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        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

            Wednesday, May 25, 2005, Vol. 6, Issue 102

                            Headlines

A R G E N T I N A

ANTOVALLE: Court Orders Liquidation
ATICO SUR: Court Declares Company Bankrupt
BERSA: Auction Attracts Seven Banks
HOSPEDAR: Initiates Bankruptcy Proceedings
IMPSAT FIBER: Reports 8.9% Increase in Net Revenues in 1Q05

POLICLINICA: Begins Liquidation
ROBLES CATEDRAL: Court Designates Trustee for Liquidation
TELECOM ARGENTINA: Opens Bidding for Wireless Equipment
* ARGENTINA: US Court Lifts Freeze on Defaulted Bonds


B E R M U D A

FOSTER WHEELER: To Supply Biomass-Fired Boiler to Portugal
GLOBAL CROSSING: Ex-Workers Receive Money From $84M Settlement


B R A Z I L

BRASKEM: S&P Affirms, Assigns Ratings
BRASKEM: Fitch Rates $150M Issuance 'BB-'
CSN: S&P Assigns 'BBB-' to CSN Islands VI Corp 2005-1
TCP: Bovespa Shares Auction Falls Flat
UNIBANCO: S&P Releases Ratings Analysis


C H I L E

ELECTROANDINA: Braces for Possible Energy Shortage


C O L O M B I A

EMCALI: Earmarks COP18.5 Bln to Line Aguablanca Canal
EMCALI: Moves to Improve Client Collection


G U A T E M A L A

TECO ENERGY: Fitch Rates $200M Notes 'BB+'; Outlook Stable


J A M A I C A

DYOLL GROUP: Court to Hear Petition for Full Liquidation June 1


M E X I C O

AXTEL: Reports 24% Increase in Income in 1Q05 Vs. 1Q04
AXTEL: Signs Deal With Cablemas to Provide Combined Services
DIRECTV GROUP: Successfully Launches Directv 8 Satellite


P A N A M A

WILLBROS GROUP: Brodsky & Smith, LLC Files Class Action Lawsuit


U R U G U A Y

GALICIA URUGUAY: Extends Deadline for Exchange Offer


V E N E Z U E L A

PDVSA: Unveils $52.8M Plan to Raise El Palito Fuel Production

     -  -  -  -  -  -  -  -

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

ANTOVALLE: Court Orders Liquidation
-----------------------------------
Antovalle S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 22 of Buenos Aires'
civil and commercial tribunal. The declaration effectively
prohibits the Company from administering its assets, control of
which will be transferred to a court-appointed trustee.

Infobae reports that the court appointed Alicia Monica Gadara as
trustee. Ms. Gadara will be reviewing creditors' proofs of claim
until June 21, 2005. The verified claims will serve as basis for
the individual reports to be presented for court approval on
Aug. 16, 2005. The trustee will also submit a general report of
the case on Sep. 28, 2005.

Clerk No. 43 assists the court on this case, which will end with
the sale of the Company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Alicia Monica Gadara, Trustee
         Presidente Roque Saenz Pe¤a 651
         Buenos Aires


ATICO SUR: Court Declares Company Bankrupt
------------------------------------------
Atico Sur S.A. entered bankruptcy on orders from Court No.11 of
the Buenos Aires' civil and commercial tribunal, reveals
Infobae.

Working with Clerk No.21, the court assigned Ricardo Adrogue as
trustee, who will verify creditors' proofs of claim until July
4, 2005.

Creditors who fail to have their claims validated before the
deadline will be disqualified from receiving any payments to be
made after the Atico Sur's assets are liquidated.

The individual reports, which are due on Aug. 30, 2005, are to
be prepared upon completion of the verification process. The
court also requires the trustee to prepare a general report and
file it on Oct. 13, 2005. This report contains a summary of the
results in the individual reports.

CONTACT: Ricardo Adrogue, Trustee
         Bouchard 468
         Buenos Aires


BERSA: Auction Attracts Seven Banks
-----------------------------------
Seven Argentine banks purchased the bidding rules for the
auction of Banco de Entre Rios (BERSA), scheduled for May 24,
reports Business News Americas. The banks are Galicia, Macro
Bansud, Comafi, Hipotecario, Credicoop, Santiago del Estero and
Nuevo Banco de Santa Fe.

BERSA is one of the three banks taken over by federal bank Banco
Nacion after its French parent, Credit Agricole, left Argentina
in the midst of the country's economic and financial crisis in
2002.


HOSPEDAR: Initiates Bankruptcy Proceedings
------------------------------------------
Court No. 23 of Buenos Aires' civil and commercial tribunal
declared Hospedar S.A. "Quiebra," reports Infobae. Clerk No.46
assists the court on the case, which will close with the
liquidation of the Company's assets to repay creditors.

The court-appointed trustee, Jessica Andrea Minc, will verify
creditors' claim until July 27, 2005 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on Sept.
9, 2005, followed by the general report on Oct. 26, 2005.

CONTACT: Jessica Andrea Minc, Trustee
         Avda Santa Fe 2534
         Buenos Aires


IMPSAT FIBER: Reports 8.9% Increase in Net Revenues in 1Q05
-----------------------------------------------------------
Impsat Fiber Networks, Inc. files Quarterly Report on Form 10-Q
with the Securities and Exchange Commission:

Results of Operations

Three Months Ended March 31, 2005 Compared to Three Months Ended
March 31, 2004

Revenues. Our total net revenues for the three months ended
March 31, 2005 and 2004 equaled $59.9 million and $55.1 million,
respectively. Net revenues were composed of net revenues from
services and sales of equipment.

Our net revenues from services for the three months ended March
31, 2005 totaled $59.8 million, an increase of $4.9 million (or
8.9%) compared to the three months ended March 31, 2004. Our net
revenues during the three months ended March 31, 2005 included
net revenues from:

- broadband and satellite data transmission services
- Internet, which is composed of our Internet backbone access
and managed modem services
- value added services, including hosting, housing and
collocation services, and
- telephony, including local, national and international long-
distance services

The increase in our total net revenues from services in the
first quarter of 2005, as compared to the corresponding period
in 2004, is due to increased revenues from services in all of
our business lines. Changes in our revenues during the first
quarter of 2005 as compared to the first quarter of 2004 related
to the following:

- Revenues from broadband and satellite services during the
first quarter of 2005 increased as compared to the first quarter
of 2004, as a result of revenues from new customers and
expansion of services from existing customers, which more than
offset price decreases resulting from contractual renewals with
existing customers and customer losses.

- We experienced higher Internet revenues principally because
of new customers and expansion of services to existing
customers, partially offset by pricing pressure resulting from
competition and customer losses.

- Our revenues from value added services increased in the first
quarter of 2005 compared to the same period in 2004, principally
because of revenues from new customers.

- Our telephony services revenues increased during the first
quarter of 2005 as compared to first quarter of 2004 due to our
increased delivery of switched voice services to corporate
customers in Argentina, our expansion of international call
terminations to end-user customers in Peru, and to increased
revenues from our corporate customers in Brazil, where we
launched our corporate telephony services at the end of 2003.
These effects were partially offset by a decline in traffic
volume and services in the United States.

We had 3,596 customers at March 31, 2005, compared to 3,314
customers at December 31, 2004, and 2,910 customers at March 31,
2004.

During the first quarter of 2005, we gained a net total of 282
customers, an increase of 8.5% compared to December 31, 2004.
Compared to March 31, 2004, we experienced a net gain of 686
customers, an increase of 23.6%. As we expand, the average size
of customers, including the average revenue per customer, has
decreased. In addition, as we increase our customer base and the
initial or renewed term of customer contracts conclude, we face
competition regarding subsequent renewals. We do not believe
that any of our customer losses in the first quarter of 2005
will have a significant aggregate effect on our total net
revenues from services.

In addition to net revenues from services, our total net
revenues for the first quarter of 2005 included revenues from
sales of equipment, which totaled $0.1 million compared to $0.2
million for the first quarter of 2004. Because equipment sales
are ancillary to our core business and are generally engaged in
by our company only on an opportunistic basis, we are currently
unable to predict more than minimal sales of equipment during
2005.

Our net revenues at IMPSAT Argentina totaled $18.1 million, an
increase of $3.3 million (or 22.3%) compared to the three months
ended March 31, 2004. Argentina is our largest market in terms
of number of customers and in revenues. After three years of
adverse economic conditions that commenced in 1999, in January
2002 the Argentine Government defaulted on its external debt
payments and devalued its currency, exacerbating declining
commercial confidence and activity and further inflating
exorbitant costs of financing for Argentine companies. Although
Argentina's economy has shown signs of recovery during 2004 and
the first three months of 2005, it continues to experience
adverse economic conditions and a lack of access to
international capital markets. The political and economic
conditions in Argentina, our largest country of operation, will
continue to materially affect our financial condition and
results of operations.

IMPSAT Brazil's net revenues from services for the first quarter
of 2005 totaled $10.1 million, an increase of $2.7 million
(37.1%) compared to the first quarter of 2004. In local currency
terms, IMPSAT Brazil's net revenues for the first quarter of
2005 increased by 26% compared to the corresponding quarter in
2004. IMPSAT Brazil's results were positively affected by the
appreciation of the real against the U.S. dollar. At March 31,
2004, the real traded at a rate of R$2.94 = $1.00 and it
appreciated to R$2.67 = $1.00 at March 31, 2005. However, future
devaluations of the real and the decline in growth in the
Brazilian economy would have an adverse effect on IMPSAT
Brazil's and our company's overall financial condition and
results of operations.

IMPSAT Colombia recorded net revenues of $14.2 million, an
increase of $0.6 million (4.5%) compared to the first quarter of
2004. This increase is mainly attributed to the appreciation of
the Colombian peso against the U.S. dollar, which resulted in an
increase in recorded revenues in U.S. dollars for contracts
denominated and payable in Colombian pesos, new customer
contracts and expansion of services (particularly data center
and internet) provided to existing customers.

