TCRLA_Public/050708.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

             Friday, July 8, 2005, Vol. 6, Issue 134

                            Headlines


A R G E N T I N A

AMERICAN FALCON: Court Appoints Trustee for Reorganization
CABLEVISION: Secures Local Court's Endorsement on APE
CRISAN S.A.: Liquidates Assets to Pay Debts
CTI MOVIL: Service Problems Prompt Temporary Selling Injunction
ECOMAD CONSTRUCCIONES: Reorganization Dissolves To Bankruptcy

ESTABLECIMIENTO FIDEERO: Court Deems Bankruptcy Necessary
ESTABLECIMIENTO METALURGICO: Set to Reorganize
MARIAHUE S.A.: Files for Bankruptcy Protection
MATTULICH S.A.I.C.: Court Grants Reorganization Request
MULTIPLAST S.A.: Liquidation Process Initiated

NOVECIENTOS ONCE: Enters Bankruptcy on Court Orders
PETROFULL S.R.L.: Gets Court Approval to Reorganize
PLANET SERVICE: Court Rules Liquidation Required
POLITER S.R.L.: Liquidating Assets to Repay Debts
STORAGE SYSTEMS: Court to Oversee Bankruptcy Process

TELEFONICA DE ARGENTINA: S&P Details Ratings Analysis
TELEFONICA HOLDING: Ratings Reflect on Indirect Stake in TASA
* ARGENTINA: World Bank Approves $25M Loan


B E R M U D A

INTELSAT: Signs New Contract With RR Satellite


B O L I V I A

AGUAS DEL ILLIMANI: Audit Proceeds Despite Departure


B R A Z I L

CSN: Soaring Demand Prompts Possible Bond Issue Expansion
VARIG: Management Reshuffled Amid Debt Restructuring


C H I L E

COEUR D'ALENE: Appoints New Vice President of Investor Relations


C O L O M B I A

ECOPETROL: Reports 20% Boost in Export Revenues in 5 Months


J A M A I C A

AIR JAMAICA: Gallimore Withdraws Charges Against Airline
AIR JAMAICA: Cuts Costs Through In-Flight Meal Service Changes


M E X I C O

CINTRA: Initiates Airlines' Sale Process Process
GRUPO MEXICO: All Asarco Employees Now on Strike
TV AZTECA: Granted More Time to Prepare Arguments Vs. SEC


P E R U

SIDERPERU: Appoints New Heads of Legal Division


     - - - - - - - - - -


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

AMERICAN FALCON: Court Appoints Trustee for Reorganization
----------------------------------------------------------
American Falcon S.A., a company operating in Buenos Aires, is
ready to start its reorganization after Court No. 18 of the
city's civil and commercial tribunal appointed Estudio Fizzani y
Asociados to supervise the proceedings as trustee. Clerk No. 35
assists the court on this case.

An Infobae report states that Estudio Fizzani y Asociados will
verify creditors' claims until Sep. 16, 2005. Afterwards, the
trustee will present these claims as individual reports for
final review by the court on Oct. 31, 2005. The trustee will
also provide the court with a general report pertaining to
American Falcon S.A. reorganization on Dec. 12, 2005. The court
has scheduled the informative assembly on June 13, 2006.

CONTACT: Estudio Fizzani y Asociados, Trustee
         Tte Gral Juan D. Peron 1509
         Buenos Aires


CABLEVISION: Secures Local Court's Endorsement on APE
-----------------------------------------------------
A commercial court has resolved to endorse Cablevision S.A.'s
US$725-million out-of-court debt settlement or APE. Dr. Miguel
F. Bargallo, of the Juzgado Nacional de Primera Instancia en lo
Comercial N° 11, issued the decision after rejecting all formal
objections to the deal, saying there was no "case of fraud or
abuse" in the proceedings.

Cablevision presented its debt restructuring proposal to the
court in December. The company had already held its first
creditor assembly in March 2003 and then, on a judge's order,
held a second vote in November. The Company secured 99.9%
approval from creditors attending the meeting and 98.6% from all
creditors.

It is not yet known when the Company would be able to settle its
debt exchange. The debt restructuring that Cablevision pursued
allows for appeals after the initial court ruling.

Subsidiaries of Texas-based fund Hicks Muse Tate & Furst control
50% of CableVision. The other half is split between Fintech
Media LLC and a group called Vistone Ltd.

CONTACTS:  (Buenos Aires)
           Santiago Pena
           Tel: (5411) 4778-6520
           E-mail: spena@cablevision.com.ar

           Martin Pigretti
           Tel: (5411) 4778-6546
           E-mail: mpigretti@cablevision.com.ar
           URL: www.cablevision.com.ar


CRISAN S.A.: Liquidates Assets to Pay Debts
-------------------------------------------
Crisan S.A. will begin liquidating its assets following the
pronouncement of Buenos' Aires' civil and commercial Court No. 9
that the Company is bankrupt, Infobae reports.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Griselda Isabel Eidelstein. The
trustee will verify creditors' proofs of claim until Sep. 20,
2005. The validated claims will be presented in court as
individual reports on Nov. 1, 2005.

