TCRLA_Public/050705.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, July 5, 2005, Vol. 6, Issue 131

                            Headlines

A R G E N T I N A

ACONCAGUA OBRAS: Trustee to Submit General Report
BUENA VISTA CAFE: Enters Bankruptcy on Court Orders
DROGUERIA SIGMA: Gets Court Approval for Reorganization
EUTRON S.A.: Court Rules for Liquidation
HOSTAL DE ARECO: Debt Payments Halted, Set To Reorganize

LAVALLE DECORACIONES: Liquidates Assets to Pay Debts
MIRMAR S.A.: Reorganization Proceeds To Bankruptcy
PAN AMERICAN ENERGY: Moody's Upgrades Foreign Currency Ratings
PETROBRAS ENERGIA: Moody's Upgrades Ratings on Bonds, Notes
PROWHITE S.A.: Court Issues Bankruptcy Ruling

SUPERMERCADOS DONA: Deadline for Individual Reports Approaches
TRANSENER: Grupo Dolphin Has No Plans to Increase Ownership
VALHERNA S.A.: Court Rules for Liquidation
* SANTIAGO DEL ESTERO: Moody's Moves Rating To D.ar


B E R M U D A

GRN RE: Details Intention to Apply for Release, Dissolution
LORAL SPACE: Extends Rights Offering Expiration Date


B O L I V I A

AGUAS DEL ILLIMANI: Suez Seeks Friendly Negotiations With Govt.


B R A Z I L

CSN: Fitch Rates CSN Islands X $150M Note Issuance 'BB-'
ELETROPAULO METROPOLITANA: In Talks to Sell Unit to Telemar
NII HOLDINGS: States Convertibility of 3 1/2% Convertible Notes
TCP: Tax Benefit Capitalization Proposal Approved
TELEMAR: Faces Lawsuit for Allege Violation of Competition Laws

TELEMAR: Announces Rate Increases
UNIBANCO: Board Appoints New Substitute IR Officer
VASP: Seeks Bankruptcy Court Protection Under New Law


C O L O M B I A

ECOPETROL: Postpones Tibu Prequalification Deadline to July 6


C O S T A   R I C A

* COSTA RICA: Ratings Reflect Improved Fiscal Management


G U A T E M A L A

BANCO INDUSTRIAL: Fitch Affirms Ratings


J A M A I C A

AIR JAMAICA: Mgt. Delivers Bullish Outlook on Airline
AIR JAMAICA: To Give Up Interest in Express


M E X I C O

EMPRESAS ICA: Places MXN800 Mln in Exchange Traded Notes
GRUPO IUSACELL: Seeks Extension for Filing of Annual Report
GRUPO ELEKTRA: BoNY Issues Notification of Termination of GDSs
GRUPO ELEKTRA: Submits Form 12b-25 for Annual Report Late Filing
GRUPO MEXICO: Workers Accuse Asarco of Unfair Labor Practices

TV AZTECA: Unable to File Annual Report on Time


V E N E Z U E L A

PDVSA: Ramirez Executes Agreement With Jamaican Counterpart

     -  -  -  -  -  -  -  -

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A R G E N T I N A
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ACONCAGUA OBRAS: Trustee to Submit General Report
-------------------------------------------------
Trustee Alejandro Chicurel will submit a general report
regarding the bankruptcy of Aconcagua Obras y Servicios S.R.L.
on Sep. 9, 2005.

Infobae relates that Mr. Chicurel, who was appointed by the
court, verified the creditors' proofs of claim. From the
validated claims, he prepared individual reports, which he
presented to court.

The reorganization of Aconcagua Obras y Servicios S.R.L.
progressed into bankruptcy. Mendoza's civil and commercial Court
No. 1 ruled that the Company is "Quiebra Decretada".

CONTACT: Mr. Alejandro Chicurel, Trustee
         Colon 430
         Mendoza


BUENA VISTA CAFE: Enters Bankruptcy on Court Orders
---------------------------------------------------
Buena Vista Cafe S.A. enters bankruptcy protection after Court
No. 1 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 2, ordered the Company's liquidation.
The order effectively transfers control of the Company's assets
to a court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Andrea Isabel Sita as
trustee. Ms. Sita will be verifying creditors' proofs of claim
until the end of the verification phase on Aug. 31, 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.

CONTACT: Ms. Andrea Isabel Sita, Trustee
         Hungria 1019
         Buenos Aires


DROGUERIA SIGMA: Gets Court Approval for Reorganization
-------------------------------------------------------
Drogueria Sigma S.A. will begin reorganization following the
approval of its petition by Court No. 19 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.

Ines Etelvina Clos will oversee the reorganization proceedings
as the court-appointed trustee. She will verify creditors'
claims until Sep. 28, 2005. The validated claims will be
presented in court as individual reports on Nov. 10, 2005.

Ms. Clos is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on Dec. 23, 2005.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on April 12, 2006.

Clerk No. 37 assists the court on this case.

CONTACT: Drogueria Sigma S.A.
         Tucuman 540
         Buenos Aires

         Ms. Ines Etelvina Clos, Trustee
         Sarmiento 944
         Buenos Aires


EUTRON S.A.: Court Rules for Liquidation
----------------------------------------
Court No. 22 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Eutron S.A. after the Company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement will effectively place the Company's affairs as
well as its assets under the control of Mateo Reynaldo Alberto,
the court-appointed trustee.

Mr. Alberto will verify creditors' proofs of claim until Aug.
23, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on Oct. 4, 2005. The
submission of the general report follows on Nov. 15, 2005.

Clerk No. 43 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT: Mr. Mateo Reynaldo Alberto, Trustee
         Piedras 153
         Buenos Aires


HOSTAL DE ARECO: Debt Payments Halted, Set To Reorganize
--------------------------------------------------------
Court No. 11 of Buenos Aires' civil and commercial tribunal is
reviewing the merits of Hostal de Areco S.A. petition to
reorganize.

Infobae recalls that the Company filed the petition following
cessation of debt payments. Reorganization will allow Hostal de
Areco S.A. to avoid bankruptcy by negotiating a settlement with
its creditors.

Clerk No. 22 is assisting the court on the Company's case.

CONTACT: Hostal de Areco S.A.
         Esmeralda 923
         Buenos Aires


LAVALLE DECORACIONES: Liquidates Assets to Pay Debts
----------------------------------------------------
Buenos Aires-based Lavalle Decoraciones S.R.L. will begin
liquidating its assets following the pronouncement of the city's
civil and commercial Court No. 1 that the Company is bankrupt,
reports Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Oscar Alberto Arias. The trustee
will verify creditors' proofs of claim until Sep. 2, 2005. The
validated claims will be presented in court as individual
reports.

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

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

Clerk No. 1 assists the court on the Company's case.

CONTACT: Mr. Oscar Alberto Arias, Trustee
         Carlos Pellegrini 1063
         Buenos Aires


MIRMAR S.A.: Reorganization Proceeds To Bankruptcy
--------------------------------------------------
The reorganization of Mirmar S.A. has progressed into
bankruptcy. Argentine news source Infobae relates that Mar del
Plata's civil and commercial Court No. 12 ruled that the Company
is "Quiebra Decretada".

Infobae reports that the court assigned Laura Monica Tonon as
trustee, who will verify creditors' proofs of claim until Oct.
10, 2005.

The court also ordered the trustee to prepare individual reports
on the validated claims and a general report on the bankruptcy
process.

