TCRLA_Public/050812.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, August 12, 2005, Vol. 6, Issue 159

                            Headlines


A R G E N T I N A

AGUAS ARGENTINAS: Government Confident Will Reach Suez Deal
BANCO HIPOTECARIO: Redeems $1.61M Euro-denominated Bonds Due `13
BUENOS AIRES COMMERCIAL: Trustee to Submit Individual Reports
CENTRAL PUERTO: Returns to Black in 2Q05
COMPANIA LACTEA: To Propose Settlement Plan to Creditors

FIRMEZA INMOBILIARIA: Claims Review Deadline Fixed
GRUPO GALICIA: 2Q05 Net Income, Profits Lower
JASH JORR: Court Grants Reorganization Request
KOPTOS S.A.: General Report Due for Submission Aug 26
NUEVO BANCO SUQUIA: Moody's Assigns First Time Ratings

PROYECTOS Y TENDIDOS: General Report Filing Due
TELECOM ARGENTINA: Reports P$458 Mln Net Income for 1H05


B E R M U D A

ALPHA OVERSEAS: Members Resolve to Wind Up Company
COLEY PHARMACEUTICAL: Company to be Wound Up Voluntarily
DOVER INSURANCE: Court Appoints Kempe as Liquidator
ELAN PHARMACEUTICAL: Members Resolve to Wind Up Company
FOSTER WHEELER: Announces Strong 2Q05 Financial Results

LSF-KDB: Names Robin J Mayor as Liquidator
LSF3 KIV: To Wind Up, Appoints Robin J Mayor as Liquidator
LSF3 KOREAN: Robin J Mayor Appointed as Liquidator
LSF3 SSY: To Wind Up Voluntarily, Liquidator Appointed
SSY KORELEND: Robin J Mayor to Oversee Liquidation

WORLD-WIDE HOLDINGS: To Wind Up, Mayor Appointed as Liquidator


B R A Z I L

CSN: Reports R$2.6 Billion EBITDA and a 48% Margin in 1H05
CSN: Successful in 1998 Environmental Lawsuit Defense
NII HOLDINGS: Announces Pricing of Convertible Note Offering
PRIDE INTERNATIONAL: Competitive Environment Affects Ratings


C H I L E

COEUR D'ALENE: Files Form 12b-25 with SEC on Form 10-Q Delay


J A M A I C A

SANS SOUCI: Trims Losses, Gross Revenue Up 46%


M E X I C O

BALLY TOTAL: Moody's Affirms Junk Debt Ratings
BANSI: S&P Issues Ratings, Discusses Rationale
EMPRESAS ICA: Launching New USD$200Million Equity Offering
GRUPO MEXICO: Asarco Requests Judicial Protection in the US
GRUPO MEXICO: Asarco Bankruptcy Case Summary

GRUPO MEXICO: Condemned by Steelworkers for Bankrupting Asarco
GRUPO MEXICO: Fitch Downgrades Asarco Ratings to 'C'
GRUPO MEXICO: S&P Lowers Asarco's Corporate Credit Rating
SATMEX: US Bankruptcy Court Grants Asset Protection Motion
INDUSTRIAS PENOLES: Operating Income Rises 27.8% in 1H05


P U E R T O   R I C O

DORAL FINANCIAL: Restatment Causes Form 10-Q Filing Delay


U R U G U A Y

BANCO HIPOTECARIO: Reports $51.1M Profit in 1H05


V E N E Z U E L A

EDC: Reverses Last Year's First Half Net Loss


     - - - - - - - - - -


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

AGUAS ARGENTINAS: Government Confident Will Reach Suez Deal
-----------------------------------------------------------
Talks between the government and French firm Suez are still
extremely difficult but the government is hopeful that it will
be able to hatch an agreement with Suez to renew the concession
contract of its Aguas Argentinas unit.

Federal planning minister Julio de Vido said the government has
"the greatest predisposition" to reach an agreement.

"We have 61 contracts [with privatized services] subject to
renegotiation and this is the only one with any degree of
difficulty. We always thought that this contract would not be an
exception and we still think we can reach agreement," Mr. de
Vido was quoted as saying.

Aguas Argentinas has told Uniren that it will soon give it the
independently audited financial statements demanded by the
government unit.

The Company has also put off talks on its US$600-million debt
until it can resolve more pressing issues like the Company's
investment plan.

"The debt was hindering the contract discussions," company
sources said.

Aguas Argentinas was due to make Thursday a ARS3.2-million
(US$1.1mn) payment to a trust fund for investments in works.
Failure to make the payment doesn't bode well for the relations
between the Company and the government.


BANCO HIPOTECARIO: Redeems $1.61M Euro-denominated Bonds Due `13
----------------------------------------------------------------
Banco Hipotecario SA informed securities regulator CNV (Comision
Nacional de Valores) that it redeemed last month US$1.61 million
worth of euro-denominated, long-term bonds due in 2013. The bank
said its euro denominated debt due in 2013 now totals EUR252
million.

Last month, the CNV ordered fifteen executives and senior
managers of Banco Hipotecario as well as five members of its
audit board to appear before it on Aug. 22 for an interrogation
regarding questionable payments.

Among those summoned are President Clarisa Lifsic de Estol, Vice
President Eduardo Elsztain and Chief Financial Officer Gabriel
Saidon.

The market watchdog recently completed an investigation that
revealed payments totaling more than ARS30 million pesos
($1=ARS2.865) to senior management in 2005 were not properly
disclosed or subject to the right approval process in
shareholder meetings.

The investigation dealt with bonus payments under a special
system of compensation known as SAR, which tied payments to
appreciations in share value, as well as a profit-sharing
arrangement. Among other amounts, it referred to a total outlay
of ARS10.740 million this year to Elsztain and ARS3.159 million
to Lifsic de Estol.

The regulator discovered that the SAR payments could not be
onsidered "advances" in return for some other consideration by
the recipients at a later date and that for this and other
reasons they should have been directly put before the annual
general assembly of shareholders on May 31 this year. It also
found out that the bank was effectively bankrupt as of December
2004.

The investigation also concluded that audit committee director
Jose Abelovich was ineffective in his duty to explain the
payments in question to the shareholder assembly.

CONTACT: Banco Hipotecario S.A.
         151 Reconquista
         Buenos Aires
         Argentina
         Phone: +54 11 4347 5546
         Web site: http://www.hipotecario.com.ar


BUENOS AIRES COMMERCIAL: Trustee to Submit Individual Reports
-------------------------------------------------------------
Mr. Fernando Luis Greco, the trustee appointed for the Buenos
Aires Commercial Group S.A. liquidation, will submit to court
the individual reports on Monday, Aug. 15, 2005. These reports
are based on the claims forwarded by the Company's creditors.

Following the submission of the individual reports is the
submission of the general report, which will be on Sep. 26,
2005.

Buenos Aires Commercial Group S.A. was declared "Quiebra" by
Court No. 10 of the city's civil and commercial tribunal with
the assistance of Clerk No. 19.The case will end with the sale
of the Company's assets. Proceeds from the sale will be used to
repay the Company's debts.

CONTACT: Mr. Fernando Luis Greco, Trustee
         Arenales 2365
         Buenos Aires


CENTRAL PUERTO: Returns to Black in 2Q05
----------------------------------------
Power generator Central Puerto S.A. (CEPU2.BA) reversed the
ARS47.1 million net loss in the second quarter of 2004 with a
net profit of ARS4.8 million ($1=ARS2.875) this year, Dow Jones
Newswires reports. Net sales in the second quarter of 2005 came
in at ARS170.9 million, up from ARS128.7 million from the
comparable period a year ago, while financial results charge
amounted to ARS7.3 million, narrower than last year's ARS46.1
million loss.

Central Puerto also posted a gain of ARS5.1 million in credits
from Foninvemem, a state-run investment fund for the power-
generating sector. Last year's second quarter profit was snagged
by the ARS15.7 million loss related to the trust fund, which
funnels profits from power plants to pay for new generators.

Central Puerto's bottom line also got a boost from foreign
exchange movements. Currency effects generated an ARS11.1
million gain on the Company's debts, compared with an ARS35.9
million loss in 2004.

Central Puerto, which is controlled by France's Total SA,
stopped payments on obligations in February 2002 and has about
US$300 million in debt that need to be restructured.


COMPANIA LACTEA: To Propose Settlement Plan to Creditors
--------------------------------------------------------
Compania Lactea del Sur S.A. will present to the creditors the
settlement plan for their approval in an informative assembly on
Monday, Aug. 15, 2005. The assembly is the final stage of the
insolvency case.

The Company's reorganization is under the jurisdiction of Court
No. 25 of Buenos Aires' civil and commercial tribunal. Clerk No.
50 assists the court with the restructuring process. The Company
is under the supervision of local accounting firm "Estudio
Estevez, Indurain, Vazquez", which the court appointed as the
trustee.

CONTACT: "Estudio Estevez, Indurain, Vazquez"
         Trustee
         Uruguay 750
         Buenos Aires


FIRMEZA INMOBILIARIA: Claims Review Deadline Fixed
--------------------------------------------------
The verification of creditors' claims for the Firmeza
Inmobiliaria S.A. insolvency case is set to end on Sep. 16,
2005, states Infobae. Ms. Marta Irene Nicoletti, the court-
appointed trustee tasked with examining the claims, will submit
the validation results as individual reports on Oct. 31, 2005.
She will also present a general report in court on Dec. 13,
2005.

Infobae adds that San Isidro's civil and commercial Court No. 8
handles the company's reorganization case. Clerk No. 12 assists
the court in the proceedings.

CONTACT: Ms. Marta Irene Nicoletti, Trustee
         Rivadavia 239
         San Isidro


GRUPO GALICIA: 2Q05 Net Income, Profits Lower
---------------------------------------------
Leading Argentine banking conglomerate Grupo Financiero Galicia
revealed a net profit of ARS33 million ($1=ARS2.8775) for the
second quarter, down from a ARS45.4 million net gain a year
earlier.

Net financial income for the second quarter totaled ARS177.9
million, down from the ARS214.5 million posted a year earlier.
Income from "government and corporate securities" grew to
ARS128.9 million from ARS55 million a year ago.

Meanwhile, provisions for loan losses dwindled to ARS22.8
million from ARS41 million.

Grupo Galicia's data showed that its holdings of government and
corporate securities fell to ARS5.616 billion from ARS5.695
billion in the year-earlier quarter. Deposits rose to ARS7.531
billion from ARS6.018 billion.

CONTACT: Mr. Pablo Firvida
         VP Investor Relations
         Telefax: (5411) 4343-7528
         E-mail: pfirvida@gfgsa.com
                 investorelations@gfgsa.com

         Web site: http://www.gfgsa.com


JASH JORR: Court Grants Reorganization Request
----------------------------------------------
Jash Jorr S.R.L., a company operating in Tierra del Fuego,
begins reorganization proceedings after the city's Court No. 1
granted its petition for "concurso preventivo".  During the
reorganization, the Company will be able to negotiate a
settlement proposal for its creditors so as to avoid a straight
liquidation.  

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

Creditors with claims against Jash Jorr S.R.L. must present
proofs of the Company's indebtedness to Mr. Pugnaloni before
Oct. 7, 2005. These claims will constitute the individual
reports to be submitted in court on Nov. 22, 2005. The court
also requires the trustee to present an audit of the Company's
accounting and business records through a general report due on
Feb. 20, 2006.

An informative assembly is set on April 25, 2006. This is the
final stage of the Company's reorganization case. The Company
will present to its creditors a settlement plan.