Total net revenues at IMPSAT Venezuela equaled $8.2 million for
the first quarter of 2005, compared to $8.1 million for the
first quarter of 2004. Venezuela has experienced and continues
to experience political and economic uncertainty following the
attempted military coup staged against that country's President
Hugo Chavez during April 2002 and the labor strikes that
commenced in December 2002 and ended two months later. The
Venezuelan government imposed foreign exchange and price
controls during February 2003, making it difficult for our
customers in that country to obtain the U.S. dollars needed to
make payments due to us in U.S. dollars on a timely basis. These
foreign exchange controls also limit our ability to convert
local currency into U.S. dollars and transfer funds out of
Venezuela and to obtain U.S. dollars required to purchase needed
telecommunications equipment and repair parts. The continuation
or worsening of this crisis in Venezuela could have a material
adverse effect on IMPSAT Venezuela's results of operations and
financial condition.

IMPSAT USA recorded total net revenues of $6.6 million for the
first quarter of 2005, compared to $7.3 million for the first
quarter of 2004. The difference is primarily a result of a $0.7
million decrease in broadband and satellite services due to
downward price renegotiations.

Direct Costs. Our direct costs for the first quarter of 2005
totaled $31.0 million, an increase of $7.0 million (or 29.3%),
compared to the first quarter of 2004. Of our total direct costs
for the first quarter of 2005, $10.5 million related to the
operations of IMPSAT Argentina, compared to $7.2 million at
IMPSAT Argentina for the first quarter of 2004. Direct costs for
IMPSAT Brazil totaled $5.2 million for the first quarter of
2005, compared to $3.6 million for the first quarter of 2004.
Direct costs of our subsidiaries are described prior to the
elimination of inter-company transactions.

(1)  Contracted Services.  Contracted services costs include
costs of maintenance and installation (and de-installation)
services provided by outside contractors. During the first
quarter of 2005, our contracted services costs totaled $5.2
million, an increase of $0.9 million (or 20.5%) compared to the
first quarter of 2004. Of this amount, maintenance costs for our
telecommunications network infrastructure, including the
Broadband Network, totaled $3.3 million for the first quarter of
2005 compared to $3.0 million during the first quarter of 2004.
Installation costs totaled $1.9 million for the first quarter of
2005 compared to $1.4 million in the first quarter of 2004. Of
our total contracted services costs for the first quarter of
2005, $2.0 million related to the operations of IMPSAT
Argentina, compared to $1.6 million at IMPSAT Argentina for the
first quarter of 2004. Our maintenance and installation costs
increased because we had more infrastructure and more new
customers during the first quarter of 2005 compared to the first
quarter of 2004.

(2) Other Direct Costs. Other direct costs principally include
licenses and other fees; sales commissions paid to our salaried
sales personnel and third-party sales representatives; and our
provision for doubtful accounts. We recorded other direct costs
of $7.5 million, an increase of $3.7 million (or 98.5%) compared
to the first quarter of 2004.

Sales commissions paid to third-party sales representatives for
the first quarter of 2005 totaled $1.5 million, compared to $1.6
million in the first quarter of 2004.

We recorded a provision for doubtful accounts of $0.7 million
for the first quarter of 2005, compared to a net reversal of a
provision for doubtful accounts of $1.9 million for the same
period during the previous year. The net reversal during the
first quarter of 2004 related principally to our settlement of
certain disputes with Global Crossing and the payment by Global
Crossing in that quarter of $1.4 million, which was applied
against outstanding receivables that had been disputed by Global
Crossing and for which we had reserved 100% of contractual
revenues. At March 31, 2005, approximately 23.5% of our gross
trade accounts receivable were past due more than six months,
compared to 32.8% at the end of the first quarter of 2004. At
March 31, 2005, our allowance for doubtful accounts covered
approximately 116.4% of our gross trade accounts receivable past
due more than six months. The average days outstanding in gross
trade accounts receivable decreased from 68 days at March 31,
2004 to 55 days at March 31, 2005. IMPSAT Argentina's allowance
for doubtful accounts at the end of the first quarter of 2005
covered approximately 98.0% of its gross trade accounts
receivable past due more than six months.

(3) Leased Capacity. Our leased capacity costs for the first
quarter of 2005 totaled $18.2 million, an increase of $2.4
million (or 15.4%) compared to the first quarter of 2004.

Our leased capacity costs for satellite capacity for the first
quarter of 2005 totaled $5.8 million, a decrease of $0.1 million
(or 2.4%) compared to the first quarter of 2004. In Argentina,
our leased satellite capacity costs totaled $1.8 million for the
first quarter of 2005, compared to $1.8 million for the first
quarter of 2004. Our leased satellite capacity costs for IMPSAT
Brazil totaled $0.7 million for the first quarter of 2005,
compared to $0.7 million for the first quarter of 2004. We had
approximately 693 MHz of leased satellite capacity at the end of
the first quarter of 2005, compared to 718 MHz at March 31,
2004.

Our costs for dedicated leased capacity on third-party fiber
optic networks totaled $8.1 million for the first quarter of
2005, an increase of $1.2 million (or 17.9%) compared to the
first quarter of 2004. These costs were incurred principally in
Argentina, Brazil, Colombia and the United States. We will
continue to require leased capacity to provide
telecommunications services to clients with facilities outside
of the footprint of our Broadband Network in order to provide
end-to-end telecommunications services.

In connection with our domestic and international long distance
telephony services in Argentina, Peru and the United States, we
incur costs for interconnection and telephony termination
("I&T") and frequency rights. Our I&T and frequency rights costs
totaled $4.3 million during the first quarter of 2005 (which
included $3.5 million of I&T costs). This compares to $3.0
million of I&T and frequency rights costs for the first quarter
of 2004 (which included $2.3 million of I&T costs). Our I&T and
frequency rights costs in Argentina totaled $2.4 million during
the first quarter of 2005 (which included $2.3 million of I&T
costs). This compares to $1.3 million of I&T and frequency
rights costs for the first quarter of 2004 (which included $1.1
million of I&T costs).

(4) Costs of Equipment Sold. In the first quarter of 2005, we
incurred costs of equipment sold of $0.1 million, compared to
costs of equipment sold of $0.1 million for the first quarter of
2004.

Salaries and Wages.  Salaries and wages for the first quarter of
2005 totaled $13.0 million, an increase of $0.8 million (or
6.3%) compared to the first quarter of 2004. The increase was,
in part, related to the appreciation of the Colombian  peso  and
Brazilian  real  in comparison to the same period in the
previous year.

We reduced the aggregate number of our employees from 1,242 at
March 31, 2004 to 1,229 at March 31, 2005. IMPSAT Argentina had
298 employees at March 31, 2005, as compared to 297 employees at
March 31, 2004. IMPSAT Argentina incurred salaries and wages for
the first quarter of 2005 totaling $3.2 million, an increase of
$0.3 million (or 9.7%) over the first quarter of 2004. IMPSAT
Brazil incurred salaries and wages for the first quarter of 2005
of $2.3 million, an increase of $0.2 million (or 11.1%) compared
to the first quarter of 2004. IMPSAT Brazil increased its number
of employees to 194 persons at March 31, 2005, compared to 192
persons at March 31, 2004.

Selling, General and Administrative Expenses. We incurred SG&A
expenses of $5.3 million for the first quarter of 2005, a
decrease of $0.2 million (or 4.4%) compared to the first quarter
of 2004. Our SG&A expenses for the first quarter of 2005
declined due principally to decreases in our publicity and
promotion costs, utilities and advisory fees, and overall costs
control measures undertaken by management. SG&A expenses at
IMPSAT Argentina for the first quarter of 2005 totaled $1.6
million, a decrease of $0.2 million (or 8.9%) compared to the
first quarter of 2004.

Depreciation and Amortization. Our depreciation and amortization
expenses for the three months ended March 31, 2005 totaled $12.0
million, an increase of $1.9 million (or 18.4%) compared to
depreciation and amortization for the first quarter of 2004.
Depreciation and amortization increased during the first quarter
of 2005 as compared to the corresponding period in 2004
primarily due to our increased purchases of capital expenditures
during 2004. Depreciation and amortization expenses for IMPSAT
Argentina for the first quarter of 2005 totaled $2.5 million, an
increase of $0.4 million (or 16.7%) compared to IMPSAT
Argentina's depreciation and amortization expenses for the first
quarter of 2004.

Interest Expense, Net.  Our net interest expense for the first
quarter of 2005 totaled $5.2 million, an increase of $0.6
million (or 12.1 %) as compared to net interest expense of $4.6
million for first quarter of 2004. Our interest expense
increased principally because of "payment in kind" accretion to
our Senior Notes and certain indebtedness of our subsidiaries,
which, of our total interest expense for the first quarter of
2005, represented $3.4 million. Our total indebtedness as of
March 31, 2005 was $265.0 million, as compared to $264.1 million
as of March 31, 2004.

Net Loss on Foreign Exchange. We recorded a net loss on foreign
exchange for the first quarter of 2005 of $0.6 million, compared
to a net loss on foreign exchange of $4.4 million for the three
months ended March 31, 2004. IMPSAT Argentina recorded a net
loss on foreign exchange for the first quarter of 2005 of $0.2
million compared to a net loss on foreign exchange for the first
quarter of 2004 of $0.6 million. IMPSAT Brazil recorded a net
loss on foreign exchange for the first quarter of 2005 of $0.5
million, compared to net loss of $1.8 million for the first
quarter of 2004.

Net Loss. For the first quarter of 2005, we recorded a net loss
of $8.2 million, compared to net loss of $6.5 million for the
three months ended March 31, 2004. For the first quarter of
2005, we recorded an operating loss of $1.4 million, compared to
operating income of $3.2 million for the first three months of
2004.

Liquidity and Capital Resources

At March 31, 2005, we had total cash and cash equivalents of
$41.4 million, compared to $63.7 million at December 31, 2004.

At March 31, 2005, approximately $4.6 million of our total cash
and cash equivalents were held in Venezuelan bolivars by IMPSAT
Venezuela (based on the official exchange rate at that date of
Bs.2,150.00 = $1.00). Foreign exchange controls instituted in
Venezuela since February 2003 severely limit our ability to
repatriate these amounts and any other earnings from our
Venezuelan operations. Future devaluations of the Venezuelan
bolivar and/or the implementation of more stringent exchange
control restrictions in that country could have a material
adverse effect on the recorded U.S. dollar value or our cash and
cash equivalents held by IMPSAT Venezuela and would result in a
loss in future periods in our condensed consolidated statement
of operations.