CONTACT: Mirmar S.A.
         Cordoba 3977
         Mar del Plata

         Ms. Laura Monica Tonon, Trustee
         Roca 2618
         Mar del Plata


PAN AMERICAN ENERGY: Moody's Upgrades Foreign Currency Ratings
--------------------------------------------------------------
Moody's Investors Service upgraded its ratings for Pan American
Energy LLC's foreign currency bonds and notes to Ba3 from B1. In
addition, Moody's upgraded the company's foreign currency Issuer
Rating and foreign currency Corporate Family Rating (formerly
Senior Implied rating) to B3 from Caa1. These rating actions
were taken in conjunction with Moody's upgrade of Argentina's
foreign currency ceiling for bonds and notes to B3 from Caa1 on
June 29, 2005. The Issuer Rating and the Corporate Family Rating
are constrained by Argentina's B3 ceiling, as only ratings
assigned to specific securities can pierce a country ceiling
under Moody's rating policies. Pan American Energy's Ba2 global
local currency Issuer Rating was not affected. The rating
outlook is stable.

PAE's Ba3 foreign currency rating reflects its Ba2 local
currency rating, as well as its strong track record in servicing
its foreign currency debt obligations during the Argentine
financial crisis, its ability as an oil and gas company
operating in Argentina to keep up to 70% of its export proceeds
offshore, and the fact that it has a strong majority owner that
operates outside of Argentina. At the same time, the Ba3 rating
takes into account Argentina's B3 long-term foreign currency
ceiling, which represents a high degree of foreign currency
convertibility and transfer risk.

PAE's ratings are supported by its substantial oil and gas
reserves and strong market share in Argentina, its position as a
net exporter of oil and gas, its fairly long reserve life on
proven developed reserves and favorable oil production growth
outlook, its efficient cost structure, the benefits derived from
its relationship with its majority owner, BP plc (rated Aa1),
and its appropriately conservative financial leverage.

However, the ratings also considers PAE's geographic
concentration, its small contribution to BP's worldwide
hydrocarbon reserves and production, economic instability and
political risk in Argentina and Bolivia, including the risk of
government interference through price controls and taxation,
with negative implications for natural gas reserve replacement,
PAE's high proportion of proved undeveloped reserves, recent
increases in and the potential for continued upward pressure on
its full-cycle costs, and the company's significant near-term
debt maturities.

Moody's stable outlook for PAE's ratings assumes the company
will continue to maintain appropriately conservative financial
leverage (below US$2/boe proven developed reserves) as it seeks
to grow its oil reserves and production. The stable outlook for
the Ba3 foreign currency rating is consistent with Moody's
stable outlook for Argentina's B3 sovereign ceiling. Moody's
believes there is limited upside for PAE's Ba3 rating at the
present time. Over the longer term, a reduction in government
interference risk or improvement in regional natural gas markets
could have favorable rating implications. An upgrade in
Argentina's ceiling could also be positive for PAE's ratings.
Materially higher unit full-cycle costs, increased financial
leverage or a downgrade in Argentina's B3 ceiling could pressure
PAE's ratings.

Pan American Energy LLC is a holding company owned 60% by BP plc
and 40% by Bridas Corporation. The company engages in the
exploration and production of oil and gas in the Southern Cone
region of South America and is headquartered in Buenos Aires,
Argentina.


PETROBRAS ENERGIA: Moody's Upgrades Ratings on Bonds, Notes
-----------------------------------------------------------
Moody's Investors Service upgraded its ratings for Petrobras
Energia S.A.'s (PESA) foreign currency bonds and notes to Ba3
from Caa1, following Moody's upgrade of Argentina's foreign
currency ceiling for bonds and notes to B3 from Caa1 on June 29,
2005. The upgrade also reflects Moody's updated policy for
allowing ratings of foreign currency corporate bonds sold under
foreign law to pierce the country ceiling. The company's foreign
currency Issuer Rating and foreign currency corporate family
rating (formerly Senior Implied rating) were upgraded to B3 from
Caa1. The Issuer Rating and the corporate family rating are
constrained by Argentina's B3 ceiling, as only ratings assigned
to specific securities can pierce a country ceiling under
Moody's rating policies. The rating outlook is stable.

PESA's Ba3 foreign currency bond rating reflects both the
company's fundamental credit quality and the degree of sovereign
interference anticipated in times of stress. Please refer to
Moody's January 2005 Special Comment entitled "Piercing the
Country Ceiling: An Update".

PESA's fundamental credit strengths include the vertically
integrated nature of its energy operations in Argentina, the
size and geographic diversification of its hydrocarbon reserves
and production, the business diversification it derives from its
petrochemical and electricity investments, and the revenue
diversification and foreign exchange provided by its crude oil,
natural gas and petrochemical exports. The company also benefits
from the implicit support of its majority owner, Petróleo
Brasileiro S.A. (Petrobras, rated Ba1 for foreign currency bonds
and notes).

However, Moody's assessment of PESA's fundamental credit quality
also takes into account certain credit weaknesses, including the
company's exposure to commodity price volatility, its declining
oil and gas reserves and production in Argentina, its exposure
to political and regulatory risks in Argentina and in Venezuela,
its relatively high unit finding & development costs when
compared to its regional peers, its relatively high debt levels,
its high proportion of foreign currency debt, and the
cyclicality inherent in its refining and petrochemical
operations.

Headquartered in Buenos Aires, Argentina, Petrobras Energia S.A.
is a 75.8% owned affiliate of Petrobras Energia Participaciones
S.A. and an indirect 67.2% owned affiliate of Petróleo
Brasileiro S.A. The activities of Petrobras Energia S.A.
comprise exploration and production, petroleum refining,
hydrocarbon marketing and transportation, petrochemicals and
electric power generation. The company derives the majority of
its earnings from its exploration and production operations.


PROWHITE S.A.: Court Issues Bankruptcy Ruling
---------------------------------------------
Buenos Aires' civil and commercial Court No. 13 decreed the
bankruptcy of Prowhite S.A., reports Infobae. The Company will
kick off the process with Ms. Flora Marcela Pazos as receiver,
who will verify creditors' claims until Aug. 18, 2005. The
Company's case will conclude with the liquidation of its assets
to repay creditors. Clerk No. 25 assists the court in handling
the proceedings.

CONTACT: Ms. Flora Marcela Pazos, Trustee
         Montevideo 527
         Buenos Aires


SUPERMERCADOS DONA: Deadline for Individual Reports Approaches
--------------------------------------------------------------
The individual reports on the validated claims of the creditors
of Supermercados Dona Maria S.R.L. will be on Aug. 24, 2005,
after court-appointed trustee Jose Gabriel Payueta ceased the
authentication of creditors' claims on June 28, 2005. A general
report on the bankruptcy process is expected on Oct. 7, 2005.

Argentine news source Infobae reports that the reorganization of
Supermercados Dona Maria S.R.L. progressed into bankruptcy.
Mendoza's civil and commercial Court No. 1 ruled that the
Company is "Quiebra Decretada".

CONTACT: Mr. Jose Gabriel Payueta, Trustee
         Monsenor Zabalza 30
         Mendoza


TRANSENER: Grupo Dolphin Has No Plans to Increase Ownership
-----------------------------------------------------------
Contrary to widespread speculations, Argentine investment fund
Grupo Dolphin is not planning to increase its stake in high-
voltage power transporter Transener from its current 32.5%
stake, reports Dow Jones Newswires.

"Grupo Dolphin SA has no intentions of increasing its direct or
indirect shareholding participation in Transener," the fund said
in a statement filed Thursday to the local stock exchange.

Grupo Dolphin also said it does not own any convertible bonds in
Transener.

Grupo Dolphin owns 50% of the power transporter's holding
company, Citelec, which has a 65% stake in Transener. The
investment fund had been seen as interested in controlling a
larger share of Transener.

