorganization tomorrow, June 28, 2005.

The general report will include the audited accounting of the
Company and its business records as well as the summary of
important events pertaining to the reorganization.

The firm was appointed by Court No. 2 of Buenos Aires' civil and
commercial tribunal to oversee the reorganization proceedings.
It passed individual reports on May 13, 2005 after it closed the
verification of creditors' claims on March 30, 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 for Nov. 7, 2005.

CONTACT: "Estudio Romero, Crubiller, Tores"
         Jujuy 167
         San Juan

GATIPRINT S.A.: Verification of Creditors' Claims Ends
Tomorrow, June 28, is the deadline for the verification of
claims of creditors of Gatiprint S.A.  Court No. 7 of Buenos
Aires' civil and commercial tribunal declared the Company
"Quiebra" after it defaulted on its debts. Mr. Jorge
Stanislavsky was appointed as trustee. He will present on Sept.
20, 2005 the individual reports, which are based on the
validated claims. A general report will follow. The city's Clerk
No. 14 assists the court on this case.

CONTACT: Mr. Jorge Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires

JUAN C. GUZMAN: Files Petition to Undergo Reorganization
Juan C. Guzman y Cia. S.A., a company operating in Buenos Aires,
is seeking to undergo a reorganization process after failing to
pay its liabilities, Infobae relates.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before the city's civil and commercial Court
No. 1. Clerk No. 1 assists the court on this case.

CONTACT: Juan C. Guzman y Cia. S.A.
         Caracas 4552
         Buenos Aires

LOMA NEGRA: Brazilian Firm Yet to Finalize Purchase Plans
Construcoes e Comercio Camargo Correa SA, Brazil's fourth-
biggest cement producer, is yet to finalize its plan to acquire
Loma Negra SA, Argentina's largest cement Company.

Business News Americas recalls that in April, Camargo signed a
letter of intent to buy Loma Negra, including its four
subsidiaries in Argentina, for US$1.03 billion. But Camargo said
that as of June 22, there was just a letter of intention,
nothing more.

Loma Negra, which produces more than 3 million tons of cement a
year in nine plants in Argentina and employs 1,900 people,
defaulted on about US$400 million of debt following the
government's default. The Company, a private company that is
majority owned by Amalia Lacroze de Fortabat, restructured part
of that debt by giving investors US$226 million of new bonds in

Lacroze de Fortabat, Argentina's richest woman, had previously
been in talks with France's Lafarge SA and Mexico's Cemex SA,
the world's biggest and third-biggest cement companies
respectively, to sell the Company. Loma Negra said in December
2004 that JPMorgan Chase & Co. was advising it on the

PESCA DEL SOL: Enters Bankruptcy on Court Orders
Pesca del Sol S.A. enters bankruptcy protection after Court No.
20 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 40, 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

Infobae reports that the court selected Ruben Daniel Sarafian as
trustee. Mr. Sarafian will be verifying creditors' proofs of
claim until the end of the verification phase on Sept. 2, 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. 22, 2005.

CONTACT: Mr. Ruben Daniel Sarafian, Trustee
         Tucuman 1657
         Buenos Aires

RICARDO AMIGHINI: Individual Reports to be Submitted Tuesday
Individual reports on the validated claims of creditors of
Ricardo Amighini Automoviles S.A. are due for court submission
tomorrow, June 28.

Court No. 10 of Buenos Aires' civil and commercial tribunal,
with the assistance of Clerk No. 20, appointed Hugo Oscar D.
Ubaldo as trustee. Mr. Ubaldo is required to present the
individual reports, having received the creditors' claims until
May 13, 2005.

After submitting the individual reports for court approval, the
trustee will prepare the general report which will be passed on
Aug. 24, 2005.

CONTACT: Mr. Hugo Oscar D. Ubaldo, Trustee
         Adolfo Alsina 1535
         Buenos Aires

SUDAMERICAN S.A.: Trustee to Submit Individual Reports
Trustee Ernesto Horacio Garcia will submit the individual
reports to court tomorrow, June 28, 2005, after the verification
of claims of creditors of Sudamerican S.A. ended on May 30,

Buenos Aires' civil and commercial Court No. 5 appointed Mr.
Garcia to supervise the ongoing bankruptcy case of Sudamerican
S.A., which was then converted into a "concurso preventivo".