CONTACT: Mr. Roberto Pugnaloni, Trustee
         O Higgins 218
         Rio Grande (Tierra del Fuego)
  

KOPTOS S.A.: General Report Due for Submission Aug 26
-----------------------------------------------------
The general report on the insolvency case of Koptos S.A. is due
on Aug. 26, 2005, says Infobae. The report summarizes events
relevant to the reorganization and provides an audit of the
Company's accounting and business records.

San Miguel de Tucuman's civil and commercial Court No. 1 issued
a resolution opening the reorganization of Koptos S.A. This
pronouncement authorizes the Company to draft a settlement
proposal with its creditors in order to avoid liquidation. The
completed settlement plan will be presented in an informative
assembly.

CONTACT: Koptos S.A.
         San Miguel de Tucuman
         Tucuman


NUEVO BANCO SUQUIA: Moody's Assigns First Time Ratings
------------------------------------------------------
Moody's Investors Service assigned first time Global and
National Scale ratings to Nuevo Banco Suquia S.A. (NBS), a 99%
subsidiary of Banco Macro Bansud, acquired in December of 2004.

NBS' ratings reflect Moody's opinion that the bank is an
integral part of Banco Macro Bansud (BMB), which controls and is
closely managing its new acquisition to its own standards.
Hence, although the bank remains a separate unconsolidated
subsidiary, from a credit perspective, Moody's views the two
banks as having the same credit risk.

Moody's assigned an "E" bank financial strength rating (BFSR) to
NBS, with a positive outlook, as in the case of its parent bank.
The positive outlook on the financial strength rating is based
on the bank's improving balance sheet since its acquisition by
BMB at the end of 2004. The positive outlook also indicates the
expectation of further improvements in the bank's fundamentals
as it repositions itself as part of the BMB group and focuses on
business growth in a still challenging environment.

NBS' E BFSR reflects its weak, though improving, core earnings,
its large exposure to the highly indebted public sector, and
uncertain private sector asset quality, issues endemic to the
banking system as a whole. Moody's explained that prevailing
uncertainties in the legal and operating environment, including
high country risk and accounting and regulatory forbearances,
also still constrain the Argentine BFSRs.

Moody's also assigned Ba3 and Not Prime Global Local Currency
Ratings to NBS' long and short term deposits, respectively. Caa1
and Not Prime global foreign currency deposit ratings were also
assigned to NBS' long and short term deposits, and are
constrained by Moody's country ceilings for Argentina. The
outlook on the deposit ratings is stable.

The analysts noted that as in the case of BMB, NBS' Ba3 global
local currency deposit rating (GLC) primarily reflects the view
that due to its important deposit franchise the bank would enjoy
certain priority for liquidity support to cover its local
currency deposit obligations, if needed, from the Central Bank
of Argentina (BCRA). The relatively high GLC therefore points to
the predictability of institutional support, thereby benefiting
from several notches of lift above the bank's stand alone
rating.

Moody's also assigned local and foreign currency deposit ratings
of Aa2.ar and Ba1.ar, respectively, to NBS on its Argentine
National Scale, based on the corresponding global scale ratings.
The foreign currency NSR of Ba1.ar is much lower than the local
currency NSR as it reflects foreign currency transferability and
convertibility risk, and is similar to that of the other
Argentine banks rated for foreign currency deposits. The NSRs
are designed for local market use only, and are not opinions on
absolute default risks as in the case of the global scale
ratings.

As of March 31, 2005, Nuevo Banco Suquia was the 12th largest
bank in Argentina in terms of deposits with $545 million and
loans of $346 million. Together with Banco Macro Bansud the two
form the fifth largest private sector bank in Argentina in terms
of deposits, with $1.7 billion and loans totaling $1.0 billion.

The following new ratings were assigned to Nuevo Banco Suquia:

- Long Term Global Local Currency Deposits: Ba3, with stable
outlook

- Short Term Global Local Currency Deposits: Not Prime, with
stable outlook

- National Scale Rating for Local Currency Deposits: Aa2.ar,
with stable outlook

- National Scale Rating for Foreign Currency Deposits: Ba1.ar,
with stable outlook

- Bank Financial Strength Rating: E, with positive outlook

- Long Term Global Foreign Currency Deposits: Caa1, with stable
outlook

- Short Term Global Foreign Currency Deposits: Not Prime, with
stable outlook


PROYECTOS Y TENDIDOS: General Report Filing Due
-----------------------------------------------
The general report on the bankruptcy case of Proyectos y
Tendidos S.A. will be submitted on Monday, Aug. 15, 2005. Ms.
Marina Fernanda Tynik, who has been appointed as trustee, will
include in the report the Company's accounting and business
records she has already audited as well as the summary of
important events pertaining to the reorganization.

Court No. 23 of Buenos Aires' civil and commercial tribunal
declared Proyectos y Tendidos S.A. "Quiebra," with the aid of
Clerk No. 45. The case will close with the liquidation of the
Company's assets to repay creditors.

CONTACT: Ms. Marina Fernanda Tynik, Trustee
         Rivadavia 10444
         Buenos Aires


TELECOM ARGENTINA: Reports P$458 Mln Net Income for 1H05
--------------------------------------------------------
Telecom Argentina (BASE: TECO2, NYSE: TEO), one of Argentina's
largest telecommunications groups, announced today consolidated
net income of P$458 million for the six-month period ended June
30, 2005 ("1H05") mainly due to positive financial results as a
consequence of currency exchange differences. Comparatively,
consolidated net loss for the six-month period ended June 30,
2004 ("1H04") was P$230 million. Consolidated net income for the
second quarter of fiscal year 2005 ("2Q05") was P$179 million,
Comparatively, consolidated net loss for the second quarter of
fiscal year 2004 ("2Q04") was P$354 million.

  MAJOR EVENTS AND DEVELOPMENTS

  - During 1H05 the following results were achieved:

    * Net Revenues increase by P$515 MM (+25% vs. 1H04)
      reaching P$2,585 MM mainly due to the expansion of the
      mobile business.

    * Operating Profit before depreciation and amortization
      slightly decreased when compare to that of 1H04 (-P$11
      MM or 1% vs. 1H04) as a consequence of cost increases
      related to the expansion of the cellular business and
      the pressure evidenced in the operating cost structure
      of the Company, in an environment where the fixed-line
      regulated tariffs continue to be frozen.

    * Net Income of +P$458 MM (+P$688 MM vs 1H04) was mainly as
      a consequence of positive financial results due to
      currency exchange differences.

    - Shareholders Equity as June 30, 2005 amounted to P$960 MM
      (+P$22 MM or +2% vs. 1H04).

    - Net Financial Debt as of June 30, 2005 reached P$5,947 MM
      (-P$1,214 MM or -17% vs. 1H04).

    * The Ratio of Net Financial Debt to Operating Profit before
      Depreciation and Amortization for the last 12 months
      decreased to 2.9 (from 3.5 as of June 30, 2004), mainly
      due to the appreciation of the Argentine Peso against the
      Euro and the Dollar, since the Company's debt is mainly
      denominated in these currencies, to the effect of the debt
      restructuring of Telecom Personal and Nucleo that took
      place during the last quarter of FY04, and to the cash
      flow generation of the Group.

Earnings/loss per share and ADR for 1H05 amounted to P$0.47 and
P$2.33, respectively. In comparison, (loss) per share and ADR
for 1H04 were P$(0.23) and P$(1.17), respectively. Earnings per
share and ADR for 2Q05 amounted to P$0.18 and P$0.91,
respectively. In comparison, (loss) per share and ADR for 2Q04
were P$(0.36) and P$(1.80), respectively.

Operating profit before depreciation and amortization, operating
profit/(loss) and net income/(loss) for 1H05 represented 38%, 9%
and 18% of net sales, respectively; compared with 47%, 6% and
(11%), respectively, for 1H04. Operating profit before
depreciation and amortization, operating profit/(loss) and net
income/(loss) for 2Q05 represented 34%, 6% and 13% of net sales,
respectively; compared with 46%, 6% and (34%), respectively, for
2Q04.

In a context of an increase in sales due to the strong expansion
of the cellular business, the Operating Profit before
Depreciation and Amortization for 1H05 has slightly decreased by
1%, reaching P$972 million. This decrease was a result of higher
costs in the cellular telephony business mainly generated by
greater agent commissions and subsidies in the sale of handsets.

   Company Activities

    Evolution of Consolidated Net Revenues
    (1H05 vs. 1H04 comparison)

Consolidated net revenues for 1H05 totaled P$2,585 million, an
increase of P$515 million, or 25%, compared with P$2,070 million
for 1H04 mainly as a consequence of the increase in revenues
generated by the cellular and Internet businesses.

Fixed Telephony

In fixed telephony operations, local measured service revenues
increased by P$1 million to P$247 million during 1H05. Domestic
long distance (DLD) revenues increased by P$8 million reaching
P$220 million. Revenues in both services increased as a
consequence of the higher traffic due to incremental demand and
higher number of Lines in Service. Traffic in Domestic Long
Distance service increased by 9% while local traffic increased
by 1%.

Monthly charges increased by P$20 million, or 6%, to P$331
million for 1H05, mainly due to the increase in customer lines.
Customer lines as of June 30, 2005 increased by 4% to
approximately 3,534,000 when compared to approximately 3,409,000
as of June 30, 2004 due to the constant demand of fixed-line
services. Nevertheless, the current level of customer lines as
well as the number of lines in service is still below the level
reached before the economic crisis in December 2001.

Revenues generated by interconnection services increased by P$20
million, or 20%, to P$118 million, mainly due to the increase in
cellular traffic transported by the fixed line network.

Regarding international telephony activities, during 1H05
revenues reached P$110 million increasing by P$5 million or 5%,
mainly due to higher incoming and outgoing traffic levels
partially offset by a decrease in rates.

Internet and Data Transmission

Revenues generated by the data transmission and Internet
business totaled P$224 million, representing an increase of P$26
million, or 13%, mainly due to the increase in revenues
generated by the Internet business as a consequence of the
increase in the number of ADSL clients. Since 4Q04, the Company
is experiencing a migration process of dial-up clients to ADSL
services. This process has intensified and has resulted in lower
dial-up traffic.

As of June 30, 2005 total lines in service with ADSL connections
amounted to 159,000, an increase of 65,000, or 69%. The number
of Arnet's ADSL subscribers reached approximately 106,000,
increasing by 80% while Internet dial-up customers reached
approximately 146,000, decreasing 7%. Internet dial-up minutes
represented 28% of total traffic measured in minutes transported
over the fixed-line network.

Cellular Telephony

The cellular market in Argentina has grown rapidly during the
last months, with a substantial increase in the total number of
subscribers and penetration.

In this environment, total cellular subscribers of Telecom
Personal in Argentina reached approximately 4,813,000 at June
30, 2005, representing an increase of approximately 1,712,000
customers, or 55%. This increase in the client base was fueled
by an impressive growth in the number of GSM subscribers that
represent 37% of the total customer base.

The customer base as of June 30, 2005 amounted to approximately
3,324,000 prepaid subscribers, representing 69% of the total
customer base, and approximately 1,489,000 post-paid
subscribers, representing the remaining 31% (including clients
of "Cuentas Claras" a mix prepaid/postpaid product). These
percentages were 79% and 21%, respectively, as of June 30, 2004.
The substantial improvement of the composition of the customer
base is a consequence of the strategy of Telecom Personal to
focus in the acquisition of high-end clients and to increase the
participation in the postpaid services, among them the "Cuentas
Claras" product, taking into account the current demand of the
cellular market.