Petrobras Energia Participaciones, the local unit of Brazil's
Petrobras, currently owns 50% of Citilec. Petrobras is committed
to selling the stake by March 31, 2006 to comply with the
conditions set by the Argentine regulators when they approved
Petrobras' takeover of the local energy company, then known as
Perez Companc. The Argentine government had voiced concerns over
a strategic asset such as Transener, the country's largest power
transporter, falling into foreign hands.

Grupo Dolphin recently agreed to buy a 65% interest in local
power distributor Edenor from Electricite de France (EDF) for
US$100 million.

CONTACT:  TRANSENER S.A.
          Paseo Colon 728 6th Floor
          (1063) Buenos Aires
          Republica Argentina
          Tel: (54-11) 4342-6925
          Fax: (54-11) 4342-7147
          Email: info-trans@transx.com.ar
          Web site: http://www.transener.com.ar


VALHERNA S.A.: Court Rules for Liquidation
------------------------------------------
Court No. 7, of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Valherna S.A. after the Company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement will effectively place the Company's affairs as
well as its assets under the control of Jose Teodoro Gonzalez,
the court-appointed trustee.

Mr. Gonzalez will verify creditors' proofs of claim until Aug.
18, 2005. The verified claims will serve as basis for the
individual reports to be submitted to court. The trustee is also
required to prepare a general report.

Clerk No. 14 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT: Mr. Jose Teodoro Gonzalez, Trustee
         Avda Cordoba 2444
         Buenos Aires


* SANTIAGO DEL ESTERO: Moody's Moves Rating To D.ar
---------------------------------------------------
Moody's Latin America S.A changed, to D.ar from Caa2.ar
(Argentina National Scale), the debt rating assigned to the
Province of Santiago del Estero's Co--participation Tax Revenue
Secured Note Program denominated in dollars. The Caa3 (Global
Scale) rating is unchanged and the rating outlook is stable.

This action is based on a recent judicial ruling suspending
deductions for debt payment, effective June 2005, as a result of
which the province defaulted on payments due June 16.



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B E R M U D A
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GRN RE: Details Intention to Apply for Release, Dissolution
-----------------------------------------------------------
TO CREDITORS AND CONTRIBUTORIES OF INTENTION TO APPLY FOR
RELEASE AND DISSOLUTION OF COMPANY GRN RE INTERNATIONAL LIMITED
- IN LIQUIDATION

Notice is hereby given that the Liquidator intends to apply to
the Supreme Court of Bermuda for his release and the dissolution
of GRN Re International Limited, and further take notice that
any objection you may have to the granting of release must be
notified to the Court on or before 21 days from date of this
notice.

Dated this 1st day of July 2005
John McKenna
Liquidator


LORAL SPACE: Extends Rights Offering Expiration Date
----------------------------------------------------
Loral Space & Communications Ltd. (OTCBB: LRLSQ) announced
Friday that it is extending to July 29, 2005, at 4:00 pm
(Eastern Time) the expiration date of the Rights Offering in
connection with and subject to the terms and conditions set
forth in its Plan of Reorganization previously filed with the
U.S. Bankruptcy Court.

The extension of the Rights Offering expiration date does not
affect Loral's Plan of Reorganization or its timetable for
emergence from chapter 11. The hearing to confirm the Plan of
Reorganization remains scheduled for July 13, 2005. The
effective date for the company's emergence from chapter 11 will
follow confirmation and the subsequent satisfaction of customary
regulatory and other requirements.

On June 29, 2005, Loral filed its Plan Supplement, which
included, among other things, a form of the indenture for the
New Skynet Notes to be issued in connection with this Rights
Offering. There are significant differences between certain of
the principal terms of the New Skynet Notes described in the
term sheet filed previously with the Plan and certain of the
provisions set forth in the form of the indenture for the New
Skynet Notes filed with the Plan Supplement.  Loral, therefore,
with the consent of the Creditors' Committee, has extended the
expiration date of the Rights Offering so that entitled
participants have more time to decide whether to participate in
it.

In the next several days, Loral will send those persons entitled
to participate in the Rights Offering certain additional
materials relating to the exercise of their subscription rights.

Further details regarding this extension are contained in the
Notice Loral filed today with the Court, which is available at
the Court's website at www.nysb.uscourts.gov .

Loral Space & Communications is a satellite communications
company. It owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
distribute broadband data, and provide access to Internet
services and other value-added communications services. Loral
also is a world-class leader in the design and manufacture of
satellites and satellite systems for commercial and government
applications including direct-to-home television, broadband
communications, wireless telephony, weather monitoring and air
traffic management.

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



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

AGUAS DEL ILLIMANI: Suez Seeks Friendly Negotiations With Govt.
---------------------------------------------------------------
French utility Suez told the Bolivian government that it is
taking its case for breach of contract to the Washington-based
International Centre for Settlement of Investment Disputes
(ICSID), reports Business News Americas. ICSID is an autonomous
international organization, which maintains close links with the
World Bank.

Suez's complaint stems from the government's decision last year
to rescind water concessionaire Aguas del Illimani's (AISA)
contract. Suez controls AISA, which held the water concessions
contract for Bolivia's capital La Paz.

"The letter is above all an invitation to friendly negotiations.
We have not yet entered the arbitration process. The letter sets
out a reasonable time frame [six months] for negotiations," a
Suez spokesperson said.

In its previous report, Business News Americas revealed that
Bolivia's basic services regulator SISAB has received a letter
from AISA saying it is prepared to terminate its contract.

In the letter, AISA reportedly proposed that it would accept an
earlier decision by the government to rescind its contract and
leave the country, turning responsibility for water supplies in
the city over to a resuscitated operator SEMAPA.



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

CSN: Fitch Rates CSN Islands X $150M Note Issuance 'BB-'
--------------------------------------------------------
Fitch Ratings has assigned a 'BB-' foreign currency rating to
the proposed US$150 million senior guaranteed perpetual notes of
CSN Island X Corp. These bonds have no fixed maturity; however,
they will become callable in whole on a quarterly basis after
five years. The notes are unconditionally and irrevocably
guaranteed by Companhia Siderurgica Nacional's (CSN). The
proceeds of the offering are expected to be used for general
corporate purposes at CSN, including the repayment of short-term
debt.

In conjunction with this rating, Fitch affirms its 'BBB-' local
currency rating and its 'BB-' foreign currency rating of CSN, as
well as the company's national scale rating of 'AA-(bra)'. CSN's
foreign currency rating is constrained by the Federative
Republic of Brazil's 'BB-' foreign currency rating. The Rating
Outlook for all of the aforementioned ratings is Stable.

CSN's ratings are supported by the company's position as one of
the industry's lowest cost steel producers. CSN's low-cost
structure is due primarily to its ownership of the Casa de Pedra
mine, one of the world's largest high-quality iron ore bodies.
The company also benefits from its modern production facilities,
vertical integration, and access to low-cost labor. These
factors allow CSN to generate positive cash flows during troughs
in the steel cycle and economic downturns in Brazil. The ratings
also consider the concentrated nature of the Brazilian steel
industry, which limits competition based solely upon price.
Competition from foreign steel imports into Brazil is minimal.
Barriers to entry include the logistical challenges of
transporting steel to Brazil and within Brazil, as foreign steel
producers have limited access to efficient distribution
networks.