Mr. Garcia is also tasked to submit a general report on the
bankruptcy process on August 24, 2005.

An informative assembly between the Company and its creditors
will take place on February 24, 2006.

CONTACT: Sudamerican S.A.
         La Pampa 2037
         Buenos Aires

         Mr. Ernesto Horacio Garcia, Trustee
         Montevideo 536
         Buenos Aires

TORPEDOS S.R.L.: Trustee Ceases Verification of Claims
Trustee Beatriz Stachesky will stop accepting claims from
creditors of Torpedos S.R.L. tomorrow, June 28, 2005.

The verified claims will serve as basis of the individual
reports to be presented by Ms. Stachesky to Buenos Aires' civil
and commercial Court No. 3. Creditors who fail to submit their
claims will not qualify for any distributions. The trustee will
also submit a general report.

Ms. Stachesky was appointed trustee after the court favored the
bankruptcy petition of Mr. German Gruszczyk, whom the Company
owes US$18,718.34.

Clerk No. 6 assists the court on the case.

CONTACT: Torpedos S.R.L.
         25 de Mayo 597
         Buenos Aires

         Ms. Beatriz Stachesky, Trustee
         Avenida Cordoba 817
         Buenos Aires

TRANSENER: Enre to Impose Fine Following June 21 Incident
Power regulator Enre will slap an unspecified fine amount
against transmission company Transener following a June 21
accident that brought down a 500kV line in the southern part of
the country, says Business News Americas.

A machine carrying out maintenance on the lines knocked down the
tower and a 500kV line which links the 1,200MW El Chocon
hydroelectric plant to the Puelches substation in Neuquen

Despite the incident, Transener was able to meet record demand
peak of 15,699MW on the evening of June 21. Nevertheless, Enre
will fine Transener an unspecified amount, according to a
spokesperson from the planning ministry.

WOOLYN S.A.: Gets Court Approval for Reorganization
Woolyn S.A. will embark on a reorganization process following
the approval of its petition by Court No. 14 of Buenos Aires'
civil and commercial tribunal. The opening of the reorganization
will allow the Company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Ms. Fanny Izbizky will oversee the reorganization proceedings as
the court-appointed trustee. She will verify creditors' claims
until Aug. 16, 2005. The validated claims will be presented in
court as individual reports on Sep. 28, 2005.

Ms. Izbizky 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.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval will be scheduled after the reports are

Clerk No. 27 assists the court on this case.

CONTACT: Ms. Fanny Izbizky, Trustee
         Olazabal 4981
         Buenos Aires


FOSTER WHEELER: Appoints della Sala as CEO of E&C Group
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Thursday the
appointment of Umberto della Sala as chief executive officer of
the Company's Global Engineering and Construction (E&C) Group.
In this newly created role, Mr. della Sala will report directly
to Raymond J. Milchovich, chairman, president and chief
executive officer.

"The majority of the markets served by our E&C business are in
an investment phase of their business cycle, creating the
strongest market we've experienced in years," said Mr.
Milchovich. "Uniting all four of our E&C business units--
Continental Europe, the United Kingdom, Asia Pacific and North
America--under Umberto's leadership, will better enable us to
optimize our global resource base and be more responsive to our
clients, most of whom operate on a worldwide scale.

"Umberto is a Foster Wheeler veteran of 32 years and has served
in a variety of engineering, commercial and operational roles in
both Europe and North America," continued Mr. Milchovich. "Most
recently, as president and chief executive officer of Foster
Wheeler's Continental Europe business unit, he has dramatically
improved the business unit's financial performance, consistently
met or exceeded client expectations, and built a world-class
management team. Umberto has proven himself as a strong,
experienced, and visionary leader. I look forward to his future
contributions to Foster Wheeler."

Foster Wheeler's Continental Europe business unit has operations
in Italy, France, Spain, Turkey, Switzerland and Chile, as well
as participation in joint venture companies owning and operating
two power plants and one waste-to-energy facility in Italy.