Revenues of Telecom Personal in Argentina increased by P$420
million, or 63%, to P$1,090 million, mainly due to the higher
number of subscribers, to the increase in total traffic, to
incremental value added services and to the increase in sales of
handsets.

The average monthly revenue per customer increase to P$35 or 3%
when compared with 1H04 in spite of the significant increase in
the number of clients. Additionally, total cellular traffic
increased by 51% when compared with 1H04.

Nucleo, Telecom Personal's subsidiary that provides cellular
services in Paraguay, generated P$97 million in revenues during
1H05, which are consolidated into the mobile telephony business
together with the revenues of Telecom Personal. Nucleo's 1H05
revenues represented an increase of P$14 million, or 17%.

As of June 30, 2005, Nucleo had approximately 567,000 customers
an increase of 91,000, or 19%. Nucleo's postpaid subscribers
increased by 22% reaching 107,000 clients, representing 19% of
the customer base. Prepaid customers increased by 19% reaching
460,000, equivalent to 81% of the customer base.

Directories

Publicom sales increased by P$1 million or 17% reaching P$7
million due to higher sales of advertising space and the
acquisition of new customers. It is expected that the favorable
evolution of the commercial campaigns will be reflected in the
publication of the most important directories that are
distributed during the second half of the year.

Evolution of Operating Costs

The cost of services provided, administrative expenses and
selling expenses for 1H05 increased by P$424 million, or 22%, to
P$2,362 million. The evolution of costs is mainly related to the
increase in sales and competition in the mobile telephony
business in Argentina. As an example of this, subscriber
acquisition cost (including handset subsidies, agent commissions
and advertising) increased by P$138 million or 157% reaching
P$226 million.

Salaries and social security contributions increased by P$43
million, or 15%, to P$329 million primarily due to the increase
in salaries granted to unionized and non-unionized employees and
to the increase in headcount in the cellular telephony business.
As of June 30, 2005, the headcount totaled 14,332, compared to
14,175 as of June 30, 2004. The increase in headcount is also
related to the expansion of the cellular business.

Taxes reached $179 million, an increase of $38 million when
compared with 1H04 due to the impact of sales tax and higher
fees paid to the regulator, the latter, in the cellular
telephony activity. The allowance for doubtful accounts
increased to P$15 million, equivalent to 0.6% of revenues. The
level of allowances registered is significantly lower than the
historical levels registered by the Group. The increase of P$13
million is mainly due to a lower level of recovery of past due
receivables in the fixed telephony business and a slight
increase of uncollectables in the cellular telephony business
after the significant expansion of the customer base.

Sales commissions increased by P$66 million, or 87%, to P$142
million for 1H05, as a consequence of the commissions paid for
new customers and higher sales of cellular prepaid cards.

Costs related to advertising increased by P$18 million or 45% to
P$58 million in spite of the fact that Telecom Personal and
Arnet continued with their promotions and media advertising
campaigns.

The cost of cellular handsets increased by P$159 million
reaching P$234 million mainly due to the increase in handset
sales. As a consequence of the strong competition and the growth
in the cellular business, handset subsidies have increased by
P$78 million or 325%, reaching P$102 million.

TLRD (termination charges in third parties cellular networks)
and roaming cost increased by P$90 million reaching P$171
million, due to the increase in traffic among cellular
operators.

Depreciation of fixed and intangible assets decreased by P$102
million, or 12%, to P$749 million during 1H05 as a consequence
of the end of the amortization period of certain assets in the
fixed telephony business.

Taking into account the speed of the technological evolution of
the telecommunication industry, Telecom Personal, with the
assistance of an external consultant, has made a review of the
periods of useful lives used for the depreciation period of
fixed assets. As a consequence of this evaluation, the useful
lives of certain assets have been changed and have been adjusted
as from January 1st, 2005. Therefore, the depreciation charge
for the six-month period ended June 30, 2005 was increased by
P$15 million.

Net Financial Results

The gain resulting from net financial results reached P$299
million for 1H05 as compared to a loss of P$298 million in 1H04.
The difference can be largely attributed to the P$586 million
registered as net currency exchange differences. The higher gain
was a consequence of the effect of the appreciation of the
Argentine Peso against the Euro and the Dollar on the net
financial debt of the Company.

Other Expenses

Other expenses (net) decreased by P$5 million, or 9%, to P$50
million for the 1H05 mainly as a consequence of lower severance
charges partially compensated by higher provisions for lawsuits
and other contingencies.

Cash flow and Net Financial Debt (Face Value)

Net Debt (Loans minus Cash and Banks plus Investments) decreased
by P$1,214 million, or 17%, to P$5,947 million for 1H05 compared
with 1H04 (P$7,161 million), mainly as a consequence of the
effect on the financial debt of the Company of the appreciation
of the Argentine Peso against the Euro and the Dollar, the
reduction of the debt due to the successful restructuring of
Telecom Personal and Nucleo's debts and the cash flow generation
of the Company, partially offset by accrued interests.

Capital Expenditures

Of the total amount of P$169 million invested in fixed assets
during 1H05, P$89 million, or 53%, corresponds to fixed-line
telephony, data transmission and Internet, and P$80 million or
47% to the cellular business.

Additionally, during 1H05 the Company has invested P$86 million
in materials (of which P$75 correspond to cellular telephony)
that in a short period will be classified as investments in
fixed assets.

Other Matters

Debt restructuring process of Telecom Argentina -- Homologation
of the APE

On May 26, 2005, the Judge overseeing our debt restructuring
process issued a resolution approving the Acuerdo Preventivo
Extrajudicial ("APE") that was subscribed by the Company and its
financial creditors. Such decision became final on June 10,
2005.

As ordered by the Argentine court, Telecom Argentina published
notices in widely circulated national and foreign newspapers
informing non-consenting creditors of the court's decision to
permit them to select among any of the options offered by
Telecom Argentina in its APE, within ten (10) court days
following the last publication of notices. The Argentine court
had provided that non-consenting creditors that do not submit an
election before the Argentine court within such timeframe would
be allocated to Option A.

Moreover, Standard & Poors International Ratings and Fitch
Ratings have assigned an international rating of B- for the
notes that will be issued as consideration of the APE.

Universal Service Fund

On May 4, 2005, the Secretariat of Communication ("SC") issued a
resolution clarifying that the contribution to the Universal
Service Fund is a contribution that has to be made by the
operators and should not be charge in the invoices of the
clients. Additionally, it orders to the National Commission of
Telecommunications ("CNC") to notify the companies that they
should cease with this practice and reimburse their customers
for the fees collected under such concept.

On July 8, 2005, the CNC issued a resolution implementing the
resolution of the SC, instructing the companies to stop billing
their customers for Universal Service with these fees and to
reimburse the fees collected plus interest in a 90 days period.

On August 9, 2005 Telecom Personal has filed an administrative
recourse, and is waiting for the resolution of this step in
order to analyze further actions in this matter.

Telecom is the parent company of a leading telecommunications
group in Argentina, where it offers directly or through its
controlled subsidiaries local and long distance fixed-line
telephony, cellular, data transmission, and Internet services,
among other services. Additionally, through a controlled
subsidiary the Telecom Group offers cellular services in
Paraguay. The Company commenced operations on November 8, 1990,
upon the Argentine Government's transfer of the
telecommunications system in the northern region.

Nortel Inversora S.A. ("Nortel"), which acquired the majority of
the Company from the Argentine government, holds 54.74% of
Telecom's common stock. Nortel is a holding company where the
common stock (approximately 68% of capital stock) is owned by
Sofora Telecomunicaciones S.A. Additionally, the capital stock
of Nortel is comprised of preferred shares that are held by
minority shareholders.

On June 30, 2005, Telecom had 984,380,978 shares outstanding.

CONTACT:  Pedro Insussarry
          54-11-4968-3743
          pinsussa@ta.telecom.com.ar

          Moira Colombo
          Tel: 54-11-4968-3628
          E-mail: mcolombo@ta.telecom.com.ar

          Gaston Urbina
          Tel: 54-11-4968-6236
          E-mail: gurbina@ta.telecom.com.ar



=============
B E R M U D A
=============

ALPHA OVERSEAS: Members Resolve to Wind Up Company
--------------------------------------------------
         IN THE MATTER OF The Companies Act 1981

                         And

      IN THE MATTER OF Alpha Overseas Management Ltd.

The Members of Alpha Overseas Management Ltd., acting by written
consent without a meeting on July 25, 2005 passed the following
resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Alpha Overseas Management Ltd., which is being
voluntarily wound up, are required, on or before August 24, 2005
to send their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Robin J Mayor,
the Liquidator of the said Company, and if so required by notice
in writing from the said Liquidator, and personally or by their
lawyers, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Members of Alpha Overseas
Management Ltd. will be held at the offices of Messrs. Conyers
Dill & Pearman, Clarendon House, Church Street, Hamilton,
Bermuda on September 15, 2005 at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


COLEY PHARMACEUTICAL: Company to be Wound Up Voluntarily
--------------------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                          And

    IN THE MATTER OF Coley Pharmaceutical Group, Ltd.

The Member of Coley Pharmaceutical Group, Ltd., acting by
written consent without a meeting on August 8, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Coley Pharmaceutical Group, Ltd., which is being
voluntarily wound up, are required, on or before August 30, 2005
to send their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Robin J Mayor,
the Liquidator of the said Company, and if so required by notice
in writing from the said Liquidator, and personally or by their
lawyers, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Member of Coley Pharmaceutical
Group, Ltd. will be held at the offices of Messrs. Conyers Dill
& Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 16, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


DOVER INSURANCE: Court Appoints Kempe as Liquidator
---------------------------------------------------
IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)

                         And

       IN THE MATTER OF THE COMPANIES ACT 1981

                         And

IN THE MATTER OF SECTIONS 33 AMD 35 OF THE INSURANCE ACT 1978

                         And

     IN THE MATTER OF Dover Insurance Company Limited

By Order of the Supreme Court dated the June 30, 2005 Mr.
Charles W. Kempe Jr. of Ernst & Young, Reid Hall, 3 Reid Street,
Hamilton HM 11, Bermuda has been released as the Liquidator of
Dover Insurance Company Limited pursuant to Section 178 of The
Companies Act 1981.

Dated: day of August 10, 2005

Appleby
Spurling
Hunter
Canon's Court
22 Victoria Street
Hamilton, Bermuda
Attorneys for the Liquidator


ELAN PHARMACEUTICAL: Members Resolve to Wind Up Company
-------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                             And

   IN THE MATTER OF Elan Pharmaceutical Investments III, Ltd.

The Members of Elan Pharmaceutical Investments III, Ltd., acting
by written consent without a meeting on August 4, 2005, passed
the following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator further informs that:

- Creditors of, Elan Pharmaceutical Investments III, Ltd. are
required, on or before August 24, 2005, to send their full
Christian and Surnames, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their solicitors (if any) to the Liquidator of the
said Company and if so required by notice in writing from the
said Liquidator, and personally or by their solicitors, to come
in and prove their debts or claims at such time and place as
shall be specified in such notice. In default thereof they will
be excluded from the benefit of any distribution made before
such debts are proved.

