TCRLA_Public/050718.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Monday, July 18, 2005, Vol. 6, Issue 140

                            Headlines


A R G E N T I N A

AUTO CLIPS: Court Mandates Asset Liquidation
ANSWER LOGISTICA: Bankruptcy Initiated via Court Order
CAB TRAC: Reorganization Wraps Up
CLINICA PRIVADA: Liquidates Assets to Pay Debts
CRESUD: Convertible Note Holder Exercises Conversion Right

EDITORIAL LUMI: Liquidation Proceeding Initiated
FRIGORIFICO LA COLORADA: Court to Oversee Reorganization
FRIGORIFICO Y MATADERO: Enters Bankruptcy on Court Orders
G.I. CONSTRUCTORA: Bankruptcy Process Begins By Court Order
HPDA: Fitch Confirms B(arg) $162M Debenture Rating

IEBA: Fitch Maintains $230M of Bonds in Default Territory
INDAL S.A.: Trustee to Submit General Report
JOSE FERRARINI: Court Orders Liquidation
PAPELES UNIVERSALES: Initiates Bankruptcy Proceedings
RUBEN NARDONE: Court Grants Reorganization Motion

TRANSENER: Fitch Argentina Confirms Debt Ratings


B E R M U D A

FOSTER WHEELER: Wins Delayed Coker Complex for ENERCON Chile


B R A Z I L


NET SERVICOS: Shareholders OK Fiscal Council, Charter
NET SERVICOS: Reformulates Bylaws to Meet Legal Requirements
VARIG: Renews Rescue Talks With TAP Air Portugal


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: BofNY Retained as Exchange Agent, Trustee


E C U A D O R

PETROECUADOR: Raises Oil Output 4% in 1H05 Despite Challenges
* ECUADOR: Limited Available Financing Constrains Ratings


J A M A I C A

DYOLL: Former COO Arrested on Charges of Insurance Fraud


M E X I C O

GRUPO DESC: Acquires Ponderosa Industrial Via Rexcel
GRUPO FERTINAL: Local Court Rules in Mexican Claims Dispute


P A R A G U A Y

MILLICOM INTERNATIONAL: IFC Provides $15M to Paraguayan Unit
DORAL FINANCIAL: Elects John A. Ward III as Non-Exec Chairman


V E N E Z U E L A


BANCO LA GUAIRA: Fogade Moves to Recover $69M in Lost Capital
ROYAL SHELL: Required to Pay $131M in Unpaid Taxes


     - - - - - - - - - -


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A R G E N T I N A
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AUTO CLIPS: Court Mandates Asset Liquidation
--------------------------------------------
Buenos Aires-based Auto Clips S.A. will begin liquidating its
assets following the pronouncement of the city?s Court No. 6 of
the City's civil and commercial tribunal that the Company is
bankrupt, reports Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Alfredo Donatti. The trustee will
verify creditors? proofs of claim until Sep. 1, 2005. The
validated claims will be presented in court as individual
reports.

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

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

CONTACT: Mr. Alfredo Donatti, Trustee
         Montevideo 31
         Buenos Aires


ANSWER LOGISTICA: Bankruptcy Initiated via Court Order
------------------------------------------------------
Answer Logistica S.A. enters bankruptcy protection after Court
No. 5 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 9, 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 Marisa Gacio as
trustee. Ms. Gacio will be verifying creditors? proofs of claim
until the end of the verification phase on Sep. 21, 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 Nov. 3, 2005 followed by the general report, which is due on
Dec. 19, 2005.

CONTACT: Ms. Marisa Gacio, Trustee
         San Martin 793
         Buenos Aires


CAB TRAC: Reorganization Wraps Up
---------------------------------
The reorganization of Cab Trac Argentina S.R.L. has been
concluded. Data revealed by Infobae on its Web site indicated
that the process was concluded after the Civil and Commercial
Court No. 11 of Rosario's civil and commercial tribunal
homologated the debt agreement signed between the Company and
its creditors.

CONTACT: Cab Trac Argentina S.R.L.
         Charcas 1185
         Granadero Baigorria (Santa Fe)


CLINICA PRIVADA: Liquidates Assets to Pay Debts
-----------------------------------------------
Clinica Privada Psiquiatrica Esquirol S.A. will begin
liquidating its assets following the pronouncement of the
city?s civil and commercial Court No. 6 that the Company is
bankrupt, Infobae reports.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Lilian Edith Rey. The trustee will
verify creditors? proofs of claim until Aug. 19, 2005. The
validated claims will be presented in court as individual
reports.

Ms. Rey will also submit a general report, containing a summary
of the Company?s financial status as well as relevant events
pertaining to the bankruptcy. The bankruptcy process will end
with the disposal of the Company's assets in favor of its
creditors.

CONTACT: Ms. Lilian Edith Rey, Trustee
         Avda Roque Saenz Pena 651
         Buenos Aires


CRESUD: Convertible Note Holder Exercises Conversion Right
----------------------------------------------------------
Cresud S.A.C.I.F. y A filed a letter on July 13, 2005 with the
Bolsa de Comercio de Buenos Aires and Comision Nacional de
Valores stating that a holder of the Company's Convertible
Notes exercised its conversion right. Hence, the financial
indebted ness of the Company shall be reduced in US$50,000 and
an increase of 98,463 ordinary shares face value pesos 1 each
was made.

The conversion was performed according to terms and conditions
established in the prospectus of issuance at the conversion
rate of 1.96928 shares, face value pesos 1 per Convertible Note
of face value US$ 1.

As a result of that conversion, the amount of shares of the
Company goes from 162,784,579 to 162,883,042. On the other
hand, the amount of registered Convertible Notes is US$
40,077,544.

CONTACT:  CRESUD S.A.C.I.F. Y A.
          Gabriel Blasi, CFO
          Phone: 011-54-11-4323-7449
          E-mail: finanzas@cresud.com.ar
          URL: http://www.cresud.com.ar  

  
EDITORIAL LUMI: Liquidation Proceeding Initiated
------------------------------------------------
Editorial Lumi S.R.L. of Buenos Aires will begin liquidating
its assets after Court No. 19 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, Mabel N. Herrera.

