TCRLA_Public/050706.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, July 6, 2005, Vol. 6, Issue 132

                            Headlines


A R G E N T I N A

ACCEDA TELEFONICA: Court OKs Creditor's Bankruptcy Request
ALBICA S.R.L.: Seeks Court Approval to Pursue Reorganization
BAMUR S.A.: Debt Payments Halted, Moves to Reorganize
BELLAC S.R.L.: Court Declares Company Bankrupt
COMPANIA BELGA: Court Converts Bankruptcy to Reorganization

FUSAL: Liquidates Assets to Pay Debts
INDUSTRIAS BONART: Court Issues Bankruptcy Decree
JUBAES S.A.: Files for Bankruptcy Protection
MESLAND S.A.: Court Rules Liquidation Required
MEZZANO ADRIATICO: Enters Bankruptcy Following Court Ruling

RIBO PETROL: Debt Payments Halted, Set to Reorganize
SAN EDUARDO: Court Grants Reorganization Plea
SANATORIO EZEIZA: Debt Payments Cease Pending Reorganization
SERVICIOS FUNERARIOS: Official Reports Schedule Set
TELECOM ARGENTINA: Businessman Acquires 8.13% of Nortel

TRANSENER: Ratings Raised on Debt Restructuring Completion
TRANSPORTES DEL TEJAR: Court Approves Concurso Motion


B R A Z I L

CAMARGO CORREA: S&P Assigns Local, Foreign Currency Ratings
CSN: S&P Rates $150M Perpetual Notes 'BB-', Affirms Ratings
ELETROPAULO METROPOLITANA: Issues Rate Adjustment Tables


C O L O M B I A

EMCALI: Revising Tariff Schedule, Billing Parameters Next Year


E L   S A L V A D O R

BANCO AMERICANO: Ernst & Young to Evaluate Offers


M E X I C O

CINTRA: Sale of Two Airlines Expected by Yearend
GRUPO DESC: Public Note Exchange Offering Initiated
GRUPO MEXICO: Comments on Subsidiary Asarco Situation


P E R U

SIDERPERU: Creditors Postpone Debt Payment Deadlines
* PERU: Government OKs New Bonds to Fund Paris Club Debt Buyback


U R U G U A Y

PLUNA: Severs Ties With Brazil's VARIG


V E N E Z U E L A

PDVSA: To Provide 185,700b/d to 14 Caribbean Nations
PDVSA: Earmarks $600M for Puerto La Cruz Refinery Upgrade


     - - - - - - - - - -

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

ACCEDA TELEFONICA: Court OKs Creditor's Bankruptcy Request
----------------------------------------------------------
Acceda Telefonica Celular S.A. entered bankruptcy after Court
No. 8 of Buenos Aires' civil and commercial tribunal ruled on a
bankruptcy motion filed by Ms. Viviana Luduena, reports La
Nacion. The Company's failure to pay US$2,600 in debt prompted
the creditor to file the petition.

Working with the city's Clerk No. 16, the court assigned Mr.
Osvaldo Luis Weiss as trustee for the bankruptcy process. The
trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claim to the
trustee before Sep. 30, 2005.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the claims verification process.

CONTACT: Acceda Telefonica Celular S.A.
         Avenida Alicia Moreau de Justo 1720
         Buenos Aires

         Mr. Osvaldo Luis Weiss, Trustee
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires


ALBICA S.R.L.: Seeks Court Approval to Pursue Reorganization
------------------------------------------------------------
Court No. 8 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Albica S.R.L. Argentine daily La Nacion reports that
the Company filed the request after defaulting on its debt
payments since Dec. 28, 2004.

If granted by the court, the process will allow Albica S.R.L. to
negotiate a settlement with its creditors in order to avoid a
straight liquidation. Clerk No. 16 assists the court on this
case.

CONTACT: Albica S.R.L.
         Laprida 1737
         Buenos Aires


BAMUR S.A.: Debt Payments Halted, Moves to Reorganize
-----------------------------------------------------
Court No. 15 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Bamur S.A., says La Nacion.

The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments.

The city's Clerk No. 29 assists the court on this case.

CONTACT: Bamur S.A.
         Avda Corrientes 1327
         Buenos Aires


BELLAC S.R.L.: Court Declares Company Bankrupt
----------------------------------------------
Bellac S.R.L. enters bankruptcy protection after Court No. 11 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 22, 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 Alberto Javier Samsolo
as trustee. Mr. Samsolo will be verifying creditors' proofs of
claim until the end of the verification phase on Sep. 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. 17, 2005 followed by the general report, which is due on
Nov. 28, 2005.