Ms. Eidelstein will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, Dec. 14, 2005.

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

CONTACT: Crisan S.A.
         Avda. Corrientes 1132
         Buenos Aires

         Ms. Griselda Isabel Eidelstein, Trustee
         Lambare 1140
         Buenos Aires


CTI MOVIL: Service Problems Prompt Temporary Selling Injunction
---------------------------------------------------------------
An Argentine court has ordered mobile operator CTI Movil to stop
selling its products in Buenos Aires at least until it solves
service problems, says Business News Americas.

The ruling follows numerous complaints from users saying the
Company does not provide the service as specified in their
contracts. Complaints are related to lack of coverage, deficient
terminals and allegedly poor quality customer support.

Following the court's decision, CTI has 10 days to report on
measures taken to solve these problems.


ECOMAD CONSTRUCCIONES: Reorganization Dissolves To Bankruptcy
-------------------------------------------------------------
The reorganization of Ecomad Construcciones Portuarias
S.A.C.I.F.I. has progressed into bankruptcy. Argentine news
source Infobae relates that Buenos Aires' civil and commercial
Court No. 19 ruled that the Company is "Quiebra Decretada".

The report adds that the court assigned Carlos Daniel Brzezinski
as trustee, who will verify creditors' proofs of claim until
Sep. 6, 2005.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Oct. 19, 2005. A general report on the bankruptcy process is
expected on Nov. 30, 2005.

CONTACT: Ecomad Construcciones Portuarias S.A.C.I.F.I.
         Tacuari 32
         Buenos Aires

         Mr. Carlos Daniel Brzezinski, Trustee
         Lambare 1140
         Buenos Aires


ESTABLECIMIENTO FIDEERO: Court Deems Bankruptcy Necessary
---------------------------------------------------------
Establecimiento Fideero Verbano S.R.L., which was undergoing
reorganization, entered bankruptcy on orders from Buenos Aires'
civil and commercial Court No. 18. Infobae relates that the
court, which is assisted by Clerk No. 35, appointed Mr. Ernesto
Aldo Monti, to be the receiver on the case. Mr. Monti will
conduct the credit verification process "por via incidental."

CONTACT: Mr. Ernesto Aldo Monti, Trustee
         Larrea 785
         Buenos Aires


ESTABLECIMIENTO METALURGICO: Set to Reorganize
----------------------------------------------
Buenos Aires' civil and commercial Court No. 9, with assistance
from Clerk No. 17, issued a resolution opening the
reorganization of Establecimiento Metalurgico Bursztyn S.A. This
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. The reorganization allows the Company to retain
control of its assets subject to certain conditions imposed by
Argentine law and the oversight of the court appointed trustee.

Miguel Angel Troisi will serve as trustee during the course of
the reorganization. He will be validating creditors' proofs of
claim until July 26, 2005. The results of the verification will
be presented in court as individual reports on Sep. 7, 2005. The
trustee is also obligated to give the court a general report of
the case on Oct. 20, 2005. The general report summarizes events
relevant to the reorganization and provides an audit of the
Company's accounting and business records.

Mr. Troisi will present the completed settlement proposal to its
creditors during the informative assembly scheduled on Feb. 22,
2006.

CONTACT: Mr. Miguel Angel Troisi, Trustee
         Cerrito 146
         Buenos Aires


MARIAHUE S.A.: Files for Bankruptcy Protection
----------------------------------------------
Court No. 13 of Buenos Aires' civil and commercial tribunal is
reviewing the bankruptcy petition filed by local company
Mariahue S.A., says Infobae. The report adds that that the
Company filed the petition after defaulting on its debt
payments.

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

CONTACT: Mariahue S.A.
         Florida 835
         Buenos Aires


MATTULICH S.A.I.C.: Court Grants Reorganization Request
-------------------------------------------------------
Mattulich S.A.I.C. successfully petitioned for reorganization
after Court No. 5 of Buenos Aires' civil and commercial tribunal
issued a resolution opening the Company's insolvency
proceedings. Under insolvency protection, the Company will
continue to manage its assets subject to certain conditions
imposed by Argentine law and the oversight of a court-appointed
trustee.

Infobae relates that Elida Alicia Victorero will serve as
trustee during the course of the reorganization. The trustee
will be accepting creditors' proofs of claim for verification
until Aug. 16, 2005.

After verifications, the trustee will prepare the individual
reports and submit it in court on Sep. 28, 2005. She will also
present a general report for court review on Nov. 10, 2005.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly, which will follow after the submission of
the general report.

CONTACT: Ms. Elida Alicia Victorero, Trustee
         Migueletes 1806
         Buenos Aires


MULTIPLAST S.A.: Liquidation Process Initiated
----------------------------------------------
Multiplast S.A. of Buenos Aires will begin liquidating its
assets after Court No. 5 of the city's civil and commercial
tribunal declared the Company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee, Monica Graciela Aquim.

