TCRLA_Public/050719.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A
  
           Tuesday, July 19, 2005, Vol. 6, Issue 141
  
                            Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Ups Passenger Traffic in 1H05  
AEROLINEAS ARGENTINAS: Additional Route Beginning in October
BANCO GALICIA: Tarjeta Naranja Shareholders OK $50M Bond Issue
EDELAP: Revised Government Contract Includes Rate Hike
LA ESTIBADORA: Court Orders Asset Liquidation

SIDERAR: Fires Up Briquette Plant as Part of Expansion Plan
THE AMERICAN FOOD: To Present Settlement Proposal to Creditors
TUNGHAI S.R.L.: Court Designates Trustee for Liquidation


B R A Z I L

MRS LOGISTICA: BNDES Funds $109M to Buy 716 Cargo Railcars  
TELEMAR: Announces Fixed-Mobile Service Rate Increase
TELEMAR: Details Rational for Gamecorp Investment


M E X I C O

EMPRESAS ICA: Shareholders Approve Equity Capital Increase
GRUPO ELEKTRA: 2004 Form 20-F Filing Still Delayed
GRUPO IUSACELL: Reconciliation to U.S. GAAP Still Incomplete
GRUPO MEXICO: Fitch Announces Credit Analysis of Company, Units  
LUZ Y FUERZA: Reschedules Bidding for 14 Natgas-Fired Projects

SATMEX: US Judge Sets Hearing Date, Bankruptcy Venue Undecided
TV AZTECA: BNY To Terminate ADRs, NYSE to Suspend Trading
TV AZTECA: Provides English Translation of Annual Report


P A R A G U A Y

ESSAP: Consultants to Scrutinize Economic, Financial Status


U R U G U A Y

CREDIT URUGUAY: Moody's Upgrades National Scale Rating  
NBC: Upcoming Privatization Draws 2 Bidders
PLUNA: Venezuelan Officials Look Into Airline's Finances, Ops


V E N E Z U E L A

PDVSA: Finance Unit Fails to File SEC Annual Report On Time
PDVSA: Documents, Computer Equipment Stolen in Break-In


     - - - - - - - - - -


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

AEROLINEAS ARGENTINAS: Ups Passenger Traffic in 1H05  
----------------------------------------------------
Aerolineas Argentinas announced Friday that it transported  
8.57% more passengers in domestic flights in the first half of  
this year than in the same period in 2004, up to 2,119,488 from  
last year's 1,952,107 until June 30, 2005.  

With regards to the total passengers transported - domestic,  
regional and international flights - the increase for the first  
six months was 6.95% compared to last year, having served a  
total of 3,060,396 passengers this year versus 2,861,564 during  
the same period in 2004.

These figures for the first half of the year clearly show that  
2004 annual totals (4,098,137 passengers in domestic flights  
and a total 5,919,797 for all routes covered by the Company)  
will be exceeded.  

Also, occupation coefficients in domestic flights, always for  
the first half of the year, are higher than 75%, peaking to  
more than 84% in January, February and March 2005.  

Passengers growth in Aerolineas Argentinas flights is basically  
a consequence of a strong company presence in the national and  
international markets and also of the incorporation of new  
airliners to the domestic and international fleets.

CONTACT: AEROLINEAS ARGENTINAS  
         Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA  
         Phone: (54-11) 4310-3000  
         Fax: (54-11) 4310-3585  
         E-mail: volar@aerolineas.com.ar  
         Web site: www.aerolineas.com.ar


AEROLINEAS ARGENTINAS: Additional Route Beginning in October
------------------------------------------------------------
Aerolineas Argentinas announced on Friday that it will start  
operating the route Buenos Aires-Barcelona-Buenos Aires on Oct.  
4, 2005, with a frequency of two weekly flights without  
stopover. With departures on Tuesdays and Thursdays and returns  
on Wednesdays and Fridays with our A340, this route is already  
available for passengers through the Company's system.

Furthermore, the Company announced that it will not perform a  
pre check-in with more than 24 hours prior to the starting of  
the flight, as a consequence to the Emergency Amendment EA  
1546-01-17D issued by TSA (Administration for Transport Safety  
of the United States of America). This is true to all companies  
operating to/from the USA since July 18, 2004.

On July 12, 2005, the Company disclosed that the baggage  
allowance system for flights from Brazil to Europe (with or  
without stops) has been modified, leaving the current Weight  
System for the Pieces Concept (PC), which enables the  
transportation of two 32-kg pieces each. This is in accordance  
to DAC BRASIL standard No. CT-011.