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.
         Maureen Bingert
         Phone: 908-730-4444
         John Doyle
         Phone: 908-730-4270
         Other Inquiries:
         Phone: 908-730-4000

LORAL SPACE: Intelsat Americas(TM)-8 Satellite Launched
Intelsat Americas(TM)-8 (IA-8), a high-power fixed satellite
service (FSS) spacecraft built for Intelsat LLC, Washington, DC,
by Space Systems/Loral (SS/L), was successfully launched
Thursday at 7:03 a.m. PDT. The satellite was sent into space on
a Sea Launch Zenit-3SL rocket from the Odyssey Launch Platform,
positioned on the equator in the Pacific Ocean.

"Throughout Intelsat's history, Space Systems/Loral has provided
the international operator with more satellites than any other
manufacturer, maintaining a strong relationship centered on
building reliable and technologically advanced spacecraft," said
Bernard L. Schwartz, chairman and chief executive officer of
Loral Space & Communications. "SS/L is a national resource, and
together with Intelsat, we provide some of the most important
pieces of the world's communications infrastructure."

Weighing in at 5,500 kg (12,125 pounds), IA-8 is designed to
provide over 16 kW of power at the end of its 15-year mission
life. The satellite carries 28 C-band and 36 Ku-band
transponders that will provide coverage of North and South
America, Alaska, Hawaii and the Caribbean from its orbital slot
at 89 degrees West longitude. IA-8 also carries a Ka-band
payload, providing 24 uplink and 4 downlink spot-beams covering
the Continental United States.

IA-8 is one of the most advanced satellites ever built by SS/L,
featuring advanced thermal technologies including deployable
thermal radiators and loop heat pipes. The satellite also
features state-of-the-art stationary plasma thrusters (SPTs) for
orbital station-keeping maneuvers. This system, using a flight-
proven design, significantly extends the satellite's useful

"The Intelsat Americas-8 program has allowed SS/L to shine once
again as the premier designer and manufacturer of large, high-
power spacecraft developed for operators who demand superior
performance," said C. Patrick DeWitt, president of Space
Systems/Loral. "With so many satellites designed and developed
by SS/L for Intelsat, the two companies have evolved into a
dynamic and close-working team that provides Intelsat's
customers with highly reliable platforms for business-critical
communications services."

IA-8 is the thirty-second satellite built by SS/L for Intelsat,
including all of the recently launched Intelsat IX series of
satellites. In addition, SS/L is currently building the Intelsat
Americas-9 satellite, which will further expand the operator's
coverage and services in North America.

Intelsat Americas-8 is based on SS/L's space-proven 1300
platform, which has an excellent record of reliable operation.
Its high efficiency solar arrays and lightweight batteries are
designed to provide uninterrupted electrical power. In all, SS/L
satellites have amassed more than 1,200 years of reliable on-
orbit service.

Intelsat is a global communications provider offering flexible
and secure services to customers in over 220 countries and
territories. Intelsat has maintained a leadership position for
over 40 years by distributing video, voice, and data for
television and content providers, government and military
entities, major corporations, telecommunications carriers, and
Internet service providers. Intelsat's reach, power and
expanding solutions portfolio deliver information reliably and
quickly to every corner of the globe. For more information,

Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTC Bulletin Board: LRLSQ), is a premier
designer, manufacturer, and integrator of powerful satellites
and satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the company has
an international base of commercial and governmental customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L is ISO 9001:2000

Loral Space & Communications is a satellite communications
company. In addition to Space Systems/Loral, through its Skynet
subsidiary, Loral owns and operates a fleet of
telecommunications satellites used to broadcast video
entertainment programming, and for broadband data transmission,
Internet services and other value-added communications services.

CONTACT: Loral Space & Communications
         John McCarthy
         Phone: 1-212-338-5345


AES CORP.: CFO to Resign by Year End
The AES Corporation (NYSE:AES) announced Thursday that Barry
Sharp will resign from his position as Executive Vice President
and Chief Financial Officer by the end of this year.

Following his departure from AES, Mr. Sharp will continue to
work with the company as a consultant and assist the new AES CFO
during a transition period. AES has initiated a search for a
successor for the CFO position.

Mr. Sharp has accepted a directorship position with Imagine
Schools, a company that operates public charter schools in nine
states and the District of Columbia. Upon the appointment of a
successor, but no later than year-end, he plans to join the
education company as CFO.

Mr. Sharp joined AES in 1986 as Director of Finance and
Administration and has served as CFO for the past 18 years.