The trustee will review claims forwarded by the Company's
creditors until Sep. 15, 2005. After claims verification, Ms.
Aquim will submit the individual reports for court approval on
Oct. 31, 2005. The general report will follow on Dec. 27, 2005.
Clerk No. 9 assists the court on this case.

CONTACT: Ms. Monica Graciela Aquim, Trustee
         Uruguay 662
         Buenos Aires


NOVECIENTOS ONCE: Enters Bankruptcy on Court Orders
---------------------------------------------------
Buenos Aires' civil and commercial Court No. 24 declared
Novecientos Once 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, Sebastian Barletta.

As the trustee, Mr. Barletta is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Aug. 31, 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. 14, 2005.

Infobae reports that Clerk No. 47 assists the court on this
case, which will end with the disposal of the Company's assets
in favor of its creditors.

CONTACT: Mr. Sebastian Barletta, Trustee
         Avda Norberto de la Riestra 1209
         Buenos Aires


PETROFULL S.R.L.: Gets Court Approval to Reorganize
---------------------------------------------------
Petrofull S.R.L. will begin reorganization following the
approval of its petition by Court No. 7 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.

Juan Carlos Caro will oversee the reorganization proceedings as
the court-appointed trustee. He will verify creditors' claims
until Aug. 18, 2005. The validated claims will be presented in
court as individual reports on Sep. 29, 2005.

Mr. Caro is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on Nov. 11, 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 May 15, 2006.

Clerk No. 14 assists the court on this case.

CONTACT: Petrofull S.R.L.
         Avda Nazca 1330
         Buenos Aires

         Mr. Juan Carlos Caro, Trustee
         Junin 933
         Buenos Aires


PLANET SERVICE: Court Rules Liquidation Required
------------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Planet Service 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 Gustavo Alejandro
Pagliere, the court-appointed trustee.

Mr. Pagliere will verify creditors' proofs of claim until Sep.
13, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on Oct. 25, 2005.
The submission of the general report follows on Dec. 6, 2005.

Clerk No. 18 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT: Planet Service S.A.
         San Martin 60
         Buenos Aires

   Mr. Gustavo Alejandro Pagliere, Trustee
         Tucuman 1424
         Buenos Aires


POLITER S.R.L.: Liquidating Assets to Repay Debts
-------------------------------------------------
Buenos Aires-based Politer S.R.L. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial Court No. 9 that the Company is bankrupt, reports
Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Hugo Ruben Faure. The trustee will
verify creditors' proofs of claim until Sep. 12, 2005. The
validated claims will be presented in court as individual
reports on Oct. 2, 2005.

Mr. Faure 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. 5, 2005.

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

CONTACT: Politer S.R.L.
         Superi 3155
         Buenos Aires

         Mr. Hugo Ruben Faure, Trustee
         Avda Rivadavia 1227
         Buenos Aires


STORAGE SYSTEMS: Court to Oversee Bankruptcy Process
----------------------------------------------------
Storage Systems S.A. enters bankruptcy protection after Court
No. 19 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 38, 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 Carlos Alberto Menendez
as trustee. Mr. Menendez will be verifying creditors' proofs of
claim until the end of the verification phase on July 25, 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 Sep. 6, 2005 followed by the general report, which is due on
Oct. 19, 2005.

CONTACT: Storage Systems S.A.
         Luis Saenz Pena 352
         Buenos Aires

         Mr. Carlos Alberto Menendez, Trustee
         Ventura Bosch 7098
         Buenos Aires


TELEFONICA DE ARGENTINA: S&P Details Ratings Analysis
-----------------------------------------------------

Rationale

The rating on Telefónica de Argentina S.A. (TASA) reflects the
financial and regulatory challenges of operating in the
Argentine environment after the crisis in 2002, which have
weakened TASA's debt-servicing ability (due to the fact that
most of its debt is foreign currency-denominated). Regulatory
uncertainty is still high regarding the contract and tariff
renegotiation, which was mandated by the government in early
2002 but is still pending. In November 2004, the government
extended the ruling of the Emergency Law and the period for
tariff and contracts renegotiation until December 2005, which
could result in additional delays. Nevertheless, potential
tariff adjustments resulting from the renegotiation are not
expected to compensate for the effects of the devaluation of the
peso and pesification and freeze of tariffs. The company's good
market position, efficient operations, and improved financial
performance partially mitigate the negative factors mentioned
above.

Despite the negative regulatory environment, TASA's financial
performance has gradually recovered after the crisis as a result
of the economic stabilization in the country and debt reductions
and cost containment and efficiency measures taken by the
company. Interest coverage and funds from operations-to-total
debt measures for the 12 months ended March 2005 improved to
4.5x and 39.7%, respectively, from 2.9x and 23.6% in 2003. These
improvements should allow the company to weather a certain level
of unfavorable changes in Argentina's macroeconomic environment-
particularly as regards inflation and exchange rates-and still
maintain credit quality commensurate with the current rating
category.