CONTACT: AEROLINEAS ARGENTINAS  
         Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA  
         Phone: (54-11) 4310-3000  
         Fax: (54-11) 4310-3585  
         E-mail: volar@aerolineas.com.ar  
         Web site: www.aerolineas.com.ar


BANCO GALICIA: Tarjeta Naranja Shareholders OK $50M Bond Issue
--------------------------------------------------------------
Shareholders of Tarjeta Naranja, the credit card arm of Banco  
de Galicia y Buenos Aires S.A., approved on July 14 a plan to  
issue US$50 million worth of five-year bonds, reports Business  
News Americas.

According to Julian Gonzalez, senior consultant at Deloitte  
Argentina's corporate finance, proceeds of the operation will  
be used to finance the unit's ongoing business operations as  
well as its efforts to gain independence from Grupo Galicia.

"Tarjeta Naranja has begun a funding process in the capital  
market via bond issues as well as structured debt and different  
modalities of financial trust funds, both short and mid-term,"  
said Mr. Gonzalez.

Earlier this year, Tarjeta Naranja sold ARS30 million  
(US$10.2mn) of commercial papers in an operation that saw  
demand from retail and institutional investors reach ARS62.3  
million.  

Banco de Galicia is Grupo Galicia's main asset and is  
Argentina's largest private sector commercial bank with US$7.8  
billion in assets at the end of March.
  
CONTACT:  Banco De Galicia Y Buenos Aires  
          Tte Gral Juan D Peron 407  
          Buenos Aires  
          Argentina  
          C1038AAI  
          Phone:  11 6329 0000  
          Fax:  11 6329 6100


EDELAP: Revised Government Contract Includes Rate Hike
------------------------------------------------------
Power distributor Edelap has renegotiated its contract with the  
Argentine government, reports Business News Americas. The new  
contract grants Edelap an average rate hike, retroactive from  
May 1, of 15% for nonresidential users, who remain shielded  
from higher prices.

This is the first tariff increase approved by congress for a  
power utility company since utility deals were derailed by a  
government rates freeze in January 2002.

While the rate hike will have a modest inflation effect, it  
paves the way for rate hikes for bigger power distributors in  
Buenos Aires, Edenor (DNOR.BA) and Edesur (DSUR.BA).

Edelap signed a letter of agreement for the new deal with  
government negotiators in November, and Congress approved the  
new contract two months ago after it went before a public  
hearing.

Edelap, controlled by U.S.-based AES Corp. (AES), serves some  
280,000 users in and around the city of La Plata just south of  
the capital, Buenos Aires.  


LA ESTIBADORA: Court Orders Asset Liquidation
---------------------------------------------
La Estibadora S.A. prepares to wind-up its operations following  
the bankruptcy pronouncement issued by Court No. 2 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. Ana Maria  
Blugerman as trustee. Ms. Blugerman will be reviewing  
creditors' proofs of claim until July 25, 2005. The verified  
claims will serve as basis for the individual reports to be  
presented for court approval on Sep. 12, 2005. The trustee will  
also submit a general report of the case on Oct. 25, 2005.

Clerk No. 3 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. Ana Maria Blugerman, Trustee
         Parana 774  
         Buenos Aires


SIDERAR: Fires Up Briquette Plant as Part of Expansion Plan
-----------------------------------------------------------
Argentina's largest flat steelmaker Siderar has commenced  
operations at a new briquette manufacturing plant, reports  
Business News Americas. Each tonne of steel produced generates  
some 110k of fine steel waste, which is not suitable for  
loading into steel processing or blast furnaces due to its  
size. The new plant, according to Siderar, is specially  
designed to recover this fine waste and convert it into  
briquettes, which will in turn supply Siderar's three  
converters.

"The major benefit [of the plant] is that it replaces part of  
scrap consumption and prevents waste from piling up," said a  
Siderar executive.

Siderar claims the process will also be environmentally  
beneficial, as it will reduce pollution.

The new plant is part of Siderar's US$560mn, five-year  
expansion program unveiled at end-2004. With the plan, the  
Company aims to increase production capacity to 3.5Mt/y from  
2.4Mt/y.

Siderar is owned by Argentine industrial conglomerate Techint  
(TCNT.YY), which in May announced plans to consolidate its flat  
and steel holdings into a new company. Siderar will be part of  
this new subsidiary, as will Sidor of Venezuela and Mexican  
steelmaker Hylsamex (HYLSAMX.MX), which Techint is buying from  
conglomerate Alfa (ALFA.MX).  
  