Over the past several years, CSN has focused on modernizing and
expanding its steel production facilities and divesting its
noncore assets. The company is in the middle of an US$825
million expansion project that began in 2004 and will last
through 2006. The project includes a US$330 million expansion of
the annual production capacity of the Casa de Pedra iron ore
mine to 40 million tons from 14 million tons by mid-2006. To
export the increased iron ore production, CSN will also invest
about US$155 million to expand the Sepetiba port where it
currently operates a coal terminal under an exclusive concession
agreement expiring in 2047. The project may also include a
US$340 million investment to construct a pellet plant with an
annual capacity of six million tons. When the mine expansion is
concluded in 2006, the iron ore export sales are expected to
yield approximately US$400 million in incremental EBITDA.

CSN stands to benefit from the strong price environment for iron
ore and the positive outlook for demand over the near to medium
term. Iron ore prices rose by about 18% in 2004 and 72% in 2005.
These price increases, along with those of several other
commodities, have been driven by the confluence of a relatively
strong global economy and China's surging demand for raw
materials. Consumers of iron ore face an international market
dominated by just a few large rivals and should welcome the
opportunity to have CSN provide another source of high-quality
iron ore. Although this expected incremental cash flow from
CSN's iron ore mine expansion is significant, CSN's credit
quality will continue to be closely linked to the performance of
its steel business as approximately 80% of the company's future
cash flow will be generated from its steel production
operations.

In 2004, CSN generated EBITDA of BRL4.6billion (about US$1.6
billion), an increase of 66% compared with that of 2003 due to
the strong steel price environment and an improved value-added
product mix. For the three months ended March 31, 2005, CSN
generated EBITDA of BRL1.4billion (about US$500 million) and had
total debt of BRL9.7 billion and net debt of BRL3.6 billion.
More than one-third of CSN's cash balance of BRL6.1 billion as
of March 31, 2005 was used to fund a dividend payment in June.
Due to the company's strong cash flow generation in 2005, Fitch
expects CSN to maintain a total debt-to-EBITDA ratio of less
than 2.0 times (x) and a net debt-to-EBITDA ratio of less than
1.5x.

Despite the expectation of significant free cash flow generation
in 2005 and 2006, debt reduction by CSN will be limited by
management's view that its capital structure is close to
optimal, the company's capital expenditure plans, and now, to a
lesser extent, the debt-service requirements of CSN's
controlling shareholder, Vicunha Siderurgia S.A. (Vicunha).
Vicunha has a 40.53% stake in CSN but no operating assets to
generate cash flow. Although CSN is not obligated to directly
service Vicunha's debt, CSN is expected to pay dividends as
needed to allow Vicunha to meet its debt obligations. Vicunha
currently has BRL1.2 billion of total debt.

CONTACT: Anita Saha, CFA +1-312-368-3179, Chicago
         Joe Bormann, CFA +1-312-368-3349, Chicago
         Ricardo Carvalho +55-21-4503-2627, Rio de Janeiro

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


ELETROPAULO METROPOLITANA: In Talks to Sell Unit to Telemar
-----------------------------------------------------------
Power distributor Eletropaulo is rumored to be in talks to sell
its telecommunications network to phone company Telemar, Reuters
reports, citing an article in a Brazilian Internet site
specialized on the telecommunications sector. The speculation
pushed Eletropaulo's shares more than 8% on Thursday, the
article said. Officials for Telemar and Eletropaulo, a unit of
U.S. power firm AES Corp., were not immediately available for
comment. Eletropaulo Telecom manages more than 1,000 miles
(1,600 km) of fiber optical cables in the metropolitan region of
Sao Paulo.

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


NII HOLDINGS: States Convertibility of 3 1/2% Convertible Notes
---------------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Friday that its 3
1/2% Convertible Notes due 2033 (the "Notes") issued pursuant to
an indenture between the Company and Wilmington Trust Company,
as Trustee, dated September 16, 2003 (the "Indenture"), will be
convertible pursuant to section 14.01(a)(i) of the Indenture for
the fiscal quarter beginning July 1, 2005 and ending September
30, 2005. Therefore, holders of the Notes may convert the Notes
into shares of the Company's common stock during this period at
the conversion rate then in effect.

NII Holdings, Inc., a publicly held company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and International
Direct Connect(SM), an extension of Direct Connect(SM), a radio
feature that allows Nextel subscribers to communicate instantly
and across national borders. NII Holdings, Inc. trades on the
NASDAQ market under the symbol NIHD. Visit the Company's website
at http://www.nii.com.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

CONTACTS: NII Holdings, Inc.
          Investor Relations:
          Tim Perrott
          Phone:(703) 390-5113
          E-mail: tim.perrott@nii.com

          Media Relations:
          Claudia E. Restrepo
          Phone:(786) 251-7020
          E-mail: claudia.restrepo@nii.com
          URL: http://www.nii.com


TCP: Tax Benefit Capitalization Proposal Approved
-------------------------------------------------
The Board of Directors of Telesp Celular Participacoes S.A.
(TCP) reviewed and approved the proposal for capitalization of
the tax benefit arising out of the corporate restructuring
process.

A regular meeting of the Board of Directors of the Company was
held on June 28, 2005 to review the proposal of increase in the
capital stock for capitalization of tax benefits arising out of
corporate restructuring.

MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF
TELESP CELULAR PARTICIPACOES S.A., HELD ON JUNE 28, 2005.

1. DATE, TIME AND PLACE: June 28, 2005, at 07:30 p.m., on Av.
Roque Petroni Junior, 1464, 6 Andar, Morumbi, Sao Paulo, upon
regular call, in accordance with the Company's bylaws.

2. CHAIRMANSHIP OF THE MEETING: Felix Pablo Ivorra Cano -
Chairman; Breno Rodrigo Pacheco de Oliveira - Secretary.

3. INSTATEMENT: The meeting was convened with the attendance of
the undersigned Directors, representing a quorum under the terms
of the Company's Bylaws.

4.  AGENDA AND RESOLUTION:

4.1. Review of the proposal of increase in the capital stock for
capitalization of tax benefits arising out of corporate
restructuring:

The proposal for capitalization of the tax benefit arising out
of the corporate restructuring process, already evaluated by the
Company's Audit Committee, has been reviewed and approved. The
amortization of the premium arising out of such process resulted
in a tax benefit of R$242,595,157.06, of which R$120,850,877.93
refer to fiscal year 2004 and R$121,744,279.13 refer to credits
remaining from previous fiscal years, representing a credit to
the controlling shareholder, Portelcom Participacoes Ltda., to
be used for increase of the capital stock of the company upon
issuance of new common shares, with due regard to the preemptive
right set forth in article 171 of Law No. 6404/76, provided that
the funds arising out of eventual exercises of the preemptive
right shall be credited to Portelcom Participacoes Ltda., under
the following terms and conditions:

1. Total Amount of Share Subscription and Increase of Capital:
two hundred and forty-two million, five hundred and ninety-five
thousand, one hundred and fifty-seven reais and six cents (R$
242,595,157.06).

2. Number and Type of Shares to be Issued: twenty-nine million,
two hundred and ninety-eight thousand, nine hundred and thirty-
two (29,298,932) common shares, with no face value, in book-
entry form.

3. Issue Price: Eight reais and twenty-eight cents (R$ 8.28) per
common share. The issue price for the common shares corresponds
to 90% of the weighted average of the prices in the main market
of the 30 trading sessions of Bovespa (Sao Paulo Stock Exchange)
held from May 16, 2005 to and including June 27, 2005.

4. Dividends: The shares arising out of this issue shall be
entitled to full dividends and/or interest on own capital
declared for fiscal year 2005.