"After nearly 20 years of dedicated service to AES, Barry has
decided to move on to pursue his other interests. Barry was
instrumental in building AES into the global power company that
it is today," said Paul Hanrahan, AES President and Chief
Executive Officer. "He led the company through a difficult
restructuring period and played a major role in restoring AES to
the solid financial position it has today. I am personally very
grateful for his contributions and look forward to his continued
involvement with the company."

Mr. Sharp commented, "My decision to leave AES was difficult,
but after almost 20 years with the company, I have decided that
this is the right time to make a transition to a new set of
challenges. I have made this decision with the confidence that
AES is on strong financial ground with an exceptional team of
people. Although I will not be leaving my current position until
an orderly transition has been arranged, I wish to take this
opportunity to express my sincere appreciation to all AES people
for the tremendous experience of the last 20 years. I look
forward to continuing my relationship with AES in the future."

AES is a leading global power company, with 2004 revenues of
$9.5 billion. AES operates in 27 countries, generating 44,000
megawatts of electricity through 124 power facilities and
delivers electricity through 15 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

CONTACT: AES Corporation
         Media Contact:
         Robin Pence
         Phone: 703-682-6552
         Investor Inquiries:
         Scott Cunningham
         Phone: 703-682-6336

BANCO DO NORDESTE: Govt.'s Ownership Affects Ratings

The ratings on BNB reflect its ownership by the Federative
Republic of Brazil (LC: BB/Stable/B; FC: BB-/Stable/B). The
government holds 91% of the bank's voting shares, and is
involved in management of its operations. Strong sovereign
support is evidenced by the government's funding and
capitalization policies, despite the absence of a timely
government guarantee.

BNB plays a key public-policy role in Brazil's northeastern
region. The bank is the sole provider of long-term financing to
the industrial and agricultural sectors in many northeastern
states, and accounts for (on average) 76% of lending in the

The bank benefits from a steady liquidity inflow and favorable
liability structure. Domestic funding includes constitutionally
mandated monthly transfers to BNB from federal tax revenue and
public sector deposits (including those from the national
workers insurance fund and Banco Nacional de Desenvolvimento
Econ“mico e Social). Around 60% of BNB's funding is from
domestic official sources.

The ratings on BNB, however, are constrained by Brazil's
sovereign risk. BNB relies on public financing and is governed
by public policy (including government-mandated restructuring of
its loan portfolio). Absent sovereign support, however, weak
asset quality and capitalization would undermine BNB's solvency.
Despite having improved from previous year, nonperforming loans
(NPLs; loans classified from 'E' through 'H' according to the
Central Bank's regulations) are high (10.4% at December 2004);
provisioning coverage, complying well with regulatory standards,
is low at 88% of NPLs when compared with more than 100% for the
top-tier banks in Brazil.


The stable outlook on the long-term foreign currency rating
matches that on Brazil. All things being equal, ratings on BNB
should move in tandem with those on the sovereign. Borrowing
from multilateral organizations is government-guaranteed, and
sovereign approval is required for medium- and long-term foreign
funding. Given BNB's key public-policy function in the
northeastern region, continued government support is expected to
offset periodic pressure on its asset quality.

Primary Credit Analyst: Daniel Araujo, Sao Paulo
(55) 11-5501-8939;

Secondary Credit Analyst: Lisa M Schineller, New York
(1) 212-438-7352;

BRASKEM: Ratings Unaffected by Joint Venture With Petrobras
Standard & Poor's Ratings Services said Thursday that the joint
announcement by Braskem S.A. (Braskem, LC: BB/Stable/--; FC: BB-
/Stable/--; NSR: brAA-/Stable/--) and Petroleo Brasileiro S.A.
(unrated) that they have reached an agreement to build a new
300,000 ton-per-year (tpy) polypropylene facility in Paulinia
(Southeast Brazil) will not affect the ratings on Braskem and
its notes. We have already factored the project and its
potential financial impact into our rating analysis; the final
60% stake to be held by Braskem in the partnership is also in
line with our expectations. The project's total cost is
estimated at $240 million and will be expensed through 2007.
While about 70% of the project will be financed with long-term
debt, we do not see any deviation from Braskem's commitment to a
more prudent financial policy going forward. On the other hand,
the additional capacity will strengthen Braskem's position in
the fast-growing polypropylene market in Brazil.

