/raid1/www/Hosts/bankrupt/TCRLA_Public/040127.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, January 27, 2004, Vol. 5, Issue 18

                          Headlines

A R G E N T I N A

AGUAS ARGENTINAS: Suez Likely To Drop ICSID Complaint
CITAL: Enters Bankruptcy on Court Orders
DISCO: Ahold Ends Exclusive Discussions With De Narvaez, Casino
GATIC: Creditors Seek Repayment Proposal From Gotelli, Owners
GEOSUR: Court Sets Informative Assembly Date

HILADO: Court Approves Petition to Undergo Reorganization
SANTORIO DEL SUR CHAQUENO: Credit Check Ends February 12


B E R M U D A

TYCO INTERNATIONAL: Board Recommends Auditor Change
TYCO INTERNATIONAL: Declares Regular Quarterly Dividend


B R A Z I L

CEMIG: To Place $141M, 10-Yr. Debentures on the Local Market
GERDAU: Gerdau Ameristeel Completes Exchange Offer For Sr. Notes
IMPSAT BRAZIL: To Offer Local Telephony To Corporate Clients
IMPSAT BRAZIL: Likely To Participate in Bidding For Anatel's SCD
PARMALAT BRASIL: Needs $36M in Credit Lines To Stay Afloat

PARMALAT: To Get EUR150 Mln Loan From a Group of Banks
PARMALAT: Fisa Capital Expresses Interest in South America Units


C O L O M B I A

MILLICOM INTERNATIONAL: SEC Declares Notes Registration Effective


D O M I N I C A N   R E P U B L I C

* IMF Deputy Director Issues Statement on the Dominican Republic


E C U A D O R

PETROECUADOR: Tecpetrol, Rally Energy Purchase Bidding Rules


M E X I C O

GRUPO IUSACELL: Agrees To Sell 143 Towers To American Tower
TV AZTECA: Cauley Geller Announces Class Action Lawsuit
XIGNUX: S&P Affirms Ratings; Notes Rated 'B+'


N I C A R A G U A

* IMF, WB Support $4.5B in Debt Service Relief for Nicaragua
* IMF Approves US$20.7M Additional Aid for Nicaragua


P E R U

MINERA VOLCAN: BCP Upgrades Stock Recommendation to `Buy'


U R U G U A Y

PARMALAT URUGUAY: Financial Unit Sees $863M From Other Units


V E N E Z U E L A

EDC: Local Fitch Ups Risk Ratings on Commercial Notes

     -  -  -  -  -  -  -  -

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

AGUAS ARGENTINAS: Suez Likely To Drop ICSID Complaint
-----------------------------------------------------
France's Suez group may withdraw a legal claim it filed last year
with the International Center for Settlement of Investment
Disputes (ICSID) against the Argentine government in order for it
to see a favorable contract renegotiation for its waterworks
concessionaire Aguas Argentinas.

According to Aguas communications director Diego Segura, the
group is studying the possibility.

Suez filed the complaint with the ICSID claiming the federal
government's decision to free water rates in January 2002 amounts
to a breach of contract.

Aguas, which won its 30-year operating concession in 1993, is one
of 61 companies whose contracts are under revision by the
Argentine government. The government earlier indicated that it
wants Aguas' parent Suez to drop the ICSID complaint in exchange
for a favorable contract renegotiation.


CITAL: Enters Bankruptcy on Court Orders
----------------------------------------
Cital S.A., which is based in Mar del Plata, entered bankruptcy
on orders from Court No. 13 of the province's Civil and
Commercial Tribunal. Eduardo Henderson y Asociados oversees the
bankruptcy process as the Company's receiver, relates local news
portal Infobae.

The deadline for credit verifications is March 4. Creditors must
have their claims authenticated by the receiver by the said date
in order to qualify for payments to be made after the Company's
assets are liquidated.

The individual reports must be submitted to the court on June 17
followed by the general report on August 16. The individual
reports contain the results of the credit verification process,
while the general report is a summary of the individual reports
after these are processed at the court.

CONTACT:  Cital S.A.
          Ave Colon 6040
          Mar del Plata


DISCO: Ahold Ends Exclusive Discussions With De Narvaez, Casino
---------------------------------------------------------------
Ahold confirmed Friday that exclusive negotiations with joint
prospective buyers, investor Mr. Fransisco de Narvaez and Casino
Guichard Perrachon S.A., for the sale of Ahold's controlling
stake in the Argentine supermarket chain Disco S.A. have ended.
Both parties failed to reach a final agreement.

Disco sale discussions are continuing with interested parties but
cannot be commented on in detail at this stage.

The intended divestment of Disco S.A. is part of Ahold's
strategic plan to restructure its portfolio, to divest
underperforming assets, and to concentrate on its mature and most
stable markets. As of June 30, 2003, Disco S.A. operated 237
stores in Argentina.


GATIC: Creditors Seek Repayment Proposal From Gotelli, Owners
-------------------------------------------------------------
A group of Argentine textile company Gatic's major creditors
wants Guillermo Gotelli and the Bakchellian family, owners of
Gatic, to submit a repayment proposal to begin settlement of its
ARS200 million indebtedness as a nonnegotiable condition for
approving the leasing of four of Gatic's plants to Gotelli.