Looking forward, TASA's future cash-flow generation and
financial profile will depend primarily on the result of tariff
renegotiations with the government, the sustained economic
recovery and stability in Argentina, and the company's ability
to contain costs. Margins are expected to decline gradually with
the upward adjustments in wages and other costs (as evidenced in
first-quarter 2005, when EBITDA margin declined to 53.7% from
57.1% in the equal period of 2004). In addition, the important
amortization of mainly intercompany debt improved TASA's debt-
to-capitalization ratio to 55.1% and the debt-to-12-month EBITDA
to 2x as of March 31, 2005 (compared to 62% and 3x,
respectively, in December 2003).

Telefonica S.A. (TESA; A/Negative/A-1) directly and indirectly
owns 98% of TASA's shares. Although TESA provided several loans
in the past, the mentioned factors have somewhat weakened our
expectations of continuing financial support from TESA to the
Argentine operations.

TASA is one of two incumbent telephone companies in Argentina,
formed in 1990 after the privatization of state
telecommunications. Holding approximately 53% of the 8 million
lines in service in Argentina, TASA currently provides basic
telecommunications services (local, national, and international
long distance) throughout the country.

Liquidity

In spite of some access to the local capital markets, TASA's
liquidity remains relatively tight due to the limited long-term
funding flexibility for Argentine companies and weaker
expectations of support from TESA. In addition, cash-flow
generation is still affected by the mismatch of peso flows and
dollar debt burden.

As of March 31, 2005, TASA had approximately $365 million in
short-term debt over a consolidated debt of $1,213 million.
Short-term maturities include intercompany loans for about $100
million, and Argentine pesos (ArP) 498 million of CP due in May
and October 2005 and February 2006 (equivalent to about $170
million).

TASA's internal cash generation and cash holdings (the latter of
about $130 million as of March 31, 2005), are expected to be
devoted to fund capital expenditures, cancel third-party
maturities, and further reduce intercompany debt. A high level
of debt with other group holdings had provided credit support to
TASA since the crisis in 2001. Nevertheless, intercompany debt
is expected to be complete canceled by the end of 2005, from
$864 million as of June 2003, increasing refinancing risk.

In late October 2004 and February 2005, the company issued the
second and third tranches of short-term bonds for an aggregate
amount of ArP450 million (equivalent to about $151 million) due
between October 2005 and February 2007, gradually reducing
foreign currency debt exposure, but also increasing short-term
debt with third parties.

Outlook

The stable outlook reflects expectations that the company's good
competitive position and a relatively stable economic scenario
would allow TASA to consolidate its financial improvements.
Nevertheless, ratings could be revised if tariff inflexibility
persists under a higher than expected inflationary and exchange
rate scenario, government intervention increases, or financial
flexibility deteriorates significantly.

Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-
891-2127; ivana_recalde@standardandpoors.com

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-
891-2125; pablo_lutereau@standardandpoors.com


TELEFONICA HOLDING: Ratings Reflect on Indirect Stake in TASA
-------------------------------------------------------------

Rationale

The ratings on Argentine holding company Telefonica Holding de
Argentina S.A. (THA) are based on its indirect stake in
Telefonica de Argentina S.A. (TASA; of 32.4%), an Argentine-
based integrated telecom incumbent provider that has about a 58%
fixed-line share throughout the country.

The rating on TASA reflects the financial and regulatory
challenges of operating in the Argentine environment after the
crisis in 2002, which have weakened TASA's debt-servicing
ability (due to the fact that most of its debt is foreign
currency-denominated). Regulatory uncertainty is still high
regarding the contract and tariff renegotiation, which was
mandated by the government in early 2002 but is still pending.
In November 2004, the government extended the ruling of the
Emergency Law and the period for tariff and contracts
renegotiation until December 2005, which could result in
additional delays. Nevertheless, potential tariff adjustments
resulting from the renegotiation are not expected to compensate
for the effects of the devaluation of the peso and pesification
and freeze of tariffs. The company's good market position,
efficient operations, and improved financial performance
partially mitigate the negative factors.

In February 2005, Telefonica Internacional S.A. (TISA; a
subsidiary of the Spain's Telefonica S.A.) decided to capitalize
almost all its intercompany loans with THA for up to $687
million. As of March 2005, loans with TISA represented about 99%
of THA's financial debt. Although this transaction will not
represent a cash inflow for THA, it will significantly improve
the company's financial statements and ratios, as net worth
would become positive and financial debt would decline to about
$7 million (corresponding to outstanding notes with third
parties that mature in 2007), from $640 million.