CONTACT:  Siderar S.A.I.C.  
          Leonardo Stazi (CFO)  
          Pablo Brizzio (Financial Manager)  
          Guillermo Etchepareborda (IR)  
          54 (11) 4018-2308 / 2434 / 2752  
          URL: http://www.siderar.com


THE AMERICAN FOOD: To Present Settlement Proposal to Creditors
--------------------------------------------------------------  
An Informative Assembly between The American Food Company  
S.R.L. and its creditors is scheduled on October 28, 2005. The  
assembly is the final stage of reorganization where the  
settlement proposal is presented to the Company's creditors for  
approval.

The American Food Company S.R.L. began reorganization following  
the approval of its petition by Court No. 8 of Cordoba's civil  
and commercial tribunal. The opening of the reorganization  
allowed the Company to negotiate a settlement with its  
creditors in order to avoid a straight liquidation.

The court appointed a trustee to oversee the reorganization  
proceedings. He verified claims of the Company's creditors  
until Feb. 11, 2005, and presented the verified claims in court  
as individual reports on March 29, 2005.

The trustee also submitted a general report, essentially  
auditing the Company's accounting and business records as well  
as summarizing important events pertaining to the  
reorganization, on May 13, 2005.


TUNGHAI S.R.L.: Court Designates Trustee for Liquidation
--------------------------------------------------------  
Buenos Aires accountant Graciela Marta Lema de Muino was  
assigned trustee for the liquidation of local company Tunghai  
S.R.L., relates Infobae.  

Ms. de Muino will verify creditors' claims until Aug. 26, 2005,  
the source adds. After that, she will prepare the individual  
reports, which are to be submitted in court on Oct. 7, 2005.  
The submission of the general report should follow on Nov. 18,  
2005.  

The city's civil and commercial Court No. 20 handles the  
Company's case. Clerk No. 39 assists the court with the wind-up  
proceedings.  
  
CONTACT: Ms. Graciela Marta Lema de Muino, Trustee
         Basualdo 1064  
         Buenos Aires
  
  

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

MRS LOGISTICA: BNDES Funds $109M to Buy 716 Cargo Railcars  
----------------------------------------------------------
The board of Banco Nacional de Desenvolvimento Economico e  
Social (BNDES) approved a financing to MRS Logistica S.A., in  
the amount of R$109 million. The operation, destined to the  
acquisition of 716 railcars from Amsted-Maxion for transport of  
cargo, has the purpose of meeting the growing demand for iron  
ore by steel companies in Southeast.

In the ambit of Finame Line, which finances machinery and  
equipment manufactured in Brazil, the credit operation was  
approved at the indirect modality, with participation of two  
financing agents - Unibanco and Banco Votorantim, which will  
transfer R$ 88 million and R$21 million, respectively.  

The railway - MRS Logistica S.A. was incorporated in August  
1996 to compete in the privatization of the Southeast Network  
of Rede Ferroviaria Federal, which interlinks the States of Rio  
de Janeiro, Minas Gerais and Sao Paulo. The main shareholders  
of the Company are the mining company MBR and the steel company  
CSN, both of which holding 32% of total capital. Usiminas and  
Vale do Rio Doce hold 10% each; Ultrafertil, 4%; Gerdau, 1%;  
and the remaining 11% are pulverized among other minor  
shareholders.  

The Company operates 1,687 km of rails, which facilitate the  
process of transport and distribution of cargoes in a region  
that concentrates about 65% of national GDP and where the  
Brazilian leading industrial complexes are installed. Through  
MRS railway network is possible to reach the ports of Sepetiba,  
in Rio de Janeiro, and Santos, in Sao Paulo.  

Transport - The core of MRS railway activities is in the  
transport of general cargoes, such as ore, finished steel  
products, coal, cement, bauxite, agriculture products, coke and  
containers.  

A big portion of iron ore is transported from mines in the iron  
quadrilateral region next to Belo Horizonte and shipped to be  
exported through the Port of Sepetiba. The iron ore is  
transported from these mines to supply CSN, Cosipa and Gerdau  
Acominas plants, which are also supplied by MRS in the release  
of its steel products.  

The delivery schedule of the new wagons will already begin in  
current month, and will terminate in December, with delivery  
average batches over 100 units per month.