Primary Credit Analyst: Reginaldo Takara, Sao Paulo
(55) 11-5501-8932;

CESP: Ratings Down on Weak Cash Flow Says S&P

The 'CCC' global scale ratings and the 'brCCC' Brazilian
national scale ratings on electric power generator Companhia
Energ‚tica de Sao Paulo (CESP) reflect its very limited
financial flexibility, weak cash flow measures, and large debt-
amortization requirements in the next three years.

Those concerns are partially mitigated by CESP's proven capacity
to operate its six hydropower plants. They constantly generate
more power than stated capacity, are strategically located in
the state of Sao Paulo, and production costs are low.

CESP is Brazil's and Latin America's third-largest electricity
generator, with 7,456 MW of installed capacity. The company
operates six hydroelectric power plants and is responsible for
57% of the total energy produced in the state of Sao Paulo,
which generates 40% of Brazil's GDP. CESP is a state-owned
company, whose primary shareholder is the state government of
Sao Paulo, with 53% of total capital and 74% of the voting
common shares.


The company recently paid down a US$120 million maturity bond
through a bridge financing. However, CESP still has to refinance
about Brazilian real (BrR) 2 billion in the short term,
including BrR750 million in local currency bonds. The company's
FFO for 2005 is expected to reach about BrR700 million. CESP's
shareholder, the state of Sao Paulo, is working on a
capitalization plan, which includes new equity through the
capitalization of the state-owned transmission company CTEEP in
CESP and further asset sales. On May 18, 2005, Sao Paulo state
legislators approved a bill allowing the state government to
sell control of CTEEP. The sale could raise about BrR1 billion
and is expected to be concluded before year-end, but doubts
remain if these initiatives will provide a timely solution for


The negative outlook on CESP reflects the low predictability of
the company's revenues and cash flow level. Furthermore, weak
cash flow measures associated with its heavy debt burden means
that CESP will depend on further negotiations with its existing
creditors to resolve its maturity schedule. The outlook could be
revised to stable or positive depending on its capacity to
reduce its exposure to short-term debt.

Primary Credit Analyst: Juliana Gallo, Sao Paulo
(55) 11-5501-8948;

COPEL: Gets Regulatory Approval to Increase Power Rates
Power regulator Aneel authorized Cia. Paranaense de Energia
(COPEL), the country's second largest combined power generator
and distributor, to increase average power rates 7.8% starting
June 24.

Aneel ordered Copel to cut residential rates 0.05% but
authorized rates hikes of 8.33-15.25% for power distributed to
larger clients depending on the voltage. The reduction in
residential rates was due to the continued elimination of
subsidies to large consumers, according to an Aneel

Copel distributes power to 3.9 million consumers in 393 towns in
the southern state of Parana.

         Rua Coronel Dulcidio 800
         Parana, 80420-170

         Investor Relations team:
         Phone:(55 41) 3222-2027

Power distributor Eletropaulo Metropolitana Eletricidade de Sao
Paulo S.A. plans to take legal action if the city mayor signs a
bill that forces the Company to bury all overhead cables in the
metropolis in five years, reports Business News Americas.

The bill, which the city council approved on June 9, calls for
some BRL60 billion (US$24 billion) in outlay. The power
distributor said it would have to quadruple its energy prices to
comply with the bill, which will become a law when the mayor
signs it on July 8.

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

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

PARMALAT: Unveils Mutual Claims Settlement Proposal
Parmalat and Morgan Stanley have announced Thursday a proposal
for global settlement of their mutual claims.

The EUR155-million agreement settles all existing and potentials
actions and claims, including compensation of damages. The
litigation was originated by transactions made before that
Parmalat was declared under Extraordinary Administration.

This agreement in principle will be presented within ten days by
the Extraordinary Commissioner, Dr. Enrico Bondi to the
Surveillance Committee and to the Ministry of Production
Activities in order to obtain their required authorizations.
Payment to Parmalat of the above amount is expected to occur
once authorization is received from the Ministry of Production

The top management of the two companies expressed satisfaction
with the agreement.

Commenting on the settlement, Dr. Enrico Bondi said: "We welcome
this agreement, and are pleased that an institution of Morgan
Stanley's stature has decided to contribute to the new

Sir David Walker, Chairman of Morgan Stanley International,
added: "We are committed to contribute to the re-launch of an
important Italian business and it was in our mutual interests to
have reached this agreement."