The trustee will review claims forwarded by the Company?s
creditors until Oct. 13, 2005. After claims verification, Ms.
Herrera will submit the individual reports for court approval
on Nov. 24, 2005. The general report will follow on Feb. 2,
2006. Clerk No. 37 assists the court on this case.

CONTACT: Ms. Mabel N. Herrera, Trustee
         Rodriguez Pena 694
         Buenos Aires


FRIGORIFICO LA COLORADA: Court to Oversee Reorganization
--------------------------------------------------------
Frigorifico La Colorada S.A. will begin reorganization
following the approval of its petition by Court No. 3 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.

Estudio Escandel, Hurovich, Lopez Cepero will administer the
reorganization proceedings as the court-appointed trustee. The
trustee will verify creditors? claims until Sep. 29, 2005. The
validated claims will be presented in court as individual
reports on Nov. 11, 2005.

The trustee is also required by the court to submit a general
report essentially auditing the Company?s accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on Dec. 26, 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 June 27, 2006.

Clerk No. 5 assists the court on this case.

CONTACT: Estudio Escandel, Hurovich, Lopez Cepero, Trustee
         Tte Gral Juan D. Peron 1509
         Buenos Aires


FRIGORIFICO Y MATADERO: Enters Bankruptcy on Court Orders
---------------------------------------------------------
Buenos Aires Court No. 3 declared Frigorifico y Matadero
Pontevedra 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 trustees, Sastre, Lostao, Romano.

As the trustees, they are tasked with verifying the
authenticity of claims presented by the Company?s creditors.
The verification phase is ongoing until Sep. 14, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Oct. 27, 2005. A general report will
also be submitted on Dec. 9, 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: Frigorifico y Matadero Pontevedra S.A.  
         Avda La Plata 688
         Buenos Aires

         Sastre, Lostao, Romano, Trustees
         Tucuman 1539
         Buenos Aires


G.I. CONSTRUCTORA: Bankruptcy Process Begins By Court Order
-----------------------------------------------------------
Buenos Aires' civil and commercial Court No. 16 declared G.I.
Constructora S.A.  ?Quiebra,? reports Infobae. The ruling
enables the Company to proceed with the bankruptcy process,
which will wind up with total asset liquidation.

The court, assisted by Clerk No. 32, appointed Mr. Claudio
Jorge Haimovici, as receiver who will authenticate proofs of
claim until Aug. 12, 2005. Afterwards, the receiver will
prepare the individual reports based on the results of the
authentication and then submit these reports to court on Sep.
29, 2005. After these results are processed in court, the
receiver will then submit the general report on Nov. 16, 2005.

CONTACT: Mr. Claudio Jorge Haimovici, Trustee
         Sarmiento 3843
         Buenos Aires


HPDA: Fitch Confirms B(arg) $162M Debenture Rating
--------------------------------------------------
Fitch Argentina confirmed the B(arg) rating assigned to four
series of debentures totaling US$162 million issued by
Hidroelectrica Piedra del Aguila S.A. (HPDA) as part of a
refinancing plan, says Business News Americas.

The outlook on the rating is stable. The debentures were issued
in June 2004 and will expire in 2013.

HPDA is the largest private hydroelectric generator in
Argentina. The Company holds a concession until Dec. 29, 2023
from the Argentine government to operate its hydroelectric
facility and for the generation and sale of electricity. HPDA
is located approximately 1,200 km southwest of Buenos Aires on
the Limay River.


IEBA: Fitch Maintains $230M of Bonds in Default Territory
---------------------------------------------------------
Fitch Argentina maintains the D(arg) rating given to a total of
US$230 million worth of corporate bonds issued by local holding
company Inversora Electrica de Buenos Aires S.A.. According to
Business News Americas, the rating applies to US$100 million
class A debentures and US$130 million class B debentures.

The rating reflects the company's non-payment of capital and
interest on the debentures since March 2002.

IEBA's only source of income is its controlling stake in local
distributor Edea, whose ability to generate funds has fallen
sharply due to the pesofication and subsequent rates freeze in
January 2002.


INDAL S.A.: Trustee to Submit General Report
--------------------------------------------
Ciudad de Cordoba accountant Manuel Alberto Fada, the trustee
assigned for the liquidation of local company Indal S.A., will
submit the general report on Aug. 8, 2005

Infobae relates that Mr. Fada verified creditors' claims until
April 29, 2005. After that, he prepared the individual reports,
which he submitted in court on June 13, 2005.

The city's civil and commercial Court No. 4 handles the
Company's case.

CONTACT: Indal S.A.
         Manuel Pizarro 2072
         Ciudad de Cordoba (Cordoba)

         Mr. Manuel Alberto Fada, Trustee
         Avda General Paz 108
         Ciudad de Cordoba (Cordoba)



JOSE FERRARINI: Court Orders Liquidation
----------------------------------------
Jose Ferrarini S.A.C.I. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court No. 7 of
Buenos Aires' civil and commercial tribunal. The declaration
effectively prohibits the company from administering its
assets, control of which will be transferred to a court-
appointed trustee.

Infobae reports that the court appointed Ms. Lidia Roxana
Martin as trustee. Ms. Martin will be reviewing creditors?
proofs of claim until July 26, 2005. The verified claims will
serve as basis for the individual reports to be presented for
court approval on Sep. 7, 2005. The trustee will also submit a
general report of the case on Oct. 20, 2005.

Clerk No. 13 assists the court on this case that will end with
the sale of the Company?s assets. Proceeds from the sale will
be used to repay the Company?s debts.

CONTACT: Ms. Lidia Roxana Martin, Trustee
         Avda Cordoba 1352
         Buenos Aires

  
PAPELES UNIVERSALES: Initiates Bankruptcy Proceedings
-----------------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared Papeles Universales S.A. "Quiebra," reports Infobae.
Clerk No. 17 assists the court on the case, which will close
with the liquidation of the Company's assets to repay
creditors.

Ruben Hugo Faure, who has been appointed as trustee, will
verify creditors' claims until Oct. 14, 2005 and then prepare
the individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on Nov.
30, 2005, followed by the general report on Feb. 29, 2006.

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


RUBEN NARDONE: Court Grants Reorganization Motion
-------------------------------------------------
Ruben Nardone S.R.L. successfully petitioned for reorganization
after Court No. 14 of Rosario's (Santa Fe) 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 Juan Carlos Blanco will serve as trustee
during the course of the reorganization. The trustee will be
accepting creditors? proofs of claim for verification until
July 7, 2005.