- A final general meeting of the Member(s) of Elan
Pharmaceutical Investments III, Ltd. will be held at the offices
of Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, Bermuda on September 14, 2005 at 9:30 a.m., or
as soon as possible thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


FOSTER WHEELER: Announces Strong 2Q05 Financial Results
-------------------------------------------------------
Foster Wheeler Ltd. (Nasdaq: FWLT) reported Wednesday second-
quarter 2005 net earnings of $27.9 million for the period ended
July 1, 2005. Basic earnings per share for the second quarter of
2005 were $0.63. For the first six months of 2005, net earnings
were $29.1 million, with basic earnings per share of $0.66.

Consolidated second-quarter 2005 EBITDA (earnings before income
taxes, interest expense, depreciation and amortization) was
$62.2 million and $93.4 million for the first six months of
2005.

"The strong earnings were driven by excellent operating
performance in our North America Power and Continental Europe
Engineering and Construction (E&C) operations, backed up by
solid operating results in all of our other business units,"
said Raymond J. Milchovich, chairman, president and chief
executive officer.

"The markets we serve are very strong. We had our strongest
bookings quarter in seven years, with $1.44 billion of new
orders booked, and we continue to achieve strong bookings in the
third quarter. We are building quality backlog, consolidating
our position in high-growth market sectors such as liquefied
natural gas (LNG) and petrochemicals, and in high-growth
geographic regions, such as the Middle East."

"In addition, we have built on the strong first-half 2005
operating and booking performance by further reducing debt in
the third quarter. Our successful equity-for-debt exchange,
completed on July 29, 2005, has reduced consolidated debt by
$64.8 million, improved net worth by approximately $87.0 million
and reduced annual interest expense by $8.7 million. After
considering the pro forma impact of the July equity-for-debt
exchange on the Company's July 1, 2005, balance sheet, Foster
Wheeler's consolidated debt was $495.7 million, its lowest level
since 1993."

For the second quarter of 2004, net earnings were $29.8 million,
with basic earnings per share of $14.53. Net earnings for the
first six months of 2004 were $25.5 million, with basic earnings
per share of $12.44. The decline in basic earnings per share in
2005 versus 2004 is primarily due to the significant number of
shares issued in the equity-for-debt exchange completed in 2004.
Consolidated EBITDA for the second quarter of 2004 was $83.6
million and $126.2 million for the first six months of 2004.
First-half 2004 EBITDA included a $19.2 million gain on the sale
of minority equity interests in special-purpose companies that
owned development rights to power projects in Italy, and a net
$14 million gain on settlement with certain of the Company's
asbestos insurance companies. These gains were not repeated in
the first half of 2005.

Worldwide cash and domestic liquidity

Total cash and short-term investments at the end of the second
quarter of 2005 were $326.4 million, of which $275.6 million
were held by non-U.S. subsidiaries. This compares with $390.2
million total cash and short-term investments at year-end 2004
and $404.7 million at the end of the second quarter of 2004. The
Company's rolling 12-month liquidity forecast continues to
indicate that domestic liquidity is adequate through the second
quarter of 2006, without utilization of its $75 million
revolving credit line.

Bookings, revenues and backlog

The Company achieved its strongest bookings quarter in seven
years, measured by future revenues. New orders booked during the
second quarter of 2005 more than doubled to $1.44 billion,
compared with $707.0 million during the second quarter of 2004.
For the first six months of 2005, new orders booked increased
significantly to $1.9 billion, up from $1.3 billion for the same
period last year.

The Company's operating revenues for the second quarter of 2005
were $526.0 million, down from $635.0 million in the second
quarter of 2004. For the first six months of 2005, operating
revenues were $1.05 billion compared with $1.3 billion for the
first half of 2004.

The Company's backlog at July 1, 2005, measured by future
revenues, was $2.7 billion, the highest in seven quarters, up
from $1.9 billion at the end of the first quarter of 2005 and
$2.3 billion at the end of the second quarter of 2004. Backlog
at July 1, 2005, expressed in terms of Foster Wheeler scope,
i.e. excluding reimbursable flow-through costs, was $1.4
billion, substantially level with the end of the first quarter
of 2005 and up slightly from $1.3 billion at the end of the
second quarter of 2004.

Subsequent offering period for equity-for-debt exchange offer

In order to allow additional holders to participate in the offer
to exchange the Company's common shares for Trust Preferred
Securities, Foster Wheeler commenced a subsequent offering
period, which expires at 5:00 p.m. on August 10, 2005,
reflecting the same consideration as the original offering, that
is, 2.16 common shares for each Trust Preferred Security.

Calculation of EBITDA

Management uses several financial metrics to measure the
performance of the Company's business segments. EBITDA is a
supplemental, non-generally accepted accounting principle (GAAP)
financial measure. The Company presents EBITDA because it
believes it is an important supplemental measure of operating
performance. A reconciliation of EBITDA, a non-GAAP financial
measure, to net earnings, a GAAP measure, is attached with the
Company's financial data.

The Company believes that the line item on its consolidated
statement of operations entitled "net earnings" is the most
directly comparable GAAP measure to EBITDA. Since EBITDA is not
a measure of performance calculated in accordance with GAAP, it
should not be considered in isolation of, or as a substitute
for, net earnings as an indicator of operating performance.

EBITDA, as the Company calculates it, may not be comparable to
similarly titled measures employed by other companies. In
addition, this measure does not necessarily represent funds
available for discretionary use, and is not necessarily a
measure of the Company's ability to fund its cash needs. As
EBITDA excludes certain financial information compared with net
earnings, the most directly comparable GAAP financial measure,
users of this financial information should consider the type of
events and transactions which are excluded.

The Company's non-GAAP performance measure, EBITDA, has certain
material limitations as follows:

- It does not include interest expense. Because the Company has
borrowed substantial amounts of money to finance some of its
operations, interest is a necessary and ongoing part of its
costs and has assisted it in generating revenue. Therefore, any
measure that excludes interest expense has material limitations;

- It does not include taxes. Because the payment of taxes is a
necessary and ongoing part of the Company's operations, any
measure that excludes taxes has material limitations;

- It does not include depreciation. Because the Company must
utilize substantial property, plant and equipment in order to
generate revenues in its operations, depreciation is a necessary
and ongoing part of its costs. Therefore any measure that
excludes depreciation has material limitations.

All prior period share and per share data have been revised to
reflect the capital share alterations approved by the Company's
shareholders on November 29, 2004. The capital share alterations
included, among other things, a one-for-twenty reverse common
share split and a reduction in the par value of both the common
and preferred shares from $1.00 par value to $0.01 par value.

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,
petrochemicals, 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.
         Media Contact
         Maureen Bingert
         Phone: 908-730-4444
                 or
         Investor Contact
         John Doyle
         Phone: 908-730-4270
                 or
         Other Inquiries
         Phone: 908-730-4000

         URL: http://www.fwc.com


LSF-KDB: Names Robin J Mayor as Liquidator
------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                         And

IN THE MATTER OF LSF-KDB NPL Investment Company, Ltd.

The Members of LSF-KDB NPL Investment Company, Ltd., acting by
written consent without a meeting on August 5, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of LSF-KDB NPL Investment Company, Ltd., which is
being voluntarily wound up, are required, on or before August
24, 2005 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Robin J Mayor, the Liquidator of the said Company, and if so
required by notice in writing from the said Liquidator, and
personally or by their lawyers, to come in and prove their debts
or claims at such time and place as shall be specified in such
notice, or in default thereof they will be excluded from the
benefit of any distribution made before such debts are proved.

- A final general meeting of the Members of the above named
Company will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 14, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


LSF3 KIV: To Wind Up, Appoints Robin J Mayor as Liquidator
----------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                             And

     IN THE MATTER OF LSF3 KIV Investment Company, Ltd.

The Members of LSF3 KIV Investment Company, Ltd., acting by
written consent without a meeting on August 5, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of LSF3 KIV Investment Company, Ltd. are required,
on or before August 24, 2005 to send their full Christian and
Surnames, their addresses and descriptions, full particulars of
their debts or claims, and the names and addresses of their
lawyers (if any) to the Liquidator of the said Company, and if
so required by notice in writing from the said Liquidator, and
personally or by their lawyers, to come in and prove their debts
or claims at such time and place as shall be specified in such
notice. In default thereof they will be excluded from the
benefit of any distribution made before such debts are proved.

- A final general meeting of the Members of the above named
Company will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 14, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


LSF3 KOREAN: Robin J Mayor Appointed as Liquidator
--------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                               And

     IN THE MATTER OF LSF3 Korean Property Company II, Ltd.

The Member of LSF3 Korean Property Company II, Ltd., acting by
written consent without a meeting on August 4, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of LSF3 Korean Property Company II, Ltd. are
required, on or before August 24, 2005, to send their full
Christian and Surnames, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their lawyers (if any) to Robin J Mayorthe
Liquidator of the said Company, and if so required by notice in
writing from the said Liquidator, and personally or by their
lawyers, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Member of LSF3 Korean Property
Company II, Ltd. will be held at the offices of Messrs. Conyers
Dill & Pearman, Clarendon House, Church Street, Hamilton,
Bermuda on September 14, 2005 at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


LSF3 SSY: To Wind Up Voluntarily, Liquidator Appointed
------------------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                          And

      IN THE MATTER OF LSF3 SSY Holdings Limited

The Member of LSF3 SSY Holdings Limited, acting by written
consent without a meeting on August 4, 2005 passed the following
resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of LSF3 SSY Holdings Limited, which is being
voluntarily wound up, are required, on or before August 24,
2005, to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Robin J
Mayor, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice. In default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Member of LSF3 SSY Holdings
Limited will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 14, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


SSY KORELEND: Robin J Mayor to Oversee Liquidation
--------------------------------------------------
      IN THE MATTER OF THE COMPANIES ACT 1981
   
                         And

  IN THE MATTER OF SSY Korelend Derivatives, Ltd.

The Member of SSY Korelend Derivatives, Ltd., acting by written
consent without a meeting on August 4, 2005 passed the following
resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of SSY Korelend Derivatives, Ltd., which is being
voluntarily wound up, are required, on or before August 24,
2005, to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to the
Liquidator, and if so required by notice in writing from the
said Liquidator, and personally or by their lawyers, to come in
and prove their debts or claims at such time and place as shall
be specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

-A final general meeting of the Member of SSY Korelend
Derivatives, Ltd., will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on September 14, 2005 at 9:30 a.m., or as soon
as possible thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda


WORLD-WIDE HOLDINGS: To Wind Up, Mayor Appointed as Liquidator
--------------------------------------------------------------
             IN THE MATTER OF The Companies Act 1981

                                And

     IN THE MATTER OF World-Wide Holdings (Bermuda) Limited

The Members of World-Wide Holdings (Bermuda) Limited acting by
written consent without a meeting on August 5, 2005 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator further informs:

- Creditors of World-Wide Holdings (Bermuda) Limited, which is
being voluntarily wound up, are required, on or before August
24, 2005 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
the Liquidator of the said Company, and if so required by notice
in writing from the Liquidator, and personally or by their
lawyers, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of World-Wide Holdings (Bermuda)
Limited will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
September 14, 2005 at 10:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J Mayor, Liquidator
         Messrs. Conyers Dill & Pearman
         Clarendon House
         Church Street, Hamilton
         HM DX, Bermuda



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

CSN: Reports R$2.6 Billion EBITDA and a 48% Margin in 1H05
----------------------------------------------------------
Companhia Siderurgica Nacional -- CSN (NYSE: SID and BOVESPA:
CSNA3) releases its second quarter 2005 results (2Q05), in
accordance with Brazilian accounting principles and denominated
in Reais. The comments presented herein refer to consolidated
results and the comparisons refer to the second quarter 2004
(2Q04), unless otherwise stated.