5. Term for Exercise of the Preemptive Right: Beginning: June
29, 2005, End: July 28, 2005.

6. Subscription Right Ratio: In order to ascertain the number of
shares a shareholder will be entitled to subscribe, he/she
should multiply the number of shares owned by him/her at
06/28/2005, for the following rates:

Type of Shares Owned        Rate            Type to be
Subscribed
Common                      0.046283975     Common
Preferred                   0.046283975     Common

7. Payment terms: Cash, upon subscription.

8. Eligibility for Subscription: 8.1. Shareholders having
acquired their shares up to 06/28/2005 will be eligible to
subscribe shares. Shares acquired after 06/29/2005 will be ex-
preemptive right to the assignee; 8.2. Holders of ADR's: The new
shares shall not be registered under the Securities Act and may
not be offered or sold in the United States or to North-American
persons. 8.3. Shareholders wishing to trade their preemptive
rights may do so in the period from June 29, 2005 until July 21,
2005, and those shareholders whose shares are kept in custody
with Banco ABN Amro Real should either request to such
institution the respective certificate of assignment of rights,
which shall be issued by ABN Amro Real, or instruct a securities
dealer to be selected by him/her to directly trade the shares at
the stock exchanges. 8.4. Custodian Entities may subscribe, in
their name, ratably to their rights, as trustee owners, up to
the amount corresponding to the shares under custody.

9. Non-Exercised Rights: There will be no non-exercised
preemptive rights.

5. CLOSING OF THE MEETING: Since there was nothing else to be
discussed, the meeting was adjourned, with these minutes having
been drawn-up, which after read and approved were signed by the
Directors attending the meeting and by the Secretary, being
following transcribed in the proper book.

CONTACT: Telesp Celular Participacoes S.A.
         Rua Abilio Soares, 409
         Paraiso
         Sao Paulo, SP 04005-001
         Brazil
         Phone: 55-11-3059-7590


TELEMAR: Faces Lawsuit for Allege Violation of Competition Laws
---------------------------------------------------------------
The country's pro-competition watchdog, the economic rights
agency (SDE), is suing fixed line operator Telemar for violating
competition laws concerning its Internet access unit Oi
Internet, reports Business News Americas.

The lawsuit follows a joint complaint filed by Internet service
providers' associated Abranet and dial-up operators Terra, Uol
and Global Info accusing Telemar of giving Oi Internet
preferential treatment.

Last month, Telemar kicked off a promotion, under which it
offers special packages including a free modem for clients that
sign up for its ADSL service Velox through Oi Internet. The
offer also gives the first 50,000 subscribers three months of
free access, an email account with 2GB storage capacity and free
Wi-Fi access until year-end.

SDE ordered Telemar in a "provisional measure" to discontinue
the offer. Failure to do so would mean a daily fine of BRL15,000
(US$6,388).

CONTACT: TNE - Tele Norte Leste Partipacoes S.A.
         Investor Relations The Global Consulting Group
         E-mail: invest@telemar.com.br
         Phone: 1-646-284-9416
         Fax: 1-646-284-9494
              5521-31311208/31311314

         Kevin Kirkeby
         E-mail: kkirkeby@hfgcg.com
         URL: http://www.telemar.com.br/ri


TELEMAR: Announces Rate Increases
---------------------------------
Tele Norte Leste Participacoes S.A. (NYSE: TNE), the holding
company of telecommunication services providers in the north,
north-eastern and eastern regions of Brazil, announces that, as
defined in the Concession Agreements and authorized by Anatel,
its fixed-line subsidiary Telemar Norte Leste has increased
rates for its Local and Long Distance services, based on the
IGP-DI index as follows:

 Monthly Fee/Local Pulse/Installation Fee = 7.27%
 Public Phone Credit = 7.37%
 Long Distance Basket = 2.94% (*)
 Change of Address Fee = Zero

The interconnection rates were adjusted by +2.94% (TU-RIU) and -
13.32% (TU-RL).

The rate increases will take effect July 03, 2005.
(*) Average rate adjustment.


UNIBANCO: Board Appoints New Substitute IR Officer
--------------------------------------------------
The Board of Directors of Unibanco - Uniao de Bancos Brasileiros
S.A. accepted in a meeting held on Thursday the resignation of
Mr. Marcelo Ariel Rosenhek as the Company's Investor Relations
substitute Officer and appointed in his place Mr. Fernando della
Torre Chagas, the Company's Deputy Officer. Mr. Rosenhek shall
remain serving as Deputy Officer of the Company.

SUMMARY MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF
UNIBANCO - UNIAO DE BANCOS BRASILEIROS S.A., HELD ON JUNE 30,
2005.

VENUE AND TIME: Avenida Eusebio Matoso, 891, 4th floor, in the
City of Sao Paulo, State of Sao Paulo, at 9:00 a.m.

CHAIRMAN: Pedro Sampaio Malan

QUORUM: Totality of the elected members

RESOLUTIONS TAKEN UNANIMOUSLY BY THOSE PRESENT:

I - INVESTOR RELATIONS' BOARD OF OFFICERS

1.  The resignation of Mr. MARCELO ARIEL ROSENHEK to the
position of the Company's Investor Relations substitute Officer
was accepted. Nevertheless, Mr. Rosenhek shall remain serving as
Deputy Officer of the Company.

2.  Appointed, as the Company's substitute Investor Relations
Officer, Mr. FERNANDO DELLA TORRE CHAGAS, Deputy Officer of the
Company. The current Investor Relations Officer of the Company,
Mr. OSIAS SANTANA DE BRITO, shall remain serving in such
position.

II - PUBLIC OFFER

Whereas:

a) Caixa Brasil S.G.P.S. S.A. (Caixa), shareholder of the
Company and of Unibanco Holdings S.A. (Holdings), has stated its
interest in selling the participation it holds in both
companies' share capital;

b) Caixa decided to hire the Company and Banco UBS S.A. for
purposes of organizing and leading an orderly process for
selling such participation, in order to place those shares in
the securities market by means of a Global Offer, including a
public offer in Brazil and abroad;

c) Caixa owns common and preferred shares of the Company and of
Holdings, being most of the preferred shares held in the form of
Units;

d) Units, which are share deposit certificates issued by
Unibanco (each Unit representing one preferred share issued by
the Company and one preferred share issued by Holdings), are
widely negotiated in the domestic and international markets;

e) common shares hardly have liquidity;

f) some shareholders who hold common shares, such as Caixa,
prefer to waive the advantages to which holders of such shares
are entitled to in order to own a security which presents more
liquidity;

g) the exercise of such faculty by the holders of common shares
benefits not only those holders but all the shareholders of the
Company, because it concentrates liquidity in only one specie of
shares issued by the Company;

h) in August 13, 2003, this Board authorized the holders of
pairs of outstanding preferred shares of the Company on
September 15, 2003 (except for those shareholders who hold
shares already in the form of Units or GDSs) to exchange their
preferred shares for Units, as per the Conversion Program put in
place by Holdings. Such program shall be in force until November
04, 2005; and

i) in order to accomplish the above mentioned objectives,
including the secondary public offer of shares by Caixa, some
actions must be taken by the Company, including some which shall
be resolved by this Board of Directors.

Therefore, the Board of Directors resolves, in this date:

1. To authorize the Board of Officers to take all the measures
necessary in order to file the request for register of the
public offer of Units in Brazil before the Securities Exchange
Commission (Comissao de Valores Mobiliarios - CVM) and request
for register of public offer of GDSs (Global Depositary Shares,
each one representing 5 Units) in the United States of America,
before the Securities and Exchange Commission - SEC.

2. To suspend, as per Article 10, line "g", item "I" of the
Company's By-laws, the cancellation of Units as from this date
until August 29, 2005.