CONTACT: Parmalat Finanziaria
         Piazza Erculea 9, 20122
         Milano (MI), ITALIA
         Phone: 39 02 8068801
         Fax: 39 02 8693863

TELEMAR: Board Approves Credit of IOC
Tele Norte Leste Participacoes S.A. (NYSE:TNE) announced that
its board of executive officers approved, in a meeting held on
June 22, 2005, a credit of Interest on Capital ("IOC") in the
amount of R$49.7 million, in accordance with the authorization
given at the Company's Extraordinary Shareholders' Meeting held
on April 19, 2005.

The IOC now being approved is to be paid in lieu of the
mandatory dividends to be declared for 2005. The effective
payment date for the IOC related to the fiscal year 2005 will be
proposed and voted on at the Company's Annual General
Shareholders' Meeting to be held by April 30, 2006. Details of
the IOC are as follows:

Brazilian Record Date: June 30, 2005
Brazilian Ex-Date: July 01, 2005
Gross Dividend Rate (per common or preferred shares): R$ 0.1300.

TNE also informed that its subsidiary Telemar Norte Leste S.A.
(Bovespa:TMAR5;TMAR3 and TMAR6) approved, in a meeting held on
June 22, 2005, an IOC in the amount of R$130.9 million, to be
paid in lieu of the mandatory dividends to be declared for 2005.
The effective payment date for the IOC related to the fiscal
year 2005 will be proposed and voted on at the Company's Annual
General Shareholders' Meeting to be held by April 30, 2006.
Details of the IOC are as follows:

Brazilian Record Date: June 30, 2005
Brazilian Ex-Date: July 01, 2005
Gross Dividend Rate: TMAR5: R$ 0.5720; TMAR3 and TMAR6:

CONTACT: TNE - Tele Norte Leste Partipacoes S.A.
         Investor Relations The Global Consulting Group
         Phone: 1-646-284-9416
         Fax: 1-646-284-9494

         Kevin Kirkeby


PAZ DEL RIO: Denies Reports on Impending Sale
Steelmaker Acerias Paz del Rio told the securities regulator
Thursday that its board has not yet received a formal offer to
be acquired by a large international group, nor is it looking
for a buyer.

According to Dow Jones Newswires, the regulator had asked the
Company to shed light on rumors about an impending acquisition
by a foreign firm, which led to a 27% rise in shares last week.

Paz del Rio said earlier this year that it wasn't up for sale
but it is considering a strategic alliance with an international
group. Company president, Alberto Hadad, acknowledged company
executives met with officials from Argentina's Techint in
January, as well as with officials from France's Arcelor in

CONTACT: Acerias Paz Del Rio S.A.
         CARRERA 8A, N 13-31, PISOS 7-11
         4260 - Bogota
         Phone: +57 1 3411570
                +57 1 2823480


C&W JAMAICA: France Telecom Draws Up Takeover Plan
France Telecom, Europe's second-biggest telecoms group, is
preparing a GBP4-billion takeover bid for Cable & Wireless
(C&W), The Trinidad Guardian reports.

Michael Combes, France Telecom's Chief Financial Officer who
draw up the plan, believes that the acquisition of C&W would be
the best way to consolidate the French Group's diverse UK

The French company's impending takeover has pushed C&W's shares
higher since May, making a takeover bid less attractive.

However, bankers believe France Telecom could be prepared to
sell off some of C&W's assets after a successful takeover. These
could include C&W's overseas businesses, in areas such as the
Caribbean, which are worth around GBP1.5 billion.

SINGER: Sells Jamaica Retail Business for Approx. $8.5M
Singer N.V. (Symbol: SNGR) ("Singer" or "the Company") announced
Thursday that it had sold Singer Jamaica Ltd. ("Singer
Jamaica"), the Singer Retail business in Jamaica, to AON
International Inc. for a total consideration of approximately
$8.5 million.

Singer Jamaica operates 18 Singer(R) retail stores in Jamaica
that sell a broad range of consumer durable products for the
home, including furniture, with consumer credit available to
qualified customers. Singer Jamaica had revenues of
approximately $20.1 million in 2004.