Highlights:

-- Sales in the quarter totaled 1,137 thousand tonnes, 60
thousand down the previous quarter. Exports share in total sales
grew from 25% to 33%.

-- Prices in the domestic market fell only by 4% in Reais and
export prices fell by 10% in dollars. The Company does not
expect significant adjustments in prices: the downward trend in
steel prices should be interrupted in the end of 3Q05.

-- Net revenue year-to-date is 22% higher than in 1H04.

-- The coke cost was US$380/t, compared to US$408/t in 1Q05 and
US$445/t in 4Q04. Coal cost was US$112/t, against US$107/t and
US$100/t, respectively.

-- EBITDA was R$1.2 billion in the quarter and R$2.6 billion in
the first half of the year, with a 48% margin in both.

-- Net debt of 1x EBITDA, after the dividend payment.
Securitization of receivables totaling US$250 million (cost of
6.1% p.a.) and perpetual bonds issued in the amount of US$750
million (9.5% p.a.).

-- Net income accumulated in 2005 is 50% higher than in 1H04.

                                 2Q05                  1H05
                                  x                     x
                 2Q 04  2Q 05    2Q04   1H04   1H05    1H04
                                (Ch.%)                (Ch.%)
Crude Steel
  Production  
  (thousand t)  1,368  1,362   -0.4%  2,723  2,529   -7.1%
Sales Volume
  (thousand t)  1,354  1,137  -16.0%  2,491  2,334   -6.3%
Domestic
  Market          848    767   -9.5%  1,624  1,664   +2.5%
Exports           506    370  -26.9%    867    670  -22.8%
Net Revenue
  per unit
(R$/t)         1,791  1,960   +9.5%  1,674  2,049  +22.4%

Financial Data (in R$ millions)

Net Revenue     2,562  2,545   -0.6%  4,428  5,407  +22.1%
Gross Income    1,193  1,215   +1.8%  2,034  2,598  +27.7%
EBITDA          1,180  1,214   +2.9%  2,013  2,621  +30.2%
Net Income        424    419   -1.2%    757  1,136  +50.1%

CONTACT: CSN
         Marcos Leite Ferreira
         Tel: +55-11-3049-7588
         E-mail: marcos.ferreira@csn.com.br


CSN: Successful in 1998 Environmental Lawsuit Defense
-----------------------------------------------------
CSN announced that the environmental case lodged against it by
authorities for alleged damages caused by its Volta Redonda
plant has been dismissed, relates Business News Americas. CSN's
announcement came in response to press reports suggesting that
the case was getting worse for the Company.

According to CSN, the lawsuit, which was filed in 1988, was
dismissed in 2000 following an agreement between CSN and
environmental regulators. Under the deal, CSN agreed to change
its operations in a memorandum of understanding with
environmental officials. CSN was ordered to clean up any damages
caused to the environment in exchange for a suspended sentence.

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


NII HOLDINGS: Announces Pricing of Convertible Note Offering
------------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Wednesday the
pricing of its offering of $300.0 million principal amount of
2.75% Convertible Notes due 2025. The notes were privately
placed with qualified institutional buyers pursuant to Rule 144A
under the Securities Act of 1933, as amended. The sale of the
notes is expected to close on August 15, 2005. NII has granted
the initial purchaser of the notes an option to purchase up to
an additional $50.0 million principal amount of notes.

The notes are convertible under certain circumstances into NII
common stock at a conversion rate of 9.9835 shares per $1,000
principal amount of notes (equal to an initial conversion price
of approximately $100.17 per share), subject to adjustment in
certain circumstances. Upon a surrender of notes for conversion,
NII will have the right to deliver, in lieu of shares of its
common stock, cash or a combination of cash and shares of its
common stock.

NII may redeem all or some of the notes on or after August 20,
2010 for a redemption price in cash equal to 100% of the
principal amount of the notes, plus any accrued and unpaid
interest. Holders may require NII to repurchase the notes on
August 15 of 2010, 2012, 2015 and 2020 or upon the occurrence of
certain designated events at a repurchase price equal to the
principal amount of the notes plus accrued and unpaid interest,
if any, to the repurchase date.

CONTACT: NII Holdings, Inc.
         Investor Relations
         Tim Perrott
         Phone: 1-703-390-5113
         E-mail: tim.perrott@nii.com
                  or
         Media Relations
         Claudia E. Restrepo
         Phone: 1-786-251-7020
         E-mail: claudia.restrepo@nii.com

         URL: http://www.nii.com


PRIDE INTERNATIONAL: Competitive Environment Affects Ratings
------------------------------------------------------------
Rationale

The ratings on Pride International Inc. reflect its
participation in the highly competitive, deeply cyclical, and
capital-intensive contract-drilling segment of the oilfield
services industry. Somewhat offsetting rating concerns is
Pride's large, diversified fleet of offshore drilling units,
broad geographic exposure to the world's major offshore
petroleum-producing regions, and a strengthening backlog of
favorable contracts for its rigs.

As of June 30, 2005, Houston, Texas-based Pride had about $1.26
billion in long-term debt.

Pride's satisfactory business profile reflects industry
conditions that are characterized by periods of strong demand,
tight rig supply, and high day rates, which can prompt new rig
construction or upgrades. Upcycles (or peaks) can be followed by
periods of weak demand, excess rig supply, and low day rates
that can result in stacked or idled rigs. Drilling activity is
strongly correlated to worldwide exploration and production
(E&P) capital spending, which ultimately reflects petroleum
price expectations. In addition to participation in the marine
contract-drilling sector, about 26% of Pride's gross margins (as
of second-quarter 2005) are derived from land contract-drilling
operations and an E&P services business in Latin America.

In terms of offshore fleet size, Pride has 50 mobile offshore
drilling rigs (excluding the company's 12 offshore platforms),
making the company a sizable competitor in most major offshore
drilling markets. Leverage to the deepwater market segment is
average, with two drillships and 12 semisubmersible rigs, most
of which have been recently built or upgraded. Pride competes
against other large industry participants, Transocean Inc.,
Noble Corp., GlobalSantaFe Corp., Diamond Offshore Drilling
Inc., and Rowan Companies Inc. (and to a lesser degree, smaller
international competitors in certain markets) for contract work.
About 74% of gross margins were derived from its offshore units.
Pride's offshore fleet has good geographic coverage, with rigs
operating in most of the world's major offshore petroleum-
producing regions: West Africa, Brazil, Mexico, and the U.S.
Gulf of Mexico (with a somewhat lesser presence in the North
Sea, the Middle East, and Southeast Asia).

In the deepwater segment, Pride has significant rig
concentration in West Africa (mostly semisubmersibles) and
Brazil, which should continue to benefit from rising day rates
and increasing deepwater rig demand. Consequently, Pride
recently signed the South Pacific (a conventionally moored
deepwater semisubmersible) at a $140,000 per day rate in West
Africa, which represented a more than 100% increase over the
rig's previous contracted rate. Leading-edge day rates for
Pride's jack-ups in the Gulf of Mexico are currently pushing
over $50,000 per day -- up substantially from mid-$20,000 per
day rates exhibited at the beginning of 2004.

Pride's customer base is diversified among state oil companies,
independents, and majors, with its largest customer segment
being state-controlled oil companies. Two customers Petroleo
Brasileiro S.A. (Petrobras) and Petroleos Mexicanos (PEMEX),
accounted for roughly 17% and 14%, respectively, of consolidated
revenues at year-end 2004. Despite sacrificing some exposure to
leading-edge day rates in favor of term work, Pride's multiyear
contracts improve revenue visibility and have helped secure work
for older equipment (i.e., mat supported jack-up units with less
water depth capability). In the longer term, increasing jack-up
construction could create potential overcapacity concerns within
the sector as 35 to 37 additional units are expected to enter
the market over the next three years.

Although not as large a component of Pride's business as its
offshore operations, land-drilling operations (largely based in
Argentina and Venezuela) have exhibited stronger contract
pricing and increased utilization levels in recent months.
Utilization for land rigs has improved in 2005 by about 10% and
contract prices have increased by roughly 7% to 10% over levels
exhibited early in 2004, reflecting strengthening rig demand and
spending in the region.

Profitability and credit measures have somewhat lagged improving
market conditions due to a relatively high percent of Pride's
rigs that are on longer-term contracts, but are beginning to
show signs of recovery as existing contracts expire and more
favorable contracts commence. Operating margins (EBITDA to
sales) have improved, averaging over 25% in the first two
quarters of 2005, up from the low-20% range exhibited at year-
end 2003. With recent debt reduction and increasing cash flow,
EBITDA interest coverage has improved to more than 4x in 2005
from below 3x exhibited at the beginning of 2004.

Pride's new management team has taken steps more favorable to
credit quality over the past year, most notably debt reduction
through noncore asset sales and the exit from the third-party
rig construction business. In addition, management continues to
work toward improving its working-capital management process and
the remediation of material weaknesses identified during its
2004 audit process. The pace of Pride's asset sale program has
accelerated in recent months, resulting in debt reduction of
about $780 million since January 2004, including the conversion
of $300 million in 2.5% convertible debentures to common shares
in second-quarter 2005. As a result, trailing 12-month total
debt to EBITDA has improved to below 3x (this compares with
above 5x at the beginning of 2004) and total debt to capital has
fallen to below 40%.

Liquidity

Pride's liquidity has improved from the beginning of 2004. As of
June 30, 2005, the company's liquidity consisted of $483 million
available under its $500 million senior secured revolving credit
facility and about $33.7 million in unrestricted cash on hand.
Pride has made strides to reduce capital expenditures from
previous years with capital expenditures for 2005 expected to
approximate $170 million. Given improved contracts, wider
margins, and increasing rig utilization, Pride should generate
total cash flow from operations in excess of planned capital
expenditures in 2005. Pride has a moderately protracted debt
maturity profile with no sizable debt maturities until 2007, and
the company does not currently pay a dividend.

Outlook

The stable outlook on Pride is based on recent financial profile
improvement that has brought debt and credit measures to a level
more commensurate with expectations for the current ratings. A
positive outlook revision would likely be predicated on
continued sequential improvement in operating performance,
demonstrating conservative policies toward future growth
initiatives (acquisitions, upgrades, potential new
construction), continuing to maintain adequate levels of
liquidity through the cycle, and the resolution of existing
accounting concerns and weaknesses. Conversely, although not
deemed likely in the near term, a return to more aggressive
policies could warrant a negative outlook revision.

Primary Credit Analyst: Jeffrey B Morrison, New York (1) 212-
438-2954; jeffrey_morrison@standardandpoors.com



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

COEUR D'ALENE: Files Form 12b-25 with SEC on Form 10-Q Delay
------------------------------------------------------------
Coeur d'Alene Mines Corporation (the Company) filed on Tuesday,
August 9, 2005 a Form 12b-25 with the Securities and Exchange
Commission (SEC) regarding a delay in filing of the Company's
Form 10-Q for the quarter ended June 30, 2005. The reason for
the delay is due to additional time needed to review the
Company's second quarter income tax benefit associated with the
Company's operations in Argentina. This Amendment to Form 12b-25
is filed to further clarify the item under review.

The Company does not believe the amount of the net loss for the
quarter ended June 30, 2005 will be materially affected by the
amount of the income benefit associated with the Company's
operations in Argentina, but requires additional time to analyze
the issue to determine the final disclosure to be contained in
the Form 10-Q for the quarter ended June 30, 2005.