Judge Juan Manuel Gutierrez Cabello, who oversees Gatic's formal
restructuring proceeding, approved the plan, as long as the
privileged creditors agree to it as well.

A source from Gatic said so far neither the banks (Nacion,
Ciudad, Provincia de Buenos Aires) nor the (tax agency) AFIP have
made contact with the textile company. "It would seem better to
me that they allowed us to reopen the plants first and then start
negotiating how to pay them."

Once the debt offer has been submitted, creditors will decide
whether to approve it or not, and subsequently decide on the plan
to rent the four plants and the sportswear chain Show Sport to an
investment group headed by Gotelli, who promised to invest US$15
million in order to restore operations on all of these assets.

Gatic defaulted on debt payments in 2001. Its liabilities
reached ARS430 million.


GEOSUR: Court Sets Informative Assembly Date
--------------------------------------------
Court No. 1 of the Civil and Commercial Tribunal of Trelew in the
Argentine province of Chubut ordered that the informative
assembly for the reorganization of local company Geosur S.A. be
held on March 9, according to a report by Infobae. The meeting is
one of the last parts of the reorganization process.


HILADO: Court Approves Petition to Undergo Reorganization
---------------------------------------------------------
Argentine company Hilado S.A., will undergo reorganization after
its motion for "Concurso Preventivo" was approved by Court No. 4
of the Civil and Commercial Tribunal of La Rioja.

Without indicating whether the court has assigned a receiver to
the case, Infobae reports that the deadline for the filing of the
individual reports is February 2 this year. These reports contain
the results of the credit verification process.

The general report, which is prepared after the individual
reports are processed at court, must be filed on March 3. The
informative assembly will be held on March 16.


SANTORIO DEL SUR CHAQUENO: Credit Check Ends February 12
--------------------------------------------------------
Creditors of Sanatorio del Sur Chaqueno S.R.L. must present their
claims to the Company's receiver for verifications before
February 12. The Company's receiver, Juan Carlos Balbiano,
examines claims to determine the nature and amount of the
Company's debts.

Court No. 1 of the Civil and Commercial Tribunal of Villa Angela
in Chaco handles the Company's case, reports local news portal
Infobae. The source, however, did not mention whether the court
has set the deadlines for the filing of the receiver's reports.

CONTACT:  Sanatorio del Sur Chaque¤o S.R.L.
          Balcarce 373
          Villa Angela, Chaco

          Juan Carlos Balbiano
          Parcela 35 mza 10 del Barrio Hipotecario
          Villa Angela, Chaco



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

TYCO INTERNATIONAL: Board Recommends Auditor Change
---------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC) announced Friday
that the Audit Committee and the Board of Directors will
recommend to Tyco shareholders the appointment of Deloitte &
Touche LLP as the company's independent auditors for fiscal year
2004. Shareholders will vote on the recommendation at the
company's Annual General Meeting (AGM) on March 25, 2004. The
Audit Committee's recommendation is contained in Tyco's revised
preliminary proxy statement, which was also filed Friday with the
Securities and Exchange Commission.

The Audit Committee's recommendation followed a previously
announced auditor selection process to review qualified audit
firms. Upon notification of the Audit Committee recommendation,
PricewaterhouseCoopers LLP (PwC) agreed to submit its resignation
as the company's independent auditors. PwC's resignation will be
effective as of the date that Tyco files its 10-Q for the quarter
ended Dec. 31, 2003 and Deloitte & Touche will serve as the
company's independent auditors from that date until the company's
AGM. The company, with the approval of its Audit Committee,
intends to continue to retain PwC to provide certain non-audit
services to the company during the year ending Sept. 30, 2004.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's leading provider of both
electronic security services and fire protection services; the
world's leading supplier of passive electronic components and a
leading provider of undersea fiber optic networks and services; a
world leader in the medical products industry; and the world's
leading manufacturer of industrial valves and controls. Tyco also
holds a strong leadership position in plastics and adhesives.
Tyco operates in more than 100 countries and had fiscal 2003
revenues from continuing operations of approximately $37 billion.

IMPORTANT INFORMATION

On Jan. 23, 2004, Tyco filed a revised preliminary proxy
statement with the Securities and Exchange Commission with
respect to its 2004 Annual General Meeting of Shareholders
scheduled for March 25, 2004. Tyco will file with the Commission,
and will furnish to Tyco shareholders, a definitive proxy
statement with respect to the 2004 Annual General Meeting of
Shareholders. Tyco may also file additional proxy solicitation
materials. TYCO ADVISES ALL SHAREHOLDERS TO READ THE DEFINITIVE
PROXY STATEMENT AND ANY ADDITIONAL PROXY SOLICITATION MATERIALS
CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. The preliminary proxy statement is, and
the definitive proxy statement and any additional proxy
solicitation materials will be, available for free at the
Securities and Exchange Commission's Internet web site at
www.sec.gov. You may also obtain a free copy of the preliminary
proxy statement, the definitive proxy statement when it becomes
available, and any other additional proxy solicitation materials,
on Tyco's website at www.tyco.com.