Singer received $3.0 million in cash and a $0.5 million interest
bearing, secured promissory note for the equity of the business
being sold, which approximates book value. Singer Jamaica had
outstanding inter-company payables of $5.0 million which have
been restructured into two new interest bearing, secured
promissory notes. Principal and interest on the promissory notes
is payable over 4.5 years. The interest rate on the notes ranges
from 2.1% to 10.0% per annum. The Company will recognize an
accounting loss of approximately $1.6 million on the sale,
largely representing the reversal of the accumulated foreign
currently translation adjustment associated with the
depreciation of the Jamaica dollar over the last several years.

AON International Inc. is a privately owned wholesale
distributor of consumer durables throughout the Caribbean; they
had previously acquired Singer's Retail business in Guyana.

Chairman's Comments

In commenting on the transaction, Stephen H. Goodman, Singer's
Chairman, President and Chief Executive Officer noted, "I am
pleased by the sale of Singer Jamaica. This represents the final
divestment in the Company's restructuring program. Following the
sale, Singer N.V. will be a holding company with no corporate
debt and three well defined assets; a 56.8% equity interest in
Singer Asia, the Company's only continuing operating business,
significant cash holdings, and the promissory notes resulting
from the Singer Jamaica transaction and from the sale last
September of the Sewing business and trademark to KSIN Holdings
Ltd. We have also largely completed the restructuring of the
Company's administrative structure to better reflect Singer's
more concentrated business, smaller aggregate size and enhanced

About Singer N.V.

Singer N.V. was incorporated under the laws of the Netherlands
Antilles on December 21, 1999. Effective September 2000, as a
result of a successful Chapter 11 reorganization, Singer became
the parent company of several operating companies formerly owned
by The Singer Company N.V.

The Singer Retail business in Asia, the only operating business
remaining, consists primarily of the distribution, through
Company-owned retail stores and direct selling, of a wide
variety of consumer durable products in selected Asian emerging
markets. Retail sales activities in these markets are
strengthened by the offer of consumer credit provided by the
Company to its customers. In some markets where it operates,
Singer is recognized as a leading retailer of products for the

The Company does not anticipate that its Common Shares will be
listed on any U.S. or overseas securities exchange, the Nasdaq
National Market System, the Nasdaq Small Cap Market, the OTC
Bulletin Board or a similar trading system. Price quotations for
the Company's Common Shares became available on the "Pink
Sheets" quotation service under the symbol "SNGR" in March 2002.
Brokers should be able to continue trading Singer's Common
Shares using the "Pink Sheets" quotation service as long as the
Company is current in submitting to the Securities and Exchange
Commission ("SEC") the materials that it makes available to its
shareholders or is required to file under the rules and
regulations of the Netherlands Antilles. If the Common Shares
cease to be traded, shareholders seeking to sell or buy Shares
will only be able to do so with considerable difficulty and at
prices that may not reflect the Shares' theoretical inherent
value. Even to the extent that quotations on the "Pink Sheets"
service continue, there is no assurance that there will be
adequate liquidity or that there will not be wide swings in
prices and significant differences between "bid" and "asked"
prices, which will make trading difficult and could cause prices
for the Company's Shares to deviate substantially from their
theoretical inherent value.

CONTACT: Singer N.V.
         Barbara Wybraniec
         Tel: +1-914-220-5143


AHMSA: Authorities Drop Tax Charges
Steel maker Altos Hornos de Mexico SA (AHMSA) struck an accord
with the Finance Ministry, under which authorities will drop tax
fraud charges against several of the Company's board members and

The deal exonerates AHMSA VP Xavier Autrey Maza as well as
brothers Alonso, Manuel, Guillermo and Jorge Ancira Elizondo,
and other consultants, officers and directors of the Company in
the fraud charges that allegedly totaled almost US$25 million
and come from workers' income tax payments retained by the
company and not passed on to the government.

Sources close to the case said the charges of fraud were dropped
after AHMSA agreed to waive a government guarantee on US$18
million in credits granted to it in 1997. The debt was
reportedly paid back to the government last week by an unnamed
third party.

AHMSA said the settlement of the charges will facilitate the
Company's debt negotiations with creditors.

In April, AHMSA resumed negotiations on US$1.87 billion in debt
on which it defaulted in 1999.