CONTACT: Mr. Alberto Javier Samsolo, Trustee
         Paraguay 1225
         Buenos Aires


COMPANIA BELGA: Court Converts Bankruptcy to Reorganization
-----------------------------------------------------------
Compania Belga de Aceros S.A. will proceed with reorganization
after a Buenos Aires' civil and commercial Court No. 13
converted the Company's ongoing bankruptcy case into a "concurso
preventivo", states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents mandatory asset liquidation.

Ms. Flora Marcela Pazos, the court-appointed trustee, will
verify creditors' proofs of claim until Sep. 13, 2005. Creditors
with unverified claims cannot participate in the Company's
settlement plan.

The trustee will prepare individual reports based on the
verified claims and present it to court on Oct. 27, 2005. She
will also submit individual reports on Dec. 9, 2005.

The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on June
13, 2006.

Clerk No. 25 assists the court with the proceedings.

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


FUSAL: Liquidates Assets to Pay Debts
-------------------------------------
Buenos Aires-based Fundacion para la Promocion de la Salud
(FUSAL) will begin liquidating its assets following the
pronouncement of the city's civil and commercial Court No. 16
that the Company is bankrupt, reports Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Estudio Cres. Jorge Alberto Guaita y
Jacobo Suez. The trustee will verify creditors' proofs of claim
until Sep. 14, 2005. The validated claims will be presented in
court as individual reports on Oct. 27, 2005.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on Dec. 9, 2005.

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

CONTACT: Estudio Cres. Jorge Alberto Guaita y Jacobo Suez
         (Trustee)
         Carlos Calvo 839
         Buenos Aires


INDUSTRIAS BONART: Court Issues Bankruptcy Decree
-------------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal
declared local plastic company Industrias Bonart Sacif
"Quiebra", relates La Nacion. The court approved the bankruptcy
petition filed by Union de Obreros y Empleados de Plasticos,
which claims debts amounting to $15,608.86.

The Company will undergo the bankruptcy process with Ms. Elina
Alicia Victorero as trustee. Creditors are required to present
proofs of their claim to Ms. Victorero for verification before
Sep. 5, 2005. Creditors who fail to submit the required
documents by the said date will not qualify for any post-
liquidation distributions.

Clerk No. 10 assists the court on the case.

CONTACT: Industrias Bonart Sacif
         Bonorino 1644
         Buenos Aires

         Ms. Elina Alicia Victorero, Trustee
         Migueletes 1806
         Buenos Aires


JUBAES S.A.: Files for Bankruptcy Protection
--------------------------------------------
Jubaes S.A., a company operating in Buenos Aires, has petitioned
for bankruptcy after failing to pay its liabilities, Infobae
reports. The bankruptcy petition, once approved by the court,
will allow the Company to liquidate its assets to pay its
creditors. The case is pending before Court No. 18. Clerk No. 35
assists on this case.

CONTACT: Jubaes S.A.
         Francisco Beiro 4294
         Buenos Aires


MESLAND S.A.: Court Rules Liquidation Required
----------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Mesland 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 Miguel Luis Rudnitzky,
the court-appointed trustee.

Mr. Rudnitzky will verify creditors' proofs of claim until July
28, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on Sep. 9, 2005. The
submission of the general report follows on Oct. 24, 2005.

Clerk No. 42 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT: Mesland S.A.
         Asuncion 2817
         Buenos Aires

         Mr. Miguel Luis Rudnitzky
         Uruguay 328
         Buenos Aires


MEZZANO ADRIATICO: Enters Bankruptcy Following Court Ruling
-----------------------------------------------------------
Buenos Aires' civil and commercial Court No. 3 declared Mezzano
Adriatico S.A. bankrupt after the Company defaulted on its debt
payments. The bankruptcy order effectively places the Company's
affairs as well as its assets under the control of court-
appointed trustee, Mariana Nadales.

As the trustee, Ms. Nadales is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Aug. 26, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Oct. 7, 2005. A general report will
also be submitted on Nov. 21, 2005.

Infobae reports that Clerk No. 6 assists the court on this case,
which will end with the disposal of the Company's assets in
favor of its creditors.

CONTACT: Mezzano Adriatico S.A.
         Parana 224
         Buenos Aires

         Ms. Mariana Nadales, Trustee
         Hipolito Yrigoyen 1349
         Buenos Aires


RIBO PETROL: Debt Payments Halted, Set to Reorganize
----------------------------------------------------
Court No. 13 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Ribo Petrol S.A., says La Nacion.

The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments.

The city's Clerk No. 26 assists the court on this case.

CONTACT: Ribo Petrol S.A.
         Avenida Cordoba 669
         Buenos Aires


SAN EDUARDO: Court Grants Reorganization Plea
---------------------------------------------
San Eduardo S.R.L., a company operating in Mendoza, begins
reorganization proceedings after the city's civil and commercial
Court No. 1 granted its petition for "concurso preventivo".
During the reorganization, the Company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Valeria Lamattina, the
court-appointed trustee.