Tyco, its Board of Directors and director nominees, its executive
officers and certain other persons may be deemed to be
participants in Tyco's solicitation of proxies with respect to
the 2004 Annual General Meeting. Information concerning such
participants and their interests is set forth in Tyco's proxy
statement, which is available at the websites provided above.

CONTACT:  Media:
          David Polk
          Phone: 609-720-4387

          Investor Relations:
          Ed Arditte
          Phone: 609-720-4621

          John Roselli
          Phone: 609-720-4624


TYCO INTERNATIONAL: Declares Regular Quarterly Dividend
-------------------------------------------------------
The Board of Directors of Tyco International Ltd. (NYSE: TYC,
BSX: TYC) declared a regular quarterly cash dividend of one and
one quarter cents per common share. The dividend is payable May
3, 2004 to shareholders of record April 1, 2004.



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

CEMIG: To Place $141M, 10-Yr. Debentures on the Local Market
------------------------------------------------------------
In a bid to roll over debts this year, Brazil's Minas Gerais
state-controlled power company Cemig (NYSE: CIG) will sell BRL400
million (US$141mn) in 10-year debentures on the local market.

Citing newspaper Valor Economico, Business News Americas reports
that the planned debenture sale is part of Cemig's overall debt
plan to sell BRL1 billion worth of 10-year debentures on the
local market, plus US$200mn-250mn in dollar-denominated papers on
international markets.

Cemig has debts totaling BRL3.5 billion, BRL1 billion of which
comes due in the next 12 months, UBS Warburg analyst Gustavo
Gattass said.

"The debt issue makes sense as long as the price is right," he
said. "Cemig is doing very well to carry out such an operation.
Even though the new power regulation is not ready, you should not
miss a good opportunity."

Cemig registered the whole domestic issue at securities and
exchange commission CVM using new shelf registration regulations
that allow companies to register high amounts and long
maturities, and to sell the debt in several batches with smaller
maturities.

The first BRL400 million real tranche of the debentures should be
sold this year, since the Company has already called for bids to
model the sale, Valor reported. The 26 financial institutions,
which have shown an interest, were expected to submit bids last
Friday, with the winner to be announced this week.

CONTACT:  COMPANHIA ENERGETICA DE MINAS GERAIS
          Luiz Fernando Rolla, Investor Relations
          Phone:  + 011-5531-299-3930
          Fax: + 011-5531-299-3933
          E-mail: lrolla@cemig.com.br


GERDAU: Gerdau Ameristeel Completes Exchange Offer For Sr. Notes
----------------------------------------------------------------
Gerdau Ameristeel Corporation (TSX:GNA.TO) announced Friday the
successful completion of its offer to exchange up to $405,000,000
aggregate principal amount of registered 10 ?% Senior Notes due
2011 (the "Exchange Notes") of Gerdau Ameristeel Corporation
("Gerdau Ameristeel") and GUSAP Partners (together with Gerdau
Ameristeel, the "Issuers") for the Issuers' outstanding Notes
(the "Existing Notes") which were offered in a private placement
in June 2003. All of the Existing Notes validly tendered to the
exchange offer have been accepted for exchange.

The exchange offer was contemplated in the Registration Rights
Agreement dated June 27, 2003, pursuant to which the Issuers
agreed to register substantially identical Notes, including
unconditional guarantees on the Notes from certain of Gerdau
Ameristeel's subsidiaries, and to offer to exchange the
registered Exchange Notes for the Existing Notes.

The Exchange Notes (including the subsidiary guarantees) have
substantially the same form and terms as the outstanding Existing
Notes, except that the Exchange Notes are issued under a
prospectus in Ontario and the Exchange Notes and subsidiary
guarantees have been registered under the U.S. Securities Act of
1933, as amended, and are not subject to restrictions on
transfer.

The Exchange Notes have been accepted for clearance through the
DTC and assigned the following CUSIP number: 37373MAC6. No
payment of additional interest is required.

About Gerdau Ameristeel

Gerdau Ameristeel is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 6.8
million tons of mill finished steel products. Through its
vertically integrated network of 11 minimills (including one 50%-
owned minimill), 13 scrap recycling facilities and 26 downstream
operations, Gerdau Ameristeel primarily serves customers in the
eastern half of North America. The company's products are
generally sold to steel service centers, fabricators, or directly
to original equipment manufacturers for use in a variety of
industries, including construction, automotive, mining and
equipment manufacturing. Gerdau Ameristeel's common shares are
traded on the Toronto Stock Exchange under the symbol GNA.TO.

GUSAP Partners is a partnership formed between Gerdau Ameristeel
and its wholly-owned subsidiary, Gerdau Ameristeel MRM Special
Sections Inc., that was created for the purpose of borrowing and
providing funds to Gerdau Ameristeel and its subsidiaries.

CONTACT:  GERDAU AMERISTEEL
          Phillip E. Casey, President & CEO
          (813) 207-2225

          GERDAU AMERISTEEL
          Tom J. Landa, Vice President & Chief Financial Officer
          (813) 207-2300


IMPSAT BRAZIL: To Offer Local Telephony To Corporate Clients
------------------------------------------------------------
Impsat Brazil plans to offer local telephony services to its
corporate clients by year-end, Business News Americas reports,
citing the Company's chief executive Celio Bozola.