After verification, the trustee will prepare the individual
reports and submit it in court on Sep. 1, 2005. He will also
present a general report for court review on Oct. 28, 2005.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on April 12, 2006..

CONTACT: Ruben Nardone
         Saa Pereyra 619 Acebal
         Rosario (Santa Fe)

         Mr. Juan Carlos Blanco, Trustee
         San Lorenzo 1131
         Rosario (Santa Fe)


TRANSENER: Fitch Argentina Confirms Debt Ratings
------------------------------------------------
The Argentine arm of Fitch Ratings has confirmed its B(arg)
rating on US$238 million debentures issued by local
transmission company Transener as part of its debt
restructuring process, reports Business News Americas.

The outlook on the rating is stable.

At the same time, Fitch affirmed its D(arg) rating on US$525
million debentures issued by Transener, of which only US$12.4
million remains outstanding.

The completion of Transener?s debt restructuring process on
June 30, 2005, reduced the Company?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.

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



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B E R M U D A
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FOSTER WHEELER: Wins Delayed Coker Complex for ENERCON Chile
------------------------------------------------------------
Foster Wheeler Ltd. (Nasdaq: FWLT) announced Thursday that its
Madrid-based subsidiary Foster Wheeler Iberia, S.A. has been
awarded a contract for the engineering, procurement and
construction (EPC) of a new delayed coker complex at Empresa
Nacional de Petroleo's (ENAP) Aconcagua refinery at Concon,
Chile.

The project, which will use Foster Wheeler's SYDEC(SM) delayed
coking technology, will be executed by a consortium led by
Foster Wheeler, with two other international companies.

ENAP, Chile's state-owned oil company, and its refining unit
ENAP Refinerias, will have a combined 49% stake in the special-
purpose company ENERCON (Energia Concon), and Foster Wheeler
and its two consortium partners will each hold 17%.

The total investment of the complex is about US$430 million.
The contract value was not disclosed. The project will be
included in Foster Wheeler's third-quarter 2005 bookings.

"This EPC award marks the successful conclusion of a long
process, which started with an exhaustive feasibility study,
followed by the execution of the basic design," commented Jesus
Cadenas, managing director of Foster Wheeler Iberia S.A. "This
is a strategic project for the refinery. Using our leading-edge
delayed coking technology, ENAP will be able to process
cheaper, heavier crudes and to upgrade the heavy fuels it
produces into lighter, more valuable products, such as
liquefied petroleum gas, naphtha and diesel."

The new facility includes a new 20,000 barrels per stream day
delayed coker, auxiliary units, including sulfur recovery, sour
water stripper, amine regeneration, coke handling and
wastewater treatment, as well expanded utilities. Foster
Wheeler Iberia, in collaboration with its consortium partners,
will execute the project on a lump-sum turnkey basis. The
process design package has been prepared by Foster Wheeler's
coking center of excellence in Houston. The new complex is
expected to start up in the first half of 2008.

Foster Wheeler Iberia S.A. is a subsidiary of Foster Wheeler
Continental Europe, wholly-owned by Foster Wheeler Ltd. Based
in Corsico (Milano) Italy, Foster Wheeler Continental Europe
also manages Foster Wheeler Italiana (Corsico), Foster Wheeler
France (Paris), Foster Wheeler Bimas (Istanbul), Foster Wheeler
Hellas (Athens), Steril Schweiz AG (Basel) and Foster Wheeler
Chile (Santiago).

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and
management, research and plant operation services. Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries. The corporation is
based in Hamilton, Bermuda, and its operational headquarters
are in Clinton, New Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         United States
         Maureen Bingert
         Phone: 908-730-4444
         E-mail: maureen_bingert@fwc.com
                     or
         Italy
         Cristiana Monti
         Phone: 39-02-4486-2135
         E-mail: cristiana_monti@fwceu.com
                     or
         Spain
         Nicole Veron
         Phone: 34-91-336-2712
         E-mail: nicole_veron@fwiberia.fwc.com
                     or
         Other Inquiries
         Phone: 908-730-4000
         
         URL: www.fwc.com



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B R A Z I L
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NET SERVICOS: Shareholders OK Fiscal Council, Charter
-----------------------------------------------------
The shareholders of Net Servicos De Comunicacao S.A. approved
the establishment of the Company's permanent Fiscal council and
its Charter, to be filed at the Company's headquarters, as well
as the election of its members who will hold their positions
until the 2006 annual general meeting takes place.

SUMMARY OF THE EXTRAORDINARY GENERAL MEETING HELD ON JULY 12,
2005

DATE, TIME   AND VENUE:  On July 12, 2005, at 11:00 am, at the
Company?s headquarters located at Rua Verbo Divino, 1356 ? 1
andar, Chacara Santo Antonio, in the city of Sao Paulo, State
of Sao Paulo.  

ATTENDANCE: The Shareholders holding over ninety percent (90%)
of the voting stock, as signatures stated in the Shareholders?
Attendance Book, attended the Meeting.  

PRESIDING BOARD: LEONARDO PORCIUNCULA GOMES PEREIRA ? Chairman
and ANDRE MULLER BORGES ? Secretary.

CALL: The call notice was published in the newspaper Valor
Economico and in the Official Gazette of the State of Sao Paulo
on June 25, 28 and 29, 2005.  

AGENDA: a) To redraft CHAPTER V ? FISCAL COUNCIL ? of the
Company?s Bylaws to make it permanent and adapt it to the
provisions of the Sarbanes-Oxley Act; b) To establish an Fiscal
Council, elect its sitting and alternate members and set their
compensation; c) To amend Article 5 of the Company?s Bylaws to
reflect the Company?s capital increase approved by the Board of
Directors at the meeting held on May 10, 2005, from
R$2,748,650,800.00 to R$3,387,408,498.71, resulting from the
issuance for private subscription within the authorized capital
limit of 745,147,153 common shares and 1,079,874,843 preferred
shares, all non-par registered book-entry shares, at the
issuance price of R$0.35 per common and preferred share.