Creditors with claims against San Eduardo S.R.L. must present
proofs of the company's indebtedness to Ms. Lamattina before
Aug. 4, 2005. These claims will constitute the individual
reports to be submitted in court on Sep. 15, 2005. The court
also requires the trustee to present an audit of the Company's
accounting and business records through a general report due on
Oct. 27, 2005.

On May 3 next year, the company's creditors will vote on the
settlement proposal prepared by the company.

CONTACT: San Eduardo S.R.L.
         General Paz 135
         Mendoza

         Ms. Valeria Lamattina, Trustee
         Avda Espana 509
         Mendoza


SANATORIO EZEIZA: Debt Payments Cease Pending Reorganization
------------------------------------------------------------
Buenos Aires' civil and commercial Court No. 2 is reviewing the
merits of Sanatorio Ezeiza S.A. petition to reorganize. La
Nacion recalls that the Company filed the petition following
cessation of debt payments on Oct. 14, 2004. Reorganization will
allow Sanatorio Ezeiza S.A. to avoid bankruptcy by negotiating a
settlement with its creditors.

Clerk No. 4 is assisting the court on the Company's case.

CONTACT: Sanatorio Ezeiza S.A.
         Pavon 1402
         Buenos Aires


SERVICIOS FUNERARIOS: Official Reports Schedule Set
---------------------------------------------------
Guido Maria Salvadori, the trustee assigned to supervise the
liquidation of Servicios Funerarios S.A., will cease the
authentication of creditors' claims on Aug. 5, 2005.

Out of the authenticated claims, Mr. Salvadori will prepare
individual reports to be submitted to court. A general report of
the case will follow.

Infobae reports that Court No. 6 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 12 assists the court with the proceedings.

CONTACT: Servicios Funerarios S.A.
         Avda Belgrano 552
         Buenos Aires

         Mr. Guido Maria Salvadori, Trustee
         Junin 55
         Buenos Aires


TELECOM ARGENTINA: Businessman Acquires 8.13% of Nortel
-------------------------------------------------------
Mr. Dario Werthein, a member of a prominent Argentine family,
has acquired an 8.13% stake in Nortel Inversora SA, the holding
company of Telecom Argentina, says Dow Jones Newswires. In a
statement filed to the local stock exchange Monday, Werthein
said he received 639,648 shares of Nortel Inversora SA (NTL)
from his father, Leo Werthein, who died several weeks ago.

Nortel Inversora controls 54.7% of Telecom Argentina. The
Wertheins run W de Argentina, an investment group that bought
France Telecom's (FTE) 48% stake in Sofora Telecommunicaciones
SA in late 2003. Sofora controls 68% of Nortel Inversora's total
shares. Telecom Italia (TI) owns the remaining stake in Sofora.

Several analysts see the Werthein investment fund as a seat-
warmer that will later sell its Telecom Argentina holding.

CONTACT:  Telecom Argentina S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Web Site: http://www.telecom.com.ar


TRANSENER: Ratings Raised on Debt Restructuring Completion
----------------------------------------------------------
Standard & Poor's Ratings Services raised its foreign and local
currency corporate credit ratings on Argentina's largest
electricity transmitter, Compania de Transporte de Energia
Electrica en Alta Tension TRANSENER S.A. (Transener), to 'CCC+'
from 'D' after the completion of its debt restructuring process.
The outlook is stable.

At the same time, Standard & Poor's assigned its 'CCC+' rating
to the new US$59.3 million amortizing par listed notes (Series
6) due December 2016 and US$178.6 million amortizing discount
listed notes (Series 7) due December 2015. These notes were
issued by the company on June 30, 2005, as part of its debt-
restructuring process. Standard & Poor's also withdrew its 'D'
ratings on Transener's US$100 million fixed-rate notes series A
due 2003 and US$150 million series B fixed-rate notes due 2008.

The ratings on Transener reflect the company's weak business and
financial profile, which derive from the high political and
regulatory risk in Argentina and the company's weak financial
ratios and very limited financial flexibility. In contrast, the
ratings also incorporate Transener's strong competitive position
and efficient operations.

The completion of the debt restructuring process on June 30,
2005, reduced Transener's total debt by about 50% to about
US$285 million and smoothed its debt maturity profile, providing
some relief to the company's cash flow. Weak cash flow when
compared with the company's new debt levels (pro-forma total
debt to EBITDA of about 7x without considering any tariff
increase) and high foreign-exchange risk deriving from its
mostly peso-denominated revenues and U.S. dollar-denominated
debt, however, still represent significant challenges for
Transener. These challenges will be especially acute if tariff
adjustments are delayed or there are significant exchange rate
or inflation movements.