The Company, a unit of Argentina's Impsat, will offer services in
metro areas where it has extensive fiber optic capacity: Belo
Horizonte, Curitiba, Rio de Janeiro and Sao Paulo. Originally,
the Company had planned to offer services in the cities of
Brasilia, Campinas and Porto Alegre, but changed its mind due to
the high cost of interconnection fees, Bozola said.

Impsat Brazil has told telecoms regulator Anatel it wants to
return the licenses to avoid paying associated investment
commitments, he added.


IMPSAT BRAZIL: Likely To Participate in Bidding For Anatel's SCD
----------------------------------------------------------------
Impsat Brazil CEO Celio Bozola indicated that the Company may bid
for Anatel's new broadband licenses (SCD), to be sold later this
year, relates Business News Americas.

"We are analyzing the possibility of purchasing some SCD
licenses," Bozola said.

According to the report, the licenses are designed to break the
stranglehold of incumbent fixed line operators and boost the
number of broadband internet access lines, with a special
emphasis on educational and health centers that will be sponsored
by the government's universal access fund Fust.

This unbundling of data services shows Anatel is moving in the
right direction, Bozola said, but added that the agency will have
to be strict about enforcing rules for the business to be
profitable for new entrants.


PARMALAT BRASIL: Needs $36M in Credit Lines To Stay Afloat
----------------------------------------------------------
Parmalat's Brazilian dairy unit needs US$36 million in credit
lines to keep operating, a lawyer said Friday.

The money "is for working capital, just for the company to keep
operating," said Carlos Casseb, who has been appointed to protect
the interests of Parmalat's Brazilian creditors.

Parmalat has been struggling to keep up with its payments to
Brazilian milk producers and other suppliers. Brazilian banks cut
off the dairy unit's credit lines last month after the scandal
broke.

All of Parmalat's Brazilian units have US$1.6 to US$1.8 billion
of debt, according to Parmalat's spokesman in Sao Paulo. The
dairy unit is responsible for about US$160 million of this
amount.

Brazilian federal police are trying to determine whether Parmalat
funds were hidden in Brazil or illicitly transferred abroad,
while two other separate investigations into the company's
finances and books are scheduled to be launched soon.


PARMALAT: To Get EUR150 Mln Loan From a Group of Banks
------------------------------------------------------
Parmalat Finanziaria S.p.A., under Extraordinary Administration,
communicates that Parmalat S.p.A. under Extraordinary
Administration on 21 January 2004 received authorization from the
Minister of Productive Activities to finalize a loan of up to
EUR150 million with a group of banks that has already been
chosen.

The loan is intended to cover the operating requirements of
Parmalat Group companies both in Italy and abroad, while a
definitive plan for the Group's economic and financial
restructuring is in the process of being finalized.

Banca Popolare di Lodi, which is leading the group of banks, has
already approved its participation in the transaction for an
amount of EUR15 million. This sum will be made available
immediately and the relevant agreement has been signed Thursday,
Jan. 22, 2004.


PARMALAT: Fisa Capital Expresses Interest in South America Units
----------------------------------------------------------------
Brazilian financier Ricardo Repanas announced that his company
Fisa Capital SA, member of FISA GROUP, is interested in acquiring
the assets of Parmalat in South America.

The acquisition program would be guaranteed by capital financial
resources and the company's debts would be renegotiated by the
split of suppliers and buyers contracts.

CONTACT:  Fisa Capital S.A.
          Ricardo Repanas
          Phone: 11-3078-0362 or 11-9870-3987 (cell)
          Email: fisaholding@globo.com



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

MILLICOM INTERNATIONAL: SEC Declares Notes Registration Effective
-----------------------------------------------------------------
Millicom International Cellular S.A. ("Millicom") (Nasdaq: MICC),
announced Friday that its registration statement on Form F-3 with
the U.S. Securities and Exchange Commission (the "SEC") covering
resales by certain selling security holders of Millicom's 2%
Senior Convertible PIK Notes due 2006 (the "Notes") and the
shares of Millicom common stock issuable upon conversion of the
Notes has been declared effective by the SEC. Millicom will not
receive any proceeds from the resale of the Notes or the common
stock by such holders.

The Notes were originally issued in May 2003 in an exchange offer
and consent solicitation transaction exempt from the registration
requirements of the Securities Act. The registration statement
was filed to comply with Millicom's obligations under the
indenture governing the Notes.

This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16 cellular
operations and licenses in 15 countries. The Group's cellular
operations have a combined population under license of
approximately 382 million people. In addition, MIC provides high-
speed wireless data services in five countries.

CONTACTS:  Millicom International Cellular S.A., Luxembourg
           Marc Beuls, President and Chief Executive Officer
           Telephone: +352 27 759 101

           Shared Value Ltd, London
           Andrew Best
           Investor Relations
           Telephone: +44 20 7321 5022

           URL: www.millicom.com



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

* IMF Deputy Director Issues Statement on the Dominican Republic
----------------------------------------------------------------
Mr. Agust¡n Carstens, Deputy Managing Director of the
International Monetary Fund (IMF), made the following statement
Friday:

"The management of the IMF will recommend to its Executive Board
that it complete the first review of the economic program of the
Dominican Republic supported by the two-year Stand-By Arrangement
with the Fund (see Press Release No. 03/147). Completion of the
review would enable the country to draw on SDR 43.78 million
(US$66 million). It is expected that the Executive Board will
consider the review by mid-February.