At March 31, 2005, our total indebtedness was $265.0 million as
compared to $281.1 million at December 31, 2004, of which $1.2
million represented short-term debt, $45.4 million represented
current portion of long-term debt and $218.4 million represented
long-term debt. Our capital expenditures budget for 2005
contemplates that we will need approximately $32.5 million
(including amounts spent to date) for capital expenditures.

Although we have emerged from bankruptcy, we remain in default
under indebtedness owed to one creditor who voted against the
Plan. Under the Plan, the claims of that creditor were
contingent obligations arising under guarantees by us of certain
primary indebtedness of IMPSAT Argentina. This default, which
relates to indebtedness totaling approximately $7.6 million in
outstanding principal amount, gives the creditor the right to
accelerate such indebtedness and seek immediate repayment of all
outstanding amounts and accrued interest thereon. There is no
assurance that we will be successful in reaching a definitive
agreement with this creditor to reschedule or restructure such
obligations. Under those circumstances, IMPSAT Argentina could
be forced to seek protection or liquidate under the bankruptcy
laws of Argentina.

In the first quarter of 2005, IMPSAT Brazil failed to comply
with a financial ratio on its approximately $81.1 million of
Senior Secured Notes. Although we obtained a waiver of any non-
compliance with this ratio through March 31, 2006 from the
lender, we cannot guarantee that the lender will grant any
required waivers in the future.

In 2005, we are required to commence repayment of the principal
amount of the restructured senior debt owed by our subsidiaries
to certain of their vendor financiers who elected to participate
in the Plan, and pay in cash the interest on the Senior Notes,
that was payable in kind between the Effective Date and March
25, 2005. Our vendor indebtedness, which totalled $132.4 million
at March 31, 2005, is payable in nine equal installments,
commencing March 25, 2005, through March 25, 2009. We paid the
initial principal installment on this indebtedness, totalling
$16.5 million, on March 25, 2005.

A significant portion of the indebtedness coming due in 2005 and
thereafter is held by affiliates of certain members of our board
of directors. Accordingly, a special committee of the Company's
board of directors has been formed to explore recapitalization
alternatives. These alternatives may take the form of a
repurchase, refinancing or rescheduling of the payment terms of
the indebtedness of the Company and/or its operating
subsidiaries, a potential capital infusion, or other types of
transactions. There can be no assurance, however, that any such
transaction will be successfully negotiated or consummated. Our
inability to successfully refinance our indebtedness as it comes
due would have a material adverse effect on our company, and
would raise doubts as to our ability to continue as a going
concern for a reasonable time period.

In its audit report in the Company's consolidated financial
statements for the year ended December 31, 2004, Deloitte &
Touche LLP, the Company's independent registered public
accounting firm, included a paragraph that noted that the
Company's potential inability to meet certain of its debt
covenants, and the amount of its debt obligations coming due in
2005 and thereafter, raised substantial doubt as to our ability
to continue as a going concern. The Company's financial
statements included in this Quarterly Report on Form 10-Q have
been prepared under the assumption that the Company will
continue as a going concern and do not include any adjustments
that might result if we were forced to discontinue operations.
For additional information, see Note 2 to our condensed
financial statements.

As set forth in our condensed consolidated statement of cash
flows, our operating activities provided $5.5 million in net
cash flows for the first quarter of 2005, compared to $3.7
million provided by operating activities during the first
quarter of 2004. The increase in cash flow from operating
activities in the first quarter of 2005 was primarily due to our
net loss during the first quarter of 2005 and to a decrease in
accrued and other liabilities.

For the first quarter of 2005, our investing activities used
$8.3 million in net cash flows, compared to $3.7 million of net
cash flows used by investing activities during the corresponding
period in 2004. During the first quarter of 2005, we used $19.6
million in net cash flows from financing activities, compared to
$1.4 million in net cash flows used in financing activities
during the first quarter of 2004, $16.5 million of which were
due to the repayment of Senior Debt at its stated maturity as
discussed above.

At March 31, 2005, we had leased satellite capacity with average
annual rental commitments of approximately $12.3 million through
the year 2009 under non-cancelable agreements. We have entered
into contracts for the purchase of satellite capacity for
approximately $15.0 million through 2015. In addition, at March
31, 2005, we had commitments to purchase telecommunications
equipment amounting to approximately $6.5 million. Furthermore,
we have leased from third parties a series of terrestrial links
for the provision of data, Internet and telephony services to
our clients in the different countries in which we operate. We
have committed to long-term contracts for the purchase of
terrestrial links from third parties in Argentina, Colombia and
the United States for approximately $3.1 million per year
through 2009. The remainder of the leases are typically under
one-year contracts, the early cancellation of which is subject
to a fee.

Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk. Our cash and cash equivalents consist of
highly liquid investments with a maturity of less than 30 days.
As a result of the short-term nature of these instruments, we do
not believe that a hypothetical 10% change in interest rates
would have a material impact on our future earnings and cash
flows related to these instruments. A hypothetical 10% change in
interest rates would also have an immaterial impact on the fair
values of these instruments.

We are exposed to interest rate risk on our floating rate
indebtedness, which affects our cost of financing. At March 31,
2005, our total floating rate indebtedness aggregated $39.2
million, of which $13.5 million was denominated in U.S. dollars
and accrued interest at specified spreads over the London
Interbank Offered Rate (LIBOR) and $25.7 million was denominated
in local currencies of our operating subsidiaries and accrued
interest at variable rates tied to local interest rates and
inflation indices. Our actual interest rate is not quantifiable
or predictable because of the variability of future interest
rates and business requirements. We do not believe such risk is
material and we do not customarily use derivative instruments to
adjust interest rate risk. As of March 31, 2005, a hypothetical
100  basis point increase in LIBOR would affect our annual
interest cost related to our floating rate indebtedness bearing
interest based on LIBOR by approximately $0.1 million annually.
The fair value of financial instruments, which approximate their
carrying value, except in the case of Senior Notes, have been
determined using available market information and interest rates
as of March 31, 2005.

Foreign Currency Risk.  A substantial portion of our costs,
including lease payments for certain satellite transponder and
fiber optic capacity, purchases of capital equipment, and
payments of interest and principal on our indebtedness, is
payable in U.S. dollars. To date, we have not entered into
hedging or swap contracts to address currency risks because our
contracts with our customers, except in Brazil and Argentina,
generally have provided for payment in U.S. dollars or for
payment in local currency linked to the exchange rate between
the local currency and the U.S. dollar at the time of invoicing.
These contractual provisions are structured to reduce our risk
if currency exchange rates fluctuate. However, given that the
exchange rate is generally set at the date of invoicing and that
in some cases we experience substantial delays in collecting
receivables, we are exposed to some exchange rate risk.

During January 2002, Argentina abandoned the fixed dollar-to-
peso exchange rate and devalued the Argentine peso , and, on
February 3, 2002, pursuant to the " pesification " decree, the
Argentine government announced the mandatory conversion of all
foreign currency denominated contractual obligations governed by
Argentine law into Argentine pesos at a rate of one Argentine
peso to one U.S. dollar. The floating exchange rate at March 31,
2005 was pesos 2.92 = $1.00. Devaluations of the peso have and
will adversely affect IMPSAT Argentina's results of operations
and, in turn, our company's consolidated results of operations
and financial condition. During the remainder of 2005, our
consolidated results could be impacted from transaction gains or
losses on our dollar-denominated monetary assets and
liabilities. Potential balance sheet exposures include the
reduction to our consolidated stockholders' equity due to the
effects of lower net income on retained earnings.

Pursuant to Brazilian law, our contracts with customers in
Brazil cannot be denominated in dollars or linked to the
exchange rate between the Brazilian real and the U.S. dollar. In
Brazil, we are permitted to amend the pricing of our services
for our long-term telecommunication services contracts with our
customers annually based on changes in the consumer price index
in Brazil for the prior year. In Argentina, obligations that
were mandatorily converted to pesos under the " pesification "
decree are to be adjusted pursuant to an index rate based on
variations in the Argentine consumer price index. These aspects
of the laws in Brazil and Argentina do not eliminate completely
the currency exchange risk facing our operations in those
countries. Changes in the consumer price indices in Brazil and
Argentina may lag or be lower than changes in the exchange rate
between the Brazil and Argentine local currency and the U.S.
dollar and therefore may not fully allow us to address the
impact of a devaluation of those currencies against the U.S.
dollar. Also, contracts entered into after the " pesification "
decree's enactment that are initially denominated in pesos are
not entitled to be adjusted according to any other consumer or
other price index. Accordingly, our operations in Brazil and
Argentina have exposed us, and will increase our exposure, to
exchange rate risks. At March 31, 2005, the real traded at a
rate of R2.67 = $1.00.

As discussed above, in response to political and economic
turmoil currently affecting Venezuela, the Venezuelan government
imposed foreign exchange and price controls during 2003, making
it difficult for our customers in Venezuela to obtain the U.S.
dollars needed to make payments due to us in U.S. dollars on a
timely basis. These foreign exchange controls could also limit
our ability to convert local currency into U.S. dollars and
transfer funds out of Venezuela. On February 6, 2003, the
Venezuelan government set a single fixed exchange rate for the
bolivar against the U.S. dollar of approximately Bs.1,600 =
$1.00 as part of the new currency controls. The Venezuelan
government further devalued its currency to Bs. 1,920 = $1.00 in
February 2004, and Bs. 2,150 = $1.00 on March 5, 2005. Hence, at
March 31, 2004, the bolivar traded at a rate of Bs.1,920 =
$1.00, and on March 31, 2005, it traded at a rate of Bs. 2,150 =
$1.00. In the majority of cases, we have agreed to receive
bolivars at the official rate in payment for our services in
lieu of U.S. dollars. As a result, our holdings of bolivars at
March 31, 2005 totaled Bs. 9.9 billion (or $4.6 million at the
official exchange rate at such date). The decline in the U.S.
dollar value of our cash and cash equivalents denominated in
bolivars as a result of the devaluation of the  bolivar  will
result in a loss in our consolidated financial statements.

Net revenues from services from our Argentine operations for the
first quarters of 2005 and 2004 represented 30.2% and 26.7% of
our total net revenues from services, respectively. Net revenues
from services from our Brazilian operations for the first
quarters of 2005 and 2004 represented approximately 16.8% and
13.4% of our total net revenues from services respectively. Our
net revenues from services in Venezuela accounted for 13.6% and
14.7% of our total revenues from services for the first quarters
of 2005 and 2004, respectively.