Transener also continues to face high regulatory uncertainty
related to the still-pending renegotiation of its concession
contract. In February 2005, the company and its subsidiary
Transba S.A. signed a preliminary agreement with UNIREN, the
entity created by the government to renegotiate the concessions
for public service companies. These agreements incorporate
tariff increases of 31% and 25%, respectively, a tariff-
adjustment mechanism, mandatory investments, and service-quality
targets for a transition period until February 2006, when the
concession contracts should be fully renegotiated. The company's
long-term credit quality, however, will depend on the final
terms and conditions of the renegotiation of the concession
contracts.

"We expect Transener to be able to meet its financial
obligations during 2005 and 2006 if exchange rates and inflation
remain stable. Current ratings do not incorporate a potential
tariff adjustment resulting from the preliminary agreement
between Transener and UNIREN, owing to the uncertainties
regarding the timeframe of the approval," said Standard & Poor's
credit analyst Sergio Fuentes. "Ratings would benefit from
definitions in the tariff and greater certainty about the new
terms and conditions under which the concession contracts will
be finally renegotiated. Ratings could be lowered, however, if
Transener's financial performance is weaker than projected or
there is no significant progress with regard to tariffs and the
concession contracts by mid 2006."

Primary Credit Analyst: Sergio Fuentes, Buenos Aires (54) 114-
891-2131; sergio_fuentes@standardandpoors.com

Secondary Credit Analyst: Mariano Ingaramo, Buenos Aires (54)
114-891-2124; mariano_ingaramo@standardandpoors.com


TRANSPORTES DEL TEJAR: Court Approves Concurso Motion
-----------------------------------------------------
Court No. 22 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Transportes del
Tejar S.A., according to a report from Argentine daily Infobae.

Estudio Auzmendi - Palma, the court-appointed trustee, will
verify claims submitted by the Company's creditor's until Sep.
1, 2005. After verification period, the trustee will submit in
court the individual reports on Oct. 18, 2005 and the general
report on Nov. 30, 2005.

The informative assembly will be held on May 2, 2006. Creditors
will vote to ratify the completed settlement plan during the
official meeting. The city's Clerk No. 43 assists the court on
the case.

CONTACT: Transportes del Tejar S.A.
         Doctor Enrique Finochietto 1305
         Buenos Aires

         Estudio Auzmendi - Palma, Trustee
         Jose Evaristo Uriburu 1632
         Buenos Aires



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

CAMARGO CORREA: S&P Assigns Local, Foreign Currency Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' local-
currency and its 'BB-' foreign-currency corporate credit ratings
to Camargo Correa Cimentos S.A. (CCC), a Brazilian cement
producer owned by Camargo Correa S.A. (CCSA). The outlook is
stable.

The forthcoming $150 million issuance of senior unsecured notes
due July 2015 by Caue Finance Ltd., fully, unconditionally, and
irrevocably guaranteed by CCC, was also assigned a 'BB-' rating.

"The local currency rating on CCC reflects the company's
exposure to the swings in cement demand in Brazil, its relative
small size in a competitive industry where larger national and
international players also participate, and potential risks
deriving from its expansion strategy," said Standard & Poor's
credit analyst Juliana Gallo. "Partially offsetting these risks
are the favorable location of CCC's plants in Southeast Brazil,
a competitive cost position in cement production and
distribution, traditionally stable margins, and a moderate
financial policy." The acquisition of the holding company that
controls Loma Negra C.I.A.S.A. (Loma Negra) in Argentina
increases geographic diversity but also adds some stronger
volatility to CCC's business portfolio.

CCC is a wholly owned subsidiary of CCSA, the holding company
under which Camargo Correa Group manages all of its business
segments, including cement, engineering and construction,
textile and footwear, energy and concessions, and other smaller
operations.

The stable outlook on CCC's local currency rating reflects our
expectation that the company's financial profile will remain
conservative despite programmed capital expenditures and
potential acquisitions in the near future. At present, the
company counts on substantial liquidity and low levels of
indebtedness to fund these expenditures. Parental support is
also an integral part of the analysis, and we believe that CCC
will not only remain one of the core and most important
operations for the Camargo Correa Group, but that it will also
count on financial support to finance acquisitions. Therefore, a
negative action on the ratings and outlook may come from an
increase in leverage and deterioration of credit measures, under
a scenario of relaxed financial policy targets for the company
or the whole group. A positive action on the ratings would
depend on structural and permanent improvements in Camargo
Correa Group's financial and business profiles, surpassing
scale, market, and synergy gains deriving from its current
growth strategy already under implementation (which includes the
improvement in the business fundamentals not only for its cement
operation but also for its textile and footwear divisions). The
stable outlook on the foreign currency rating reflects that of
the sovereign foreign currency rating on the Federative Republic
of Brazil.