THA's overall financial profile is highly dependent on the
performance of its subsidiaries, as THA is a holding company
whose only significant asset is its stake in COINTEL, through
which it participates in TASA, its main source of funds through
dividends and management fees. Historically, dividends and
management fees were enough to cover selling, general, and
administrative expenses (SG&A) and interest. Nevertheless, since
2002, THA's financial measures were significantly affected by
the devaluation of the Argentine peso (as almost all the
financial debt is dollar denominated, while dividends and fees
are in pesos), the suspension of dividends from COINTEL, and the
reduction of management fee levels since May 2003 (to 4% of
TASA's gross income from 9%). This resulted in weak fixed-charge
coverage, calculated as the ratio of management fees plus
dividends-to-interest (effectively paid) plus SG&A, of 2x in
first-quarter 2005 and 1.1x for fiscal 2004. Paid interest in
first-quarter 2005 amounted to $4 million (out of a total
accrued in that period of $22 million). Financial measures are
expected to improve as a result the interest burden reduction
after the mentioned capitalization of intercompany loans. In
addition, the debt-to-capitalization ratio (which as of December
2004 was 237.8%) will be positively affected by this
capitalization.

Liquidity

THA's liquidity and financial flexibility depend on its parent,
while cash flow ultimately depends on flows from TASA. In spite
of some access to the local capital markets, TASA's liquidity
remains relatively tight due to the limited long-term funding
flexibility for Argentine companies, and weaker expectations of
support from TESA. In addition, cash-flow generation is still
affected by the mismatch of peso flows and dollar debt burden.

Outlook

The stable outlook on THA reflects the close link with TASA's
credit quality. The stable outlook on TASA reflects expectations
that the company's good competitive position and a relatively
stable economic scenario would allow TASA to consolidate its
financial improvements. Nevertheless, ratings could be revised
if tariff inflexibility persists under a higher than expected
inflationary and exchange rate scenario, government intervention
increases, or financial flexibility deteriorates significantly.

Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-
891-2127; ivana_recalde@standardandpoors.com

Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-
891-2125; pablo_lutereau@standardandpoors.com


* ARGENTINA: World Bank Approves $25M Loan
------------------------------------------
The World Bank's Board of Directors approved Tuesday a $25
million loan for Argentina to support the institutional
strengthening of the National Social Security Administration.

"This project supports the Government of Argentina's objective
of strengthening governance by improving the service delivery of
the social security administration through greater efficiency,
transparency and accountability," said Axel van Trotsenburg,
World Bank Country Director for Argentina, Chile, Paraguay and
Uruguay.

The Institutional Strengthening of the National Social Security
Administration Technical Assistance Loan seeks to enhance
service delivery by the National Social Security Administration
(Administracion Nacional de Seguridad Social - ANSES). This will
be done through institutional reengineering, enhance fraud and
error detection, change management, greater internal and
external oversight, institutional strengthening of the Social
Security Secretariat and civil society participation on the
basis of innovative corporate management practices that add
concrete value to ANSES' beneficiaries.

In particular, the project will support the following
objectives:

i) Consolidate and expand selected organizational reforms of
ANSES through business process reengineering, integration and
automation of core processes, functions, and products, and ICT
investments for continuous dynamic change with a view to improve
the efficiency and effectiveness of service-delivery;

ii) Support the institutional strengthening of the Social
Security Secretariat to enhance its policymaking and oversight
functions, strengthen the accountability of ANSES and other
social security institutions, and promote outreach to other
stakeholders;

iii) Enhance access to information and exchange of information,
help fraud and error detection in benefit determination and
liquidation, and promote effective channels for citizen
engagement and oversight, with a view to improve internal and
external transparency and citizen participation; and

iv) Promote change management, innovation, and dissemination of
good management practices to enhance project performance and
sustainability.

"This loan will consolidate the reforms started under the first
phase supported by a previous Bank loan, such as access to
services and fraud and error detection, and   will go beyond
these issues to help create a more dynamic, efficient and
transparent institution on the basis of innovative public sector
management instruments," said Kathrin A. Plangemann, World Bank
Task Manager for the project.

The first ANSES loan helped the institution to undertake
significant institutional reforms that increased its management
capacity. Under this loan, ANSES has made progress in
institution building through the development of an integrating
vision and mission, and the establishment of basic processes and
systems supporting vertical and horizontal integrations. In
addition, it set up an infrastructure to expand access to
services, and started addressing some of its most pressing
problems, such as fraud and error detection.

The $25 million single-currency, fixed spread loan has a
repayment period of 15 years, including six years of grace.

CONTACT: World Bank
         Media Contacts
         Yanina Budkin
         Phone: 4316-9700
         E-mail: ybudkin@worldbank.org

         Alejandra Viveros
         Phone: (202) 473-4306
         E-mail: aviveros@worldbank.org
         URL: http://web.worldbank.org



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B E R M U D A
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INTELSAT: Signs New Contract With RR Satellite
----------------------------------------------
Intelsat announced Thursday that RR Satellite Communications
Limited (RR Sat), an Israeli broadcast service provider, has
selected Intelsat to provide two new content distribution
platforms in the United States and Asia, respectively.

In one of the new contracts, RR Sat has chosen the Intelsat
Americas-5 (IA-5) satellite to distribute Asian, European and
Middle Eastern content via a new direct-to-home (DTH) platform
in the U.S. IA-5 hosts a large international broadcasting
community in the U.S. from its orbital location at 97°W,
presenting RR Sat with the opportunity to penetrate the U.S. DTH
market and expand the number of viewers accessing its content.