The Company expects that the amount of total revenues to be
reported by it for the quarter ended June 30, 2005, will be
approximately $38.3 million, as compared to $27.1 million for
the quarter ended June 30, 2004. Furthermore, it expects to
report total costs and expenses for the quarter ended June 30,
2005 of approximately $40.2 million compared to $32.5 million
for the quarter ended June 30, 2004. The Company expects to
report a net loss for the quarter ended June 30, 2005 that is
significantly less than the $5.4 million net loss for the
quarter ended June 30, 2004. The amount of the net loss for the
quarter ended June 30, 2005 could be materially affected by the
amount of the income tax benefit associated with the Company's
operations in Argentina.

CONTACT: Coeur D'Alenes Mines Corp.
         400 Coeur d'Alene Mines Bldg.
         505 Front Ave.
         P.O. Box I
         Coeur d'Alene, ID 83816-0316
         USA
         Phone: 208-667-3511



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

SANS SOUCI: Trims Losses, Gross Revenue Up 46%
----------------------------------------------
Sans Souci Hotel, located near Ocho Rios in St Ann, trimmed down
its loss to $2 million during the April-June period this year
from $36 million in the comparable period last year, The Jamaica
Observer reports.

Earning $177 million in gross revenue, the hotel saw a 46%
improvement during the April-June this year compared to the
comparative quarter last year.

The high-end hotel has been on the block for several months, but
apparently no suitable suitor with the right price has been
found. However, two weeks ago, Lee Issa's Couples Hotel emerged
as the preferred bidder.

Sans Souci has 148 suites spread across 27 acres of beachfront.
The hotel was bought by Carreras from Pan Jam in 1990. However,
in the past few years Carreras has been offloading assets in
Jamaica to focus on tobacco distribution and funds management.
The hotel is its last remaining significant non-tobacco asset.



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

BALLY TOTAL: Moody's Affirms Junk Debt Ratings
----------------------------------------------
Moody's Investors Service affirmed the Caa1 corporate family
(formerly senior implied) rating and debt ratings of Bally Total
Fitness Holding Corporation.  The affirmation reflects continued
high risk of default and Moody's estimate of recovery values of
the various classes of debt in a default scenario.  The ratings
outlook remains negative.

Moody's affirmed these ratings:

   * $175 million senior secured term loan B facility due 2009,
     rated B3

   * $100 million senior secured revolving credit facility
     due 2008, rated B3

   * $235 million 10.5% senior unsecured notes (guaranteed)
     due 2011, rated Caa1

   * $300 million 9.875% senior subordinated notes due 2007,
     rated Ca

   * Corporate family rating, rated Caa1

Bally recently announced that it received notices of default
under the indentures governing its senior subordinated and
senior notes following the expiration of the waiver of the
financial reporting covenant default on July 31, 2005.  The
notices commence a 30-day cure period during which Bally must
either secure an extension to the waiver or remedy the default.  
The company is negotiating with bondholders to secure a waiver
extension and currently has received consent from holders of
96.31% of the Senior Notes and 42.88% of Senior Subordinated
Notes outstanding.

In addition, the delivery of the notices commences the 10-day
period after which time an event of default occurs under Bally's
$275 million secured credit agreement's cross-default provision.
As a result, delivery of these notices could result in
acceleration of Bally's obligations on or after August 14, 2005,
under the credit agreement and the indentures, causing over $700
million of Bally's debt obligations to become immediately due
and payable.

The negative outlook anticipates minimal revenue growth,
impaired liquidity and minimal, if any, free cash flow from
operations over the next few quarters.  Free cash flows are
expected to be
negatively impacted by the recent $14 million arbitration award
against the company, required waiver payments and continuing
investigation costs.  The receipt of a further temporary waiver
of
the financial reporting covenant would not likely result in a
change in the ratings outlook.

The outlook could be changed to stable if:

  * the company resolves the SEC investigation;

  * corrects its material deficiencies in internal controls over
    financial reporting;

  * files its restated financial statements with the SEC; and
     
  * maintains adequate liquidity.

If Bally also improves its operating performance by generating
sustainable annualized free cash flows of over $20 million over
the next few fiscal quarters, Moody's would likely change the
outlook to positive.  Asset divestitures that materially improve
leverage and liquidity would also likely benefit the rating.

A decline in the membership base which leads to negative free
cash flow from operations over the next few quarters would
likely lead to a ratings downgrade.

Headquartered in Chicago, Illinois, Bally is the largest
commercial operator of fitness centers in North America.
(Troubled Company Reporter, Thursday, August 11, 2005, Vol. 9,
No. 189)


BANSI: S&P Issues Ratings, Discusses Rationale
----------------------------------------------
Rationale

The ratings assigned to Bansi S.A. consider the small size of
the bank in the Mexican financial system as well as strong
concentration of the business within a small client base, which
includes related parties and the lack of geographical
diversification. The ratings are supported by the general
improvement of credit risk management, adequate profitability
and capitalization levels, and management's ample knowledge of
its market.

Bansi is categorized as a small bank within the Mexican banking
system, as it holds a small market share of 0.2% in terms of
loans. The bank operates basically in the State of Jalisco, a
competitive disadvantage given the geographic diversification of
stronger peers. In fact, despite the bank's efforts to penetrate
Mexico City's market, growth has remained shadowed by the strong
presence and long-term relationship that other banks have built
with their customers. In this sense, Standard & Poor's Ratings
Services expects Bansi to remain concentrated in the State of
Jalisco.

We consider the bank's concentration within a small client base
a major risk. In this context, the default of a single customer
has a significant impact on asset quality indicators. Related
parties-while within regulatory limits-are also an important
component of Bansi's loan portfolio, some of which have already
been problematic, and have been restructured, further enlarging
asset quality concerns.

After a period of continued problem loans, the bank focused on
improving credit risk policies and enforcing collecting
procedures, sacrificing loan growth. The application of these
measures has been successful and asset quality deterioration has
been contained. At June 2005, past-due loans represented 1.5% of
total loans, due to both the decrease of nonperforming loans
(NPLs) and the rebound of lending activities. Reserve coverage
stands at 4.8x, an adequate level considering the inherent risks
of the loan portfolio.

The rebound in lending activities started in 2003, together with
the increase of noninterest income, has resulted in the recovery
of profitability levels. While the bank has strengthened its
recurring revenue base, trading gains, representing 14% of total
operating revenues, have gained importance, but could result in
volatile bottom-line results in the future. During the first
half of 2005, the bank's efficiency improved, also benefiting
bottom-line results. At June 2005, profitability stands at 2.1%,
a good level comparable to that of some larger players. Adjusted
equity to assets of 16.5% is considered adequate, viewed from
the context of asset concentrations.

Although the bank's activities are limited in comparison to
those of larger banks, they have been consistently well-focused
on a market niche of small and middle-market companies and high-
income individuals, helping its market penetration. Management's
knowledge, experience, and business contacts in the area have
helped Bansi increase its customer base.

Outlook

Like other banks in the system, Bansi faces a difficult
operating environment, characterized by strong competition from
larger players. Although the bank has followed prudent risk
management strategies, a decrease of single-customer exposures
and the reduction of related party lending would be welcome.
Management faces important challenges, such as maintaining NPLs
and reducing operating costs while increasing its loans and
deposit base. The bank's performance is not expected to change
significantly going forward.

Primary Credit Analyst: Angelica Bala, Mexico City (52) 55-5081-
4405; angelica_bala@standardandpoors.com

Secondary Credit Analyst: Francisco Suarez, Mexico City (52) 55-
5081-4474; francisco_suarez@standardandpoors.com


EMPRESAS ICA: Launching New USD$200Million Equity Offering
----------------------------------------------------------
Construction and engineering firm Empresas ICA said Wednesday it
was issuing 473 million shares at MXN4.50 (US$0.42) to Mexican
and foreign investors. Some 65% of the shares will be released
on the BMV and the remaining 35% among institutional investors
abroad.

The Company expects to raise MXN2.13 billion (US$201mn) from the
operation, which is part of a planned capital increase. The new
stocks will increase the number of ICA shares in circulation to
2.34 billion.

The firm also retains the option of selling another 70.9 million
shares within the next 30 days.

ICA plans to use the funds to help finance bids on projects and
to raise its stake in a company that operates a group of 13
airports.

Standard & Poor's recently placed ICA's debt rating on
review for a possible increase. The action came after ICA's
shareholders approved the planned share sale, which S&P believed
would improve the Company's finances.

ICA's debt rating of B- is six levels below investment grade and
seven levels behind Mexico's sovereign rating of BBB.

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 MEXICO: Asarco Requests Judicial Protection in the US
-----------------------------------------------------------   
Grupo Mexico, S.A. de C.V. announced Wednesday that the Board Of
Directors of its independent mining subsidiary, ASARCO LLC, has
decided to file for Chapter 11 protection before a federal court
in Corpus Christi, Texas to be able to face its financial,
labor, environmental and asbestos liabilities.

Group Mexico said Asarco's decision comes notwithstanding the
current high metal prices, due to the high production costs
negatively impacting its operations and cash flow, the uncertain
outcome of high environmental and asbestos liabilities that
affect the Company and the grave effects of the prolonged
general strike in all the Company's units, as the labor union is
neither supporting the company nor acting responsibly.

Group Mexico explained that Asarco's Board Of Directors has been
driven to seek protection under us law aiming to restructure the
company to generate more certainty in its operations and secure
its long-term viability.

Asarco is 100% owned by of Americas Mining Corporation, a direct
subsidiary of Grupo Mexico. The Company's mining operations are
located in the United States and consist of three open-pit
copper mines, Ray, Mission and Silver Bell, in the state of
Arizona. Asarco also operates a custom smelter in Hayden,
Arizona, a refinery in Amarillo, Texas, and two SX/EW plants. In
2004, the company produced 155,000 tons of copper.

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


GRUPO MEXICO: Asarco Bankruptcy Case Summary
--------------------------------------------
Debtor: ASARCO LLC
        1150 North Seventh Avenue
        Tucson, Arizona 85705

Bankruptcy Case No.: 05-21207

Type of Business: The Debtor is an integrated copper mining,
                  smelting and refining company.  Americas
                  Mining Corp. is Asarco's direct parent, and
                  Grupo Mexico S.A. de C.V. is Asarco's
                  ultimate parent. See http://www.asarco.com/

                  The Debtor has five affiliates that filed for
                  chapter 11 protection on April 11, 2005
                  (Bankr. S.D. Tex. Case Nos. 05-20521 thru 05-
                  20525). They are Lac d'Amiante Du Quebec Ltee,
                  CAPCO Pipe Company, Inc., Cement Asbestos       
                  Products Company, Lake Asbestos Of Quebec,
                  Ltd., and LAQ Canada, Ltd.  Their petition is
                  reported in the Troubled Company Reporter on
                  Apr. 18, 2005.