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

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


CSN: S&P Rates $150M Perpetual Notes 'BB-', Affirms Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long-term 'BB'
local-currency and 'BB-' foreign-currency corporate credit
ratings on Brazil-based integrated carbon flat-steel maker
Companhia Sider£rgica Nacional (CSN), following the announcement
of a forthcoming $150 million notes issue by a group subsidiary.
The outlook remains stable.

At the same time, Standard & Poor's assigned its 'BB-' senior
unsecured long-term rating to the forthcoming $150 million
guaranteed perpetual notes to be issued by related entity CSN
Islands X Corp. The notes are unconditionally and irrevocably
guaranteed by CSN.

The new perpetual bond issuance by CSN Islands X is guaranteed
by CSN and this guarantee ranks as a general, unsecured, and
unsubordinated obligation of CSN. The bond indenture will allow
for early redemption, but only at the company's option on any
interest payment date in or after July 2010. The net proceeds
will be used for CSN's general corporate purposes, including
repayment of short-term debt.

"The 'BB' local-currency rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position," said Standard & Poor's credit
analyst Reginaldo Takara. "These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification."

The stable outlook on CSN's local-currency corporate credit
rating reflects our expectations that CSN will manage to
preserve strong liquidity in the future thanks to its robust
cash generation and despite the already announced capital
commitments. The outlook also assumes that CSN will be able to
maintain sound operating results through the steel cycle thanks
to its favorable cost position and access to steel export
markets.

The rating could come under downward pressure if a continuing
increase of gross debt leads to financial metrics that are not
consistent with the rating category. Acquisitions or further
capital commitments that could potentially hurt the company's
current liquidity condition or add financial leverage are not
assumed and could equally lead to a negative revision of the
ratings or a negative outlook.

On the other hand, strengthening results to levels not factored
in or a more conservative financial stance (essentially deriving
from lower total gross debt balances and lower exposure to
short-term debt) could lead to a positive revision of the
ratings or outlook in the medium term. However, this scenario is
seen as unlikely considering the company's significant capital
and dividend commitments already scheduled for the near future.

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

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


ELETROPAULO METROPOLITANA: Issues Rate Adjustment Tables
--------------------------------------------------------
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.,
pursuant to CVM Instruction No. 358, of January 3, 2002,
notifies the following:

On July 1st, 2005, Aneel authorized an average tariff
readjustment of 2.12% for Eletropaulo, which will be applied to
its tariff as from July 4, 2005.

Due to the reduction in subsidies, high voltage consumers (large
commercial and industrial consumers) will have adjustments
higher than those applied to low voltage customers, according to
the table below:

Consumption Class       Index
Low Voltage             -7.80%
High Voltage
A2(88 to 138 kV)        10.87%
A3a(34,5kV)             -0.93%
A4(2,3 to 25kV)         2.74%

The Eletropaulo adjustment authorized by Aneel on July 1st, 2005
comprises items as follows:

Parcel A

The 3.83%negative variation refers to:

i) Positive variation of the exchange rate in June 2004
(R$3.1075/US$) and June 2005 (R$2.4562/US$), which has an effect
on the purchase of energy from Itaipu;

ii) In the first half of 2005 the company purchased energy at
tariffs lower than the average energy purchase tariffs ratified
by Aneel in its latest tariff adjustment. That difference will
be reimbursed as from this tariff readjustment by way of the
Energy CVA;

iii) The connection charges were reviewed and were reduced
pursuant to a resolution ratified by Aneel and published on July
1st, 2005 and sets forth the revenue allowance for transmission
companies.

CVA

The CVA comprises three items as follows:

iv) Remaining 50% of the CVA for the period 2002 - 2003 that was
deferred by way of Inter-ministry Administrative Ruling # 116,
of 04/04/2003 for a 24-month period as from July 2004. This item
corresponds to a 4.33% increase in our tariff adjustment.

v) Negative CVA of 0.27%, which can be explained by (a) the
variation of the exchange rate for payments for Itaipu energy
and (b) negative energy CVA basically arising from the
difference between the energy price obtained at the first energy
auction (R$ 57.51/MWh) and the average energy purchase tariff
granted by the 2004 readjustment.

vi) It refers to the CVA difference of the 2003-2004 period not
recovered on the billing of Eletropaulo in the past 12 months.
This item corresponds to a 0.69% increase in our tariff
adjustment.

Parcel B

The IGP-M for the period was 7.12% and the recalculated X-Factor
was 2.43%, resulting in a 4.69% adjustment index to Parcela B.
This adjustment to Parcela B resulted in a 1.34% increase in the
tariff index.