In a separate contract, RR Sat has launched a new Pan-Asian
distribution platform via Intelsat on the APR-1 satellite
located at 83°E. The platform on APR-1 will enable broadcasters
and programmers to target cable head-ends across most of Asia,
including India and Australia, using just one satellite.

"Leveraging Intelsat's global satellite fleet allows us to
significantly extend our distribution network around the world
and enter new markets," said Lior Rival, VP of Sales and
Marketing at RR Sat. "We know that we have found the right
partner in Intelsat; they are proactive, efficient and cost-
effective, which will allow us to keep growing our audiences
around the world."

Ramu Potarazu, COO, Intelsat, stated, "Intelsat offers value to
broadcasters by extending the reach of their programming and
providing them cost-effective access to new audiences and
markets - our relationship with RR Sat is a great example of
this. In general, the Intelsat value proposition for businesses
is simple: if you're looking for an effective way to reach new
markets and grow, Intelsat can help."

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

RR Sat is the fastest growing provider of end-to-end
transmission and playout services to the global satellite
broadcasting industry. This includes channel distribution and
backhaul services, SNG services, sports feeds and other
occasional feed services. It also includes production support,
playout centers and other value-added services to provide
customers with complete solution. RR Sat's new focus for 2005 is
VOD, HD, MPEG 4 and Media 9 broadcasting. RR Sat provides global
distribution services via satellite on a 24-hour per day basis
to more than 150 TV channels on 10 digital platforms all over
the world.

CONTACT: Intelsat
         Medial Relations
         Phone: 1 202-944-7500
         E-mail: media.relations@intelsat.com



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

AGUAS DEL ILLIMANI: Audit Proceeds Despite Departure
----------------------------------------------------
Basic services regulator Sisab said the audit of outgoing water
services concessionaire Aguas del Illimani (AISA) will proceed
with or without the cooperation of the Company, reports Business
News Americas. Sisab director Alvaro Camacho said an audit of
AISA's books from 1997, when it won the concession to operate
basic services in the Bolivian capital La Paz and satellite city
El Alto, will be carried out "unilaterally if AISA refuses to
reach a mutual agreement" on the issue.

Reports have it that AISA is resisting probe claiming that the
period 1997-2002 has already been covered by a previous audit.

The extent of the audit must be sufficient to reveal the level
of real investment carried out by AISA to date. The government
just wants to ensure that the investment recorded in the
Company's books is real before it will compensate for the
rescission of the contract.

AISA, which is controlled by French water giant Suez, was
informed by the government last year that its contract will be
rescinded. The notification came after residents complained
about lack of services in parts of the city and water bills tied
to the US dollar.



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

CSN: Soaring Demand Prompts Possible Bond Issue Expansion
---------------------------------------------------------
Steel company Companhia Siderurgica Nacional SA (CSN) may up its
planned US$150 million perpetual bond issue to US$500 million
after demand exceeded US$1.5 billion, reports Dow Jones
Newswires. CSN plans to issue US$150 million in guaranteed
perpetual notes via related entity CSN Islands X Corp. to raise
funds to help pay down short-term debts of around US$500
million. The deal may close any day this week.

Standard & Poor's Ratings Services has awarded CSN's issue its
BB- senior unsecured long-term rating. The Company is exposed to
volatile demand and price cycles, increasing competition in
Brazil, heavy investments and an aggressive dividend policy,
Standard & Poor's credit analyst Reginaldo Takara said in a
statement.

These risks are partly offset by CSN's cost position, sound
operating profile, favorable market position in Brazil, strong
export capabilities and increasing diversification, he said.

Rio de Janeiro-based CSN is a steel complex comprised of
investments in infrastructure and logistics whose operations
include captive mines, an integrated steel mill, service
centers, ports and railways. With a total annual production
capacity of 5.7 million tons of crude steel and consolidated
gross revenues of BRL12.3 billion in 2004, CSN is also the only
tin-plate producer in Brazil and one of the five largest tin-
plate producers worldwide.

CONTACT: Mr. Marcos Leite Ferreira
         CSN - Investor Relations
         Phone: (55 11) 3049-7591
         E-mail: marcos.ferreira@csn.com.br
         Web site: http://www.csn.com.br/


VARIG: Management Reshuffled Amid Debt Restructuring
----------------------------------------------------
Viacao Aerea Riograndense SA (Varig) has reorganized its senior
management structure to ensure that the Company's day-to-day
operations as well as its financial restructuring will be
handled by seasoned leaders. According to Dow Jones Newswires,
Omar Carneiro da Cunha has been tasked to lead the airline's
operations, replacing Henrique Neves, who has been tasked with
leading the Company's financial restructuring.

Besides overseeing the airline's day-to-day operations, Carneiro
da Cunha will keep his seat on Varig's board of directors.
However, his position as deputy chairman has been handed to
another director, Eleazar de Carvalho Filho.