"The revised program proposed by the Dominican authorities is
designed to address the deviations from the economic program that
emerged soon after the approval of the Stand-By Arrangement with
the IMF. It seeks to strengthen the fiscal position, provide for
a more stable monetary environment, ensure a foreign exchange
market free of administrative interference, strengthen the
situation of the electricity sector, and continue with the
process of banking reform.

"In recent weeks, significant progress has been made in
implementing this agenda. Congress has approved the 2004 budget
with a view to significantly strengthening public finances in the
months ahead. Monetary policy has been set to ease pressures on
the currency and reverse the trend of rising inflation. Steps
have been taken to unify the foreign exchange market and to
ensure that it operates free of interference. At the same time,
financing assurances have been obtained from the Paris Club.

"We are hopeful that these policies, properly implemented, will
help stabilize the economy and alleviate the adverse social
consequences of the recent crisis."

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs
          Phone: 202-623-7300
          Fax: 202-623-6278

          Media Relations
          Phone: 202-623-7100
          Fax: 202-623-6772



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

PETROECUADOR: Tecpetrol, Rally Energy Purchase Bidding Rules
------------------------------------------------------------
The tender being held by Ecuador's state oil company Petroecuador
to boost production on its four main fields continues to draw
interest from foreign firms.

According to Business News Americas, Argentine oil company
Tecpetrol and the Canadian-Ecuadorian consortium Rally Energy
bought bidding rules to participate in the tender for the Lago
Agrio and Auca fields, respectively.

The other two blocks on offer are Culebra-Yulebra and
Shushufindi.

Tecpetrol has already purchased bidding rules for the Auca and
Culebra-Yulebra blocks.

The four blocks have a total of 904 million barrels (mb) of
estimated reserves. Auca has 199mb, Culebra-Yulebra 73mb, Lago
Agrio 62mb and Shushufindi 569mb.

Petroecuador has delayed the deadline to receive bids on the
blocks to March 23 from January 23 to allow more companies to
participate in the tender.



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

GRUPO IUSACELL: Agrees To Sell 143 Towers To American Tower
-----------------------------------------------------------
Mexican wireless communications provider Grupo Iusacell SA (CEL)
informed the local stock exchange that it has agreed to sell up
to 143 signal towers to the Mexican unit of American Tower Corp.
(AMT), relates Dow Jones.

The deal was made in December, Iusacell told the bourse without
revealing the value of the transaction.

The Company is now in the process of transferring the towers,
which it will later rent back from American Tower, which owns,
operates and develops broadcast and wireless communications sites
in North America.

CONTACT:  GRUPO IUSACELL, S.A. DE C.V.
          Jose Luis Riera K., CFO
          Phone: +011-5255-5109-5927

          Carlos J. Moctezuma, Head of Investor Relations
          Phone: +011-5255-5109-5759
          Email: carlos.moctezuma@iusacell.com.mx


TV AZTECA: Cauley Geller Announces Class Action Lawsuit
-------------------------------------------------------
The Law Firm of Cauley Geller Bowman & Rudman, LLP announced on
Friday that a class action lawsuit has been filed in the United
States District Court for the Southern District of New York on
behalf of purchasers of TV Azteca, S.A. de C.V. (NYSE:TZA) (TV
Azteca" or the "Company") publicly traded securities during the
period between October 6, 2003 and January 7, 2004, inclusive
(the "Class Period"). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the
firm's website at
http://www.cauleygeller.com/show_case.asp?ccode=224&pcode=10&pp=4
.

During the Class Period defendants failed to disclose certain
related- party transactions between a privately-held company
jointly owned by the Company's Chairman, Ricardo Salinas Pliego
("Salinas") and the Company's President, M. Saba Masri ("Saba")
and one of the Company's affiliates -- Unefon Corporacion RBS
("Unefon") a wireless telecommunications provider in Mexico.
Specifically, defendants denied any affiliation with a "white-
knight" group of investors that had saved Unefon from bankruptcy
back in June of 2002. Defendants stonewalled disclosure of the
true facts, including ignoring advice from their securities
lawyers in the U.S., until a spin-off of Unefon was completed in
December 2002. The spin-off anticipated that Unefon's shares
would be registered to trade in the U.S. markets facilitating a
merger with Salinas' other telecommunications holdings. Then, on
January 9, 2004, defendants stunned the markets by admitting that
the "white-knight" investors were in fact Salinas and Saba who
made a profit of $218 million when their privately-held company
bought Unefon's debt for $107 million and then sold it back for
$325 million.

Market reaction to defendants' belated disclosures was severe. By
January 12, 2003, the first day of trading following the
Company's admission the price of TV Azteca securities fell more
than 14.9 percent in value to close at $7.76 per share in heavy
trading volume.