CONTACTS: Eduardo Cassinelli  
          Treasurer  
  
          Marco Andre Guimaraes  
          Financial Manager  
  
          Maria Lucia Silveira  
          Financial Analyst  
  
          Praia de Botafogo,  
          228, 1201-E  
          22250-906 - Rio de Janeiro  
          Tel: 55-21-2559-4600  
          Fax: 55-21-2552-2635  
          daf@mrs.com.br


TELEMAR: Announces Fixed-Mobile Service Rate Increase
-----------------------------------------------------
Tele Norte Leste Participacoes (NYSE:TNE) announced Fridday  
that ANATEL approved the proposed rate adjustment of 7.99% for  
outgoing calls from fixed-line to mobile lines, known as VC1.  
The rate increase, which affects TNE's subsidiary Telemar Norte  
Leste (TMAR), will be effective as of July 17, 2005.

Mobile interconnection rates (VU-M) charged by mobile companies  
- including TNL PCS, or Oi - to complete VC1 calls terminated on  
their networks are also being increased by 4.5%.

CONTACT: Tele Norte Leste Participacoes S.A.  
         Phone: (212) 815-2921  
         Fax: (212) 571-3050  
         Web Site: http://www.telemar.com.br/  
  
         Investor Relations  
         Email: invest@telemar.com.br  
         Roberto Terziani 55 21 3131 1208  
         IR Team 55 21 3131 1313 - 1317  
         Fax: 55 21 3131 1155  
  
         The Global Consulting Group  
         Kevin Kirkeby (kkirkeby@hfgcg.com)  
         Tel: 1-646-284-9416  
         Fax: 1-646-284-9494


TELEMAR: Details Rational for Gamecorp Investment
-------------------------------------------------
Fixed line operator Telemar moved to defend its decision not to  
inform the country's securities regulator CVM of its BRL5  
million (US$2 million) investment in Gamecorp, reports Business  
News Americas. Gamecorp was created in 2004 with capital of  
BRL5.2 million, contributed almost entirely by Telemar. The  
operator has a 35% ownership while President Luiz Inacio Lula  
da Silva's son, Fabio Luis Lula da Silva, who invested  
BRL200,000, has 65% control.

The CVM asked Telemar management why they did not disclose to  
the financial markets their decision to approve the investment  
in Gamecorp. Under the law, any such decision must be  
registered in the minutes of the relevant meeting.

Telemar told the CVM that it did not divulge the investment  
because it considered the amount small and of a "strategic and  
operational nature." The value of the investment is only 0.01%  
of the company's annual revenues, Telemar said.

Telemar added that at the time of its decision, it did not know  
that Lula da Silva Jnr was involved, because of a  
confidentiality agreement.

CONTACT: Tele Norte Leste Participacoes S.A.  
         Phone: (212) 815-2921  
         Fax: (212) 571-3050  
         Web Site: http://www.telemar.com.br/  
  
         Investor Relations  
         Email: invest@telemar.com.br  
         Roberto Terziani 55 21 3131 1208  
         IR Team 55 21 3131 1313 - 1317  
         Fax: 55 21 3131 1155  
  
         The Global Consulting Group  
         Kevin Kirkeby (kkirkeby@hfgcg.com)  
         Tel: 1-646-284-9416  
         Fax: 1-646-284-9494  



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

EMPRESAS ICA: Shareholders Approve Equity Capital Increase
----------------------------------------------------------
Shareholders at Mexico's largest construction company ICA  
(NYSE; BMV: ICA) agreed in an extraordinary assembly held  
Thursday to increase capital by up to US$230 million. This will  
be done by issuing a maximum of 1.14 billion new shares to be  
offered publicly in both Mexico and abroad.  

According to an ICA source, the price of the new shares will be  
set according to market conditions and this will be done before  
a deadline of August 12.

At the same time, shareholders also approved a six-for-one  
reverse share split, to be carried out after the capital  
increase. Shareholders would receive one new share for every  
six shares held.

The money generated by the public share offering will be used  
for working capital and to bolster the position of the Company  
as it bids for new projects.

The Ixe brokerage said in a report that the capital increase,  
while dilutive to shareholders, could have a positive effect on  
profitability as ICA has identified significant projects to bid  
on over the next three years.

ICA was founded in Mexico in 1947. ICA has completed  
construction and engineering projects in 21 countries. ICA's  
principal business units include civil construction and  
industrial construction. Through its subsidiaries, ICA also  
develops housing, manages airports, and operates tunnels,  
highways, and municipal services under government concession  
contracts and/or partial sale of long-term contract rights.  
  
CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.  
         Col. Escandon Del Migual Hidalgo  
         Mexico City, 11800  
         Mexico  
         Phone: 525-272-9991  
         URL: http://www.ica.com.mx


GRUPO ELEKTRA: 2004 Form 20-F Filing Still Delayed
--------------------------------------------------
Grupo Elektra S.A. de C.V. (" The Company"; BMV: ELEKTRA*;  
NYSE: EKT; Latibex: XEKT), Latin America's leading specialty  
retailer, consumer finance and banking and financial services  
company noted on Friday that the preparation of its 2004 Form  
20-F continues to be delayed and that it cannot reasonably  
estimate when it will be in a position to file its Form 20-F  
with the U.S. Securities and Exchange Commission (SEC).  

On July 1, 2005, the Company announced that, pursuant to Rule  
12b-25, it had filed with the SEC a notice of late filing of  
its Annual Report on Form 20-F for the fiscal year ended  
December 31, 2004.  

The Company disclosed on Friday that it furnished to the U.S.  
Securities and Exchange Commission (SEC) on Form 6-K an English  
translation of its Spanish-language, Mexican Annual Report for  
the fiscal year ended December 31, 2004.  

As was previously announced, on June 30, 2005, the Company  
filed its Mexican Annual Report for 2004 with the Mexican  
National Securities and Banking Commission as required by  
Mexican law. That report includes Grupo Elektra' audited  
consolidated financial statements for the three fiscal years  
ended December 31, 2004, which were prepared in accordance with  
Mexican GAAP and certified by the Company's independent  
auditors Castillo Miranda y Compania, S.C.   

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

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



GRUPO IUSACELL: Reconciliation to U.S. GAAP Still Incomplete
------------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL, NYSE: CEL), noted on  
Friday that it has not yet concluded the reconciliation to U.S.  
GAAP required for this Annual Report and it cannot reasonably  
estimate when it will be in a position to file the Form 20-F.  
The Company also announced on Friday filed with the U.S.  
Securities and Exchange Commission (SEC) a free translation in  
English of its Mexican Annual Report for the year ended  
December 31, 2004, on Form 6-K.  

A Notification of late filing of Annual Report on Form 20-F was  
filed with the U.S. Securities and Exchange Commission by the  
Iusacell, which it announced on July 1, 2005.  

As was previously announced, on June 30, 2005, the Company  
filed its Spanish-language annual report with the Mexican  
National Securities and Banking Commission as required under  
Mexican law. That report included Iusacell's audited  
consolidated 2004 financial statements prepared in accordance  
with Mexican GAAP. Both, the Spanish-language annual report and  
its English translation are available at Iusacell's web site  
http://www.iusacell.com.mx.   

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a  
wireless cellular and PCS service provider in Mexico  
encompassing a total of approximately 92 million POPs,  
representing approximately 90% of the country's total  
population.  

Independent of the negotiations towards the restructuring of  
its debt, Iusacell reinforces its commitment with customers,  
employees and suppliers and guarantees the highest quality  
standards in its daily operations offering more and better  
voice communication and data services through state-of-the-art  
technology, such as its new 3G network, throughout all of the  
regions in which it operates.  

CONTACT: Grupo Iusacell, S.A. de C.V.  
         Jose Luis Riera K.
         Chief Financial Officer
                   or  
         J. Victor Ferrer
         Finance Manager
         E-mail: vferrer@iusacell.com.mx  
         Phone: 5255-5109-5927
         URL: http://www.iusacell.com
     

GRUPO MEXICO: Fitch Announces Credit Analysis of Company, Units  
---------------------------------------------------------------
Fitch Ratings has released a credit analysis of Grupo Mexico,  
S.A. de C.V. (Grupo Mexico) and its subsidiaries. This report  
explains Fitch's rating rationale for the six-rated entities,  
including Grupo Mexico, Americas Mining Corporation (AMC),  
Southern Peru Copper Corporation (SPCC), Minera Mexico, S.A. de  
C.V. (Minera Mexico), Asarco, Inc. (Asarco), and Grupo  
Ferroviario Mexicano, S.A. de C.V. (GFM). The report also  
includes an analysis of the companies' financial and business  
positions.