Chapter 11 Petition Date: August 9, 2005

Court: Southern District of Texas (Corpus Christi)

Judge: Richard S. Schmidt

Debtor's Counsel: James R. Prince, Esq.
                  Jack L. Kinzie, Esq.
                  Eric A. Soderlund, Esq.
                  Baker Botts L.L.P.
                  2001 Ross Avenue
                  Dallas, Texas 75201
                  Tel: (214) 953-6612
                  Fax: (214) 953-6503

                       -- and --

                  Nathaniel Peter Holzer, Esq.
                  Shelby A. Jordan, Esq.
                  Harlin C. Womble, Esq.
                  Jordan, Hyden, Womble & Culbreth, P.C.
                  500 North Shoreline Drive, Suite 900
                  Corpus Christi, Texas 78471
                  Tel: (361) 884-5678
                  Fax: (361) 888-5555

Total Assets: $600 Million

Total Debts:  $1 Billion

Debtor's 20 Largest Unsecured Creditors:

   Entity                        Nature of Claim    Claim Amount
   ------                        ---------------    ------------
Deutsche Bank Trust Company      Indenture Trustee
Americas                         
Trust Securities Services        Gila County         $73,895,225
60 Wall Street                   Installment Bond
New York City 60-2715            5.55% Series 1998
New York, NY 10005
Attn: Safet Kalabovic
Tel: (212) 250-2679              Lewis & Clark       $35,728,480
                                 County Env
                                 Bond (IRB) 5.85%
                                 Series 1998

                                 Lewis & Clark       $33,668,950
                                 County Env
                                 Bond (IRB) 5.60%
                                 Series 1998

                                 Nueces River        $28,516,721
                                 Env Bond
                                 (IRB) 5.60%
                                 Series 1998

                                 Nueces River        $22,510,800
                                 Env Bond
                                 (IRB) 5.60%
                                 Series 1998A

Wilmington Trust Company         Indenture Trustee
Rodney Square North
1100 North Market Street         CSFB Corporate     $152,125,000
Wilmington, DE 19890-0001        Debentures at
Attn: Joseph W. Callaway, Jr.    8.500%
Tel: (302) 636-6059

Wells Fargo Bank Minnesota NA    CSFB JP Morgan     $101,640,623
Corporate Trust Services         Sec Debentures
608 Second Avenue South          at 7.875%
Minneapolis, MN 55479
Attn: Joseph J. Taffe
Tel: (612) 667-6961

St. Paul Travelers               Surety Bond         $31,369,020
One Square
4PB Hartford, CT 06183
Attn: Robert L. Scanlon
Tel: (860) 277-4275

Mitsui and Co. (U.S.A.), Inc.    Loan                $21,084,000
New York Headquarters
Met Life Building
200 Park Avenue
New York, NY 10166-0130
Attn: Nao Hayashi
Tel: (212) 878-4125

Montana Resources Incorporated   Contractual Debt     $7,729,847
P.O. Box 16630
Missoula, MT 59808
Attn: Greg L. Stricker
Tel: (406) 829-2312

American Home Assurance Co.      Surety Bond          $5,832,064
175 Water Street, 26th Floor
New York, NY 10038
Attn: Todd Robinson
Tel: (212) 458-1621

CAN Surety                       Surety Bond          $4,493,591
333 South Wabash-135
Chicago, IL 60685
Attn: Sylvester Bracey
Tel: (312) 817-3764

Wachovia                         Promissory Note      $2,340,170
301 South College St., 18th Floor
Charlotte, NC 28292-0738
Attn: Lee Hemphill
Tel: (704) 374-4306

Chevron Natural Gas              Trade Debt           $1,850,188
P.O. Box 730116
Dallas, TX 75373-0116
Attn: Michael Surginer
Tel: (832) 854-5020

Sidley Austin Brown & Wood LLP   Legal Fees           $1,699,819
787 Seventh Avenue
New York, NY 10019
Attn: Jonathan Williams
Tel: (212) 839-5310

Road Machinery                   Trade Debt           $1,395,803
716 South Seventh Street
Phoenix, AZ 85034
Attn: Claude Dew
Tel: (602) 256-5152

Komatsu Financial                Equipment Lease      $1,142,313
719 South Seventh Street
Phoenix, AZ 85034
Attn: Randy Smith
Tel: (480) 756-2341

AT&T US Bank                     Lease                $1,053,344
One Federal Street
Boston, MA 02110
Attn: Todd Dinezza
Tel: (617) 603-6573

P&H Mine Pro Services            Trade Creditor         $601,791
3200 Paysphere Circle
Chicago, Illinois
Tel: (480) 834-7656

Williams Detroit Diesel          Trade Creditor         $449,300
West Glenn Street 1375
Tucson, Arizona
Attn: Jerry Martinez
Tel: (520) 624-8377

Department of Justice            Environmental           Unknown
Environmental and Natural
Resources Division
P.O. Box 7611
Washington, D.C. 20044-7611
Attn: David Dain
Tel: (202) 514-3644

State of Washington              Environmental           Unknown
Washington State
Department of Ecology
P.O. Box 47600,
Olympia, WA 98504-7600
Attn: Tim Nord
Tel: (360) 407-7226

State of Texas                   Environmental           Unknown
Texas Commission on
Environmental Quality
MC 175
P.O. Box 13087
Austin, TX 78711-3087
Attn: Paul C. Sarahan
Tel: (512) 239-3424

State of Arizona                 Environmental           Unknown
Arizona Department of
Environmental Quality
Phoenix Main Office
1110 West Washington Street
Phoenix, AZ 85007
Attn: Stephen Owens
Tel: (602) 771-2203

(Troubled Company Reporter, Thursday, August 11, 2005, Vol. 9,
No. 189)


GRUPO MEXICO: Condemned by Steelworkers for Bankrupting Asarco
--------------------------------------------------------------
The United Steelworkers (USW) accused Grupo Mexico Wednesday of
deliberately bankrupting its U.S. copper unit Asarco in an
attempt to escape its obligations to workers and communities.
The Union stated that Grupo Mexico's asset stripping and poor
management of Asarco set the stage for the bankruptcy filing.
The Union also said that it will continue its campaign for
justice at Grupo Mexico.

"It's no secret what's happening here," said USW District 12
Director Terry Bonds. "The robber barons running Grupo Mexico
set the stage for this by stripping Asarco of its profitable
Peruvian assets in 2003. They believe that it will be cheaper to
bankrupt Asarco than it would be to meet Asarco's tremendous
environmental, asbestos and retiree obligations."

"Grupo Mexico's failure to invest in maintaining its Asarco
operations while copper prices were low is the sole reason
Asarco is not able to reap the full rewards of the ongoing
copper boom," said USW Sub-District Director Manuel Armenta.
"It's a shame that Grupo Mexico isn't as good at managing
companies as it is at scheming to harm workers and communities."

USW also blamed Grupo Mexico for deliberately provoking and
prolonging the strike of about 1,500 Steelworkers at its Asarco
operations in Arizona and Texas.

"Grupo Mexico has never taken Asarco negotiations seriously nor
made an honest attempt to reach a fair and equitable labor
agreement," said Mr. Bonds. "For over a year they committed
unlawful bargaining violations and presented insulting offers
that they knew would not be accepted by our members."

"Then after claiming that the strike they provoked was crippling
them, Asarco cancelled negotiations scheduled for August 2. It
appears that this was the final stage in Grupo Mexico's drive to
bankrupt Asarco."

"Numerous communities, many of them predominantly Latino, are
suffering the consequences of Asarco's century-long pollution
binge," said Mr. Armenta. "Rather than cleaning up its mess,
Grupo Mexico is attempting to exploit U.S. bankruptcy law in
order to shift the cost of cleanup to U.S. taxpayers."

"Grupo Mexico would be wise to bargain a fair and equitable
agreement so it can concentrate on getting itself out of
bankruptcy," said Mr. Bonds. "You can be sure that we will do
anything and everything possible to protect our members during
this difficult time. If Grupo Mexico thinks that filing for
bankruptcy will cause us to back off in our campaign for justice
at Asarco, it's dead wrong."

CONTACT: The United Steelworkers
         Terry Bonds
         Tel: 505-878-9756

         Manny Armenta
         Tel: 520-465-3617


GRUPO MEXICO: Fitch Downgrades Asarco Ratings to 'C'
----------------------------------------------------
Fitch Ratings has downgraded the senior unsecured rating of
Asarco Inc. (Asarco) to 'C' from 'CCC'. The company's notes due
in 2013 and 2025 for face values of US$100 million and US$150
million, respectively, have also been downgraded to 'C' from
'CCC.' All of these ratings have been placed on Rating Watch
Negative. These rating actions follow the company's filing of a
voluntary petition for Chapter 11 reorganization under the
United States Bankruptcy Court in Corpus Christi, Texas on
Wednesday.

The 'C' ratings reflect imminent default on the company's next
debt service payment. In addition to the notes due in 2013 and
2025, Asarco's other outstanding debt obligations consist of
environmental bonds with a face value of approximately US$190
million due between 2018 and 2033.

Asarco's challenges include negotiating with state and federal
authorities over environmental liabilities, with plaintiffs
filing asbestos-related personal injury claims, as well as with
the company's own labor force which has been on strike since
early July 2005. The company also has high production costs
relative to its peers within the copper industry.

CONTACT: Anita Saha CFA, +1-312-368-3179, Chicago
         Joe Bormann CFA, +1-312-368-3349, Chicago

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


GRUPO MEXICO: S&P Lowers Asarco's Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Asarco Inc. to 'D' from 'CCC' after
the company announced that it voluntary filed for bankruptcy
under Chapter 11. Tucson, Arizona-based Asarco had total debt of
about $363 million as of June 30, 2005.

"Although currently the company has not missed any interest or
principal payments, we consider a bankruptcy filing as a
default," said Standard & Poor's credit analyst Juan P. Becerra.  
"The 'D' rating is not prospective; rather, it is used only when
a default has actually occurred, and not if a default is only
expected."

Asarco's next interest payments are US$100,000 in August and
September, and Standard & Poor's expects that these payments
will not be made.

However, S&P expects AMC to make interest and principal payments
to Asarco.  S&P also said that the 'BBB/Stable/--' rating
assigned to Grupo Mexico S.A. de C.V., Americas Mining Corp.,
Southern Peru Copper Corp., and Minera Mexico S.A. de C.V. was
not adversely affected by the voluntary filing for Chapter 11 of
Asarco, an AMC subsidiary.

Asarco has six mining units and four smelters and refinery
complexes located in the U.S. During the first half of 2005, the
company's revenues and total copper production were US$253
million and 87 thousand metric tons, respectively, which
compares favorably with 2004 numbers. (Troubled Company
Reporter, Thursday, August 11, 2005, Vol. 9, No. 189)


SATMEX: US Bankruptcy Court Grants Asset Protection Motion
----------------------------------------------------------
A New York bankruptcy court has approved Satmex's 304 petition,
reassuring the ailing Mexican satellite provider that its assets
cannot be seized by creditors ahead of a restructuring
agreement.

Business News Americas reports that bankruptcy judge Robert
Drain ruled that US creditors cannot file lawsuits or take other
actions to try to seize Satmex's assets through October 19. The
Judge said he will consider an extension of the injunction
before that date expires.

The ruling follows an agreement reached between Satmex and its
US creditors at the end of July to allow bankruptcy proceedings
to go ahead under Mexican jurisdiction, putting an end to a
thorny legal confrontation that was delaying the bankruptcy
proceedings themselves.

Background

Satmex filed a voluntary concurso mercantil in the Second
Federal District Court for Civil Matters for the Federal
District of Mexico City on June 29, 2005. Following the
petition, the Mexican Bankruptcy Court entered an order:

     (i) staying any foreclosure proceeding against the rights
         and assets of Satmex and prohibiting Satmex from
         transferring its valuables or funds to third parties;
         and

    (ii) prohibiting Satmex from disposing or encumbering its
         main properties or assets.

Headquartered in Mexico, Satmex derives over 50% of its revenues
from United States business, and all of the Company's over
US$500 million in debt was issued in the United States and is
governed by New York law. The Company's largest shareholder,
Loral Space & Communications Ltd., is a United States public
company also undergoing a Chapter 11 reorganization in the U.S.
Bankruptcy Court for the Southern District of New York.