CONTACT: Unibanco - Uniao de Bancos Brasileiros S.A.
         Avenida Eusebio Matoso 891
         Sao Paulo, 05423-901
         Brazil
         URL: http://www.unibanco.com.br
         Phone: 55-3789-8000


VASP: Seeks Bankruptcy Court Protection Under New Law
-----------------------------------------------------
Cash-strapped airline Viacao Aerea de Sao Paulo (VASP) filed
with a Sao Paulo court Friday a petition to undergo bankruptcy
protection under Brazil's new bankruptcy law, reports AE Brazil.

Consequently, more than 50 bankruptcy filings against VASP have
been immediately suspended.

A judge could decide on the filing as early as this week. If the
filing is approved, VASP will be given 60 days to submit a
reorganization plan.

VASP stopped operating in January after being plagued for years
by debt, labor problems and an aging fleet. The airline owes
some BRL2 billion to Brazil's government alone.



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

ECOPETROL: Postpones Tibu Prequalification Deadline to July 6
-------------------------------------------------------------
Companies interested in partnering with state oil company
Ecopetrol on the development of the Tibu field in Santander
department have until July 6 to submit pre-qualification
documents. Business News Americas reports that this is the
second time the deadline has been extended. Originally, the
deadline was May 30, which was extended to June 30. Ecopetrol
will invite qualified companies to bid in a closed tender.
Investment is estimated at US$150 million - 200 million.



===================
C O S T A   R I C A
===================

* COSTA RICA: Ratings Reflect Improved Fiscal Management
------------------------------------------------------
Credit Ratings

Local currency: BB+/Stable/B
Foreign currency: BB/Stable/B

Major Rating Factors

Strengths:
- Long-standing political stability, with relatively strong
institutions and more of a general respect for the rule of law
than found in peer credits.
- A highly diversified economy, with a per capita GDP of
US$4,379, which is almost twice that of the 'BB' median.

Weaknesses:
- A large, unsupervised offshore banking sector and a high
level of dollar lending.
- Monetary policy that is constrained by quasi-fiscal losses at
the central bank, a crawling peg exchange-rate regime, and a
high level of dollarization.
- Poor external liquidity.

Rationale
The ratings on the Republic of Costa Rica reflect improved
fiscal management over the last year and the likely passage of
fiscal reform that is expected to yield up to 2% of GDP in 2006
in further revenue, bringing the overall general government
deficit to around 2.5%. The general government deficit was 3.5%
in 2004, down from 4.3% in 2003 and over 5% in 2002-despite an
end to temporary tax measures implemented in 2003-as the
government cut expenditure and improved tax collection. As
noted, there is a high probability that fiscal reform, which has
been under debate for well over two years, will pass by August
2005 under a new fast-track approach that shortens debate in
Congress and allows for a speedier vote. Most of the major
parties approve of the reform; additionally, major social
security reform that will improve the overall health of the
system was approved recently. Over time, monthly pension
contributions will rise, the number of contributions required to
receive a pension will lengthen, and the number of months used
to calculate a pension will increase. The fiscal consolidation
efforts now underway will likely reduce the monetary and
external vulnerabilities that have built up over the last three
years.

Despite the improved outlook, Costa Rica's vulnerabilities
include a large and less-strictly supervised offshore banking
sector that takes deposits mainly from residents and relends the
funds onshore, largely in U.S. dollars (nearly 60% of local
lending is in U.S. dollars). A high degree of dollarization and
a crawling peg exchange-rate regime constrain monetary policy. A
change of monetary regime under stress would heighten the risk
of banking-sector failures and raise the government's contingent
liability. Further efforts to strengthen the country's monetary
and financial regulatory framework could improve the sovereign's
creditworthiness.

The ratings on Costa Rica are supported by the country's long-
standing political stability, with relatively stronger
institutions and general respect for the rule of law than in
peer credits. The political stability and high levels of
education have helped Costa Rica attract significant amounts of
foreign direct investment (FDI) and allowed the country to
become much more highly diversified, with a large increase in
tourism and export revenue over the past decade. Current account
receipts (CAR) now total nearly 50% of GDP. As a result, the per
capita GDP, at US$4,679 in 2005, is double that of the 'BB'
median.

Outlook

The stable outlook reflects the government's improved fiscal
stance and the likelihood that further measures will reduce the
deficit further, to 2.5% in 2006, However, Costa Rica's external
liquidity and relatively weak monetary stance continue to
constrain its ratings. Improved economic prospects due to
passage of the Central America Free Trade Agreement (CAFTA),
together with further efforts to strengthen the country's
monetary and financial regulatory framework, could lead to
improved creditworthiness.

Primary Credit Analyst: Richard Francis, New York
(1) 212-438-7348; richard_francis@standardandpoors.com



=================
G U A T E M A L A
=================

BANCO INDUSTRIAL: Fitch Affirms Ratings
---------------------------------------
Fitch has affirmed Guatemala's Banco Industrial's (BI) ratings
as follows:

--Long-term foreign currency 'BB-' (Rating Outlook Stable);
--Short-term foreign currency 'B';
--Long-term local currency 'BB-';
--Short-term local currency 'B';
--Individual 'D';
--Support '4'.

BI's ratings reflect its prominent position within Guatemala's
banking system, its strong franchise, and broad and stable
retail deposit base. At the same time, the ratings are
constrained by the operating environment in Guatemala, the high
degree of balance sheet dollarization (partly explained by BI's
trade finance activities), the bank's improving, although still
relatively thin, equity base, moderate profitability, and its
large exposure to the government.

BI has posted an average return on assets (ROA) of 1.1% since
2002, which is relatively low and due largely to the declining
interest rate environment and increased competition. While net
interest revenue accounts for around 70% of total revenue, the
bank has been able to expand non-interest income, aided by
growing processing of remittance fee income and foreign exchange
gains.

At the end of 2004 the main sources of credit risk for BI were
its loan book (45% of total assets), securities portfolio (38%),
and interbank loans (9%). At the end of 2004, the bank's past-
due to total loans ratio and loan loss reserve coverage reached
0.72% and 169% at year-end, respectively. BI has substantial
credit risk in its government securities portfolio (95% made up
of Guatemalan government securities, with the remainder
constituting securities from other regional sovereigns), which
amounts to around 4.4 times (x) equity.

The bank's main market risks are balance sheet dollarization
(44% of assets and 45% of liabilities and equity are in USD) and
maturity mismatches (longer term loans are largely funded by
short-term deposits); the latter risk is mitigated by a stable
retail deposit base, which has benefited from 'flight to
quality' in times of stress.

In recent years, BI's capital base has been augmented through
capital infusions and earnings retention, although dividends
have averaged a high 63% of net income since 2002. The bank's
equity-to-assets ratio reached 7.5% by year-end 2004 (2003:
7.0%). This has to be viewed in light of the high proportion of
nonearning assets in the form of fixed (47% of equity) and
foreclosed assets (2.0%). BI's consolidated risk-weighted
capital ratio was 13.4% at year-end 2004, benefiting from the
high proportion of government securities on its balance sheet,
which are weighted at 10%.

BI is the largest Guatemalan bank, with an asset-market share of
20% as of year-end 2004. Established in 1968, the bank has
primarily focused on serving the corporate sector and high-
income individuals, although it also provides a wide range of
banking services to its broad client base.

The bank is owned by 1,385 Guatemalan shareholders and is an
integral part of Corporacion BI (CBI), a financial group made up
of a total of 10 companies. BI consolidates Westrust Bank (100%
owned by BI, a Bahamian offshore bank operating mostly in
Guatemala), Financiera Industrial (97.5% owned, a finance
company), and Contecnica (98% owned, a credit card issuer).