If you bought TV Azteca publicly traded securities between
October 6, 2003 and January 7, 2004, inclusive, and you wish to
serve as lead plaintiff, you must move the Court no later than
March 23, 2004. If you are a member of this class, you can join
this class action online at
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1. Any
member of the purported class may move the Court to serve as lead
plaintiff through Cauley Geller or other counsel of their choice,
or may choose to do nothing and remain an absent class member.

CONTACT:  CAULEY GELLER BOWMAN & RUDMAN, LLP
          Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
          P.O. Box 25438
          Little Rock, AR 72221-5438

          Client Relations Department:
          Jackie Addison, Heather Gann or Chandra West
          Toll Free: 1-888-551-9944
          Fax: 1-501-312-8505
          E-mail: info@cauleygeller.com

          Home page: http://www.cauleygeller.com/


XIGNUX: S&P Affirms Ratings; Notes Rated 'B+'
---------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' rating to
Mexico-based Xignux S.A. de C.V.'s (Xignux) proposed 10-year $126
million senior notes due 2014. The new notes will be issued as
part of Xignux's offer to exchange its outstanding 9% senior
notes due August 2004. The 'BB-' local and foreign currency long-
term corporate credit ratings on the company were affirmed. The
outlook is negative.

The 'B+' rating assigned to Xignux's notes due 2004 and the new
notes reflects the structural subordination of the issue relative
to the company's priority liabilities. Despite the debt at the
holding company being guaranteed by some of the subholding and
operating subsidiaries, the proportion of priority liabilities
(i.e., liabilities at operating company level vs. holding company
level) relative to consolidated total assets is significant
(around 30%), leading to a possible low residual claim for
Xignux's holding company creditors. Standard & Poor's does not
consider the company's exchange offer coercive, given the
adequate liquidity and market terms of the offer. The principal
difference between the existing and the new notes, in addition to
the 10-year tenor of the new notes and a higher coupon, is the
substitution of the negative pledge covenant for a number of
restrictive covenants. The company is also soliciting, in a proxy
solicitation, an amendment to the trust deed of the existing
notes to remove the negative pledge covenant to be able to
structure certain financial transactions that could facilitate
the company's access to the Mexican capital markets.

"The ratings on Xignux (formerly Axa S.A. de C.V.) reflect its
high leverage, the cyclical nature of some of its end-markets,
and increasing costs as a result of the strength of the Mexican
peso in recent years. The ratings also consider Xignux's
significant market share positions, product diversity, and
vertical integration," said Standard & Poor's credit analyst Jose
Coballasi. Its emphasis on high quality has attracted world-
recognized joint-venture partners, providing Xignux, a
diversified holding company, with low-cost access to state-of-
the-art technology and enhancement of its export possibilities.

Xignux is a diversified holding company whose subsidiaries
manufacture a variety of products, mostly for industrial markets.
The company sells auto parts, chemicals, food, cable, foundry,
power, and distribution transformers.

The outlook is negative. The successful refinancing of the
company's short-term debt maturities, particularly its notes due
august 2004, and an improvement in the company's key operating
and financial measures, particularly the company's operating
margin and debt-to-EBITDA ratio, during the year could lead to a
stable outlook. Failure to meet the aforementioned expectations
could lead to a downgrade that would not be limited to one notch.

ANALYST:  Jose Coballasi
          Mexico City
          Phone: (52) 55-5279-2014

          Santiago Carniado
          Mexico City
          Phone: (52) 55-5279-2013



=================
N I C A R A G U A
=================

* IMF, WB Support $4.5B in Debt Service Relief for Nicaragua
------------------------------------------------------------
The International Monetary Fund (IMF) and World Bank's
International Development Association (IDA) agreed last week that
Nicaragua has taken the steps necessary to reach its completion
point under the enhanced Heavily Indebted Poor Countries (HIPC)
Initiative. Debt relief under the enhanced HIPC Initiative from
all of Nicaragua's creditors will amount to approximately US$4.5
billion over time. Nicaragua becomes the 10th country to reach
its completion point under the enhanced framework of the HIPC
Initiative, joining Benin, Bolivia, Burkina Faso, Guyana,
Mauritania, Mali, Mozambique, Tanzania and Uganda.

"The debt relief agreement is the result of the Nicaraguan
government's steadfast pursuit of sound macroeconomic policies
and structural reforms, and dedication to improve governance and
fight corruption," said World Bank President James D. Wolfensohn.

"While this debt relief will no doubt help reinforce investor
confidence and facilitate economic growth, even more important is
the government's strong ownership of its economic program, and
its commitment to preserving stable macroeconomic conditions and
promoting broad-based economic growth with structural reform,"
IMF Deputy Managing Director Agust¡n Carstens added.

The International Development Association (IDA) will provide debt
relief under the enhanced HIPC Initiative amounting to US$382.6
million in debt service relief (US$190.9 million in net present
value (NPV) terms2), to be delivered through a 90 percent
reduction in debt service on IDA credits from 2001 through 2023.
The IMF will provide debt relief of approximately US$106.5
million (US$82.2 million, or SDR 63.5 million, in NPV terms) on
payments falling due to the IMF during 2002-09. The remaining
bilateral and multilateral creditors are also expected to provide
their share of relief required under the enhanced HIPC
Initiative.