DELIBERATIONS: The deliberations were approved by unanimous
vote of the attending shareholders. These minutes were drawn up
in the summary format of the events occurred, as provided for
in paragraph 1 of Article 130 of Law 6,404/76. The publication
of these minutes with the omission of the shareholders?
signatures is herein authorized, as set forth by paragraph 2 of
Article 130 of Law 6.404/76:

a) The shareholders approved the reformulation of CHAPTER V ?
FISCAL COUNCIL ? of the Company?s Bylaws to make the Fiscal
Council permanent and adapt it to the provisions of the
Sarbanes-Oxley Act.

b) The shareholders approved the establishment of the Company?s
permanent Fiscal council and its Charter, which shall be filed
at the Company?s headquarters, and the election of its members
who will hold their positions until the 2006 annual general
meeting takes place:

i) The shareholders DISTEL HOLDING S.A., GB EMPREENDIMENTOS E
PARTICIPACOES S.A and LATAM DO BRASIL PARTICIPACOES S.A.,
indicated Messrs Charles Barnsley Holland, Brazilian, married,
accountant, bearer of Identity Card (RG) number 12.782.315
(SSP-SP) and enrolled in the Individual Taxpayer Registry of
the Ministry of Finance (CPF/MF) under number 379.343.258 -00,
residing and domiciled at Rua Miranda Montenegro, 144, in the
city of Sao Paulo, State of Sao Paulo, and Martin Roberto
Glogowsky, Brazilian, married, lawyer and business
administrator, bearer of Identity Card (RG) number 4.700.146
(SSP-SP) enrolled in the CPF under number 861.682.748 -04,
residing and domiciled at Rua Barao de Santa Eulalia, 170 Ap.
52, in the city of Sao Paulo, State of Sao Paulo, who were
elected .

ii) At a separate meeting without the attendance of the
controlling shareholders, under the terms of Article 161, S 4
a, of Law 6.404/76, the preferred shareholders unanimously
elected Mr. Antonio Jose Alves Junior, a Brazilian citizen,
married, economist, bearer of Identity Card number 06692026-5 -
IFP/RJ, enrolled in the Individual Taxpayers Registry of the
Ministry of Finance (CPF/MF) under number 849.079.327 -15,
residing and domiciled at Avenida Edson Passos, n 603/301, Alto
da Boa Vista, Tijuca, in the city and State of Rio de Janeiro,
who was indicated by the shareholder BNDES PARTICIPACOES S.A. -
BNDESPAR.

The newly elected Board Members assumed their positions by
signing the assumption of office agreements. They declared they
are not impeded from performing business activities. The
General Meeting set the annual global compensation for the
Fiscal council of up to R$400,000.00 (four hundred thousand
reais) for year 2005. The General Meeting also approved a
budget for the Fiscal council of R$ 100,000.00 (one hundred
thousand reais) for year 2005.

c) The shareholders approved the amendment of Article 5 of the
Company?s Bylaws to reflect the approval of capital increase
from R$2,748,650,800.00 to R$3,387,408,498.71 by the Board of
Directors at the meeting held on May 10, 2005, whose minutes
were registered with the S?o Paulo State Trade Board on May 16,
2005. That capital increase resulted from the issuance for
private subscription within the authorized capital limit of
745,147,153 common shares and 1,079,874,843 preferred shares,
all non-par registered book-entry shares, at the issuance price
of R$0.35 per common and preferred share. Article 5 will have
the following wording:

"Article 5 ? The Company?s Capital Stock is R$3,387,408,498.71
(three billion, three hundred eight seven million, four hundred
eight thousand, four hundred ninety eight reais, seventy one
centavos), divided into 1,573,518,496 (one billion, five
hundred seventy three million, five hundred eighteen thousand,
four hundred ninety six) common shares and 2,280,359,030 (two
billion, two hundred eighty million, three hundred fifty nine
thousand an thirty) preferred shares, all non-par registered
book-entry shares. The Capital Stock may be increased by up to
R$5,000,000,000.00 (five billion reais), regardless of
statutory amendment, as provided for by Article 168 of Law
6,404/76, by resolution of the Board of Directors, which shall
determine the issuance conditions, under the terms of paragraph
1 of Article 170 of Law 6,404/76."

d) Due to the amendments above, the shareholders approved the
Bylaws consolidated by the Company.

Finally, the shareholders amended and restated the deliberation
in item b. (iii) of the Annual General Meeting held on April
29, 2005 to state that Mr. JOSE FORMOSO MARTINEZ, a Mexican
citizen, married, engineer, bearer of the ID Card for
Foreigners (RNE) V405864-B, enrolled in the Individual Taxpayer
Registry (CPF/MF) under number 059.557.727 -07, domiciled at
Av. Presidente Vargas, 1012, 15 andar, CEP 22271-100, in the
City and State of Rio de Janeiro, was only indicated by the
shareholder LATAM DO BRASIL PARTICIPACOES S.A. for the position
of sitting member of the Company?s Board of Directors. His
assumption of office will depend on the authorization by the
Brazilian proper authorities, without prejudice for his
substitute Mr. JORGE DA GAMA BRAGA NETO to attend and
deliberate at the Board of Directors? meetings until Mr. JOSE
FORMOSO MARTINEZ effectively takes office.

CONTACT:  NET SERVICOS DE COMUNICACAO
          Investor Relations: Marcio Minoru
          Phone: 011-5511-2111-2811
          Email: minoru@netservicos.com.br

          Sandro Pina
          Phone: 011-5511-2111-2721
          Email: sandro.pina@netservicos.com.br
          http://www.netservicos.com.br


NET SERVICOS: Reformulates Bylaws to Meet Legal Requirements
------------------------------------------------------------
The shareholders of Net Servicos De Comunicacao S.A. approved
in a meeting held on July 12, 2005 the reformulation of CHAPTER
V ? FISCAL COUNCIL ? of the Company?s Bylaws to make the Fiscal
Council permanent and adapt it to the provisions of the
Sarbanes-Oxley Act which shall take effect with the following
wording:

"CHAPTER V ? FISCAL COUNCIL

Art. 20 ? The Company shall have a permanent Fiscal council,
elected and convened by the general meeting, which shall be
comprised of at least 3 (three) and at most 5 (five) sitting
members, with an equal number of alternate members, all of whom
shall be individuals domiciled in Brazil and holders of a
graduation degree, or who have held for at least 3 (three)
years the position of business administrators or Head of Fiscal
Council; at least 1 (one) amongst them shall be a financial
specialist.