CONTACT:  IMPSAT FIBER NETWORKS, INC.
          Hector Alonso, Chief Financial Officer
                    or
          Santiago F. Rossi, Investor Relations
          Tel: 54.11.5170.6000
          URL: http://www.impsat.com


POLICLINICA: Begins Liquidation
-------------------------------
Policlinica Privada Simel S.R.L. of Buenos Aires will begin
liquidating its assets after Court No. 21 of the city's civil
and commercial tribunal declared the Company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee, Alfredo Alberto A.
Figliomeni.

The trustee will review the claims forwarded by the company's
creditors until June 30, 2005. After the verifying these claims,
Figliomeni will submit the individual reports for court approval
on Aug. 26, 2005. The general report will follow on Oct. 7,
2005. Clerk No. 42 assists the court on this case.

CONTACT: Policlinica Privada Simel S.R.L.
         Felipe Vallese 3631
         Buenos Aires

         Alfredo Alberto A. Figliomeni, Trustee
         Agrelo 4240
         Buenos Aires


ROBLES CATEDRAL: Court Designates Trustee for Liquidation
---------------------------------------------------------
Buenos Aires accountant Pablo Alberto Amante was named trustee
for the liquidation of local company Robles Catedral S.A.,
relates Infobae.

Trustee Amante will verify creditors' proofs of claim until Aug.
2, 2005, the source adds. After that, he will prepare the
individual reports, which are to be submitted in court on Sep.
14, 2005. The submission of the general report should follow on
Oct. 27, 2005.

The city's civil and commercial Court No. 26 of Buenos Aires'
civil and commercial tribunal holds jurisdiction over the Robles
Catedral's case. Clerk No. 52 assists the court in the wind-up
proceedings.

CONTACT: Robles Catedral S.A.
         Reconquista 585
         Buenos Aires

         Pablo Alberto Amante, Trustee
         Lavalle 1537
         Buenos Aires


TELECOM ARGENTINA: Opens Bidding for Wireless Equipment
-------------------------------------------------------
Fixed line carrier Telecom Argentina (NYSE: TEO) has opened a
tender process to purchase handsets and radio stations to
provide wireless access services for telephony and data. The
bidding, according to Business News Americas, will continue
until May 27.

The operation is part of Telecom Argentina's project, which aims
to provide fixed, wireless and Internet services in isolated
regions, where it is harder to deploy traditional physical
networks. Telecom's system is based on CDMA technology.

But in order to implement the system, Telecom needs the
government to open bidding for a 450 MHz band and win this part
of the spectrum. This band is used in urban areas for point-to-
point connections and other private systems.

The latest project requires estimated investment of US$6 million
-7 million.

CONTACT:  Telecom Argentina S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Web Site: http://www.telecom.com.ar


* ARGENTINA: US Court Lifts Freeze on Defaulted Bonds
-----------------------------------------------------
U.S. Southern District Court Judge Thomas Griesa lifted Monday a
freeze on US$7 billion in defaulted Argentine bonds, allowing
Argentina to settle its US$103 billion debt restructuring,
according to a lawyer representing the government.

Judge Griesa "issued an order vacating the stay," Jonathan
Blackman, a lawyer for Argentina at Cleary Gottlieb Steen &
Hamilton, was quoted as saying.

The frozen bonds were part of a much larger amount of defaulted
Argentine debt, which had been turned in by creditors who agreed
to accept new bonds and take a loss of about 70 cents on the
dollar as part of Argentina's SU$102 billion debt restructuring
plan.

NML Capital and EM Ltd, two major holdout creditors suing
Argentina, originally won a freeze on the bonds from Griesa's
court in mid-March. Griesa had lifted the freeze on March 29,
but then immediately restored it pending a review of the
decision by the 2nd U.S. Circuit Court of Appeals.

The appeals court ruled against the freeze on May 13, but the
decision to lift it had to be newly confirmed by Griesa.

Argentina was waiting for Griesa's formal order before
delivering the new securities under the debt restructuring and
making the first interest payment on those bonds. Officials had
originally scheduled a settlement date of April 1 for the debt
swap.



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

FOSTER WHEELER: To Supply Biomass-Fired Boiler to Portugal
----------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWHLF) announced Monday that its
Spanish subsidiary in the Foster Wheeler Global Power Group has
been awarded a contract valued at approximately $14.5 million
(EUR 11.08 million) to supply a biomass-fired bubbling fluidized
bed (BFB) boiler to Portucel Viana Energia. The project was
included in the company's first-quarter 2005 bookings.

The boiler will be fired on bark and mill rejects and will be
located at Viana do Castelo, Portugal.

"Foster Wheeler is delighted to be awarded this contract by
Portucel," said Bernard H. Cherry, president and chief executive
officer, Foster Wheeler Global Power Group. "This is the second
order we have received from Portucel, the first being a heat
recovery steam generator awarded in August 2003 for their
Cogeneration I project. This latest order confirms our client's
satisfaction with our work and performance."

Foster Wheeler will supply the 42.5 ton/h boiler, together with
ancillary equipment, and will also manage erection and start-up.
Work on the project has already been started, and completion is
scheduled for August 2006.

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


GLOBAL CROSSING: Ex-Workers Receive Money From $84M Settlement
--------------------------------------------------------------
Former Global Crossing workers who lost their retirement savings
when the Company went bankrupt received about 25 percent of
their pension funds back last week as part of an $84 million
settlement, The Associated Press reports.

According to Matt Fusco of the law firm Chamberlain D'Amanda,
and attorney for Global Crossing Employees, while it's certainly
unsatisfying to lose 75 percent, the 25 percent payout is one of
the highest he'd ever heard of in a class action suit, that most
such plaintiffs get pennies on the dollar in settlement. He told
AP that the settlement includes some two thousand people in the
Rochester area and another two thousand across the country. Mr.
Fusco also added that employees who filed severance claims
should be getting paid within the next few weeks, while
shareholders will have to wait a little longer. (Class Action
Reporter, Tuesday, May 24, 2005, Vol. 7, Issue No. 101)

CONTACT:  Global Cossing
          Press Contacts
          Becky Yeamans
          Phone: 1 973-937-0155
          Email ad: PR@globalcrossing.com

          Kendra Langlie
          Phone: 1 305-808-5912
          Email ad: LatAmPR@globalcrossing.com

          Mish Desmidt
          Europe
          Phone: 44 (0) 7771-668438
          Email ad: EuropePR@globalcrossing.com

          Analysts/Investors Contact
          Laurinda Pang
          Phone: 1 800-836-0342
          Email ad: glbc@globalcrossing.com



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

BRASKEM: S&P Affirms, Assigns Ratings
-------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' local-
currency and 'BB-' foreign-currency corporate credit ratings on
Brazil 's largest petrochemical company, Braskem S.A. At the
same time, it assigned its 'BB-' senior unsecured debt rating to
the forthcoming $150 million notes due 2015, to be issued by
Braskem International Ltd. and unconditionally guaranteed by
Braskem. The outlook on the corporate credit ratings on Braskem
is stable.

Braskem International Ltd. is a wholly owned subsidiary of
Braskem. The ratings on Braskem reflect the risks associated
with price volatility of its main feedstock, naphtha (sustained
at historic highs for a very long time already); exposure to its
home market of Brazil for EBITDA and sales generation
(considering that exports cannot fully compensate for the
profitability lost during cyclical downturns); and growing
competition with the consolidation and expansion of other
players, some of them using alternative feedstock. These
negatives are mitigated by Braskem's leading business and market
position in the Latin American petrochemical industry (which we
see as peculiarly less fragmented and therefore more favorable
than other mature markets worldwide); economies of scale and
some level of geographic diversification; increasing
technological expertise; and all efficiency improvement
initiatives being implemented by the company, both in its
financial and industrial profiles, which should result in
structural cost reductions in the medium term and therefore more
resilience in cash flow, especially when compared with the
performance in past years.

Braskem is the largest petrochemical company in Latin America.
While we do not expect market conditions to weaken dramatically
in the short term (despite some cooling-off already noticeable
due to high domestic interest rates), the current fair-to-
positive market environment both domestically and
internationally remains an important short-term success factor
for Braskem, assuming that naphtha costs will remain at
substantially higher levels than historical ones. "Some
turbulence is not ruled out for 2006 given presidential
elections; however, growth prospects should remain fairly
positive in the medium term, allowing for cost increases to be
passed on throughout the petrochemical chain in synch with
global trends," said Standard & Poor's credit analyst Reginaldo
Takara.

We recognize that Braskem has traditionally managed to report
much stronger operating margins than have its global peers, even
during the most challenging troughs witnessed in the recent
past. That reflects not only the company's very favorable market
position but also the peculiarities of the more concentrated
petrochemical industry in Brazil. Nevertheless, price
adjustments can be more difficult to implement under less
sanguine domestic market conditions. We also understand that
operating improvements and synergies, marginal capacity
expansions (through debottlenecking) diluting fixed costs, and a
richer product mix (with higher value-added products somewhat
reducing volatility and new applications helping sustain
volumes) will allow Braskem to report improved results on a
perennial basis even during the cycle troughs, which we expect
to be more evident under less favorable petrochemical spreads.

From a short-term perspective, current petrochemical prices have
already allowed Braskem to absorb the 2004 and first-quarter
2005 hike of raw material costs (with currency appreciation also
playing an important role to smooth the impact of cost spikes
this year) and still report robust results, which gives the
company some space to sustain operating profitability under a
potential slowdown scenario. This scenario, on the other hand,
could not be totally delinked from a decline in raw material
cost, also alleviating overall financial pressures. In any
event, foreign exchange fluctuations, spreads between naphtha
and ethylene and ethylene and polyolefins in international
markets, and domestic demand patterns will remain intrinsic
variables with great influence on the company's performance in
the longer term.