The X-Factor of 2.43% was reduced approximately by 2 base
points, when compared to the X-Factor in force until the date.

Conclusion of the 2003 tariff review process

Apart from the annual tariff adjustment process, was concluded
the 2003 tariff review process, which resulted in a positive
increase in the 10.95% index authorized in 2003 to 11.65%; that
difference accounting for 1.49% of the amount of increase set
forth for July 2005.

That positive development can be explained by the fact that
Eletropaulo is entitled to an additional R$ 42- million
remuneration to that permitted in the 2003 tariff review, as
shown on the table below.

Item - R$ 000.000                 Previous    Current
Variation
Basis of the net remuneration     R$5,242     R$4,771
Remuneration rate                 17.07%      17.07%,
Rmineration                       R$895       R$814      (R$81)
Gross basis                       R$8,275     R$9,885
Depreciation rate                 3.95%       4.31%
Depreciation                      R$327       R$426       R$99
Additional O & M costs            -           R$24        R$24
TOTAL                                                     R$42

Pis/Cofins

The 4.28% negative remuneration refers to the exclusion of
Pis/Cofins from the tariff adjustment formula. However, this tax
will be separately levied on the energy account, in compliance
with rules to be set forth by Aneel.

Recovery of Pis/Cofins from 2002 through 2005

The company will pass through to the tariff the liabilities
incurred on the basis of the ratio increases for those taxes in
2002 (Pis) and 2004 (Cofins), which were levied both on the
items of Parcela A and Parcela B. This pass-through represented
a 0.56% and a 1.87% increase in Parcela A and Parcela B,
respectively.

Pass-through of the Variation of Other Costs

The tariff pass-through contemplated refers mainly to:

The recovery of discounts to TUSD - Res. 77/2004
Financial adjustments to the costs of CUSD
Expenses with the company who carried out the assessment of the
remuneration basis.

Finally, the main components used in the calculation of the
tariff readjustment were as follows:

PTAX                2,4562
IGPM Variation       7,12%
X Factor             2,43%
((IGP-M)-X)        4,6885%

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



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

EMCALI: Revising Tariff Schedule, Billing Parameters Next Year
--------------------------------------------------------------
Cali's multi-utility Emcali will have a new tariff scheme
beginning 2006 following an order by Telecoms regulator Comision
de Regulacion de Telecomunicaciones (CRT), reports Business News
Americas. According to the new plan, Emcali will charge
telephony calls on a per-minute basis instead of using three-
minute pulses.

The Company is also expected to implement new telephony plans
for low-income segments, which should not include a monthly
fixed charge. Other plans must include fixed charges with a
certain amount of minutes or a mix between fixed and variable
charges.

CRT still needs to determine the maximum tariffs according to
the operator's costs. Emcali provides public services, including
waterworks, telecommunications and electric power.



=====================
E L   S A L V A D O R
=====================

BANCO AMERICANO: Ernst & Young to Evaluate Offers
-------------------------------------------------
Niche bank Banco Americano hired Ernst & Young to evaluate the
acquisition and strategic investment offers presented by seven
Central American and international financial institutions.
Business News Americas suggests Ernst & Young will make a
recommendation based on its evaluation.

"I hope that during July we reach a decision as we have various
offers on the table and we still have to negotiate the exact
numbers," the bank's chairman Ronald Lacayo was quoted as
saying.

The bank ended the first quarter with US$84.0 million in assets
and US$14.0 million in equity. Earnings grew 63% to US$187,110.

Nevertheless, Fitch Ratings cut Banco Americano's national scale
long-term ratings to B- from B in June, citing pressure on the
bank's balance sheet due to its shallow funding base and the
significant loss of deposits during the first quarter.



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

CINTRA: Sale of Two Airlines Expected by Yearend
----------------------------------------------------------
The country's two biggest airlines, AeroMexico and Mexicana,
could be under new ownership by the end of this year, in sales
that could yield more than $1 billion, according to an FT.com
report.

State-owned Cintra earlier said that it would offer a stake of
51% to 100% in each airline group and, if necessary, make a
public share offering for any remaining capital, under a plan
approved by the board but still to be presented to shareholders.

"This guarantees that the two groups will be controlled by
Mexican investors. Any foreign investor must join a consortium
with majority national capital" under Mexican law, Cintra said.

Under the sale plan, Aeromexico will be sold with regional
airline Aerolitoral and Mexicana is being packaged with Click, a
new low-cost carrier.