In a statement, Varig chairman David Zylberstajn said the same
team that took over Varig in mid-May remains in place and is
united it its efforts to resolve the airline's problems.

Varig last month filed for protection from creditors under
Brazil's new bankruptcy law, as it seeks to restructure gross
debts of approximately BRL9.5 billion. The firm is in the
process of hiring a firm to help it develop a restructuring
plan, which must be presented by mid-August to the Rio de
Janeiro court managing the case.

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

          VICENTE CERVO - FOREIGN REPRESENTATIVE OF VARIG
          Attorneys for the Foreign Representative:
               PILLSBURY WINTHROP SHAW PITMAN LLP
               1540 Broadway
               New York, New York 10036-4039
               (212) 858-1000 (Phone)
               (212) 858-1500 (Fax)
               Rick B. Antonoff (RBA-4158)



=========
C H I L E
=========

COEUR D'ALENE: Appoints New Vice President of Investor Relations
----------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM), the
world's largest primary silver producer and a growing gold
producer, announced Wednesday the appointment of W. Scott Lamb
as Vice President of Investor Relations, effective August 1,
2005.

Lamb was most recently Vice President of Investor Relations and
Corporate Communications at Kaiser Aluminum & Chemical
Corporation. Prior to joining that organization in 1992, he held
positions in financial, corporate, and marketing communications
with Boise Cascade Corporation and Datapoint Corporation.

Dennis E. Wheeler, Chairman, President and CEO stated, "Scott is
a great addition to our professional team. His extensive
investor relations experience will be particularly valuable as
the Company continues to build on its dominant silver position
and create value for its shareholders."

Lamb is a member of the National Investor Relations Institute
(NIRI) and completed the NIRI Investor Relations program at the
University of Michigan. He holds an MA from the University of
Houston and a BA from Weber State University. He is also a
member of the National Advisory Council at Weber State
University.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia

CONTACT: Coeur D'Alene Mines Corp.
         Tony Ebersole
         Director of Investor Relations
         Phone: 800-523-1535



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

ECOPETROL: Reports 20% Boost in Export Revenues in 5 Months
-----------------------------------------------------------
State oil company Ecopetrol saw a 20% boost in its revenues from
exports of crude and oil derivatives in the Jan-May 2005 period
against the comparable period last year, Business News Americas
reports. Ecopetrol's earnings from January to May this year
reached US$938 million due to higher crude prices despite lower
volume export of crude-based products.

The average WTI price was US$50.52 a barrel from Jan-May this
year, up 22% from the average price of US$41.40/b for the same
period in 2004.

Ecopetrol exported a total of 23.7 million barrels (Mb) of crude
and oil derivatives over the period, down 7% compared to 25.5Mb
barrels exported in the five-month lapse in 2004.

Ecopetrol exports premium gasoline, jet fuel, naphtha and light
crude, of which 57% of the January-May total went to the US, 16%
to the Dominican Republic, 5% to Mexico and the remaining 22% to
other countries, the statement said.



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

AIR JAMAICA: Gallimore Withdraws Charges Against Airline
--------------------------------------------------------
Air Jamaica has reached a settlement agreement with Miguel
Gallimore, who lodged a US$3-million lawsuit against the former
for alleged wrongful dismissal and the unauthorized use of his
image in an advertisement, The Jamaica Observer reports.

Airline officials declined to disclose the settlement terms,
saying they were confidential. But in a press release announcing
the settlement, Gallimore withdrew allegations of money
laundering, US immigration violations, racketeering, tax evasion
and other crimes against the airline.

"Mr. Gallimore acknowledges that these allegations were not
specifically or otherwise related to the three commercial claims
in the lawsuit which arose out his employment by Air Jamaica,"
his press statement says.

Air Jamaica could not say what compensation was received by
Gallimore, but legal sources in Florida, where his case went on
for nearly two years, suggested that in the apparent
circumstances it was quite unlikely that he could have had a
significant payout.

"Air Jamaica could not have had a significant bill to have this
settled."

Air Jamaica is yet to recover from massive financial losses
stemming from higher security costs and a slump in passengers in
the aftermath of the Sept. 11, 2001 terror attacks in the United
States.

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


AIR JAMAICA: Cuts Costs Through In-Flight Meal Service Changes
--------------------------------------------------------------
Air Jamaica (www.airjamaica.com) announced on June 17, 2005 that
the carrier will achieve a US$2 million reduction in its annual
operating costs by making two adjustments to its in-flight meal
service. The changes, which went into effect July 1, 2005, are
as follows:

I. Snack and beverage service are offered instead of full meal
service on select flights under 2.5 hours. The change affects
passengers traveling in Lovebird Economy Class on routes
connecting Jamaica with select gateways in the Caribbean
(Nassau, Grand Cayman, and Curacao) and Florida (Miami, Fort
Lauderdale, and Orlando). Meal service continues to be offered
in First Class, and full breakfast continues to be offered to
all passengers on flights scheduled to depart prior to 8:30 a.m.
No changes are made to Air Jamaica's full meal and beverage
service on flights over 2.5 hours.