The stable local-currency rating outlook derives from the
pivotal expectation that Braskem's current capital structure
will be sustained (both because management has assumed a more
moderate stance and because market conditions will allow its
financial strategy to continue being implemented) and that the
company's operating and business profiles will continue
improving gradually with debottleneckings, product mix
enrichment, and feedstock diversification. We believe that
fundamentals for Braskem's operating profitability and cash
generation are fair to positive in the medium term and stable in
the long term, allowing the company to report credit measures
that are quite comfortable for the rating category in 2005 and
that should remain adequate throughout the petrochemical cycle.
Further rating improvement can derive from the company's ability
to effectively withstand the petrochemical cycle thanks to its
several improvement initiatives and scale (which would prove so
under less favorable market conditions), combined with further
total debt reductions relative to a normalized, through-the-
cycle cash flow. A negative rating action could be prompted by
the company's inability to sustain margins or a radical reversal
in the trend of cash generation, or a quick deterioration of its
liquidity position. We also factor into the ratings the fact
that Braskem's commitment to a more conservative financial
policy since mid-2004, both in regards to its liquidity position
and leverage boundaries, will be preserved in the future,
providing the company with a safety cushion to weather the
inevitable downturns in the cyclical petrochemical industry and
of the volatile economy of its home market, Brazil.

The stable outlook on the foreign-currency rating reflects the
outlook on the foreign-currency sovereign rating on the
Federative Republic of Brazil.


BRASKEM: Fitch Rates $150M Issuance 'BB-'
-----------------------------------------
Fitch Ratings has assigned a rating of 'BB-' to the proposed
offering of US$150 million senior unsecured notes to be issued
by Braskem International Ltd. (Braskem International) and
unconditionally guaranteed by Braskem S.A. (Braskem). The 10-
year notes due 2015 are being offered under Rule 144A and
Regulation S. The proceeds of the offering are expected to be
used to refinance debt and extend debt maturities.

Fitch has also assigned an international foreign currency and
local currency rating to Braskem of 'BB-' and 'BB+',
respectively, and affirmed the company's 'AA-(bra)' national
scale rating. Concurrently, the 'BB-' rating has been assigned
to Braskem's outstanding US$275 million 12.5% notes due 2008 and
US$250 million 11.75% notes due 2014. The Rating Outlook for all
ratings is Stable. Braskem's foreign currency ratings are
constrained by the 'BB-' country ceiling of the Federative
Republic of Brazil.

Braskem's ratings are supported by the company's strong and
improving credit profile, reflecting sustained growth of its
operational cash flow, strong liquidity, reduced refinancing
risks, and an extended debt profile. Braskem also benefits from
its leading position in Latin America and Brazil in the
petrochemical industry and as a material exporter of
petrochemicals.

Over the past several years, Braskem has focused on
consolidating its first and second generation petrochemical
operations. The company has realized substantial synergies and
cost reductions, which coupled with a stronger petrochemical
pricing environment, has allowed the company to build a strong
liquidity position, reduce debt, and lower refinancing risk.
Braskem is well positioned in the rating category to maintain
its credit quality throughout the petrochemical cycle.

Braskem's credit protection measures have shown solid
improvement over the past couple of years with LTM EBITDA-to-
interest increasing to 4.8 times (x) through March 2005 from
4.0x for full-year 2004 and 3.5x for 2003. Braskem also reported
an improvement in leverage with net debt-to-EBITDA decreasing to
1.3x for LTM as of March 31, 2005 from 3.4x for LTM as of March
31, 2004. The recent credit strengthening reflects a combination
of greater operating cash flow, a BRL1.2 billion capital
increase from an equity offering in early 2004 and a BRL2.1
billion reduction in total debt since December 2003.

Fitch expects that Braskem will continue to improve its debt
profile and cost of funding during 2005, further supporting
credit protection measures. The company's substantial liquidity
position and the ability to issue debt suggest that Braskem
should be able to prepay or refinance some of its higher priced
financial indebtedness. Fitch expects that Braskem management
will maintain a debt profile, in terms of maturities and cost of
debt, that will allow the company to satisfactorily operate
through the peaks and troughs of the petrochemical industry
cycle. Fitch expects the company will maintain a liquidity
position sufficiently strong to limit its exposure to
refinancing risk.

The current cyclical upturn for petrochemical products is
expected to drive Braskem's profitability in 2005 and 2006 to
levels above those reported in recent years, boosting cash
generation and strengthening its liquidity and debt positions.
The petrochemical industry is realizing higher operating rates
and tightening of supply/demand fundamentals, which should
enable producers to gain greater pricing power. Margin expansion
has occurred in 2004 and, in general, is expected to continue as
market fundamentals strengthen. The constant growth in margin
indicates that the petrochemical industry has been increasing
profitability from the increasing cost differential between
naphtha and ethylene and the next chain of the principal
petrochemical products. In 2007-2008, global capacity expansion
projects are expected to come on line and remove some of the
upward pressure on petrochemical prices.

Despite the generally improving fundamentals, Fitch remains
moderately concerned about the sustainability of the recovery
with increasing energy costs and the overall effect of high
petrochemical prices on demand. In general terms, oil price
increases translate into similar adjustments in the price of
naphtha, raising concerns about the industry's ability to
continue to pass on increases related to the high prices of
petrochemical products. Since the companies have no control over
naphtha prices, constant increases in the price of oil per
barrel could pressure both the profitability and sales volume of
petrochemical companies, potentially shortening the current
upcycle.

Braskem is the largest petrochemical company in Latin America,
producing 5.7 million tons of primary, secondary, and
intermediary petrochemical products with integrated first and
second generation petrochemical production. The company has
grown over the past four years through the integration of six
Brazilian petrochemical companies: Copene Petroquimica do
Nordeste S.A.; OPP Quimica S.A.; Polialden Petroquintica S.A.;
Trikem S.A.; Proppet S.A.; and Nitrocarbono S.A. The company is
now organized into four business units: basic petrochemicals;
polyolefins; vinyls; and business development. It is controlled
by the Odebrecht Group and Norquisa, which have, respectively,
47.5% and 25.4% of the voting capital.


CSN: S&P Assigns 'BBB-' to CSN Islands VI Corp 2005-1
-----------------------------------------------------
Standard & Poor's Ratings Services assigned Monday its
preliminary 'BBB-' rating to Companhia Siderurgica Nacional's
(CSN) CSN Islands VI Corp. US$150 million fixed-rate notes
series 2005-1 due May 3, 2015.

The preliminary rating is based on information as May 23, 2005.
Subsequent information may result in the assignment of a final
rating that differs from the preliminary rating.

The preliminary rating reflects Standard & Poor's corporate
performance assessment of CSN over the term of the transaction.
The corporate performance assessment reflects CSN's ability to
generate the necessary assets to service the transaction even
under a state of selective default or other financial
impairment.

The preliminary rating is also based on several structural and
credit characteristics of the issuance that mitigate originator
bankruptcy risk, sovereign interference risk, and other risks
pertinent to a cross-border steel-export future flow
securitization. This mitigation allows the transaction to
achieve a rating two notches higher than CSN's local currency
rating (BB/Stable) and three notches higher than CSN's foreign
currency rating (BB-/Stable). The preliminary rating is also
three notches higher than the long-term foreign currency
sovereign rating of Brazil (BB-/Stable).

The preliminary rating addresses the ability of the issuer to
pay timely interest and principal on the notes. The preliminary
rating does not address the payment of a make-whole payment or
additional amounts to noteholders. Additionally, the preliminary
rating is subject to receipt of program and series documentation
and related legal opinions satisfactory to Standard & Poor's.


TCP: Bovespa Shares Auction Falls Flat
--------------------------------------
Telesp Celular Participacoes S.A. ("TCP"), (BOVESPA: TSPP3
(Common), TSPP4 (Preferred), NYSE: TCP), announced Monday the
total number of common and preferred shares sold at the auction
held on 05/20/2005 at the Sao Paulo Stock Exchange, and the
respective per shares prices to be credited to the shareholders
pro rata to the fractional shares held by them before the
auction;

  Code    Type      Number of       Number of    Net Value per
            Shares Offered   Shares Sold      Share (1)

TSPP3     ON       1,144,979          0              0
TSPP4     PN       1,068,035          0              0

Considering that none of the shares was sold in the auction held
on 05/20/05, the totality of the shares above, shall be offered
at another auction, to be held on 05/25/2005, for the reference
price resulting from the weighted average of the floor session
held on 05/20/2005 of R$ 10.14 per common share (ON) and R$
11.97 per preferred share (PN), the result thereof should be
consequently disclosed by the Company.

CONTACT: Telesp Celular Participacoes S.A.
         Charles Edwards Allen
         Investor Relations Office
         Tel: 55 11 5105-1172
         Email: ir@vivo.com.br
         URL: http://www.vivo.com.br


UNIBANCO: S&P Releases Ratings Analysis
---------------------------------------
CREDIT RATING
  Local currency:         BB/Stable/B
  Foreign currency:       BB-/Stable/B

Outstanding Rating(s)
  Counterparty Credit
  Local currency:        BB/Stable/B
  Foreign currency:      BB-/Stable/B

Certificate of deposit
  Foreign currency:      BB-
Senior unsecured
  Foreign currency:      BB-/B

Unibanco Asset Management - Banco de Investimento S.A.

Major Rating Factors

Strengths:

- Long track record in retail and good opportunities provided by
its large retail franchise
- Expected improvement in efficiency resulting from the bank's
organizational restructuring
- Improving trend in credit quality
- Well-positioned consumer finance franchise

Weaknesses:

- Challenge to boost retail profitability
- Although improving, the bank presents weaker operational
efficiency and credit quality as compared to those of peers
- Implicit risk of operating in Brazil

Rationale

On May 5, 2005, Standard & Poor's Ratings Services affirmed its
'BB-/B' foreign currency and 'BB/B' local currency counterparty
credit ratings on Unibanco-Uniao de Bancos Brasileiros S.A.
(Unibanco). The outlook is stable.

The local currency counterparty credit rating on Unibanco
incorporates the relatively weaker operational efficiency and
credit quality of the bank as compared to its major retail
peers; the fairly low profitability of its large branch network;
and the implicit risks of operating in the Brazilian market and
its high economic risk (in the banking industry). Partially
counterbalancing these aspects, the rating also reflects the
well-positioned consumer finance franchise resulted from several
acquisitions and agreements, which puts the bank in a good
position to benefit from the expected growth in this segment;
the bank's organizational restructuring that should improve
future efficiency; and the lower delinquency ratio of its newly
originated loans, mainly in the retail segment.