CONTACT: Cintra S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle Mexico
         Phone: (5)448 - 8000
         E-mail: infocintra@cintra.com.mx
         Web site: http://www.cintra.com.mx


GRUPO DESC: Public Note Exchange Offering Initiated
---------------------------------------------------
DESC, S.A. de C.V. (BMV:DESC) announced Friday that it has begun
a public exchange offering of its Udi-denominated Medium Term
Notes, maturing in 2006 and originally issued in 1999, for local
bonds (Certificados Bursatiles).

The local bonds have the following characteristics: 5-year term,
nominal interest rate equivalent to TIIE of 28 days plus a
margin to be defined, "AA-" rating by Standard & Poor's and
Fitch Mexico, a guarantee by Banco Nacional de Comercio Exterior
(Bancomext) of up to 50% of the nominal value, among others. For
further details, please see the prospectus and the corresponding
supplement available via the Mexican Stock Exchange.

This offering is an additional measure that DESC has taken to
reflect the Company's commitment and focus of continually
strengthening its financial structure, translating into an
important improvement in its debt amortization profile, and
substantially lowering maturities for 2006.

DESC, S.A. de C.V. (BMV: DESC) is one of the largest industrial
groups in Mexico, with 2004 sales of approximately US$2 billon
and nearly 14,000 employees, which through its subsidiaries is a
leader in the Automobile Parts, Chemical, Food and Property
sectors.

CONTACT: Grupo DESC
         In Mexico
         Marisol Vazquez-Mellado
         Jorge Padilla
         Phone: (5255) 5261-8044
         E-mail: ir@desc.com.mx

         In the U.S.
         Maria Barona
         Melanie Carpenter
         Phone: 212-406-3690
         E-mail: desc@i-advize.com

         URL: www.desc.com.mx


GRUPO MEXICO: Comments on Subsidiary Asarco Situation
-----------------------------------------------------
Grupo Mexico S.A. de C.V. (GMEXICO) announced that unionized
workers in the majority of the facilities of its independent
subsidiary ASARCO, LLC have been on strike since Saturday, July
2. Notwithstanding this fact, Asarco still maintains production
below ordinary levels with non-unionized employees. The strike
could impact production at Asarco in around 50% of its capacity
and therefore around 100,000 to 125,000 tons of contained copper
might be lost on annualized bases.

Asarco regrets the decision taken by the corresponding unions to
abandon ongoing conversations destined to confirm collective
bargaining agreements in such facilities and hence, assure the
generation and permanence of productive employment.

Asarco is one of the highest cost operating mining companies in
the U.S. and the world, due in a fundamental part to the cost of
labor, thus affecting the competitiveness of the company in the
long run. Decisive workers' support is essential to this end.

Asarco had not fully recuperated from the last copper price
slump, reporting net profits of only $2 million for the first
quarter of 2005, seven times lower than those reached during the
same period of last year, due to higher stripping costs, overall
maintenance, environmental and related costs and pension
benefits. Asarco's management is currently evaluating various
options to ensure the long-term viability of the company,
including asset sales, corporate reorganization and other
pertinent alternatives.

Grupo Mexico expects no impact in its future results, due to the
small or null contribution of Asarco.

Grupo Mexico, the world's third-largest copper producer, bought
Asarco in 1999.

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



=======
P E R U
=======

SIDERPERU: Creditors Postpone Debt Payment Deadlines
----------------------------------------------------
Siderperu, the country's largest steel producer, gained more
time to make payments to creditors under its already rescheduled
corporate bond program, reports Business News Americas. In a
statement to Lima's stock exchange, Siderperu revealed that
creditors have agreed to extend until August 31, 2005, the
payment of expired fixed quotas of the principal amount
contained in an addendum signed December 12, 2003, to the
company's global refinancing agreement (AGR) of April 2002.

Other payments agreed under the addendum, including interest,
have been put back to September 30, 2005, the statement added.

The Company did not provide details of the amounts to be paid.
but according to Business News Americas, the addendum dealt with
debts totaling approximately US$8 million originally programmed
to be paid by September 30, 2004, subsequently postponed to
February 28, 2005.

Siderperu revealed in the statement that it paid US$1.75 million
in debt and US$1.16 million in interest in the April-June 2005
period.

Chimbote-based Siderperu is controlled by local holding company
Sider Corp.


* PERU: Government OKs New Bonds to Fund Paris Club Debt Buyback
----------------------------------------------------------------
President Alejandro Toledo and two ministers signed a document
Friday allowing the placements of up to US$2.03 billion in
sovereign bonds to fund a buyback of debt held with the Paris
Club of nations.

According to Dow Jones Newswires, the debt placements will be
led by JP Morgan Securities Ltd. (JPM) and UBS Securities LLC
(UBS). The debt could be placed in U.S. dollars, in euros or in
the national currency, the sol.