CONTACT: Gustavo Lopez +1-212-908-0853, New York
         Peter Shaw +1 212-908-0553, New York
         Mauricio Choussy +503-2263-1300, San Salvador
         Raul Castellon +503-2263-1300, San Salvador

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



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

AIR JAMAICA: Mgt. Delivers Bullish Outlook on Airline
-----------------------------------------------------
The interim management of Air Jamaica, led by Chairman Dr. Vin
Lawrence, is confident that it will be able to see a turnaround
in the airline's operations within the next three months, the
Jamaica Gleaner reports.

Officials said that following the Government's takeover of the
airline six months ago, the latter has achieved significant
improvements in some aspects of its restructuring program.

But according to Dr. Lawrence, the recently raised US$200
million loan was "a key element in our capital restructuring and
it will provide the debt service support to help Air Jamaica to
maintain its position as the region's premiere airline."

The Company raised the loan Wednesday by way of a Government-
guaranteed bond through investment bank Bear Stearns. The bond
has a 10-year tenure at a coupon or interest rate of nine and
three eighths, approximately three eighths above the recently
issued Government of Jamaica Eurobond.

Dr. Lawrence said the funds would also be used to refinance
short-term debt, extend the life of the Company's liabilities,
and fund capital expenditures.

CONTACT: AIR JAMAICA
         Corporate Communications
         Tel: 876-922-3460 ext 4060-5
         URL: www.airjamaica.com


AIR JAMAICA: To Give Up Interest in Express
-------------------------------------------
Air Jamaica chairman, Dr. Vin Lawrence, confirmed Thursday that
the airline will relinquish management of Air Jamaica Express in
October, The Jamaica Observer relates.

"We will not be operating Air Jamaica Express after October 14,"
Dr. Lawrence said. "We are in the process of formulating a new
business plan for Air Jamaica Express and an appropriate
announcement will be made," he added.

Air Jamaica Express (formerly Trans-Jamaican Airline) is a
domestic carrier acquired by Gordon "Butch" Stewart's
ATL/Sandals group in 1994, the same time that Stewart led the
AJAG group in the takeover of Air Jamaica.

Air Jamaica was re-nationalized in December 2004 when AJAG gave
up its majority ownership of the loss-making carrier. It soon
became clear that the government and Air Jamaica had no appetite
to assume ownership of Air Jamaica Express and that Stewart's
organization would take full responsibility for the management
of the small carrier.

Under the current arrangement, Air Jamaica Express operates
several flights in the northern Caribbean on behalf of the
national airline, including flights to Haiti, the Dominican
Republic and Bahamas.



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

EMPRESAS ICA: Places MXN800 Mln in Exchange Traded Notes
--------------------------------------------------------
Empresas ICA, S.A. de C.V. (BMV and NYSE: ICA), the largest
engineering, construction, and procurement company in Mexico,
announced Friday the placement of MXN800 million in exchange
traded notes (Certificados Bursatiles) through its subsidiary
Tuneles Concesionados de Acapulco (TUCA). Toll revenues from,
and toll collection rights to the Acapulco Tunnel are being
transferred to a trust, which will issue the notes.

The exchange traded notes, which will be listed on the Mexican
Stock Exchange and have received an investment grade rating of
AA+ (mex) from Fitch Mexico, mature in 17 years, and pay
interest of TIIE + 2.95 percent (i.e., 13.16 percent at the time
of issue). The notes will be amortized semi-annually starting in
2008. The issuer has an option to prepay after nine years.
Interest rate swaps have capped the TIIE rate at a maximum of 13
percent for the first four years. The issuing trust expects to
renew this coverage annually thereafter.

The proceeds from the notes will be used to prepay
MXN205,962,112.04 in Series A Ordinary Participation
Certificates (CPOs) issued by TUCA in 2001 and to repay
MXN65,691,329.39 of debt owed by TUCA to Banco Nacional de Obras
y Servicios Públicos (Banobras), which had been secured by
Series X of the CPOs and all of TUCA's shares, among others.

After payment of transaction costs and funding debt service and
other required trust reserve accounts, a balance of
approximately MXN460 million from the issuance of the notes will
be available for general corporate purposes to support the
Company's growth and its participation in new projects.

ICA was founded in Mexico in 1947. ICA has completed
construction and engineering projects in 21 countries. ICA's
principal business units include civil construction and
industrial construction. Through its subsidiaries, ICA also
develops housing, manages airports, and operates tunnels,
highways, and municipal services under government concession
contracts and/or partial sale of long-term contract rights.

CONTACT:  Empresas ICA, S.A. de C.V.
          Ing. Alonso Quintana
          Tel: (5255) 5272-9991 x3468
          E-mail: alonso.quintana@ica.com.mx

          Lic. Paloma Grediaga
          Tel: (5255) 5272-9991 x3664
          E-mail: paloma.grediaga@ica.com.mx
          URL: http://www.ica.com.mx

          In the United States:
          Zemi Communications
          Daniel Wilson
          Tel: (212) 689-9560
          E-mail: d.b.m.wilson@zemi.com


GRUPO IUSACELL: Seeks Extension for Filing of Annual Report
-----------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) announced
Friday that it has filed with the U.S. Securities and Exchange
Commission a request for an extension of 15 days for the filing
of its Annual Report on Form 20-F, which was due on June 30.
This extension was requested because the Company has not yet
concluded the reconciliation to U.S. GAAP of its financial
statements for the year 2004.

The Company noted that on June 30, 2005, it filed its Spanish-
language annual report with the Mexican National Securities and
Banking Commission as required under Mexican law. That report
included Iusacell's audited consolidated 2004 financial
statements prepared in accordance with Mexican GAAP. This report
is also available on Iusacell's web site
http://www.iusacell.com.mx. Iusacell expects to complete an
English translation of the report promptly and furnish it on
Form 6-K.

Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) (Iusacell)
is a wireless cellular and PCS service provider in Mexico,
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population. Independent of the negotiations towards the
restructuring of its debt, Iusacell reinforces its commitment
with customers, employees and suppliers and guarantees the
highest quality standards in its daily operations, offering more
and better voice communication and data services through state-
of-the-art technology, such as its new 3G network, throughout
all of the regions in which it operates.

CONTACT: Grupo Iusacell, S.A. de C.V.
         Investors
         Jose Luis Riera K.
         Chief Financial Officer
         Phone: 011-52-55-5109-5927
                     or
         J.Victor Ferrer
         Finance Manager
         Phone: 011-52-55-5109-5927
                     or
         E-mail: vferrer@iusacell.com.mx
         URL: http://www.iusacell.com


GRUPO ELEKTRA: BoNY Issues Notification of Termination of GDSs
--------------------------------------------------------------
Grupo Elektra S.A. de C.V. (NYSE: EKT) (BMV: ELEKTRA) (Latibex:
XEKT) ("The Company"), Latin America's leading specialty
retailer, consumer finance and banking and financial services
company, announced that, effective June 30, 2005, The Bank of
New York (BoNY) gave notice of the termination of Grupo
Elektra's GDS program to the holders of Grupo Elektra's Global
Depositary Shares (GDSs). Upon such notice of termination, BoNY
discontinued issuing new GDSs by filing a Post- Effective
Amendment to Form F-6 with the United States Securities and
Exchange Commission.

Additionally, the deposit agreement was amended to reduce to 60
days the period during which holders may exchange GDSs for
common shares traded on the Mexican Stock Exchange (BMV).