Unibanco has maintained reasonable profitability as compared to
that of its major peers (return on average assets of 1.9%), with
its income derived mainly from revenues originated by credit and
service operations. The bank's slightly higher funding costs and
its costly structure compared to the returns originated so far
on its retail division pressured profitability. The efficiency
ratio (measured by noninterest expenses to total revenues) at
71% in December 2004 is still high as compared to that of its
peers (mainly Itau and Bradesco). Nevertheless, the
organizational restructuring in 2004 generated a leaner
structure with focus on the bottom line and cost-control
discipline. Positive changes were implemented including the
consolidation of back office and supporting units, the
definition of leaner processes, repositioning of the bank's
brand, and higher synergies among its business areas. We expect
these changes to be reflected in the bank's financial profile,
namely through better cross selling, revenues mix, and
efficiency.

Unibanco is well positioned to benefit from the retail growth
prospect in the country. The bank has established a strong
consumer finance franchise resulted from several acquisitions
and agreements. Unibanco expanded its share in the Brazilian
retail market, both through operational agreements with large
distribution chains (such as Sonae, Magazine Luiza, and Ponto
Frio) and its own companies (Unicard, Dibens, Fininvest, and
Hipercard), which increased the weight of the retail portfolio
over total loans to 36% in December 2004 from 33% in December
2003. This segment should drive most of the lending growth in
the future and produce positive returns to the bank.

Historically Unibanco has presented weaker asset quality
indicators than major retail competitors. Even though the
institution has registered a nonperforming loans (NPL) ratio
(credits rated from E to H according to local rules) of 4.9%-
which compares favorably with the 6% presented in December 2003-
its write-offs (net of recovery)-to-average credit portfolio
ratio of 3.5% is still high when compared with that of its peers
(2.3% at Ita£ and Banco Bradesco). We are confident that the
bank's prudent underwriting policies should generate
improvements on asset quality. This is evidenced by the quality
of the newly originated loans (mainly in the retail segment)
that shows positive signs in terms of past-due loans and
provisions.

Outlook

The stable outlook on Unibanco's local currency credit rating
reflects our expectation that, while operating more actively in
the retail market, the bank should preserve its profitability at
levels close to those presented in 2004 and improve its asset
quality indicators to benefit from its adequate underwriting.
The stable outlook also factors the improvement in efficiency
ratios given the bank's cost control disciplines and closure of
nonprofitable businesses.

The stable outlook on the foreign currency counterparty credit
rating reflects that of the sovereign foreign currency rating on
Brazil. At its current level, Unibanco's foreign currency credit
rating should move in tandem with the foreign currency credit
rating of the sovereign. The local currency credit rating of the
bank would automatically follow negative changes in the
sovereign credit rating. The local currency rating would have to
be assessed on its own merits if the sovereign local currency
rating were to improve (positive outlook or upgrade).

Profile

With Brazilian reais (BrR) 79.3 billion in total assets as of
December 2004, Unibanco is the third-largest private bank in
Brazil, preceded by Banco Bradesco S.A. and Banco Ita£ S.A. It
operates as a full-service institution, providing a wide range
of retail and wholesale financial products and services.
Although its market share is much smaller than that of direct
competitors (5% of total industry assets), the bank has
established strategic alliances with retailers besides its
efforts on organic growth that enabled the creation of a
competitive structure for the promised growth in consumer
lending in the country.

The bank has established a good distribution structure to
service its 18.2 million clients, including clients from retail
commercial banking and consumer finance companies (reached
through its subsidiary Fininvest and Hipercard and its alliances
with Ponto Frio and Magazine Luiza retail chains). The bank
reached a structure of 13,358 points of sale (895 branches and
in-store branches, 380 corporate-site branches, 253 Fininvest
stores, 11,241 Fininvest points of sale, 339 Pontocred stores
and 250 Luizacred stores), with major concentrations in the
South and Southeast of Brazil. Some services are provided
directly by the bank, and others through subsidiaries or
affiliates. The client base is segmented, and products for each
segment are designed according to their different needs.

The retail-banking unit accounts for approximately 54% of the
bank's consolidated credit portfolio, 36% being related to
individuals and 18% related to small and midsize companies.
While the upper-income segment is assisted through branches, the
low-income segment of the population is serviced mainly through
the following consumer finance operations: Fininvest, PontoCred
(alliance with Ponto Frio retail chain), LuizaCred (alliance
with Magazine Luiza retail chain), and the recent agreement with
Grupo Martins (retail chain). In addition, the bank is one of
the largest players in the credit card business in Brazil
through Unicard (former Cartao Unibanco); Fininvest, which
offers private-label cards and credit cards; and the recently
acquired HiperCard Administradora de Cartoes de Cr‚dito SA-a
credit card company based in Brazil's Northeast region. The bank
has been able to grow its business generation and create a
competitive platform in the retail segment. Nevertheless, it is
challenged to improve efficiency and profitability of its retail
franchise, specifically on the retail chains business.

Unibanco has established a decent position in the wholesale
segment and capital markets given its long track record and
know-how in these segments. In 2004, Unibanco ranked third among
private banks in disbursement of on-lending from the government
development bank (BNDES); fourth (with 7.7% market share) in
number of fixed income deals; and second in number of equity
deals originated. The wholesale unit, whose loan portfolio
amounted to 46% of total portfolio, services approximately 2,000
corporate clients.

In the insurance area, the bank benefits from a successful joint
venture with AIG. With two main companies (Unibanco AIG Seguros
S.A. and Unibanco AIG Previdˆncia S.A.), the insurance and
pension funds segments contributed 9% to the consolidated bank's
bottom line for fiscal 2004. Unibanco AIG Previdˆncia is one of
the largest pension companies in Brazil and, together with the
insurance business, ranks as the fourth largest within the
Brazilian market. The bank is also positioned as one of the
largest asset managers with 4.8% market share in terms of assets
under management (BrR33.0 billion).

Ownership and Legal Status

With a 59% equity interest in Unibanco (97% voting power),
Unibanco Holdings controls the bank. Unibanco Holdings is a
corporation established in 1994 to hold the stock ownership of
the bank, and is owned and controlled by the Moreira Salles
Group. Except for Pedro Moreira Salles, who is the bank CEO,
none of the family members are engaged in the bank's day-to-day
operations. In addition to its holdings in the bank, the Moreira
Salles Group has some industrial interests in other nonfinancial
investments. These investments include the world's largest
niobium mining operation, agribusiness, and real estate.

By the end of 2003, Mizuho Corporate Bank Ltd., Commerzbank
Aktiengesellschaft, and BNL sold their participations in
Unibanco and Unibanco Holdings, increasing free floating.
Regardless of this change, Unibanco's controlling shareholder
(the Moreira Salles family) maintains its position with 79% of
voting interest in Unibanco Holdings, which, in turn, has 97% of
Unibanco's common shares.

The bank's management has good experience in the financial
services sector. The issue related to succession planning is
being addresses by the appointment of high-quality senior
management and the participation of independent and well-
regarded professionals in the Board of Director.

Strategy

Unibanco's major strategy is to maintain its position as one of
the leading banks in Brazil while improving profitability though
better cross selling and integration among segments. This,
combined with organic growth and a cost control discipline,
should boost profitability.

An organizational restructuring was done in 2004 and intended to
enhance synergy and cooperation between businesses. Several
changes were made, including a leaner structure and processes,
consolidation of back-office units, higher cross-selling, and
new compensation to provide a more competitive and adequate
structure to pursue growth. As a consequence of this movement,
top management positions were redefined. In the retail area, the
former CEO (Joaquim Castro Neto) was replaced by Marcio
Schettini, who was responsible for the expansion in consumer
finance (a strategic area of the bank). In the wholesale area,
Joao Dionisio Amoedo was replaced by Demosthenes Madureira de
Pinho Neto (responsible for wealth management). Both Joaquim
Castro Neto and Joao Dionisio joined the Board of Directors. We
expect that these changes will result in better efficiency given
the focus on cost reduction and higher revenues in retail
through a more simplified structure.

In the retail unit, the bank's intention is to increase cross
selling and the profitability of its clientele. The objective is
to create competitive products to attract new clients while
increasing cross selling. Unibanco is enhancing the relationship
with customers by making their needs clear to the bank's
employees and linking cross-selling goals to variable
compensation. Unibanco expects to grow its overall credit
portfolio around 17%-22% during 2005, with a major focus on
retail. The wholesale area was redesigned with a focus on client
relationships.

Accounting

The accounting policies adopted by Unibanco and its subsidiary
companies are in accordance with the requirements of Brazilian
corporate law and the regulations of the National Monetary
Council, the Brazilian Central Bank, the Brazilian Securities
Commission, and the Superintendency of Private Insurance.
Unibanco has been audited by PricewaterhouseCoopers Auditores
Independentes since 2004 (previously Deloitte Touche Tohmatsu),
and has received a clean opinion.

Our analysis is based on Unibanco's consolidated balance sheet,
which follows the consolidation principle established by the
law, and includes all direct and indirect subsidiaries with the
exclusion of related party transactions. NPL recognition, write-
off policies, and provisions constitution follow Central Bank
requirements. There are no relevant accounting issues.

Asset Quality

Unibanco's asset quality continues to be adequate for its rating
category and for local standards. The bank has made constant
efforts to maintain asset quality indicators under control
despite its strategy to grow consumer finance lending. As all
banks in the system, the strategy has been to increase consumer
finance and loans to small and midsize companies. In a one-year
period, the retail portfolio grew 29%, mainly in credit card
operations, consumer finance, and small and midsize companies.

Wholesale facilities represented 46% of total credits as of
December 2004 (down from more than 50% in December 2003). Small
and midsize companies increased their participation to
approximately 18% at year-end 2004 from 14.4% in March 2004.
Larger retail operations contribute somewhat to balance the loan
portfolio composition, but also increase its risk profile.
Individual loans, including Fininvest, PontoCred, LuizaCred, and
Unicard, represented 36%. The direction toward retail business
has increased diversification: the 10 largest clients
represented 9.3% of the bank's total consolidated portfolio-a
little less than the average of 10% presented in 2003 and 2002.