II. Beer and wine are now available for sale on all flights,
except for service on the London route. The change affects
passengers traveling in Lovebird Economy Class only. Beer is
priced at US$2.00, while wine is available for US$3.00. The
US$5.00 charge for hard liquor remains unchanged. Complimentary
hard liquor, beer, and wine continue to be provided to First
Class passengers. Complimentary champagne continues to be
provided to all passengers on all flights.

These adjustments are a continuation of Air Jamaica's corporate
restructuring program. Launched in December 2004, the corporate
restructuring program is designed to improve operational
efficiencies and reduce costs by approximately US$50 million in
the face of record-high fuel prices and increased competition.



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

CINTRA: Initiates Airlines' Sale Process Process
------------------------------------------------
State airline holding company Cintra SA launched Wednesday the
process to privatize its Mexicana and Aeromexico airlines.

Through paid advertisements in local daily newspapers, Cintra
chairman Andres Conesa told potential buyers that they have
until July 26 to show their interest.

Only bidders approved to participate will receive the sale
terms. Cintra said it will let investors know by Aug. 9 whether
they have qualified to take part in the privatization.
Foreigners, who are limited to minority stakes, must ally
themselves with Mexican investors in order to participate.

The flagship carriers will be sold separately, although
investors are allowed to submit bids for both. Cintra said it
would take bids for minimum stakes of 51%. "If the proposal is
for more than 75% of the shares, it will have to be for 100%,"
it said.

The government took control of the airlines in the mid-1990s
after an economic crisis led to their financial collapse. It
wants to return them to the private sector, but previous plans
to sell the carriers have been delayed, most recently by the
crisis that hit the industry after September 11, 2001.

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 MEXICO: All Asarco Employees Now on Strike
------------------------------------------------
The situation at Grupo Mexico's independent US subsidiary,
Asarco LLC, has worsened after the last group of employees
working without a contract voted to walk out of an Amarillo,
Texas, refinery on Wednesday. With the addition of the more than
300 refinery workers, more than 1,500 employees of Tucson-based
Asarco are now on strike, said Union spokesman Manny Armenta.

Terry Bonds, District 12 supervisor for the United Steelworkers
of America, revealed workers on two separate labor pacts that
expired July 1 of this year and last year are striking because
Asarco has violated fair-labor practices by refusing to
negotiate in good faith.

Asarco, which was purchased by Grupo Mexico in 1999, has
demanded wage freezes and cuts in medical and pension benefits.
Those steps are necessary to bring down the costs of Asarco's
operations in order to be globally competitive, said Asarco CEO
Daniel Tellechea.

A company spokesman said Asarco was now considering various
options for its operations, including possible asset sales.

However, Bonds said the threat of asset sales would not push the
union into backing down.

"They've never said it before. It has only been since the strike
started that they are saying it," he said. "We can't base our
decisions when they break the law on what they might do."

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: Granted More Time to Prepare Arguments Vs. SEC
---------------------------------------------------------
Mexico's second largest television channel TV Azteca (NYSE: TZA)
now has until July 25 to present before a US Judge its arguments
on whether fraud charges filed by the Securities and Exchange
Commission (SEC) against the broadcaster should be dismissed.

In January, the SEC filed fraud charges against TV Azteca and
Company chairman Ricardo Salinas Pliego for withholding
information on a debt sale at its mobile telephone unit, Unefon.
The suit alleges the deal netted Salinas and former TV Azteca
director Pedro Padilla US$109 million.

In May, the broadcaster sought to dismiss SEC's charges, arguing
that TV Azteca had had no knowledge of the deal. The judge, at
the time, granted SEC an extension of until June 15 to present
its arguments, and TV Azteca until July 11.

TV Azteca's new deadline [July 25] was granted at the Company's
behest.

If the SEC wins this case, TV Azteca would have to return the
profits earned, face fines and be prohibited from heading
companies that trade on the New York Stock Exchange, says
Business News Americas.

CONTACT:  TV Azteca, S.A. de C.V.
          Investors, Bruno Rangel
          Tel: +5255-3099-9167
          E-mail: jrangelk@tvazteca.com.mx

          Media, Tristan Canales
          Tel: +5255-1720-5786
          E-mail: tcanales@tvazteca.com.mx

          Daniel McCosh
          Tel: +5255-1720-0059
          E-mail: dmccosh@tvazteca.com.mx
          URL: http://www.irtvazteca.com/



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

SIDERPERU: Appoints New Heads of Legal Division
-----------------------------------------------
Siderperu, the country's largest steel producer, appointed
Andres Balta as director of legal and institutional matters and
Rafael Montoya as legal manager, reports Business News Americas.
The Company, which is based in Chimbote in central Peru's Ancash
department, didn't provide details of the said appointments.

Siderperu has until August 31, 2005 to make 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, are due September 30,
2005.

The addendum dealt with debts totaling approximately US$8
million originally programmed to be paid by September 30, 2004

Siderperu is controlled by local holding company Sider Corp.




                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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