Paragraph 1 ? The members of the Fiscal council and their
alternates shall hold their positions until the holding of the
first annual general meeting after their election. They are
eligible for reelection.

Paragraph 2 ? In addition to those persons listed in paragraphs
of the Article 147 of Law 6,404/76, the following persons are
not eligible for the Fiscal council: members of administrative
bodies and employees of the Company, its controlled companies
or companies from the same group, and spouses or relatives, up
to the third degree, of members of the Company?s management.

Paragraph 3 ? The members of the Fiscal council shall be
invested in office by means of the execution of a deed of
appointment drawn up in the Book of Minutes and Opinions of the
Fiscal council, which deed shall include a declaration by the
latter that (i) they are aware of the shareholders? agreements
duly registered at the Company?s headquarters, mentioned in the
Article 37 hereof, and (ii) they undertake to observe the full
content of said agreements.

Paragraph 4 ? The investiture of the members of the Fiscal
council shall be subject to a prior subscription to the Deed of
Management Consent mentioned in the BOVESPA Level 2 Rules.

Paragraph 5 ? The Fiscal council shall have a Chairman elected
by a majority vote of its members, immediately after they are
invested in office.

Art. 21 ? The remuneration of the members of the Fiscal
council, as well as its annual budget, shall be approved by the
general meeting that elects them.

Art. 22 ? The Fiscal council shall meet ordinarily once a
month, and extraordinarily whenever corporate interests require
its members to pronounce themselves and in the cases provided
for by the law and by these bylaws, by means of a summons
conveyed through an electronic message, 7 (seven) days ahead of
time, issued by the Chairman of the Fiscal council or by any of
its members, pursuant to its Bylaws.

Art. 23 - It is incumbent upon the Fiscal council to:

I) propose to the Board of Directors the appointment of
independent auditors and the person responsible for the
Company?s internal auditing, as well as to oversee their
activities under the terms hereof, in conjunction with the
Company?s Management;

II) issue its opinion of the Company?s auditing policies and
annual auditing plan, submitted by the party responsible for
the Company?s internal auditing, as well as their execution;

III) monitor the results of the Company?s internal auditing and
identify, prioritize and propose to the Board of Directors
actions to be taken in connection with the Board of Executive
Officers;

IV) supervise the work of the independent auditors;

V) set forth procedures for receiving, maintaining and
addressing complaints and accusations regarding accounting
practices, internal accounting controls and auditing problems,
including procedures that enable the submission of confidential
and anonymous complaints and accusations by the Company?s
employees concerning questionable accounting practices and
auditing problems;

VI) select an external consultant to help to verify any fact,
clarification of which is necessary in order for it to perform
its functions better, defining the fees at a reasonable level
that reflects what is current in the market and compatible with
the Company?s economic dimensions, which fees shall be paid by
the latter;

VII) meet, at least once a quarter, with the independent
auditors, in order to obtain clarifications or information, as
well as to verify specific facts;

VIII) ensure compliance with the Fiscal council?s Bylaws;

IX) help to implement or change the Company?s accounting
practices;

X) oversee, through any of its members, the actions of the
company?s management and check on the fulfillment of its legal
and statutory duties;

XI) issue its opinion of the annual management report, and
include in its opinion the complementary information it
considers necessary or useful for the deliberations of the
general meeting;

XII) issue its opinion regarding the proposals of the
management bodies, to be submitted to the general meeting,
concerning changes in the company?s capital structure, the
issuance of subscription warrants or debentures, investment
plans or capital budgets, distribution of dividends,
transformation, incorporation, merger or spin-off;

XIII) disclose through any of its members to the management
bodies and, if the latter fail to take the necessary measures
for protecting the Company?s interests, to the general meeting,
the errors, fraud or crimes that it may discover and propose
that measures useful to the Company be taken;

XIV) call an annual general meeting if the management bodies
delay calling this meeting by more than 1 (one) month, and call
an extraordinary general meeting, whenever grave or urgent
matters so require, and include the matters it deems necessary
in the agenda of such meetings;

XV) analyze, at least once per quarter, the trial balance sheet
and the other financial statements periodically prepared by the
Company;

XVI) examine the financial statements for the fiscal year and
issue an opinion of them;

XVII) exercise the duties conferred upon it, as described in
this chapter, during liquidation, given the special provisions
that regulate the latter;

XVIII) attend the meetings of the Board of Directors and of the
Board of Executive Officers at which the following are
discussed: (i) the Company?s annual management report; (ii) any
changes to the company?s capital stock, the issuance of
subscription warrants or debentures, the investment plans or
capital budgets, the distribution of dividends, the
transformation, incorporation, merger or spin-off of the
Company; and (iii) the financial statements for the fiscal
year."


VARIG: Renews Rescue Talks With TAP Air Portugal
------------------------------------------------
Brazil's flagship airline Varig has resurrected discussions
with TAP Air Portugal about a scheme to save the debt-laden
carrier from bankruptcy. TAP has hired the investment bank J.P.
Morgan as a financial adviser for a deal in which the
Portuguese carrier would buy a 20% stake in Varig, according to
Varig Chairman David Zylberstajn.

Varig's press office confirmed Zylberstajn's remarks and said
the carrier was in preliminary talks with other possible
investors.

TAP and Varig had been discussing a plan under which Portugal's
state-owned airline would invest an undisclosed sum in Varig
and receive a stake of up to 20% in the Brazilian carrier. But
Varig's bankruptcy filing in June effectively voided the
memorandum of understanding between the two companies.

On July 12, a Rio bankruptcy court gave Varig 60 days to
present its restructuring plan.

Zylberstajn said the current proposal would create a new
company, to be called Nova Varig. Under the plan, Varig's
current controlling shareholder, the Rubem Berta Foundation,
would hold no more than 10% of the new company.

The foundation, which represents Varig employees, had blocked
previous attempts to restructure the airline. But on Wednesday
it agreed to relinquish control and hired Lufthansa Consulting
to draw up a restructuring plan.

Zylberstajn also revealed that Varig was in preliminary talks
with other possible investors.