Grupo Mexico is a holding company whose copper mining assets  
are aggregated under AMC. Through AMC, Grupo Mexico owns a 75%  
stake in SPCC, one of the world's lowest cost copper producers.  
SPCC's operating assets are located in Peru and Mexico, as SPCC  
now owns 99% of Minera Mexico, Mexico's largest mining group.  
In 2004, SPCC, on a stand-alone basis, accounted for 45% of  
consolidated sales of 868,000 tons of refined copper, and  
Minera Mexico accounted for 37%. GM also owns 100% of Asarco in  
the U.S., which accounted for 18% of consolidated copper sales  
volumes. Grupo Mexico also owns a major railway in Mexico via  
its GFM subsidiary. The railway connects Mexico's major cities  
and six seaports and has five points of connection along the  
U.S. border. Grupo Mexico's 2004 revenues of $4.2 billion were  
generated from sales of copper (61%), molybdenum (15%),  
transportation services, (15%), silver (3.0%), zinc (3.0%),  
gold (1.0%), and sulphuric acid (1%). In 2004, AMC generated  
about 89% of Grupo Mexico's consolidated EBITDA, while GFM  
generated about 11% of the group's EBITDA.

CONTACT:  Anita Saha, CFA 312-368-3179, Chicago
          Joseph Bormann, CFA 312-368-3349, Chicago
          Alberto Moreno ?8335-7179, Monterrey, Mexico

MEDIA RELATIONS: Brian Bertsch 212-908-0549, New York


LUZ Y FUERZA: Reschedules Bidding for 14 Natgas-Fired Projects
--------------------------------------------------------------
State-owned power distributor Luz y Fuerza del Centro (LFC) has  
pushed back the dates involved in the process to award a  
contract to build fourteen 32MW natural gas-fired projects in  
the Federal District (DF) and Edomex, reports Business News  
Americas.

Originally, technical bids were due to be opened July 13,  
economic bids on August 10, and contracts to be awarded later  
in August. The Company is yet to announce the new dates when  
these events would take place. According to LFC sources,  
several potential bidders had obtained bidding rules.

Construction of all 14 plants will begin immediately after the  
contracts are awarded and operations are set for end-2006 or  
early 2007. State oil company Pemex will supply the projects  
with natural gas.

Over the last few years, LFC has struggled to develop much-
needed generation projects to avoid the system from collapsing  
in high-demand areas in coming years due to lack of resources.


SATMEX: US Judge Sets Hearing Date, Bankruptcy Venue Undecided
--------------------------------------------------------------
A US judge has scheduled for July 29 a hearing to decide  
whether to go ahead with a bankruptcy process under US law for  
financially troubled Mexican satellite operator Satelites  
Mexicanos SA (Satmex), reports Business News Americas. Judge  
Robert Drain hinted a ruling could be handed down either on the  
same day or several days later.

Satmex, which defaulted on more than US$520 million of bonds  
issued in the U.S., is fighting U.S. creditors over whether the  
Company's restructuring should be supervised by a US or Mexican  
court.  

At the end of May, US creditors representing at least US$379  
million of Satmex's defaulted debt filed for chapter 11  
bankruptcy in a US court to restructure the Company's finances.

At the end of June, Satmex filed for bankruptcy under Mexican  
law, a process known as concurso mercantil, arguing that a US  
bankruptcy deal would be a threat to "Mexican sovereignty and  
national security" given that the Mexican government grants the  
orbiting rights and the company has no base in the US.

Last week, Satmex filed a petition in a New York court to have  
the US bankruptcy filing dismissed.

Judge Drain gave creditors until 4pm EST on July 26 to present  
their counter arguments to Satmex's petition for dismissal of  
the US bankruptcy filing.

Satmex will in turn have until July 28 to respond to those  
arguments in a document no longer than 10 pages.

CONTACT: SATELITES MEXICANOS, S.A. DE C.V.   
         Blvd. M. Avila Camacho 40, piso 24   
         Colonia Lomas de Chapultepec  
         11000 Mexico, D.F., Mexico  
         PHONE: 55-5201-0898


TV AZTECA: BNY To Terminate ADRs, NYSE to Suspend Trading
---------------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:  
XTZA), one of the two largest producers of Spanish-language  
television programming in the world announced Friday that, as  
was previously informed, on July 18, 2005, the Bank of New York  
(BONY), at the Company's instruction, will terminate the  
Company's American Depositary Receipts (ADRs) program and, as a  
result, the New York Stock Exchange (NYSE) will suspend trading  
of its ADRs. As of such date, the Company's ADRs will not trade  
on the NYSE.