The NPLs (measured by credits classified between 'E' and 'H'
according to the Brazilian Central Bank and to Standard & Poor's
methodology)-to-total loans ratio improved to 4.9% in December
2004, and the net charge-offs-to-average customer loans ratio
reduced to 3.5% in December 2004 from 4.2% in December 2003. As
a result of better asset quality indicators, provisions coverage
reached 108% (from 92% in 2003). Nevertheless, the bank still
has weaker credit quality indicators than those of peers. We are
confident that the bank's prudent underwriting policies will
generate improvements in asset quality. This is evidenced by the
quality of the newly originated loans (mainly in the retail
segment), which show positive signs in terms of past-due ratios
and provisions.

Profitability

The bank is challenged to improve its revenue quality under a
more stable and competitive scenario with higher retail gains
and reduction in operating expenses.

During 2004, Unibanco showed improving returns-ROA of 1.9%
compared to 1.5% in 2003, reinforced by the increase in credit
operations by 14.7% (mainly to individuals and small and midsize
companies) and higher revenues from fees and services. Fees and
services income-derived mainly from insurance, credit cards, and
checking account fees at the retail arm-had an important role in
revenues generation (reaching 31% of total revenues in the
year), and reflected the bank's strategy of increasing cross
selling and acquiring more retail clients.

Even with its strict control of personnel and administrative
expenses, the bank's efficiency level (measured by noninterest
expenses to total revenues) remains higher than those of some
retail and Latin America peers at 71%. Administrative expenses
are expected to fall below 5% in 2005 as a consequence of cost-
control measures such as consolidation of operational areas,
restructuring of the collection department, and closure of
nonprofitable businesses.

The bank has been preparing itself for a low interest rate
environment with the change in its asset distribution and the
search for a better funding profile. Major efforts to withstand
the impact include reduction in funding costs (with
commercialization efforts to increase lower-cost deposits),
higher-than-market growth in individual credits resulted from
organic growth-which may allow a growth of around 22%-27% in the
total credit portfolio-and its operational agreements with
important retail stores.

Asset-Liability Management

Risk management control is online, allowing for the bank to make
decisions in adequate timeframes. Constant investments in market
risk tools and good monitoring methodologies (value at risk,
stress test, and back testing) and specific rules for deviations
bring accuracy and strict controls to the operation. Market risk
is analyzed daily and monitored by an area independent from the
bank's treasury desk-avoiding potential conflicts of interest.

The bank's liquidity remains good. Excluding repurchase
agreement operations, liquidity (cash, money market, and
securities) accounted for 34% of total assets at December 2004.
In addition, the bank's exposure to Brazilian government risk
represented 32% of its securities portfolio. Unibanco has
registered 50% of its securities portfolio as trading, 20% as
available for sale, and 20% as held-to-maturity.

The bank has been able to increase its deposit base, which fully
funds its loan portfolio. One of the bank's main targets is to
increase its retail deposits to lower funding costs (still
higher than those of peers). In this sense, Unibanco created
time deposits to individuals with larger spreads than those of
regular time deposits. Since the product was launched, it
reached BrR1.6 billion in volume (approximately $600 million),
generating a positive impact on funding cost. Unibanco has been
successful in repricing its assets and liabilities to increase
overall margin.

The bank is liability sensitive and it is positioned to benefit
from interest rate reduction. Unibanco tries to match the
currency and tenor of its portfolio and makes use of derivatives
to hedge its open positions. Most of the operations are short
term, and the bank has flexibility to change its position in
case of strong market movements.

Capital

Capitalization is adequate, and allows for loan expansion. The
bank's capital-to-risk-weighted assets ratio reached 16.3% in
December 2004 (above the 11% requirement for Brazilian banks).
In April 2004, an Extraordinary Shareholders Meeting approved
the capital increase to BrR5 billion through transfer from
retained earnings. Dividend policy includes minimum payment rate
of 35%.

Goodwill, tax credit, and subordinated debt are negatively
affecting the bank's equity quality. Nevertheless, the proceeds
originated from Credicard sales (around BrR1.4 billion) were
used in part to amortize the goodwill generated by Banco
Bandeirantes' acquisition (BrR0.8 billion) and reinforce
provisions (credit and fiscal). Even though Unibanco is less
leveraged than some peers on the issuance of subordinated debt,
this type of debt currently represents 21% of Tier I capital,
and reinforces the BIS ratio of 2.8%. Tax credits amount to
BrR2.8 billion and are expected to be realized by 2017 (the
major part to be realized between 2005 and 2007).

Primary Credit Analyst: Tamara Berenholc, Sao Paulo
(55) 11-5501-8950; tamara_berenholc@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo
(55) 11-5501-8945; milena_zaniboni@standardandpoors.com



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

ELECTROANDINA: Braces for Possible Energy Shortage
--------------------------------------------------
Chile's mining companies may face energy shortages since
Argentina cut natural gas supplies, says Electroandina SA, the
largest energy producer in northern Chile.

According to a Bloomberg report, Electroandina is one of the
companies that invested in turbines fueled by Argentine natural
gas to feed growing copper production in northern Chile.
Argentina last year reduced its shipments of the fuel to Chile
to ease a shortage at home.

According to Lode Verdeyen, chief executive at Electroandina,
companies that use natural gas to run turbines may need to
ration electricity to miners in northern Chile as soon as next
year as energy demand rises.

State-owned Codelco, which is a shareholder of Electroandina and
the generator's biggest client, is studying how to prepare for
possible energy shortfalls, such as through purchasing turbines,
said Roberto Vial, a spokesman for Codelco.



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

EMCALI: Earmarks COP18.5 Bln to Line Aguablanca Canal
-----------------------------------------------------
Cali's multi-utility Emcali plans to spend COP18.5 billion this
year to line 4.2km of the Aguablanca secondary canal that will
optimize the hydraulic system and help prevent flooding.

Emcali's auditing manager Carlos Alfonso Potes suggested that
the Company might call for bids by mid-year.

The plan falls part of Emcali's COP270-billion (US$116mn)
investment for this year. In April 2002, Colombia's public
services regulator Superservicios intervened in Emcali with the
aim of putting the utility back on a solid financial footing.


EMCALI: Moves to Improve Client Collection
------------------------------------------
Emcali will to implement a payments plan that could benefit more
than 125,000 late payers, Business News Americas reports, citing
regulator head Evamaria Uribe.

"We have a company that has to improve its client collection
indicators and it is necessary to begin a payment agreement
program with late payers," said Uribe.

The program followed petitions from representatives of the
125,000 late payers during a city council meeting.

Emcali provides public services, including waterworks,
telecommunications and electric power.



=================
G U A T E M A L A
=================

TECO ENERGY: Fitch Rates $200M Notes 'BB+'; Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to TECO Energy, Inc.'s
new $200 million issue of 6.75% unsecured notes due May 1, 2015.
The notes rank equally with TECO's existing senior unsecured
debt. The net proceeds of this offering, together with cash on
hand, is expected to be used to redeem or repurchase in full the
$380 million of 10.5% notes due 2007. The Rating Outlook of TECO
Energy, Inc. is Stable.

TECO is a holding company the owns electric and gas utilities in
Florida as well as coal, barge, Guatemalan power and other small
operations. Together, the two regulated utilities are expected
to provide approximately 80% of income in 2005. Tampa Electric
serves over 625,000 electric customers in West Central Florida
and Peoples Gas System serves over 310,000 gas customers
throughout Florida.

CONTACT: Robert Hornick +1-212-908-0523, New York

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York



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

DYOLL GROUP: Court to Hear Petition for Full Liquidation June 1
---------------------------------------------------------------
The Jamaican Grand Court will hear a petition to move Dyoll from
provisional liquidation to full liquidation on June 1, says Ken
Krys, one of two joint provisional liquidators appointed in the
Cayman Islands.

The Cayman Net News relates that the Grand Court placed Dyoll
into provisional liquidation and appointed Krys along with
Christopher Stride as joint provisional liquidators for Dyoll in
the Cayman Islands on April 11.

The court appointed joint provisional liquidators to protect and
preserve Dyoll's assets for the benefit of creditors and
policyholders.

Jamaica Financial Services Commission applied to the Grand Court
to revoke their appointment, claiming that Cayman had no
jurisdiction to make the order. However, the application was
dismissed on 10 May, finding that the court did indeed have
jurisdiction.

Provisional liquidation is a temporary measure to prevent Dyoll
assets from being distributed prior to official liquidation.
Subsequently, all policies were terminated.

Reports estimate Dyoll property and motor claims from Hurricane
Ivan exceed the reinsurance amount by as much as US$100 million.
The appointment of joint provisional liquidators and suspension
of policies reaffirm fears that policyholders will be left
holding unpaid bills to their cars and properties.



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

AXTEL: Reports 24% Increase in Income in 1Q05 Vs. 1Q04
------------------------------------------------------
AXTEL, S.A. de C.V., a Mexican telecommunications company,
reported on its Web site that income for the 1Q05 reached
MXN4.10 billion, a 24% increase compared to the figure in 1Q04.

Its operating profit rose 43%, to MXN105.3 million in 1Q05 from
MXN73.8 million in 1Q04.

AXTEL's cash flow (EBITDA) had an increase of 17%, to MXN367.6
million in 2005 from MXN314.8 million in 2004.

AXTEL ended the 1Q05 with 490,000 lines in service, 33% more
than the lines reported in the first quarter of 2004.

"The financial results are very positive and reflect the
financial and operating right choices that we have made as a
company. We are aware of the fact that our remaining in this
path towards the consolidation of our leadership will depend, to
a great extent, on our ability to continue to offer solutions
that meet our clients' needs and exceed their expectations,"
Patricio Jimenez Barrera, AXTEL Finance, Administration, and
Human Resources Director, said.

AXTEL is a Mexican telecommunications Company that provides
local telephone services, national and international long
distance services, data, Internet, virtual private networks, and
value added services.

AXTEL has provided Mexico with a basic telecommunications
infrastructure through an intelligent network that offers wide
coverage to all markets. At present, it is operating in Mexico
City, Monterrey, Guadalajara, Puebla, Leon, Toluca, Queretaro,
San Luis Potosi, Aguascalientes, Saltillo, Ciudad Juarez, and
Tijuana.

AXTEL has brought to the market various access technologies that
include fixed wireless telephony, point-to-point radio links,
point-to-multipoint radio links, and fiber optics, all of which
are offered to match the communication solutions that its
customers require.