AHMSA, based in the northern city of Monclova, is Mexico's
largest integrated steel maker with its own iron and coal mining
operations. The Company produced 3 million metric tons of steel
last year and reported net profit of MXN3.5 billion

         International Operations
         Prolongacion Juarez s/n
         Monclova, Coah., 25770
         Phone: + 52 (866) 649 34 00
         Fax: + 52 (866) 649 23 10
         Web site:

ALFA: To Shut Down Alpek Plant Next Month
Conglomerate Alfa SA told the Mexican Stock Exchange Thursday
that it is planning to close a plant at its petrochemicals unit
Alpek next month, relates Dow Jones Newswires.

"This has been a difficult, but necessary decision to make
because the situation has become unsustainable," Jose de Jesus
Valdez, head of Alpek, said in a statement to the bourse.

Alpek said it is closing the plant on July 31 due to soaring
energy costs and illicit textile imports in Mexico.

The plant, located near Alfa's headquarters in Monterrey,
Mexico, produces 55,000 tons of short polyester fiber a year and
employs 150 people. Alfa said it will continue to produce the
fiber in its Wilmington, N.C., and Charleston, S.C., plants,
where production costs are lower.

GRUPO MEXICO: UBS Recommends `Buy'
UBS Investment Research initiated coverage Thursday of Mexican
copper mining company Grupo Mexico SA with a "buy" rating,
reports Dow Jones Newswires. UBS said it considered that the
market "has not yet fully priced in Grupo Mexico's favorable

Grupo Mexico has recovered from recent lean years of low world
copper prices and it could further benefit from continued high
prices for the metal, UBS said.

In addition, Grupo Mexico is an attractive way to invest in
Southern Peru Copper Corp. (PCU), of which it owns 75%,
estimating that the holding company trades at an 18% discount to
Southern Peru, according to UBS' sum-of-the-parts valuation.

UBS set a 12-month price target of MXN25 a share for Grupo
Mexico, implying potential upside of 35%.

Grupo Mexico is the world's third-largest copper producer with
operations in Peru, Mexico and the U.S..

          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Web site:

INNOVA: S&P Raises Ratings, Removes From CreditWatch Positive
Standard & Poor's Ratings Services raised Thursday its corporate
credit rating on Innova S. de R.L. de C.V.  (Innova, better
known under its commercial name "SKY") to 'BB-' from 'B+' and
removed the rating from CreditWatch Positive, where it was
placed on Oct. 15, 2004. The outlook is now stable.

In addition, Standard & Poor's also raised its rating on
Innova's $300 million senior unsecured notes due 2013 to 'BB-'
from 'B+'.

The rating action follows Standard & Poor's review of Innova's
expenses related to the marketing and promotion efforts
implemented to attract Galaxy Mexico's (dba DirecTV Mexico)
subscribers, as well as the increasing importance that Innova
has within Grupo Televisa S.A. (BBB/Stable/--, with US$1.2
billion in senior notes rated) due to its characteristic as a
'material subsidiary' of the latter, and thus the consequences
that a default on Innova's senior notes would have on the senior
notes of Televisa.

"Innova's operating momentum should continue strengthening its
key credit ratios," said Standard & Poor's credit analyst Manuel
Guerena. "Its unprotected dependence on an exclusive satellite
limits further ratings upside potential, while a deterioration
in its improved profitability and cash flow metrics could
trigger a negative rating action."

Primary Credit Analyst: Manuel Guerena, Mexico City
(52) 55-5081-4411;

Secondary Credit Analyst: Raul Marquez, Mexico City
(52) 55-5081-4437;

SATMEX: Mulls South American, Central American Expansion
Satelites Mexicanos SA (Satmex) is looking to expand services in
South America and into Central America, reports Business News

"We want to extend our business to all of Central and South
America," Satmex's deputy director Daniel Gomez was quoted as
saying after a meeting with 60 executives of telecommunications
companies in Colombian capital Bogot .

Satmex expects to seal six business deals in Colombia where it
currently only provides services to the cable TV company, which
transmits Mexican league soccer games.

Satmex has rights for coverage in 40 countries in the Americas,
Gomez said. However, its main coverage is currently concentrated
in the US and Mexico.

Satmex has three satellites in orbit: Solidaridad II, Satmex 5
and Morelos II covering Canada to Argentina. The Company's
Satmex 6, which would provide an exclusive band for South
America, is built but has been grounded while Satmex attempts to
solve its debt problems and obtain additional credit to finance
the insurance for the satellite's launch.

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.


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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