As was previously announced, at an Extraordinary Shareholders'  
Meeting held on June 1, 2005, 99.85% of TV Azteca's  
shareholders approved the termination of the ADR program, after  
an analysis and discussion of the costs and benefits of  
continued listed in the U.S. capital markets.

As has been detailed, ADR holders will have 60 days to exchange  
their ADRs for CPOs traded on the Mexican Stock Market. Upon  
the expiration of the 60- day period, BONY will be allowed to  
sell the CPOs underlying the ADRs that were not surrendered and  
distribute the proceeds of such sale to holders.

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

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

         Rolando Villarreal
         Tel: 55-1720-0041
         E-mail: rvillarreal@gruposalinas.com.mx

         Press Relations:
         Tristan Canales
         Tel: 55-1720-1441
         E-mail: tcanales@gruposalinas.com.mx

         Daniel McCosh
         Tel: 55-1720-0059
         E-mail: dmccosh@tvazteca.com.mx


TV AZTECA: Provides English Translation of Annual Report
--------------------------------------------------------
TV Azteca, S.A. de C.V. has furnished to the US Securities and  
Exchange Commission (SEC) on Form 6-K an English translation of  
its Spanish-language, Mexican Annual Report for the fiscal year  
ended December 31, 2004. As was previously announced, on June  
30, 2005, the company filed its Mexican Annual Report for 2004  
with the Mexican National Securities and Banking Commission as  
required by Mexican law. That report includes TV Azteca's  
audited consolidated financial statements for the three fiscal  
years ended December 31, 2004, which were prepared in  
accordance with Mexican GAAP and certified by the company's  
independent auditors Salles, Sainz-Grant Thornton, S.C.

On July 1, 2005, the company announced that, pursuant to Rule  
12b-25, it had filed with the SEC a notice of late filing of  
its Annual Report on Form 20-F for the fiscal year ended  
December 31, 2004. The company noted Friday that the  
preparation of its 2004 Form 20-F continues to be delayed and  
that it cannot reasonably estimate when it will be in a  
position to file its Form 20-F with the SEC



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

ESSAP: Consultants to Scrutinize Economic, Financial Status
-----------------------------------------------------------
A technical team, which consists of representatives from  
various government institutions, is set to examine information  
on the economic and financial situation of troubled state water  
utility Essap, reports Business News Americas. Mr. Manuel Lopez  
Cano, the head of Essap who presented the information to  
finance ministry officials, also outlined the problems facing  
the water utility regarding illegal connections and the firm's  
pricing policy.

The technical team, headed by a representative from the public  
works ministry, Jorge Von Horoch -head of the economic  
department at the finance ministry- will analyze and verify the  
figures presented by Lopez Cano, prioritize the challenges that  
must be faced and examine the courses of action to be taken. It  
will then hand the department of economy a final report, which  
the latter will use to decide how to act.

Already, minister of public works Jose Alberto Alderete has  
ruled out the "savage privatization" of Essap, saying the idea  
of president Nicanor Duarte Frutos was to inject private  
capital into the firm.

Essap is struggling with US$170 million in debt. The Company's  
current financial obligations have curtailed needed investment.  



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U R U G U A Y
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CREDIT URUGUAY: Moody's Upgrades National Scale Rating  
------------------------------------------------------
Moody's Investors Service upgraded the national scale rating  
for local currency deposits of Credit Uruguay Banco (formerly  
Banco A.C.A.C.) to Aa2.uy from Aa3.uy. Moody's also confirmed  
the bank's global local-currency deposit rating of Ba1. Both  
ratings have a stable outlook. This rating action concludes the  
review for possible upgrade of Credit Uruguay Banco's local  
currency ratings initiated in April 2005. The bank's foreign-  
currency ratings (Caa1/NP/Ba2.uy) and bank financial strength  
rating (E) were unaffected by this action and are affirmed.

Moody's said the upgrade of the national scale rating for local  
currency deposits reflects Credit Uruguay's status as a now  
wholly-owned subsidiary of Credit Agricole S.A., of France, and  
incorporates the bank's improving financial position and  
integration with the parent bank as it refocuses its operations  
in Uruguay.

Moody's confirmed, with a stable outlook, Credit Uruguay's  
global local-currency deposit rating of Ba1, in an indication  
of the challenges that local management faces to reposition the  
bank's franchise in an environment of increasing competition  
within a still-stagnant banking market in Uruguay. The rating  
agency also said it will continue to follow the integration  
process with Credit Agricole as well as developments with  
respect to its new marketing objectives in the region.