In recognition of the government's satisfactory progress in
implementing sound macroeconomic and structural policies under
the enhanced HIPC Initiative, Nicaragua's total external debt is
to be reduced by approximately 73 percent in NPV terms.

Resources made available by debt relief provided under the HIPC
Initiative are being allocated to fund key pro-poor growth
programs, which are outlined in Nicaragua's Poverty Reduction
Strategy Paper (PRSP). Nicaragua's PRSP is the result of broad-
based consultations and presents the government's objectives and
priority measures for reducing poverty over the next three years.

Background

Nicaragua is one of the poorest countries in Latin America,
although social and demographic indicators have been improving,
they have done so at a very gradual pace. The population living
in poverty has fallen steadily in the 1990s from 50.3 percent in
1993 to 45.8 percent in 2001, while the incidence of extreme
poverty fell from 19.4 percent to 15.1 percent in the same
period.

Following the destruction left by hurricane Mitch in 1998,
Nicaragua faced a difficult economic and political environment.
Weak policies in the face of political transition, along with a
sharp deterioration in the terms of trade in 2000 and a slowdown
of the real GDP growth, contributed to large fiscal and external
deficits in 2001.


By 2002, the economy started recovering after the new government
implemented a policy package that placed the public sector
finances on a sustainable path. In 2003, further progress was
achieved with a prudent budget, a second round of tax reform, the
sale of central bank assets acquired from failed banks, and
refinancing agreements on the domestic debt. As a result, the
fiscal deficit was reduced to about 3 percent of GDP in 2003, and
real GDP growth started to recover. Nevertheless, achieving debt
sustainability and sustained growth will require continued
structural reforms and prudent fiscal policies.

In addition to achieving greater macroeconomic stability and
sustained growth, Nicaragua also managed to increase its share of
public spending devoted to poverty reduction programs. The
country has also seen an improvement of investor confidence, at
least partially inspired by the current administration's anti-
corruption campaign and commitment to restore the rule of law.

Steps Taken to Reach the Completion Point Under the Enhanced HIPC
Initiative

Upon reaching its decision point under the enhanced framework of
the HIPC Initiative in December 2000, Nicaragua committed to
undertake work in three areas in order to reach the completion
point and receive irrevocable debt relief under the enhanced
framework:

(i) Completion of a full PRSP through a participatory process,
and satisfactory assessment by the Bank and Fund;

(ii) Continued implementation of strong macroeconomic and
structural policies supported by an arrangement with the IMF
under the PRGF; and,

(iii) Implementation of a set of social and structural reforms
that have been designed to (a) promote human capital development
and social protection, especially through better health and
education, (b) improve governance, strengthen public sector
administration, and increase transparency, (c) introduce a
fiscally sustainable pension system, and (d) expand the provision
of public infrastructure services through greater private
participation.

The HIPC Initiative

In 1996, the World Bank and the IMF launched the HIPC Initiative
to create a framework for all creditors, including multilateral
creditors, to provide debt relief to the world's poorest and most
heavily indebted countries, and thereby reduce the constraint on
economic growth and poverty reduction imposed by the debt build-
up in these countries. The Initiative was modified in 1999 to
provide three key enhancements:

- Deeper and Broader Relief. External debt thresholds were
lowered from the original framework. As a result, more countries
have became eligible for debt relief and some countries became
eligible for greater relief.

- Faster Relief. A number of creditors began to provide interim
debt relief immediately at the "decision point." Also, the new
framework permitted countries to reach the "completion point"
faster.

- Stronger Link Between Debt Relief and Poverty Reduction. Freed
resources were to be used to support poverty reduction strategies
developed by national governments through a broad consultative
process.

To date, 27 countries - two-thirds of the HIPCs - have reached
their "decision points" and are receiving debt relief from all
sources that will amount to more than US$50 billion over time,
and an average NPV stock-of-debt reduction of nearly two-thirds.

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF External Relations Department
          Public Affairs
          Phone: 202-623-7300
          Fax: 202-623-6278

          Media Relations
          Phone: 202-623-7100
          Fax: 202-623-6772


* IMF Approves US$20.7M Additional Aid for Nicaragua
----------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the fourth review of Nicaragua's performance under a
three-year, SDR 97.50 million (about US$144.6 million) Poverty
Reduction and Growth Facility (PRGF) arrangement that was
approved on December 4, 2002 (see Press Release No. 02/53). In
completing the review, the Executive Board approved Nicaragua's
request for waivers of the nonobservance of performance criteria.
In addition, the Executive Board completed the financing
assurances review under Nicaragua's PRGF arrangement. These
decisions enable the release of a further SDR 13.93 million
(about US$20.7 million) to Nicaragua, which brings the total
amount approved under the program to SDR 41.79 million (about
US$62 million).

The PRGF is the IMF's concessional facility for low-income
countries. It is intended that PRGF-supported programs are based
on country-owned poverty reduction strategies adopted in a
participatory process involving civil society and development
partners, and articulated in a Poverty Reduction Strategy Paper
(PRSP). This is intended to ensure that PRGF-supported programs
are consistent with a comprehensive framework for macroeconomic,
structural, and social policies to foster growth and reduce
poverty. PRGF loans carry an annual interest rate of 0.5 percent,
and are repayable over 10 years with a 5«-year grace period on
principal payments.