As was previously announced, at an Extraordinary Shareholders'
Meeting held on June 1, 2005, 91.23% of Grupo Elektra's
shareholders approved the termination of the GDS program after
an analysis and discussion of the costs and benefits to continue
to be listed in the U.S. capital markets.

Pursuant to the termination of the deposit agreement, the NYSE
is expected to suspend trading of the GDSs in the United States
on or about August 1, 2005. GDS holders will have 60 days to
exchange their GDSs for common shares traded on the BMV. Upon
the expiration of the 60-day period, BoNY will be allowed to
sell the common shares underlying the GDSs that were not
surrendered and distribute the proceeds of such sale to holders.

Grupo Elektra is Latin America's leading specialty retailer,
consumer finance and banking services company. Grupo Elektra
sells retail goods and services through its Elektra, Salinas y
Rocha, Bodega de Remates and Elektricity stores and over the
Internet. The Group operates more than 1,000 stores in Mexico,
Guatemala, Honduras and Peru. Grupo Elektra also sells and
markets its consumer finance, banking and financial products and
services through its more than 1,440 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama. Banking and financial services
include consumer credit, personal loans, money transfers,
extended warranties, savings accounts, term deposits, pension-
fund management and insurance.

CONTACT: Grupo Elektra, S.A. de C.V.
         Esteban Galindez, CFA
         Director of Finance and I.R.
         Grupo Elektra S.A. de C.V.
         Phone: 52 (55) 1720-7819
         Fax: 52 (55) 1720-7822
         E-mail: egalindez@elektra.com.mx
         URL: http://www.grupoelektra.com.mx


GRUPO ELEKTRA: Submits Form 12b-25 for Annual Report Late Filing
----------------------------------------------------------------
Grupo Elektra S.A. de C.V. (NYSE: EKT) (BMV: ELEKTRA) (Latibex:
XEKT) ("The Company"), Latin America's leading specialty
retailer, consumer finance and banking and financial services
company, announced Friday that it has submitted a Form 12b-25 to
the U.S. Securities and Exchange Commission for late filing of
its Annual Report on Form 20-F for the year ended December 31,
2004.

The Company was not able to file its Annual Report on time
because Castillo Miranda y Compania, S.C. is in the process of
performing the procedures necessary to permit it to issue its
independent auditor's report. As was announced in October 2004,
the company's board of directors appointed Castillo Miranda y
Compania, S.C. as the new independent auditing firm for Grupo
Elektra, replacing PriceWaterhouseCoopers.

The Company noted that, on June 30, 2005, it filed its Spanish-
language annual report with the Mexican National Securities and
Banking Commission as required under Mexican law. That report
included Grupo Elektra's audited consolidated 2004 financial
statements prepared in accordance with Mexican GAAP and
certified by Castillo Miranda y Compania, S.C. Grupo Elektra
expects to complete an English translation of that report
promptly and furnish it to the U.S. Securities and Exchange
Commission on Form 6-K. Grupo Elektra cannot reasonably estimate
when it will be in a position to file its Annual Report on Form
20-F for 2004.

Grupo Elektra is Latin America's leading specialty retailer,
consumer finance and banking services company. Grupo Elektra
sells retail goods and services through its Elektra, Salinas y
Rocha, Bodega de Remates and Elektricity stores and over the
Internet.


GRUPO MEXICO: Workers Accuse Asarco of Unfair Labor Practices
-------------------------------------------------------------
About 300 workers at Asarco Inc.'s Hayden smelter voted to walk
off their jobs Saturday, accusing Asarco of carrying out unfair
labor practices and refusing to negotiate in good faith.

According to Terry Bonds, district director of the United
Steelworkers of America, these workers join the 750 striking
employees of Asarco's Ray mine and Hayden mill, who walked out
24 hours earlier.

Workers at the Mission mine at Sahuarita, Silver Bell mine at
Marana, and at the refinery in Amarillo, Texas, were also
considering a strike. In all, the strikes could put about 1,500
workers, represented by several unions, on the picket lines,
Bonds said.

The workers have been working without a contract for a year now.
Copper prices are at a 16-year high, leading Asarco's parent
company, Grupo Mexico, to first-quarter operating profits that
were up 59% from the previous year. But the Company wants a
three-year wage freeze and reductions in pension and medical
benefits, saying the concessions are needed to improve long-term
profitability.

Grupo Mexico, the world's third-largest copper producer, bought
Asarco in 1999. The parent company also owns copper mines in
Sonora and owns Southern Peru Copper (PCU), which was split from
Asarco in 2003.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Web site: http://www.gmexico.com


TV AZTECA: Unable to File Annual Report on Time
-----------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world announced Friday that it has
submitted a Form 12b-25 to the U.S. Securities and Exchange
Commission for late filing of its Annual Report on its Form 20-
F, for the year ended December 31, 2004.

The company was not able to file its Annual Report on time since
PriceWaterhouseCoopers, TV Azteca's former independent auditors,
has not given consent to incorporate historical audited
financials under US GAAP in the Report, resulting in delays in
the preparation of the Annual Report on Form 20-F for 2004. As
was announced last November, the company's board of directors
appointed Salles, Sainz-Grant Thornton, S.C., as the new
independent auditing firm for TV Azteca, replacing
PriceWaterhouseCoopers.

The company noted that, on June 30, 2005, it filed its Spanish-
language annual report with the Mexican National Securities and
Banking Commission as required under Mexican law. That report
included TV Azteca's audited consolidated 2004 financial
statements prepared in accordance with Mexican GAAP and
certified by Salles, Sainz-Grant Thornton, S.C. TV Azteca
expects to complete an English translation of that report
promptly and furnish it to the U.S. Securities and Exchange
Commission on Form 6-K. TV Azteca cannot reasonably estimate
when it will be in a position to file its Annual Report on Form
20-F for 2004.

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT:  TV Azteca, S.A. de C.V.
          Investor Relations:
          Bruno Rangel
          Phond: 52 (55) 1720 9167
          E-mail: jrangelk@tvazteca.com.mx

          Rolando Villarreal
          Phone: 52 (55) 1720 0041
          E-mail: rvillarreal@gruposalinas.com.mx

          Press Relations:
          Tristan Canales
          Phone: 52 (55) 1720 1441
          E-mail: tcanales@gruposalinas.com.mx

          Daniel McCosh
          Phone: 52 (55) 1720 0059
          E-mail: dmccosh@tvazteca.com.mx



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

PDVSA: Ramirez Executes Agreement With Jamaican Counterpart
-----------------------------------------------------------
The Minister of Energy and Petroleum, and President of Petroleos
de Venezuela, S.A. (PDVSA) Rafael Ramirez Carreno, and the
Minister of Commerce, Science and Technology of Jamaica, Phillip
Paulwell signed a Memorandum of Understanding on Wednesday, June
29, 2005.

The instrument executed with Jamaica provides for a Venezuelan
interest in the island's State oil operator the Petroleum
Company of Jamaica Limited (PETCOM), and the retrofit of
Petrojam Refinery located in Marcus Garvey Drive, in the city of
Kingston.

Also, PDVSA's operating companies for Venezuela, and
PCJ/Petrojam for Jamaica are authorized to fulfill the
corresponding commitments of each party.

PCJ/Petrojam will continue actions to complete and implement the
project basic engineering design, and PDVSA will provide
technical assistance in the project assessment.

Furthermore, the agreement provides that Petrojam and PDVSA
should jointly perform testing operations with Leona 22 crude,
at the maximum throughput possible, in order to assess the
performance of the plant in processing this type of raw
material.

This will allow to identify eventual constrains in future plant
operations, and collect enough process data to support the units
basic design.

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



                            ***********


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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