The following ratings were affected:

Credit Uruguay Banco S.A.

- Long- Term Global Local- Currency Deposits: Ba1 (confirmed)

- National Scale Rating for Local Currency Deposits: Aa2.uy  
upgraded from Aa3.uy


NBC: Upcoming Privatization Draws 2 Bidders
-------------------------------------------
The Uruguayan government's plan to privatize state bank Nuevo  
Banco Comercial (NBC) by the end of the year has attracted the  
interest of two groups. According to Business News Americas,  
Chilean financial services group Corp Group, which is  
controlled by Chilean businessman Alvaro Saieh, and investment  
fund Advent International have presented proposals. The  
proposals, according to Uruguay's economy minister Danilo  
Astori, are "very serious and solid" and may be finalized in  
the short term.

"We have to study not only the figures but also the proposals'  
characteristics as well as negotiate with the bidders. If the  
process is completed successfully, we will not open another  
round of offers," Mr. Astori was quoted as saying said.

NBC was created in March 2003 from the assets of local banks  
Banco Comercial, Banco Montevideo and Banco Caja Obrera. The  
three banks were intervened and suspended as a result of a run  
on deposits during the country's financial crisis in 2002.

Uruguay's government is still in a clash with Banco Comercial's  
former owners - CSFB (NYSE: CSR), JPMorgan Chase (NYSE: JPM),  
and Dresdner. The government recently confirmed that it will  
sue the three international banks, accusing them of not  
honoring their obligations to Comercial as shareholders.

In turn, the three banks filed for new arbitration proceedings  
with the Uruguayan government at the International Chamber of  
Commerce (ICC), claiming the government did not comply with an  
ICC ruling to repay them US$120 million for a capital injection  
in Banco Comercial in 2002.


PLUNA: Venezuelan Officials Look Into Airline's Finances, Ops
-------------------------------------------------------------
Venezuelan state airline Conviasa is looking to buy a 49% stake  
in Uruguay's failing airline Pluna, said Venezuela's tourism  
ministry. According to a Dow Jones Newswires report, Venezuelan  
officials are meeting with airline representatives and  
examining the Company's finances and operations. Last week,  
Uruguayan officials disclosed that Conviasa was seeking a  
possible venture with Pluna, but noted that no decision has  
been made yet on any deal.

Uruguay's flagship airline has been considered a financial  
disappointment by shareholders. Brazilian airline Viacao Aerea  
Riograndense SA (Varig) wants to unload its 49% stake in Pluna  
as it tries to maneuver itself out of its financial  
predicament. Weighed down by BRL9.5 billion of debts, Varig  
filed for protection from creditors in a Rio de Janeiro court  
on June 17.  
  


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

PDVSA: Finance Unit Fails to File SEC Annual Report On Time
-----------------------------------------------------------
PdVSA Finance Ltd. missed the June 30 deadline to file its 2004  
annual report with the Securities Exchange Commission (SEC),  
Dow Jones Newswires reports. In a notification to the SEC, the  
Cayman Islands-based subsidiary said its report incorporates,  
by reference, parent Petroleos de Venezuela SA's annual report,  
which is still incomplete.

"PdVSA's financial reporting systems continue to suffer delays  
in the generation and preparation of financial statements," the  
filing said. "In particular, there have been delays in closing  
the year-end accounting records and in the analysis of  
accounts."  

PdVSA Finance also failed to file its 2003 annual report. Its  
2002 report was filed late on Oct. 24, 2003 due to work  
stoppage. The unit, however, presented an audited balance sheet  
on Form 6-K for the years 2003, 2004, and the first quarter of  
2005 on July 1.

PDVSA continues to cope with accounting delays stemming from a  
crippling strike in 2002 and 2003.


PDVSA: Documents, Computer Equipment Stolen in Break-In
-------------------------------------------------------
Corporacion Venezolana de Petroleo, CVP, lost documents and  
computer equipment after unknown assailants broke into its  
offices, Dow Jones reports. The officials of the Company, a  
subsidiary of Venezuelan state-oil company Petroleos de  
Venezuela (PdVSA) that handles projects with private companies,  
found their Caracas offices violated in the early Friday hours.

According to the officials, only the bottom floor of the PdVSA  
headquarters was damaged during the break in, but they are  
still trying to determine the extent of the damage. Authorities  
have been notified of the problem.



                            ***********


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

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