Last month, the Paris Club group of creditor states accepted
Peru's offer for an early repayment of as much as US$2 billion
in debt falling due between August 2005 and December 2009. It
said the prepayment would be made at par and would be offered to
all creditors. Payments will be made on August 15, Paris Club
said.

As of the end of March 2005, Peru's debt with the Paris Club
totaled US$8.13 billion, or about 34% of Peru's total external
public debt.

Paris Club members who are creditors of Peru include Belgium,
France, Canada, Germany, Italy, Japan, the Netherlands, Norway,
Spain, Sweden, Austria, the U.S. and the U.K.

The Paris Club, founded in 1956, comprises 19 nations including
the U.S., the U.K., Switzerland, Sweden, Spain, Russia, Norway,
the Netherlands, Japan, Italy, Ireland, Germany, France,
Finland, Denmark, Canada, Belgium, Australia and Austria.



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

PLUNA: Severs Ties With Brazil's VARIG
--------------------------------------
Uruguay's flagship airline Pluna (Primera Linea Uruguaya de
Navegacion Aerea) is not going to renew its management pact with
Brazilian airline Viacao Aerea Riograndense SA (VARIG), reports
Dow Jones Newswires. VARIG acquired a 49% stake in Pluna during
the June 2004 privatization process and began a management
contract a year after that. However, the venture proved to be
financially disappointing, prompting VARIG to seek the sale of
all or part of interest in Pluna.

Pluna's vice president, Carlos Galceran, revealed that the
Uruguayan government, which also owns 49% of Pluna, is now in
talks with five potential partners that may buy in.

"The possible or future partner of the Uruguayan state would be
someone that is prepared to buy all or part of the shares
currently owned by VARIG," Mr. Galceran said. There is no
deadline for trying to secure a new partner, he added.

The remaining 2% of Pluna is held by Uruguayan businessmen and
brothers Victor and Santiago Mesa.

Weighed down by BRL9.5 billion of debts, VARIG filed for
protection from creditors in a Rio de Janeiro court on June 17.
But Mr. Galceran insists the restructuring process in Brazil
hasn't affected Pluna or its talks with potential new partners,
which include U.K.-based investment group Ashmore and
Venezuela's state-owned airline Conviasa.

"The situation of VARIG in Brazil has not affected us, so far,"
Mr. Galceran said.

But local newspapers have reported that Pluna has posted losses
for eight of the last 10 years, and that it currently has debts
estimated at US$5 million.

Mr. Galceran declined to provide specific figures but admitted
that the current administration, which took office earlier this
year, discovered some "financial difficulties" which they are
now trying to resolve.

"We are in a process of financial rationalization to try to
balance the Company's finances," Mr. Galceran said. Under new
general manager Elina Rodriguez, Pluna is putting together a
cost-cutting program, which includes examining maintenance
contracts with VARIG subsidiary VARIG Engineering and
Maintenance, or VEM.



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

PDVSA: To Provide 185,700b/d to 14 Caribbean Nations
----------------------------------------------------
State oil firm Petroleos de Venezuela (PDVSA) will supply the 14
Caribbean nations with a total of 185,700 barrels a day (b/d) of
oil, Business News Americas reports, citing PDVSA president and
energy and oil minister Rafael Ramirez.

The move is in line with the Petrocaribe accord signed with the
Caribbean heads of state, except Barbados and Trinidad & Tobago,
on June 29 in the Venezuelan resort city of Puerto La Cruz in
Anzoategui state.

PDVSA provides Cuba with 98,000b/d, the Dominican Republic
50.000b/d, Jamaica 14,000b/d and the remaining countries
23,700b/d.

Ramirez said that with Venezuelan oil currently priced at US$40
a barrel, Caribbean countries will be able to fund about 30% of
their purchases for 15 years at a 2% annual interest rate.

If the price exceeds US$50/b, the interest rate drops to 1% a
year and the amount that can be financed goes up to 40% for as
long as 25 years.

If the price hits US$100/b, the Petrocaribe countries will be
able to finance 50% of their oil bills. In all cases a grace
period of two years applies.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: Earmarks $600M for Puerto La Cruz Refinery Upgrade
---------------------------------------------------------
PDVSA revealed a US$600-million planned investment, under which
it will upgrade its Puerto La Cruz refinery in Anzoategui state,
reports Business News Americas. The upgrade will see the
construction of a new thermoelectric generation as well as the
expansion of the plant's services, including providing power to
the nearby resort city of Puerto La Cruz, according to PDVSA
president and energy and oil minister Rafael Ramirez.

The US$600-million investment is also designed to upgrade the
refinery to deep conversion, a process that will increase the
refinery's gasoline output.

The investment brings to a total of US$2.8 billion the amount
PDVSA will spend to upgrade its three refineries in the short
term. The other two are CRP and El Palito.




                            ***********


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

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