Following the Executive Board's discussion on Nicaragua, Agust¡n
Carstens, Deputy Managing Director and Acting Chairman, said:

"Nicaragua's recent economic performance continues to be
commendable. Prudent macroeconomic policies and structural
reforms have strengthened economic prospects and enabled the
country to reach the enhanced HIPC Initiative completion point.
Economic growth is recovering, inflation remains low, and the
external position has improved. With economic growth projected to
rise further and the external environment becoming more
favorable, the coming year presents an opportunity to capitalize
on these hard-won achievements and move ahead forcefully with the
reform agenda.

"The authorities have adopted a strengthened growth strategy,
which emphasizes private-sector-led growth and social equity. The
public sector is expected to play a supportive role by providing
the necessary basic infrastructure, improved education
opportunities, and a more certain and transparent legal
framework. Important strides have also been made in improving
governance and strengthening public institutions. Sustaining
these efforts will provide a favorable environment for growth and
poverty reduction, in line with the objectives of the PRSP and
the new National Development Plan.

"Notwithstanding these achievements, Nicaragua continues to face
important challenges. In particular, widespread poverty remains a
major concern; the public debt burden is still high, even after
the enhanced HIPC Initiative completion point; and the highly-
dollarized financial sector needs to be strengthened further. The
authorities' medium-term economic program, embodied in the PRSP
and the National Development Plan, addresses these challenges
through the continued implementation of prudent macro economic
policies and structural reforms. In carrying the program forward,
it will be important to deepen the broad political and social
consensus that has supported enhanced HIPC Initiative completion
point, in particular by strengthening further transparency and
governance in public sector operations and by extending the
national consultation process," Mr. Carstens said.



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

MINERA VOLCAN: BCP Upgrades Stock Recommendation to `Buy'
---------------------------------------------------------
Peru's Banco de Credito (BCP) upgraded its stock recommendation
for Minera Volcan, the country's second largest zinc producer,
from `reduce' to `buy,' reports Business News Americas.

The upgrade comes amid BCP's positive forecast for the mining
industry in the first quarter of this year in light of strong
base and precious metal prices that it expects to continue at
least through the first half of the year.

The bank's analysts say the positive scenario will have a
particularly favorable impact on Volcan.

"We expect Volcan to become the stock to keep an eye on this year
as it finally starts posting positive results thanks to rising
zinc prices," BCP says in a report.

BCP forecasts net earnings of US$2.0 million for Volcan in the
fourth quarter of 2003, 21.5% down on US$2.6 million in same
quarter 2002, and a loss of US$9.5 million for the whole of last
year, an improvement on 2002's US$11.6 million loss.

However, the bank "strongly" believes that Volcan will reverse
negative results in 2004 as it increases production at its main
operating units to take advantage of the solid fundamentals for
zinc abroad. It anticipates profits of US$21 million this year
for the miner, Business News Americas suggests.

CONTACT:  COMPANIA MINERA VOLCAN
          Av Gregorio Escobedo
          710 Jesus Mara
          Lima, Peru
          Tel: +51 1 219-4000
          Fax: +51 1 261-9716
          Contact:
          Mr. FMG Sayan (Francisco), Chairperson



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

PARMALAT URUGUAY: Financial Unit Sees $863M From Other Units
------------------------------------------------------------
Wishaw Trading, Parmalat's Uruguayan financial subsidiary, cashed
in around US$863 million from other subsidiaries worldwide, says
El Observador. Until June 2002, Parmalat Uruguay held 30% of
Wishaw, a stake passed on to Parmalat Venezuela since then.
Wishaw, which was created on 1993, was under direct management of
the parent.

In the meantime, milk farmers attended a meeting called by
Parmalat to clear up the effects of the parent's crisis on the
subsidiary, which has US$5 million in debts.



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

EDC: Local Fitch Ups Risk Ratings on Commercial Notes
-----------------------------------------------------
Venezuelan utility Electricidad de Caracas (EDC) had its ratings
upgraded by the local arm of credit ratings agency Fitch ratings.

According to a Business News Americas report, the agency upgraded
its risk ratings on commercial papers issued by EDC totaling
VEB150 billion or its equivalent in dollars. The series issued in
bolivars were upgraded to A2 from A3, while the series issued in
dollars where upgraded to C1 from C3.

The rating actions reflect EDC's stable and satisfactory sales
levels, wide operating margin, adequate liquidity and coverage
levels, and its history of successful operations. However, the
government's decision to fix sector rates and the resulting
vulnerability of EDC's profits restrict the Company's ratings.

EDC is based in capital city Caracas and is a subsidiary of US
power company AES.

CONTACT:  AES VENEZUELA
          Avenida Rio de Janeiro
          Qta. Tres Pinos
          Chuao, VE-1061 Caracas, Venezuela
          Phone: +58 14 929 2552
          Fax: +58 2 9937296
          E-mail: venezuela@aes.org
          Contact: Elmar Leal, Chairman
          Juan Font, Vice Chairman

          AES CORP
          Investor Relations
          Kenneth R. Woodcock, 703/522-1315
          www.investing@aes.com
          Website: http://www.aesc.com/



               ***********


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

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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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