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)



===================================
D O M I N I C A N   R E P U B L I C
===================================

* DOMINICAN REPUBLIC: BofNY Retained as Exchange Agent, Trustee
---------------------------------------------------------------
The Bank of New York, a global leader in securities servicing,
acted as exchange agent in the Dominican Republic's recent bond
exchange offer. The Bank was also appointed to act as trustee
for the newly exchanged bonds.

The exchange offer, which was launched on April 20, 2005, and
expired May 4, 2005, encompassed approximately $1 billion in
outstanding eligible securities that were swapped for newly
issued exchange bonds. As the exchange agent in this
transaction, the Bank's New York and Luxembourg offices
received and processed electronic tenders from investors
holding bonds in Euroclear, Clearstream, and the DTC throughout
the 14-day offer period. Bondholders who tendered valid
securities received exchange bonds, including 9.04% par bonds
due 2013-18 and 9.50% par bonds due 2007-11. The successful
bond exchange achieved a 94% participation rate and provided
both short-term liquidity and medium-term financing for the
Republic.

Julio Ortega-Tous, chairman of the Council of Economic Advisors
to the Executive Branch and Chief Debt Negotiator for the
Dominican Republic, said, "The Dominican Republic's recent bond
exchange was a complete success and marks an important
milestone in the country's ongoing financial restructuring.
This was made possible by the outstanding efforts put forth by
the Dominican Republic's team of international advisors and
agents, including The Bank of New York, whose timely execution
as exchange agent was critical to the process."

Karen B. Peetz, executive vice president and Head of the
corporate trust services division at The Bank of New York,
said, "This mandate with the Dominican Republic is one of a
number of recent appointments related to debt restructuring in
the Latin American market which require us to develop and
deliver customized service and technological solutions to meet
the unique needs of the issuer. Our experience and success with
handling large, complex transactions like the Dominican
Republic exchange positions The Bank of New York to be the
leading trustee for future financing activities in the region."

The Bank of New York has been conducting business in Latin
America for over 100 years. The Company has representative
offices in Argentina, Mexico and Brazil, and offers a full
range of securities servicing, global payments, asset
management and trade finance products. The Bank is committed to
Latin America and to growing its business as the capital
markets develop in the region.

The Bank of New York is a leading provider of corporate trust
and agency services. The Bank and its subsidiaries and
affiliates administer a portfolio of more than 90,000 trustee
and agency appointments, representing more than $2.7 trillion
in outstanding securities for more than 30,000 clients around
the world. The Bank is a recognized leader for trust services
in several debt products, including corporate and municipal
debt, mortgage-backed and asset-backed securities, derivative
securities services and international debt offerings.

The Bank of New York Company, Inc. (NYSE: BK) is a global
leader in providing a comprehensive array of services that
enable institutions and individuals to move and manage their
financial assets in more than 100 markets worldwide. The
Company has a long tradition of collaborating with clients to
deliver innovative solutions through its core competencies:
securities servicing, treasury management, investment
management, and individual & regional banking services. The
Company's extensive global client base includes a broad range
of leading financial institutions, corporations, government
entities, endowments and foundations. Its principal subsidiary,
The Bank of New York, founded in 1784, is the oldest bank in
the United States and has consistently played a prominent role
in the evolution of financial markets worldwide.

This announcement is not an offer to sell or a solicitation of
an offer to buy any securities. The offering is made only by
means of the prospectus.

CONTACT:  The Bank of New York
          Kevin Heine
          Tel: 212-635-1569
          URL: www.bankofny.com



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

PETROECUADOR: Raises Oil Output 4% in 1H05 Despite Challenges
-------------------------------------------------------------
Despite lack of capital for investment and additional problems
affecting its production on state-owned oil fields, state oil
company Petroecuador managed to increase its production on the
fields by 4% in the first half of the year.

According to a Business News Americas report, the Company?s oil
output in the fields during the period reached 36.2 million
barrels (Mb) from 34.8Mb in the comparable period last year.

Production averaged 199,178 barrels a day (b/d) over the six-
month period, Petroecuador said, adding that production has
averaged more than 201,000b/d over the last two weeks.
Petroecuador president Carlos Pareja expects production to rise
to around 203,000b/d by year-end.

The Company reported US$1bn in revenues from crude exports
alone in the first half, up 39.5% year-on-year due to high
international crude prices.


* ECUADOR: Limited Available Financing Constrains Ratings
---------------------------------------------------------

Credit Rating:  CCC+/Stable/C

Rationale

The ratings on the Republic of Ecuador are constrained by
limited available financing and a structure of fiscal accounts
that is inflexible and vulnerable to a downturn in oil prices.
Given conflicting policy signals and the probable setback to
fiscal institutions, the private sector has a limited appetite
for refinancing government debt coming due. In addition,
multilateral agencies are less likely to disburse the full
amount of exceptional financing expected by the government. At
the same time, Ecuador's limited expenditure flexibility
impairs its ability to absorb a significant reduction in
financing. The central government's payroll expenses are
projected to double by year-end 2005 from 2001 results.
Subsidies on pensions and petroleum derivatives (including
cooking gas) further constrain its room to maneuver. Interest
and other nondiscretionary spending (earmarked revenue and
transfers to local governments) also contribute to expenditure
rigidities.

Ecuador's challenging political environment also weighs upon
the rating. Conflicting interests and strong regional
divisiveness have precluded successive governments from a
significant commitment?or the ability?to enact any reform that
could permit this resource-rich nation to achieve its
significant growth potential and reduce poverty. The unfolding
of political events in Ecuador, culminating with the April 20,
2005, ouster of President Lucio Guti,rrez, underscore Standard
& Poor's assessment that Ecuador has one of the weakest and
most unpredictable political and institutional environments
among its 107 rated sovereigns.

Economic challenges and vulnerabilities limit diversified
economic growth and poverty reduction. As a small, open,
commodity-dependent economy, Ecuador's growth is vulnerable to
external shocks. Given declining oil production by Petroecuador
(the government-owned oil company), raising private-sector oil
production further to leverage increased export capacity
afforded by the country's second oil pipeline (OCP) is
necessary to bolster this sector over the medium term. However,
government policies and disputes with foreign direct investors
discourage such activity.