59.5% of AXTEL capital is Mexican. The remaining 40.5% belongs
to foreign investors, among which are, mainly, AIG-GE Capital
Latin American Infrastructure Fund (LAIF); AIG Latin American
Equity Partners; Blackstone Group; American International
Underwriters Overseas Ltd., and Soros Group.

CONTACT: Corporativo AXTEL
         Blvd. Diaz Ordaz km 3.33
         Zona Industrial
         San Pedro Garza Garc­a, N.L
         CP 66215
         Mexico
         Web site: http://eng.axtel.com.mx/


AXTEL: Signs Deal With Cablemas to Provide Combined Services
------------------------------------------------------------
AXTEL, S.A. de C.V., a Mexican telecommunications company, and
Cablemas S.A. de C.V., a cable television and high-speed
Internet access service company, announced the execution of an
agreement whereby both companies will offer combined telephony
and video and data services, including high-speed Internet
access.

The agreement was signed by Javier Alejandro Alvarez Figueroa,
Chairman of the Board of Directors of Cablemas, and by Tomas
Milmo Santos, AXTEL CEO and Chairman of the Board of Directors.

Officers of both companies indicated that this agreement will
enable them to provide three technologically convergent
services, namely, fixed telephony, high-speed Internet, and
cable TV, known as the "triple-play package."

They pointed out that the convergence of these services would be
made possible through the leading edge technology called Voice
over Internet Protocol (VoIP), which has been designed to
operate on wide-band network infrastructure to gain access to
last-mile customers in both the residential and the business
sectors.

AXTEL and Cablemas will soon start marketing together their
voice, video, data transmission, and Internet services at
competitive prices. Both companies are planning on taking their
agreement to several cities in the Mexican Republic.

Both companies also said that this agreement is a significant
step in the formation of competition blocks in the
telecommunications sector in Mexico. These blocks will
contribute to enhance the quality and availability of
telecommunication services for society.

At present AXTEL has installed half a million lines in homes and
businesses in 12 cities in the country, while Cablemas has half
a million subscribes in 45 cities.

Javier Alejandro Alvarez Figueroa said: "The Cablemas - AXTEL
agreement starts a new era of telephone, video, and data
services provided to homes, micro-companies, and corporations in
Mexico in one single package at competitive prices and with the
highest service levels. We have chosen AXTEL among all telephone
carriers as our partner in this project because of the
importance of their background and professional level."

In addition, Tomas Milmo Santos stated: "We are very satisfied
with our execution of an agreement of such magnitude with
Cablemas, whose infrastructure, operation, and presence in the
market are excellent; those aspects, combined with our position,
will enable us to lay the foundations for an even more
aggressive mutual growth. Our vision is to strengthen our
portfolio constantly through the integration of the best
technological and commercial offers of telecommunications
services in Mexico".

Cablemas is a Mexican company that provides restricted
television, data transmission, and Internet services through its
own infrastructure, a leader in the cable TV market in the 45
cities of the Mexican Republic where it operates, such as
Merida, Cancun, the Mayan Riviera, Tijuana, Juarez, Chihuahua,
Cuernavaca, Acapulco, Chilpancingo, and Oaxaca among others.

Cablemas provides a wide array of services through cable
television, as well as wide-band access to Internet without the
need of getting your telephone lines busy.

Most of Cablemas capital is Mexican and is complemented with
foreign capital. It is funded mainly by Olmeca Investments B.V.
(combining investments by AIG-GE and Edison Capital, among
others) as well as Citicorp International Finance Corporation.


DIRECTV GROUP: Successfully Launches Directv 8 Satellite
--------------------------------------------------------
DIRECTV 8, a high-power direct broadcast satellite (DBS) built
for The DIRECTV Group, Inc., El Segundo, Calif. by Space
Systems/Loral (SS/L), was successfully launched Sunday at 10:59
am PDT. The satellite was sent into space from the Baikonur
Cosmodrome in Kazakhstan aboard a Proton M/Breeze M launch
vehicle provided by International Launch Services (ILS).

"Loral is proud to provide its fourth DIRECTV satellite designed
to deliver expanded services to DIRECTV's growing customer
base," said Bernard L. Schwartz, chairman and CEO, Loral Space &
Communications. "SS/L's unique ability to offer the most
advanced and reliable satellites, using innovative technologies,
has won the confidence of operators like DIRECTV. This state-of-
the-art satellite was completed a full two months ahead of
schedule, an accomplishment rarely seen in the satellite
industry, and we look forward to continuing our strong
relationship with DIRECTV as we prepare to deliver DIRECTV 9S
later this year for launch in 2006."

From its orbital slot at 101 degrees West longitude, the hybrid
Ku/Ka-band DIRECTV 8 satellite is designed to maintain high
quality, high-power DBS service to existing DIRECTV customers.
The satellite will provide selectable medium- and high-power Ku-
band broadcast services to the U.S. on up to 16 high-power
transponders, optimized to support the current and next
generation higher coding rate services that DIRECTV provides.

The Ka-band payload will use the full 1,000 MHz of Ka-band
communications bandwidth available to link DIRECTV facilities as
part of DIRECTV's dramatic infrastructure development for the
upcoming launch of local digital and high-definition services in
the Ka-band.

DIRECTV 8 is designed to provide over 8,200 watts of DC power at
the end of its 12-year mission life. The satellite is based on
SS/L's space-proven 1300 platform, which has an excellent record
of reliable operation. Its high efficiency solar arrays and
lightweight batteries are designed to provide uninterrupted
electrical power. In all, SS/L satellites have amassed nearly
1,200 years of reliable on-orbit service.

DIRECTV is the nation's leading and fastest-growing digital
multichannel television service provider with more than 14.4
million customers. DIRECTV and the Cyclone Design logo are
registered trademarks of DIRECTV, Inc.  DIRECTV (NYSE: DTV) is a
world-leading provider of digital multichannel television
entertainment services and is approximately 34 percent owned by
News Corporation. For more information, visit www.directv.com.

Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTCBB: LRLSQ), is a premier designer,
manufacturer, and integrator of powerful satellites and
satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the company has
an international base of commercial and governmental customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L satellites have
amassed more than 1,100 years of reliable on-orbit service. SS/L
is ISO 9001:2000 certified. For more information, visit
www.ssloral.com.

Loral Space & Communications is a satellite communications
company. In addition to Space Systems/Loral, through its Skynet
subsidiary, Loral owns and operates a fleet of
telecommunications satellites used to broadcast video
entertainment programming, and for broadband data transmission,
Internet services and other value-added communications services.



===========
P A N A M A
===========

WILLBROS GROUP: Brodsky & Smith, LLC Files Class Action Lawsuit
---------------------------------------------------------------
Law offices of Brodsky & Smith, LLC announced Friday that a
securities class action lawsuit has been filed on behalf of
shareholders who purchased the common stock and other securities
of Willbros Group, Inc. ("Willbros" or the "Company") (NYSE:WG)
between May 6, 2002 and May 16, 2005 inclusive. The action is
pending in the United States District Court for the Southern
District of Texas, Houston Division, against defendants
Willbros, Michael F. Curran, Warren L. Williams, Larry J. Bump
and James K. Tillery.

The Complaint alleges that defendants violated federal
securities laws by issuing a series of material
misrepresentations to the market during the Class Period,
thereby artificially inflating the price of WG securities.

If you want to discuss your legal rights, you may e-mail or call
the law office of Brodsky & Smith, LLC who will, without
obligation or cost to you, attempt to answer your questions. You
may contact Marc L. Ackerman, Esquire or Evan J. Smith, Esquire
at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd,
PA 19004, by e-mail at clients@brodsky-smith.com, or by calling
toll free 877-LEGAL-90. Please visit our website at
www.brodsky-smith.com  for additional information.

More information on this and other class actions can be found on
the Class Action Newsline at www.primezone.com/ca

CONTACT:  Brodsky & Smith, LLC
          877-LEGAL-90
          clients@brodsky-smith.com



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

GALICIA URUGUAY: Extends Deadline for Exchange Offer
----------------------------------------------------
Banco Galicia Uruguay SA, a unit of Argentina's Banco de Galicia
y Buenos Aires SA, postponed from May 20 to May 27 the deadline
for a bond swap for holders of its bonds and certificates of
deposit, reports Dow Jones Newswires.

Galicia Uruguay launched the exchange on April 15, offering
US$14 in cash and US$86 in Argentine government Boden 2012 bonds
for every US$100 in the bank's bonds or certificates of deposit.
The bank will accept up to US$200 million in old securities for
the swap.

It is not known whether the bank's scheduled settlement date of
June 15 has changed.

Uruguay's central bank closed Banco Galicia Uruguay in February
2002 as Argentina's financial crisis spilled over into the
neighboring country. At that time, about US$1.2 billion in
deposits were frozen.

Banco Galicia is the main banking unit of Argentine financial
company Grupo Financiero Galicia (GGAL). The local bank
completed its own $1.3 billion debt restructuring one year ago.

CONTACT:  Banco de Galicia Y Buenos Aires
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman

          Grupo Financiero Galicia SA
          2nd Floor
          No 456 Tte Gral Juan D Peron
          Buenos Aires
          Argentina 1038
          Phone: +54 11 4343 7528/9475
          Home Page: http://www.gfgsa.com
          Contact: Atty. Abel Ayerza, Chairman



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

PDVSA: Unveils $52.8M Plan to Raise El Palito Fuel Production
-------------------------------------------------------------
State-owned oil company Petroleos de Venezuela SA (PDVSA) said
it will invest US$52.8 million to boost fuel production at its
El Palito refinery.

El Palito currently has capacity to refine 130,000 barrels a day
of crude and produce 53,000 liters of gasoline a day (L/d),
which should increased to 73,000L/d with the cracker upgrade,
PDVSA said in a statement. The project will be completed by
early 2009.

In addition to the cracker upgrade, PDVSA plans to incorporate a
delayed coking unit to increase gasoline and diesel output at El
Palito as part of a US$1.27 billion overhaul.

Early this year, PDVSA unveiled an ambitious plan to increase
its existing refining and deep conversion capability by 2010. It
will upgrade its three existing refineries in Venezuela - CRP,
El Palito and Puerto La Cruz - at a cost of more than US$2.27
billion and build three new refineries, the largest of which
will cost about US$4 billion.



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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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