The Company was forced into chapter 11 by a group of secured and
unsecured noteholders on May 25, 2005 (Bankr. S.D.N.Y. Case No.
05-13862). The noteholders are represented by Wilmer Cutler
Pickering Hale and Dorr LLP and Akin Gump Strauss Hauer & Feld
LLP. Evercore Partners is the financial advisor to the Senior
Secured Floating Rate Noteholders. Chanin Capital Partners is
the financial advisor to the 10-1/8% Senior Noteholders.

On June 29, 2005, the Company filed a voluntary concurso
mercantile to restructure under Mexican laws, and later moved to
dismiss the involuntary Chapter 11 petition in the U.S.

As of May 31, 2005, Satmex reports US$900 million in total
assets and US$688 million in total debts.


INDUSTRIAS PENOLES: Operating Income Rises 27.8% in 1H05
--------------------------------------------------------
- EBITDA grew +20.4% and Gross Income increased +17.7% over the
same period of last year, all of them record advances in the
company's history.

- Net Income doubled to Ps859.0 from Ps438.5 in the first half
of 2004.

- Six-month (billed) Sales reached a record level of USD883.6
million, rising +20.7% in dollar terms over the same half of
last year.

- In the first six months of the year, the production of refined
magnesium oxide rose +34.4%, refined gold +23.3%, and refined
lead +2.3%.

Industrias Penoles, S.A. de C.V. (BMV ticker symbol: PE&OLES),
reported that in the first half of 2005, Sales (billed) reached
a record of Ps9,813.0 (not including the results of metals and
exchange-rate hedging), rising +15.8% over the same period of
last year; this amount is equivalent to USD 883.6 million.

Similarly, Operating Income rose to Ps1,160.4, EBITDA to
Ps1,799.6 and Gross Income to Ps2,629.7, rising +27.8%, +20.4%,
and +17.7%, respectively.Net Income came to Ps859.0, +95.9%
greater than the Ps438.5 reported in the first half of 2004.

This growth described above was the result of:

(a) Higher metal quotations, as follows: zinc, USD 0.5874 per
pound (+23.5% vs. the first half of 2004), lead USD 0.4458 per
pound (+18.7%), silver USD 7.07 per ounce (+9.1%) and gold USD
424.24 per ounce (+6.6%);

(b) Higher Sales volume of gold (+22.5%), silver (+7.1%),
magnesium oxide (+5.9%) and magnesium sulfate (+45.4%; and
(c) The peso's 3.75% revaluation against the dollar as of the
close of the period translated into a foreign-exchange gain of
Ps55.57, compared to a loss of Ps47.7 in the same period of 2004
(an absolute change of Ps103.4).


Due to increased purchases of metal from third parties at the
MetMex metallurgical complex in order to complement production
from its own mines, and also because of higher metals prices and
increased energy costs (natural gas, diesel fuel and
metallurgical coke), the Cost of Goods Sold rose +18.0%.
However, the rise in metals prices had a positive impact on
treatment fees because of its effect on the price scale,
reducing the effects of those increases.

Investment in exploration was +58.9% higher in the period, due
to a m ore intense pace of exploration at Francisco I. Madero,
Fresnillo, La Herradura, Pecobre and regional exploration in
Mexico.

One highlight of this year's first quarter was the sale of the
Mezcala gold project in the state of Guerrero, for USD 70.0
million; net revenues from exploration and development expenses
were Ps549.1.

As a result of these revenues, and the improved Operating
results, the Income tax provision was increased, along with
Minority Interest, since the Newmont gold company (in the U.S.)
was 44% owner of the Mezcala property.

The results benefited further from strong Operating performance
by our different divisions:

In the Mining Division, the production of metallic content
increased over the previous year, as follows: gold +11,851
ounces (+7.0%), lead +1,620 metric tons (+5.7%), silver +274,993
ounces (+1.2%) and zinc +610 metric tons (+0.6%).These increases
were the result of the startup of capacity expansions at
Fresnillo and Sabinas in the second half of 2004, and increased
Operating continuity at Francisco I. Madero and Tizapa.

In the Metals Chemicals Division, refined metal production also
rose over the first half of 2004. Gold increased by +96,030
ounces (+23.3%), silver +2,599,818 ounces (+6.4%) and lead
+1,581 metric tons (+2.3%). The slight drop in zinc output (-
1.2%) was due to an extension of the stoppage for scheduled
major maintenance in order to completely overhaul one of the
three toasters after 26 years of operation.

At the close of the period, Penoles had a total debt equivalent
to US$534.5 million. The current debt is composed primarily of:

i) A private placement made in 1997 for USD 380.0 million, at a
fixed rate of 8.39%, whose payment program begins in 2006 with
payments of USD 15.2 million per quarter; and

ii) US$112.0 million in drafts on a credit obtained at the end
of 2004 totaling USD 155.0 million, to build the Milpillas
cooper project, which is slated for startup at the end of this
year.

In January-June of this year, the Cash Flow from Net Results
totaled Ps1,837.7, rising +88.0% over the same period of
2004.however, working Capital increased due to the receipt of
imported materials rich in precious metal content, toward the
end of the quarter. Because of the inherent characteristics of
these materials, they will be processed in July 2005, and
working capital should then decline again.

Among the largest uses of funds were:

i) Investments of Ps728.7 in property, plant and equipment,
mainly to build the Milpillas copper project and expand the La
Cienega gold mine; and

ii) A dividend payment of Ps524.9 to shareholders of Industrias
Penoles. At the close of the period, the company's cash position
stood at Ps1,163.4, equivalent to USD 107.3 million.

The Company's primary projects remain on schedule, among them:

i) Construction of the Milpillas copper project in Sonora, which
will start up in the fourth quarter of 2005.The mine will turn
out an annual average of 55,000 metric tons of fine copper. The
global physical progress of the project's construction is 80.7%.
In this quarter, a detailed review was conducted of the status
of the project and investment. A worldwide increase in oil
prices, which affected the unit cost of plastic pipes, along
with a rise in the cost of steel and the strength of the euro,
have resulted in an estimated +5.8% increase in the total
investment, to a total of USD 216.8 million; and

ii) In the second quarter of 2005, capacity expansions were
concluded at the La Cienega gold mine in Durango, which raised
capacity from 133,500 to 164,900 ounces per year (+23.5%).
Startup testing was begun with loaded equipment, and operations
should normalize in the third quarter, when the unit will reach
full capacity.

Comparing the results of the current quarter against those of
the same quarter of last year (2Q04), there were also
significant gains. Net Sales were +20.2% higher, spurred by
higher Sales volume and metals pries. In addition, Gross Income,
Operating Income and EBITDA rose +24.9%, +58.0%, and +34.8%,
respectively. Net Income totaled Ps309.0 in the second quarter
of 2005, comparing very well against the Ps80.4 Income of the
year-earlier period, an advance of 284.2%.

Compared to the first quarter of the present year, the results
show reductions in Gross Income, EBITDA and Operating Income, of
-6.5%, -11.5%, and -19.5%, respectively. These reductions were
due to a lower average exchange rate (-1.8%) and the fact that
the electrolytic zinc refinery was shutdown for scheduled annual
maintenance in the second quarter, lowering production by -21.8%
and, thus reducing Sales of refined zinc. The -43.8% drop in Net
Income was caused by the recognition of an extraordinary Income
from the sale of the Mezcala gold project in the first quarter.

Industrias Penoles, S.A. de C.V. and its subsidiaries make up
one of Mexico's largest industrial conglomerates. Since its
founding in 1887, this group has been engaged in the
exploitation of non-renewable natural resources. Originally
involved in prospecting, mining, foundry, refining and sale of
non-ferrous metallic minerals, and subsequently expanding into
the industrial chemicals industry, Penoles is today the world's
largest producer of refined silver, metallic bismuth and sodium
sulfate, and is one of the largest net exporters in Mexico's
private sector. Its shares have been listed on the Mexican Stock
Exchange since 1968.

CONTACT: Industrias Penoles, S.A. de C.V.
         Investor Relations
         E-mail: investor_relations@penoles.com.mx
         URL: http://www.penoles.com.mx



=====================
P U E R T O   R I C O
=====================

DORAL FINANCIAL: Restatment Causes Form 10-Q Filing Delay
---------------------------------------------------------
Doral Financial Corporation's Form 10-Q for the quarter ended
June 30, 2005 will not be timely filed because of delays,
related to the restatement, in the preparation of the Company's
unaudited financial statements to be included in the Form 10-Q.
The Company is currently working expeditiously to conclude the
restatement, but is not yet in a position to announce a specific
date for filing the Form 10-Q.

On April 19, 2005, Doral Financial Corporation announced that it
had determined that the previously filed interim and audited
financial statements for the periods from January 1, 2000
through December 31, 2004 should no longer be relied on and that
the financial statements for some or all of the periods included
therein should be restated. On May 26, 2005, the Company filed a
Form 8-K providing certain unaudited and preliminary operational
data for the first quarter ended March 31, 2005 and an update on
its restatement process and related matters. Subsequently, on
July 18, 2005, the Company issued a press release providing
certain unaudited and preliminary operational data for the
second quarter ended June 30, 2005.
                   
CONTACT: Doral Financial Corporation
    Ricardo Melendez            
         Executive Vice President and Chief Financial Officer
    Phone: 474-6764
       


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

BANCO HIPOTECARIO: Reports $51.1M Profit in 1H05
------------------------------------------------
State-run mortgage loan bank Banco Hipotecario (BHU) returned to
black during the first six months of the year, registering a
profit of UYU1.25 billion (US$51.1 million). Central bank
figures revealed that in the first half of 2004, the bank
generated a loss of UYU1.53 billion.

BHU's assets dropped 1.9% to UYU34.6 billion, while liabilities
(including deposits) fell 15.5% to UYU30.9 billion at the end of
June. Loans were down 14.4% to UYU16.3 billion pesos.

BHU is the second largest bank in Uruguay after fellow state
bank Banco de la Republica Oriental del Uruguay (BROU).



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

EDC: Reverses Last Year's First Half Net Loss
---------------------------------------------
Power company L.A. Electricidad de Caracas (EDC), a local unit
of US company AES Corp (NYSE: AES), reported a net profit of
VEB8.9 billion (US$4.13 million) in the first half of the year,
reversing a VEB69.8 billion net loss in the same period last
year.

Business News Americas reports that the Company's Ebitda fell
13.6% from 1H04 to VEB294 billion and the Ebitda margin fell
4.23 percentage points over the same comparison to 47.2%

In a statement, finance head Diego Garcia explained that the
lower Ebitda and Ebitda margin "are the consequence of the drop
in operating revenue caused by the lag in service-rate increases
in relation with accumulated inflation, the increase in the
prices of fuel and the devaluation of the Bolivar against the
dollar."

He said EDC is increasing power purchases from the national grid
(SIN) as part of a cost-cutting program. Grid power is generally
hydro power from state owned giant Edelca, which is cheaper the
power EDC generates at its own thermoelectric plants.

AES acquired control of EDC in 2000 when it bought more than 80%
of the Company's capital. EDC generates, transmits, and
distributes power to about a million clients in the greater
Caracas area.

CONTACT: C.A. La Electricidad de Caracas
         Avenida Vollmer
         Caracas, Venezuela

         Scarlett Alvarez
         Directora: Relaciones con Inversionistas
         Tel: 0212 502-2950
         E-mail: edcinversionistas@aes.com



                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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