Ecuador's economy has stabilized since the 1999-2000 economic
and banking sector crisis that led to default by the government
on its debt, supporting its creditworthiness. Inflation has
declined substantially to that of its trading partners from
more than 90% in 2000, when the economy was officially
dollarized. Inflation is projected to average 2.5% in 2005,
which is little changed from 2.7% in 2004. Real GDP growth is
projected to decelerate to about 3.5% in 2005 from 6.9% in
2004, as the base effect from the sharp increase in oil
production following completion of OCP dissipates. Growth in
the nonoil sector, however, is expected to remain subdued in
2005.

Outlook

The stable outlook underscores the evenly balanced pressures on
the rating. Creditworthiness could improve with consistent
policy signals backed by prudent fiscal performance that, in
turn, restore confidence in government policy and improve the
outlook for access to financing. The rating could be lowered
again if it becomes apparent that debt-management capabilities
are further impaired, the projected fiscal outturn weakens, or
instability surfaces in the here-to-date, little-changed level
of deposits in the banking system.

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



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

DYOLL: Former COO Arrested on Charges of Insurance Fraud
--------------------------------------------------------
Mark Thwaites, the former Chief Operating Officer of bankrupt
Dyoll Insurance Company, was arrested Wednesday and charged
with four counts of breaches of the Insurance Act.

Mr. Thwaites, who resigned from his COO post five months ago,
was charged by members of the Financial Investigation Division
(FID) and taken before the Corporate Area Criminal Court, where
he was offered bail in the sum of $1.5 million by Resident
Magistrate Judith Pusey.

Mr. Thwaites' lead attorney, Winston Spaulding, QC declined to
comment in any detail on his client's likely defense, saying
that they had not received sufficient information about the
charges.

Dyoll's problems began late last year following a deluge of
claims arising from property damage as a result of Hurricane
Ivan last September. The vast majority of the claims originated
from the Cayman Islands, amounting to $850 million and
contributed to the Company's deficit of $1.1 billion, wiping
out its capital base.

Mark and his brother Stephen Thwaites, Chief Executive Officer,
departed Dyoll in February amidst allegations by the Dyoll
Group board, chaired by Peter Lawson, that the brothers had
misled directors. Lawson is a senior executive and strategist
at National Commercial Bank, which owned a 40% chunk of Dyoll.

Two weeks after the Thwaites brothers' formal resignation, the
Financial Services Commission (FSC), the regulators, took
control of the flagging company, naming Ken Tomlinson as
temporary manager. Tomlinson recommended that Dyoll be wound
up.

Dyoll is now under the control of Trustee in Bankruptcy Keith
Hartley Cooper, who was appointed provisional liquidator by the
court. Cooper will meet July 28 with Dyoll creditors,
policyholders and other claimants to discuss settlement of
claims, and to appoint a liquidator to wind up the Company.

Creditors have until noon on July 26 to submit their claims
against Dyoll.



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

GRUPO DESC: Acquires Ponderosa Industrial Via Rexcel
----------------------------------------------------
DESC, S.A. de C.V. (BMV: DESC), through its unit Rexcel, has
acquired Ponderosa Industrial de Mexico?s particleboard
operations for an undisclosed amount, reports Dow Jones
Newswires. With the acquisition, DESC expects to expand its
particleboard and laminates sales by 50% to more than US$100
million a year.

DESC has been selling assets in recent years. However, the
Company?s latest acquisition is part of its business plan that
includes "not only divesting, but also investing" in industries
where it sees opportunities for growth.

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.

Rexcel S.A. de C.V., is a major North American fully integrated
manufacturer of decorative high pressure laminates, melamine
board and particleboard based in Mexico.

Rexcel products are sold primarily thorough distributors and
OMEs in Mexico, United States, Canada as well as Central and
South America. Rexcel is operated as an autonomus company held
by DESC Group of companies that is in the top with the largest
companies in Mexico.

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 FERTINAL: Local Court Rules in Mexican Claims Dispute
-----------------------------------------------------------
ING Comercial America, the insurance company of ING in Mexico,
has been notified by a local court in Mexico City about a
ruling in the judicial process with regard to a civil claim
involving the Mexican company Grupo Fertinal S.A. and certain
affiliates.

According to this ruling, regardless of the actual damage
sustained that resulted in the underlying claim, Grupo Fertinal
has been awarded approximately US$275 million under the policy,
plus consequential damages of US$25 million.

ING Comercial America is studying the ruling and intends to
appeal.

ING expects that, after the final outcome of this judicial
procedure, the risk in the policy will be adequately covered by
provisions taken as well as reinsurance coverage.

As has previously been announced, ING Comercial America has
been involved in a judicial procedure with Grupo Fertinal S.A.
since the hurricane 'Juliette' in September 2001 caused damage
to mines of Fertinal in the Mexican state of Baja California
Sur. The dispute involves what amounts are due for certain
hurricane-related damages under the insurance policy issued to
Fertinal.  

ING is a global financial institution of Dutch origin offering
banking, insurance and asset management to over 60 million
private, corporate and institutional clients in over 50
countries. With a diverse workforce of about 113,000 people,
ING comprises a broad spectrum of prominent companies that
increasingly serve their clients under the ING brand.

PRESS ENQUIRIES:  ING Group, The Netherlands
                  Dailah Nihot
                  Tel: +31 20 541 6516
                  URL: dailah.nihot@ing.com

                  ING Americas, USA,
                  Dianne Bernez
                  Tel: +1 770 618 3910
                  URL: Dianne.Bernez@us.ing.com



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

MILLICOM INTERNATIONAL: IFC Provides $15M to Paraguayan Unit
------------------------------------------------------------
The International Finance Corporation, the private sector arm
of the World Bank Group, will provide $15 million to Telefonica
Celular del Paraguay S.A. (Telecel), a subsidiary of Millicom
International Cellular S.A., to help upgrade and expand the
company?s cellular telecommunications network in Paraguay.
IFC?s financing will encourage further development of the
country?s communications sector while supporting private
participation in infrastructure projects.

?IFC is pleased to have another opportunity to develop its
relationship with Millicom, one of the first telecommunications
operators focusing exclusively on emerging markets. This
investment demonstrates that telecommunications services can be
provided effectively by the private sector, and it should serve
to encourage other foreign lenders and investors to reenter the
market in Paraguay,? said Mohsen Khalil, Director of IFC?s
Global Information and Communication Technologies Department.

Atul Mehta, IFC?s Director for the Latin America and Caribbean
region, said, ?We are very pleased to make this investment in
Telecel. It reflects our dual objectives of supporting the
development of Paraguay's private sector and its
infrastructure."

Telecel is the leading telecommunications operator in Paraguay,
offering nationwide mobile telephony services and Internet
access, as well as public telephony services in rural areas.
?Telecel is in the process of building a nationwide overlay to
our existing network, in order to provide customers with
improved access and services. Our company will finance these
investments from our operating cash flow and this $15 million
loan from IFC,? said Ricardo Maiztegui, General Manager of
Telecel.

Telecel was awarded its license to provide mobile services in
1991, and it began commercial operations the following year.
The company has since been awarded additional licenses to
provide dial-up and broadband Internet access, as well as
public telephony services. The company is owned 96 percent by
Millicom International Cellular S.A. and 4 percent by La
Estrella Solitaria S.A., a holding company incorporated in
Paraguay with interests in construction, real estate, and
telecommunications.

CONTACT: Millicom International Cellular S.A.
         Phone: 352 27 759 101
         Fax: 352 27 759 359
         URL: http://www.millicom.com



DORAL FINANCIAL: Elects John A. Ward III as Non-Exec Chairman
-------------------------------------------------------------
Doral Financial Corporation (NYSE:DRL - News), a diversified
financial services company, today announced that the Board of
Directors has unanimously elected John A. Ward, a highly
experienced professional in the financial services, banking and
mortgage industries, as non-executive Chairman of the Doral
Board. Mr. Ward's addition to the Board underscores the
Company's commitment to strong corporate governance and
independence with respect to both the Company's and
management's performance.

Mr. Ward's prior experience includes serving as Chairman and
CEO of American Express Bank from 1996 until 2000. Prior to
joining American Express, Mr. Ward was an executive for 27
years at The Chase Manhattan Bank, during which time he served
as CEO of Chase Bankcard Services and President and CEO of
Chase Personal Financial Services, a nationwide retail mortgage
and home equity lender. He also serves as an independent
director of several boards of directors of publicly held
companies.

Mr. Ward will work closely with Salomon Levis who, in turn,
will dedicate his full time as Chief Executive Officer to
further expand Doral's franchise in Puerto Rico and the U.S.
mainland. Zoila Levis will continue her responsibilities as
President and Chief Operating Officer.

Mr. Levis stated, "This action by our Board of Directors serves
the best interests of Doral and its shareholders. First, the
separation of the office of Chairman of the Board from that of
Chief Executive Officer is an important element in ensuring the
most effective corporate governance system at Doral. Second, it
will allow me to focus my full energies on strengthening
further the Doral franchise and pursuing new business
opportunities for the Company in Puerto Rico and the U.S.
mainland. Third, with John Ward assuming the role of non-
executive Chairman, Doral, its Board, and shareholders will
benefit from enhanced industry experience and independent
objectivity regarding management, business strategy, controls
and procedures, and performance.

"I look forward to working closely with John, whose experience
in the financial services sector, which includes familiarity
across a range of operational environments makes him the right
person to assume the post of non-executive Chairman of Doral.
As shown with the recent appointment of highly-respected banker
Antonio F. Faria, John's election further underscores the
strength of our Company in attracting highly talented
professionals. As we move forward to bring the restatement
process to a conclusion and, in turn, adapt our business model,
John's judgment, strategic expertise and independence should
prove invaluable."

Mr. Ward stated, "I am convinced that Doral is a strong company
with highly attractive market positions and the potential to
build substantial value as a business. I am confident that I
will be able to draw upon my years of experience in the
wholesale and retail financial services markets to add value to
Doral. The priority for me in my role with Doral is to make
sure on behalf of the Board and shareholders that management is
pursuing a sound business strategy, that performance goals by
the Corporation are being realized, and that, in executing its
strategy, Doral is enhancing its long term value for
shareholders."

Doral Financial Corporation, a financial holding company, is
the largest residential mortgage lender in Puerto Rico, and the
parent company of Doral Bank, a Puerto Rico commercial bank,
Doral Securities, a Puerto Rico based investment banking and
brokerage firm, Doral Insurance Agency, Inc. and Doral Bank,
FSB, a federal savings bank based in New York City.

CONTACT:  DORAL FINANCIAL CORPORATION
          Richard F. Bonini, 212-329-3729
                  or
          Lucienne Gigante, 212-329-3733



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

BANCO LA GUAIRA: Fogade Moves to Recover $69M in Lost Capital
-------------------------------------------------------------
Loan guarantee fund Fogade has filed a claim against the
representatives of Banco La Guaira to recoup some VEB183
billion (US$69.4mn) owed in capital and interest resulting from
the country?s financial crisis in 1994.

But, according to Business News Americas, analysts are doubtful
if the entity can collect any money since the assets of Banco
La Guaira are already in the hands of Fogade.

"If the lawsuit was against the former shareholders, maybe the
story would be different," a Fitch Ratings' analyst was quoted
as saying.

The 1994 crisis in Venezuela resulted in 13 banks being closed
down, while larger banks in the system expanded by absorbing
the majority of deposits held by defunct banks.

Banco La Guaira is one of the banks that were intervened during
the crisis.


ROYAL SHELL: Required to Pay $131M in Unpaid Taxes
--------------------------------------------------
Venezuela's tax agency Seniat ordered oil giant Royal Dutch
Shell Group (RD SC) to pay US$131 million in unpaid taxes owed
from the years 2001 through 2004. The move is part of a
clampdown on alleged tax avoidance by foreign firms, which
according to Venezuelan authorities, owe up to US$3 billion in
unpaid taxes.

President Chavez has sought to maximize income from foreign-
held contracts. His government is reviewing all foreign
investment in the mining industry to see if it provides maximum
benefits to the country.

Seniat also seized computer equipment from the offices of U.S.
oil company Chevron Corp. on Thursday for its alleged refusal
to hand over information related to its tax paying obligations,
tax agency officials said in a statement late in the day.
Seniat staffers had been asking for the information for the
past 15 days, the statement noted.



                            ***********


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
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Sheryl Joy P. Olano, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
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